Tag: Stock pick

Are you hunting for market-beating returns for your investment portfolio?

If so, it could be worth considering the three ASX 200 shares in this article.

That’s because the team at Morgans has named them as buys and expects outsized returns from their shares.

Here’s what it is recommending to clients:

Generation Development Group Ltd (ASX: GDG)

Morgans thinks this diversified financial services company’s shares could be great value.

It has a buy rating and $6.16 price target on its shares. Based on its current share price of $3.66, this implies potential upside of almost 70% over the next 12 months.

Commenting on the company, the broker said:

GDG has provided a 3Q26 quarterly update. This quarterly was something of a familiar story, in our view – the Investment Bond business again delivered ahead of expectations, while Evidentia once again fell short of the mark. We lower our GDG FY26F/FY27F EPS by -4%-11% on more conservative earnings estimates particularly around Evidentia.

Our price target is set at A$6.16 (previously A$6.66). We continue to be attracted to GDG’s exposure to structural growth areas, and its strong competitive positioning in these markets. With GDG trading at a >20% discount to our target price, we maintain our Buy recommendation.

Newmont Corporation (ASX: NEM)

Another ASX 200 share that Morgans is bullish on is Newmont.

In response to a strong quarterly update from the gold giant, the broker has put a buy rating and $208.00 price target on its shares. Based on its current share price of $166.16, this suggests that upside of 25% is possible. It explains:

Strong beat and capital returns increased: NEM delivered a strong beat across multiple operating and financial metrics, while completing its US$6bn buyback and announcing a further US$6bn program. The result reinforces NEM’s positioning as a high-quality, cash-generative gold producer with strong balance sheet flexibility and increasing capacity to return capital to shareholders. Maintain BUY rating with a A$208ps target price.

Pro Medicus Ltd (ASX: PME)

Lastly, Pro Medicus could be an ASX 200 share to buy according to Morgans.

After adjusting its financial model to be more conservative, the broker has put a buy rating and $210.00 price target on its shares. Based on its current share price of $138.12, this implies potential upside of 52% for investors over the next 12 months. It commented:

In this note, we deploy a new PME model where we have deliberately set a lower bar. Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished. Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction.

The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds. Our target price is reduced to A$210 p/s and we retain our Buy recommendation.

The post These ASX 200 shares could rise 25% to 70% appeared first on The Motley Fool Australia.

More reading

• Which beaten down ASX healthcare stock is a better buy right now: Pro Medicus vs Cochlear shares
• Here are the top 10 ASX 200 shares today
• 3 top ASX 200 gold stocks brokers say are buys now
• How high does Macquarie think Newmont shares will go?
• Buy, hold, sell: Pro Medicus, Life360, A2 Milk shares

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Generation Development 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.

It’s not common to find ASX shares that numerous analysts all rate as a buy at the same time. But, there are a few names that are (almost) universally liked by every analyst that has rated the business.

It’s interesting when one expert rates a business as a buy, but when multiple investment professionals say a company is worth owning, it’s a very interesting situation to look at.

Let’s look at two businesses that have extremely positive ratings.

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband describes itself as the fifth largest provider of broadband services in Australia, with long-term growth in the residential segment. The business provides other offerings like data, voice and managed solutions to business, enterprise and government customers. It also provides wholesale services to other telcos and managed service providers.

According to CMC Invest, there have been eight recent analyst ratings on the business, with seven of those being buys. The average price target of all of those ratings is $6.16, which suggests a possible rise of 14% over the next year from where it is at the time of writing.

The ASX share is delivering good growth, which is helping it deliver pleasing financial performance.

In the FY26 half-year result, it reported 13.7% year-over-year growth of broadband connections to 827,683. This helped it deliver revenue growth of 8.4% to $637.8 million, underlying operating profit (EBITDA) grew 13.5% to $74.7 million and underlying net profit after tax (NPAT) rose 40.9% to $22.3 million.

The business is expecting to grow its FY26 EBITDA to grow by between 17% to 21%, to between $162 million to $167 million, which is an excellent growth rate, in my view.

According to the projection on CMC Invest, the business is valued at 18x FY27’s estimated earnings.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a portfolio of premium youth fashion brands. Its main business is Universal Store (trading under the Universal Store and Perfect Stranger retail banners) and CTC (trading under the THRILLS and Worship brands). It has close to 120 stores across Australia.

According to CMC Invest, there have been seven recent analyst ratings on the ASX share, with all of those being buys.

The average price target on Universal Store is $10.45, suggesting a possible rise of more than 40% over the next 12 months.

This business is growing at a rapid pace – in the FY26 half-year result, group sales increased by 14.2% to $209.6 million. Universal Store sales rose 11.9% to $174.8 million and Perfect Stranger sales soared 41.5% to $17.8 million.

Universal Store is expecting to open up to 17 stores in FY26 and it’s pursuing “additional new store opportunities” while “being prudent to ensure long-term profitability.”

According to the projection on CMC Invest, the ASX share is valued at just 12x FY27’s estimated earnings.  

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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

Boss Energy Ltd (ASX: BOE) shares have yet to recover from the massive selloff incurred on 28 July.

Shares in the S&P/ASX 300 Index (ASX: XKO) uranium stock closed down a very painful 43.8% on the day. That rout came after the miner increased its full year FY 2026 cost guidance and cut its production guidance to 1.6 million pounds of uranium, citing issues with the quality of its feedstock.

Boss Energy had previously been aiming to produce 2.45 million pounds of uranium a year longer term.

Most recently, on Monday, Boss Energy shares closed down 1.9%, trading for $1.58 each.

So, is the ASX 300 uranium stock finally trading for a bargain?

Boss Energy shares: Buy, hold or sell?

Late last week, MPC Markets’ Jonathan Tacadena analysed the outlook for the Aussie uranium miner (courtesy of The Bull).

“Boss is a multi-mine uranium producer,” Tacadena said.

Addressing the miner’s latest FY 2026 production guidance cut, reported at its quarterly results (Q3 FY 2026) release on 15 April, he noted:

Boss has cut production guidance at its Honeymoon operation in South Australia from 1.6 million pounds drummed to between 1.4 million and 1.45 million pounds drummed. Heavy rain had impacted third quarter production in 2026 by restricting site access and limiting the delivery of goods required for production.

But with Boss Energy shares having taken another tumble on the guidance cut, and showing some signs of recovery since, Tacadena believes stockholders would do well to hold onto their shares.

Summarising his hold recommendation, Tacadena said:

The share price fell on the news, but bounced in the following days, indicating the lows may be in for BOE and downside risk is lower for now. Any good news moving forward should reward patient investors.

What’s else happened with ASX 200 uranium stock in Q3?

Amid the inclement weather conditions Tacadena mentioned above, Boss Energy produced 203,000 pounds of uranium in Q3. That was significantly below its prior quarterly guidance of 240,000 pounds to 270,000 pounds.

“We recognise this downgrade is disappointing, particularly after maintaining guidance as recently as March,” Boss Energy managing director Matthew Dusci said of the miner’s reduced full year production guidance.

Dusci added:

At that time, our expectation was that site access and reagent deliveries would normalise during the month. Subsequent unexpected rainfall, combined with the degraded baseline condition of access roads, extended disruption materially beyond that assumption.

This has impacted both production and the timing of commissioning critical infrastructure during ramp-up.

Boss Energy shares closed down 9.3% on 15 April, the day of the quarterly update release.

The post Down 42% in a year, are Boss Energy shares now a bargain buy? appeared first on The Motley Fool Australia.

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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.

At The Motley Fool, we focus on core investing principles centred around diversification and a long-term mindset.

This largely focuses on quality, blue-chip companies and diversified ASX ETFs.

However, there is no denying that ASX small-caps can be a profitable allocation in any portfolio. 

So if you are looking to sprinkle an allocation into ASX small-caps with upside potential, these three have drawn positive attention from brokers following their recent results.

Oneview Healthcare PLC (ASX: ONE)

Oneview Healthcare provides interactive patient care

The company’s Care Experience Platform (CXP) is a unified set of digital tools in a single bedside solution that connects patients, families and care teams with services, education, and information during hospital stays.

A recent report from Bell Potter has indicated ASX small-cap could double in value over the next year. 

The company recently released a quarterly report.

Following this, Bell POtter retained its speculative buy recommendation and price target of 45 cents. 

From yesterday’s closing price of 17.5 cents, this indicates a potential upside of 157%. 

Bell Potter did note that while the company expects ~20% growth in live endpoints driven by a strong pipeline, execution risk remains as investors await faster conversion and stronger revenue growth, with valuation unchanged and caution maintained until consistent financial performance is demonstrated.

Despite improving thematics and the need for hospitals to utilise efficiency tools to plug the operating impact of nurse shortages, we remain cautious ahead of more consistent performance on conversion and financial performance.

WRKR Ltd (ASX: WRK)

WRKR is a financial technology company, which engages in the design of innovative overlay capability for banking, wealth management, pensions, and financial services.

It also recently released a quarterly report.

Following the release, Bell Potter reaffirmed buy recommendation, however reduced its share price target to 17.5 cents.

This target is a healthy 57% higher than yesterday’s closing price. 

The broker noted it was impressed with a reported record cash receipts of $4.3m, including payment of $0.9m outstanding invoices and $0.7m PaidRight customer invoices. 

WRK has seen further acceleration in large scale-execution and de-risking. The next quarter is catalyst rich, with transaction revenue expected to scale, balancing investments.

Mach7 Technologies Ltd (ASX: M7T)

This ASX small-cap is a medical imaging systems provider that develops innovative image management and viewing solutions for healthcare organisations.

Last week, it released Q3 FY26 results.

This prompted an unchanged buy recommendation from Morgans, with an updated price target of 44 cents per share. 

The broker noted a lower operating cost base sets the company up well for better operating leverage from FY27.

From yesterday’s closing price of 27.5 cents, this indicates an upside potential of approximately 60%. 

The post 3 ASX small-cap stocks every investor should be monitoring appeared first on The Motley Fool Australia.

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• After a 22% crash, this ASX 200 stock could be set to rise 74% according to Bell Potter
• Still down 40% over the past year, how high could WiseTech shares recover?
• Morgans just slapped a buy rating on this small-cap ASX share
• Where is opportunity in the ASX real estate sector? Expert

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 Mach7 Technologies. 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.

Fortunately for income investors, there are plenty of ASX dividend shares to choose from on the local market.

Three that could be top buys according to analysts are listed below. Here’s what they are recommending to clients and the sort of yields you could expect:

IPH Ltd (ASX: IPH)

The first ASX dividend share that could be a buy according to analysts is IPH.

It is an international intellectual property services group with a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

Morgans is bullish on the company and has a buy rating and $5.39 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.59, this would mean generous dividend yields of 10.6% and 10.9%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a buy is Rural Funds Group.

It is an agricultural real estate investment trust (REIT) that owns farmland and agricultural infrastructure. Its assets include almond orchards, cattle properties, vineyards, and macadamia farms across Australia.

Bell Potter is a fan of the company and has put a buy rating and $2.50 price target on its shares.

Rural Funds has a long history of paying steady distributions to investors and Bell Potter expects this trend to continue. It is forecasting dividends per share of 11.7 cents in FY 2026 and FY 2027. Based on its current share price of $2.04, this would mean dividend yields of 5.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share to consider buying for its generous yield is Universal Store.

Universal Store is a youth fashion retailer operating across multiple brands. Despite the challenging retail backdrop in recent years, it has continued to generate strong sales and earnings.

The team at Morgans is also positive on this one and sees it as a top pick in the small-cap space.

As a result, it has put a buy rating and $10.60 price target on the company’s shares.

With respect to payouts, Morgans is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.34, this would mean dividend yields of 5.6% and 6.25%, respectively.

The post 3 ASX dividend shares to buy with 5%+ yields appeared first on The Motley Fool Australia.

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• Down 40%: These high-yield ASX dividend shares are rated as buys
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• Get paid huge amounts of cash to own these ASX dividend shares!
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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Rural Funds Group. The Motley Fool Australia has recommended IPH Ltd and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is one of the most popular ASX-listed exchange-traded funds (ETFs), giving investors exposure to Australia’s blue-chips along with the solid dividend yield. But, it’s not the first ASX ETF I’d pick for passive income.

There are plenty of quality businesses inside the S&P/ASX 300 Index (ASX: XKO), but the biggest positions are mostly ASX mining shares and ASX bank shares. Those businesses are known for their good dividend yields, but not necessarily for delivering strong compounding earnings growth.

For multiple reasons, I’d choose WCM Quality Global Growth Fund (ASX: WCMQ), a fund that invests in international shares. Let’s get into why I think it’s a more appealing option than the VAS ETF.

Better distribution yield

On the passive income side, the WCMQ ETF actually offers a higher level of dividends.

The WCMQ ETF targets a distribution yield of at least 5% each year, which I’d describe as a solid starting point, with growth potential from there.  

The VAS ETF currently has a distribution yield of 3.3%. The VAS ETF yield is still less than 5%, even when franking credits are included.

Due to the strength of the long-term returns of the WCMQ ETF, I’m expecting its distribution to grow at a faster pace than the VAS ETF.

Stronger net returns

As investors, the main thing we want from an investment is returns. The WCMQ ETF has delivered great returns thanks to its investment style of hunting for businesses with expanding economic moats (strengthening competitive advantages).

When a business is pulling further ahead of the competition, it means their ability to generate stronger profits for the foreseeable future has improved. That usually translates into a business being able to achieve stronger profit margins.

Another core element of the WCM investment strategy is that these businesses need to have a corporate culture that is supportive of improving their competitive advantages further.

The WCMQ ETF has returned an average of around 12% per year over the last five years to March 2026, while the VAS ETF has returned an average of 8.5% in the past five years. Past performance is not a guarantee of future returns of course, but I think the ASX ETF’s investment strategy can help it continue to outperform.

Since inception in August 2018, the WCMQ ETF has returned an average of 14%. That’s high enough to pay a good distribution yield and deliver solid capital growth.

Global diversification

The final advantage I’ll highlight that the ASX ETF can provide is a portfolio of global shares, while the VAS ETF only provides exposure to ASX shares.

The WCMQ ETF sources ideas from across the world, with stocks coming from the Americas, Europe and Asia.

I also like that the fund provides exposure to a variety of sectors, which helps reduce the risks and gives it more find good opportunities – it’s not just a tech fund. Its biggest four industry allocations are currently IT, industrials, healthcare and financials.

The post I’d buy this high-yield ASX ETF over the Vanguard Australian Shares Index ETF (VAS) appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.25% to 8,766.4 points.

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

ASX 200 set to fall

The Australian share market looks set to fall on Tuesday following a mixed start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 55 points or 0.6% lower. On Wall Street, the Dow Jones was down 0.1%, but the S&P 500 rose 0.1% and the Nasdaq pushed 0.2% higher.

Oil prices charge higher

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.35% to US$96.65 a barrel and the Brent crude oil price is up 2.75% to US$108.23 a barrel. This was driven by the unravelling of US-Iran peace talks.

Buy Iperionx shares

Bell Potter thinks investors should be buying Iperionx Ltd (ASX: IPX) shares if they have a high tolerance for risk. This morning, the broker has retained its speculative buy rating on the titanium production technology company’s shares with an $8.25 price target. It said: “IPX has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste. The company will incrementally expand capacity and progress commercial relationships with aerospace, automotive, luxury goods and government end users.”

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a poor session on Tuesday after the gold price pulled back overnight. According to CNBC, the gold futures price is down 0.95% to US$4,695.7 an ounce. This was driven by inflation and rate hike concerns due to high oil prices.

Buy Judo shares

Morgans thinks that Judo Capital Holdings Ltd (ASX: JDO) shares could be a great option in the banking sector right now. This morning, the broker has upgraded Judo Capital’s shares to a buy rating and is predicting a return of almost 50%. It said: “JDO provided a 3Q26 trading update, which included reaffirming its FY26 earnings guidance range albeit now expected to be at the bottom end of the range given it conservatively topped up its expected loan loss provision. We view JDO’s recent share price weakness as a buying opportunity for a stock with high growth potential, increasing the margin of safety for the investment. Upgrade from ACCUMULATE to BUY. Potential TSR at current prices is c.49%.”

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

More reading

• 2 ASX 200 shares Macquarie thinks will return nearly 30%
• 3 ASX shares upgraded by Morgans to buy ratings
• Here are the top 10 ASX 200 shares today
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• Why Cochlear, Karoon Energy, Origin Energy, and WiseTech 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 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.

There is a different kind of pressure that arrives in your mid-50s.

At 45, retirement can still feel distant. At 50, it starts becoming real. But by 55, the question becomes far more personal.

Have I done enough?

It is not just a question of whether you can retire. It is whether you can retire comfortably, with enough financial breathing room to enjoy the next chapter without constantly worrying about money.

So, could the average Australian 55-year-old comfortably retire in 2026?

The answer is probably not yet. However, that does not mean the opportunity has passed.

What does the average 55-year-old have in super?

According to figures cited by the Association of Superannuation Funds of Australia (ASFA), the average superannuation balance for men aged 55 to 59 is $319,743. For women in the same age bracket, the average is $242,945.

That puts many Australians in their mid-to-late 50s somewhere around the high-$200,000s to low-$300,000s.

That is a meaningful pool of retirement savings.

It is also a long way short of what ASFA estimates is needed for a comfortable retirement. ASFA’s comfortable retirement standard assumes a good standard of living, including private health insurance, regular leisure activities, occasional meals out, a reasonable car, some domestic travel, and the ability to handle home repairs.

To fund that lifestyle, ASFA estimates a single person needs around $54,840 per year, while a couple needs roughly $77,375 per year. The suggested lump sum is about $630,000 for singles and $730,000 for couples, assuming home ownership and some Age Pension support later in retirement.

On those numbers, the average 55-year-old is not yet sitting in obvious “comfortable retirement” territory.

The gap is real, but the window is still open

For a single person with around $280,000 to $320,000 in super, the gap to the comfortable retirement benchmark could still be several hundred thousand dollars.

That sounds confronting.

But age 55 is not age 65.

For many Australians, there may still be a decade of work, contributions, investment returns, and planning ahead. That decade can make a major difference.

This is where the conversation should shift.

The question is not only: “Can I retire now?”

The better question may be: “What could my retirement look like if I invested well, contributed consistently, and used the next 10 years properly?”

That is a much more optimistic frame.

A 55-year-old with a solid balance, continued employer super contributions, possible salary sacrifice contributions, and a sensibly invested portfolio still has time to improve the outcome.

Retiring at 55 has another problem

There is also a practical issue.

At 55, most Australians cannot simply start living off their super. Age 60 is generally the key preservation age for many Australians who have stopped working, while unrestricted access generally begins at 65. Age Pension eligibility starts at 67, subject to the relevant tests.

That means retiring at 55 usually requires other assets, cash, investments, or income to bridge the gap before super becomes accessible.

And that bridge matters.

A person retiring at 55 is not just retiring early. They are asking their money to last longer, while potentially giving up some of the highest-earning and highest-contributing years of their working life.

That is a big trade-off.

Your late 50s could be your strongest retirement-building decade

This is the part that can be missed.

Your late 50s can be one of the most powerful periods for building retirement wealth.

Income may still be strong. The mortgage may be smaller than it once was. Children may be more independent. And the super balance itself is finally large enough that investment returns can start to matter in bigger dollar terms.

For example, a 7% return on a $300,000 super balance is $21,000 before new contributions are added.

That does not mean markets will deliver smooth returns every year. They will not. But it does show why investment allocation still matters.

Becoming too conservative too early can be costly. At 55, many people may still have 10 years before retirement and potentially 30 or more years of retirement ahead of them. That is a long investment horizon.

Foolish Takeaway

The average superannuation balance of a 55-year-old in 2026 is probably not enough to retire comfortably today.

For many Australians, 55 is not the end of the journey. It is the beginning of the most important stretch.

The next decade may be about investing well, contributing where possible, managing risk sensibly, and preparing for a smoother transition into retirement.

Retiring comfortably is not just about hitting one number. It is about building enough flexibility to handle markets, inflation, healthcare costs, lifestyle choices, and the unexpected.

At 55, the runway is shorter than it used to be.

But for those who use it well, it may still be long enough to make a very meaningful difference.

The post Is the average superannuation balance of a 55-year-old enough to retire well in 2026? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why I think these high-quality ASX shares deserve a spot in most investment portfolios
• Are Telstra shares a good deal at $5.32?
• Which beaten down ASX healthcare stock is a better buy right now: Pro Medicus vs Cochlear shares
• 3 ASX growth shares I’d buy with $7,000

Motley Fool contributor Leigh Gant 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.

When I think about building a portfolio that can grow over time, I look for businesses with clear direction, strong positioning, and the ability to keep expanding their opportunity set.

These are companies that continue to build on what they already do well, while opening up new avenues for growth along the way.

Here are three ASX shares I think fit that description.

Hub24 Ltd (ASX: HUB)

Hub24 is a business that sits in the background of the investment industry, but its role continues to grow.

It provides the infrastructure that advisers use to manage client portfolios, and as more wealth flows onto platforms, its relevance increases.

What I find compelling is how the business builds depth over time. Each new adviser relationship brings a pipeline of clients and assets, and those assets often grow as markets rise and contributions continue. That creates a layering effect where growth compounds on top of itself.

Hub24 is also expanding what its platform can do, which allows it to capture more value from each relationship. Over time, that combination of scale and functionality can drive meaningful growth.

Breville Group Ltd (ASX: BRG)

Breville takes a different path. It operates in consumer products, but its strength lies in how it approaches brand and innovation.

The company focuses on premium kitchen appliances, with a reputation for design and quality that resonates across global markets. What stands out is how it continues to build its presence internationally.

Growth comes from entering new regions, expanding product categories, and strengthening its brand positioning. That creates multiple pathways for the business to keep moving forward.

For me, Breville is a reminder that consumer businesses can scale globally when they combine strong branding with consistent product development.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare brings a structural growth story. Following its merger with Chemist Warehouse, the business now dominates distribution and retail, which creates a more connected position within the healthcare supply chain.

What I find interesting is how that structure can evolve. With greater visibility across both sides of the business, there is potential to improve efficiency, optimise inventory, and strengthen relationships with suppliers and customers.

For me, Sigma represents a business that is reshaping its role within the industry, with the potential to build a stronger and more integrated model.

Foolish takeaway

I think these are the kinds of businesses that can earn their place in a portfolio over time.

They continue to expand their reach, deepen their advantages, and build on what already works.

That is what gives me confidence in their long-term potential.

The post Why I think these high-quality ASX shares deserve a spot in most investment portfolios appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. 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.

Telstra Group Ltd (ASX: TLS) shares have enjoyed an uncommonly lucrative few months.

At the time of writing, this ASX 200 blue chip telco stock is going for $5.32 a share. That puts the company up a happy 9.34% above the $4.87 it started 2026 at. Telstra is also 28.86% higher than the $4.48 it was trading at this time last year.

It gets even better for shareholders, though. Back in late April of 2024, Telstra was trading at just under $3.60 a share. An investor who bought around those prices would be looking at a near-50% gain at today’s levels. All in all, not bad for a boring old telco.

Here’s where the fly in the ointment might lie.

Telstra is a financially strong and sound company. But it is not growing at the levels its share price trajectory might suggest.

Telstra shares at $5.32?

Back in February, Telstra’s half-year earnings revealed an average earnings growth rate of 7% between the first half of FY2021 and the first half of FY2026. That’s fine for a mature blue chip like Telstra. But Telstra’s shares have been growing at a much faster rate in recent years. That means Telstra shares are getting more expensive on an earnings-multiple basis. Its dividend yield is shrinking as a result.

Even a year or two ago, it wasn’t uncommon to see Telstra shares trading on a dividend yield of 4.5% or even higher. Today, it’s languishing at 3.76%.

That’s objectively a decent dividend yield. But it is low by Telstra’s historical standards. It’s also not too competitive in today’s high-interest-rate world. After all, you can get a 12-month term deposit with a 5.4% interest rate right now.

That’s not Telstra’s fault, of course. It has been increasing its raw dividends per share at a healthy rate in recent years. To illustrate, 2026’s interim dividend of 10.5 cents per share was a 10.5% increase over the same dividend from 2025.

It’s just that Telstra shares have been increasing in value even faster.

Foolish takeaway

Looking at where Telstra shares are today, and the dividend yield they are trading on, I have to conclude that this company is not really offering much value at the moment. Telstra is a strong company, with formidable assets, a powerful brand and irreplaceable infrastructure.

However,  as Charlie Munger used to say, ‘no company, however wonderful, is worth an infinite price’. If you, as an income investor, are happy with a starting yield of 3.76%, then there are certainly worse options out there. But I won’t be buying Telstra at the prices we are seeing right now.

The post Are Telstra shares a good deal at $5.32? appeared first on The Motley Fool Australia.

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• 2 great ASX 200 blue-chip shares I’d buy right now
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• 3 reasons I’d buy Telstra shares today
• Where I’d invest $5,000 in ASX blue-chip shares

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