Tag: Stock pick

The Strait of Hormuz oil shock has put ASX green energy shares firmly back in focus.

Oil is the reason why.

When crude prices spike, the whole energy sector moves with them.

Investors are now trying to work out who benefits and who suffers.

Let’s take a look.

Why the oil price matters

The Strait of Hormuz carries a large slice of the world’s seaborne crude.

Any disruption there ripples straight through global markets.

As a result of the most recent disruptions prices have remained elevated, even after cooling from their peaks.

The WTI crude oil price recently sat near US$78.93 a barrel. Brent was around US$84.31.

Higher oil prices lift the cost of fossil-fuel power. In theory, that improves the relative economics of renewables, as wind and solar don’t burn fuel and their input costs don’t rise when a tanker changes course.

That is the simple bull case, but the reality is a little more complicated.

What the latest oil shock means for ASX green energy shares

Most ASX green energy shares are not pure-play renewables businesses. Many still earn money from gas, coal, or electricity retailing. So the oil story cuts both ways. A higher wholesale power price can help earnings today. A faster energy transition can help earnings tomorrow.

Investors need to weigh each business on its own merits. Here are three names worth watching.

Three ASX green energy shares in focus

First up is Origin Energy Ltd (ASX: ORG).

Origin runs generation, gas, and a growing renewables and storage arm. The company is also one of the country’s largest electricity retailers.

Origin shares have had a rough run of late. They recently fell around 19% from this year’s highs, which traces back to its March quarter update in late April. This update showed declines across its Integrated Gas, Energy Markets, and Octopus Energy segments. Crucially, the company also downgraded its FY26 EBITDA guidance.

Today’s share price weakness could interest bargain hunters.

Next is Meridian Energy Ltd (ASX: MEZ). Meridian is a New Zealand-based renewables generator built on hydro power.

Hydro provides roughly 60% of New Zealand’s electricity, and the company recently won final approval to expand its Lake PÅ«kaki hydro storage.

However, dry-year supply risk, wholesale price uncertainty, and the drawn-out Lake PÅ«kaki storage approval process (contested by Transpower and the Energy Minister) all weighed on the shares over the year.

Finally, there is Infratil Ltd (ASX: IFT).

Infratil is an infrastructure investor with broad exposure.

Its portfolio spans renewable generation, data centres, and airports.

That diversification can smooth out the bumps across the current oil shock, giving investors a bit of downside protection.

The bottom line on ASX green energy shares

The Strait of Hormuz crisis is a stark reminder of the world’s reliance on oil.

It also underlines the long-term case for cleaner power.

But ASX green energy shares are not a simple one-way bet. Each business carries its own mix of risks and rewards, and investors should be careful to analyse each opportunity individually.

Foolish takeaway

Oil shocks come and go.

The energy transition looks more like a multi-decade theme.

For patient investors, ASX green energy shares offer one way to play it.

Just be sure to understand what sits inside each business first.

The post What the Strait of Hormuz oil shock means for ASX green energy shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Which ASX 200 sectors paid the highest dividend yields in FY26?
• How much do I need in my superannuation to get $6,000 per month in passive income?
• Oil price crash sparks broker upgrades for ASX energy shares
• Origin Energy sell-off continues, shares hit fresh 52-week low: Buy, sell or hold?

Motley Fool contributor Mark Verhoeven 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.

Share prices are changing all the time, giving investors the opportunity to buy (and sell). When ASX shares are trading near 52-week lows, they could be particularly attractive buys.

Of course, there’s a danger they could fall even further from here. But, even if they do, the two ASX shares I want to highlight look like they could materially climb over the next two or three years.

I’m bullish on the two stocks below and optimistic they can bounce back.

ARB Corporation Ltd (ASX: ARB)

The business claims to be Australia’s largest manufacturer and distributor of 4WD accessories which are made to perform in harsh environments. It distributes its products to more than 100 countries.

A significant portion of the company’s products are manufactured in Thailand, where costs are denominated in the Thai baht. The weaker Australian dollar hurt margins in the FY26 first half and this is part of what has sent the ARB share price down by more than 50% since August 2025.

I believe this decline could be a great time to invest. As Warren Buffett once said, be fearful when others are greedy and greedy when others are fearful.

The company believes there a number of elements that could help the company’s long-term success. That includes the expansion of the Australian and New Zealand aftermarket, with new and upgraded retail stores and stockists, and the launch of the new e-commerce sites.

Next, the company highlighted developments in both distribution and product dedicated to the USA market.

ARB also noted increased distribution and manufacturing capacity to accommodate future growth. It also highlighted a pipeline of new product developments and releases.

According to the projection on Commsec, the ARB share price is valued at 17x FY26’s estimated earnings and 15x FY27’s estimated earnings.

Tuas Ltd (ASX: TUA)

Another ASX share that I think looks very undervalued in my opinion is the Singapore-based ASX telco share.

At the time of writing, it has writing more than 60% since mid-May. Ouch. It’s close to its 52-week low.

The Infocomm Media Development Authority of Singapore (IMDA) said it had learned that Simba may have been using radio frequency bands it was not authorised to use. This led to the termination of the M1 acquisition, leaving Tuas with a lot more shares (and a large cash balance) compared to before the attempted acquisition.

I don’t think this will stop the business operating in Singapore and it hopefully won’t slow the company’s growth in Singapore too much. The Tuas share price looks undervalued for how much regular profit it’s generating, plus it can grow in other ways with that cash pile, such as expanding internationally.

In the FY26 first half, the company reported revenue growth of 26% and underlying operating (EBITDA) rose 27%. It grew revenue at a strong pace and the profit margin increased.

The business is making progress expanding its mobile and broadband user base, which is helping its top line and bottom line. It’s already very profitable on a cash flow basis – HY26 operating cash flow was $50.1 million. This can be used to improve the business in the coming periods. 

Despite the setback, I think this ASX share can bounce back from near its 52-week lows.

The post 2 ASX shares near 52-week lows I’d buy today appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Tristan Harrison has positions in Tuas. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AIC Mines Ltd (ASX: A1M) shares had a day to forget on Thursday.

The ASX copper stock ended the day around 18% lower at 67 cents.

What happened?

Investors were hitting the sell button following the release of the company’s quarterly update, which revealed higher than expected costs at the Eloise copper mine.

Commenting on the update, Bell Potter said:

A1M has met production and cost guidance for its 3rd consecutive year. At its 100%- owned Eloise Copper Mine in QLD, A1M has reported production for the June 2026 quarter of 3,106t copper in concentrate plus 1,605oz gold at All-In-Sustaining-Costs (AISC) of A$6.15/lb (vs BPe 3,299t Cu in concentrate plus 1,389oz Au at A$4.51/lb). Compared with our numbers, this was a slight miss on copper, a beat on gold, but costs were a negative surprise and the highest reported from Eloise under A1M’s ownership.

Bell Potter has also been looking at the ASX copper stock’s expansion plans and is pleased with its progress. However, it concedes that AIC Mines’ higher costs has raised concerns that it may have to raise capital to fund the expansion. It said:

We recently attended a site visit to Eloise and returned comfortable with the view that the mine expansion is on schedule and mill commissioning will commence as planned in the December quarter 2026. This timeline was reiterated by A1M with the June quarterly report, albeit with some non-critical-path delays. A1M will also provide an updated outlook on 20 July 2026 covering FY27, FY28 and FY29 production targets. 

We anticipate this will include an update on a staged expansion from 1.1Mtpa to 1.5Mtpa, which is already partially catered for with the current expansion to 1.1Mtpa. On our current forecasts the expansion is fully funded. However, the higher costs reported in this quarterly have caused, in our view, some in the market to question this and it being a factor in today’s negative share price reaction.

Should you buy this ASX copper stock?

According to the note, the broker has retained its buy rating on AIC Mines’ shares with a reduced price target of 90 cents.

Based on its current share price of 67 cents, this implies potential upside of 34% for investors over the next 12 months.

Commenting on its buy thesis, Bell Potter said:

EPS changes with this update are: FY26: -13%, FY27: -8% and FY28: -9%, on the softer June quarter, forecast higher underlying unit costs, and slightly lower production. A1M represents leveraged, unhedged copper exposure via its Eloise Copper Project with a clear, organic growth strategy being advanced. It has a strong track record of delivery to guidance and a well-credentialed management team. We retain our Buy recommendation on a lowered NPV-based target price of $0.90/sh.

The post Why this ASX copper stock could rise 30%+ in 12 months appeared first on The Motley Fool Australia.

More reading

• Forget Rio Tinto and buy this ASX copper share

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.

The ASX stock APA Group (ASX: APA) continues to deliver a very pleasing level of passive income, particularly for investors targeting resilient payouts each year.

APA has one of the best records when it comes to regular payout growth, as well as its impressive asset base.

The business owns a number of important energy assets, including gas pipelines, electricity transmission, gas power stations, gas processing, gas storage, solar farms and wind farms.

Thanks to the essential nature of its portfolio, the business has been able to deliver investors a pleasing level of passive income.

Great passive income track record

APA has increased its distribution every year since 2004, which is the second-longest streak on the ASX for consistent growth of dividend payouts.

The business has kept up this payout growth whilst regularly investing in more assets for its portfolio. For example, in recent times it has announced more gas pipelines, as well as a gas peaking power plant in Queensland.

Each asset it builds/acquires, meaning it adds to APA’s ability to generate more cash flow. APA pays for its distribution from the cash flow it makes, so a growing portfolio is good news for investors wanting larger payouts.

Another positive for income-seeking investors is the fact that most of APA’s revenue is linked to inflation, so it’s benefiting from regular growth and can help offset the negatives of higher inflation for investors.

APA does not pay a distribution every month, though it does pay every six months. I think it would be better to think of the goal as an annual target and then divide the amount into 12 equal amounts.

$200 per month translates into an annual goal of $2,400 per year. I’m expecting the business to increase its annual payout to at least 59 cents per security in FY27.

To receive $2,400 per year based on the potential FY27 payout, an investor would need to buy 4,068 APA shares.

In my view, the business has a promising future and can continue expanding its energy portfolio for the foreseeable future as Australia looks to other energy sources to replace coal over the next decade.

The post I’d buy 4,068 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

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• How much do I need in my superannuation to earn an annual $60,000 passive income?
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• Which ASX 200 sectors paid the highest dividend yields in FY26?
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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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of options for investors to choose from in the resources sector.

To narrow things down, let’s find out what Morgans is saying about three ASX shares that have recently released updates.

Here’s what you need to know:

Amplitude Energy Ltd (ASX: AEL)

Morgans remains positive on this energy producer’s shares following its fourth-quarter update. This was particularly the case with the Orbost operation, which continues to outperform.

In response, the broker has retained its buy rating and $3.05 price target on the company’s shares. It said:

A solid Q4 production and sales result, with Orbost’s continued outperformance the obvious standout. As we expected, revenue dipped on softer Victorian and South Australian spot prices through the quarter, though by less than we had allowed for. FY26 closed with records across the board. Group production of 27.6PJe (+3%), revenue of A$285.8m (+7%) and a record realised gas price of A$10.35/GJ (+4%), while net debt was slashed 85% yoy to A$37.2m. 

Management’s outlook commentary was very positive, with the flagship Orbost plant setting fresh production records post quarter end. AEL is our top energy sector pick following recent share price weakness. We maintain our BUY rating and A$3.05 target price.

Evolution Mining Ltd (ASX: EVN)

The broker notes that this gold miner delivered a result in line with expectations. And while capital expenditure will be higher than forecast in FY 2027, it remains positive on the investment opportunity here.

Morgans has retained its buy rating with a trimmed price target of $14.60. It commented:

4Q26 result and FY26 guidance were largely in line with expectations. FY27 outlook commentary flagged higher capex than previously expected and inflationary impacts to AISC, which affect FY27 cash flow forecasts. Maintain BUY with a A$14.60ps target price (previously A$16.00ps).

Rio Tinto Ltd (ASX: RIO)

Morgans highlights that this mining giant’s Pilbara operations outperformed expectations during the second quarter. And while the Simandou operation’s performance was weak, the broker doesn’t see this as a negative.

However, for valuation reasons, Morgans only has a hold rating and $163.00 price target on Rio Tinto shares.

RIO posted a healthy Q2 where it matters, with Pilbara shipments beating consensus (+2%), while we see the headline Simandou miss (-68% vs consensus) as a net positive: a slower Simandou ramp supports iron ore benchmarks, and each US$10/t on the benchmark is worth ~US$2.5bn of annual EBITDA to RIO’s far larger Pilbara business. The sting in the tail was Kennecott, with a late June converting furnace breach requiring a ~75-day full rebuild, hitting H2 refined copper and gold output (total copper including saleable matte unchanged). 

Copper C1 guidance halved to US30-50c/lb, on strong by-prod prices, a material margin tailwind into the H2 result. Trading back close to where we see fair value, RIO remains one of the highest quality global exposures to a sector enjoying a multi-year upcycle (albeit not without its volatility). We maintain our HOLD rating, A$163.00 TP (was A$165.00).

The post Should you buy Rio Tinto and these ASX shares? appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Friday
• A miner and an energy company to buy according to Macquarie
• Could Evolution Mining shares rise 33%?
• Why this ASX energy stock could be set to rise 80%: Expert

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.

Do you have room in your portfolio for a new addition? If you do and are interested in ASX 200 tech shares, then it could be worth considering Netwealth Group Ltd (ASX: NWL) shares.

That’s the view of analysts at Bell Potter, which remains bullish on the investment platform provider following its quarterly update.

What is the broker saying?

Bell Potter highlights that Netwealth’s fourth quarter update was slightly ahead of expectations thanks to positive market movements. It said:

Minor beat related to market movements and outlook parameters were reconfirmed. Gross flow momentum and managed account net flows held up despite elevated outflows. Investor caution was slight (middle east conflict and budget), and this was the key takeaway. Institutional accounts were weaker and the cause, while the superannuation segment delivered record net flows. Consensus net flows sit at the lower bound of the guidance range and offer further room for potential withdrawals.

Another positive is that its outlook commentary was unchanged, which it believes points to new run rate momentum. 

Outlook comments are unchanged and indicate new run rate momentum: 1) elevated outflow impacts are expected to be temporary; 2) FY27 net flows of $18-20B, which would imply organic momentum and the partial benefit of new products; 3) EBITDA margins of 47%; and 4) investment in capitalised software of $17M. Net flow guidance wraps well around consensus expectations for $18.2B. Initiatives delivered in the period include an agentive AI agent for real-time support and improved execution.

Should you buy Netwealth shares?

According to the note, Bell Potter has retained its buy rating and $30.00 price target on Netwealth’s shares.

Based on its current share price of $23.50, this implies potential upside of approximately 28% for investors over the next 12 months.

In addition, a dividend yield of 2.2% is expected in FY 2027. This stretches the total potential return over the period to approximately 30%.

If Bell Potter is on the money with its recommendation, this would turn a $10,000 investment into approximately $13,000.

Commenting on its buy recommendation, the broker said:

Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive.

Overall, this could make the company worth considering if you are looking for exposure to this side of the market.

The post Are Netwealth shares a top buy after its update? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Netwealth delivers record FUA in June 2026 quarter
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• Buy, hold, sell: Netwealth, Silver Mines, and Qantas shares
• 5 things to watch on the ASX 200 on Friday

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

Your superannuation shouldn’t sit quietly in the background.

If you can actively and wisely invest it, it can become an excellent tool to generate an easy passive income for retirement.

As an added bonus, not only can it help you build wealth for later on in life, it also comes with the added benefit of low tax rates and long-term compounding.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a $60,000 per year passive income as an example.

How much do I need in my superannuation to earn $60,000 per year in passive income?

To calculate the superannuation you’ll need, simply divide your annual passive income by the dividend yield of your portfolio.

Of course, the tricky part is that the answer varies significantly depending on what dividend yield of your portfolio actually is.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

So, if your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2 million to earn $60,000 per year in passive income.

Of course, a $2 million superannuation balance isn’t achievable for many Australians. But the good news is that, as your dividend yield increases, the superannuation balance required to earn the same passive income goes down.

That means, if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $1.5 million to earn the same dividend income.

Raise the dividend yield of your portfolio to 5% and you’d be looking at a balance of closer to $1.2 million to earn the same amount.

Increase that to a 6% or even 8% dividend yield, and you’d need around $1 million or $750,000, respectively. You’d still earn $60,000 per year in passive income from these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Santos Ltd (ASX: STO) is a good option if you want oil and gas exposure. Meanwhile, Coles Group Ltd (ASX: COL) and blue-chip majors like Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX: BHP) and National Australia Bank Ltd (ASX: NAB) pay a decent dividend of around 3% to 5%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or AGL Energy Ltd (ASX: AGL).

Dexus Industria REIT (ASX: DXI) and Charter Hall Long WALE REIT (ASX: CLW) yield around the 7% mark.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much do I need in my superannuation to earn an annual $60,000 passive income? appeared first on The Motley Fool Australia.

More reading

• Should you buy Rio Tinto and these ASX shares?
• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares
• 5 things to watch on the ASX 200 on Friday
• 3 ASX dividend shares I’d buy for passive income right now
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are spoilt for choice when it comes to ASX dividend shares on the local market.

To narrow things down, let’s take a look at two that have been named as buys by brokers.

Here’s what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF’s control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company’s shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman’s shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Harvey Norman and REA Group shares
• 5 things to watch on the ASX 200 on Friday
• 2 ASX shares near 52-week lows I’d buy today
• These ASX shares could generate $10,000 per year in passive income
• 5 top ASX dividend shares to buy in July

Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Harvey Norman. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a wobbly first half of 2026, with Australian sharemarkets swinging sharply between highs and lows.

During periods of uncertainty, defensive ASX shares are typically thrust into the spotlight as investors rotate towards stable assets.

But after recent price gains, are these major ASX blue chips still a buy?

Here’s what the experts think.

Coles Group Ltd (ASX: COL)

Coles shares have suffered peaks and troughs throughout the first few months of 2026. The shares have traded anywhere between a low of $20.35 a piece and an all-time high of $24.41 in late-June. Overall though, the shares are up around 6% for the year-to-date. 

It looks like Coles shares hit a couple of headwinds this month. After spiking to a historic high, the shares weakened over the past couple of weeks, thanks to a combination of company-specific setbacks. 

These include concerns about a potential acquisition of Petbarn owner Greencross, and news that the Australian Competition and Consumer Commission (ACCC) has ruled against the supermarket giant’s proposed acquisition of a leasehold interest in Kalgoorlie-Boulder, Western Australia. 

But brokers are still bullish about the outlook for Coles shares. TradingView data shows that the majority (nine out of 16) of analysts have a buy or strong buy rating. Another five rate the supermarket stock as a hold and another two have a sell or strong sell rating.

The average $23.65 target price implies a potential 5% upside at the time of writing. 

Woolworths Group Ltd (ASX: WOW)

Coles’ direct rival, Woolworths has fared much better this year. For the year-to-date the supermarket giant’s share price is over 33% higher, and it has mostly trended upwards rather than suffering a series of sharp peaks and falls.

It looks like the steady increase has mostly been driven by investor confidence that the retailer’s earnings are recovering after a difficult period in late-2025.

Woolworths posted a stronger-than-expected first half result in February and is actively pursuing cost cutting initiatives to help support margins and earnings over time. 

But after the incredible run,  it looks like Woolworths shares have now reached their peak and are trading around fair value. 

TradingView data shows that eight out of 17 analysts have a hold rating on the supermarket stock. Another five rate the shares as a buy or strong buy, and four rate Woolworths shares as a strong sell.

The average $36.33 target price now implies a potential 8% downside over the next 12 months, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares had a difficult start to the year and slumped to an annual low in mid-May. But the retail conglomerate’s shares quickly rebounded and have now recovered around 29% from that point to the close of the ASX on Thursday afternoon. For the year-to-date, Wesfarmers shares are now up around 12%.

The business benefited from an uptick in consumer spending and news that interest rates could start falling. Wesfarmers’ sheer scale and market dominance across several retail sectors has also helped reinforce the company’s competitive advantage.

The company has also been actively expanding. The company has opened five Anko stores in the Philippines and plans to launch another five by the end of FY27. Locally, its Bunnings brand continues to expand into new categories, including pet products and automotive accessories. And also its Kmart segment is testing larger K Home stores in an attempt to break into the furniture retail market.

But the concern now is that after a huge rebound, Wesfarmers shares have become too expensive.

TradingView data shows half (seven out of 14) of analysts have a hold rating on the stock. Another six rate Wesfarmers shares as a strong sell. Only one broker now holds a buy rating.

The average $77.39 target price implies a potential 16% downside, at the time of writing. 

The post Buy, hold, sell: Coles, Woolworths, Wesfarmers 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 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.

The team at Bell Potter has released updated guidance on Harvey Norman Holdings Ltd (ASX: HVN) and REA Group Ltd (ASX: REA) shares. 

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA’s final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA’s pricing (“buy yield”) benefits. 

Bell Potter’s updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN’s Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN’s prime position in Australia’s large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN’s key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.