Tag: Stock pick

If you have a high risk tolerance and want some exposure to the small side of the market, then read on.

That’s because Morgans has just put buy ratings on two small-cap ASX shares. Here’s what it is recommending to clients:

Many Peaks Minerals Ltd (ASX: MPK)

Morgans thinks this gold developer could be a small-cap ASX share to buy now.

Following the release of a stronger than expected mineral resource estimate (MRE) for the Ferke Gold Project, it has reaffirmed its speculative buy rating with an increased price target of $2.48 (from $1.92). The broker commented:

MPK delivered a maiden MRE of 26.7Mt at 1.54g/t Au for 1.32Moz at the Ferke Gold Project, a material beat vs our estimate of 1Moz at 1.1g/t Au. Importantly, 1.1Moz of the MRE sits within the Measured and Indicated category, forming the basis of our production scenario. We expect 80-90% of this to convert to reserve given the ideal geometry of the resource and its amenability to mining.

We see further upside as assumptions are refined (geotechnical inputs, process recoveries and additional drilling) as the project progresses toward PFS. We maintain our SPECULATIVE BUY recommendation and lift our price target to A$2.48ps (previously A$1.92ps).

SKS Technologies Group Ltd (ASX: SKS)

Another small-cap ASX share that is highly rated by Morgans is SKS Technologies. It designs, supplies and installs audio visual, electrical, and communication products and services.

The broker likes the company due to its exposure to the booming data centre (DC) market. It believes SKS is well-placed to deliver strong growth through to at least FY 2028.

In light of this, it has retained its accumulate rating on its shares with a revised price target of $6.70. Commenting on the small cap, Morgans said:

SKS’s recent contract expansion with its major customer has bolstered the group’s outlook, adding a further $80m of work, and broadening its pipeline of FY27 work in hand to $240m. DC sector demand remains robust, with various operators continuing to expand their capex/build activity over the coming years, and we continue to see a significant pipeline of DC build opportunity into FY27-28+.

We upgrade our forecasts by ~13+14% in FY27-28F, reflecting our expectations for SKS to continue building on strong forward levels of work in hand / BAU run-rate into FY27+. We retain our ACCUMULATE rating with a revised PT of $6.70.

The post Morgans gives its verdict on these small-cap ASX shares appeared first on The Motley Fool Australia.

More reading

• Up nearly 300% in a year, this ASX stock just hit another record high
• Morgans just placed buy ratings on these ASX materials stocks

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 recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NextDC Ltd (ASX: NXT) shares have been frozen all week. Shares closed last Friday trading for $14.12 each and have remained there through to market close on Tuesday.

But that’s going to change when the market opens on Wednesday.

As you may be aware, shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer entered a trading halt before market open on Monday.

Management requested the pause in trading prior to releasing the results of institutional equity raising.

That update should be out before the ASX opens this morning. Investors will then learn more details regarding how much capital NextDC is raising and how it plans to use the new funds.

Which brings us back to our headline question…

Should you buy NextDC shares today?

Last week, before NextDC shares entered a trading halt, Red Leaf Securities’ John Athanasiou released a bullish note on the ASX 200 tech stock (courtesy of The Bull).

“Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific,” he said.

Citing the first reason he’s optimistic on the company’s outlook, Athanasiou said, “Its network of certified facilities underpins critical digital infrastructure amid surging demand for cloud, artificial intelligence and high-performance computing.”

As for the second reason you might want to buy NextDC shares today, he added, “NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long-term growth.”

The company announced the hybrid securities deal on 7 April. NextDC CEO Craig Scroggie said the deal “represents another step toward NextDC delivering on a material step-change in the scale of our business”.

Rounding off with the third reason the stock looks well placed to outperform, Athanasiou concluded:

The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.

What else has been happening with the ASX 200 tech stock this week?

Although NextDC shares have been frozen since Friday, it’s been a busy week for the data centre company.

On Monday, the company released an operational update revealing strong growth metrics over the three months to 31 March.

Among the highlights likely to pique investor interest, NextDC a 60% increase in its contracted utilisation to 667 megawatts (MW). The company revealed that its forward order book had grown by 83% to 544MW.

And NextDC reaffirmed the its full year FY 2026 revenue and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to be in the range of $230 million to $240 million.

The post 3 reasons to buy NextDC shares today appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares to buy as sector rockets back: experts
• NextDC vs Wesfarmers shares: Which is a buy?
• Leading brokers name 3 ASX shares to buy today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• NextDC rally comes to a halt. Here’s what just dropped

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 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.

I believe some of the best investment opportunities tend to show up after a sell-off.

When quality companies fall a long way from their highs, the starting point changes. That is where I start paying closer attention.

Here are five oversold ASX shares I would be looking at before the end of April.

CSL Ltd (ASX: CSL)

CSL is down more than 50% from its highs, which is a big move for a biotech company of this quality.

The business itself still has strong foundations. CSL Behring remains a leader in plasma therapies, and demand for those treatments continues to build over time.

What has changed is the price. After such a large pullback, I think CSL shares are starting to look much more interesting for long-term investors. If the company can rebuild momentum, this could be one of those periods that looks like an opportunity in hindsight.

Breville Group Ltd (ASX: BRG)

Breville has pulled back around 20%, which has taken some pressure out of its valuation.

This is a business that has successfully expanded outside Australia, and that is still driving its growth today. Its products continue to resonate in key markets like the US, which supports that trend.

At a lower share price, I think the setup looks more balanced. It still has room to grow, but you are no longer paying the same premium as before.

Xero Ltd (ASX: XRO)

Xero has fallen more than 50% from its highs alongside the broader sell-off in software stocks due to artificial intelligence (AI) disruption concerns.

The long-term shift toward cloud-based accounting is still playing out, and Xero remains one of the key platforms in that space.

And while AI will always be a risk, I think those concerns may be overstated and Xero still has many years of growth ahead. And after such a sharp decline, I think the risk-reward looks more favourable than it has in a long time.

WiseTech Global Ltd (ASX: WTC)

WiseTech is down more than 60% from its peak, which is a significant reset.

Its CargoWise platform is already embedded in global logistics, which gives it a strong position in how goods move around the world.

At this level, I think the sell-off is worth paying attention to. This is still a business with a large runway, but it is now being priced very differently to where it was at its peak.

Catapult Sports Ltd (ASX: CAT)

Catapult has pulled back close to 60% from its highs despite continuing to deliver strong results.

The sports technology business has been shifting toward a subscription-based model, which should support more consistent revenue over time.

I think the interesting part here is how the company is evolving. As data becomes more important in sport, Catapult has a chance to deepen its role with teams rather than just expand its customer base.

At this much lower share price, I think it is one ASX share that could deliver strong returns if it continues to execute successfully.

Foolish takeaway

A big pullback does not guarantee a good investment, but it can change the starting point.

These ASX shares all have strong growth potential and are now trading well below their previous highs. That is why I think they are worth a closer look before the end of April.

The post 5 oversold ASX shares to buy before the end of April appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Why I don’t own Telstra shares (yet)
• 2 ASX tech shares to buy as sector rockets back: experts
• 2 ASX growth stocks to buy now and hold until 2036
• Why WiseTech shares could rise 70%

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a passive income stream from ASX dividend shares often means choosing individual companies and monitoring their payouts.

But if you’re not a fan of stock picking, don’t worry. There is a simpler approach. Exchange traded funds (ETFs) allow investors to access a diversified group of income-generating shares through a single investment.

Two ASX ETFs stand out for those focused on dividend income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to consider is the Vanguard Australian Shares High Yield ETF.

It provides exposure to a broad group of ASX shares with higher forecast dividend yields.

It tracks the FTSE Australia High Dividend Yield Index, which focuses on companies expected to pay above-average dividends. The portfolio is diversified, with limits of 40% per industry and 10% per company. It also excludes A-REITs.

The fund includes some of the largest income-generating companies on the ASX. Its top holdings feature names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Woodside Energy Group Ltd (ASX: WDS), and Telstra Group Ltd (ASX: TLS).

This structure allows investors to access a wide range of dividend-paying shares without relying on a small number of companies. It also offers a low-cost way to build exposure to income across the Australian market.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Another ASX ETF to consider for passive income is the Betashares S&P Australian Shares High Yield ETF.

It takes a similar approach to dividend investing. It provides exposure to a portfolio of 50 Australian shares with high forecast dividend yields. The fund also applies additional screening to improve the quality of those yields.

This includes filtering out potential dividend traps, such as companies expected to pay unsustainably high dividends or those with elevated volatility relative to their forecast payouts.

The portfolio also includes major ASX names such as BHP, Westpac, ANZ Group Holdings Ltd (ASX: ANZ), and Macquarie Group Ltd (ASX: MQG).

Another positive is that the Betashares S&P Australian Shares High Yield pays income monthly, which may appeal to investors looking for more regular cash flow.

A simpler way to generate passive income

Using ASX ETFs like these removes much of the complexity from dividend investing.

Instead of selecting and managing individual ASX dividend shares, investors can gain diversified exposure to high-yield companies through a single trade.

The post The easy way to buy ASX dividend shares and build passive income appeared first on The Motley Fool Australia.

More reading

• How to build a second income from ASX shares without taking big risks
• Why this is the best income ASX ETF for retirees
• Own ASX DHHF or other Betashares ETFs? It’s a big day for you!
• Vanguard ETF dividends to be paid today
• 5 excellent ASX ETFs to buy next week

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares have come back into focus this week after investors reacted to the latest update.

The stock fell 3.60% on Monday to $41.02 following a market release, before stabilising on Tuesday. It finished up 0.46% at $41.21.

That move leaves NAB shares down close to 10% over the past week, pulling them back from recent highs.

The question now is whether this pullback has opened a buying opportunity.

What triggered the recent sell-off?

NAB’s recent update centred on changes to credit provisioning and capital settings ahead of its half-year result.

The bank expects credit impairment charges of around $706 million for 1H FY26. That includes a $300 million increase tied to forward-looking provisions.

Those changes reflect a more cautious view on the economic outlook, with added weight placed on downside scenarios.

Sectors linked to fuel costs and supply pressures were flagged as areas of potential stress.

There were also capital impacts. NAB said its Common Equity Tier 1 (CET1) ratio is expected to fall by around 20 basis points due to market volatility and provisioning changes.

Alongside this, the bank confirmed an accelerated amortisation charge of roughly $1.35 billion tied to software assets.

None of this points to an immediate earnings collapse, but it does shift expectations lower in the near term.

A reset, not a breakdown

The key point is that these changes are largely forward-looking.

NAB is adjusting settings to reflect a more uncertain backdrop rather than reacting to a sudden spike in losses.

The underlying business remains stable.

The bank continues to generate earnings across lending, deposits, and business banking, supported by its scale in the country.

Margins have been supported by higher interest rates, even as competition for deposits has increased.

Credit quality, while expected to soften, is coming off a relatively strong base.

Does the valuation look more attractive?

At around $41, NAB is trading well below its recent peak and closer to the middle of its 52-week range.

The stock also continues to offer a dividend yield above 4%, supported by ongoing profitability.

That setup tends to attract income-focused investors when prices pull back.

The recent decline has not been driven by structural issues in the business. Instead, it reflects a shift in assumptions around risk, provisioning, and capital.

That difference is worth noting when weighing up value.

Foolish bottom line

NAB shares are not without risk in the current environment.

Higher rates, global uncertainty, and pressure on borrowers all point to a more conservative outlook.

Even so, the latest update looks more like a shift in expectations than a change in the business itself.

A pullback of this size in a major bank can start to look more compelling.

The opportunity comes down to how investors weigh near-term earnings pressure against longer-term stability.

The post NAB shares: Are they cheap enough to buy after the latest drop? appeared first on The Motley Fool Australia.

More reading

• Why Monash IVF, NAB, Viva Energy, and Worley shares are falling today
• Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
• Why are NAB shares sinking 4% on Monday?
• National Australia Bank strengthens balance sheet ahead of 1H26 results
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?

Motley Fool contributor Aaron Teboneras 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.

Telstra Group Ltd (ASX: TLS) shares finished Tuesday down 0.19% to $5.33.

That leaves the stock hovering near the top end of its recent range, after a steady run through 2026.

Over the past 12 months, the shares are up roughly 20%, supported by a mix of defensive demand and improving earnings visibility.

It is the kind of price action that usually draws attention.

But despite that, I do not currently own Telstra shares.

Here is why.

A quality business, no question

Telstra is about as predictable as it gets on the ASX.

It operates critical telecommunications infrastructure across Australia, with millions of mobile, broadband, and enterprise customers. That reach supports recurring revenue, pricing power, and steady cash flow.

Recent price increases across mobile plans are also starting to come through. With a relatively sticky customer base, those changes tend to lift margins without a drop in demand. That has been a key driver behind the latest run in the share price.

On top of that, Telstra remains a reliable dividend payer. The stock is yielding around 3.7%, with a payout backed by stable cash generation.

The underlying business is doing what it needs to do.

So why not buy?

The issue is not the business. It comes down to valuation.

At around $5.30 per share, Telstra is trading close to its 52-week high. Much of the stability, pricing power, and income appeal already appears reflected in the price.

That leaves little room for error.

Growth is also part of the picture. Telstra is not a high-growth business. Earnings tend to move higher over time, but not quickly. That normally leads to steady share price gains rather than sharp re-ratings.

At current levels, it looks more like a fully priced defensive than a discounted entry.

That is what’s holding me back.

Where I see better opportunity

Right now, I am more focused on stocks that have been sold off despite holding up operationally.

That is where I tend to look for upside.

One example is WiseTech Global Ltd (ASX: WTC). The business continues to grow, but the share price has pulled back rapidly from earlier highs.

That gap between performance and price is what stands out.

If sentiment turns, the re-rating can happen quickly, rather than relying on slow earnings growth alone.

What would change my view

I would not rule out owning Telstra.

But I would want a different entry point.

A pullback would improve the risk-reward, especially given the defensive profile of the business. That could come through broader market weakness or a shift in sentiment.

At the right price, Telstra could still play a role as a core portfolio holding.

Right now, it is not quite there.

Foolish takeaway

Telstra remains a high-quality, income-generating business with a strong position in the market.

But that alone is not enough.

At current levels, the shares look fairly priced, with less upside than other opportunities.

For now, I am staying on the sidelines and waiting for a better entry point.

The post Why I don’t own Telstra shares (yet) appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Stagflation: How to position an ASX stock portfolio
• 5 oversold ASX shares to buy before the end of April
• How to build a second income from ASX shares without taking big risks
• Why WiseTech shares could rise 70%

Motley Fool contributor Aaron Teboneras 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended Telstra Group and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX-listed exchange-traded fund (ETF) Global X S&P World Ex Australia GARP ETF (ASX: GARP) is a favourite of mine and offers plenty of positives. As a long-term investment, I think it could be one of the best ideas.

Global X may not be as well-known as Vanguard or BetaShares in Australia, but it offers a range of ASX ETFs for Australian investors to buy.

In my view, the GARP ETF could be one of the best funds to buy for investors hunting for stronger returns. I have that view for a few different reasons.

High-quality growth

One of the most important things to know about this fund is that it uses ‘GARP’ as an investment style. The ‘G’ stands for growth.

But, this fund isn’t just seeking any business that’s growing, it’s trying to own investments that are high-quality.

Instead of leaving judgements about quality and growth to a fund manager to decide, that fund uses filters to find those names.

On the growth side of things, the ASX ETF looks at three-year sales per share growth and earnings per share (EPS) growth figures. Both sales and profit growth are important, so it’s good to see that both metrics are being considered.

Quality is considered by looking at the companies’ financial leverage (meaning debt levels) and the return on equity (ROE). It’s good to know that the company’s growth is not being artificially boosted by unsustainable debt levels. These businesses are purely generating strong profits for shareholders because they have great business models, not because they’re using lots of debt.  

Reasonable price

The rest of the strategy employed by the GARP ETF is the ‘ARP’, which stands for ‘at a reasonable price’.

In other words, the businesses are generating pleasing levels of growth, but we’re not paying too much to invest in that growth.

How does the fund decide whether an investment is good value or not? It’s by looking at the earnings-to-price ratio, which is another way of considering the price/earnings (P/E) ratio.

Therefore, the ASX ETF is looking for businesses with an attractive P/E ratio relative to its growth rate, which some investors call the PEG ratio.

At the end of March, some of the largest positions in the portfolio included Nvidia, Eli Lilly, Alphabet, Meta Platforms, Berkshire Hathaway and Microsoft.

Useful diversification

While the biggest positions in the portfolio are unsurprisingly US companies, it’s important to know that this ASX ETF has a global portfolio of 250 companies across multiple countries and sectors. In other words, it can provide global diversification and it’s not too focused on one country or one sector.

For me, this can be an all-in-one investment that ticks virtually all the boxes that an Australian investor could want.

The post Is this going to be the best-performing ASX ETF for the next decade? appeared first on The Motley Fool Australia.

More reading

• Which ASX ETFs I’d buy for retirement investing

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.

Building a true “buy and hold” portfolio isn’t about chasing the highest yield. It’s about owning resilient ASX dividend shares that can keep paying and ideally growing dividends through cycles, downturns, and decades.

With that in mind, here are five ASX dividend shares that could form the backbone of a long-term income portfolio.

BHP Group Ltd (ASX: BHP)

BHP Group stands out as a dividend heavyweight. Backed by world-class iron ore and copper assets, this ASX dividend share generates enormous cash flow during commodity upcycles.

The company targets a payout ratio of at least 50% of earnings, which means dividends can surge when conditions are strong. The trade-off is volatility. Earnings and payouts will rise and fall with commodity prices, but over time, BHP offers powerful income upside.

APA Group (ASX: APA)

For stability, APA Group is hard to overlook. Its gas pipeline network operates under long-term contracts, delivering predictable cash flow and a consistent stream of distributions.

While higher interest rates can weigh on infrastructure stocks, APA’s reliability makes it a core income anchor for many portfolios.

Transurban Group (ASX: TCL)

Transurban Group brings a different kind of strength. It owns monopoly-like toll roads across major cities, with many tolls linked to inflation. As populations grow and traffic increases, so too does revenue.

The business carries significant debt, but its long-term concessions and essential infrastructure position it well for steady, inflation-linked income growth.

Commonwealth Bank of Australia (ASX: CBA)

No dividend portfolio feels complete without exposure to banking, and Commonwealth Bank of Australia remains the standout. It combines a dominant retail banking position with strong profitability and a long history of fully franked dividends.

While valuation can sometimes look stretched and earnings are tied to the housing cycle, CBA offers high-quality, dependable income.

Woodside Energy Group Ltd (ASX: WDS)

Rounding out the mix is Woodside Energy Group, which adds serious yield potential. As a major LNG exporter, it benefits from global energy demand and typically pays out a large portion of earnings as dividends.

That said, energy prices can be volatile, so payouts may swing. Still, it plays an important role in boosting overall portfolio income.

Foolish Takeaway

Together, these five ASX dividend shares provide exposure to multiple income drivers across resources, infrastructure, and financials. Some offer steady, defensive income, while others deliver higher but more variable payouts. That balance is what helps a portfolio navigate changing market conditions.

Over time, a mix like this could reasonably target an average yield of around 4.5% to 6%, with the added benefit of franking credits from Australian shares. More importantly, it’s the potential for dividend growth – not just yield – that can drive long-term wealth.

A “forever” portfolio doesn’t mean never reviewing your holdings. But it does mean choosing businesses you can hold with confidence. These five ASX names have the scale, assets, and cash flow to keep rewarding shareholders for years to come.

The post 5 powerhouse ASX dividend shares to buy and hold until 2050 appeared first on The Motley Fool Australia.

More reading

• Stagflation: How to position an ASX stock portfolio
• 5 things to watch on the ASX 200 on Wednesday
• What are brokers predicting for BHP shares over the next 12 months?
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• Should you buy BHP shares ahead of the miner’s production update?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session, slipping slightly into the red. The benchmark index fell slightly to 8,949.4 points.

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

ASX 200 to fall

The Australian share market looks set to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 0.75% lower. In the United States, the Dow Jones fell 0.6%, the S&P 500 dropped 0.6%, and the Nasdaq also fell 0.6%.

Oil prices rise

It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$89.59 a barrel and the Brent crude oil price is up 3.5% to US$98.83 a barrel. This appears to have been driven by doubts over US-Iran peace talks.

BHP Q3 update

All eyes will be on BHP Group Ltd (ASX: BHP) shares on Wednesday when the mining giant releases its third-quarter update. According to a note out of Morgans, its analysts are forecasting WAIO shipments of 67.5Mt. This will be down 1% on the prior corresponding period and 12% quarter on quarter due to the impacts of Cyclone Narelle. The broker will also be looking out for updates on its diesel supply.

Gold price drops

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.2% to US$4,720.6 an ounce. A stronger US dollar and inflation concerns weighed on the precious metal. Northern Star will also be releasing its quarterly update.

Buy Hub24 shares

Bell Potter thinks investors should be buying Hub24 Ltd (ASX: HUB) shares following their 8% decline on Tuesday. This morning, the broker has retained its buy rating on the investment platform provider’s shares with a trimmed price target of $110.00 (from $120.00). It said: “Following the update we have downgraded our EPS estimates -1%/-2%/-2% with the miss dampened from mark-to-market impacts. FY27 Platform FUA guidance of $160- 170bn remains in play, with revised forecasts landing on the lower end of that range. A pickup in sentiment would likely push outcomes the other way. Acquisition of the superannuation fund trustee is also expected to have a limited influence on EBITDA line. For these reasons, we expect the multiple gap to peers can close over time.”

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

More reading

• Here are the top 10 ASX 200 shares today
• What are brokers predicting for BHP shares over the next 12 months?
• Why ANZ, Challenger, Hub24, and Lynas shares are dropping today
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• Should you buy BHP shares ahead of the miner’s production update?

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 BHP Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares closed in the green again when the ASX bell rang on Tuesday afternoon. 

The shares ended the day 2.8% higher, at $2.58, continuing on a huge price rally.

The latest uptick means the shares have now flown 40% higher over the past 5 days. They’re also now up a massive 71% over the past month. 

Despite the incredible rally, Zip shares are still 23% lower for the year-to-date thanks to a series of share price falls throughout the first six weeks of the year.

Why are Zip shares suddenly flying higher?

The BNPL provider posted its Q3 FY26 results ahead of the ASX open last Friday morning. The company also updated FY26 guidance figures ahead off the back of the results.

The company posted record cash EBTDA of $65.1 million, up 41.5% year-on-year. Its total transaction volume grew 22.5%, total income jumped 20.2%.

Following its strong third-quarter performance, Zip has upgraded its FY26 group cash EBTDA guidance to at least $260 million and reaffirmed all key target ranges for the year. 

US transaction volume is forecast to rise over 40% in FY26. Meanwhile group operating margins are expected to remain above 18%. The result seems to align with expectations that the company can maintain its credit quality while scaling up its operations.

Clearly investors were thrilled with the latest update. Zip shares have jumped over 25% since the announcement alone.

The good news came off the back of what seemed to be a turnaround in investor confidence in mid-March.

There wasn’t any price-sensitive news out of the Zip ahead of the results announcement to explain why the share price was flying higher earlier this month. 

The share price increase is likely due to a combination of factors, including a shift in sentiment and investors buying back into the tech stock in the dip. This has now been accelerated by a positive results announcement.

Is it too late to buy? Or is there more upside ahead?

According to TradingView data, analysts are very bullish about the outlook for Zip shares, with 11 analysts holding a consensus buy or strong buy rating.

There is more good news too. It looks like Zip shares could storm much higher this year.

The average target price is $3.83, which implies that Zip shares could fly another 49% higher over the next 12 months.

And some more are even more bullish, with a maximum price target of $5.40, which suggests 109% upside.

The post Up over 70% in a month, is it too late to buy Zip shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.