Tag: Stock pick

There is a wide array of opportunities available on the ASX stock market – any of them can produce good investment returns, not just the most popular ones.

The funds management team at Wilson Asset Management have identified a few different names in its WAM Research Ltd (ASX: WAX) portfolio that could be good ideas.

WAM Research is a listed investment company (LIC) that looks to invest in the most compelling undervalued growth opportunities in the Australian market.

Let’s look at two ASX stocks that WAM believes are buys at the current share prices.

Generation Development Group Ltd (ASX: GDG)

WAM describes Generation Development Group as a provider of wealth and retirement-related products and services across platforms, including managed accounts and investment bonds.

The fund manager noted that the ASX stock released its update for the three months to December 2025 last month, which showed “strong underlying operating momentum”, including total funds under management (FUM) of $34.5 billion (up 36% year over year) and record quarterly gross inflows of $393 million (up 57% year over year).

This growth was driven by Generation Life, one of the company’s three divisions, which offers investment bonds and lifetime annuities.

WAM noted that the Generation Development Group’s share price fell sharply after delivering its quarterly update.

The fund manager believes that market commentary suggested the reaction was driven less by the headline growth numbers and more by “pre-existing investor positioning and valuation levels ahead of the results, coupled with investor sensitivity to the timing of inflows within the Evidentia Group business.”

WAM then explained why it sees this as an opportunity and why it thinks it’s a buy:

While lumpier in nature versus the traditional investment bonds business, we believe momentum within Evidentia Group remains strong and view the current weakness as opportunity to add to our position given our conviction in the medium-term growth profile.

Supply Network Ltd (ASX: SNL)

The other ASX stock highlighted within the WAM Research portfolio was Supply Network, an automotive parts distributor that’s focused on specialist undercarriage parts for the independent repair market.

The fund manager noted that in late January, the business released an earnings forecast for the six months to 31 December 2025, leading to a rise in the Supply Network share price.

That forecast included expected overall sales revenue of $200 million, as well as net profit after tax (NPAT) guidance of $22.9 million. The company also announced a fully-franked interim dividend of 36 cents per share, which will be paid on 2 April 2026.

Aside from the numbers, why was this such a promising update from the ASX stock? WAM wrote:            

The update reinforced confidence in the business’ earnings momentum heading into its half -year result expected in late February, with the fully franked dividend also highlighting balance sheet strength and cash generation.

The post Experts reckon both of these ASX stocks are good buys today! appeared first on The Motley Fool Australia.

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• These 4 ASX 200 stocks could jump another 70% to 80% in 2026
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• Two ASX 200 stocks to buy after crashing 6-9% yesterday
• Why Fortescue, Generation Development, Northern Star, and Pantoro shares are falling today
• Generation Development Group posts record December quarter earnings and inflows

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 Supply Network Ltd. The Motley Fool Australia has recommended Generation Development Group and Supply Network Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The HomeCo Daily Needs REIT (ASX: HDN) share price is in focus today after the company posted half-year FFO per unit growth and reaffirmed its FY26 guidance, powered by positive property revaluations and strong portfolio performance.

What did HomeCo Daily Needs REIT report?

• First-half FY26 FFO per unit of 4.4 cents, up from 4.3 cents a year ago
• First-half FY26 distribution per unit (DPU) steady at 4.3 cents
• Net asset value (NTA) per unit of $1.55, up 5.4% since June 2025
• Dec-25 proforma gearing at 34.6%, within management’s 30–40% target
• Asset revaluations delivered a $219 million gross uplift (+4.5%) on June 2025 values
• FY26 guidance reaffirmed: FFO of 9.0 cents per unit and DPU of 8.6 cents per unit

What else do investors need to know?

HomeCo Daily Needs REIT maintained occupancy and cash rent collections above 99% since its IPO, demonstrating ongoing tenant demand and stable cashflow. The REIT also reported $87 million of asset disposals during the half, locking in a 1.6% premium to book value and providing flexibility for future acquisitions and developments.

The company has a development pipeline exceeding $650 million, targeting a return on invested capital of around 7%. Active projects worth $100 million are currently underway, aiming to drive earnings and future growth. Management highlighted disciplined asset recycling, focusing on high-quality centres and tenant-led opportunities.

What did HomeCo Daily Needs REIT management say?

Managing Director and CEO Sid Sharma said:

HDN has delivered another strong half, with robust top-line revenue growth driving an increase in FFO per unit and continued NTA growth. Operational excellence remains the cornerstone of our performance, with occupancy and cash collections above 99%, consistently positive leasing spreads and comparable NOI growth of 4%.

What’s next for HomeCo Daily Needs REIT?

Looking ahead, HomeCo Daily Needs REIT remains focused on delivering sustainable income growth for investors, leveraging its well-capitalised balance sheet and active development pipeline. The trust intends to continue strategic asset recycling and reinvesting in neighbourhood centres that support future valuation upside and improved earnings quality.

Management reaffirmed full-year FY26 guidance for FFO and distributions, underpinned by stable rental income and disciplined capital deployment. The portfolio’s exposure to leading national tenants and high-growth metropolitan areas supports HomeCo Daily Needs REIT’s strategy for resilient, long-term growth.

HomeCo Daily Needs REIT share price snapshot

Over the past 12 months, HomeCo Daily Needs REIT shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• CSL half-year earnings: profit drops but guidance reaffirmed
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The CSL Ltd (ASX: CSL) share price is in focus today after reporting underlying NPATA of US$1.9 billion, down 7% on the prior period, with total revenue falling 4% to US$8.3 billion.

What did CSL report?

• Total revenue: US$8.3 billion, down 4% (constant currency)
• Underlying NPATA: US$1.9 billion, down 7%
• Reported NPAT: US$401 million, down 81%
• Interim dividend: US$1.30 per share (steady year-on-year)
• Cash flow from operations: US$1.3 billion, up 3%
• Share buy-back expanded from US$500 million to US$750 million

What else do investors need to know?

CSL’s first-half results were weighed down by government policy changes, one-off restructuring costs, and asset impairments of around US$1.1 billion, mainly relating to CSL Vifor and CSL Seqirus. Despite these headwinds, transformation programs achieved around 60% of targeted cost savings for FY26, driven by simplifying operations and reducing R&D and infrastructure expenses.

The company announced a US$1.5 billion expansion of its US plasma manufacturing and highlighted strong revenue growth in CSL Vifor (up 12%). However, CSL Behring’s revenue declined 7%, and Seqirus faced a dip following non-recurring avian influenza revenue last year.

What did CSL management say?

CSL’s Chief Financial Officer Ken Lim said:

We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward. Our first-half results were also adversely impacted by a number of factors including government policy changes, one-off restructuring costs and impairments. In the second half we have an ambitious growth plan, driven by immunoglobulin (Ig), albumin and our newly launched products. We continued to advance our broader transformation strategy, making strong progress on our cost‑efficiency initiatives and strengthening the foundations of the business. We invested in growth opportunities including our strategic collaboration with VarmX. This will deliver enhanced growth, profitability and shareholder returns.

What’s next for CSL?

CSL has reaffirmed its FY26 guidance for 2–3% revenue growth and 4–7% NPATA growth, excluding one-off items and at constant currency. The second half is expected to benefit from growth in immunoglobulin, albumin, and new products. Seqirus will see lower contributions due to flu seasonality, while Vifor’s growth may be offset by continued generic competition.

Management remains focused on transformation and efficiency, with more than half the targeted cost savings for FY26 already achieved. Initiatives such as expanding manufacturing capacity and investing in innovative collaborations are intended to position CSL for longer-term value creation.

CSL share price snapshot

Over the past 12 months, the CSL shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post CSL half-year earnings: profit drops but guidance reaffirmed appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX Ltd (ASX: ASX) released a market update last night outlining changes to its senior leadership structure.

The announcement comes just ahead of the company’s half-year financial results, which are due to be announced on Thursday.

ASX shares finished Tuesday’s session 0.52% higher at $56.35, with details released after the close of trade.

ASX is Australia’s primary market operator, providing trading, clearing and settlement services across equities, derivatives and debt markets. The group also earns revenue from listings, data products and technology services used by market participants in Australia and overseas.

CEO departure confirmed

In its announcement, ASX confirmed that managing director and chief executive officer Helen Lofthouse will step down from the role in May 2026. Her tenure includes more than 10 years with the group and almost 4 years as chief executive.

Lofthouse was appointed in 2022 during a period of increased focus on the exchange, particularly around the failed CHESS replacement program. Since then, ASX has reset its technology strategy, cancelled the original blockchain based proposal and committed to a staged rebuild of its core clearing and settlement platform.

The first phase of the refreshed CHESS system is scheduled to go live in April. The board said the transition follows completion of key groundwork and positions the business for its next phase of leadership.

ASX has engaged an executive search firm to conduct a global process to identify its next chief executive. No successor or interim appointment has been named, and Lofthouse is expected to remain in the role until her departure.

Share price context

ASX shares remain well below their highs from earlier in 2025 but have rebounded from recent lows. Over the past year, the stock has faced pressure from regulatory oversight, technology execution risk and broader market volatility.

Despite this, the business continues to benefit from its position as critical national market infrastructure. Revenue is largely driven by trading volumes, listings activity and post trade services rather than direct exposure to market direction.

While the CHESS reset was generally supported, investor confidence has been affected by longer timelines and higher costs.

Half-year results due Thursday

ASX is scheduled to release its half-year results for the six months ended 31 December 2025 on Thursday 12 February. The update will be closely watched for revenue trends, cost control and progress on technology investment.

Investors will also be looking for commentary around market activity levels, capital expenditure and any changes to full year guidance.

While the leadership transition is a notable development, the upcoming earnings result is likely to be the main focus for the market.

The post Why ASX leadership is back in focus ahead of results appeared first on The Motley Fool Australia.

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• Analysts name 3 ASX shares to sell
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• ASX Limited shares keep getting cheaper, but the market still isn’t convinced
• ASX Ltd 1H26 earnings: revenue rises, expenses guidance upgraded

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.

Building to a $50,000 ASX share portfolio can feel like a big milestone, especially if you’re starting from scratch.

The good news is that it doesn’t require a huge upfront investment.

What it does require is consistency, patience, and an understanding of how compounding works over time. When those pieces come together, progress can be far quicker than it first appears.

Here’s how an Australian investor could realistically build a $50,000 portfolio using ASX shares.

Start small

The hardest part of investing is not picking ASX shares, it is getting started. But the sooner you start, the sooner you can build wealth.

Small, regular investments matter far more than waiting for the perfect moment. Even modest monthly contributions can add up meaningfully when combined with time and growth. What matters is building the habit of investing and sticking with it through market ups and downs.

Unleash compounding

Compounding is an investor’s best friend. It is what happens when you generate returns on top of returns.

At first, progress can feel slow. In the early years, most of the portfolio’s growth comes from your own additions rather than your investment returns. But in time, compounding begins to take over and the portfolio can accelerate almost quietly in the background.

This is why patience matters. Many new investors give up just before compounding really starts to show its power.

Where to focus

When building a portfolio from zero, it pays to focus on quality.

That can mean starting with high-quality ASX shares that have strong and sustainable business models and positive long-term outlooks. Companies like Goodman Group (ASX: GMG), ResMed Inc. (ASX: RMD), and REA Group Ltd (ASX: REA) are examples of businesses that have rewarded patient shareholders over long periods.

In addition, exchange traded funds (ETFs) can be helpful when starting out.

Examples of strong ETFs are the Vanguard Australian Shares Index ETF (ASX: VAS) or the Betashares Nasdaq 100 ETF (ASX: NDQ).

The goal is not to find the next big winner, but to own assets that can steadily grow over time.

Getting to $50,000

Based on a 10% per annum return, which is not guaranteed but achievable, it would take 10 years of investing $250 per month to grow an ASX share portfolio to $50,000.

But here’s the thing. You don’t have to stop there. If you continued this for a further 10 years, you would see compounding really start to work its magic.

After that period, all else equal, you would have an ASX share portfolio valued at approximately $180,000.

Foolish takeaway

Going from zero to $50,000 with ASX shares is about starting small, investing regularly, aiming for steady long-term returns, and giving compounding time to work.

With patience and discipline, what starts as a modest portfolio can quietly grow into something far more meaningful.

The post How to go from zero to $50,000 with ASX shares appeared first on The Motley Fool Australia.

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• The ASX 200 shares I’d be comfortable holding in an SMSF
• Here are the top 10 ASX 200 shares today
• Bell Potter says these ASX 200 stocks are buys with 20%+ upside
• 5 amazing ASX shares that could build serious wealth for investors

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Goodman Group, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price is in focus after its half-year profit climbed 5% to $5.41 billion, and the bank announced an interim fully franked dividend of $2.35 per share.

What did Commonwealth Bank of Australia report?

• Statutory net profit after tax (NPAT): $5,412 million, up 5% from 1H25
• Cash NPAT: $5,445 million, up 6% on the prior year
• Pre-provision profit: $8,131 million, up 5%
• Interim dividend: $2.35 per share, fully franked, up 4%
• Net interest margin: 2.04%, steady on an underlying basis
• Return on equity (ROE): 13.8%, up 10 basis points

What else do investors need to know?

CBA grew its lending and deposit volumes in core businesses, helping offset a squeeze on margins from competition and higher operating expenses, particularly as investments in technology continued. The bank’s credit quality strengthened, with loan impairment expense down to $319 million and home loan arrears falling during the half.

The balance sheet remains robust, with a Common Equity Tier 1 capital ratio at 12.3%—well above regulatory minimums. Deposit funding accounted for 79% of total funding, while liquidity and funding ratios exceeded required levels. The bank also provided over $25 billion in business loans and returned $4.4 billion to shareholders.

What’s next for Commonwealth Bank of Australia?

Looking ahead, the bank notes that economic growth picked up, led by consumer demand and investment in AI and energy infrastructure. However, capacity constraints could keep inflation above target, putting upward pressure on interest rates. Commonwealth Bank plans to keep supporting customers, accelerate its technology modernisation, and bolster capabilities in areas like generative AI and cyber security.

The leadership remains positive on Australia’s economic outlook, with a commitment to balancing customer support, digital innovation, and capital strength to drive long-term value for shareholders and communities.

Commonwealth Bank of Australia share price snapshot

Over the past 12 months, CBA shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post CBA half-year results: profit lifts, dividend grows, tech spend ramps up appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CSL half-year earnings: profit drops but guidance reaffirmed
• SGH delivers strong first-half FY26 earnings with higher dividend
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The SGH Ltd (ASX: SGH) share price is in focus after the company posted a robust half-year FY26 result, with EBIT holding steady at $844 million and NPAT rising 2% to $518 million. Operating cash flow jumped 32% to $1.1 billion, and a 7% higher fully franked interim dividend of 32 cents per share was declared.

What did SGH report?

• Revenue of $5.4 billion, down 2% from 1HY25
• EBIT of $844 million, flat year-on-year, up 22% on 2H FY25
• NPAT of $518 million, up 2% on the prior corresponding period
• EBITDA of $1.1 billion, up 1%
• Operating cash flow of $1.1 billion, up 32%
• Interim fully franked dividend of 32 cents per share, up 7%

What else do investors need to know?

SGH saw EBIT margin expand 30 basis points to 15.6%, mainly driven by Boral and WesTrac performing strongly thanks to operating leverage and cost initiatives. Boral posted a 10% EBID growth, while continued focus on cash generation helped lower the adjusted net debt to EBITDA ratio to 1.9x, giving SGH extra financial flexibility.

Safety remains a top priority, with the company reporting a 36% reduction in Lost Time Injury Frequency Rate and further progress on operational safety across its businesses. The group also refinanced debt, securing longer maturities and reducing funding costs, with over $2.2 billion in liquidity available at the end of December.

What did SGH management say?

Managing Director & CEO Ryan Stokes said:

We are pleased to deliver a strong result for the first half of FY26. It demonstrates the strength and resilience of our diversified industrial businesses. In a dynamic market, we delivered earnings growth in our core Industrial Services segment, expanded our margins, and generated significant growth in operating cash flow.

What’s next for SGH?

SGH heads into the second half of FY26 with solid operational momentum and a balanced outlook across its sectors. The company is sticking with its “SGH Way” operating model, focusing on sales execution, efficiency, and innovation.

Management reiterated guidance for “low to mid single-digit EBIT growth” for FY26, supported by balanced market exposures and ongoing cost control. Investors can expect ongoing investment into key projects and disciplined capital management.

SGH share price snapshot

Over the past 12 months, SGH shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post SGH delivers strong first-half FY26 earnings with higher dividend appeared first on The Motley Fool Australia.

More reading

• James Hardie lifts Q3 sales 30% on AZEK acquisition
• HomeCo Daily Needs REIT posts 1H FY26 FFO growth and reaffirms guidance
• CSL half-year earnings: profit drops but guidance reaffirmed
• CBA half-year results: profit lifts, dividend grows, tech spend ramps up
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The team at Bell Potter has been busy this week assessing options for Aussie investors.

Three ASX shares that have fared well and are being recommended by the broker to its clients are named below.

Here’s why the broker is bullish on these names:

Dexus Convenience Retail REIT (ASX: DXC)

Bell Potter believes that Dexus Convenience Retail REIT offers a compelling mix of defensive income and valuation support.

The broker highlights DXC’s high-quality portfolio of service stations and convenience retail assets, leased to long-term, non-discretionary tenants. This includes tenants such as 7-Eleven, Ampol (ASX: ALD), and Chevron. This provides stable cash flows and resilience through the cycle.

Importantly, Bell Potter sees scope for valuation upside as capitalisation rates stabilise. It said:

Petrol stations are typically a low volatility asset class given long term leases with strong covenants, however higher debt base rates are likely to see cap rate expansion ahead. Asset valuations however at a 6.3% portfolio cap rate do not look demanding to us vs. industry transactions and peer REITs.

Bell Potter has a buy rating and price target of $3.25 on Dexus Convenience Retail REIT’s shares. Based on its current share price of $2.82, this implies upside of more than 15%. That’s before factoring in a forecast dividend yield of around 7.5%.

Orica Ltd (ASX: ORI)

Orica is an ASX share to buy this week according to Bell Potter.

The broker points to strong structural tailwinds driven by increased production of iron ore, copper, and gold, which should underpin long-term demand for blasting services. It notes that Orica’s scale, global footprint, and pricing discipline position it well to benefit from this trend. The broker said:

We expect EBIT growth momentum to be sustained in the short-to-medium term underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth is expected to be supported by further premium product uptake, robust facility performance across AN and sodium cyanide supply networks and commercial discipline.

Bell Potter has put a buy rating and $28.50 price target on Orica shares. Based on its current share price of $25.38, this implies potential upside of 12% for investors.

Sonic Healthcare Ltd (ASX: SHL)

Finally, Bell Potter believes Sonic Healthcare offers an appealing combination of income and share price upside.

The broker expects Sonic to return to double-digit earnings growth in FY 2026, driven largely by acquisitions, particularly in pathology, and steady demand across its diagnostics businesses. While cost control and execution remain key risks, Bell Potter believes much of this is already reflected in the share price. It said:

While SHL has outperformed the XHJ, it has materially underperformed the broader market, reflecting concerns with growth and cost control. If the new CEO can impress investors with financial performance and strategy, we believe upside remains in SHL.

Bell Potter has a buy rating and $28.50 price target on Sonic Healthcare’s shares. Based on its current share price of $21.82, this suggests that upside of 30% is possible. In addition, the broker is forecasting a dividend yield of approximately 5% in FY 2026.

The post Broker names 3 ASX shares to buy this week appeared first on The Motley Fool Australia.

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

As per usual earnings season results are causing big price swings for ASX shares. 

It can be difficult for investors to not overreact both positively and negatively depending on the earnings results posted by a company. 

However these swings can sometimes be overcorrections, leading to great entry points for certain ASX shares. 

Here is one ASX stock that was heavily sold off yesterday that could now be attractively valued. 

AUB Group Ltd (ASX: AUB)

AUB Group is the second-largest general insurance broker network in Australia and New Zealand.

This ASX 200 financials stock has experienced some significant volatility over the last 12 months and its start to 2026 has been difficult. 

AUB Group shares fell more than 6% yesterday, taking its year to date loss to 15%. 

It is now trading at 52-week lows.

Failed takeover 

Investors have been exiting their positions in this insurance company following a failed takeover deal late last year. 

The deal would have seen indicative offers up to A$45 per share – well above the prevailing share price at the time. 

Initially, this pushed the stock sharply higher. 

However, after due diligence negotiations, the buyers pulled out and terminated the takeover talks at the end of 2025, shocking markets and removing the potential takeover premium. 

The share price plunged sharply after that announcement.

Analysis via The Bull said this result was a disappointment for shareholders. 

AUB’s board had indicated the consortium’s offer appropriately valued the company, making the withdrawal a significant disappointment for shareholders who had anticipated a premium exit.

The subsequent announcement of the Prestige acquisition suggests management has pivoted quickly to pursue organic growth strategies rather than waiting for another takeover approach.

January acquisition

Late last month, AUB Group completed a $400 million institutional placement to help fund its acquisition of UK insurer Prestige and support growth. 

The placement was priced below the then-current share price (at about $29.40), diluting existing holders and signalling a reduction in valuation expectations.

Most of this year’s share price fall has come after this announcement. 

The $400 million raise represents a substantial capital commitment for the company. According to management, it will now focus on integrating Prestige while delivering on promised synergies.

Buy low opportunity?

These ASX shares now sit at roughly $26.00 per share after yesterday’s crash. 

Have they now hit rock bottom?

Based on the average rating of 8 analysts, these ASX shares are now undervalued. 

TradingView has an average 12 month price target of $37.63, with analysts one year targets ranging from $35.00 to $42.00. 

This average target is 45% higher than yesterday’s closing price. 

The post This ASX 200 share crashed 6% yesterday – time to buy the dip? appeared first on The Motley Fool Australia.

More reading

• Why AUB, Aurelia Metals, DroneShield, and Elevra Lithium shares are dropping today
• AUB Group completes $400m institutional placement to fund Prestige acquisition
• Big UK deal, big capital raise. Why this ASX stock is in a trading halt

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 recommended Aub 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) gave back its intraday gains to record a small decline. The benchmark index dropped slightly to 8,867.4 points.

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

ASX 200 to rise

The Australian share market looks set to rise on Wednesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.35% higher this morning. In late trade in the United States, the Dow Jones is up 0.25%, but the S&P 500 is down 0.1% and the Nasdaq is 0.25% lower.

Oil prices fall

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session on Wednesday after oil prices eased overnight. According to Bloomberg, the WTI crude oil price is down 0.35% to US$64.14 a barrel and the Brent crude oil price is down 0.1% to US$68.96 a barrel. Traders appear to be waiting to see what happens next with the US and Iran tensions.

CSL shares on watch

CSL Ltd (ASX: CSL) shares will be on watch for two reasons on Wednesday. The first is because the biotherapeutics giant is scheduled to release its eagerly awaited half-year results for FY 2026. The second reason is the shock announcement of the exit of its CEO, Dr Paul McKenzie, during the close of play on Tuesday. CSL’s shares were heading for a positive finish before crashing 5% into the red during the closing auction on the news. Dr McKenzie is stepping down with immediate effect. CSL’s chair, Dr Brian McNamee AO, said: “Paul and the Board have determined that now is the right time for new leadership to continue to drive CSL’s strategic transformation and performance.”

Gold price falls

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a relatively poor session on Wednesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.65% to US$5,048 per ounce. Traders were taking profit ahead of the release of US jobs and inflation data.

Buy WiseTech shares

WiseTech Global Ltd (ASX: WTC) shares are undervalued according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating on the logistics solutions company’s shares with a trimmed price target of $87.50 (from $100.00). It said: “WiseTech is currently trading on an FY27 EV/EBITDA multiple of c.18x which is the lowest forward multiple in its listed history of almost ten years.” It adds that “the recent sell-off in the share price and the reduction in the forward EV/EBITDA multiple is unjustified and represents a key buying opportunity.”

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

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Motley Fool contributor James Mickleboro has positions in CSL and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.