Tag: Stock pick

The most shorted ASX shares tell investors which companies professional investors expect to suffer.

The latest short position reports from ASIC, covering the week to 1 September 2026, contain two names that have each had their respective issues.

One company is shorted because it is losing money.

The other is shorted because it made too much, too quickly.

The 10 most shorted ASX shares right now

DroneShield Ltd (ASX: DRO) sits at the top of the list with 15.37% of its register sold short.
Lotus Resources Ltd (ASX: LOT) follows at 15.04%, then 4DMedical Ltd (ASX: 4DX) at 12.37%.
Domino’s Pizza Enterprises Ltd (ASX: DMP) is at 11.98% and Treasury Wine Estates Ltd (ASX: TWE) at 11.74%.

The week-on-week movement is worth noting.

CAR Group Ltd (ASX: CAR) has dropped out of the top ten entirely, and Elders Ltd (ASX: ELD) has taken its place.

DroneShield’s short interest actually rose, from the 14.9% recorded a week earlier, despite the shares already having fallen sharply.

DroneShield: Shorted because it lost money

DroneShield has become the most shorted stock on the market for reasons that become clearer when investors look at the company’s annual accounts.

First-half revenue rose 74% to $125.8 million, which is a strong number.

Underneath it, gross margin fell from 65.3% to 60.0%, underlying EBITDA swung to a $12.4 million loss, and the statutory result was a $32.2 million loss, compared with a $2.1 million profit a year earlier.

The company also has an ASIC investigation running into share trading and disclosures from November 2025.

The counter-argument is that the balance sheet is untouched.

DroneShield holds $180 million of cash with no debt and has reaffirmed FY 2026 revenue guidance of $250 million to $270 million.

The shares are down about 74% from their high, which is a lot of scepticism already in the price.

PLS Group: Shorted because it made too much

PLS Group Ltd (ASX: PLS) is the opposite case entirely.

FY26 revenue rose 152% to $1.93 billion, underlying EBITDA reached $1.14 billion at a 59% margin, and the company swung from a $196 million loss to a $526 million profit.

The company resumed dividends with a fully-franked 5 cents per share.

Shares rocketed 30% in August alone and have roughly doubled over twelve months.

So why short it?

Because the result rests on a realised spodumene price of US$1,488 per tonne, more than double the prior year.

FY27 capital expenditure is guided at $620 million to $685 million, roughly double the prior year, which competes directly with the dividend just restored.

Lithium has always been a violently cyclical business, and bears are betting the cycle turns before the capital is spent.

Managing director Dale Henderson said of the results:

That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share.

Foolish takeaway

Short interest is a reading list, not a verdict.

Plenty of heavily shorted companies go on to perform perfectly well, and a crowded short position can unwind violently.

What I take from this particular table is that the most shorted ASX shares are not all the same bet.

For DroneShield, the question is profitability, and for PLS Group, it is the lithium price.

The post What are the most shorted ASX shares on the market right now? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX defence shares to buy right now
• Here are the top 10 ASX 200 shares today
• 3 reasons to buy DroneShield shares after their 74% decline
• These are the 10 most shorted ASX shares
• 9 ASX shares downgraded by experts post-results this week

Motley Fool contributor Mark Verhoeven 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 Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, and Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk and are seeking strong returns for your portfolio, then read on.

That’s because the team at Bell Potter believes the ASX stock in this article could rise over 85%.

Which ASX stock?

The stock that the broker is bullish on is Devex Resources Ltd (ASX: DEV).

It is a Perth-based uranium company focused on the Alligator Rivers Uranium Province (ARUP) on the north-western margin of the Northern Territory’s McArthur Basin. 

Bell Potter notes that the ASX stock has consolidated a district-scale land position with over 50km of highly prospective fault corridors which host existing uranium discoveries. 

The broker has been pleased with recent exploration progress and believes there’s more to come. It said:

One month in, the program has delivered encouraging results. At the KP Prospect (2km radon anomaly), DEV hit a 10m-wide fault breccia above the unconformity, geochemically similar to the geology overlying the likes of Jabiluka. Big Radon Prospect (3km radiometric and bedrock alteration anomaly) drilling has identified a 20m wide fault zone and down hole gamma reporting 1.6m at 680ppm eU3O8 in chlorite altered schist with further assays pending. 

At Sandfire, drilling will test for the position of the Angularli Fault Zone along strike from Deep Yellow’s 32.9Mlb U3O8 deposit. DEV continues to work-up prospects by relogging historic drill core and analysis of recently consolidated datasets. A recent airborne hyperspectral survey of DEV’s granted tenements will add further data granularity. The historic Caramal deposit (6.5Mlbs at 0.31% U3O8) provides an important geological analogue.

Big potential returns

According to the note, Bell Potter has put a speculative buy rating and 41 cents price target on the ASX stock.

Based on its current share price of 22 cents, this implies potential upside of just over 85% for investors over the next 12 months.

Commenting on its buy thesis, the broker said:

The key value catalysts for DEV include uranium market fundamentals, exploration results and M&A-led growth. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. 

DEV has embarked on a systematic exploration program across a district-scale consolidated landholding in a historical but underexplored uranium province analogous to Canada’s Athabasca Basin, a region supplying around one quarter of the world’s uranium needs. We expect DEV to be disciplined in further consolidating uranium assets in support of its ambitious growth targets. At 30 June 2026, DEV had cash of $27m.

The post Guess which ASX stock could rise 85% appeared first on The Motley Fool Australia.

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• What are the most shorted ASX shares on the market right now?
• How many ANZ shares do you need for $8000 of passive income?
• How much is needed in superannuation for $3,000 in weekly passive income?

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.

Working out how many ANZ shares you need to generate $8,000 of annual passive income is an important exercise.

The bank currently yields 4.38% on a share price around $38.

That sounds modest.

Once franking credits are included the picture changes considerably, and so does the amount of capital required.

The maths behind $8,000 from ANZ shares

ANZ Group Holdings Ltd (ASX: ANZ) has paid 166 cents per share over the past twelve months.

That comprises an 83 cent final dividend franked at 70%, paid last December, and an 83 cent interim dividend franked at 75%, paid on 1 July.

Divide $8,000 by $1.66 and you need 4,820 shares.

At $37.93 each, that is an investment of roughly $182,800.

What franking credits change

The calculation looks quite different at tax time.

At 75% franking and a 30% company tax rate, each dollar of dividend carries about 32 cents of franking credit.

That lifts the grossed-up dividend to roughly $2.19 per share.

On that basis you need about 3,650 ANZ shares, or an investment near $138,300.

The franking credits have saved you more than $44,000 of capital.

Whether you actually receive that benefit depends on your marginal tax rate, and retirees in pension phase capture the most of it.

Can ANZ keep paying it?

This is the important question to ask for long-term investors.

The half-year result to 31 March delivered cash profit of $3.78 billion, up 14% on the prior half excluding significant items.

Cash return on tangible equity improved 161 basis points to 11.6%, and the cost-to-income ratio fell from 54.6% to 49.4%.

Common equity tier one capital was 12.39%.

On top of this, the August quarterly update was steady rather than spectacular.

Cash profit was $1.90 billion, up 1% on the first-half quarterly average.

Net interest margin edged up one basis point to 1.54%, and capital strengthened again to 12.51%.

The individual credit impairment charge was just $65 million, or three basis points annualised.

Chief executive Nuno Matos kept the message simple:

Our balance sheet and capital position remain strong, and we are staying close to our customers should they need support.

The risk with ANZ shares

Two risks deserve attention before investors commit $138,000 to a single bank.

The first is regulatory.

APRA raised ANZ’s capital add-on to $1 billion in April 2025 alongside a court enforceable undertaking over non-financial risk management, and that overlay has not been removed.

The bank also booked a NZ$125 million provision for a New Zealand class action in the third quarter.

The second is concentration.

Suncorp Bank integration is 57% complete and the single customer front-end is 45% complete, both on schedule, but integrations are where banks tend to find unpleasant surprises.

Foolish takeaway

ANZ shares can produce $8,000 a year, and the capital required is either $182,800 or $138,300 depending on whether franking credits count for you.

I would treat the grossed-up number as the realistic one for most Australian investors.

What I would not do is build the whole income stream from a single bank on a price-to-earnings ratio above 19.

Allocating the same capital across three or four payers yields a little less but removes a great deal of risk.

The post How many ANZ shares do you need for $8000 of passive income? appeared first on The Motley Fool Australia.

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• How much superannuation do I need to retire with a $50,000 annual passive income?
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• What’s driving the ASX 200 higher today?

Motley Fool contributor Mark Verhoeven 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.

Having a goal in mind for how much income you’d like to receive in retirement can be a very comforting strategy.

So how much do you need? What most of us aim for is a comfortable retirement, which means something different to everyone.

But it’s fair to say that an income stream of $3,000 per week would provide a standard of living most people would deem very comfortable.

How much is needed for a comfortable retirement?

Indeed, the Association of Superannuation Funds of Australia (ASFA) estimates singles will need $55,923 per year to fund a comfortable retirement. So $3,000 per week, or $156,000 per year, is well above this.

The ASFA figure does assume a retiree owns their own home and draws a part pension from the age of 67 when they become eligible.

So, how much superannuation would you need to generate $3,000 per week in passive income?

For simplicity’s sake, I will assume that a retiree is living off of dividends and not drawing down any capital.

Naturally, how much you would need in superannuation savings depends on what sort of dividend yield you can regularly rely on.

If the figure was just 5%, you would need $3.12 million in superannuation savings.

I would argue that this figure is too low, as retirees who are paying a zero per cent tax rate get the benefit of franking credits – that is, they get paid back the tax already paid by the companies whose shares they own.

In practice, this means that if a company is paying a 5% dividend yield, what is called the “grossed up” yield comes out at 7.14%.

If you were able to maintain a 10% dividend yield, you’d only need $1.56 million in superannuation, but I’d argue that somewhere in the middle, let’s call it 7.5%, is realistic.

At this level you’d need $2.08 million in retirement savings.

Which shares deliver good dividend yields?

So, what are some shares you might consider investing in to deliver these sorts of returns?

Keep in mind that companies with excessively high returns might not be able to sustain them over time.

A class of shares that tends to offer stability over time is infrastructure. In this sector, gas pipeline operator APA Group Ltd (ASX: APA) pays a 5.29% dividend yield, 31% franked, while toll roads operator Atlas Arteria Ltd (ASX: ALX) pays 8.84% with no franking.

Among financial services stocks, Regal Partners Ltd (ASX: RPL) is paying 11.15%, fully franked, while among the banks, Westpac Banking Corporation (ASX: WBC) is paying 4.4%.

Retailer Universal Store Holdings Ltd (ASX: UNI) is paying 5.67% (fully franked), while major retailer Coles Ltd (ASX: COL) is paying 3.29% fully franked.

There are also a diverse array of exchange traded funds such as the Betashares Australian Dividend Harvester (ASX: HVST) which are focussed on dividend payouts, with this one yielding 5.53%.

So as you can see, it’s possible to build a portfolio returning a decent yield, which can help hit your income targets.

The post How much is needed in superannuation for $3,000 in weekly passive income? appeared first on The Motley Fool Australia.

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• How I’d target $5,000 a year in passive income from ASX shares

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

Austal shares climbed again this week, extending a run that has now added more than 30% since July.

The catalyst for this? The possibility that a second buyer has appeared for the company’s American shipyard.

Why Austal shares are moving

Austal Ltd (ASX: ASB) confirmed on Monday that it had held an initial discussion with Wildcat Infrastructure, a United States investment firm, after media reports identified it as a potential buyer of Austal USA.

The company was clear that it had not received a formal offer.

The reason the market reacted at all is that a bidder already exists.

Hanwha Defence USA lodged a non-binding, indicative proposal in August, and the board granted it a four-week due diligence window.

A second interested party changes the negotiating dynamic significantly for Austal.

What Hanwha has actually offered

Hanwha’s proposal values Austal USA at between US$1.05 billion and US$1.2 billion on an enterprise value basis, cash and debt free.

It is an offer for the shares in the Austal USA holding entities only.

It explicitly excludes the listed shares in Austal Limited, the Australasian operations across Australia, the Philippines and Vietnam, and the Strategic Shipbuilding Agreement with the Commonwealth.

Completion would require approval from CFIUS, the Defense Counterintelligence and Security Agency, and United States antitrust regulators.

The board set out its thinking in the announcement.

The Austal Board and its advisers have carefully assessed the Proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal.

Hanwha is already Austal’s largest shareholder with 19.9% of the register, a stake approved by the Treasurer in December 2025 with conditions attached.

The FY26 result behind the bid

Austal’s full-year numbers explain why the American business is the one on the block.

Revenue rose 11% to $2.03 billion and the order book reached a record $16.5 billion.

The Australasian division produced record earnings before interest and tax of $85.3 million, up 137%.

Austal USA went the other way, posting a $202.8 million EBIT loss after provisions on legacy Navy programs, which dragged the group to a statutory loss of $53.6 million.

Chief executive Paddy Gregg described the Australian side as follows:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

What a sale would mean for Austal shares

Austal’s whole market capitalisation is roughly $1.8 billion.

The indicative value placed on Austal USA alone is between A$1.5 billion and A$1.7 billion.

If a sale completed near that range, shareholders would be left holding a debt-free Australian shipbuilder with record earnings and a decade of committed work, plus a very large pile of cash.

However, investors should nonetheless adopt a degree of caution.

Hanwha’s proposal is non-binding, Wildcat has made no offer, and United States regulatory approval is not a formality.

Foolish takeaway

Austal shares are still down over twelve months, which tells you how much damage the American contracts did.

A competitive process for Austal USA would be the fastest available route to recovering some of that.

Ultimately, the Australian business is performing well enough to justify holding whatever happens, and that is the better reason to own Austal shares today.

The post Austal shares are surging. Is a bidding war brewing? appeared first on The Motley Fool Australia.

More reading

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• Austal shares jump again as takeover interest heats up
• Buy, hold, sell: Boss Energy, Austal, Liontown shares
• Down 28% to 46%: Are these beaten-down ASX shares cheap buys?
• Austal shares jump despite a $54 million loss. Here’s why investors are buying

Motley Fool contributor Mark Verhoeven 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.

Ten years is a long time in the share market. Companies rise and fall, technology changes, and entire industries can look very different by the end of a decade.

That is why I think ASX exchange traded funds (ETFs) can be such a good fit for long-term investors.

They allow investors to back markets, investment styles, and major trends without needing every individual stock pick to work out.

With that in mind, here are three ASX ETFs that I think could be excellent buy and hold options for the next 10 years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a strong option for investors who want long-term exposure to some of the world’s leading growth companies.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. That means investors gain exposure to businesses involved in artificial intelligence, cloud computing, software, semiconductors, ecommerce, digital advertising, streaming, and consumer technology.

I think technology is likely to keep playing a larger role in how businesses operate and how people work, shop, communicate, and spend their time over the next decade. The Betashares Nasdaq 100 ETF gives investors a way to own a collection of businesses at the centre of that change, such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World ex-US Shares Index ETF is another ASX ETF to consider for the long term.

This fund gives investors exposure to a large group of companies outside the United States, including businesses across Europe, Japan, Asia, emerging markets, and other parts of the world. That can be valuable for investors who already have plenty of US exposure.

After all, the next decade will not necessarily be dominated by one country or one market.

This ASX ETF allows investors to participate if growth comes from areas such as Asian consumer spending, European industrials, Japanese companies, emerging market financials, or global healthcare. It is a simple way to spread investments across a very large part of the global economy.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund takes a selective approach to buying US shares. Rather than simply buying the biggest companies, it focuses on businesses believed to have sustainable competitive advantages and attractive valuations.

Those advantages could come from strong brands, cost leadership, intellectual property, network effects, or customers that are difficult to lose.

This could be a good thing when investing over a 10-year period. Businesses with genuine competitive advantages have a better chance of protecting profits and compounding earnings for many years.

The valuation discipline is important as well, because even a great company can be a poor investment if investors pay far too much for it.

For investors looking for a more selective way to own quality US businesses, I think the VanEck Morningstar Wide Moat ETF could be a strong long-term choice.

The post 3 of the best ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The latest property data from Cotality has indicated that Australian home values continue to fall. 

Cotality’s national Home Value Index fell 0.9% in August, marking a fifth consecutive month of decline and taking national home values 3.6% below the market peak recorded in March.

Property snapshot

According to the report, home value declines spread sharply across Australia’s housing market through winter, with home values falling across 93% of capital city suburbs. Every capital city except Darwin has recorded a decline over the past three months.

Tim Lawless, Cotality’s Research Director, said the latest figures show the downturn is no longer confined to select markets or higher-value segments. 

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

The proportion of capital city suburbs recording a fall in home values more than doubled through winter, rising from 45.8% in autumn to 93%, highlighting a much broader weakening in housing conditions.

How does this impact real estate shares?

As investors look at these numbers, the important distinction is that falling Australian house prices do not automatically mean all ASX property stocks will suffer.

However, there are some important considerations. 

Firstly, residential developers – these are likely the most vulnerable. 

Companies selling new houses/land can be hit by lower selling prices, slower presales, cancellations and weaker margins. 

If the housing correction continues, these equities are the ones I would be most cautious about.

Looking at REITs, falling residential house prices don’t directly determine the value of office, industrial, logistics, retail or healthcare property. 

For REITs, interest rates, bond yields, debt costs, occupancy and rental growth can matter considerably more. 

Finally, property/infrastructure owners with long leases are potentially relatively defensive.

Retail, logistics, healthcare and other assets with strong occupancy and contractual rental increases can continue generating cash flow even while residential property falls. 

Why interest rates are the bigger issue 

While investors may focus on dwelling prices, interest rates are the more important issue at hand. 

The housing decline is partly a consequence of higher borrowing costs, so the same monetary tightening that hurts residential property can hurt listed property. 

Higher rates increase REIT financing costs, which can reduce distributions and funds from operations. 

This can push property valuations lower and ultimately weigh on share prices. 

Based on these factors, the ASX real estate shares that could offer defensive profiles are: 

• Goodman Group (ASX: GMG) – Major exposure to logistics and data centres rather than Australian residential property.
• GPT Group (ASX: GPT) – More diversified across office, retail and logistics and less directly exposed to the residential downturn.

The post Home values decline for a 5th straight month – what does it mean for ASX real estate shares? appeared first on The Motley Fool Australia.

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

ASX defence shares have had a wild ride this year.

One company in the sector is fielding takeover approaches from two directions at once.

Another has fallen 74% from its high.

Whereas a final one has just delivered its first genuinely profitable half at scale.

All three are funded by the same wave of government spending underpinning the defence sector. This begs the question, why are there so many different narratives?

Why ASX defence shares have a decade-long tailwind

The money behind this sector is far from speculative.

Australia has committed to lifting defence spending toward 3% of GDP by 2033, which the Australian Strategic Policy Institute (ASPI) puts at roughly $96.6 billion a year in its budget brief.

That is an increase of about $53 billion on previous projections.

However, ASPI also makes the fair point that only around four cents in every announced dollar actually lands inside the current budget year.

The build-out is significant, but it is a decade-long story, and that backdrop underpins every one of the ASX defence shares below.

1. Austal Ltd (ASX: ASB)

Austal is the cheapest name here, yet also the most complicated.

FY26 revenue rose 11% to $2.03 billion, and the order book reached a record $16.5 billion.

The Australasian business delivered record earnings before interest and tax of $85.3 million, up 137% on the prior year.

The group still posted a statutory loss of $53.6 million, because provisions on legacy United States Navy contracts drove a $202.8 million EBIT loss at Austal USA.

That American problem may now be for sale.

Hanwha Defence USA has offered between US$1.05 billion and US$1.2 billion for Austal USA alone, and a second party has since held preliminary talks.

Austal’s entire market capitalisation is only about $1.8 billion.

Chief executive Paddy Gregg was clear about what this means strategically for the company:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

2. DroneShield Ltd (ASX: DRO)

DroneShield is the contrarian pick of the three.

DoneShield shares change hands near $1.75, down from a 52-week high of $6.71, a decline of roughly 74%.

The half-year numbers explain a good deal of that.

Revenue jumped 74% to $125.8 million, yet underlying EBITDA swung to a $12.4 million loss and the statutory result was a $32.2 million loss.

The balance sheet is the reassuring part, with $180 million of cash and no debt at all.

Management has reaffirmed FY2026 revenue guidance of $250 million to $270 million, and committed revenue already stands at $240.4 million.

3. Electro Optic Systems Ltd (ASX: EOS)

Electro Optic Systems had the best half of the three by a wide margin.

Revenue surged 283% to $168.8 million and underlying EBITDA reached a positive $21.6 million, against a $14.9 million loss a year earlier.

The unconditional order book almost doubled to a record $846 million.

The company still reported a statutory loss of $33.7 million, though most of that came from revaluing the MARSS acquisition payment after its own share price rose.

Chief executive Dr Andreas Schwer summed the period up:

The first half year has been exceptionally good. It has been a record year for Electro Optic Systems.

Foolish takeaway

The temptation with ASX defence shares is to treat the whole sector as a single trade. However, it is nothing of the sort.

Austal is being repriced by bidders, Electro Optic Systems by earnings, and DroneShield by scepticism.

I would rather own all three in different sizes than try to pick the one winner.

The spending is committed for a decade, which is a long time for three very different businesses to sort out their respective problems.

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

More reading

• Austal shares jump again as takeover interest heats up
• 3 reasons to buy DroneShield shares after their 74% decline
• These are the 10 most shorted ASX shares
• ASX shares investors are getting younger and trading more often: CBA report
• DroneShield shares have fallen 44% in 2026. Here’s why I’d buy the dip

Motley Fool contributor Mark Verhoeven 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 DroneShield and Electro Optic Systems. 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 materials stock Solstice Minerals Ltd (ASX: SLS) continued its stellar run yesterday. It rose 10% to open the week on Monday. 

The mineral exploration company rose 10% on Monday, and is now up an impressive 770% in the last 12 months. 

Why is this ASX materials stock soaring?

Solstice Minerals is a Western Australian copper-gold explorer focused on its flagship 100%-owned Nanadie Copper-Gold Project (Nanadie). 

It has been one of the copper shares to exploded in the last year.

This has come because investors are simultaneously pricing in record copper prices, tightening supply and a structural demand boom. 

At the same time, AI data centres, electricity grids, EVs, renewables and broader electrification are creating a powerful long-term demand story for copper.

Additionally, U.S. tariff uncertainty has pulled large volumes of metal into America and further tightened availability elsewhere. 

ASX copper miners have relatively fixed operating costs. This means every extra dollar in the copper price can translate into disproportionately higher margins, cash flow and project valuations. 

This has resulted in investors aggressively rerating both established producers and smaller exploration/development stocks. 

Why this stock can keep rising

A new report from Bell Potter has suggested this ASX materials stock still has more room for growth. 

The report highlighted that When the company bought the Nanadie site, the estimated resource was 40.4 million tonnes at about 0.40% copper, plus gold and silver.

However, since then, drilling results suggest that Nanadie is much larger than previously thought.

The mineralised zone is now around 100-200 metres wide, has been drilled to about 840 metres downhole, and extends over at least 1.3 km of strike. It is still open, meaning it could become larger.

In simple terms, Nanadie was originally thought to be a modest copper deposit. Drilling is showing that it could be a much bigger and potentially higher-grade deposit.

If the resource continues to grow and the project can eventually be developed into a mine, the company could be worth substantially more than it is today.

Big upside and buy rating 

Based on this analysis, Bell Potter has initiated coverage on this ASX materials stock with a speculative buy rating and $3.25 valuation. 

From yesterday’s closing price, this indicates an upside potential of approximately 32%. 

We initiate coverage of SLS with a SPECULATIVE BUY recommendation and a A$3.25/sh valuation. Nanadie is a genuinely large and still growing copper- gold system on granted mining tenure in a Tier-1 mining jurisdiction. We expect SLS will re-rate on release of ongoing exploration results and project development studies.

The post This ASX materials stock is up 700% this year and could be the next big copper winner appeared first on The Motley Fool Australia.

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

BHP Group Ltd (ASX: BHP) shares represent one business that most Australians will have exposure to in their superannuation fund.

Whether that’s the superannuation fund investing in it through an ‘Australian shares’ option, Australians picking an exchange-traded fund (ETF) that owns BHP shares, or directly buying BHP shares – it has a large presence on the ASX share market.

There’s now a sizeable gap in the market capitalisation between BHP and Commonwealth Bank of Australia (ASX: CBA) following a 53% rise of the BHP share price in the last year.

But, if I were considering investing in BHP shares directly in superannuation, I think it could be a wise idea to wait before investing.

ASX mining shares are volatile

I’m not afraid of ASX share market volatility. However, it’s important to recognise that miners are often cyclical.

That’s the nature of resource prices – they go up and down depending on supply and demand. Commodity prices don’t stay consistent every month or even year to year.

A business like BHP has fairly consistent operating costs, so a rise in revenue can significantly boost profitability thanks to operating leverage.

We saw that in the 2026 financial year, with revenue rising 15% to US$58.8 billion, profit from operations improving 23% to US$23.9 billion, and underlying attributable profit climbing 30% to US$13.2 billion.

When commodity prices strengthen, it can lead to great results. Copper was the big driver for BHP – the copper price improved 35% to US$5.74 per pound, helping copper underlying operating profit (EBITDA) improve 48% to US$18.2 billion.

But, I think it would be unwise to expect that the copper price will increase by another 35% in FY27, so I’m not expecting BHP to deliver another strong year of growth.

Miners are not usually the type of business to consistently grow earnings at a similar pace year after year. I think earnings are likely to bounce around.

Why I’d wait to buy BHP shares in superannuation

BHP is a very impressive operator, one of the best in the world at what it does.

However, I think the last decade has shown how the company’s earnings can be cyclical, particularly the iron ore earnings. So, there may be a time when the market is not as optimistic about the outlook for commodities as it is right now.

I’d rather buy when the BHP share price is relatively low, which happens when commodity prices are weaker.

I do believe there will be another opportunity to buy BHP shares at a better valuation, though I don’t know exactly when that will be. But, we don’t have to buy at this higher valuation. We should look at other opportunities in the meantime if we’re trying to generate good returns.

The post Why I’d wait to buy BHP shares in superannuation appeared first on The Motley Fool Australia.

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