Tag: Stock pick

Shares in IDP Education Ltd (ASX: IEL) were getting hammered on Friday morning after Macquarie downgraded the company to an underperform rating.

IDP Education shares fell well below Macquarie’s own price target of $2.35, dropping 20.3% on heavier than usual volume to be changing hands for $2.12, after hitting a new 12-month low of $2.08. The shares have traded as high as $7.97 during the past 12 months.

Difficulties lie ahead

Macquarie said there were numerous headwinds for the company including a stronger Australian dollar, weaker visa volumes across Australia, the UK, and Canada, and soft demand signals for English education as evidenced by lower Google searches for the IELTS test across India and China.

IELTS is the dominant test used to evaluate English proficiency.

Macquarie added:

While the China IELTS rollout is progressing well, with test centres rising to 13 across 9 provinces, this is insufficient to offset broader weakness. Further, while we expect IEL could announce additional cost-out in response to topline pressures, we estimate IEL would be required to achieve additional $25m net cost reduction on top of the $25m already announced for FY26E to reach Consensus FY27 EBIT. We view this as challenging given lower-hanging cost-out opportunities (e.g., project spend) have already been captured.

Macquarie said there was a risk of further downside in FY26 and downgrades to the outlook for FY27.

They added:

While our FY26 EBIT of $120.0m is at the bottom-end of FY26 guidance of $120-130m, we see downside risk here due to foreign exchange headwinds and given our volume estimates are more optimistic than current indicators imply. We see significant downside risk to FY27.

The Macquarie price target was cut by more than half, down from $5.45 previously to $2.35.

They added:

While we view IEL’s long-term thesis to be intact, as both foreign student demand should return, and policy setting should improve given university and population growth reliance on students, we see near-term earnings headwinds.

Company outlook positive

IDP has not made any comment regarding its business outlook since the release of its first-half results in February, when it upgraded its full-year guidance from EBIT of $115 to $125 million to $120 to $130 million.

Managing Director Tennealle O’Shannessy said at the time the company was pleased with the first-half performance, “with the team executing well across the business whilst also progressing our transformation program at pace”.

IDP Education is valued at $740.4 million.

The post After a 20% drop to a 12-month low, is it time to buy IDP Education shares? appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today

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

Web Travel Group Ltd (ASX: WEB) earlier this week delivered a strong set of full-year numbers, giving its shares a healthy boost as investors digested the news.

Brokers have also run the ruler over the company’s figures and have come up with quite divergent views on how the stock will perform. We’ll have a look at what they’re saying shortly.

First, let’s have a look at what Web Travel Group reported.

Volumes looking good

In a statement to the ASX, the company said that total transaction volume (TTV) was up 20% compared with FY25 to $5.8 billion, driven by “significant organic growth in the Americas and Europe”, while TTV margins improved 0.1% to 6.8%.

Revenue increased 20% to $394.1 million while net profit was up from $11.1 million in FY25 to $35.5 million.

Web Travel Group Managing Director John Guscic said:

FY26 was a terrific year for the WebBeds business. We continue to win share, TTV margins continue to improve, and our scalable business model is delivering higher operating leverage. WebBeds’ EBITDA margin remains world class. We have been able to maintain our market-leading TTV growth rate with no margin pressure. WebBeds delivered $1 billion incremental TTV1 this year at an improved margin compared with last year, demonstrating disciplined growth and margin resilience. This impressive result was delivered in an environment where the conflict in the Middle East placed downward pressure on Bookings and TTV in March 2026. The key driver of our FY26 result was the outstanding performance of our Americas business which saw Bookings 41% higher than the previous year. Europe also performed well with Bookings up 19%.

Mr Guscic said while APAC and MEA were both impacted by the Middle East conflict, they both increased bookings during the period.

On the outlook, for the first eight weeks of FY27, bookings were up 6%.

Brokers divided on the outlook

The analyst team at Macquarie had a look at these results and they like what they see.

They said while TTV was in line with consensus estimates, TTV margins were better than expected.

They did say that margins could come under pressure as the Middle East conflict drags on, but they said the company’s ongoing investment should position them well for any recovery in travel activity.

Macquarie has a price target of $4.05 on Web Travel Group shares compared with $2.69 currently.

Morgans is also bullish on the stock, saying the share price weakness has made it a buy.

They added:

The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.

Morgans has a price target of $3.75 on the shares.

And lastly Morgan Stanley, which believes the shares are fully priced at the moment, has a price target of just $2.60 on the shares.

They noted that the company has a larger share of the market in the Middle East region than its peers, and said margins would come under pressure as the company invested to maintain growth.

Web Travel Group is valued at $919.3 million.

The post How high could Web Travel Group shares go? 3 brokers weigh in appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• Here are the top 10 ASX 200 shares today
• Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall
• Morgans says these ASX 200 shares are buys
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today

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

It has been another busy week for many of Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Mineral Resources Ltd (ASX: MIN)

According to a note out of Bell Potter, its analysts have retained their buy rating on this mining and mining services company’s shares with an improved price target of $81.00. The broker was pleased to see the Mt Marion expansion has been approved and the Bald Hill operation will restart. It expects this to support a meaningful increase in lithium spodumene production in the coming years. In addition, given the rapid balance sheet deleveraging, paired with cash flows from persistent iron ore and lithium market prices, the broker believes that Mineral Resources will start to pay dividends again in the near future. The Mineral Resources share price is trading at $72.32 on Friday.

Tabcorp Holdings Ltd (ASX: TAH)

A note out of Morgans reveals that its analysts have upgraded this gambling company’s shares to a buy rating with a trimmed price target of $1.07. The broker made the move on valuation grounds following a sharp pullback this year. And while Morgans concedes that an investigation by AUSTRAC is likely to weigh on sentiment in the near term, it still believes its shares are being seriously undervalued by the market. This is even after factoring in additional costs that are likely for compliance activities. The Tabcorp share price is fetching 77 cents at the time of writing.

Web Travel Group Ltd (ASX: WEB)

Another note out of Morgans reveals that its analysts have upgraded this travel technology company’s shares to a buy rating with a reduced price target of $3.75. This follows the release of the WebBeds owner’s FY 2026 results this week. Morgans highlights that the company delivered a resilient result that was ahead of consensus expectations. Looking ahead, the broker wasn’t surprised to see that the Middle East conflict is impacting its performance early in FY 2027. Morgans is expecting the conflict to lead to a soft first half but expects a recovery in the second half. Furthermore, the broker points out that after past economic and geopolitical events, travel demand rebounds. So, with its shares down heavily, it thinks now is a great time to snap them up. The Web Travel share price is trading at $2.68 on Friday.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Up 200%! Can the Mineral Resources share price bull run continue?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall
• Morgans says these ASX 200 shares are buys

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is up 0.8% today, with plenty of help from this rocketing ASX All Ords gold stock.

The outperforming stock in question is Gorilla Gold Mines Ltd (ASX: GG8).

Gorilla Gold shares closed yesterday trading for 36.5 cents. In late morning trade on Friday, shares are swapping hands for 40.5 cents apiece, up 11%.

Here’s what’s stoking investor interest.

ASX All Ords gold stock rockets on drill results

Gorilla Gold shares are ripping higher today after the miner announced another batch of promising drilling results from its flagship Comet Vale Gold Project, located in Western Australia.

Comet Vale Project is part of the ASX All Ords gold stock’s North Kalgoorlie Hub. The North Kalgoorlie Hub has a current Mineral Resources of 1.2 million ounces, at 3.7 grams of gold per tonne (1.2Moz at 3.7g/t Au).

Gorilla has been actively expanding the project, revealing that its ongoing drilling campaign has returned further high-grade gold intercepts from the Sovereign Deposit within Comet Vale.

Among the top three drill hole results, the miner reported:

• 8 metres at 21.0g/t Au from 374.3 metres
• 1 metres at 24.8g/t Au from 328.8 metres
• 5 metres at 36.9g/t Au from 266.8 metres

The miner said another reverse circulation rig has now commenced drilling at Comet Vale, bringing the total number of rigs it has operating at the North Kalgoorlie Hub to five.

What did Gorilla Gold management say?

Commenting on the high-grade results lifting the ASX All Ords gold stock today, Gorilla Gold CEO Charles Hughes said, “Our 2026 exploration campaign is now really moving up a gear as the flow of assay results begins to accelerate.”

He added, “These latest results from the cornerstone Sovereign Deposit continue to reinforce the scale and endowment of the key gold systems across the Comet Vale Project.”

Highlighting the significant potential of the deposit, Hughes said:

Sovereign is the largest and highest-grade individual deposit at Comet Vale, with a current resource of 410,000 ounces @ 4.3g/t Au over a strike length of 1.3 kilometres and clear potential to extend this resource well beyond 2.5 kilometres in length.

Importantly, we’re seeing multiple parallel lodes developing at Sovereign around the contact of two major lithological units, with no real indication yet of how much further these lodes may extend as we get further into the footwall of this contact. That means there is plenty of growth upside!

Looking at what could impact the ASX All Ords gold stock in the months ahead, Hughes concluded:

We are firmly on track to deliver further significant resource growth in 2026, with five rigs turning across the North Kalgoorlie Hub and one rig turning at the Vivien Project.

Outside of the discovery and resource definition work at Sovereign, we are also drilling a number of exciting greenfield targets at Comet Vale, plus drilling is also ongoing at Mulwarrie with more assay results imminent.

The post Why is this ASX All Ords gold stock leaping 11% 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.

Judo Capital Holdings Ltd (ASX: JDO) shares are catching the eye on Friday.

In morning trade, the ASX 200 bank stock is up 12% to $1.56.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.75% at the time of writing.

Why is this ASX 200 bank stock jumping 12%?

Investors have been buying the small business lender’s shares after responding positively to the release of an announcement before the market open.

According to the release, the ASX 200 bank stock has successfully priced a $750 million capital-relief securitisation transaction backed by small and medium enterprise (SME) business loans.

It notes that the transaction attracted strong investor support, enabling Judo Capital to upsize the transaction from an initial launch amount of $500 million to $750 million.

Management advised that the notes are priced at a weighted average of 171 basis points over one-month BBSW. This represents an improvement of 102 basis points compared with Judo Capital’s inaugural transaction completed in September 2023 at 273 basis points over the one-month BBSW.

The company confirms that the transaction qualifies for regulatory capital relief. As a result, following completion of the transaction, Judo’s Common Equity Tier 1 (CET1) ratio (at 31 March) will increase to 13.2% on a pro forma basis. This is up from its reported CET1 ratio of 12.6%.

In addition, the transaction does not impact the reporting of loans in Judo Capital’s accounts. The underlying business loans will continue to be reported as gross loans and advances and generate interest income.

Return on equity boost

The ASX 200 bank stock revealed that the transaction is highly accretive to its return on equity (ROE).

Following the transaction, Judo Capital will generate a significant net interest margin on the underlying business loans without needing to hold capital for these assets.

Assuming a normalised level of capital, the transaction is estimated to deliver a 25 to 30 basis points pro-forma benefit to FY 2027 ROE.

Commenting on the transaction, Judo Capital’s CEO, Chris Bayliss, said:

We are very pleased with the strong support received for this transaction from a broad range of domestic and international investors. The transaction strengthens Judo’s CET1 position and increases our flexibility to support continued lending growth, while also improving ROE.

The transaction also demonstrates that we have multiple levers to actively manage capital, providing increased optionality, including the potential to consider capital management initiatives in due course.

The post Which ASX 200 bank stock is jumping 12% on big news? appeared first on The Motley Fool Australia.

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• 2 ASX shares highly recommended to buy: Experts
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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 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.

If an investor wants passive income, then I think it’s important to invest in ASX dividend shares that are very likely to actually deliver on providing a payment.

Dividend growth isn’t guaranteed of course, but there are some names that are clearly more likely to grow their dividends than others. Just looking at the history of payments this decade can give a great indication of how reliable certain businesses could be.

I think it’s important to acknowledge that certain business names are unlikely to be ultra-reliable in all conditions because they’re linked to, for example, the economy (like discretionary retailers) or commodity prices (like miners).

Below are three of the ASX dividend shares that are on the longest streaks of annual dividend growth.  

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

This business is by far the leader in Australia when it comes to consistent dividend growth.

The investment house has increased its annual dividend per share every year since 1998, which is an incredible record.

Soul Patts is invested across numerous sectors like resources, telecommunications, energy, swimming schools, agriculture, industrial properties, electrification, and plenty more.

Every year, the ASX dividend share makes new investments that help improve the portfolio and could let it generate better returns in the long term, as well as improving its diversification.

Based on its last two payouts, it has a grossed-up dividend yield of 3.6%, including franking credits, at the time of writing.

APA Group (ASX: APA)

APA is one of the largest energy infrastructure businesses on the ASX. Its crown jewel is its national gas pipeline that transports half of Australia’s usage. Its diverse portfolio also includes electricity transmission assets, wind farms, solar farms, batteries, gas power stations, gas processing facilities, and gas storage.

It funds its distribution from the steady growth of its cash flow from its portfolio. That cash flow is growing through regular additions to its portfolio (both organic construction and acquisitions), as well as the fact that its revenue is largely inflation-linked.

APA has grown its annual distribution every year since 2004, which means the ASX dividend share has provided more than two decades of continuous payment growth.

It expects to pay a distribution of 58 cents per security, equating to a distribution yield of 5.75%, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The final ASX dividend share I want to tell you about is the listed investment company (LIC) Future Generation Australia.

LICs are a great structure for providing dividend payouts because of how they can decide on the level of the dividends they provide. They can also use profit reserves generated from previous years to continue paying a reliable dividend during economic downturns.

Future Generation Australia has increased its annual dividend every year for the past decade, which is an excellent and improving track record.

The ASX dividend share is invested in a number of funds of fund managers who work for free to enable the ASX dividend share to donate 1% of its net assets each year to youth charities.

For me, the most appealing factor is how large its dividend yield is. Its 2025 payout translates into a grossed-up dividend yield of 7.8%, including franking credits, at the time of writing.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Tourism Holdings Ltd (ASX: THL) shot up more than 30% in early trade after Queensland businessmen Luke and Karl Trouchet teamed up with private equity firm BGH Capital to lob a takeover offer for the company.

Back for a second attempt

It’s the second offer from BGH, which had its NZ$2.30 per share bid rejected by the company last August.

The consortium has now come back with an all-cash offer valued at NZ$3.10 per share.

The company’s ASX-listed shares shot up 54.5 cents on the news to $2.29 on Friday morning.

The recreational vehicle company said in its statement to the ASX that the offer was at this stage non-binding and subject to due diligence.

The company added:

It is subject to a number of conditions including the satisfactory completion of due diligence, finalisation of debt arrangements, and BGH receiving final approval from its Investment Review Committee to submit a binding proposal. It is also conditional on THL’s Board unanimously recommending shareholders accept the proposal, in the absence of a superior proposal and subject to an independent adviser concluding that the proposal is within or above the independent adviser’s valuation range for THL shares.

The company said shareholders holding about 16% of its shares have said that they supported it engaging with the consortium and granting it due diligence access.

Weaker outlook

Tourism Holdings also updated its guidance for FY26 on Friday, saying it now expected underlying net profit to be in the range of NZ$40 to NZ$43 million, down from previous guidance of NZ$43 to NZ$47 million.

The company added:

Given the ongoing global disruptions to international travel and the broader softening of consumer confidence, THL’s underlying FY26 profitability has not been significantly impacted, and the Company maintains a strong balance sheet position. The Board considers this a positive outcome given the degree of change and impact on global tourism. There are a number of factors impacting performance, including the effects of the current Middle East conflict on vehicle sales, softer conditions in the Australian domestic rental business, and foreign exchange movements.  

Tourism Holdings said vehicle sales had been lower across all of its markets since the start of March due to geopolitical and macroeconomic factors.

It added:

Underlying customer interest and lead volumes for recreational vehicles remain positive. However, the broader uncertainty has resulted in a reluctance by consumers to commit to purchase decisions in the current environment.  

The company said it now expected its net debt at the end of FY26 to be NZ$460 to NZ$470 million, up from a previous expectation of less than NZ$400 million.

The post Which ASX travel company is up more than 30% on takeover talks? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
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• Guess which ASX defence stock is rocketing 17% to a record high on Friday

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.

Elsight Ltd (ASX: ELS) shares are ending the week with a bang.

In morning trade, the ASX defence stock is up 17% to a record-high of $7.43.

Why is this ASX defence stock rocketing?

Investors have been fighting to get hold of the shares of the global enablement technologies provider for uncrewed systems following the announcement of a new contract win.

According to the release, a U.S. based commercial customer in the public safety sector has placed a follow-on order valued at approximately US$2 million (~A$2.8 million).

It highlights that this repeat order is more than four-times the value of the initial US$460,000 purchase order received in January, which it believes signals the customer’s operational validation of Elsight’s Halo platform and a progression toward scaled deployment.

In addition, the ASX defence stock notes that it continues to observe significant progress in the U.S. market. This includes Halo’s approval on the DCMA Blue UAS Cleared List, reinforcing its positioning as a trusted, U.S.-compliant technology provider across both defence and commercial sectors.

Favourable US trends

Elsight points out that trends in the United States are becoming favourable for its Halo platform. It explains:

The U.S. regulatory environment for commercial drones is advancing rapidly, with one of the biggest regulatory barriers to large-scale commercial drone adoption being removed. In June 2025, the White House ordered the Federal Aviation Administration (FAA) to accelerate rules governing BVLOS drone flights. The FAA released its proposed rules in August 2025, completed its public consultation in October 2025, and the final rules are widely expected to be published in 2026.

Elsight believes this proposed shift in regulation is contributing to accelerating commercial engagement, with public safety emerging as a leading early-adopter for BVLOS-enabled operations. Public safety use cases, including Drone as First Responder (DFR), emergency response, and real-time situational awareness, demand continuous, high-reliability connectivity, a core strength of the Halo platform.

Commenting on the deal and its outlook, the ASX defence stock’s CEO, Yoav Amitai, said:

A U.S Public safety customer increasing their order within months signals strong conviction, highlighting the Company’s operational validation and commercial traction. Public safety agencies are preparing for scaled BVLOS operations and selecting technology partners that meet the highest standards of reliability and compliance. With our recent Blue UAS approval and the Part 108 rules imminent, we believe the conditions for accelerating our growth in the commercial market are another catalyst in the Company’s future.

The post Guess which ASX defence stock is rocketing 17% to a record high on Friday 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 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.

ASX All Ords energy stock Tamboran Resources Corp (ASX: TBN) is charging higher today.

Tamboran Resources shares closed yesterday trading for 23 cents. In early morning trade on Friday, shares are changing hands for 24 cents apiece, up 4.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.7% at this same time, while the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.6% amid an overnight retrace in the oil price.

With today’s intraday boost factored in, the Tamboran Resources share price is up 50% since this time last year, outpacing the 2.9% 12-month gains delivered by the All Ords.

Here’s what’s catching investor interest today.

ASX All Ords energy stock lifts on acquisition completion

Tamboran Resource shares are marching higher after the company announced the completion of its acquisition of Canadian-based Falcon Oil & Gas Ltd via the purchase of its subsidiaries.

The ASX All Ords energy stock first revealed its intentions to acquire Falcon back in September.

Following receipt of final court approval from the Supreme Court of British Columbia, the acquisition is now a done deal.

Having acquired Falcon’s tenements in the Northern Territory’s Beetaloo Basin, Tamboran now holds around 2.8 million net prospective acres in the onshore gas basin. This sees the ASX All Ords energy stock holding the largest acreage position in the Beetaloo Basin.

In accordance with the deal, Tamboran has now issued 6,537,503 shares to eligible shareholders of Falcon.

In line with its initial acquisition announcement, Tamboran also paid a cash consideration of US$23.7 million.

The company, which is also listed on the New York Stock Exchange (NYSE), said it now has a pro forma market capitalisation of approximately US$1.2 billion (AU$1.68 billion).

What did Tamboran Resources management say?

Commenting on the acquisition completion boosting the ASX All Ords energy stock today, Tamboran Resources CEO Todd Abbott said, “I would like to thank both Falcon and Tamboran shareholders for their strong support and approval of the transaction.”

Abbott added:

This acquisition represents a logical consolidation between the two companies and provides the combined company with the largest acreage position in the Beetaloo Basin with approximately 2.8 million net prospective acres, which covers the majority of the Beetaloo depocenter.

Looking to what’s ahead for Tamboran Resources, Abbott said:

Our focus now turns to the 2026 operating program, which is planned to be our most active year of operations in the Beetaloo Basin, including the drilling of at least four wells and stimulation of at least five.

Tamboran has commenced the three‑well stimulation program on the SS2 well pad, with the wells expected to be tied into the Sturt Plateau Compression Facility during the third quarter of 2026.

He noted that the first gas sales from the commissioning of the pilot project remain on track for the third quarter of 2026.

The post Guess which ASX All Ords energy stock is jumping higher today on big acquisition news 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.

Zip Co Ltd (ASX: ZIP) shares have been sold down heavily.

The buy now pay later (BNPL) company is trading at $2.20 on Friday, well below its 52-week high of $4.93. That means the share price has fallen by more than half from its peak.

I think the sell-off has made the stock more interesting. Here are three reasons I would buy Zip shares now.

The valuation has reset

The first reason is valuation.

According to CommSec, consensus estimates point to earnings per share of 9.2 cents in FY26, 10.9 cents in FY27, and 17 cents in FY28. That compares with 6.1 cents in FY25.

Based on the $2.20 share price, Zip is trading on approximately 24 times estimated FY26 earnings, 20 times FY27 earnings, and 13 times FY28 earnings.

I think that looks reasonable if the company can deliver on those forecasts.

This is still a growth stock, and the market will punish it if earnings momentum disappoints. But the valuation no longer looks like it is pricing in perfection.

The FY28 estimate is the one that interests me most. If Zip can grow earnings to 17 cents per share, today’s share price may look quite undemanding in hindsight.

The business has become more disciplined

The second reason I like Zip is that the company looks more mature than it did during the earlier buy now pay later boom.

Back then, the market was excited by rapid customer growth, merchant wins, and global expansion. The problem was that many BNPL companies were also burning cash, chasing too many markets, and relying heavily on future profitability.

Zip now looks like a more focused business.

The company is concentrating on the markets that matter most to its strategy, particularly Australia and New Zealand and the United States. That gives management a clearer job: grow where the opportunity is attractive, keep credit quality under control, and keep improving profitability.

I think that change in mindset matters.

A payments business can grow quickly and still disappoint investors if losses expand or underwriting deteriorates. Zip needs to keep proving it can grow without allowing risk to run too far ahead of returns.

So far, the earnings estimates suggest analysts expect meaningful progress over the next few years.

The US opportunity is large

The third reason is the potential of the US business.

The US remains a much larger prize than Australia and New Zealand. It is a huge consumer market, and many customers are still looking for flexible ways to manage purchases, cash flow, and short-term spending.

Zip does not need to dominate the US payments market to create value. It needs to keep building a profitable niche with customers and merchants that find its product useful.

That is why I think the current share price weakness is interesting. The market is not treating Zip like a perfect growth story anymore. Expectations have come down, but the company still has a sizeable opportunity if it can execute well.

There are risks to watch, including consumer stress, regulation, funding costs, competition, and credit losses. But I think those risks are now being weighed against a much more attractive starting valuation.

Foolish takeaway

Zip shares have fallen a long way from their high, and that has changed the investment case.

This is no longer a stock where investors are being asked to pay a huge price for distant hopes. The company is expected to grow earnings strongly over the next few years, the valuation has reset, and the US opportunity still gives the business room to become much larger.

I would expect volatility. Zip is exposed to consumer credit and market sentiment towards growth shares.

But at around $2.20, I think the balance of risk and reward looks appealing. If earnings keep moving in the right direction, this could be a much better business than the current share price suggests.

The post 3 key reasons to buy Zip Co shares now 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 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.