Tag: Stock pick

At the current Fortescue Ltd (ASX: FMG) share price, investors may find an ASX mining share with an incredibly attractive dividend yield.

The iron ore miner has been one of the biggest dividend payers on the ASX over the last 10 years.

Fortescue’s dividend in FY26 could be another year of a large payout for shareholders. Let’s look at how large the payment could be for the 2026 financial year.

Dividend projection for the ASX mining share

Despite all of the global economic disruption during FY26, the iron ore price has held up fairly well above US$100 per tonne through most of the 2026 financial year.

According to Trading Economics, the iron ore price was trading above US$110 per tonne a few weeks ago. While it has dropped quite a bit since that peak in mid-May, it’s still above US$100 per tonne, which is still high enough for Fortescue to generate very pleasing net profit.

Looking at the projection on Commsec, the business is forecast to pay an annual dividend per share of $1.20 in FY26, though investors have already received the FY26 interim dividend. At the time of writing, the annual payout translates into a dividend yield of 5.8% excluding franking credits and 8.25% including franking credits.

That’s a high dividend yield compared to the overall dividend yield of the ASX share market. But, is it good enough to buy the ASX mining share just for the passive income?

The passive income may reduce

While the dividend for FY2026 may be exceptionally attractive, it’s important to consider what may happen with future dividends and if the Fortescue share price is attractive.

The dividend and profit this year may be strong, but future years may not be as good. One of the factors is that iron ore production from Africa could increase in the coming years – increased supply is likely to be a headwind for the iron ore price and therefore Fortescue’s financials.

The current projection on Commsec suggests the business could pay an annual dividend per Fortescue share of 95 cents in FY27 (down 21%) and 67.5 cents per share in FY28 (down another 29%). Therefore, the Fortescue dividend yield is estimated to reduce in the next two financial years.

I wouldn’t particularly want to invest in a business for passive income if the dividends are expected to fall substantially relatively soon.

Is the Fortescue share price a buy?

In terms of the attractiveness of the Fortescue share price, analysts are not feeling positive about the ASX mining share.

According to Commsec’s collation of analyst opinions on the company, there are currently eight sell ratings, eight hold ratings and one buy rating regarding Fortescue shares.

It seems there are better opportunities out there than Fortescue shares.

The post Is the Fortescue share price a buy for its 8% dividend yield? appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 4 ASX 200 shares as a sell!
• ASX 200 slips as oil shock puts investors on edge
• 3 top ASX mining shares for investors right now
• Are Fortescue or Rio Tinto shares the better buy?
• ASX 200 iron ore shares down 5%: Should you buy the dip?

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.

If you have $10,000 to invest and want passive income, then it could be worth considering the three ASX dividend shares in this article.

Here’s what you need to know about these names:

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share to look at is Harvey Norman.

It is often viewed simply as a retailer, but there is more to the story than televisions, sofas, fridges, and laptops.

Harvey Norman is really a way to gain exposure to the household replacement cycle. People may delay big-ticket purchases when conditions are tough, but over time homes still need appliances, furniture, technology, bedding, and renovation-related products.

That gives the company exposure to spending that can recover when consumer confidence improves.

It also owns a substantial property portfolio, which gives the business a different shape from many other retailers. This property backing can add support to the investment case and gives Harvey Norman another source of value beyond store trading alone.

Harvey Norman trades with a forecast fully franked FY 2027 dividend yield of 6.4%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth a look is Rural Funds.

It gives investors a way to own part of Australia’s agricultural infrastructure without having to directly operate a farm.

The group owns agricultural assets and leases them to operators, which means its investment case is more about rental income than trying to pick the next commodity price move.

That is a useful distinction for income investors. Agriculture is essential, but farming can be volatile. Weather, water availability, commodity prices, and operating costs can all affect returns. Rural Funds sits in a different position by owning the underlying assets and collecting rent from tenants.

It is forecast to provide a 5.7% dividend yield in FY 2026 and FY 2027.

Transurban Group (ASX: TCL)

A final ASX dividend share to look at is Transurban.

It owns toll roads in major cities across Australia and North America. These roads form part of the daily movement of commuters, freight operators, airport travellers, and businesses.

That gives the company a practical role in urban life. It is not selling something people buy on impulse. It owns infrastructure that many drivers use because it saves time or provides access to important routes.

This can support steady cash generation over the long term, which is what most income investors are looking for.

The market expects a 4.6% dividend yield from Transurban shares in FY 2027.

The post Where to invest $10,000 in ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Why Karoon Energy, Novonix, Transurban, and Woodside shares are sinking today
• Buy, hold, sell: Accent, Karoon Energy, and Transurban shares
• How to make $2,000 of monthly passive income from ASX shares
• Want to retire earlier? This mix of ASX shares and ETFs could help
• Why Karoon Energy, PLS, South32, and Transurban shares are falling 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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman, Rural Funds Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech shares have endured a rough 12 months, but two former market favourites are starting to show signs of life.

Both TechnologyOne Ltd (ASX: TNE) and Catapult Sports Ltd (ASX: CAT) have posted solid gains over the past month despite remaining well below their levels of a year ago.

So, are investors witnessing the start of a recovery, or is this simply a temporary bounce in a beaten-down sector?

TechnologyOne: Quality business, battered share price

TechnologyOne shares have been swept up in the broader tech-sector sell-off over the past nine months.

While the software company’s shares have climbed 8% over the past month, they remain down 23% over the last year.

The pullback of the ASX tech share is somewhat surprising given the company’s operational performance.

In mid-May, TechnologyOne reported its 17th consecutive first-half profit result and reaffirmed its FY2026 guidance, demonstrating the resilience of its software-as-a-service business model.

The company provides enterprise software solutions to government, education, healthcare, and other large organisations. Its sticky customer relationships and recurring revenue base have helped underpin years of consistent growth.

Of course, no investment is without risks. A prolonged slowdown in technology spending, increased competition, or a failure to execute on growth initiatives could weigh on future earnings.

However, analysts at Canaccord Genuity remain upbeat on the ASX tech share.

They describe TechnologyOne as a high-quality software company “with a deeply embedded customer base across key verticals including government and education”.

The broker added:

The company’s operational momentum is strong, with FY26 tracking towards the top end of guidance and FY27 is shaping up as another ~20% profit before tax growth year. We remain confident in TNE’s resilience against AI disruption, runway for growth, supported by earnings upgrades from its AI tool Plus.

Catapult Sports: A global sports-tech leader

Catapult Sports has also endured a difficult year.

The ASX tech share has gained 6% over the past month but remains down 43% over the past 12 months.

The company develops performance analytics and athlete monitoring technology used by professional sporting teams around the world. Its wearable devices and software platforms help teams track player performance, manage workloads, and reduce injury risks.

Catapult’s biggest strength is its global footprint and leadership position in a niche market with significant barriers to entry. As professional sports become increasingly data-driven, demand for its products could continue growing.

The risks largely revolve around execution. Investors are expecting strong revenue growth and expanding profitability, meaning any slowdown could pressure the share price.

Despite those risks, analysts remain optimistic on the $1 billion ASX tech share. Bell Potter has a buy rating and $4.65 price target on Catapult shares. Based on the current share price of $3.16, that implies upside of approximately 47%.

Morgans is even more bullish. It has a buy rating and a $5.40 price target, suggesting potential upside of around 70%.

The post Why these 2 battered ASX tech shares look ready to surge appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares to buy and hold for the next decade
• 3 top ASX 300 shares tipped to jump 30% to 50%
• 3 incredible ASX growth shares tipped to rise 20% to 70%
• 2 ASX 200 shares I’d want my kids to own
• How to build a $1 million ASX share portfolio from zero

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

If income is the goal, I think it can make sense to look for ASX dividend shares backed by assets and products that people rely on.

I would want to own businesses with cash flows that are supported by essential infrastructure, repeat demand, and long customer relationships.

Two ASX dividend shares I would consider buying this month for an income portfolio are named below.

APA Group (ASX: APA)

APA Group is one dividend share I think looks attractive for income-focused investors.

The business owns and operates a large portfolio of energy infrastructure assets, including gas transmission, processing, compression, storage, power generation, battery storage, and electricity transmission infrastructure.

That gives APA a very different profile to many ordinary dividend shares. The company’s assets help move energy around the country. It delivers around half of Australia’s domestic gas through more than 15,000 kilometres of pipelines that it owns, operates, and maintains. That kind of infrastructure is hard to replicate and remains important even as the energy system changes.

I also like that APA is not just sitting still as an old-world gas pipeline business. It has exposure to gas-powered electricity, renewables, batteries, and electricity transmission. Australia’s energy transition will be messy and expensive, and I think infrastructure owners can play an important role in keeping the system reliable.

The income appeal is also very clear. According to CommSec, APA is expected to pay dividends per share of 58 cents in FY26, 59 cents in FY27, and 69 cents in FY28. Based on the current share price of around $10.42, that implies dividend yields of approximately 5.6%, 5.7%, and 6.6%, respectively.

Of course, investors still need to watch debt, interest rates, regulation, and capital spending. Infrastructure businesses are not immune from risk. But I think APA’s asset base and role in Australia’s energy system make it a strong candidate for investors seeking dependable income.

Amcor plc (ASX: AMC)

Amcor is another ASX dividend share I would consider buying this month.

This is not a business that needs a booming economy to remain useful. Amcor makes packaging and dispensing solutions used across nutrition, health, beauty, wellness, and other consumer categories.

That may sound simple, but packaging sits inside a huge number of everyday products. Food needs to be protected, medicines need safe and reliable packaging, and beauty and personal care products need containers, closures, cartons, and flexible packaging that work well for brands and consumers.

Amcor operates across more than 400 locations in more than 40 countries, which gives it a global footprint and exposure to many different customers and markets. I think that global spread is important.

Amcor is not relying on one country, one retailer, or one product category. It is supplying packaging solutions across a wide range of consumer staples and healthcare-related markets. That can help make its earnings more resilient than many cyclical businesses.

The dividend also looks sizeable.

CommSec consensus estimates predict that Amcor will pay dividends per share of $3.66 in FY26, $3.27 in FY27, and $3.34 in FY28. Based on a share price of around $58.78, that implies dividend yields of about 6.2%, 5.6%, and 5.7%, respectively.

I think that is a strong income profile for a global packaging business.

There are still risks, including input costs, currency movements, customer demand, debt, and the need to keep investing in more sustainable packaging. But I think Amcor’s scale, customer relationships, and exposure to repeat-use consumer categories make it a dividend share worth considering.

Foolish takeaway

I do not think income investing needs to be exciting. In fact, some of the most useful dividend shares are attached to assets and products people keep relying on through different conditions.

APA and Amcor both carry risks, particularly around debt, costs, regulation, and capital spending. But for investors seeking income, I think their forecast yields and underlying business roles make them worth considering.

If the goal is dependable cash flow rather than market excitement, boring can be beautiful.

The post 2 rock-solid ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

More reading

• How to make $2,000 of monthly passive income from ASX shares
• These ASX dividend shares keep giving investors a pay rise
• How to build a passive income stream for life with ASX shares
• 3 safe ASX dividend shares to buy for income
• How I’d aim to build $10,000 a year in passive income from 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc and Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Over the long-term, it’s the ASX shares increasing earnings at a good rate of compounding that are most likely to grow our wealth over time.

Therefore, businesses that can unlock the most earnings growth are best positioned to deliver the strongest shareholder returns.

In the next three to five years, I’m expecting the following investments to deliver excellent returns. In a decade, they could have achieved significant growth for shareholders.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the leading ASX tech shares, in my view. It offers enterprise software for more than 1,300 clients including businesses, government agencies, local councils and universities.

Organisations are increasingly seeking high-quality software to help run their operations, given how it allows them to run more efficiently and give all users access to the best software possible.

TechnologyOne regularly spends more than 20% of its revenue on research and development (R&D) each year, enabling the ASX share to make the best software possible and unlocking more growth.

One of the company’s key drivers of its financials is how it targets revenue growth from its existing customer base each year of around 115%. That’s the net revenue retention rate (NRR).

If the company’ overall revenue grows at 15% per year, that’s a fantastic growth rate to help earnings growth at least at that pace.

Plus, the business expects to grow its profit margins in the coming years as it benefits from operating leverage.

I’m particularly optimistic by what the business can achieve in the UK because the organisation and government set-ups are fairly similar to Australia.

If it can reach its $1 billion annual recurring revenue (ARR) goal in the next few years, I think it’ll be of the ASX’s top tech shares.

According to the projection on CMC Invest, the ASX share is valued at 62x FY26’s estimated earnings.

WCM Quality Global Growth Fund (ASX: WCMQ)

The other investment I want to talk about is this exchange-traded fund (ETF), which looks over the international share market for opportunities that can deliver an improving economic moat.

It’s the economic moat that allows a business to protect and grow its earnings from competitors who want to come in and steal some customers.

By only focusing on businesses with improving economic moats, I think WCM’s portfolio is, on average, very high-quality. On top of that, this ASX ETF wants to see that potential investments have a corporate culture that supports the improving economic moat.

In terms of investment returns, impressively, the fund has returned an average of around 13% per year in the last five years thanks to its investment strategies.

I think every Australian would benefit by having some of their portfolio invest in international shares, and this is an appealing way to do it. It also comes with a bonus of a targeted dividend yield of at least 5%.

These aren’t the only ASX shares I expect to have a strong decade ahead, though.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• Why these 2 battered ASX tech shares look ready to surge
• How much is needed in superannuation to target an $8,000 monthly passive income?
• 2 ASX 200 shares I’d want my kids to own
• How to build a $1 million ASX share portfolio from zero
• These 3 ASX technology stocks can prosper in uncertain times

Motley Fool contributor Tristan Harrison has positions in Technology One and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended 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 are looking for ASX 200 shares that brokers are bullish on, then read on.

Listed below are 10 shares that have been given buy ratings by analysts this week.

Here’s what they are recommending:

Capstone Copper Corp (ASX: CSC)

Macquarie has retained its outperform rating on copper miner Capstone Copper and lifted its price target to $18.00 from $16.40.

Based on the current share price of $15.82, this implies potential upside of approximately 14%.

Genesis Minerals Ltd (ASX: GMD)

Macquarie has retained its outperform rating and $9.00 price target on this ASX 200 gold share.

Based on its current share price of $6.20, this suggests that upside of 45% is possible for investors.

Goodman Group (ASX: GMG)

Citi remains positive on Goodman Group.

The broker has retained its buy rating and $40.00 price target on the industrial property group’s shares. Based on the current share price of $32.70, this suggests potential upside of approximately 22%.

Guzman y Gomez Ltd (ASX: GYG)

UBS continues to see value in Guzman y Gomez.

The broker has retained its buy rating and $24.00 price target on the restaurant operator’s shares. Compared with the current share price of $19.04, this implies potential upside of approximately 26%.

Liontown Resources Ltd (ASX: LTR)

Bell Potter is sticking with its buy rating on Liontown Resources.

The broker has lifted its price target to $2.90 from $2.65. Based on the current share price of $2.13, this points to potential upside of approximately 36%.

Lovisa Holdings Ltd (ASX: LOV)

UBS has retained its buy rating and $26.00 price target on this ASX 200 fashion jewellery retailer’s shares.

Based on the current share price of $22.83, this implies potential upside of approximately 14%.

Megaport Ltd (ASX: MP1)

Citi remains bullish on this ASX 200 share.

The broker has retained its buy rating and $22.10 price target on the network-as-a-service company’s shares. Based on the current share price of $19.84, this suggests potential upside of approximately 11% is possible.

Qantas Airways Ltd (ASX: QAN)

UBS is staying positive on Qantas.

The broker has retained its buy rating on the airline operator’s shares, though it has trimmed its price target slightly to $11.15 from $11.25. Based on the current share price of $9.98, this implies potential upside of approximately 12%.

SEEK Ltd (ASX: SEK)

UBS also remains positive on SEEK.

The broker has retained its buy rating and $18.20 price target on the job listings company’s shares. Compared with the current share price of $13.94, this implies potential upside of approximately 31%.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, Citi continues to rate Treasury Wine as an ASX 200 share to buy.

The broker has retained its buy rating and $5.50 price target on the wine company’s shares. Based on the current share price of $4.83, this suggests potential upside of approximately 14%.

The post 10 ASX 200 shares given buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy now
• How these 3 ASX 200 mining stocks have more than tripled investors’ money in a year
• 2 of the best ASX 200 blue-chip shares I’d buy in June
• Is Goodman Group a buy for dividend income today?
• How to make $2,000 of monthly passive income from ASX shares

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Goodman Group, Lovisa, Megaport, and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Lovisa, Macquarie Group, Megaport, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Goodman Group, Lovisa, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying Commonwealth Bank of Australia (ASX: CBA) shares five years ago would have delivered more than twice the gains posted by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Among the helpful tailwinds, the ASX 200 bank stock has benefited from a strong management team as well as its market dominating position.

Not only does CommBank count as Australia’s biggest bank, for much of the past five years it was also the biggest stock on the ASX. A title it only recently handed back to BHP Group Ltd (ASX: BHP).

So, if you’d bought $10,000 worth of CBA shares five years ago, just how much would that really be worth today?

A $10k investment in CBA shares

Five years ago, on 18 June 2021, you could have picked up CBA shares for $103.69 each.

For $10,000, then, you could have bought 96 shares in the ASX 200 bank stock, with enough change left over for a decent lunch.

In afternoon trade on Wednesday, shares were changing hands for $162.89, marking a five-year gain of 57.1%. That means you could now sell your 96 shares for $15,637.

But wait. There’s more!

If you owned CBA shares for the last five years, you’d also have received the past 10 fully franked dividends the bank paid to eligible stockholders over this time.

According to my trusty calculator, that works out to $22.20 a share in passive income.

Assuming you spent those dividends as they came in, rather than reinvesting them, then the accumulated value of the 96 CommBank shares you bought five years ago for $10,000 is now worth $17,769.

Not to mention that decent lunch you had.

But what is that really worth?

Real versus nominal value

With inflation coming back with a vengeance following the COVID years, it pays to distinguish between real value and nominal value.

What do I mean?

Basically, the nominal value of an Australian dollar doesn’t change over time. However, its real value is eroded over time by inflation as the purchasing power of that dollar declines.

According to various estimates, since June 2021 inflation has reduced the real value of the Aussie dollar by around 22.3% to 22.9%.

If we take the middle value of 22.6%, then the $10,000 in cash you have buried in your backyard would be worth around $8,156 five years ago. Which is why we aim to buy ASX shares that outpace the eroding powers of inflation and tend to leave the cash burying to others.

Now, as we saw above, the nominal value of the $10,000 worth of CBA shares you bought five years ago would be $17,769 today.

The real value would be worth $14,493.

So, while inflation has taken a material bite out of those real gains, CommBank stock has still delivered a real return of around 50% in five years.

The post $10,000 invested in CBA shares 5 years ago is now really worth… appeared first on The Motley Fool Australia.

More reading

• The RBA just held rates at 4.35%. Here’s what it means for these ASX bank shares
• If I invest $5,000 in CBA shares today, what passive income would I get in FY27?
• Got $10,000? I’d buy these ASX 200 shares right now
• Forget CBA and buy these ASX dividend shares
• What does the RBA decision mean for the big four bank shares?

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

The S&P/ASX 200 Index (ASX: XJO) has shown signs of life over the last week as investors have enjoyed some positive news. 

Australia’s benchmark index is up almost 5% across the last 5 days of trading as headwinds have eased.

Firstly, on Friday last week the ASX 200 jumped as energy shares led the charge. 

Then on Monday, investors continued piling into ASX 200 stocks after a breakthrough in the conflict between the United States and Iran.

Investors also seemed to take the RBA interest rate decision as a positive one as the benchmark index rose following the announcement. 

While it’s been a volatile year in 2026 for investors, these headwinds may now be easing, which could help push the ASX 200 into a rally to end the year. 

If that does eventuate, there are several key sectors that could rebound. 

Technology shares

Despite already showing some signs of recovery, many ASX tech shares remain well below fair value according to brokers. 

Many of these ASX 200 tech companies are yet to fully recover following AI replacement fears. 

Several options that remain well below broker estimates include:

• Xero Ltd (ASX: XRO)
• WiseTech Global Ltd (ASX: WTC)
• NextDC Ltd (ASX: NXT). 

If interest rates are cut later this year, ASX tech shares like these could stand to benefit. 

When interest rates fall, the future earnings of tech companies are discounted at a lower rate, which mechanically boosts their present valuations.  

This effect is amplified for ASX tech stocks because they tend to be long-duration, growth-oriented businesses whose value is heavily weighted toward profits years down the line. 

Lower rates also reduce borrowing costs for capital-hungry companies and ease pressure on Australian mortgage holders. 

This can help free up household spending on software subscriptions and digital services. 

Finally, with cash and bonds yielding less, investors rotate into growth equities. ASX tech tends to be a primary beneficiary of that shift.

Investors looking to diversify across the entire sector could also consider the Betashares S&P ASX Australian Technology ETF (ASX: ATEC). 

The fund offers a simple way to back local innovation across several different tech names. 

Aussie healthcare

ASX healthcare shares have been amongst the hardest hit in 2026. 

The S&P/ASX 200 Health Care (ASX: XHJ) index remains down nearly 30% year to date. 

It has been hit hard by a rotation away from the sector and into energy, defence and safe-haven assets over the last year. 

While the tech sector may attract growth minded investors, many ASX healthcare shares could appeal to value investors.

Some of the largest ASX healthcare shares by market cap sit close to multi-year lows. 

Those happy to play the long game could consider names such as: 

• CSL Ltd (ASX: CSL)
• Pro Medicus Ltd (ASX: PME)
• Cochlear Ltd (ASX: COH). 

Recent broker targets are anticipating as much as a 37% rise for these ASX 200 shares. 

The post If the ASX 200 rallies in the back half of the year these sectors could be portfolio winners appeared first on The Motley Fool Australia.

More reading

• Do WiseTech Global shares have a moat?
• Down 65%+, why I’d buy and hold these ASX shares
• Investors are buying CSL shares again. Should you?
• After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know
• How to make $2,000 of monthly passive income from ASX shares

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, WiseTech Global, and Xero. 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 and Xero. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and pushed higher. The benchmark index rose 0.55% to 8,966.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to tumble

It looks set to be a disappointing session for Australian investors on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 72 points or 0.8% lower this morning. In the United States, the Dow Jones was down 1%, the S&P 500 fell 1.2%, and the Nasdaq tumbled 1.35%.

Hold Accent shares

Accent Group Ltd (ASX: AX1) shares are almost fully valued according to analysts at Bell Potter. This morning, in response to a takeover approach, the broker has retained its hold rating on the footwear retailer’s shares with an improved price target of 80 cents (from 60 cents). It said: “We see this as an opportunistic bid at a time when AX1 navigates cyclical low macroeconomic conditions especially in its key lifestyle footwear market (~60% of the group) with the broader category trending flat to negative in Australia and multiple earnings downgrades resulted from weak market conditions & poor performance from non-core businesses.”

Oil prices ease

It could be a subdued session for ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices eased further overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$75.96 a barrel and the Brent crude oil price is down 0.1% to US$78.88 a barrel. Traders have been selling oil since the US and Iran agreed to a peace deal.

BHP and Rio Tinto shares on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a poor session on Thursday after their NYSE-listed shares dropped on Wall Street overnight. BHP shares were down almost 2.5% and Rio Tinto shares were down almost 3%. This may have been driven by a pullback in commodity prices, including a 2.1% decline in the copper price.

Gold price sinks

It could be a poor session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price sank overnight. According to CNBC, the gold futures price is down 1.8% to US$4,227.3 an ounce. This was despite the US Federal Reserve keeping interest rates on hold overnight. This was the first policy decision under new chair Kevin Warsh.

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

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares, including Macquarie and BHP, smashing new 52-week-plus highs today
• Why is the ASX 200 hitting a fresh 2 month high today?
• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Guess which ASX stock is rocketing 10% today?

Motley Fool contributor James Mickleboro has positions in Accent Group and Woodside Energy Group Ltd. 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 Accent Group and BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

SpaceX has had an extraordinary first few days as a public company.

Shares were issued at US$135 before beginning trade on the Nasdaq last Friday, closing their first session at US$160.95 before finishing Tuesday at US$201.80.

That leaves Space Exploration Technologies Corp (NASDAQ: SPCX) shares well above the IPO price after just four trading sessions.

Australian investors cannot buy SpaceX directly on the ASX. But two ASX-listed options may benefit directly from this momentum.

Why SpaceX’s rally matters for ASX investors

Australian mining billionaire Gina Rinehart secured more than US$1 billion worth of SpaceX shares through Hancock Prospecting during the IPO.

That stake has already generated a significant paper profit million in under a week.

Rinehart described the investment as betting that the company “could become a major driver of demand for critical minerals and off-Earth infrastructure.”

That scale of return, on that scale of investment, in that short a window, has put SpaceX firmly back in the spotlight for Australian investors searching for a way in.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is the most direct ASX-listed way to gain exposure to the rally.

SpaceX is likely soon to be included in RCKT thanks to the fund’s fast-track inclusion feature. This would allow Australian investors to gain direct allocation to SpaceX through a single ASX trade.

RCKT already holds 28 companies across the global space economy, including Rocket Lab and AST SpaceMobile. Both of these have rallied alongside SpaceX as investor enthusiasm for the sector broadens.

RCKT launched at $14 per unit on 12 May 2026 and has had a volatile ride in the month since listing. This was largely due to the anticipation built ahead of the SpaceX listing.

With SpaceX up significantly since debut, the case for RCKT’s eventual SpaceX inclusion has only strengthened.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems Holdings (EOS) offers a different way to participate in the space economy momentum that SpaceX’s rally has generated.

EOS operates a dedicated Space Systems division providing laser tracking and communications technology for satellite operators globally.

As the Starlink constellation grows toward the 42,000 satellites the company has regulatory approval to eventually deploy, the demand for precision ground infrastructure of the kind EOS provides continues to grow alongside it.

EOS chair Garry Hounsell confirmed at the company’s AGM that 60% to 80% of its $726 million order book is expected to convert to revenue in 2026 and 2027. This has provided a solid earnings base independent of SpaceX-driven sentiment.

The risk worth remembering

SpaceX’s current valuation leaves very little room for disappointment. The company has already pushed past US$2 trillion within hours of opening.

Hot IPOs often fail to outperform the market in their first few years as public companies, and a sharp pullback in SpaceX shares could quickly cool sentiment across RCKT and EOS as well.

Both stocks remain volatile and should be sized accordingly.

Foolish takeaway

SpaceX shares are up significantly. Australian investors cannot buy SpaceX directly, but RCKT ETF offers the closest ASX-listed proxy, with potential direct SpaceX inclusion on the horizon.

EOS on the other hand, provides exposure to the infrastructure growth that a larger Starlink constellation continues to demand.

For investors who believe the space economy momentum has further to run, both deserve a place on the watchlist.

The post SpaceX climbs nearly 20% after its IPO. Here’s why that is good news for these ASX shares appeared first on The Motley Fool Australia.

More reading

• Why AIC Mines, EOS, Flight Centre, and Nickel Industries shares are racing higher today
• EOS shares rocket 9% on BAE Systems deal
• After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know
• SpaceX shares are rocketing – how can Aussie investors get exposure?
• Why Aussie Broadband, Coles, EOS, and Santos shares are falling on Monday

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