Tag: Stock pick

DroneShield Ltd (ASX: DRO) shares have given investors a wild ride over the past year.

After reaching $6.71 in October, the counter-drone technology share is now trading around $2.17.

I think that reset has created a more appealing opportunity. Here are three reasons I would buy.

The valuation has become easier to justify

DroneShield remains a growth share, so investors should expect to pay more than they would for a mature industrial or defensive business.

According to CommSec consensus estimates, the company is expected to generate earnings per share of 2.6 cents in FY26, 4.3 cents in FY27, and 7.4 cents in FY28.

That puts the shares on price-to-earnings ratios of approximately 83 times FY26 earnings, 50 times FY27 earnings, and 29 times FY28 earnings.

The early multiples are high, but they fall quickly if DroneShield delivers the expected earnings growth. An FY28 multiple of around 29 times does not look excessive to me for a company whose earnings could almost triple between FY26 and FY28.

The share price could still fall if contract wins or earnings arrive more slowly than expected. Even so, investors are being asked to pay far less for the long-term opportunity than they were near the 52-week high.

Counter-drone demand could keep growing

DroneShield develops technology that helps military, government, law enforcement, and critical infrastructure customers detect, track, and respond to unwanted drones.

I think the need for those systems is becoming easier to understand.

Drones are now cheaper, more capable, and more widely available. They can be used for surveillance, smuggling, disruption, and attacks, creating security challenges across battlefields, airports, prisons, energy facilities, borders, and major public events.

DroneShield has spent years focusing on this market and offers portable, vehicle-mounted, and fixed-site systems. That specialist position could help it capture a growing share of customer spending as counter-drone protection becomes a more established part of defence and security budgets.

The company still competes with much larger defence groups, while government procurement can move slowly and produce uneven revenue. I would accept those uncertainties because I think the market itself has substantial room to expand.

Software could strengthen the business

Hardware currently generates most of DroneShield’s revenue, and I expect equipment sales to remain central to its growth.

However, the company also has a major opportunity to earn more from software.

Counter-drone equipment needs to keep recognising new drone models, frequencies, and tactics. Customers may therefore require software updates, threat libraries, support, and ongoing improvements after the original system has been delivered.

That can extend the relationship beyond a single hardware purchase.

As the installed base grows, DroneShield could have more opportunities to sell software and services to existing customers. A larger recurring revenue contribution could make earnings more dependable and increase the value of each customer relationship.

I think this part of the story deserves more attention because it gives the company another way to grow alongside rising hardware demand.

Foolish takeaway

DroneShield still carries more uncertainty than an established ASX blue chip share, and I would keep the position measured.

The company needs to convert market demand into contracts, deliver equipment on time, expand its operations carefully, and meet ambitious earnings expectations.

At around $2.17, I think the potential reward has become more attractive. The counter-drone market is expanding, DroneShield has built a strong specialist position, and growing software revenue could improve the business over time.

Those three factors make DroneShield shares a buy for me today.

The post 3 reasons to buy DroneShield shares now appeared first on The Motley Fool Australia.

More reading

• Down 41%: Can DroneShield shares bounce back, or is the rally finally over?
• 3 ASX 200 shares down over 30% that I’d buy
• These are the 10 most shorted ASX shares
• Down 65%: Are DroneShield shares a buy, hold, or sell?
• These are the 10 most shorted ASX shares

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors looking for ASX blue-chip shares are probably aiming for businesses that can provide stability, reliable earnings and a good dividend yield.

Share prices can go down and payouts are not guaranteed, but I believe some businesses are capable of being more resilient and consistent.

I think the two names below are leaders in their industry at what they do, offering pleasing passive income.

Scentre Group (ASX: SCG)

This business is the owner of large shopping centres – it owns 42 Westfield locations across Australia and New Zealand, which includes more than 12,000 outlets.

One of the main reasons why I think it’s such a stable investment is that rental income is contracted and reliable – it had a portfolio occupancy of 99.8% at 31 March 2026, showing it’s maximising its rental potential.

It has evolved from just a retail centre to being a core destination for other experiences uses such as entertainment, dining and so on. I don’t think it’s as vulnerable to e-commerce adoption as other retail real estate investment trusts (REITs).

The business continues to report growth across a number of rental metrics.

In the three months to 31 March 2026, total business partner (tenant) sales across the portfolio were $7 billion (up 5%), with specialty sales growth of 5.3%.

It also noted that average specialty rent escalations were 5.3% in the three months to 31 March 2026. This is good organic rental growth.

The ASX blue-chip share completed 636 leasing deals, achieving average specialty releasing spreads of 3.3%. In other words, the new rental contracts are (on average) 3.3% higher than the old ones. That’s also pleasing organic growth for the business.

Another way that Scentre can increase its rental potential is by investing in (re)developments at its locations. It’s currently progressing a $240 million redevelopment at Westfield Bondi as a “world-leading lifestyle, entertainment and dining destination”.

According to the forecast on Commsec, the business is projected to grow its annual payout to 19.1 cents per security in FY27. That translates into a forward distribution yield of 4.9%.

Telstra Group Ltd (ASX: TLS)

Another ASX blue-chip share I want to highlight is Telstra, the country’s largest telco business.

Its scale means it’s able to generate high profit margins and invest the most in its network, compared to other industries. Hopefully it continues investing in its resilience and reliability.

The company’s market position and network coverage mean it’s able to attract a lot of customers. Australia’s ongoing digitalisation is a tailwind for demand for Telstra’s services, with an increasing number of devices needing a connection.

Telstra’s revenue and underlying earnings have been steadily growing in the last few years, giving the company the financial room to pay a rising dividend. In its latest result, it grew its interim dividend per share by 10.5% to 10.5 cents.

The projection on Commsec suggests the ASX blue-chip share could pay an annual dividend per share of 21.5 cents in FY27. That could translate into a grossed-up dividend yield of 6.1%, including franking credits.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• How I would turn $200,000 into an ASX retirement income portfolio
• CSL vs Telstra shares, which should I buy?
• How to build an ASX dividend portfolio that keeps paying you for decades
• How much is needed in superannuation to target a $100,000 annual passive income?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With lots of ASX shares to choose from on the Australian market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you. 

Three top ASX shares that leading brokers have named as buys this week are outlined below. Let’s see why they are bullish on them.

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $39.25 price target on this banking giant’s shares. The broker has been busy looking at the impact that artificial intelligence (AI) could have on the banking sector. The good news is that Citi believes ANZ could benefit from agentic AI. In fact, it estimates that the big four banks could see their profits increase by up to 5%. In light of this, the broker remains positive on ANZ and continues to see value in its shares at current levels. The ANZ share price last traded at $35.70.

Hub24 Ltd (ASX: HUB)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $110.00 price target on this investment platform provider’s shares. Bell Potter was pleased with Hub24’s quarterly update, noting that it delivered a good result. It highlights that total net inflows were comparable to the prior corresponding period and no one-off large outflows were revealed. In addition, Bell Potter believes that the outlook commentary reinforces the structural growth story and the result leaves FY 2027 targets intact. The Hub24 share price was fetching $81.35 at yesterday’s close.

Qantas Airways Ltd (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating on this airline operator’s shares with an improved price target of $12.50. According to the note, Morgan Stanley believes that Qantas’ Project Sunrise could be the catalyst for a structural re-rating of its shares. It highlights that the project, its fleet renewal, and broader network initiatives should improve earnings resilience, support stronger international margins, and narrow Qantas’ valuation discount to global peers. As a result, the broker thinks that now could be a good time to snap up shares. The Qantas share price last traded at $10.14.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why I’d buy Qantas, Woolworths, and ResMed shares
• 5 things to watch on the ASX 200 on Wednesday
• How much do I need in my superannuation to earn $7k per month in passive income?
• This ASX financial services company has just reported a 20% jump in funds under management
• HUB24 earnings: Record $18.9bn net inflows lift FUA

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There many hundreds of ASX shares that investors can buy, but not many are backed by multiple analysts with buy ratings.

I think it’s interesting when an expert calls a stock a buy, but it could be a compelling idea when there are numerous buy ratings.

Based on the positivity of analysts, below could be two of the best ideas to buy right now.

AMP Ltd (ASX: AMP)

AMP is a diversified business that offers superannuation, investments and banking services.

The company recently announced its profit expectations for the 2026 first half result. Underlying net profit after tax (NPAT) is expected to be in the range of between $170 million to $180 million.

It outlined a number of elements from that update. In its China partnerships, it’s expecting to see a stronger contribution with a 24% rise of profit to approximately $56 million.

AMP’s investment income impacts of $5 million have been “favourable” following interest rate increases, compared to the first half of 2025.

It also highlighted a $5 million favourable impact of the North guarantee in the platforms.  

The business also noted it was recognising approximately $13 million of a carried interest relating to a partial sale of remaining assets within a legacy fund that was retained from the sale of AMP Capital’s international infrastructure equity business.

According to CMC Invest, there have been seven ratings within the last three months with, four buys and three holds.

JB Hi-Fi Ltd (ASX: JBH)

Another ASX share that is highly backed by analysts right now is electronics and appliance business JB Hi-Fi.

It now operates four different businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S. The company has excelled at having very productive sales floors, efficient costs and offering customers competitive prices.

Given how Australia has become increasingly digital, JB Hi-Fi operates in a compelling segment of the retail market and has a strong market presence.

In addition, the business has regularly increased its annual dividend for investors – the payout has increased almost every year since 2013. That’s a great track record for investors focused on passive income.

In terms of analyst backing, according to CMC Invest, there have been 10 ratings on the business in the last three months, with five buy ratings, four buy ratings and one sell rating. Based on the projection on CMC Invest, the business is forecast to pay a grossed-up dividend yield of 6.3% including franking credits and 4.4% excluding franking credits.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

More reading

• AMP shares have surged 80% since March. What’s next?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• AMP shares rebound 64%: Buy, sell or hold?
• How much do I need in my superannuation to earn an annual $60,000 passive income?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Wesfarmers Ltd (ASX: WES) shares for passive income makes a lot of sense given its dividend track record.

The company owns a number of leading Australian businesses including Kmart, Bunnings, Officeworks, Priceline and WesCEF (chemicals, energy and fertilisers).

Wesfarmers has been listed for decades and it has delivered great dividend growth over the long-term. On the company’s own website, the business says it wants to grow dividends:

With a focus on generating strong cash flows and maintaining balance sheet strength, the group aims to deliver satisfactory returns to shareholders through improving returns on invested capital. As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow.

Let’s look at what the payout is projected to deliver and what it would take to make $10,000 of dividends.

Dividend projection

Considering we’re already in the 2027 financial year, I think it’s worthwhile to look at what could happen with the company’s annual dividend in FY27.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share in FY27 of $2.33 – that would represent year-over-year growth of around 8% compared to the estimate for the annual payout of $2.16 in FY26.

At the time of writing, the potential payout for FY27 translates into a dividend yield of 2.5% excluding franking credits and 3.6% including franking credits.

That’s not the biggest dividend yield out there, but the business continues to retain some of its earnings to reinvest for growth, and the company is priced for its rising earnings. The yield could be noticeably higher by the end of the decade if it continues to grow its annual passive income.

Wesfarmers has increased its annual dividend each year since 2020, after spinning off Coles Group Ltd (ASX: COL) as a separate business. I think the quality of Wesfarmers’ earnings from Kmart and Bunnings will help it continue growing earnings in the next few years.

How many Wesfarmers shares are needed for $10,000 of passive income?

Receiving $10,000 of dividends from a single business would be a substantial amount, so I’d suggest investors should make sure their portfolio is diversified and not mostly reliant on Wesfarmers for passive income.

Based on the projection for the 2027 financial year, an investor would need 4,292 Wesfarmers shares excluding the franking credits. If we include the franking credits as part of the overall goal, an investor would need 3,005 Wesfarmers shares.

At the time of writing, the Wesfarmers share price has soared 30% since mid-May. While this is great for existing shareholders, it’s a less compelling buy for new shareholders. There are other ASX shares that could be better buys.

The post How many Wesfarmers shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• How I would turn $200,000 into an ASX retirement income portfolio
• Up 29% since May, can Wesfarmers shares keep surging higher?
• How to build an ASX dividend portfolio that keeps paying you for decades
• Buy, hold, sell: SKS Technologies, Yancoal, Wesfarmers shares
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are seeking big returns, then it could be worth checking out the ASX shares in this article.

That’s because the team at Bell Potter believes these shares could rise at least 90% over the next 12 months.

Here’s what the broker is recommending to clients:

Falcon Metals Ltd (ASX: FAL)

Bell Potter sees significant value in this gold explorer’s shares. In response to its latest drilling results, the broker has retained its speculative buy rating and $1.10 price target on the ASX share.

Based on its current share price of 36.5 cents, this suggests that upside of 201% is possible between now and this time next year.

Its analysts are very optimistic on Falcon Metals’ Blue Moon project in Victoria. They commented:

Blue Moon continues to shape as a potentially district-scale orogenic gold system, with these results defining a fifth mineralised zone with the system remaining open at depth and along strike. Each successive step-out has validated the geological model generated by FAL’s exploration team, which continues to identify additional stacked reefs where predicted, building our confidence in both the targeting and the scale on offer. 

Magnolia Zone does not form part of our Blue Moon NDS, offering valuation upside once the zone becomes derisked through further exploration. We maintain our Valuation of $1.10 and Speculative Buy recommendation.

Fenix Resources Ltd (ASX: FEX)

This iron ore miner’s shares could be deeply undervalued according to Bell Potter. In response to its fourth-quarter update, the broker has retained its buy rating on the ASX share with a trimmed price target of 54 cents.

Based on its current share price of 28 cents, this implies potential upside of approximately 93% for investors.

Bell Potter was pleased with its performance in the fourth quarter and is positive on the company’s production growth outlook. Commenting on its outlook, the broker said:

FEX’s FY27 guidance points to sales of 4.7-5.3Mt, up 14% YoY at the midpoint. Notably, C1 cash cost guidance is consistent with FY26 at A$70-80/t, demonstrating strong cost discipline during a highly inflationary environment.

FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook. FEX holds the largest storage position at the strategic and fast-growing Geraldton Port.

The post Bell Potter says these ASX shares could rise 90% to 200% appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares highly recommended to buy: Experts
• How many Wesfarmers shares do I need to buy for $10,000 of passive income?
• Why I’d buy Qantas, Woolworths, and ResMed shares
• 5 things to watch on the ASX 200 on Wednesday
• BHP shares have tripled in the past 10 years. Could history repeat itself over the next decade?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN), Woolworths Group Ltd (ASX: WOW), and ResMed Inc. (ASX: RMD) shares are popular with Aussie investors.

It isn’t hard to see why. All three have strong market positions and well-known brands.

But could they be good investments today? I think they could. Here is why I would buy them.

Qantas shares

Airlines can make even confident investors nervous. Fuel prices, competition, economic conditions, weather, and operational problems can quickly disrupt forecasts. I would never approach Qantas shares expecting a perfectly smooth journey.

But the company still has advantages that would be extremely difficult for a new competitor to reproduce.

Its domestic network, airport slots, Qantas brand, Jetstar operations, and frequent flyer ecosystem have been built over decades. The loyalty division is especially appealing because it earns money through credit cards, retail partners, points, and travel rewards without depending entirely on ticket sales.

Fleet renewal could also reshape the business. Newer aircraft can improve fuel efficiency, reduce maintenance requirements, open new routes, and provide a better passenger experience. The investment bill will be substantial, but I think Qantas has a genuine opportunity to emerge with a more efficient and flexible fleet.

The sector will remain volatile, so I would keep my position sensible. Even so, I think the airline’s competitive position and range of earnings streams make Qantas shares worth buying.

Woolworths shares

Woolworths appeals to me for a completely different reason.

Groceries sit close to the centre of household spending. Customers may change brands, hunt harder for value, or reduce discretionary purchases, but they still need food and everyday essentials.

That dependable demand gives Woolworths a strong base.

The company also has more to work with than a large store network. Online shopping, loyalty data, automated distribution, delivery services, and personalised offers can all shape how Woolworths competes over the next decade.

I particularly like the potential of Everyday Rewards. A deeper understanding of customer behaviour can help Woolworths improve promotions, stock the right products, and build stronger relationships with shoppers.

Supermarket retail is intensely competitive, and the company must keep earning customer trust on price, availability, and service. Margins are also relatively thin, which means poor execution can have an outsized effect on profits. But I think it has a strong management team with the capabilities to deliver.

For me, Woolworths remains a leading Australian retailer with the scale and resources to improve, making the shares an attractive long-term buy.

ResMed shares

ResMed gives investors exposure to a healthcare need that remains far from fully addressed.

Millions of people live with sleep apnoea and other breathing disorders, while many remain undiagnosed or untreated. Better awareness, wider testing, and growing acceptance of home-based care could help ResMed reach many more patients.

Its relationship with customers can also continue well beyond the original device sale.

Patients need masks, replacement parts, monitoring, support, and software that helps them remain engaged with treatment. That recurring demand can make each new patient increasingly valuable over time.

Competition and changing treatment options deserve attention. However, ResMed has spent years building its brand, distribution, connected devices, and expertise in sleep health.

I think those strengths can support continued growth even as the treatment market evolves.

Foolish takeaway

I would buy Qantas, Woolworths, and ResMed because their long-term opportunities are supported by positions that have taken years to establish.

Each company still has work ahead of it, but with patient ownership and sensible position sizes, I think all three ASX shares could become more valuable over the years ahead.

The post Why I’d buy Qantas, Woolworths, and ResMed shares appeared first on The Motley Fool Australia.

More reading

• How to build an ASX dividend portfolio that keeps paying you for decades
• Here’s the dividend forecast out to 2028 for Woolworths shares
• Experts say these ASX 200 shares have great potential
• Top brokers name 3 ASX shares to buy next week
• Coles vs. Woolworths. Which ASX consumer staples stock is the best buy?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought back from a poor start to end the day flat a fraction higher at 8,793.3 points.

Will the market be able to push on from this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set for a good session on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% higher. In the United States, the Dow Jones rose 0.75%, the S&P 500 climbed 0.9%, and the Nasdaq stormed 1.3% higher.

Oil prices rise again

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another good session on Wednesday after oil prices charged higher again overnight. According to Bloomberg, the WTI crude oil price is up 2.1% to US$84.99 a barrel and the Brent crude oil price is up 2.6% to US$91.51 a barrel. Traders bid oil prices to five-week highs following reports of more US-Iran attacks.

Buy Hub24 shares 

Bell Potter sees lots of value in Hub24 Ltd (ASX: HUB) shares following the release of its quarterly update. This morning, the broker retained its buy rating and $110.00 price target on the investment platform provider’s shares. This implies potential upside of 35% for investors. It commented: “Our Buy recommendation is unchanged. Class is improving, with superannuation net inflows growing as a share, and boosting the result. The addition of retirement income streams (TAL) should support this trend and the result leaves FY27 target parts intact.”

Gold price rebounds

ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded. According to CNBC, the gold futures price is up 1.8% to US$4,088.5 an ounce. The precious metal climbed amid hopes that there could be a de-escalation in Middle East tensions.

Quarterly updates

There are a number of ASX 200 shares that are scheduled to release quarterly updates on Wednesday. This includes gold miner Westgold Resources, rare earths producer Lynas Rare Earths Ltd (ASX: LYC), and uranium producer Paladin Energy Ltd (ASX: PDN).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• BHP shares have tripled in the past 10 years. Could history repeat itself over the next decade?
• Here are the top 10 ASX 200 shares today
• This ASX financial services company has just reported a 20% jump in funds under management
• HUB24 earnings: Record $18.9bn net inflows lift FUA
• Contact Energy June 2026 earnings: Sales rise, renewables progress

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have created significant wealth for long-term investors. Over the past decade, the mining giant’s share price has surged almost 235%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which gained around 60% over the same period.

But could Australia’s largest mining company repeat that performance and triple in value again by 2036? While predicting a decade of share price returns is impossible, BHP has several powerful long-term trends working in its favour.

Here are three reasons the mining giant could potentially deliver another market-beating run.

Demand for copper could drive the next growth phase

BHP has historically been known as a major iron ore producer, with its Western Australian operations generating billions of dollars in profits during periods of strong steel demand.

However, the future growth story of BHP shares is increasingly linked to copper. Copper is a critical commodity for electrification, renewable energy, electric vehicles, artificial intelligence infrastructure, and global power networks. As economies transition towards lower-carbon energy systems, demand for copper is expected to rise significantly.

The mining giant has been positioning itself for this trend, including its acquisition of OZ Minerals in 2023, which strengthened its exposure to copper and other future-facing commodities.

If copper prices remain elevated and BHP successfully expands production, the commodity could become a major earnings driver over the next decade.

The asset base could keep generating cash

One of BHP’s biggest advantages is the quality and scale of its global operations. The company owns some of the world’s largest and lowest-cost mining assets, including its Western Australian iron ore operations, Olympic Dam copper-gold project, and Jansen potash development in Canada.

Low-cost producers typically have a major advantage through commodity cycles because they can remain profitable when weaker competitors struggle.

That financial strength has allowed BHP shares to consistently return billions of dollars to shareholders through dividends and share buybacks.

If commodity demand remains healthy, BHP’s ability to generate strong free cash flow could continue supporting shareholder returns well into the future.

Long-term resource demand could provide a tailwind

The world is becoming increasingly resource-intensive. Population growth, urbanisation, infrastructure investment, artificial intelligence, and energy security are all expected to support demand for commodities.

Even as the global economy changes, the need for raw materials remains essential. Data centres require enormous amounts of electricity and copper wiring, while renewable energy projects require significant quantities of metals. BHP’s scale means it is positioned to benefit from these long-term structural trends.

Of course, there are risks. Commodity prices are cyclical, China remains a major source of demand uncertainty, and large mining projects require significant capital investment.

A threefold return over 10 years would also require strong execution from management and favourable commodity conditions.

However, BHP has already demonstrated its ability to create substantial shareholder wealth over long periods. If copper demand accelerates, its growth projects deliver, and commodity markets remain supportive, another decade of strong returns may not be out of the question.

The post BHP shares have tripled in the past 10 years. Could history repeat itself over the next decade? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• HUB24 earnings: Record $18.9bn net inflows lift FUA
• Contact Energy June 2026 earnings: Sales rise, renewables progress
• Telix Pharmaceuticals: Q2 2026 revenue jumps 21%

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords healthcare share Cogstate Ltd (ASX: CGS) has raced ahead of the All Ordinaries Index (ASX: XAO) over the past year.

In late trading on Tuesday, Cogstate shares were changing hands for $2.73 apiece. That sees the share price up 53.4% since market close on 21 June 2025, smashing the 0.7% 12-month gains posted by the benchmark index.

And according to Ellerston Capital Australian equities portfolio manager James Barker, the ASX All Ords healthcare share is well-positioned to deliver more outsized gains in the year ahead (courtesy of The Australian Financial Review).

Here’s why.

ASX All Ords healthcare share on the growth path

Commenting on Cogstate, a stock his fund owns, Barker said, “This is a relatively undiscovered business as most of its operations are in the US with large global pharma.”

As for what the company does, Barker explained:

The company has a digital cognitive assessment platform used in clinical trials for medicines targeting the central nervous system.

The business was historically focused on Alzheimer’s disease trials, but it has recently been expanding into other indications such as mood, sleep, psychiatry and rare diseases.

And Barker noted that the ASX All Ords healthcare share has been on the growth path.

“Last week [8 July] it gave an update that showed total contracts signed were up 116% on the prior year, with US$89 million (AU$127 million) of contracts sold for the year,” he said.

Summing up his bullish outlook on Cogstate shares, Barker concluded, “We see this as validation that the business is executing well; it’s profitable, generating cash and has a share buyback in place.”

What’s the latest from Cogstate?

Cogstate released its half-year results (H1 FY 2026) on 19 February.

Highlights for the six months to 31 December included a 12% year-on-year increase in revenue to $26.9 million. And earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.5 million were up 5% from H1 FY 2025.

On the bottom line, the ASX All Ords healthcare share reported a net profit after tax (NPAT) of $4.5 million, up 16% year on year.

As for the balance sheet, Cogstate held $34.1 million in cash as at 31 December.

“These results demonstrate Cogstate’s growing momentum and the increasing strength of our competitive position,” Cogstate CEO Brad O’Connor said on the day.

O’Connor added:

We’re seeing record levels of sales opportunities from an expanded customer base across more therapeutic indications, and those opportunities are converting into meaningful contract wins.

The post Up 53%, here’s why this ASX All Ords healthcare share is tipped for more outperformance appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.