Tag: Stock pick

The Woodside Energy Group Ltd (ASX: WDS) share price is in focus after the company released its first quarter 2026 report, revealing operating revenue of US$3.26 billion, up 7% from the prior quarter. Quarterly production reached 45.2 million barrels of oil equivalent (MMboe), with key assets like Pluto LNG achieving 100% reliability.

What did Woodside report?

• Operating revenue: US$3,261 million, up 7% from Q4 2025
• Quarterly production: 45.2 MMboe, down 8% due to seasonal weather
• Average realised price: US$63/boe, up 11% from Q4 2025
• Total sales volumes: 51.7 MMboe
• Capital expenditure: US$853 million; acquisitions: US$470 million
• Liquidity: approx. US$8.3 billion at 31 March 2026

What else do investors need to know?

Several major projects remain on schedule and budget. The Scarborough Energy Project was 96% complete at quarter-end, targeting first LNG cargo in Q4 2026, while the Trion oil project is 56% complete and aiming for first oil in 2028. Woodside assumed operational control at Beaumont New Ammonia, which exported its first cargo in February.

During the quarter, severe tropical cyclones affected Western Australian operations, temporarily reducing production, but all assets were safely restored. The company continued to progress portfolio changes, including the planned asset swap with Chevron and the upcoming transfer of Bass Strait assets from ExxonMobil.

What’s next for Woodside?

Woodside reaffirmed its full-year 2026 production, capital, and cost guidance. Key projects like Scarborough LNG and Trion oil remain on schedule, with Scarborough targeting first LNG cargo in Q4 2026. The company is also continuing its review for improved cost discipline and organisational efficiency under its new CEO.

Looking ahead, Woodside is focused on completing major turnarounds, advancing new energy projects like hydrogen, and progressing growth initiatives in LNG, ammonia, and oil. The company is maintaining a strong liquidity position while investing in both existing and emerging energy opportunities.

Woodside share price snapshot

Over the past 12 months, Woodside shares have risen 57%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress appeared first on The Motley Fool Australia.

More reading

• Zimplats shares: Production dips and costs rise
• Liontown shares: Expansion works begin at Kathleen Valley
• Regis Healthcare names Andrew Kinkade as new CEO
• Codan FY26 earnings surge more than 60% on strong communications segment
• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter

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 Zip Co Ltd (ASX: ZIP) have been on a wild ride.

At the time of writing, the buy now, pay later (BNPL) stock is up an impressive 52% over the past month. Zoom out, though, and the picture gets more mixed, down 38% over six months, but still up 43% over the past year.

So, is this just another spike, or could there be more upside ahead for Zip shares? Here are three reasons some investors are getting bullish.

Strong results and upgraded guidance

Zip gave the market plenty to like with its Q3 FY26 results, released earlier this month.

The company delivered record cash EBTDA of $65.1 million, marking a 41.5% increase year on year. Growth wasn’t limited to profitability either. Total transaction volume climbed 22.5%, while total income rose 20.2%. That kind of across-the-board momentum matters for Zip shares.

Even better, management didn’t just celebrate the quarter; it lifted expectations. Zip upgraded its FY26 group cash EBTDA guidance to at least $260 million and reaffirmed its broader targets for the year.

In other words, the company isn’t just performing well; it’s confident the momentum can continue.

US growth story gaining traction

Zip’s expansion in the US is shaping up as a major growth driver.

The company expects US transaction volume to jump more than 40% in FY26, a standout figure in a competitive market. At the same time, group operating margins are forecast to remain above 18%, suggesting growth isn’t coming at the expense of profitability.

That’s a key point. BNPL players have often been criticised for chasing growth at any cost. Zip’s latest numbers indicate it may be finding a better balance. It’s scaling up while maintaining credit quality and margin discipline.

If that trend holds, it could significantly strengthen the investment case for Zip shares.

Analysts see up to 122% upside

Broker sentiment is firmly on the side of Zip shares.

According to TradingView data, 11 analysts currently rate the stock as a buy or strong buy, a clear vote of confidence in its outlook.

And the price targets are just as eye-catching. The average target sits at $3.83, implying potential upside of around 57% from current levels. Some analysts are even more optimistic, with the highest target coming in at $5.40. That points to a possible 122% gain over the next year.

Of course, price targets aren’t guarantees. But they do highlight how much room some experts believe Zip shares still have to run.

Foolish Takeaway

Zip shares have already staged a strong rebound, but the combination of solid earnings growth, expanding US operations, and bullish analyst sentiment suggests the rally might not be over.

As always, volatility is part of the package with high-growth stocks like Zip. But for investors comfortable with the risks, this could be one to keep firmly on the watchlist.

The post 3 reasons to buy Zip shares appeared first on The Motley Fool Australia.

More reading

• Experts think the Zip share price can rise 48% in a year!
• These are the 10 most shorted ASX shares
• Up over 70% in a month, is it too late to buy Zip shares?
• Up another 9%, how much higher can Zip shares go?
• Why Navigator Global, St Barbara, Vulcan Energy, and Zip shares are racing higher today

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 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 Liontown Ltd (ASX: LTR) share price is in focus as the company announces early works and long-lead procurement are now underway for the planned expansion of its Kathleen Valley Lithium Operation. This marks the company’s first major step since its 2021 expansion study, with A$12 million committed to long-lead items and up to A$77 million expected before the final investment decision in Q1 FY2027.

What did Liontown report?

• Early works and procurement have commenced for the Kathleen Valley expansion project.
• Approximately A$12 million of capital committed to purchase a 5.5MW ball mill, with expenditure over the next year.
• Expected total cash expenditure for early works in FY2026 is between A$15–18 million.
• Total spending ahead of the final investment decision could reach up to A$77 million.
• Development will enable increased concentrate production and improved plant efficiency through debottlenecking.

What else do investors need to know?

Liontown is moving early to secure critical equipment and ramp up its expansion team, aiming to reduce risks linked to schedule delays and rising costs. The work program includes pre-development drilling, upgrading plant infrastructure, and improved mine services to support extra mining capacity.

This expansion study is focused on staged improvements, with each phase unlocking further production capability at Kathleen Valley. Details on future spending and expected output increases will be shared at the time of the final investment decision, targeted for the end of Q1 FY2027.

What did Liontown management say?

Managing Director and CEO Tony Ottaviano said:

The early works position Liontown to deliver additional spodumene concentrate production as we progress through each stage to capture a strengthening market. Expansion at Kathleen Valley is currently the most value-accretive growth available to Liontown, and these commitments lay the foundation for that growth and demonstrate our confidence in the market and the operation.

What’s next for Liontown?

Looking ahead, Liontown plans to keep developing the Kathleen Valley asset through staged growth and operational improvements. With early works now underway, the company is targeting increased production and enhanced plant performance over the next few years.

A final investment decision is expected by the end of Q1 FY2027, after which further details about capital costs and project outcomes will be released. Liontown’s strategy remains anchored on supporting strong lithium demand and building value for shareholders.

Liontown share price snapshot

Over the past year, Liontown shares have risen 316%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Liontown shares: Expansion works begin at Kathleen Valley appeared first on The Motley Fool Australia.

More reading

• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Regis Healthcare names Andrew Kinkade as new CEO
• Codan FY26 earnings surge more than 60% on strong communications segment
• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter

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.

The Regis Healthcare Ltd (ASX: REG) share price is in focus today after the company announced the appointment of Andrew Kinkade as its new Managing Director and Chief Executive Officer. Kinkade joins Regis with an extensive leadership background in aged care, healthcare and finance.

What did Regis Healthcare report?

• Appointment of Andrew Kinkade as new Managing Director & CEO, commencing 20 July 2026
• Total fixed remuneration of $900,000 per annum, inclusive of superannuation
• Short Term Incentive of up to 50% of TFR and Long Term Incentive of up to 100% of TFR, subject to performance
• Sign-on equity award of $1.6 million in Performance Rights, subject to shareholder approval

What else do investors need to know?

Andrew Kinkade brings more than 20 years of experience across aged care, healthcare, private equity, and investment banking, most recently serving as Managing Director at Bupa Villages & Aged Care. He has been recognised for leading operational and cultural transformation, driving both growth and improved care standards.

Kinkade replaces Dr Linda Mellors, who will complete her notice period in June after leading the company for over six years. The board expressed its appreciation for Dr Mellors’ significant contributions and steady leadership throughout her tenure.

What’s next for Regis Healthcare?

Kinkade’s appointment signals a focus on operational transformation and strengthening Regis’s position in Australia’s aged care sector. The Board noted his track record of leading growth in regulated, people-focused businesses, which aligns with Regis Healthcare’s strategic objectives.

Shareholders will vote on key elements of Kinkade’s remuneration package, including his sign-on equity award, at the upcoming Annual General Meeting. The company expects a smooth transition and ongoing delivery on its growth plans.

Regis Healthcare share price snapshot

Over the past 12 months, Regis Healthcare shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Regis Healthcare names Andrew Kinkade as new CEO appeared first on The Motley Fool Australia.

More reading

• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley
• Codan FY26 earnings surge more than 60% on strong communications segment
• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter

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 Domino’s Pizza Enterprises Ltd (ASX: DMP) took another hit on Tuesday, tumbling 11% to $15.85.

That extends a rough run for investors. The ASX stock is now down around 25% year to date and roughly 38% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed about 9% over the same period.

So, what’s going wrong, and do experts see a way back?

US weakness rattles confidence

The latest sell-off of Domino’s shares appears to have been triggered by an update from Domino’s Pizza Inc (NASDAQ: DPZ) on Monday.

The US business reported same-store sales growth of just 0.9%, falling well short of market expectations for a 2.3% increase. It also trimmed its full-year guidance, raising concerns about demand in a tough consumer environment.

That matters for Australian investors. While Domino’s Pizza Enterprises operates across multiple regions, the US update has spooked the market. Investors are increasingly worried that similar pressures — including cost-of-living constraints and softer discretionary spending — could be weighing on Domino’s operations globally.

In short, if the world’s largest Domino’s franchise is feeling the pinch, others might not be far behind.

Low valuation… for a reason?

After such a sharp decline, Domino’s shares are now trading on relatively low valuation multiples compared to historical levels.

At first glance, that might look like a bargain. But not everyone is convinced.

Bell Potter has initiated coverage with a hold rating and an $18 price target. While it acknowledges the cheaper valuation, it argues that the discount is justified given the company’s modest earnings growth outlook.

In other words, the market may not be overly pessimistic. It may simply be pricing in slower growth.

What next for Domino’s shares?

The broader analyst picture is mixed.

According to TradingView data, 10 out of 18 analysts rate the stock as a hold. Five see it as a buy or strong buy, while three recommend selling.

That split reflects the uncertainty surrounding the business. The average price target sits at $20.07, implying potential upside of around 27% from current levels. The most bullish forecasts suggest gains of nearly 80%, while the most cautious point to a further 18% downside, with a $13 target.

That’s a wide range and a sign that visibility is still limited.

Foolish Takeaway

Domino’s shares have been under heavy pressure, and the latest US update hasn’t helped sentiment.

While the stock now looks cheaper, the key question is whether earnings can stabilise and return to growth.

For now, analysts aren’t fully convinced. And until there’s clearer evidence of a turnaround, Domino’s may remain stuck between bargain territory and a potential value trap.

The post Down 38%: Are Domino’s shares ready to recover? appeared first on The Motley Fool Australia.

More reading

• Why Beach Energy, Domino’s, Origin Energy, and Pantoro Gold shares are dropping today
• Why are Bega Cheese and Dominos shares crashing today?
• These are the 10 most shorted ASX shares
• Buy, hold, sell: Collins Foods, Domino’s, and Guzman Y Gomez shares
• These are the 10 most shorted ASX shares

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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Codan Ltd (ASX: CDA) share price is in focus today after the company announced it expects FY26 EBIT to hit $235 million and NPAT to reach $170 million, both up more than 60% from last year.

What did Codan report?

• FY26 EBIT expected to be approximately $235 million
• Net profit after tax (NPAT) anticipated at around $170 million, up over 60% year-on-year
• Communications business revenue growth to finish at the top end of the 15–20% targeted range
• Communications segment profit margin expected to reach 30% in FY26, ahead of schedule
• Minelab revenue in 2H FY26 tracking ahead of a strong first half

What else do investors need to know?

Codan’s Communications business has been the standout, thanks to sustained demand from defence customers and growth in software-defined radios (SDRs). The Command-and-Control (Zetron) division is on track to deliver steady revenue across both halves of the year.

Minelab, Codan’s gold detection arm, has performed strongly, benefitting from a high gold price and new product success. The company has confirmed its second-half results should exceed those delivered in the first half.

What’s next for Codan?

Investors can expect Codan to release its full-year FY26 results on 20 August 2026. Management is also working toward maintaining strong momentum, with a particular focus on sustaining margins and capitalising on technology-driven solutions across its business.

The group plans to keep building on its communications and gold detection strengths to support ongoing profit growth in FY27 and beyond.

Codan share price snapshot

Over the past 12 months, Codan shares have risen 133%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Codan FY26 earnings surge more than 60% on strong communications segment appeared first on The Motley Fool Australia.

More reading

• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley
• Regis Healthcare names Andrew Kinkade as new CEO
• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter

The Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company reported a strong March quarter, with $143.1 million in operating cash flow—a new quarterly record—and a maiden interim dividend of 5 cents per share.

What did Capricorn Metals report?

• Gold production for Q3 FY26: 30,358 ounces (Q2: 30,476oz)
• All-in-sustaining cost (AISC) for Q3: $1,617 per ounce (Q2: $1,627/oz)
• Revenue from gold sales: $204 million on 29,009 ounces sold at $7,034/oz
• Record quarterly cash flow from operations: $143.1 million (Q2: $122.4m)
• Cash and gold on hand at 31 March: $507.6 million
• Maiden fully franked interim dividend: 5 cents per share, totalling $22.8 million

What else do investors need to know?

The company says it remains on track for the upper end of its FY26 production guidance—115,000 to 125,000 ounces at an AISC of $1,530 to $1,630 per ounce. Year-to-date gold production totals 93,152 ounces at an AISC of $1,623 per ounce.

Development of the Karlawinda Expansion Project (KEP) progressed well, with key infrastructure largely complete and commissioning targeted for Q1 FY27. Capricorn also continues to advance environmental permitting and planning at the Mt Gibson Gold Project (MGGP), alongside an active exploration program.

Gold exploration at MGGP and KGP delivered high-grade results, expanding the potential for long-term underground operations. The company highlighted strong drill intercepts and continued investment in both brownfields and greenfields exploration across its tenements.

What’s next for Capricorn Metals?

Capricorn expects to maintain current mining and development momentum, with the KEP on track for completion and ramp up in the coming financial year. The expanded plant is expected to lift sustainable production to around 150,000 ounces per year once commissioned, with detailed FY27 guidance to follow completion.

The board’s maiden dividend reflects Capricorn’s strong balance sheet and confidence in self-funding growth from internal cash flows, even as investment continues across development and exploration.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Capricorn Metals reports record cash flow and first dividend in March 2026 quarter appeared first on The Motley Fool Australia.

More reading

• Zimplats shares: Production dips and costs rise
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley
• Regis Healthcare names Andrew Kinkade as new CEO
• Codan FY26 earnings surge more than 60% on strong communications segment

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.

The Westgold Resources Ltd (ASX: WGX) share price is in focus today after the company reported a $285 million underlying cash build for March 2026, increasing its treasury to $856 million and keeping FY26 gold production guidance on track.

What did Westgold Resources report?

• Gold production of 93,145 ounces in Q3 FY26 (288,500oz YTD)
• Gold sales of 69,900 ounces at a record $7,080/oz, delivering $495 million in revenue
• All-In Sustaining Cost (AISC) ex-OPA of $2,931/oz; AISC including OPA of $3,338/oz
• Underlying quarterly cash build of $285 million; net mine cash inflow $254 million
• Closing cash, bullion, and liquid investments of $856 million, up $202 million over the quarter
• Westgold remains 100% debt free, fully unhedged, and in the ASX 100

What else do investors need to know?

Westgold maintained its FY26 gold production guidance of 345,000–385,000 ounces despite slightly lower quarterly grades and volumes. The company noted production was supported by improvements in key mining assets, with developments at Bluebird–South Junction and Beta Hunt expected to accelerate mining rates by year-end.

Operationally, Westgold brought forward open pit mining in the Murchison region by three months, enhancing ore blends and mill utilisation. The company continued to invest in growth, spending $81 million on development projects and $13 million on exploration during the quarter.

Westgold approved the expansion of its Higginsville mill, a $145 million investment to lift capacity from 1.6Mtpa to 2.6Mtpa, supporting long-term growth in the Southern Goldfields. The company further streamlined its portfolio with the divestment of the Mt Henry–Selene and spin-out of Reedy and Comet, unlocking about $140 million in immediate shareholder value.

What did Westgold Resources management say?

Managing Director & CEO said Wayne Bramwell said:

Westgold delivered another strong quarter in Q3 FY26, with cash generation lifting treasury to $856M. Underlying quarterly cash build of $285M underpins a business that is continually building strength to internally fund growth and return capital to shareholders.

What’s next for Westgold Resources?

Westgold expects production rates to ramp up in Q4 FY26, with ventilation upgrades at Beta Hunt and Big Bell now complete and no major shutdowns planned. Management expects Bluebird–South Junction to reach mining rates of 1.0–1.2Mtpa and Beta Hunt to hit 2.0Mtpa by year-end, underpinning production targets.

The Higginsville Expansion Plan is underway, aiming to increase processing capacity and reduce unit costs from mid-FY28. The company’s strengthened balance sheet, new $600 million credit facility, and portfolio optimisation are expected to support both future growth and returns to shareholders.

Westgold Resources share price snapshot

Over the past 12 months, Westgold Resources shares have risen 102%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Westgold Resources posts $285M quarterly cash build appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with strengthened buy ratings this week
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares just upgraded to strong buy — here’s what the brokers are saying
• ASX 200 falls to a fresh 3-week low. Here’s what’s driving the sell-off today

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.

Macquarie Group Ltd (ASX: MQG) shares have a lengthy track record of strong performance.

On Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial stock closed trading for $232.12 each.

That sees Macquarie shares up 13.9% in 2026, handily beating the 0.2% year to date losses posted by the benchmark index.

Taking a step back, the ASX 200 financial stock is up 19.4% over 12 months, compared to the 8.9% one-year gain delivered by the benchmark index.

And that’s not including the two partly franked dividends Macquarie paid to eligible stockholders over this time. The ASX 200 stock trades on a partly franked 2.9% trailing dividend yield.

That’s a look in the rearview. The question now is, should you buy the ASX financial stock today?

Outlook ‘bright’ for Macquarie shares

MPC Markets’ Jonathan Tacadena recently ran his slide rule over the financial company (courtesy of The Bull).

“This global financial services company operates in more than 30 markets,” said Tacadena, who has a buy rating on Macquarie shares.

“Businesses include asset management, banking and financial services and commodity and global markets,” he added.

Summarising his bullish outlook on the ASX 200 stock, Tacadena said:

Its diversification appeals to investors, particularly in volatile markets. The trading desk has been a driver of growth in previous years and we suspect it will feature prominently at the company’s full year results due in May.

The shares have surged from $191.53 on March 4 to trade at $229.95 on April 23. We believe the company’s outlook is bright. The company’s solid track record has stood the test of time.

Which brings us to…

The (slightly) less bullish case for the ASX 200 financial stock

Morgans’ Damien Nguyen also had a look into Macquarie stock on The Bull this week.

“Macquarie is a diversified financial services group with strengths across asset management, infrastructure and global markets,” he noted.

“Its business model benefits from long term infrastructure investment and energy transition themes, but earnings can be volatile due to market conditions,” Nguyen added.

But with the big run higher in Macquarie shares since early March, Nguyen issued a hold recommendation on the stock.

According to Nguyen:

Recent performance has been solid, and much of the medium-term opportunity is already reflected in the share price, in our view. While Macquarie remains a high-quality company with strong management, near term upside looks balanced by cyclical and market risks.

At current levels, a hold is appropriate.

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

More reading

• Experts name 1 ASX bank share to buy and 2 to sell       
• Buy, hold, sell: Sigma Healthcare, Macquarie, Santos shares
• Buy, hold, sell: Macquarie, Boss Energy, CBA shares
• Buy, hold, sell: Brambles, CBA, and Macquarie shares
• 6 ASX 200 shares downgraded by brokers this week

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

Lynas Rare Earths Ltd (ASX: LYC) shares are a popular option to gain exposure to the rare earths industry.

But with the rare earths giant’s shares up more than 100% over the past 12 months, the near-term upside from here could be limited.

That doesn’t mean there isn’t potential for big returns elsewhere in the industry.

For example, Bell Potter expects the stock in this article to rocket materially higher from current levels.

Which ASX rare earths stock?

The stock that Bell Potter is tipping to rise strongly is American Rare Earths Ltd (ASX: ARR).

It holds a 100% interest in the subsidiary Wyoming Rare USA (WRI), which owns the Halleck Creek project in Wyoming, United States. The Cowboy State Mine (CSM) forms Phase 1 of the development at Halleck Creek.

Bell Potter highlights that CSM is located on State of Wyoming land, which carries advantages from expedited permitting process (~2-3 years vs +10 years on Federal Land). The current mineral resource estimate (MRE) for CSM is 547Mt at 3,344ppm total rare earth oxides (TREO) for contained metal of 1,831kt.

What is the broker saying?

The broker has been pleased with the progress the ASX rare earths stock is making and believes the next 6 to 12 months should make project delivery timelines clearer. It said:

Halleck Creek remains one of the larger and more advanced rare earth development assets in the U.S., with strategic exposure to both magnet rare earths and heavy rare earths. ARR continues to make tangible progress on several fronts that should help de-risk Halleck Creek and improve strategic positioning within the developing U.S. mine-to-magnet rare earth supply chain.

The key takeaway from the March Quarter was not just continued technical progress, but the increasing focus on execution, particularly around pilot-scale processing, downstream flowsheet development and broader development planning. These steps should support a clearer pathway toward project delivery over the next 6–12 months.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 65 cents price target on the company’s shares.

Based on its current share price of 37 cents, this implies potential upside of 75% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

We retain our Speculative Buy recommendation and $0.65/sh valuation. ARR is progressively de-risking Halleck Creek through pilot plant work, feasibility advancement, downstream studies and increased alignment with U.S. critical minerals policy settings. Success across these key catalysts and macro rare earth tailwinds represents the clearest path to compressing the risk discount and providing valuation uplift.

Overall, if you missed the boat on Lynas shares, then Bell Potter thinks this ASX rare earths stock could be worth considering. However, only if you have a high tolerance for risk.

The post Forget Lynas shares, this ASX rare earths stock could rise 75% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, or sell? Life360, Iress, Lynas Rare Earths shares
• UBS names 3 ASX 200 shares to buy right now
• Boom or bust: What’s next for Lynas shares?
• Why ANZ, Challenger, Hub24, and Lynas shares are dropping today

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 recommended Lynas Rare Earths Ltd. 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.