Tag: Stock pick

The good news for investors focused on building a long-term reliable income stream, is that the ASX is home to a number of companies with the scale, stability, and cash flow to support dividend payments.

The key is finding businesses that not only pay attractive dividend yields today but also have the resilience and earnings power to sustain and grow those dividends over time.

Here are three ASX dividend shares that could be worth buying and holding.

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the market’s most recognisable income shares, but its story is continuing to evolve.

Having completed its T25 strategy, the company is now focused on its next phase of growth through its Connected Future 30 plan. This strategy is centred on doubling down on connectivity, investing in digital infrastructure, and extracting greater value from its network assets.

Given that Telstra expects demand for data and connectivity to keep accelerating, driven by trends such as AI adoption and increasing digital reliance, this positions it to benefit from long-term structural tailwinds.

Importantly, Telstra is also focused on improving returns by shifting from simply selling bandwidth to delivering higher-value services.

With resilient earnings, strong infrastructure assets, and a clear roadmap for growth, Telstra looks well placed to continue delivering attractive fully franked dividends.

Transurban Group (ASX: TCL)

Transurban offers a very different type of income exposure, built around essential infrastructure.

The company owns and operates toll roads across Australia and North America, generating revenue from daily commuters. These assets tend to have long concession lives and benefit from population growth and urban expansion.

One of Transurban’s key strengths is the inflation-linked nature of many of its toll agreements. This means revenue can increase over time even in challenging economic environments, helping to protect returns.

In addition, major project developments and road upgrades provide opportunities to expand capacity and drive further earnings growth.

With robust demand and visible long-term cash flows, Transurban stands out as an ASX dividend share that can offer both income and a degree of growth.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths provides exposure to a different kind of reliability, rooted in everyday consumer spending.

As one of Australia’s largest supermarket operators, the company benefits from consistent demand for groceries and essential goods. Regardless of economic conditions, consumers still need to eat, which supports steady revenue generation.

And while retail can be competitive, Woolworths’ scale, strong brand, and extensive distribution network give it a significant advantage.

This could position Woolworths as a solid option for investors looking to buy and hold ASX dividend shares for the long term.

The post 3 blue-chip ASX dividend shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• Building an ASX share portfolio from scratch? Here’s my game plan
• ASX chaos? Here’s how to invest smart, stay calm and win
• 2 ASX shares I’d buy if the market fell another 10%
• Forget Telstra shares! Buy this fast-rising ASX 200 telco stock instead

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $50,000 to invest today and wanted to put the money into exchange-traded funds (ETFs), I would be considering the five funds in this article.

They give investors access to many world-class businesses and companies with strong long-term growth potential.

Here’s why I would be seriously considering them this week.

Vanguard Australian Shares Index ETF (ASX: VAS)

I would start with a core allocation to the Australian market through the Vanguard Australian Shares Index ETF.

It provides exposure to a broad range of Australian shares, from large caps like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) through to mid and smaller companies like Temple & Webster Ltd (ASX: TPW) and Siteminder Ltd (ASX: SDR).

I like the balance it offers between income and growth, as well as the benefit of franking credits. It is not the most exciting ASX ETF, but I think it is one of the most dependable.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

Next, I would want meaningful exposure to the United States through the Vanguard S&P 500 US Shares Index ETF.

In my view, it is hard to ignore the long-term strength of the US market.

This ETF gives access to 500 of the largest companies in the world’s biggest economy, including global leaders across technology, healthcare, and consumer sectors.

I see this as a key growth driver in the portfolio, and a way to diversify away from Australia’s relatively concentrated market.

VanEck MSCI International Quality ETF (ASX: QUAL)

While broad exposure is important, I also like having a tilt toward quality.

That is where the VanEck MSCI International Quality ETF comes in.

This ETF focuses on stocks with strong returns on equity, stable earnings, and low financial leverage. I think that kind of discipline can be particularly valuable during periods of volatility.

For me, this is about increasing the overall quality of the portfolio without having to pick individual global stocks.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I would also include the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

I believe Asia will play an increasingly important role in global economic growth over the coming decades.

This ETF provides access to a wide range of markets, including China, India, Taiwan, and South Korea. It adds a different set of growth drivers compared to the US and Australia.

It can be more volatile, but over the long term, I think that growth potential is worth having in the portfolio.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Finally, I would add a small allocation with the BetaShares Global Cybersecurity ETF.

Cybersecurity is an area I believe will only become more important over time. As businesses and governments continue to migrate to the cloud, the need to protect data and systems is growing rapidly.

This ASX ETF provides exposure to a range of global cybersecurity companies, offering a more targeted growth opportunity alongside the broader market exposures.

Foolish takeaway

If I were investing $50,000 today, I would focus on ETFs that I could hold for years.

The VAS ETF would provide a strong Australian foundation, the V500 ETF would deliver exposure to the US, the QUAL ETF would add a quality tilt, the VAE ETF would capture Asian growth, and the HACK ETF would bring a thematic edge.

The post Here are 5 ASX ETFs that I would buy with $50,000 appeared first on The Motley Fool Australia.

More reading

• How I’d aim to build a $100,000 ASX share portfolio starting at zero
• This simple ASX ETF strategy matters more than ever in today’s uncertain market
• Is the Vanguard Australian Shares Index ETF a good long-term investment?
• Building an ASX share portfolio from scratch? Here’s my game plan
• Why I’m seriously thinking about buying these ASX ETFs in April

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, SiteMinder, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended BHP Group and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX mining share Fortescue Ltd (ASX: FMG) has seen its fair share of volatility in the past 12 months, as the chart below shows. Due to multiple compelling reasons, this could be an exciting time to look at the mining giant.

Could the iron ore price rise?

Commodity prices are seeing significant change because of the Middle East events.

Iron ore isn’t produced in the Middle East – Australia and Brazil are two of the biggest producers of the commodity. But, the impacts of the Middle East could lead to a higher iron ore price the longer this goes on.

The iron ore miners are huge users of diesel, which has jumped in price and reduced in availability. Unless the conflict is resolved quickly, this could possibly result in diesel shortages.

If the diesel leads to reduced iron ore production globally for one reason or another, it could mean a higher iron ore price and therefore stronger profit generation for Fortescue, which would be a strong support for the Fortescue share price.

There are a lot of ifs there, but it’s something to keep in mind.

More appealing dividend yield

Fortescue has been one of the largest dividend payers over the last several years and I think that’s likely to continue, particularly if the iron ore price were to increase from here.

When the Fortescue share price falls, it can lead to a pleasing boost of the dividend yield. Considering the business has fallen by more than 11% since the 2026 peak, at the time of writing, this could be a good time to look at the business.

Excitingly, a 10% fall in the share price means the same sort of boost to the size of the dividend yield. For example, if the business had a 6% dividend yield and then the share price drops 10%, the dividend yield would become 6.6%.

According to CommSec, the Fortescue annual dividend per share for FY26 is projected to be $1.02. At the time of writing, that would mean a grossed-up dividend yield of more than 7%, including franking credits, which is a strong level of passive income even with interest rates moving higher.

Increasing copper exposure

I believe one of the most appealing aspects about the long-term for Fortescue shares is that the ASX mining share is looking to build up its exposure to copper.

Iron ore is exposed to uncertain Chinese demand, as well as an expected increase of supply from Africa which could be a headwind for the commodity price in the coming years. Therefore, the move to gain exposure to copper looks like a good strategic choice in the long-term because of global electrification and decarbonisation efforts.

The miner recently announced that it had progressed a binding agreement with Alta Copper Corp where Fortescue will buy the rest of the copper miner that it doesn’t already own through a Canadian plan of arrangement.

Fortescue will need to continue expanding its copper plans if it wants that commodity to play an important part of its earnings, but I think it’s a good start.

The post 3 reasons why this could be a great time to buy Fortescue shares! appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares rebound after March sell-off creates opportunities
• Is this ASX iron ore stock a better buy than Fortescue?
• Which mining minnow is up more than 100% after a former Fortescue exec joined the board?
• How much could the Fortescue share price rise in the next year?
• Are Fortescue shares a top buy in March?

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

Trying to outperform the market is not easy. But it is possible.

I think by focusing on ASX 200 shares with lasting advantages, long growth runways, and the ability to compound earnings at an attractive rate, investors have a chance at beating the market.

With that said, here are three shares that I believe have a genuine shot at outperforming over the next 10 years.

Goodman Group (ASX: GMG)

One of the first names that comes to mind for me is Goodman Group.

I do not really see it as a traditional property business. To me, it looks more like a global infrastructure platform that is tied to some of the most important trends in the economy right now.

Its exposure to logistics is already compelling, but what really stands out is its push into data centres.

With demand for cloud computing and artificial intelligence (AI) infrastructure continuing to grow, I believe Goodman is well positioned to benefit. Its access to strategic land, power, and capital gives it a meaningful edge in delivering these projects.

Over a decade, I think those advantages could translate into strong earnings growth.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a company I find particularly interesting because of how specialised its offering is.

It operates in medical imaging software and has built a reputation for delivering high-performance solutions to major hospitals and healthcare providers.

What I like most is its business model. It tends to win long-term contracts with high-value clients, which can provide recurring revenue and strong margins. On top of that, it has been expanding into other ologies and leveraging AI.

The valuation is still not conventionally cheap despite a heavy share price decline this year. But in my view, businesses with strong competitive positioning and global growth opportunities often command a premium for a reason.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another company that I think fits the profile of a long-term compounder.

Its software platform, CargoWise, is deeply embedded in global logistics operations. That creates a level of stickiness that I believe is difficult for competitors to replicate.

As global trade continues to evolve and digitise, I see ongoing demand for more efficient and integrated logistics solutions.

What I find compelling is that once customers are on the platform, switching can be complex and costly. That can help support pricing power and long-term customer retention.

While there is some uncertainty with changes to its business model, if it executes successfully, it could set WiseTech up for strong and sustainable growth long into the future. 

For this reason, I think it has potential to beat the market over the next 10 years.

Foolish takeaway

Outperforming the market is never guaranteed, and even high-quality companies can go through periods of underperformance.

But when I look at these three ASX 200 shares, I see businesses with strong fundamentals, clear growth drivers, and the potential to compound over time.

If I were building a portfolio with a 10-year horizon, these are the types of companies I would want to own.

The post 3 ASX 200 shares that could beat the market over the next 10 years appeared first on The Motley Fool Australia.

More reading

• How I’d aim to build a $100,000 ASX share portfolio starting at zero
• How to become a millionaire with a $5,000 investment in ASX 200 shares each year
• 3 bargain ASX tech shares I’d buy right now
• Top Australian shares to buy right now with $2,500
• Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares?

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

Last week was one to forget for Amplitude Energy Ltd (ASX: AEL) shareholders. 

The ASX energy stock tumbled more than 40% during the week, as investors exited their positions in the gas and oil supplier. 

After such a massive drop, is there any opportunity?

A note out of Morgans suggests there could be. 

Why did Amplitude Energy shares fall?

Investors reacted negatively to an announcement from the company last Wednesday. 

The company provided an update on drilling at its Isabella prospect in the Offshore Otway Basin, which it has now assessed as not commercial. 

It reported that pressure depletion observed during testing indicates the field is not commercially viable. Consequently, the well will be plugged and abandoned.

This was disappointing news for investors, as some likely bought into the company hoping the Isabella prospect would turn into a producing asset. 

When testing showed it isn’t commercially viable, that potential revenue stream effectively disappeared.

Additionally, it means the money spent on exploration won’t generate a return, which can hurt the company’s financial outlook.

What did Morgans have to say?

Year to date, Amplitude Energy shares are now down more than 45%. 

They closed trading last week at $1.59. 

However it appears there could be upside after such a heavy sell-off. 

In a note out of Morgans last week, the broker said Amplitude’s share price suffered a brutal selloff after announcing it was now 0-for-2 in its ECSP exploration program.

Isabella well flowed gas to surface but failed to maintain pressure and flow, disappointing given Isabella was the largest resource target in the program. The balance sheet and A$100m H1 EBITDAX buy time, but with two wells left and FID deferred, the next spud is effectively a must-win for the growth thesis.

The broker has retained a buy rating with a revised $3.00 target price. 

It did note the risk equation has shifted. 

From last week’s closing price of $1.59, this target from Morgans indicates a potential upside of approximately 88%. 

Bell Potter also optimistic

As The Motley Fool’s James Mickleboro reported last week, Bell Potter also believes Amplitude Energy shares may have been oversold. 

Its analysts have maintained a buy rating with a reduced price target of $2.70 (from $3.40). 

This indicates almost 70% upside. 

There are short term risks associated with the market’s response to outcomes of the ECSP drill program currently underway. However, ECSP should lift production from 2028, with the development of an existing discovery and two relatively low-risk exploration prospects which on success could be tied into latent existing pipeline and processing infrastructure capacity.

The post Down 40% last week, are Amplitude Energy shares now a buy? appeared first on The Motley Fool Australia.

More reading

• Why this sold-off ASX energy stock could rise 60%+

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.

Becoming a millionaire might sound like something that requires a huge salary, a lucky break, or perfect timing in the share market.

But I don’t think that is necessarily true.

Simple investing

I believe one of the most realistic ways to get to $1 million is surprisingly simple. 

It involves investing consistently, staying patient, and letting compounding do the hard work.

Let’s say you invest $5,000 into ASX 200 shares each year and earn an average total return of 9% per annum. Based on that, it would take a little over 33 years to reach $1 million.

That is a long time. But this isn’t about getting rich quickly. It is about building wealth steadily and deliberately over time.

The power of consistency

What stands out to me in this scenario is not the return assumption. It is the consistency.

Putting $5,000 into the market each year might not feel life-changing in the short term. In the early years, the portfolio will grow slowly, and it can feel like progress is limited.

But over time, your returns begin generating their own returns. Then those returns generate even more returns. Eventually, compounding starts to take over in a meaningful way.

I think this is where many investors underestimate what is possible. The real growth tends to come later, not at the beginning.

Backing quality ASX 200 shares

Of course, the 9% return assumption isn’t guaranteed, but it is possible.

You set yourself up to have a chance of achieving it by owning a portfolio of strong, growing businesses over a long period of time. And in my view, the ASX 200 offers plenty of shares that could help deliver that.

For example, a company like Goodman Group (ASX: GMG) gives exposure to global logistics and data centre infrastructure, which I believe are supported by long-term structural trends.

Healthcare names such as ResMed Inc. (ASX: RMD) and Cochlear Ltd (ASX: COH) operate in areas with growing demand and, in my opinion, strong competitive advantages.

Then there are technology and software businesses like TechnologyOne Ltd (ASX: TNE), Pro Medicus Ltd (ASX: PME), and WiseTech Global Ltd (ASX: WTC). These companies have delivered strong growth historically, and I think they highlight how innovation can drive long-term returns.

Even more traditional names like Commonwealth Bank of Australia (ASX: CBA) or Telstra Group Ltd (ASX: TLS) can play an important role, particularly when it comes to income and stability.

I believe a mix of these types of businesses can help create a balanced portfolio that has the potential to compound over time.

Time in the market matters most

One thing I have learned is that waiting for the perfect moment to invest can be a costly mistake.

Markets will always give you reasons to hesitate. There will be volatility, corrections, and headlines that make investing feel uncomfortable.

But if the goal is to invest $5,000 each year for decades, I think consistency matters far more than timing.

Some years you will invest at higher prices. Other years you will invest during pullbacks. Over time, those decisions tend to average out.

What matters most, in my opinion, is staying invested in ASX 200 shares and continuing to add to your portfolio.

Patience will be required

There is no getting around the fact that 33 years is a long time.

It requires patience and discipline. It also requires sticking with the plan even when markets are not cooperating.

But when I look at the alternative, trying to chase quick gains or jumping in and out of the market, I think the long-term approach is far more reliable.

And importantly, it is repeatable.

You do not need to predict the next big winner. You just need to consistently invest in quality ASX 200 shares and give them time to grow.

Foolish takeaway

Turning $5,000 a year into $1 million is not about luck. It is about consistency, quality, and time.

By investing regularly into ASX 200 shares and aiming for a long-term return of around 9% per annum, I believe reaching that milestone is achievable, even if it takes a little over three decades.

It might not be exciting in the early years. But over time, compounding can turn a simple plan into something very powerful.

The post How to become a millionaire with a $5,000 investment in ASX 200 shares each year appeared first on The Motley Fool Australia.

More reading

• 3 bargain ASX tech shares I’d buy right now
• Top brokers name 3 ASX shares to buy next week
• Building an ASX share portfolio from scratch? Here’s my game plan
• Top Australian shares to buy right now with $2,500
• Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Goodman Group, ResMed, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended Cochlear, Goodman Group, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re not a fan of picking stocks, I wouldn’t let that stop you from investing.

Not when there are exchange-traded funds (ETFs) out there that make investing easy.

And when it comes to Australian equities, one fund that stands out to me is the Vanguard Australian Shares Index ETF (ASX: VAS).

So, is it a good long-term investment? Personally, I think the answer is yes. But let’s now unpack why.

A simple way to own the Australian market

What I like most about this ETF is its simplicity.

Instead of trying to choose a handful of ASX winners, it gives you exposure to the broader Australian share market in one trade. It tracks an index that includes hundreds of companies, which means you are not relying on any single business to perform.

In my view, that diversification is incredibly powerful over the long term.

You are effectively backing the growth of corporate Australia as a whole, rather than trying to predict which individual company will come out on top.

Exposure across the market

Another reason I find the VAS ETF compelling is the breadth of its holdings.

At the top end, you get exposure to the giants of the ASX. Companies like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL) make up a significant portion of the portfolio. These are well-established businesses with strong market positions and, in many cases, global operations.

But what I think is often overlooked is that the ETF does not stop there.

It also includes mid-cap and smaller companies such as Catapult Sports Ltd (ASX: CAT), Collins Foods Ltd (ASX: CKF), and Bravura Solutions Ltd (ASX: BVS).

That mix matters.

The large caps tend to provide stability and income, while smaller companies can offer higher growth potential over time. By holding all of them together, I believe the ETF creates a more balanced long-term investment.

Low costs

One of the biggest advantages of this ETF, in my opinion, is its cost.

With a management fee of just 0.07% per year, it is extremely cheap. That might not sound like a big deal at first glance, but over a decade or more, fees can have a meaningful impact on returns.

The lower the cost, the more of the market’s return you get to keep.

That is one of the key reasons I often favour index ETFs for long-term investing.

Income and long-term returns

The Vanguard Australian Shares Index ETF also offers a dividend yield of just under 3%, which I think will appeal to income-focused investors.

Australian shares are generally known for paying dividends, and this ETF captures that characteristic of the market.

On top of that, it has delivered returns of around 10.7% per annum over the past 10 years, according to Vanguard

Of course, past performance is not a guarantee of future returns. But I do think it provides some reassurance that a diversified, low-cost approach to investing in Australian shares can deliver solid outcomes over time.

Foolish takeaway

If I were looking for a set-and-forget way to invest in ASX shares, the Vanguard Australian Shares Index ETF would be high on my list.

It offers broad diversification across large, mid, and small-cap companies, comes with a very low fee, and provides both income and long-term growth potential.

The VAS ETF is not designed to beat the market. Instead, it aims to be the market. And for long-term investors, I believe that is often more than enough.

The post Is the Vanguard Australian Shares Index ETF a good long-term investment? appeared first on The Motley Fool Australia.

More reading

• Building an ASX share portfolio from scratch? Here’s my game plan
• Which ASX ETFs have Aussies traded most since the Iran war began?
• This simple ASX strategy could outperform most investors
• 3 top Vanguard ETFs I would buy in April
• How long will it take for the ASX 200 to recover? Expert

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions, CSL, and Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended BHP Group, CSL, and Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a tough month for these rivalling ASX tech stocks.

Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) have slipped 12% and 15% respectively.

But zoom out, and the bigger picture hasn’t changed. Australia’s superannuation pool keeps growing. Advisers are consolidating platforms. And both companies are winning market share.

So, which one comes out on top right now?

Hub24: The growth rocket

This $7 billion ASX tech stock continues to impress.

Its 1H FY26 result was packed with momentum. Net inflows hit a record $10.7 billion. Revenue climbed 26% to $245.9 million. Even better, underlying net profit surged around 60% as scale kicked in.

Funds under administration reached $152.3 billion. And the company lifted its interim dividend by 50%.

That’s serious growth.

But the real story is structural. Hub24 is benefiting from rising adviser adoption. More than 5,200 advisers now use the platform. And the shift toward platform monogamy — where advisers consolidate onto one provider — is playing right into its hands.

This is a business gaining share in a growing market.

The downside? Valuation.

The ASX fintech stock has had a huge run and trades on premium multiples. That leaves little room for disappointment. Fee pressure and competition from legacy players upgrading their platforms are also risks.

Still, analysts remain bullish. The team at Macquarie Group Ltd (ASX: MQG) recently upgraded the ASX tech stock to an outperform rating with a reduced price target of $92.25. That’s a bit below the average 12-month price target of roughly $112.00, which points to a 39% upside at the time of writing.

Netwealth: The steady performer

Netwealth offers a slightly different story.

Its 1H FY26 result also impressed. Platform revenue rose 25%, and funds under administration hit a record $125.6 billion.

Growth remains strong.

But what really sets Netwealth apart is profitability. Its recurring fee model, high adviser retention, and sticky client base support stable margins and predictable cash flow. That’s gold for long-term investors.

The company also increased its interim dividend by around 20%, reinforcing its appeal as a reliable compounder.

Risks? Similar to Hub24.

Competition is intense. Fee pressure is always a threat. And staying ahead in platform technology requires constant investment.

Still, Netwealth tends to trade at a more conservative valuation. It’s not as explosive, but it’s consistent.

Trading View data show that most brokers see the ASX tech stock as a buy or even a strong buy. They have set the average 12-month price target at $28.49, suggesting around 34% upside.

Foolish Takeaway

Both Hub24 and Netwealth are riding powerful tailwinds. They sit at the centre of Australia’s platform shift, a space dominated by a handful of strong players.

Hub24 looks like the high-growth rocket. Strong inflows. Expanding margins. Rapid momentum.

Netwealth feels like the steady compounder. Profitable. Predictable. Built on sticky relationships.

Which is better? It depends on your style.

If you want faster growth and are comfortable with higher valuation risk, Hub24 stands out. If you prefer stability, recurring income, and a slightly more conservative profile, Netwealth may be the smarter pick.

Either way, both look well placed for the long term.

The post Hub24 vs Netwealth: Which ASX tech stock is the better buy now? appeared first on The Motley Fool Australia.

More reading

• 3 high-quality Australian stocks I would buy and hold for a decade
• 5 oversold ASX 200 shares to buy according to Wilsons
• Why DroneShield, Hub24, Syrah, and Weebit Nano shares are sinking today
• 2 amazing ASX shares to buy for long-term growth
• How to invest $10,000 in ASX dividend shares in 2026

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 Hub24, Macquarie Group, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.1% to 8,516.3 points.

Will the market be able to bounce back on Monday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for a tough start to the week following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 65 points or 0.75% lower. In the United States, the Dow Jones was down 1.7%, the S&P 500 dropped 1.7%, and the Nasdaq tumbled 2.15%.

Oil prices jump

It could be a good start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 5.45% to US$99.64 a barrel and the Brent crude oil price was up 4.2% to US$112.57 a barrel. This was driven by an escalation in the Middle East conflict just when the market was hoping for a peace deal.

AMP announces buyback

The AMP Ltd (ASX: AMP) share price will be on watch after the financial services company announced an on-market share buyback. AMP revealed that it will buy back up to $150 million of ordinary shares. AMP’s chief executive, Alexis George, said: “We remain committed to returning surplus capital to shareholders in the absence of a compelling alternative, and prioritising organic growth in our wealth businesses. Today’s announcement demonstrates this, with an on-market share buyback the most efficient use of capital at this time.”

Gold price rises

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price rose on Friday night. According to CNBC, the gold futures price was up 2.6% to US$4,524.3 an ounce. Traders appear to believe that the precious metal was oversold.

Buy Catapult shares

Bell Potter is feeling bullish on Catapult Sports Ltd (ASX: CAT) shares at current levels. In response to its trading update, the broker has retained its buy rating with a trimmed price target of $4.75 (from $4.85). Based on its current share price, this implies potential upside of almost 40% for investors. It said: “We choose not to make any change to our FY27 or FY28 forecasts at this stage – despite the stronger than expected year end ACV in FY26 – given, firstly, the lack of any other details regarding the FY26 result and, secondly, the strategy session next week which may provide further details. […]  Catapult remains our preferred mid cap exposure in the tech sector.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Catapult Sports Ltd (ASX: CAT) shares shot higher last week after it released a FY26 trading update.

It has been a bumpy year for the global sports data and analytics company, which is down roughly 20% year to date. 

What did the company announce last week?

The company revealed that it expects its annual contract value (ACV) for FY 2026 to be in the range of US$133 million to US$134 million with low churn. 

This represents year-on-year growth around 27% to 28% on a constant currency basis. 

In addition, EBITDA is anticipated to grow by roughly 50% year-on-year, as its profitability continues to outpace its strong top-line growth. 

These results sent Catapult shares racing higher last Thursday.

Interestingly, Catapult shares then retreated more than 6% on Friday. 

Following the results, Bell Potter released updated guidance on the technology stock.

Here’s what the broker had to say. 

Good end to the year

According to Bell Potter, Catapult’s expected annual contract value is now higher than it previously expected. 

The broker said free cash flow is forecast at $5–6 million, below expectations, but this is due to timing of payments rather than a fundamental issue. 

Bell Potter sees the strong annual contract value (ACV) result as the main positive, showing good business momentum. 

Following the results, Bell Potter only updated its FY26 forecasts for ACV, cash flow, and management EBITDA.

Its forecasts for revenue and statutory EBITDA remain unchanged, as the higher management EBITDA is believed to come from accounting adjustments rather than stronger underlying performance.

No changes have been made to FY27 or FY28 forecasts yet.

We choose not to make any change to our FY27 or FY28 forecasts at this stage – despite the stronger than expected year end ACV in FY26 – given, firstly, the lack of any other details regarding the FY26 result and, secondly, the strategy session next week which may provide further details.

Buy recommendation unchanged from Bell Potter

As a result, Bell Potter has retained its buy recommendation. 

However it did lower its price target slightly to $4.75 (previously $4.85). 

From last week’s closing price of $3.41, this indicates a healthy upside potential of 39%. 

The net result is a modest 2% decrease in our TP to $4.75 and we maintain our BUY recommendation. Catapult remains our preferred mid cap exposure in the tech sector.

Bell Potter isn’t the only broker with a positive outlook on Catapult shares. 

9 analysts forecasts via TradingView have an average one year price target of $6.11. 

This indicates approximately 79% upside from current levels. 

The post What’s Bell Potter’s updated view on Catapult shares after its earnings results? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today
• Which ASX tech stock is surging 11% on strong trading update?
• Catapult Sports delivers strong FY26 growth and profitability

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