Tag: Stock pick

I think June could be a good month to look again at high-quality ASX 200 shares.

The three blue-chip shares in this article are very different businesses, but I think each has the scale, market position, and long-term opportunity to be worth buying this month.

Here’s why I like them.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is one ASX 200 share I think is a great buy and hold option.

It is a large pharmacy, health, beauty, and wellness business with the Chemist Warehouse brand at its centre. That gives Sigma exposure to categories that customers come back to regularly, from medicines and prescriptions to vitamins, skincare, personal care, and everyday health products.

I like that because it is not just a one-off retail story.

A strong pharmacy retail network can benefit from repeat visits, trusted brands, scale buying, customer data, and a wide product range. In a cost-conscious environment, Chemist Warehouse also has a clear value proposition that can appeal to shoppers who still want health and wellness products but are watching their budgets.

There are still things to watch. The business needs to keep executing well across retail, distribution, stores, systems, and supplier relationships. But I think Sigma now has a much larger platform to build from than it did a few years ago.

For investors looking at June, I think this is one of the more interesting blue-chip growth stories on the ASX.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another ASX 200 share I would be happy to buy in June.

The reason I like this business is not just the individual brands it owns. It is the way the group has built a culture around returns, discipline, and constant improvement.

Wesfarmers has a long history of buying, building, improving, and sometimes exiting businesses when the numbers no longer make sense. That gives it a different feel to a normal retailer. It is more like a long-term owner of consumer and industrial assets, with management constantly looking for ways to lift returns.

I also think the company’s customer reach is becoming more valuable. Across its retail brands, Wesfarmers has a huge amount of customer interaction, store traffic, online engagement, and loyalty data. Over time, that could help the group make better decisions on pricing, product ranges, inventory, digital investment, and customer retention.

For me, it is a business that can keep finding ways to get a little better each year. That is exactly the type of blue-chip ASX 200 share I would want to buy in June.

Qantas Airways Ltd (ASX: QAN)

Qantas is the third ASX 200 blue-chip share I would buy in June.

Airlines can be difficult investments. Fuel prices, competition, labour costs, aircraft delays, economic conditions, and travel demand can all affect earnings.

But I think Qantas has a stronger position than many investors give it credit for.

The group has two powerful airline brands in Qantas and Jetstar. That allows it to serve different parts of the travel market, from premium and corporate passengers to more value-focused leisure travellers.

I also think the loyalty business remains a major asset. Frequent Flyer points, partnerships, financial products, retail offers, and customer engagement give Qantas a valuable earnings stream that is not only tied to selling seats.

Fleet renewal could also help over time. New aircraft can improve efficiency, network flexibility, and customer experience, which may support the business beyond the next travel cycle.

There are risks to consider, and I would never treat an airline as a defensive share. But with Qantas trading on a reasonable valuation and dividends returning, I think the stock offers a compelling mix of value, income potential, and long-term brand strength.

Foolish takeaway

I think the best blue-chip ASX 200 shares are the ones that can keep finding ways to become more valuable.

That does not always mean smooth earnings or a cheap-looking valuation. Sometimes it means owning businesses with scale, strong brands, customer loyalty, and the ability to adapt as conditions change.

That is what interests me about these three ASX 200 shares. They each have a different route to growth, but all three have the kind of staying power I would want when buying in June.

The post My 3 best ASX 200 blue-chip shares to buy in June appeared first on The Motley Fool Australia.

More reading

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• 4 ASX 200 shares rated a strong buy and with upsides of up to 51%
• How to get wealthy investing $300 a month into ASX shares
• Buy, hold, sell: Wesfarmers, Saluda Medical, CBA shares
• 2 ASX 200 shares I think could beat the market over 10 years

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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 Tasmea Ltd (ASX: TEA) share price has continued its powerful run.

Just last week, this ASX small cap was already catching attention after rising more than 120% over the prior 12 months.

Since then, Tasmea shares have surged another 20% after the engineering and maintenance services company announced a major acquisition that could materially expand its growth opportunity.

Tasmea is buying Victoria-based Maxim Group in a deal worth up to $254 million.

The acquisition is significant because it gives Tasmea a clear entry into one of the hottest infrastructure markets in Australia right now: data centres.

So, what has investors excited?

Why Tasmea shares are rising

The company provides specialist trade services to essential Australian industries, including mining, oil and gas, infrastructure, defence, power, water, renewables, and telecommunications.

That work includes maintenance, shutdowns, emergency breakdown services, brownfield upgrades, and labour solutions.

In simple terms, Tasmea helps keep important physical assets operating.

That may not sound glamorous. However, the share market often becomes interested when a practical business combines recurring demand, disciplined execution, and strong earnings growth.

The Maxim acquisition could add another important ingredient: exposure to structural demand from artificial intelligence, cloud computing, battery storage, and electrification.

A move into data centres

Maxim Group is an electrical contractor based in Victoria. It specialises in electrical work for large digital infrastructure assets, including wiring and cabling.

Maxim has around 600 workers and is currently working on 30 projects.

Approximately 55% of Maxim’s work reportedly comes from data centres, while the remaining 45% comes from industrial-scale battery storage projects and rail electrification.

That is an attractive mix.

Data centres are benefiting from rising demand for artificial intelligence processing, cloud computing, and digital storage. Meanwhile, battery storage and rail electrification are linked to the broader energy transition and infrastructure spending.

Tasmea Managing Director Stephen Young reportedly described data centres as the hottest market in Australia. He also said Maxim had a seven-year pipeline of work worth around $1.3 billion.

That long pipeline appears to be one reason investors have responded so strongly.

Why this deal could matter

Tasmea was already growing quickly before this acquisition.

In FY25, the company reported statutory revenue growth of 37% to $547.9 million. Statutory operating earnings (EBIT) rose 60% to $74.4 million, while net profit after tax increased 74% to $53.1 million.

Importantly, earnings per share (EPS) increased 53% to 23.2 cents.

That matters because it suggests shareholders were not just seeing a bigger company, but a more profitable one on a per share basis.

The company also completed the acquisition of WorkPac Group in December 2025. That deal expanded Tasmea’s workforce solutions capabilities and strengthened its exposure to skilled labour markets.

The Maxim acquisition now appears to give Tasmea another meaningful platform for growth.

Tasmea already operates across multiple separate businesses. If management can continue acquiring quality operators, integrating them carefully, and supporting growth across the group, the company may have a much larger opportunity than the market appreciated a year ago.

What are the risks?

Tasmea shares have already had a very strong run. When a share price rises quickly, expectations can rise just as fast.

That means any disappointment around earnings, margins, integration, or future guidance could lead to volatility.

Acquisitions also require careful execution. Tasmea needs Maxim to retain key staff, continue winning work, maintain customer relationships, and deliver on its pipeline.

The final acquisition price also includes a three-year earn-out of up to $70 million, meaning part of the total consideration depends on future performance.

There is also a broader point to consider. Data centres may be a booming market, but a hot sector does not automatically guarantee strong shareholder returns.

Foolish Takeaway

Tasmea’s latest share price surge shows how quickly the market can re-rate an ASX small-to-mid cap when the investment story evolves.

Only recently, Tasmea looked like a fast-growing specialist services business with strong earnings momentum.

Following the Maxim acquisition, it now has more direct exposure to data centres, battery storage, and electrification.

That does not remove the risks. After such a sharp share price rise, investors should be careful not to ignore valuation or execution challenges.

However, this acquisition could prove to be a significant step in Tasmea’s long-term growth strategy.

The post Tasmea share price rockets as it enters data centre race appeared first on The Motley Fool Australia.

More reading

• Could this surging ASX small cap still be hiding in plain sight?
• Are these ASX shares a buy, hold or sell after rocketing to record highs last week?

Motley Fool contributor Leigh Gant has positions in Tasmea. 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

CSL Ltd (ASX: CSL) and ResMed Inc (ASX: RMD) shares have both fallen to new 52-week lows on Tuesday.

When a share is making new lows, sentiment is often weak, investors are nervous, and the market is focused on what could still go wrong. That is not usually a comfortable time to buy.

But I think both healthcare leaders remain top buy and hold picks for patient investors.

The key is having the right time horizon. Buying at lows does not mean the share price will rebound quickly. But it does mean investors may be getting a better starting point in high-quality businesses that the market has stopped trusting for now.

CSL shares

CSL has had a difficult period. The market’s confidence has been damaged by downgrades, margin pressure, weaker visibility, and concerns about parts of the plasma business. This is no longer the simple ASX healthcare compounder story that investors became used to over many years.

I think that is important to acknowledge. 

A recovery could take time. Investors may need to see better execution, clearer earnings momentum, and more confidence around margins before sentiment turns in a meaningful way.

But I do not think CSL’s long-term investment case has disappeared.

The company still has global leadership positions across plasma therapies, vaccines, and specialist medicines. Its products are tied to real healthcare needs, not short-term consumer trends. Demand for immunoglobulins and other critical therapies should remain supported over time, even if the business is working through operational and commercial challenges today.

This is why I think buying near 52-week lows could be attractive. The market is no longer pricing CSL as though everything is easy. Expectations have been reset, and that can create a better setup for investors willing to wait.

ResMed shares

ResMed has also been sold down heavily, but I think the business remains very strong.

The company is a global leader in sleep health, with a business model that combines devices, masks, accessories, software, and connected care.

I like that mix because the need is ongoing. Patients do not simply buy a device and disappear. Treatment often involves replacement masks, support, data, monitoring, and long-term therapy management.

The sleep apnoea market also remains underpenetrated. Many people are still undiagnosed, and awareness of the condition can keep improving over time.

There has been plenty of debate about risks, including drug competition and newer treatment approaches. But I still think ResMed has a powerful position in a large global market.

GLP-1 weight loss drugs, in particular, may not be the negative that investors first feared. They may not be for everyone and could also encourage more people to engage with their health, seek diagnosis, and understand the impact of sleep apnoea.

That does not mean the share price will recover overnight. But for long-term investors, I think the current weakness could be a chance to buy a world-class healthcare business at a more attractive price.

Foolish takeaway

Buying shares at 52-week lows can feel uncomfortable because the market is usually telling a negative story.

But that can be where the opportunity begins.

I do not think CSL or ResMed will suddenly regain investor confidence overnight. Both need patience, and both could remain volatile while the market waits for clearer evidence.

Even so, I think these are the kinds of businesses worth studying when sentiment is poor. They have strong market positions, global healthcare exposure, and long-term demand drivers that should still matter years from now.

The post Are CSL and ResMed shares buys at 52-week lows? appeared first on The Motley Fool Australia.

More reading

• WiseTech, Cochlear, CSL shares: Can these beaten down stocks rebound in 2026?
• Is June set to be the month of the ASX healthcare rebound?
• Top 10 ASX shares bought and sold by investors in May
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares

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 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.

Artificial intelligence giant Anthropic has lodged its prospectus with the market operator in the US, in what is likely to be one of the largest initial public offerings this year.

Investor waiting game

There are few public details at this stage, with the company lodging its prospectus “confidentially” overnight Australian time.

As the company said:

Today, Anthropic, PBC confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission for a proposed initial public offering of our common stock. This gives us the option to go public after the SEC completes its review. The proposed initial public offering will depend on market conditions and other factors. The number of shares to be offered and the price have not yet been set. 

Anthropic is the company behind the Claude large language model, which is used for applications such as coding and design.

While there are no details yet on how much money the company will raise in the IPO, the value of Anthropic was recently set by a new capital raise on May 28.

The company at that stage raised US$65 billion in a Series H raise, which valued the company at US$965 billion.

The company also gave an update on its revenue, saying:

Global enterprises across industries are deploying Claude in their core operations, and a growing number of people around the world use it for their everyday work. Since our Series G in February, adoption has continued to grow across global enterprise customers, and our run-rate revenue crossed $47 billion earlier this month. This latest funding is expected to advance our safety and interpretability research, expand compute to meet growing demand for Claude, and scale the products and partnerships our customers rely on.

One of the investors in the new round was memory manufacturer Micron, which recently passed a US$1 trillion valuation on the back of strong demand for its products.

In the footsteps of SpaceX

Anthropic’s IPO news follows Elon Musk’s SpaceX (NASDAQ: SPCX) recently lodging its own prospectus, a move that could value the company at up to US$2 trillion.

SpaceX also has an AI division, alongside its space and connectivity divisions, the latter of which is the only business unit currently turning a profit.

The SpaceX prospectus is filled with lofty ambitions, saying, “Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars”.

Despite SpaceX’s ambitious goals, it’s currently still burning money, making a US$2.59 billion loss on revenue of US$18.7 billion in 2025.

The post The Anthropic IPO: What we know so far appeared first on The Motley Fool Australia.

More reading

• Tasmea share price rockets as it enters data centre race
• Are CSL and ResMed shares buys at 52-week lows?
• WiseTech, Cochlear, CSL shares: Can these beaten down stocks rebound in 2026?
• Northern Star shares just rocketed 12%. Is a takeover battle brewing?
• Wesfarmers shares: Buy, hold or sell?

Motley Fool contributor Cameron England 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 Micron Technology. 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.

WiseTech Global Ltd (ASX: WTC), Cochlear Ltd (ASX: COH), and CSL Ltd (ASX: CSL) shares have been through the wringer over the past 12 months.

At the time of writing on Tuesday, the three companies are the worst-performing shares on the S&P/ASX 200 Index (ASX: XJO) for the past 12 months.

The question is, can they rebound this year? Or is there more downside ahead?

What to expect from WiseTech shares in 2026

WiseTech shares are bucking the trend today and have climbed around 4% higher to $40.71 at the time of writing. 

For context, the ASX 200 Index is down around 1%.

The latest uptick is good news for investors but it barely makes a dent in the volume of losses WiseTech shares have shed over the past 12 months.

After the tech stock suffered a steep and sustained share price crash, WiseTech shares are now down around 40% for the year to date and around 61% lower than 12 months ago. 

The shares were driven lower by the tech-sector wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

But I think the company shows huge potential for a rebound.

The company’s CargoWise platform is deeply embedded in the global logistics industry. That means it’s difficult to replace and gives WiseTech a strong competitive advantage in the market.

CEO Zubin Appoo also recently commented that AI is strengthening the company’s advantage in the market, unlocking efficiency gains and adding value to customers.

I think a proven stronger FY26 result in August will create a turnaround in investor sentiment. If the company’s financials meet expectations then I think we’ll see investors quickly snap up the shares.

Market Index data shows brokers have a strong buy consensus on WiseTech shares. They tip a potential 87% upside over the next 12 months to an average $76.43 target price, at the time of writing.

What to expect from Cochlear shares in 2026

Cochlear shares have fallen further into the red on Tuesday, down around 3% to $98.08 at the time of writing. The decline means the shares are now trading 62% lower for the year-to-date and are 64% lower than 12 months ago.

Cochlear shares crashed in April after the ASX healthcare company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand. The update was one of the worst earnings downgrades in the company’s listed history. 

The downgrade also came off the back of a softer-than-expected half-year result in February this year. 

Meanwhile, Cochlear has also endured a sector-wide rotation away from ASX healthcare shares this year, as global volatility, a weaker US dollar, higher US tariffs, and increased labour costs prompted investors to sell up their holdings. 

But after such a sharp sell off, I think the shares are now well below fair value. 

Despite the earnings downgrade, Cochlear remains a strong, globally dominant business and its long-term outlook is intact. 

While the company’s short-term earnings have changed, forecasts suggest that there will see a recovery over the next one or two years. 

It’s not clear whether we’ll see any upside by the end of 2026, but brokers are confident the shares can rebound in the next 12 months.

They rate the shares as a buy and tip a 102% upside to $196.95.

What to expect from CSL shares in 2026

CSL shares are also trading in the red again on Tuesday, down around 2% to $92.50 at the time of writing. The stock is now down 46% for the year-to-date and around 63% lower than 12 months ago.

CSL shares suffered their biggest-ever one-day crash in early-May after the company lowered its FY26 outlook after interim CEO Gordon Naylor completed his 90-day review.

The company cited weakness in China albumin pricing, inventory normalisation in the US immunoglobulin market, and several operational factors weighing on profitability.

This downgrade reinforced investor concerns that earnings momentum is still under pressure. 

CSL shares have also been affected by the broad market rotation away from healthcare-related stocks this year. 

The good news is that CSL has said its growth initiatives are working. But the company also said that the financial benefits will take longer than previously expected.

I think there will be a rebound eventually, but not in 2026. In fact, I’m expecting more downside ahead before the shares start to rebound.

While the majority of brokers rate CSL shares as a hold, the stock could rise as much as 66% based on the average price target of $153.62.

The post WiseTech, Cochlear, CSL shares: Can these beaten down stocks rebound in 2026? appeared first on The Motley Fool Australia.

More reading

• Are CSL and ResMed shares buys at 52-week lows?
• Short sellers are targeting these 3 ASX shares this week. Are they right?
• Top 10 ASX shares bought and sold by investors in May
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff

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

A tough year for Northern Star Resources Ltd (ASX: NST) has taken a sudden turn on Tuesday.

At the time of writing, the Northern Star share price is up 12.21% to $20.77.

It is a huge one-day move for Australia’s largest listed gold miner, especially given how much pressure the stock has been under.

Even after today’s jump, Northern Star shares are still down around 22% in 2026.

The fall has come as gold prices have cooled from recent highs and investors have become more frustrated with Northern Star’s operational performance.

So, what has sparked today’s sudden buying?

Activist pressure builds

According to reports, Elliott Investment Management has built a stake worth more than $1 billion in Northern Star and is pushing for a strategic review of the company.

That review could include a potential sale, as well as a closer look at the gold miner’s operational performance.

Elliott has reportedly criticised Northern Star’s recent record, pointing to operational missteps, cost overruns, and inconsistent strategic direction.

It also wants the company to review its options while searching for a new chief executive.

The pressure comes at a sensitive time for the miner.

Northern Star recently announced that managing director Stuart Tonkin will step down during the first quarter of FY27.

He will remain in the role through the current transition period, including the commissioning phase of the KCGM Fimiston Mill Expansion.

That project has been closely watched by investors after recent setbacks and downgrades. It also sits near the centre of the frustration around Northern Star’s recent performance.

Why the market is taking this seriously

The size of the share price reaction suggests investors are taking Elliott’s involvement very seriously.

Northern Star has already tried to address some of the market’s concerns. The company launched an on-market share buyback of up to $500 million, which is expected to run over 12 months.

The buyback gives the company a way to return cash to shareholders and show confidence in its own value. But Elliott appears to be pushing for a much wider review.

The investor has reportedly argued that Northern Star has not fully benefited from a strong gold price backdrop. Spot gold is currently trading around US$4,480 an ounce, up 33% over the past year.

Foolish bottom line

Today’s jump shows investors are willing to give Northern Star another look if there’s pressure for change.

The company still has major assets, including the Kalgoorlie Super Pit, but the share price weakness shows investors want better returns from that asset base.

Elliott’s involvement doesn’t guarantee a sale or a quick fix. But it does raise the pressure on the board at a time when Northern Star is already searching for a new chief executive.

The post Northern Star shares just rocketed 12%. Is a takeover battle brewing? appeared first on The Motley Fool Australia.

More reading

• Buying ASX 200 gold stocks? Here’s how Evolution Mining, Newmont and Northern Star shares stacked up in May
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• Why 4DMedical, Elsight, Judo Capital, and Northern Star shares are racing higher today
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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.

Wesfarmers Ltd (ASX: WES) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $79.75. During the Tuesday lunch hour, shares are changing hands for $78.67 apiece, down 1.4%.

For some context, the ASX 200 is down 0.6% at this same time.

Longer term, Wesfarmers shares are down 5.6% over the past year, underperforming the 3.1% 12-month gains posted by the benchmark index.

Although that underperformance will have been somewhat eased by Wesfarmers fully franked dividend payouts over this time. The ASX 200 stock trades on a 2.7% fully franked trailing dividend yield.

And there were some promising growth signs in the first half of the 2026 financial year, with Wesfarmers reporting a 9.3% year-on-year increase in net profit after tax (NPAT) to $1.6 billion.

So…

Should I buy Wesfarmers shares today?

Red Leaf Securities’ John Athanasiou recently ran his slide rule over the $89 billion ASX 200 stock (courtesy of The Bull).

“The industrial conglomerate’s performance is supported by a diversified portfolio across retail, industrials and chemicals,” he noted.

“The group’s strength lies in disciplined capital allocation and its ability to generate steady returns across cycles,” Athanasiou added.

But Athanasiou sounded a cautious note on the further short-term growth prospects for Wesfarmers shares.

“However, in our view, near term growth is likely to remain subdued as consumer spending normalises and retail conditions become more selective,” he said.

Summarising his hold recommendation on the ASX 200 stock, Athanasiou concluded:

Hardware giant Bunnings continues to provide earnings stability. The stock’s valuation appropriately reflects its quality profile, leaving limited re-rating potential in the absence of a stronger macro tailwind.

Wesfarmers remains a reliable long-term holding, but it’s best viewed as a steady compounder rather than a growth catalyst.

A more bearish view on the $89 billion ASX 200 conglomerate

Medallion Financial Group’s Philippe Bui has a more bearish take on the outlook for Wesfarmers stock.

“Wesfarmers is a diversified industrial conglomerate,” he said. “Major retail brands include Bunnings, Kmart, Target and Officeworks.”

Bui noted, “Wesfarmers is a high-quality business, but the outlook is softening, in our view.”

As for his sell recommendation on Wesfarmers shares, Bui said:

A deteriorating consumer environment and sticky inflation are pressuring forward earnings, while Amazon’s growing penetration across core retail categories is an intensifying competitive threat that shows no signs of abating.

The post Wesfarmers shares: Buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Wesfarmers, Saluda Medical, CBA shares
• 2 ASX 200 shares I think could beat the market over 10 years
• Buy, hold, sell: Aristocrat Leisure, Brambles, Wesfarmers shares
• Why did ASX 200 retail shares lead the market last week?
• Down 17%: Why I’d buy and hold Wesfarmers shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Buying shares at 52-week highs can feel unnerving.

It feels much easier emotionally to buy after a pullback. But I do not think a rising share price automatically means investors have missed the boat.

Sometimes a share is trading strongly because the investment case is improving.

That is how I see the ASX shares in this article. All three have reached 52-week highs or better on Tuesday, but I would still be happy to buy and hold them.

BHP Group Ltd (ASX: BHP)

BHP has had a powerful run, and I can understand why some investors may hesitate after such strength.

Resource shares can be cyclical, and buying after a rally is never without risk. Iron ore prices, China’s economy, costs, and commodity sentiment can all move the share price around quickly.

But I think BHP’s long-term story remains attractive, particularly because of copper.

Copper is becoming increasingly important to electricity networks, data centres, renewable energy, electric vehicles, industrial activity, and broader electrification. At the same time, new copper supply is difficult to bring on quickly.

That is a useful setup for a company with BHP’s scale, balance sheet, and existing copper exposure.

Iron ore still gives the group a powerful cash flow base, while potash offers another long-term option through Jansen. I like that mix. BHP is not a pure copper stock, but it gives investors exposure to copper through a diversified mining giant with world-class assets.

The valuation may not be cheap after the recent rise, but I would still buy BHP shares as a long-term resources holding.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is a much higher-risk ASX share, but I think the opportunity is compelling.

The company is focused on defence technology, with key areas including counter-drone systems, remote weapon systems, high-energy laser weapons, and space control.

I like the exposure because modern defence needs are changing quickly. Drones are now a major feature of military conflict, border protection, critical infrastructure security, and public safety planning. That creates demand for systems that can detect, track, and respond to threats.

EOS has also completed its acquisition of MARSS, which adds command-and-control capability through the NiDAR system and broadens the group’s counter-drone offering.

That could make the business more valuable to customers looking for a more complete solution, rather than a narrow product set.

The company’s recent AGM presentation highlighted a large illustrative order book and strong customer interest across counter-drone and space control.

Investors still need to watch execution, contract timing, and cash flow, but I think EOS now has a stronger platform to chase a large defence technology opportunity.

Dicker Data Ltd (ASX: DDR)

Dicker Data is another ASX share I would buy despite its recent strength.

The technology distributor is not always viewed as an exciting growth stock, but I think it has a very useful position in the Australian and New Zealand technology market.

Dicker Data works with reseller partners and distributes hardware, software, cloud, and infrastructure products from major global vendors. That puts it close to ongoing technology spending across businesses, government, and enterprise customers.

I also like that the business is exposed to several steady technology trends at once. These include cloud adoption, software subscriptions, infrastructure upgrades, cybersecurity needs, AI-related spending, and the continuing PC refresh cycle.

Dicker Data will still be affected by margins, demand cycles, working capital, and vendor relationships. But I think its long operating history, partner network, and broad product exposure make it a quality technology share.

Foolish takeaway

A 52-week high should not automatically scare investors away.

The more important question is whether the business can keep improving over the next five or 10 years. In these three cases, I think the answer is yes.

What matters to me is whether the strength in these share prices is backed by real business momentum. In each case, I think there are long-term drivers that could continue to support growth, even if the ride becomes bumpier from here.

None are perfect, but I think each has enough long-term potential to justify buying, even after a strong run.

The post 3 top ASX shares at 52-week highs I’d still buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has positions in and has recommended Dicker Data. 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.

Like many travel company shares, Virgin Australia Holdings Ltd (ASX: VGN) shares have been under pressure since the conflict in the Middle East broke out in late February.

But the downwards pressure on the company’s share price has created a buying opportunity, according to the team at RBC Capital Markets, which has just initiated coverage of the company with an outperform rating.

What’s the company saying?

For some insight into how Virgin is faring, let’s check in on the company’s last update to the market.

Back in mid-April, the company said there had been significant fuel price volatility, but that it was well-prepared.

As the company said:

In FY26 the Group continues to experience strong customer demand with higher fuel costs largely mitigated through effective fuel hedging and recent airfare and capacity adjustments. This has resulted in Virgin Australia’s FY26 financial guidance remaining unchanged with 2HFY26 underlying EBIT and underlying EBIT margin expected to be higher than 2HFY25.  

Virgin said fuel was one of its highest costs, representing 21% of total operating expenses.

The company added further clarity on its hedging program:

Virgin Australia operates a fuel hedging program to manage the risks from fuel price volatility which includes hedging both Brent crude oil and refining margins when economically viable. The price of jet fuel has been extremely volatile and has more than doubled since the end of February 2026 which impacts fuel costs for the June 2026 quarter. Virgin Australia’s policy is to operate hedging with higher volumes in the short term to mitigate this price volatility, with other operational levers including fare and capacity adjustments available to be implemented over time. For the remainder of 2HFY26, the Group is hedged 92% for Brent crude oil and 71% for refining margins. Therefore, the exposure in FY26 is only the unhedged portion of both Brent crude oil and refining margins. This is expected to result in an increase of fuel costs for 2HFY26 of approximately $30-40m2 compared to previous expectations.

Shares looking like good value

The RBC team said in their research note to clients this week that they believed Virgin and Qantas Airways Ltd (ASX: QAN) would remain focused on internal improvements, “and therefore limit market share chasing activities that could or would instigate another capacity war”.

The RBC team said Virgin’s transformation program could deliver significant earnings expansion through FY25 to FY28, and given this outlook, the company’s shares were undervalued at the current share price.

RBC said:

With a solid earnings growth outlook and trading at a discount to its peers we believe VGN is attractive at current levels. Our 12-month rounded Price Target of $3.50 implies a ~27% return, so we initiate with an Outperform rating. However, we add a Speculative Risk qualifier to reflect VGN’s: (i) limited pricing power, (ii) low earnings diversification, (iii) high operating leverage, and (iv) limited equity free-float, leaving investors more exposed if its market conditions deteriorate.   

Virgin Australia shares are currently trading at $2.64, implying a 32.6% return if RBC’s price target is met. The company is valued at $2.15 billion.

The post How high could Virgin Australia shares fly? RBC Capital Markets weighs in appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

S&P/ASX 200 Index (ASX: XJO) gold stocks like Evolution Mining Ltd (ASX: EVN), Newmont Corp (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) shares put in a mixed performance in May.

Over the month just past, the ASX 200 gained 0.8%.

Evolution Mining shares outpaced those gains, closing at $12.14 apiece on 29 May, up 2% for the month.

Newmont shares just trailed the benchmark index, gaining 0.6% in May to close the month trading for $151.27 each.

Northern Star shares were the laggards of the pack. Northern Star shares slumped 10.4% in May, finishing the month at $18.81.

All of the ASX 200 gold stocks faced some modest headwinds, with the gold price declining 1.6% from US$4,614 per ounce on 1 May to US$4,540 on 29 May, the last trading day of the month.

Still, at the close of the month, the gold price remained up more than 32% year on year.

Why did Northern Star shares underperform in May?

Northern Star shares have been under pressure since notching an all-time high of $31.73 in early March.

Among other issues, investors have been concerned over recent production downgrades along with rising cost forecasts.

The ASX 200 gold stock dropped another 2.1% on 21 May. That came after the miner announced that its managing director, Stuart Tonkin, will step down from his position in Q1 FY 2027, after 13 years with the company.

Turning our attention to today, you might have noticed that Northern Star shares are surging 10.7% to $20.49 apiece.

That big leg-up comes amid news (courtesy of The Australian Financial Review) that US hedge fund juggernaut Elliott Management is calling for a major overhaul at the beleaguered Aussie gold giant.

Elliot Management said it now holds more than $1 billion worth of Northern Star shares.

Elliot Management stated:

The market views Northern Star as a poor operator with a pattern of operational missteps and repeated failures to execute capital projects on time and on budget…

Northern Star owes it to its shareholders to promptly explore all strategic alternatives, including a sale of the company. We believe there would be significant strategic interest in Northern Star.

Stay tuned!

How did these other top ASX 200 gold stocks perform in May?

Moving away from the biggest three, here’s how these other leading ASX 200 gold stocks stacked up in May amid the 1.6% retrace in the gold price:

• Ramelius Resources Ltd (ASX: RMS) shares fell 4.2%
• Bellevue Gold Ltd (ASX: BGL) shares gained 2.0%
• Genesis Minerals Ltd (ASX: GMD) shares gained 0.9%
• Perseus Mining Ltd (ASX: PRU) shares fell 4.8%
• Vault Minerals Ltd (ASX: VAU) shares fell 6.5%
• Westgold Resources Ltd (ASX: WGX) shares fell 4.1%
• Ora Banda Mining Ltd (ASX: OBM) shares gained 3.8%
• Greatland Resources Ltd (ASX: GGP) shares gained 2.1%

The post Buying ASX 200 gold stocks? Here’s how Evolution Mining, Newmont and Northern Star shares stacked up in May appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.