Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is little changed on Tuesday.

After climbing as high as 8,697 points shortly after the open, the benchmark has since slipped back.

The ASX 200 is currently up just 0.04% at around 8,682 points, leaving it pretty much where it started the day.

It’s also a mixed session across the market, with 87 shares higher, 101 lower and 12 unchanged.

There are some big moves among individual shares, but investors also have one eye on this afternoon’s interest rate decision.

That could make things a lot more interesting later today.

So, let’s take a look at what’s happening.

Tech shares steal the show

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is one of the strongest areas of the market today, up 2.41%.

Megaport Ltd (ASX: MP1) shares are 12% higher after announcing three new AI infrastructure contracts worth a combined $978.6 million.

The company also upgraded its FY27 revenue guidance to between $720 million and $810 million.

Codan Ltd (ASX: CDA) shares have also jumped around 18% to $60.84 after upgrading its earnings guidance.

Elsewhere, South32 Ltd (ASX: S32) shares are up 3.18% to $5.04, while QBE Insurance Group Ltd (ASX: QBE) has climbed 1.43% to $23.44.

However, those gains are being offset by weakness elsewhere in the market.

Banks weigh on the market

The major banks aren’t offering much support today, with all four trading lower.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.67% to $151.45, and National Australia Bank Ltd (ASX: NAB) has slipped 0.61% to $41.70.

Westpac Banking Corp (ASX: WBC) shares are down 0.50% to $38.15, with ANZ Group Holdings Ltd (ASX: ANZ) having fallen 0.62% to $37.04.

Wall Street falls overnight

Our share market also received a weak lead from Wall Street overnight.

The Dow Jones Industrial Average (DJX: .DJI) fell 0.67%, while the S&P 500 (SP: .INX) dropped 0.77%.

The Nasdaq Composite (NASDAQ: .IXIC) fell the most, down 0.92%.

US Treasury yields also moved higher, with the 10-year yield climbing above 5.2%.

All eyes on the RBA

The big event is still to come, with the RBA set to announce its latest interest rate decision at 2:30pm AEST.

The cash rate currently stands at 4.35% after three increases in 2026, with another rise widely expected today.

Investors also received new household spending figures this morning.

Spending was flat in August after climbing 1.1% in July, while annual growth remained at 6.8%.

The RBA decision, and what Governor Michele Bullock says afterwards, could have a much bigger say in where the market finishes today.

The post ASX 200 holds steady as investors brace for a big afternoon appeared first on The Motley Fool Australia.

More reading

• Why I’d buy NAB shares in October
• This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade
• Megaport shares on watch after locking in almost $1 billion of new AI deals
• Megaport lifts FY27 outlook after landing $1B in new AI infrastructure deals
• Codan trading update: Record H1 FY27 profit and revenue

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

When it comes to iron ore, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are the obvious names. However, if you’re looking for serious share price upside, junior companies can be worth a look.

ASX iron ore junior with potential

UBS has just initiated coverage of Champion Iron Ltd (ASX: CIA), and believes there is significant share price appreciation to be had over the next 12 months.

I’ll get to their specific share price target shortly. Firstly let’s have a look at why UBS likes the company.

The broker said broadly, they expect iron ore markets to remain balanced over the medium term, “with benchmark prices supported by cost inflation and resilient, albeit moderating, steel demand”.

With regards to Champion in particular, UBS said the company’s iron ore grades were the key differentiator.

The broker added:

Growing demand for premium steelmaking inputs, declining seaborne ore quality, and increasing blending requirements support structurally attractive economics for ultra high-grade iron ore producers. In our view, the market underappreciates CIA’s premium-grade product suite and the potential for improved premium capture as the Direct Reduction Pellet Feed (DRPF) facility ramps up.

UBS said the company’s pellet feed facility lifts the grade of its products from 66.2% to 69%, increasing the company’s exposure to premium markets.

The broker added:

Our CIA investment case rests on the market underestimating the scarcity value of CIA’s ultra-high-grade product suite, and the price realisation/earnings leverage from DRPF. As a result, we expect earnings to move above consensus from FY30.

UBS said Champion’s Bloom Lake mining operation, “benefits from a large, consistent orebody and established rail and port infrastructure, supporting reliable production and cost visibility”.

And they said the company was less vulnerable to price volatility due to the premium product being produced.

As they said:

Product quality and integrated logistics should underpin cash generation through the cycle, though fixed logistics costs reduce flexibility in weaker markets. Margin durability therefore remains tied to supportive high-grade premiums.

ASX iron ore shares looking cheap

UBS has a price target of $4.15 on Champion shares compared to $3.06 currently, and is also forecasting a 4% dividend yield.

Champion Iron is valued at $1.71 billion.

UBS recently raised its long-term iron ore forecast to US$93 per tonne from US$85 per tonne.

The broker said:

While consensus remains focused on Simandou’s supply addition and weaker Chinese construction activity, we believe the market is underestimating three structural supports to iron ore prices: resilient steel demand led by China’s manufacturing and export complex and the emergence of the Global South, a tighter iron-unit market balance once depletion and Fe grade decline are incorporated, and cost curve support that remains materially higher than in prior cycles.

The post This ASX iron ore junior could rise more than 33% UBS says appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Corporate Travel Management, JB Hi-Fi, BHP shares
• Is the ResMed share price a cheap buy?
• ASX 200 holds steady as investors brace for a big afternoon
• This ASX retail stock is sliding today after a surprise CEO exit
• Retirement just got more expensive. Here’s what it costs per year

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

Adairs Ltd (ASX: ADH) shares are heading lower on Tuesday after the homewares retailer released an important company update.

The Adairs share price is currently down 4.28% to $1.23, extending what has already been a pretty rough year for shareholders.

Its shares have now fallen around 30% in 2026 and more than 50% over the past 12 months.

So, let’s take a closer look at what was announced this morning.

Why are Adairs shares falling?

The big news today is the resignation of group CEO and managing director Elle Roseby.

Roseby has given notice after less than 2 years in the top job, although she won’t be leaving immediately.

She is expected to remain with the company through all or most of her notice period, which runs until March 2027.

The board will now begin searching for a new CEO, with an appointment expected to be announced in due course.

There are also a few other changes happening across the leadership team.

Rachel Taylor will become executive general manager of the Adairs business from 5 October, taking responsibility for its day-to-day operations.

Meanwhile, CFO Matt Edmonds will take on additional responsibilities as group CFO and operations director.

Roseby only joined Adairs as CEO in January 2025, so her departure comes relatively early into her time running the company.

How is the business tracking?

Alongside the CEO news, Adairs also gave investors an update on how its three businesses are performing.

The core Adairs business continues to improve, with year-to-date sales tracking in line with the trend reported alongside its FY26 results.

Mocka is also performing well, with two standalone stores now open and a third expected to open in the third quarter of FY27.

But Focus on Furniture is still struggling.

Written sales were down 27.6% across the first 8 weeks of FY27 compared with the same period last year.

That improved slightly over the following 5 weeks, with sales down 22.7%.

It means Focus on Furniture written sales were down 19.5% across the first 13 weeks of FY27.

Management said the early impact of changes made since its FY26 results has been positive, although trading remains volatile from week to week.

The company is still expecting a difficult first half as it works through the turnaround.

Are Adairs shares looking cheap?

After such a big fall, Adairs shares are starting to look pretty cheap on a few measures.

At $1.23, the stock is now trading more than 50% below where it was this time last year.

The dividend is also worth a look.

Adairs paid 11.5 cents per share in dividends for FY26, which would give the stock a trailing yield of around 9.3% at today’s price.

Of course, whether that level of dividend can continue will depend on how earnings hold up through FY27.

If management can get sales moving back in the right direction, today’s share price could start to look exciting.

But I want to see more evidence that the turnaround is working first.

The post This ASX retail stock is sliding today after a surprise CEO exit appeared first on The Motley Fool Australia.

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• 40 ASX shares with ex-dividend dates next week

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

The cost of living in retirement has increased by more than $2,000 per annum, according to the latest update from the Association of Superannuation Funds of Australia (ASFA).

ASFA has just updated its Retirement Standard budgeting guide to take into account inflation for the June quarter.

ASFA created Australia’s Retirement Standard in 2004, and updates it every quarter to reflect inflation.

The Retirement Standard provides a realistic budget for general living expenses for a comfortable and modest retirement lifestyle. You can find out how ASFA defines comfortable and modest here.

What does retirement cost?

In today’s dollars, a comfortable lifestyle now costs $78,998 per year, up from $75,319 in the June quarter 2025, for couples who own their own homes.

For single homeowners, a comfortable lifestyle now costs $56,166 per year, up from $53,289 in June 2025.

A modest retirement lifestyle now costs $52,690 per year for couple homeowners, up from $49,992 in June 2025.

For single homeowners, a modest retirement now costs $36,548 per year, up from $34,522 in June 2025.

For retired couples who rent their homes, a modest lifestyle now costs $69,375 per year, up from $66,269 in June 2025.

For singles who rent in retirement, their living expenses now total $51,418 per year, up from $49,044 in June 2025.

ASFA says the goods and services that dominate retirees’ costs of living are rising faster than the 3.8% annual inflation rate for the June quarter.

ASFA CEO Mary Delahunty said:

Retirees are among the groups hit hardest by the cost-of-living crisis because their budgets are weighted towards the things going up in price the most.

These costs include electricity, up 22.4%, car maintenance and repairs, up 6.5%, medical and hospital services, up 5%, and insurance, up 4.9%.

What about superannuation?

Delahunty said superannuation represented “the difference between watching every dollar and having a sense of financial security in retirement”.

ASFA says couples need $730,000 in superannuation and singles need $630,000 by age 67 to fund a comfortable retirement lifestyle.

For a modest lifestyle, couples need $120,000 and singles need $110,000 in superannuation savings.

What about the pension?

The age pension is indexed twice per year, in March and September, to keep pace with inflation.

Following the inflation adjustments this month, single pensioners are now receiving an extra $36.80 per fortnight. This raised the full pension payment to $1,237.70 per fortnight.

Couples on the full pension are now receiving an extra $27.80 per partner, per fortnight, or $55.60 combined per fortnight. This raised the full pension to $933 per partner, per fortnight, or $1,866 combined per fortnight.

The pension is means-tested using an assets test and an income test.

Find out how much you can own and earn while still qualifying for the age pension here.

The post Retirement just got more expensive. Here’s what it costs per year appeared first on The Motley Fool Australia.

More reading

• Down 17%, is this top ASX passive income stock a strong buy at its 52-week low?
• Sell alert! Why this expert is calling time on Life360 and Xero shares
• Where to invest $20,000 in ASX dividend shares for passive income
• Oil prices rise again as Middle East uncertainty keeps traders guessing
• Which ASX tech stock is up more than 30% after revealing a deal with the FBI?

Motley Fool contributor Bronwyn Allen 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.

Transurban Group (ASX: TCL) shares have fallen to a fresh 52-week low on Tuesday.

The toll road operator is trading around $12.91, roughly 17% below its 52-week high of $15.62.

For investors looking for passive income, I think that decline is worth paying attention to.

Why I like Transurban for income

Transurban owns and operates major toll road networks in Australia and North America.

I think the nature of those assets makes the company particularly well suited to income investors. Roads such as CityLink in Melbourne and WestConnex in Sydney provide essential transport infrastructure, while traffic volumes and toll revenue give Transurban a substantial cash flow base.

That allows the company to return a meaningful amount of cash to shareholders.

Transurban paid dividends of 69 cents per share in FY26, and consensus forecasts point to continued growth from here.

According to CommSec, analysts expect dividends of 72 cents in FY27, followed by 73 cents in FY28 and 76 cents in FY29.

At the current share price, the FY27 forecast represents a dividend yield of approximately 5.6%. By FY29, the potential yield rises to almost 5.9% if those forecasts are achieved.

I think that looks attractive for an infrastructure business with the potential to gradually increase its dividends.

But what about rising interest rates?

This is probably the biggest issue I would consider before buying today.

Transurban can behave somewhat like a bond proxy.

Income-focused investors often value infrastructure businesses partly on the dependable dividends they can provide. When interest rates and bond yields rise, safer income investments can become more competitive, which can reduce the price investors are willing to pay for shares like Transurban.

There is also a more direct consideration. Infrastructure businesses typically carry substantial debt because of the enormous cost of building and acquiring assets. Higher interest rates can therefore increase financing costs over time.

That does not make Transurban identical to a bond. Its earnings can still grow as traffic increases, tolls rise, and the company develops its asset base. But I think rising rates help explain why investors may demand a higher yield before buying the shares.

At $12.91, that adjustment is starting to work in my favour.

Is the 52-week low a buying opportunity?

I think so. The lower share price means new investors are now receiving a much stronger potential dividend yield than they would have near the 52-week high.

Importantly, consensus forecasts are also pointing to distributions continuing to rise rather than falling.

There are still reasons to be cautious. Further interest rate increases could keep pressure on infrastructure valuations, while higher financing costs are something I would continue watching.

But I am investing for the passive income Transurban could produce over many years, rather than trying to pick the exact bottom in its share price.

Foolish takeaway

At $12.91, I think Transurban has become attractive for passive income investors.

A forecast FY27 dividend yield of around 5.6% gives me a solid starting return, while the prospect of gradual growth adds to the longer-term case.

Interest rates could keep the shares under pressure for a while yet. For me, though, that is also helping create the price at which I would be happy to start buying.

The post Down 17%, is this top ASX passive income stock a strong buy at its 52-week low? appeared first on The Motley Fool Australia.

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• Where to invest as interest rates charge higher
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• Can Transurban shares rebound from a 52-week low?
• How much passive income can I earn off an $800,000 superannuation balance?
• 3 top ASX dividend shares to target this week for lifelong income

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

It’s safe to say that Life360 Inc (ASX: 360) and Xero Ltd (ASX: XRO) shares have had a year to forget.

As have their stockholders.

In late morning trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is down 0.1%, putting the benchmark Aussie stock market index down 2.1% in 12 months.

As for Life360, shares in the ASX 200 location-sharing software developer are down 1.9% today, trading at $18.95 each. This sees the Life360 share price down a sharp 64% since this time last year.

And Xero shares have had a similar bear run. At the time of writing, shares in the business and accounting software provider are up 1.5%, changing hands for $58.55 apiece. Despite the welcome intraday lift, shares remain down a painful 63% over the past 12 months.

What’s been pressuring the ASX 200 tech stocks?

Life360 and Xero shares have both faced similar headwinds.

First, there have been ongoing concerns that rapidly advancing AI systems might cheaply replace a lot of the services that Software as a Service (SaaS) stocks currently offer. Or the so-called ‘SaaSpocalypse’.

ASX tech stocks have also come under pressure as major economies across the globe, including the United States and Australia, ratchet up interest rates.

Growth-oriented shares like Xero and Life360 are generally priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

And looking ahead, Fairmont Equities’ Michael Gable believes both these ASX 200 tech shares could face further headwinds in the months ahead (courtesy of The Bull).

Time to exit Xero shares?

“Xero is an accounting software provider,” Gable said. “In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.”

Summarising his sell recommendation on Xero shares, Gable said:

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent. The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

Should I sell Life360 shares today?

Atop his bearish outlook on Xero shares, Gable also issued a sell recommendation on Life360 shares.

“This information technology company provides a mobile networking safety app for families,” he noted.

“The company posted a 38 per cent increase in revenue in the second quarter of 2026 when compared to the prior corresponding period. Total subscription revenue was up 31 per cent,” Gable added.

Explaining his sell recommendation on Life360 shares, Gable concluded:

However, the share price has fallen from $29.48 on August 10 to trade at $19.44 on September 24. We believe the business is vulnerable to increasing competition.

Any earnings disappointments moving forward may further pressure the share price. Investors may want to consider cashing in some gains.

The post Sell alert! Why this expert is calling time on Life360 and Xero shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Xero. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Passive income is one of the big attractions of investing in ASX dividend shares.

If I had $20,000 available and wanted to increase the income coming from my portfolio, I would be looking for businesses that can support their dividends with dependable earnings and cash flow.

These are three ASX dividend shares I would consider today.

Telstra Group Ltd (ASX: TLS)

Telstra would be high on my list. The telecommunications giant provides services that millions of Australians use every day, which gives the business a relatively defensive earnings base.

That is a good starting point for a passive income investment. I want to have some confidence that the underlying business can keep generating the cash required to support its dividend through different economic conditions.

Telstra lifted its dividend to 21 cents per share in FY26, and expectations point to another modest increase to 22 cents in FY27. This represents a 4.6% dividend yield at current prices.

Another thing I like is its growth outlook. Telstra’s longer-term strategy is targeting continued earnings growth through to FY30, which could give the company more capacity to lift dividends over time if it delivers on those ambitions.

For me, that combination makes Telstra one of the ASX dividend shares I would be most comfortable owning for the long term.

APA Group (ASX: APA)

APA would provide a different type of income exposure.

The company owns a large portfolio of energy infrastructure, including gas pipelines, electricity transmission assets, and power generation infrastructure.

I like the nature of those assets for an income investment because much of APA’s revenue comes from regulated arrangements or long-term contracts.

That can provide greater visibility over future cash flows, which in turn helps support distributions to shareholders.

APA is also continuing to invest in its infrastructure network as Australia’s energy system evolves.

For income investors, I think that creates a nice balance. There is an established portfolio generating cash today, while new projects could support growth in the years ahead.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is my third pick.

The retailer operates across furniture, electronics, appliances, and other household categories, while its business also includes a substantial property portfolio.

I like the company for its strong financial position and the cash its operations can generate when trading conditions are supportive.

Harvey Norman has also demonstrated a willingness to return a meaningful portion of its profits to shareholders through dividends.

It is important to remember that retail earnings will naturally move with consumer spending, so I would expect more income variability here than I would from a telecommunications or infrastructure business.

But that cyclicality can also create opportunities to buy the shares at attractive prices when sentiment towards the consumer sector is weak.

I think that is the case now, with Harvey Norman shares trading close to their 52-week low and offering a forecast dividend yield of 7.1%.

Foolish takeaway

For me, passive income works best when the dividend is a result of a healthy business.

That is what I like about these three ASX dividend shares. Each has an established earnings base and a credible path to keep rewarding shareholders over time.

If I had $20,000 to put to work for income, I would be happy to start my search here.

The post Where to invest $20,000 in ASX dividend shares for passive income appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $10,000 monthly passive income?
• Buy, hold, sell: BOQ, Harvey Norman, Lynas shares
• CBA vs Telstra: Which ASX blue-chip is better for passive income?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices are climbing again on Tuesday after another volatile start to the week.

West Texas Intermediate (WTI) crude is currently up around 0.5% to US$93.05 per barrel.

Meanwhile, Brent crude has climbed 0.5% to US$105.83 per barrel.

Both have been on a strong run lately, with WTI up almost 50% over the past year and Brent gaining around 60%.

So, with tensions in the Middle East still pretty high, oil prices could have another big week ahead.

Let’s take a closer look.

US-Iran negotiations continue

There has been some movement in talks between the US and Iran.

Officials from both countries held separate discussions with mediators on Monday as efforts continue to bring the 7-month war to an end.

Iranian Foreign Minister Abbas Araqchi said Tehran is now waiting for a formal response from the US to its latest proposal.

The plan includes a halt to fighting, sanctions relief, and the unfreezing of Iranian assets.

In return, Iran would reopen the Strait of Hormuz and begin talks with the US over its nuclear program and uranium stockpile.

There has also been some improvement in oil flows from the Middle East.

Exports from major producers reached 12.8 million barrels per day in September, the highest level since February.

US oil reserves are getting low

Another thing to watch is how much oil the US has left in its Strategic Petroleum Reserve.

The US has been releasing millions of barrels from the reserve since the war began in an effort to keep more oil in the market.

That has pushed stockpiles down to around 285 million barrels, their lowest level in more than 40 years.

The reserve held almost 300 million barrels at the beginning of August, meaning around 15 million barrels have been released in less than two months.

The US has also been working with other countries to release emergency reserves during the conflict.

What happens next for oil prices?

I think oil prices could keep moving higher from here.

Brent crude has already moved above US$105 per barrel again, putting the US$110 level back within reach.

WTI is also holding above US$90 after briefly trading above US$96 on Monday.

Yes, a lot will depend on what happens with the latest US-Iran negotiations.

And while Middle East oil exports have improved this month, they remain below levels seen before the war.

For me, that leaves the oil market looking pretty tight.

I wouldn’t be surprised to see Brent test US$110 per barrel again this week if tensions remain high.

The post Oil prices rise again as Middle East uncertainty keeps traders guessing appeared first on The Motley Fool Australia.

More reading

• Which ASX tech stock is up more than 30% after revealing a deal with the FBI?
• Expert names ‘undervalued’ ASX 200 healthcare stock to buy today
• Why I’d buy NAB shares in October
• This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade
• I’d buy 37,648 shares of this ASX stock to aim for $800 a month of passive income

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.

Shares in junior technology company Stakk Ltd (ASX: SKK) rocketed almost 40% in early trade after it announced that the US Federal Bureau of Investigation would be using its signature verification technology.

Recent deal already paying dividends

Stakk recently merged with US company Parascript, which pushed its valuation past the $100 million mark,

The company said in a statement to the ASX on Tuesday that Parascript had been engaged to provide signature verification capabilities for the FBI.

The company added:

Stakk’s technology supports the assessment of physical signatures where authenticity or potential fraud is in question. The first phase of the FBI deployment is fully live. Work is now under way on a second phase that will add capabilities to locate and prepare reference signatures for the verification process.

Stakk said the commercial terms of the agreement were confidential, but it was expected to contribute meaningfully to the company’s FY27 revenue target, which is now expected to surpass $55 million.

The initial agreement runs until December 2027 and may auto-renew for subsequent 12-month terms thereafter.

The company said the agreement was a strong endorsement of its technology.

The engagement also establishes a live Law Enforcement deployment of Stakk’s technology. It demonstrates the relevance of the Group’s capabilities in a sector where the authenticity of signatures and documents can be critical and provides a foundation for Stakk to pursue further Law Enforcement opportunities. The need to establish authenticity extends across financial services, healthcare, insurance, telecommunications, and government. As AI-powered fraud grows more sophisticated, Stakk expects demand for these capabilities to increase. The Company sees opportunities with state and federal Law Enforcement agencies across the United States, as well as with agencies internationally.

Stakk Director Arthur Lo said the Parascript acquisition was already proving its worth, with the company providing services that were in demand across financial services, healthcare, government, law enforcement, and other regulated sectors.

He added:

As fraud grows more sophisticated, we see a substantial opportunity to bring these solutions to agencies in the United States and internationally. This engagement is a powerful example of why we recently brought the two businesses together.

Share price taking off

Stakk shares traded as high as 2.5 cents before settling back to be changing hands for 2.4 cents, up 33.3%.

The company was valued at $114.8 million at the close of trade on Monday.

Stakk said late last month that its $55 million revenue target for FY27 was already secured through recurring revenue under existing contracts.

The post Which ASX tech stock is up more than 30% after revealing a deal with the FBI? appeared first on The Motley Fool Australia.

More reading

• Oil prices rise again as Middle East uncertainty keeps traders guessing
• Expert names ‘undervalued’ ASX 200 healthcare stock to buy today
• Why I’d buy NAB shares in October
• This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade
• I’d buy 37,648 shares of this ASX stock to aim for $800 a month of passive income

Motley Fool contributor Cameron England has positions in Stakk. 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.

Ramsay Health Care Ltd (ASX: RHC) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock closed yesterday trading for $55.56. In morning trade on Tuesday, shares are changing hands for $55.49 apiece, down 0.1%.

For some context, the ASX 200 is up 0.2% at this same time.

Taking a step back, Ramsay Health Care shares have surged 75.9% since this time last year, smashing the 12-month 1.9% losses posted by the benchmark index.

And that’s not including the two fully-franked dividends, totalling 91 cents a share that the ASX 200 healthcare stock paid out over the full year. At the current share price, Ramsay Healthcare trades on a fully-franked trailing dividend yield of 1.6%.

Despite that strong outperformance, Merlon Capital Partners co-portfolio manager Joey Mui believes the stock is still undervalued (courtesy of the Australian Financial Review).

Here’s why.

ASX 200 healthcare stock with further upside

Asked which stock his fund owns that’s most undervalued by the market, Mui pointed to private healthcare provider Ramsay Health Care.

“We believe Ramsay is still significantly undervalued,” he said.

Explaining his bullish outlook on the resurgent ASX 200 healthcare stock, Mui said:

The market has been cautious about its ability to offset inflation, but we see a strong opportunity to lift margins – through higher theatre utilisation, a better mix of specialities, and cost indexation from insurers. The new management team under Natalie Davis is executing on these strategies well.

What’s the latest from Ramsay Health Care?

Ramsay Health Care shares closed up a blistering 13.7% on 27 August, following the release of the company’s full-year FY 2026 results.

For the 12 months to 30 June, the ASX 200 healthcare stock reported underlying earnings before tax (EBIT) of $1.16 billion, up 11.5% year on year.

And on the bottom line, Ramsay achieved an underlying net profit after tax (NPAT) of $364 million, up 19.3% from FY 2025.

Commenting on the strong results, Ramsay Health Care CEO and managing director Natalie Davis said, “FY26 was a year of continued improvement and delivery for Ramsay, with group underlying NPAT up 23% (in constant currency) year-on-year, all regions delivering EBIT growth, high patient NPS and clinical excellence across the group.”

Looking to what’s ahead for the company in FY 2027, Davis added:

We will continue to build on Ramsay’s clinical excellence in Australia for the benefit of our patients, by investing in clinical innovation and connecting hospital and healthcare services in our priority therapeutic areas – cardiology, orthopaedics and cancer care, to be Australia’s most trusted leading healthcare provider and to grow long-term shareholder value.

The post Expert names ‘undervalued’ ASX 200 healthcare stock to buy today 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.