Tag: Stock pick

The PLS Group Ltd (ASX: PLS) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock formerly known as Pilbara Minerals closed yesterday trading for $4.59. In morning trade on Friday, shares are changing hands for $4.66 apiece, up 1.5%.

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

With today’s intraday lift factored in, the PLS share price is now up a whopping 308.8% since plumbing a multi-year closing low on 3 June.

Here’s what’s grabbing ASX investor interest today.

PLS share price jumps on revenue surge

Before market open this morning, PLS released its December quarterly update (Q2 FY 2026).

Highlights included a 49% quarter-over-quarter increase in revenue to $373 million. Management credited this to a big boost in the average realised price PLS received, along with higher sales volumes.

The PLS share price also looks to be catching tailwinds with the company reporting that sales volumes were up 8% from Q1 FY 2026 to 232,000 tonnes of spodumene concentrate (a lithium bearing ore).

And the average realised sales price the ASX 200 lithium miner received for its spodumene leapt to US$1,161 per tonne (SC5.2 basis, CIF China). That’s up 57% from the prior quarter.

Costs were up too, however. PLS reported an 8% quarter-on-quarter increase in unit operating cost (FOB) to $585 per tonne. The miner said this was driven by lower production volumes and spodumene inventory drawdown, as sales volumes exceeded production.

Pleasingly, the miner’s cash operating margin from operations surged from $8 million in Q1 to $166 million in the December quarter. Margins were supported by improved pricing and ongoing cost optimisation.

As at 31 December, PLS had $954 million in cash, up 12% from the prior quarter.

What else is happening with the ASX 200 lithium stock?

Looking at what might impact the PLS share price in the months ahead, the miner said that the Ngungaju processing plant restart is under review, with early works completed “amid strong inbound interest”.  Management placed Ngungaju into temporary care and maintenance in December 2024 amid plunging lithium prices.

The miner said it is evaluating the potential for a 200,000 tonne per year restart. The crusher upgrade has been completed and operational readiness assessed. The PLS Board expects to consider a decision in the March quarter.

Should the restart get the green light, it will take approximately four months to resume production if approved.

The PLS share price could gain longer-term support, with the P2000 feasibility study also ongoing. That study is looking into the potential expansion of Pilgangoora production capacity to two million tonnes per year. Investors can expect an update on the study results in the March quarter.

And drilling and study optimisation are continuing at the miner’s Colina lithium project, located in Brazil.

The post Up 309% since June, why is the PLS share price leaping higher again on Friday? appeared first on The Motley Fool Australia.

More reading

• PLS Group books 49% revenue leap and strong cash flow in December quarter earnings
• Forget PLS shares! This ASX growth stock is tipped to rise 60% by 2027
• So the PLS share price made it past $5. Big deal. What’s next?
• Why Fortescue, Life360, PLS, and Syrah shares are dropping today
• ASX 200 materials sector outperforms as mining shares continue their ascent

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

The ResMed Inc. (ASX: RMD) share price is ending the week with a bang.

In morning trade, the sleep disorder treatment company’s shares are up 7% to $38.90.

Why is the ResMed share price surging?

Investors have been bidding the company’s shares higher today after it delivered yet another strong quarterly update.

According to the release, ResMed’s revenue increased 11% (9% in constant currency) to US$1.4 billion over the prior corresponding period. This was driven by increased demand for its portfolio of sleep devices, masks, and accessories.

Management advised that revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 11% over the prior corresponding period. Whereas revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 6% in constant currency. Residential Care software revenue increased 5% on a constant currency basis.

Another positive was that ResMed’s margins continue to improve. Its gross margin increased by 320 basis points during the quarter. This was primarily driven by manufacturing and logistics efficiencies and component cost improvements.

The company recorded a gross margin of 61.8%, or 62.3% on a non-GAAP basis. The consensus estimate was for a margin of 62.1%.

This ultimately led to ResMed posting an 18% increase in income from operations and a 19% increase in non-GAAP income from operations.

Diluted earnings per share was US$2.68, with non-GAAP diluted earnings per share coming in at US$2.81.

Management commentary

ResMed’s chairman and CEO, Mick Farrell, was rightfully pleased with another impressive quarter. He said:

Our second quarter results demonstrate the strength and resilience of our global business as we continue advancing our mission to help people sleep better, breathe better, and live longer and healthier lives in the comfort of their own home.

Year-over-year, we delivered 11% headline revenue growth, 310 basis points of non-GAAP gross margin expansion, and continued operating excellence, resulting in another quarter of mid-teens non-GAAP EPS growth. These results reflect strong ongoing demand for our market-leading sleep and respiratory care devices, as well as the growing impact of our digital health ecosystem that spans more than 140 countries.

The good news is that Farrell appears confident that the second half will be just as successful. He adds:

As we move into the second half of fiscal year 2026, we will continue to invest in innovation to scale our digital health capabilities and expand global access to life-saving care, while delivering sustainable, profitable growth.

The post Why is the ResMed share price jumping 7% today? appeared first on The Motley Fool Australia.

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• Resmed posts Q2 FY26 earnings growth, lifts dividend
• 5 things to watch on the ASX 200 on Friday
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• 3 unstoppable ASX 200 shares to buy and hold forever

The IperionX Ltd (ASX: IPX) share price is in focus after the company completed commissioning of its Virginia Titanium Manufacturing Campus and ended the December quarter with a strong US$65.8 million cash balance.

What did IperionX report?

• Equipment for titanium powder and component production fully commissioned at the Virginia Titanium Manufacturing Campus
• Manufacturing capacity expansion on track, with target of 1,400 tons per annum (tpa) by 2027
• Initial sales orders received from Carver Pump and American Rheinmetall for titanium components
• US$47.1 million US Department of War grant fully obligated, aiding expansion plans
• US$65.8 million in cash at quarter-end, with US$46.5 million in grant funding still available
• ISO 9001 quality certification achieved for manufacturing operations

What else do investors need to know?

The company has commenced building inventory for mass distribution, including a range of titanium fasteners for commercial and U.S. military customers. IperionX continues advanced prototyping for industries like defense, electronics, automotive, and oil & gas, highlighting growing commercial activity.

Progress was also made at the Titan Critical Minerals Project in Tennessee. Backed by U.S. Government interest and funding, IperionX aims to help address the nation’s supply gap for critical minerals, including heavy rare earths and titanium needed in defence and clean energy applications.

Federal Government support remains a key pillar, with the U.S. transferring around 290 tons of titanium scrap to IperionX at no cost, securing feedstock for about 1.5 years at current capacity.

What’s next for IperionX?

IperionX plans to scale titanium production to 1,400 tpa by 2027, targeting market leadership as America’s largest and lowest-cost titanium powder producer. Additional presses and furnaces arriving in 2026 will support this capacity ramp-up.

The company is also piloting next-generation, continuous titanium production technology, aiming for completion in 2026. Meanwhile, a Definitive Feasibility Study for the Titan Critical Minerals Project remains on schedule, with completion targeted for mid-2026.

IperionX share price snapshot

Over the past 12 months, IperionX shares have risen 90% outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 5% over the same period.

View Original Announcement

The post IperionX ramps up titanium production, secures US government support appeared first on The Motley Fool Australia.

More reading

• Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner
• Emerald Resources delivers strong December quarter with growth across Australia and Cambodia
• Atlas Arteria shares: Q4 2025 toll revenue jumps 9.5%
• Elders FY25 earnings: resilient profit and strategic growth
• Resmed posts Q2 FY26 earnings growth, lifts dividend

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 share market operator, ASX Ltd (ASX: ASX), recently put out a trading update, in which it said that first-half revenue was up 11.2% to $602.8 million and net profit was expected to grow by more than 8%.

Costs, however, were also expected to be up, growing by an estimated 13% to 15% for the full financial year, or 20% to 23% once costs associated with an ASIC inquiry into the company were factored in.

The company said this regarding their costs:

A key driver for the increase in total expenses has been our decision to make further upgrades to the capacity and capability of resources to uplift risk management and modernise and support our major technology platforms. This reassessment of our investment requirements for key strategic priorities was informed by findings from the Inquiry Panel’s report.

The ASX said slower uptake of e-statements at a time of high trading volumes also contributed to the increase in expense guidance.

On the profit front, the ASX said its unaudited underlying net profit was up 3.9% to $263.6 million, and net profit was up 8.3% to the same figure.

Shares looking fully priced

So what does this all mean for investors? The team at Jarden have run the ruler over the results and believes there is still some modest upside to be had.

They have a target price of $58 for ASX shares, compared with $57.47 at the close on Thursday, after the shares increased sharply following the market update on Wednesday.

The Jarden team said there are still some questions to be answered around costs, however.

With ASX announcing its second update to total cost guidance since Jun-25, it is increasingly difficult to gain comfort over the medium-term cost trajectory. Whilst positive revenue drivers translated more strongly than expected to top line and helped offset cost escalation pressures, with ASIC Chairman, Joe Longo, commenting that ‘ tangible progress’ at ASX was a top priority, we see scope for FY27 costs to take a further step up following the release of the final ASIC Inquiry report (due by 31 March, 2026).

The Jarden team said that despite an attractive valuation from a P/E point of view, the company would have a lot to juggle in terms of “large-scale technology execution, risk management uplift and shareholder returns” over the coming period.

While Jarden’s price target does envisage modest upside, the broker has a neutral rating on the shares, “given risks are skewed to downside”.

ASX was valued at $11.16 billion at the close of trade on Thursday.

The post Are ASX Ltd shares a buy, sell or hold after their recent update? appeared first on The Motley Fool Australia.

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• ASX Limited shares keep getting cheaper, but the market still isn’t convinced
• ASX Ltd 1H26 earnings: revenue rises, expenses guidance upgraded

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

The Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company announced the completion of Sphere’s 10% acquisition in the ENC project, valuing the project at US$2.4 billion, and a streamlined deal to become ENC’s largest shareholder.

What did Nickel Industries report?

• Sphere acquires a 10% interest in the ENC project at a US$2.4 billion valuation
• Nickel Industries to increase ENC holding from 44% to 46%, becoming the largest shareholder
• The final US$46 million payment for an extra 2% stake replaces US$253 million previously scheduled, reducing future cash outflows
• Secured an exclusive 15-year, 14 million wmt/year limonite ore supply MOU for the Sampala Project
• Nickel Industries provides credit support to Sphere’s US$210 million acquisition loan

What else do investors need to know?

Nickel Industries’ agreement with Shanghai Decent not only builds its stake in ENC, but also consolidates its leadership in the project, reducing payment uncertainty and bolstering its balance sheet. The restructuring slashes expected ENC payment obligations by US$207 million while capping future outflows, giving investors more clarity.

By backing Sphere’s loan for its ENC stake, Nickel Industries also secures priority rights over those shares, should Sphere ever default. This protects NIC’s long-term strategic position and could even allow it to acquire more of ENC on favourable terms in such a scenario.

What did Nickel Industries management say?

Managing Director Justin Werner said:

We are pleased to welcome Sphere as a strategic partner in ENC. Sphere’s position as a key accredited supplier to SpaceX underscores the importance of quality, traceability and reliability in advanced and high‑performance end‑markets, and its decision to invest in ENC is a strong endorsement of the project and the quality of ENC’s nickel cathode.

The reduced ENC acquisition percentage reduces payment obligations to our largest shareholder, reinforcing the strength of our balance sheet and enhances the Company’s financial flexibility.

Finally, the exclusive 15 year, 14 million wmt per annum ore supply MOU reinforces the value of the Sampala Project. Consistent with our integrated business model, the ore supply MOU positions the Company well for any future downstream growth opportunities.

What’s next for Nickel Industries?

As ENC nears commissioning, Nickel Industries aims to further its transition into battery-grade nickel and cobalt products used in electric vehicles. The Sampala ore supply MOU, with its innovative transport solution, could unlock extra value and efficiency in supply to the adjacent HPAL project.

The reduced acquisition costs and enhanced ownership position should also help Nickel Industries manage funding more effectively, strengthening its growth platform as it targets downstream opportunities beyond stainless steel.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 24%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner appeared first on The Motley Fool Australia.

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• IperionX ramps up titanium production, secures US government support
• Emerald Resources delivers strong December quarter with growth across Australia and Cambodia
• Atlas Arteria shares: Q4 2025 toll revenue jumps 9.5%
• Elders FY25 earnings: resilient profit and strategic growth
• Resmed posts Q2 FY26 earnings growth, lifts dividend

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 Emerald Resources (ASX: EMR) share price is in focus today after the company reported a solid December 2025 quarter, with Okvau Gold Mine delivering 25,030 ounces of gold and operating cash flow of A$87 million.

What did Emerald Resources report?

• Gold production at Okvau Gold Mine reached 25,030 ounces for the December quarter, up from 22,035 ounces in the previous quarter.
• All-In Sustaining Cost (AISC) decreased to US$1,032 per ounce, a marked improvement from US$1,186 per ounce last quarter.
• Quarterly gold sales were 20,410 ounces at an average price of US$4,118 per ounce.
• Pre-tax operating cash flow of A$87 million was generated from Okvau operations, near the company’s financial performance record.
• Group cash, bullion, and listed investments totalled A$372.7 million at 31 December 2025.
• Production and cost guidance for FY26 maintained: 105,000–120,000 ounces at life-of-mine AISC of US$966 per ounce.

What else do investors need to know?

Emerald continues to progress its growth strategy, with updated mineral resource estimates at both the Dingo Range Gold Project in Western Australia (1.41 million ounces at 1.1g/t Au) and Memot Gold Project in Cambodia (1.70 million ounces at 1.2g/t Au). Development approvals for both projects have advanced, including full permitting at Memot and near-complete approvals for Dingo Range.

The December quarter saw robust exploration activity: highlight intersections were reported at several prospects, including Freeman’s Find and the Stables Prospect in WA, along with Granite Hill near Okvau in Cambodia. Notably, the company remains committed to strong ESG practices, progressing community and environmental initiatives such as extensive tree planting and biodiversity monitoring in Cambodia.

What did Emerald Resources management say?

Managing Director Morgan Hart said:

Our teams continue to deliver safe, reliable production at Okvau and grow the company’s resource base with disciplined exploration and development. The updated resources at Dingo Range and Memot position Emerald for our next phase of Australian and Cambodian gold growth.

What’s next for Emerald Resources?

Looking ahead, Emerald plans to release maiden ore reserves for both the Dingo Range and Memot projects, which will underpin final development studies and schedules. Ongoing drilling campaigns at multiple prospects are set to drive further resource upgrades and potentially unlock new mining areas.

The company is maintaining production and cost guidance for FY26, with steady Okvau output expected to support further growth and investment. Near-term milestones include project approvals at Dingo Range and follow-up drilling and development progress across both Cambodia and Australia.

Emerald Resources share price snapshot

Over the past 12 months, Emerald Resources shares have risen 97%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Emerald Resources delivers strong December quarter with growth across Australia and Cambodia appeared first on The Motley Fool Australia.

More reading

• IperionX ramps up titanium production, secures US government support
• Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner
• Atlas Arteria shares: Q4 2025 toll revenue jumps 9.5%
• Elders FY25 earnings: resilient profit and strategic growth
• Resmed posts Q2 FY26 earnings growth, lifts dividend

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.

With Commonwealth Bank of Australia (ASX: CBA) shares regarded as overvalued by many analysts, investors may be better off looking at other ASX financial stocks. But which one?

Bell Potter thinks Perpetual Ltd (ASX: PPT) could be worth a closer look, even after a softer quarter for the asset manager.

What is the broker saying about this ASX financial stock?

Bell Potter described the second quarter as underwhelming, driven by fund outflows in its Asset Management division and limited progress on the sale of its Wealth Management business. The broker said:

Overall this was an underwhelming quarter with lower AUM down 2% and limited progress on the sale of Wealth Management (WM). In Asset Management, AUM was A$227.5b vs A$232.0b at end of Q1. Outflows were A$7.8b or 3.4% of opening, with outflows concentrated at Barrow Hanley and TSW, (3.7% and 11.2% of opening values respectively).

Market and other movements were +A$5.4b or 2.3% of opening while FX moves were -A$2.1b (or 0.9% as the US$ weakened over the quarter. Performance fees are expected to be A$10m in H1.

But it wasn’t all bad news. Bell Potter noted that parts of the business continued to grow, particularly within Corporate Trust:

Wealth Management Funds under Advice were flat at A$21.9b. Corporate Trust saw Funds under Administration grow 2.1% over the quarter to A$1.3trn, with Debt Market services up 2.8% and Managed Funds up 1%.

Costs remain under control

Bell Potter also highlighted that cost control remains a positive for the ASX financial stock, with currency movements helping keep expenses toward the lower end of guidance. The broker said:

FY26 costs are tracking at the lower end of the 2-3% guidance, helped by currency moves. The first half should be better than guidance. Significant items are expected to be between A$54-63m after tax, with no impairments. Excluding impairments, this level is slightly below the average of the last few half years.

Why Bell Potter is still a buyer

While Bell Potter trimmed its price target following forecast downgrades, it remains positive on Perpetual’s valuation and longer-term strategy. The broker explained:

We remain positive on PPT, given what we consider an undemanding valuation. The drawn-out sale process for WM is disappointing, and we would like to see WM sold, debt reduced and management focused on delivering efficient and profitable growth.

We agree with the new CEO’s strategy to take the initiative and find new strategies to add to existing platforms, and the inflows seen in the Perpetual Diversified Income Active ETF are encouraging.

According to the note, the broker has retained its buy rating on the ASX financial stock with a trimmed price target of $22.80 (from $25.00). Based on its current share price of $18.99, this implies potential upside of 20% for investors over the next 12 months.

In addition, Bell Potter is forecasting a generous 6.3% dividend yield in FY 2026, which boosts the total potential return to approximately 26%.

The post Forget CBA shares and buy this ASX financial stock appeared first on The Motley Fool Australia.

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• Perpetual reports mixed results in FY26 second quarter update
• How to build income on the ASX without losing sleep at night
• Should I sell my CBA shares in 2026?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Atlas Arteria Ltd (ASX: ALX) share price is in focus today after the company reported Q4 2025 proportionate toll revenue up 9.5% on last year, with full-year revenue also climbing 9.4% thanks to steady traffic and higher tolls across key assets.

What did Atlas Arteria report?

• Q4 2025 proportionate toll revenue rose 9.5% compared to Q4 2024
• Full-year 2025 proportionate toll revenue increased 9.4% year-on-year
• APRR quarterly revenue up 1.5%, annual revenue up 2.8% (EUR terms)
• Chicago Skyway quarterly toll revenue up 10%, annual up 6.2% (USD terms)
• Traffic rose on Dulles Greenway (Q4 up 4.8%; year up 8.2%), and A79 (Q4 up 7.5%; year up 10.5%)
• Warnow Tunnel traffic fell 9.8% in Q4, revenue down 5.6% (EUR terms)

What else do investors need to know?

Steady economic conditions in France and a recovery in cross-border work permits to Geneva helped drive light vehicle traffic on major French assets. The company noted robust commuter flows, with Swiss permits up 2.9% for Geneva in the September quarter.

In the US, Chicago Skyway saw a bounce-back in both light and heavy vehicle usage after the prior period’s roadworks and tariff announcements. Dulles Greenway overcame disruptions from a six-week US federal government shutdown, returning to pre-shutdown traffic growth.

Toll revenue growth benefited from toll price increases across most businesses as well as favourable foreign exchange movements. On a constant currency basis, proportionate toll revenue grew around 2.2% for Q4 and 3.0% for the full year.

What’s next for Atlas Arteria?

Atlas Arteria continues to focus on disciplined management of its international toll road assets, with plans to leverage network upgrades, pricing, and customer service enhancements. The business emphasises operational efficiency and sustainable practices across its European and North American assets.

Looking ahead, the company aims to drive value by responding to regional traffic patterns, optimising toll structures, and adapting to changing commuter needs, including ongoing infrastructure maintenance and upgrades.

Atlas Arteria share price snapshot

Over the past 12 months, Altas Arteria shares have declined 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Atlas Arteria shares: Q4 2025 toll revenue jumps 9.5% appeared first on The Motley Fool Australia.

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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 war between Australian supermarket giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) doesn’t stop on the shelves; it extends into the sharemarket too. Shares of both retailers are neck and neck this year, but who comes out on top when it comes to the outlook for the remainder of 2026?

What’s the outlook for Woolworths shares this year?

At the close of the ASX on Thursday afternoon, Woolworths shares were up 0.59% to $30.59 a piece. For the year to date, the retailer’s shares are up 3.94% and the stock is now 0.26% above trading levels this time last year.

The supermarket giant’s shares crashed nearly 20% in August last year after it posted a disappointing FY25 result. The stock dropped to an all-time low of $25.91 a piece in mid-October but was saved from any further decline after the company posted a more positive first-quarter sales update.

The business is well established and one of the largest in Australia, and this dominance maintains its competitive position in the retail space.

Analysts are divided about Woolworths shares right now. TradingView data shows that 7 out of 17 analysts have a buy or strong buy rating on the stock. The other 10 analysts have a hold rating.

The average target price is $30.70 a piece, which implies a 0.37% upside at the time of writing. The maximum target price is $37 per share, which implies a potential 20.95% increase for investors this year.

What’s the outlook for Coles shares this year?

At the close of the ASX on Thursday afternoon, Coles shares were up 0,29% to $21.05 a piece. For the year to date, Coles shares have slid 1.36% but they’re still 7.73% above trading levels seen this time last year.

Coles’ 2025 growth strategy paid off. The business posted a strong quarterly update in late October, where it reported a 3.9% increase in group sales and overall results in line with analyst expectations. 

The supermarket giant could face some headwinds from inflation and cost-of-living pressures this year, but the stock is very defensive and the business is well-positioned to be resilient among pressures. 

Analysts are pretty positive about Coles shares. TradingView data shows that 10 out of 17 analysts have a buy or strong buy rating on the stock. The other 7 analysts have a hold rating.

The average target price is $23.64 per share, which implies a 12.32% upside at the time of writing. Meanwhile, the maximum target price of $25.50 implies a potential 21.14% upside ahead for investors, using the current share price.

And the winner is…

At a maximum of 21.14%, Coles shares have a larger maximum potential upside than Woolworths shares in 2026, according to analysts. Its business has strengthened over the past year, and sentiment about the company’s potential is much more positive. Between the two supermarket giants, I’d say Coles has the upper hand right now. 

The post Coles vs Woolworths shares: Which supermarket giant has the biggest upside for 2026? appeared first on The Motley Fool Australia.

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• Which ASX retail stocks look like good buying ahead of the looming reporting season?
• 3 top ASX dividend share buys for passive income in February
• Got $5,000? 5 ASX income shares to buy and hold forever
• BHP and 4 strong ASX dividend shares for Aussie income investors to buy

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

The Elders Ltd (ASX: ELD) share price is in focus today as the agribusiness outlined resilient financial results for FY25, highlighted by underlying EBIT growth to $143.5 million and continued dividend stability at 36 cents per share.

What did Elders report?

• Sales revenue grew to $3.2 billion, up 2.2% from FY24
• Gross margin increased to $684.6 million (21.4%)
• Underlying EBIT rose to $143.5 million (up from $128.0 million)
• Underlying net profit after tax climbed to $86.0 million, a 34% improvement
• Dividend held steady at 36.0 cents per share (100% franked)
• Leverage ratio decreased to 1.8 times (excluding AASB 16), with a strong target for FY26

What else do investors need to know?

Elders delivered growth despite challenging seasonal conditions, with dry weather affecting retail product results in South Australia and Victoria. Diversification across Agency, Real Estate, and Feed & Processing supported revenue and margin improvements.

The year saw eight acquisitions completed, including Delta Agribusiness, which enhances Elders’ regional footprint. A new divisional structure was implemented to drive sharper focus and operational accountability.

Cash generation was strong, with operating cash flow at $117.9 million and cash conversion exceeding 137%. Management maintained cost growth below inflation, supporting ongoing profitability.

What’s next for Elders?

Elders expects its leverage to return to below 2.0 times in FY26 as working capital initiatives and improved seasonal conditions take effect. Management’s focus is on extracting synergies from recent acquisitions—particularly Delta Agribusiness—and expanding backward integration to drive margin gains.

The company’s strategic ‘Eight Point Plan’ continues to target 5–10% EBIT and EPS growth through the cycle and a return on capital above 15%. Elders is also investing in technology, operational discipline, and sustainable growth across all business divisions to reinforce its position as Australia’s most trusted rural brand.

Elders share price snapshot

Over the past 12 months, the Elders shares have risen 2%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Elders FY25 earnings: resilient profit and strategic growth appeared first on The Motley Fool Australia.

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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 recommended Elders. 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.