Tag: Stock pick

The tech sector has been sold off over the past 12 months, leaving many ASX tech stocks trading well below what analysts believe is fair value.

One of those is Gentrack Group Ltd (ASX: GTK).

What is Gentrack?

It is a provider of specialist billing and CRM solutions and managed services to the energy, water, and airport industries.

Gentrack recently announced that it was strengthening its airport offering with the acquisition of UAE-based Dubai Technology Partners (DTP).

Bell Potter thinks this is a good move by the ASX tech stock. It said:

DTP technology looks to be integrated in a centralised application layer level and an interoperability layer connecting airport-wide platforms. Additionally, DTP brings across a headcount of 60 deep domain and regional experts which GTK views as favourable for its ability to drive scale through Veovo. The timing of the acquisition comes during a phase of heightened geopolitical conflict in the region; prior the Middle East was expected to grow passenger traffic through the region by 10.2% in CY26, 9.5% in CY26 and 8.2% in CY27 (IATA), underpinning the region’s position as the worlds quickest growing market.

There are currently 48 expansion projects in the region worth $182.6b to support forecast passenger growth. Our earnings changes account for FY26 revenue contribution incorporating a marginal EBITDA accretion offset by low integration costs. We have also reduced our FY26+ Utilities margins accounting for uncertainty for timing around pipeline execution and flow on impacts to high margin ARR in FY27+; net EPS changes are -9%/-8%/-14% for FY26e-FY28e.

Big potential returns

According to the note, the broker has retained its buy rating on the ASX tech stock with a reduced price target of $8.80 (from $11.00).

Based on its current share price of $4.78, this implies potential upside of 84% for investors over the next 12 months.

Bell Potter is positive on Gentrack due to its position in a market experiencing large secular tailwinds. Commenting on its buy recommendation, the broker said:

Incorporating the earnings changes, our Target Price reduces to A$8.80 following an increase in our WACC to 10.6% due to a lift in our risk-free rate to 4.5%. We remain broadly positive on GTK due to the large secular tailwinds in rapidly shifting energy production and consumption trends driving increased complexity within grids, billing platform requirements and broader digital transformations.

The post Why this ASX tech stock could rocket 80% according to a top broker appeared first on The Motley Fool Australia.

More reading

• Why Capstone Copper, Gentrack, Mineral Resources, and WiseTech shares are racing higher today
• ASX tech stock charges higher on big acquisition news

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

The Transurban Group (ASX: TCL) share price is in focus after the company revealed April traffic improvements, with Melbourne traffic up 1.6% and commercial vehicle traffic in Australia rising 10.8%.

What did Transurban Group report?

• Melbourne April traffic grew by 1.6%, supported by the West Gate Tunnel project
• Brisbane April traffic increased by 0.7%
• Sydney April traffic declined by 1.2%, impacted by holidays and construction activity
• Australian commercial vehicle traffic rose 10.8% overall (4.4% excluding West Gate Tunnel)
• North America quarterly average toll prices surged 14.6% on 95 Express Lanes and 36.0% on 495 Express Lanes
• $1.210 billion of WestConnex debt successfully refinanced, extending debt maturity

What else do investors need to know?

The West Gate Tunnel project continues to deliver benefits for Melbourne, with time and fuel savings reported for heavy vehicles and a substantial reduction in truck traffic on local streets. Around 63% of tunnel traffic is made up of large vehicles, underlining the asset’s importance to freight operators.

Transurban noted early April traffic trends appeared to be stabilising after earlier weakness linked to the broader geopolitical and macroeconomic environment. Management is keeping a close eye on external conditions but highlights the resilience of its toll road portfolio, with over 90% of revenue CPI-linked or escalated.

During the period, the Group also refinanced WestConnex debt, helping to strengthen liquidity and the overall balance sheet.

What’s next for Transurban Group?

Transurban says it will continue to monitor the evolving geopolitical and economic landscape but is confident in the fundamentals of its urban toll road network. The company remains focused on disciplined balance sheet management and delivering value for customers through its city-focused infrastructure portfolio.

The West Gate Tunnel is expected to continue ramping up, especially among car users over time. Transurban will keep updating investors on project progress and any impacts arising from macroeconomic developments.

Transurban Group share price snapshot

Over the past 12 months, Transurban shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which have risen 7% over the same period.

View Original Announcement

The post Transurban Group posts April traffic gains as West Gate Tunnel ramps up appeared first on The Motley Fool Australia.

More reading

• Viva Energy updates investors on Geelong Refinery operations
• Endeavour Group Q3 sales rise as retail and hotels gain ground
• NAB posts higher cash earnings, keeps dividend firm
• 3 excellent ASX dividend shares to buy in May
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Endeavour Group Ltd (ASX: EDV) share price is in focus today after the company reported group sales growth of 3% for Q3 FY26, with retail and hotels both delivering positive results despite a tough economic climate.

What did Endeavour Group report?

• Q3 FY26 retail sales up 2.9% to $2,398 million
• Q3 FY26 hotel sales up 3.7% to $531 million
• Group sales for Q3 FY26 totalled $2,929 million, up 3% year-on-year
• H2 FY26 to date: retail sales up 0.7%, hotel sales up 3.7%
• Group targeting $100 million in cost savings in FY27
• Elevated supply chain costs expected due to higher fuel and freight prices

What else do investors need to know?

Endeavour Group says it is gaining retail market share, even with subdued demand outside of key festive periods. Hotels saw strong early momentum in Q3, but sales growth slowed in March and April as the cost of living rose.

The company is proactively building up retail inventory—adding up to $400 million extra compared to the prior year—to manage potential supply issues linked to Middle East conflicts. Higher inventory and freight costs are expected to temporarily increase the Group’s working capital and supply chain expenses by $6–8 million in H2 FY26.

The Group continues to streamline its operations, aiming to simplify the business and deliver significant cost reductions, with a $100 million cost-saving target for FY27.

What did Endeavour Group management say?

Endeavour Group CEO Jayne Hrdlicka commented:
“In line with our strategic focus on simplifying the Group platform, we have identified a significant opportunity to drive costs out of the business and improve productivity and profitability. We are implementing a more efficient operating model to deliver better returns for our shareholders and look forward to discussing this more fully at our upcoming Investor Day.”

What’s next for Endeavour Group?

Management will outline Endeavour Group’s updated strategy and transformation plan at its Investor Day in Sydney on 27 May 2026. Investors can expect a focus on cost optimisation, inventory management, and further updates on navigating supply chain risks.

A further update on the impact of the Middle East conflict will follow with the FY26 full-year results in August. The company remains committed to strengthening its balance sheet and delivering value to shareholders through ongoing operational improvements.

Endeavour Group share price snapshot

Over the past 12 months, Endeavour shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Endeavour Group Q3 sales rise as retail and hotels gain ground appeared first on The Motley Fool Australia.

More reading

• Viva Energy updates investors on Geelong Refinery operations
• Transurban Group posts April traffic gains as West Gate Tunnel ramps up
• NAB posts higher cash earnings, keeps dividend firm
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares lead and market finally cracks 8-day losing streak

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Shares in WiseTech Global Ltd (ASX: WTC) have bounced 10% over the past month. But zoom out, and the picture still looks bruised, as the ASX tech stock is down 36% year to date and roughly 51% over the past 12 months.

That sharp pullback may have already caught the attention of bargain hunters.

But beyond valuation, there are several reasons why investors might want to take a closer look at WiseTech shares in May

Global platform with strong positioning

WiseTech is best known for its flagship logistics platform, CargoWise, which is used by freight forwarders, customs brokers, and global logistics providers.

The software helps manage complex international supply chains, handling everything from shipment tracking to customs compliance. With customers spanning multiple continents and deeply embedded workflows, WiseTech has built a powerful global footprint.

This kind of integration creates high switching costs and recurring revenue streams, a key advantage in the software space. As global trade continues to expand and digitise, WiseTech shares remain well positioned to benefit.

Leaning into AI, not fearing it

Artificial intelligence is one of the biggest questions hanging over many software companies and WiseTech is no exception.

Some investors worry that AI could disrupt traditional software models. But WiseTech appears to be taking the opposite approach by embracing the technology.

The company is embedding AI across its platform to improve automation, decision-making, and operational efficiency for customers. Internally, it is also deploying AI tools to lift productivity and reduce costs, with plans to reshape parts of the business over time.

There is also a broader strategic shift underway. WiseTech is moving toward a transaction-based revenue model, where earnings are more closely linked to the value delivered rather than simply the number of users.

If AI helps customers process more transactions and operate more efficiently, it could actually increase the value of WiseTech’s platform, not diminish it. That dynamic may strengthen its competitive moat, expand its long-term growth opportunity and inflate the WiseTech share price.

Strong broker support

Despite recent share price volatility, broker sentiment remains firmly positive.

Bell Potter currently has a buy rating on WiseTech shares, with a price target of $78.75. Based on recent levels around $44.00, that implies potential upside of close to 80% over the next year.

The broader market view is similarly optimistic. Data from TradingView shows that 14 out of 17 analysts rate the stock as a strong buy, with one buy and only two holds.

The average price target sits near $77, pointing to roughly 75% upside. At the more bullish end, some forecasts reach as high as $115.85, suggesting potential gains of nearly 165%.

Foolish Takeaway

WiseTech shares have taken a heavy hit over the past year, but the company’s fundamentals and long-term growth drivers remain compelling.

With a globally embedded platform, a proactive approach to AI, and strong backing from analysts, this beaten-down tech stock could be worth considering for investors willing to look beyond short-term volatility.

The post 3 reasons to buy WiseTech shares in May appeared first on The Motley Fool Australia.

More reading

• 10 excellent ASX shares to buy in May
• Up 14% in April, is it too late to buy WiseTech shares?
• Here are the top 10 ASX 200 shares today
• Top 10 ASX shares bought and sold in April
• Why Capstone Copper, Gentrack, Mineral Resources, and WiseTech shares are racing higher today

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

The National Australia Bank Ltd (ASX: NAB) share price is in focus today, after the bank reported half-year cash earnings excluding large notable items of $3,588 million, up 2.3% on the prior half, alongside a fully franked interim dividend of 85 cents per share.

What did National Australia Bank report?

• Cash earnings excluding large notable items rose 2.3% to $3,588 million
• Statutory net profit after tax fell 18% to $2,750 million
• Net interest income increased 2.3% to $9,163 million
• Net interest margin was 1.81%, three basis points higher than the previous half
• Interim dividend of 85 cents per share, fully franked
• Group Common Equity Tier 1 (CET1) ratio of 11.65%

What else do investors need to know?

NAB’s first-half result included a $949 million charge related to a change in software capitalisation policy, classed as a large notable item. Excluding this impact, the bank recorded solid underlying profit growth, supported by 5.4% growth in Business & Private Banking.

The bank saw Australian business lending rise 5.6% over the half. Home lending drawdowns through proprietary channels increased from 41.4% to 47.7%. Deposit balances in Business & Private Banking and Personal Banking grew 4.7%, anchored by strong transaction account growth.

NAB took a proactive step to strengthen its balance sheet, increasing forward-looking collective provisions by $300 million as a buffer against heightened geopolitical and economic uncertainty. Customer advocacy metrics continued to improve.

What did National Australia Bank management say?

NAB CEO Andrew Irvine said:

Continued disciplined execution of our strategy and ongoing momentum across our business is reflected in NAB’s 1H26 operating performance. Changes to our software capitalisation policy this period, consistent with the rapidly changing technology environment, have lowered cash earnings by $949 million. Excluding this large notable item (LNI), cash earnings were 2.3% higher than 2H25 with underlying profit up 6.4% supported by strong growth of 5.4% in Business & Private Banking (B&PB).

We are well placed to navigate a period of increased volatility. We will continue to manage our business for the long term to deliver sustainable growth and attractive returns for shareholders.

What’s next for National Australia Bank?

Looking ahead, NAB expects slower credit growth and continued volatility with geopolitical risks and lingering inflationary pressures. The bank’s focus remains on growing business banking, broadening its deposit base, and strengthening proprietary home lending.

NAB is also targeting productivity benefits exceeding $450 million for FY26, with cost growth expected to remain below 4.6%. Its capital and funding settings, including a discounted and partially underwritten dividend reinvestment plan, aim to keep the CET1 ratio solid in an uncertain environment.

National Australia Bank share price snapshot

Over the past 12 months, NAB shares have increased 11%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post NAB posts higher cash earnings, keeps dividend firm appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• What happened with ASX 200 banks stocks NAB and CBA in April?
• ASX 200 energy shares lead and market finally cracks 8-day losing streak
• These ASX financial stocks are bouncing, is it just the start?
• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

CSL Ltd (ASX: CSL) shares still haven’t managed to stage a convincing recovery.

The biotech heavyweight has fallen 13% over the past month and is down roughly 50% over the last year. The ASX stock is trading at $124.84 at the time of writing, hovering near its 52-week low.

That raises the obvious question: are CSL shares a buying opportunity, or a value trap investors should avoid?

Sector and company challenges

Healthcare stocks on the ASX have underperformed in 2026, following a widespread sell-off across the sector.

Investor capital has shifted toward energy producers, mining stocks, and more defensive plays, leaving healthcare names like CSL shares out of favour. At the same time, CSL’s own issues have compounded the decline in sentiment.

Previously considered one of the ASX’s most dependable growth companies, CSL has lost some of its shine. Earnings momentum has slowed, and the business has had to navigate a series of disruptions. It experienced softer vaccine demand, an unexpected restructure, and the abrupt departure of its CEO.

Adding to the pressure, recent developments in the US have clouded the outlook further. The removal of the US military’s annual flu vaccination requirement has materially changed expectations for influenza vaccine demand. That’s an important consideration given CSL’s sizable US exposure.

This has heightened concerns that vaccine revenues could weaken, particularly in areas where demand had been supported by mandates.

Core remains strong

Even so, writing off CSL shares entirely may be premature.

The company’s vaccine segment is not its primary earnings driver. Most of CSL’s profits are generated by its plasma therapies arm, CSL Behring.

This division focuses on plasma-derived treatments such as immunoglobulins, albumin, and clotting therapies used to treat rare and chronic conditions. CSL holds a leading global position in these markets, where demand continues to grow due to ageing populations and improved diagnosis rates.

In short, while one part of the business is facing headwinds, its core operations remain structurally sound.

Analyst outlook still optimistic

Market analysts remain broadly positive on the prospects of CSL shares prospects. Data from TradingView shows that 12 out of 18 analysts rate the stock as a buy or strong buy.

The most bullish price target sits at $267.60, suggesting potential upside of more than 100% over the next year. Even the lowest target of $152.35 implies a gain of around 22% from current levels.

Foolish Takeaway

CSL shares are clearly out of favour, and the near-term outlook remains uncertain. Ongoing risks — particularly around vaccine demand and US policy shifts — could continue to weigh on sentiment.

However, the company’s dominant plasma business and long-term growth drivers remain intact. For investors with a longer time horizon, the current weakness could present an opportunity.

The turnaround hasn’t arrived yet, but it may not be as far off as the market fears.

The post CSL shares halved, can analysts be right about a 100% rebound? appeared first on The Motley Fool Australia.

More reading

• How to shave a decade off retirement with 3 ASX stocks and ETFs
• 10 excellent ASX shares to buy in May
• Why these top ASX shares sank 10%+ in April
• How are Australia’s biggest ASX stocks really tracking in 2026?
• 3 ASX 200 shares for smart investors in May

Motley Fool contributor Marc Van Dinther 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. 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.

A new month is here, so what better time to consider some new additions to an income portfolio.

But which ASX dividend shares could be worth buying this month? Let’s take a look at three that stand out as top picks for income investors:

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend share to look at is Charter Hall Retail REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties. These are not the large discretionary shopping centres that rely heavily on fashion and luxury spending. Instead, the portfolio is focused on properties anchored by supermarkets and everyday retailers.

That distinction is important. People still need groceries, pharmacy products, and essential services regardless of the broader economic backdrop. This can make convenience retail more resilient than some other areas of commercial property.

Charter Hall Retail REIT also benefits from long leases and a tenant base that includes major supermarket operators. This provides a level of rental visibility, which is important for income generation.

With its focus on essential retail property, Charter Hall Retail REIT offers dividend exposure tied to everyday consumer spending rather than big-ticket purchases.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth considering in May is Rural Funds Group.

It is a property group with exposure to agricultural assets. Its portfolio includes farmland and related infrastructure leased to operators across different agricultural sectors.

This gives it a different income profile from traditional office, retail, or industrial property. Rental income is backed by agricultural land, which can provide diversification away from more common property exposures.

The appeal of Rural Funds is that it gives investors access to farmland without having to own or operate farms directly. The group collects rent from tenants, while the underlying assets remain tied to long-term demand for food and agricultural production.

Agriculture can still be affected by weather, commodity prices, and operating conditions. But the leased structure gives Rural Funds a clearer income model than direct farming exposure.

For investors seeking income from real assets, Rural Funds brings something different to the ASX dividend landscape.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a top pick for income investors is Transurban Group.

It operates toll roads in Australia and North America. The company’s assets sit in major urban corridors where traffic demand is supported by population growth, commuting, freight, and airport access.

Traffic volumes can fluctuate, particularly during weaker economic periods or disruptions. But over longer periods, urban growth and congestion tend to support demand for well-located road infrastructure.

With a portfolio of large-scale toll roads and exposure to long-term population growth, Transurban arguably remains one of the ASX’s most attractive income shares.

The post 3 excellent ASX dividend shares to buy in May appeared first on The Motley Fool Australia.

More reading

• How I’d invest $2,000 in high-yield ASX 300 shares
• How to become a millionaire on a $60,000 salary
• 3 ASX dividend stocks I’d buy if I were a retiree
• $250,000 to invest for passive income? Here’s how I would build a portfolio
• Is it time for investors to turn back to defensive ASX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT, Rural Funds Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Telix Pharmaceuticals Ltd (ASX: TLX) remains the most shorted ASX share despite its short interest easing to 16.1%. This radiopharmaceuticals company has been facing US FDA approval challenges. In addition, some short interest could be attributable to convertible-arbitrage hedging tied to Telix’s US$600 million convertible bond refinancing.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease slightly to 15.5%. A poor update from Domino’s Pizza US last week has cast further doubt on the pizza chain operator’s turnaround.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is up again since last week. Given that this medical device company’s shares trade on high earnings multiples, short sellers may think they are overvalued.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.2% of its shares held short, which is up week on week. Tough trading conditions in the wine market have weighed on the Penfolds owner’s performance.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.1%, which is down week on week. Short sellers appear to have been closing positions in the quick service restaurant operator after the release of a better than expected update.
• Zip Co Ltd (ASX: ZIP) has 11.8% of its shares held short. This is down slightly week on week. Short sellers aren’t giving up on this buy now pay later provider despite its strong quarterly update.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.7%, which is down week on week. This may be due to concerns that travel demand could be impacted by the Middle East conflict and higher airfares.
• Lotus Resources Ltd (ASX: LOT) has short interest of 11.5%, which is up week on week. Last week, this uranium producer’s shares crashed after retracting previously reported figures while it works through reconciliation processes.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.45%, which is down since last week. There are concerns about this uranium miner’s uncertain production outlook beyond 2026.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is down since last week. Valuation concerns are likely to be why short sellers are targeting this counter-drone technology company.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• These ASX financial stocks are bouncing, is it just the start?
• Here are the top 10 ASX 200 shares today
• Why Boss Energy, Coles, Evolution Mining, and Mineral Resources shares are charging higher today
• The five best ASX 200 stocks to buy and hold in April revealed
• Why these ASX shares jumped 15%+ in April

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock JB Hi-Fi Ltd (ASX: JBH) has fallen 34% since October 2025, as the chart below shows. I think this is a great time to invest in the business because a lower valuation offers a more compelling dividend yield.

JB Hi-Fi is a leading electronics and appliances business with four different businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S Trading.

The company has a lot to offer investors who want passive income, so let’s look at why it’s an appealing buy.

Appealing ASX dividend stock characteristics

One of the aspects I like to look at when it comes to dividend ideas is whether a company has a history of increasing its payout. I want to have a fairly high level of confidence that my investment is going to increase its dividend in any given year. If it’s increasing the payout, then it’s not decreasing it.

JB Hi-Fi grew its dividend every year between 2013 and 2022. The inflationary and high interest rate environment led to a slight reduction in 2023 and it has grown its payout each year since then.

So, over the last 13 years, the business has increased its dividend numerous times.

In the FY26 half-year result, JB Hi-Fi hiked its dividend per share by 23.5% to $2.10 following a 7.1% rise in earnings per share (EPS) to $2.80. I’m not expecting the next two dividend payments to grow as much as 20%, but the dividend yield could remain strong.

According to the projection on Commsec, JB Hi-Fi is expected to deliver a pleasing payout in FY26, with an estimated annual payment of $3.41, which translates into a potential grossed-up dividend yield of 6.25%, including franking credits, at the time of writing.

Pleasingly, the JB Hi-Fi dividend per share is expected to rise to $3.51 per share in FY27 and then $3.83 per share in FY28.

Why this looks like a good time to invest

The ASX dividend stock is a top performer in the retail sector. It’s usually a good idea to own the leader in the industry.

JB Hi-Fi highlights multiple competitive advantages, including its scale (as the number home consumer electronics and home appliances), a low-cost operating model (including a highly productive floor space of sales per square metre), its multichannel capabilities, and the people and culture.

It’s understandable that some investors treat the JB Hi-Fi share price as a cyclical name exposed to discretionary spending. But, I think spending on devices like smartphones and appliances is more defensive than some investors are giving it credit for, therefore the large decline of the JB Hi-Fi share price could be an opportunistic time to invest.

According to Commsec, the business is now valued at 17x FY26’s estimated earnings.

The post 1 ASX dividend stock down 34% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares scoring upgraded ratings this week
• 3 star ASX dividend income stocks for the rest of 2026
• Consumer discretionary shares to target for a long-term rebound
• 2 ASX blue-chip shares offering big dividend yields
• 5 ASX 200 shares that could be a bargain right now

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

Investors looking for exposure to the energy sector do not have to limit themselves to Australian oil and gas shares.

There are ASX exchange traded finds (ETFs) that provide access to global energy giants in a single trade. One fund that does this is BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL).

What is the FUEL ETF?

The BetaShares Global Energy Companies ETF is designed to track an index made up of the largest global energy companies outside Australia, before fees and expenses.

The fund is also hedged into Australian dollars. This means it aims to reduce the impact of currency movements between the Australian dollar and offshore markets.

The FUEL ETF gives investors exposure to some of the biggest energy companies in the world, including Shell (LSE: SHEL), Chevron (NYSE: CVX), and Exxon Mobil (NYSE: XOM).

These companies are very different from many Australian-listed energy businesses. They are larger, more geographically diversified, and often vertically integrated across exploration, production, refining, distribution, and trading.

That scale can be important. Global energy majors typically have deep balance sheets, broad asset bases, and operations across multiple regions. This can provide exposure to global energy demand without relying on a single project, basin, or domestic market.

The fund’s top holdings also include TotalEnergies (LSE: TTE), Siemens Energy (ETR: ENR), BP (LSE: BP), ConocoPhillips (NYSE: COP), Enbridge (TSX: ENB), Canadian Natural Resources (TSX: CNQ), and Suncor Energy (TSX: SU).

The fund uses a passive, index-tracking approach. This means investors are not paying for an active manager to pick energy stocks. Instead, it provides broad exposure to the sector through a rules-based portfolio.

ASX ETF tipped as a buy

According to The Bull, the team at Fairmont Equities believes that investors should be considering this ASX ETF.

This week, it has recommended the fund as a buy for a second time. This is due to its belief that the outlook for global energy prices has strengthened. The expert said:

I recommended this exchange traded fund as a buy in TheBull.com.au in mid February because I believed the energy sector was poised to move substantially higher. With the onset of the war in Iran after my recommendation, I’m now more convinced that energy prices will increase from here given supply disruptions.

This ETF captures the largest global oil and gas companies. This ETF broke out of a multi-year trading range earlier this year, and any dip provides a buying opportunity, in my view.

Ultimately, what happens in the Middle East will likely have the biggest impact on the performance of the BetaShares Global Energy Companies ETF in the near term. If a peace deal is agreed between the US and Iran, oil prices and the FUEL ETF could come under pressure.

The post Expert names 1 ASX ETF to buy this week appeared first on The Motley Fool Australia.

More reading

• 5 thematics driving ASX ETF investment today: expert

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Canadian Natural Resources, Chevron, and Enbridge. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BP, ConocoPhillips, and Siemens Energy Ag. 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.