Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Thursday. In afternoon trade, the benchmark index is up 0.6% to 8,835.2 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Cogstate Ltd (ASX: CGS)

The Cogstate share price is up 7% to $2.35. Investors have been buying this neuroscience technology company’s shares following the release of preliminary results for the first half of FY 2026. Cogstate reported a 12% increase in total revenue to $26.9 million, which is ahead of its guidance range of $25 million to $26 million. Cogstate’s CEO, Brad O’Connor, said: “Cogstate’s momentum continues to grow. We continue to see a record level of new sales opportunities from an expanded customer base across more indications, and those opportunities have translated into an increased value of sales contracts executed in the December half year.”

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 7% to $4.63. This may have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has retained its buy rating on the counter-drone technology company’s shares with an improved price target of $5.00. Bell Potter said: “We believe the key catalyst for DRO in CY26 is the potential awards stemming from the US Public Safety market, notably from the US$250m funds allocated to states hosting the FIFA World Cup and the America 250 events for C-UAS protection. We would be disappointed if DRO did not receive material awards from these events.”

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is up 8.5% to $13.85. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has upgraded this retailer’s shares to an outperform rating with a $16.20 price target. This implies potential upside of 17% even after today’s gain. Macquarie believes the Peter Alexander and Smiggle owner’s shares are undervalued after significant weakness.

South32 Ltd (ASX: S32)

The South32 share price is up 4% to $4.36. This follows the release of the mining giant’s first half update this morning. South32 reported a 3% increase in alumina production, a 2% lift in aluminium production, and a 58% jump in manganese production. South32’s CEO, Graham Kerr, said: “We continued to deliver consistent operating results, with FY26 production guidance maintained across our operated assets and first half operating unit costs tracking in line with guidance.”

The post Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher appeared first on The Motley Fool Australia.

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• South32 shares hit a 12-month high after a solid first-half performance
• Is the DroneShield share price heading to $5.00?
• South32 grows output and returns cash: December 2025 quarterly earnings update
• 5 things to watch on the ASX 200 on Thursday
• Why 4DMedical and these ASX shares are up 200%+ in just a year

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

As we’ve been covering this week, gold, and by extension gold exchange-traded funds (ETFs), are currently in the middle of one of the most dramatic bull runs in the history of precious metal investing. Two years ago, the yellow metal was going for around US$2,000 an ounce. One year ago, that same ounce was worth just under US$2,800. Today, it will cost an investor about US$4,800 after hitting another new record high of US$4,887 in the past 24 hours. That’s a 12-month gain worth a whopping 71% or so.

Many of the factors that have pushed gold higher over the past few years arguably remain in place today. Economic uncertainty remains a constant in the global economy, exemplified this week by the storm of tariff threats and trade sanctions being thrown around in response to US President Donald Trump’s aspiration to acquire Greenland. Government debt across major economies of the world continues to climb. Central banks continue to snap up gold at record rates. And geopolitical tensions remain high across several global hotspots.

As such, many ASX investors may wish to add gold (or more gold) to their portfolios in 2026, despite the record-high prices. Of course, physical gold bullion in bar or coin form will continue to be the preference of many investors seeking to buy gold. However, many others might prefer the ease of investing in gold ETFs over holding physical metal.

There are many gold ETFs on the ASX that these investors can choose from. So, which is the best? Let’s look at some options.

Which ASX gold ETF is the best to buy in 2026?

For starters, there’s Perth Mint Gold (ASX: PMGOLD). This ETF is managed by the Perth Mint. Its units represent ownership of physical metal held in the Perth Mint vault, and are subject to a government guarantee from Western Australia. They can even be converted to gold bullion if investors wish. As with all of the ETFs we’ll discuss today, this tie to gold means that PMGOLD units should rise and fall in value alongside the price of gold itself.

Perth Mint Gold charges a management fee of 0.15% per annum.

There’s also the Global X Physical Gold ETF (ASX: GOLD) to consider. This gold ETF works similarly to Perth Mint Gold, with each unit representing entitlement to a physical store of precious metal. In this case, that bullion is held in a vault in London. The Global X Physical Gold ETF charges a fee of 0.4% per annum.

Another gold ETF in this vein is the VanEck Gold Bullion ETF (ASX: NUGG). NUGG units are tied to physical gold held in an Australian vault. Like PMGOLD, the units can be exchanged for bullion at investors’ convenience. This ETF asks an annual management fee of 0.25%.

To hedge or not to hedge?

All of the funds we’ve discussed offer gold exposure to Australian investors in US dollar terms. The units are unhedged to Australian dollars, meaning that fluctuations in our exchange rate can influence the pricing of these ETFs, even if the underlying price of gold in US dollars doesn’t change.

However, the BetaShares Gold Bullion Currency Hedged ETF (ASX: QAU) is different. It still holds bullion in a London vault, and its units are tied to the value of that bullion. But this ETF also uses currency hedging to mitigate any movements in the Australian dollar, effectively offering a pure exposure to gold in US dollar terms.

This doesn’t come free, though, and QAU charges a management fee of 0.59% per annum for its services.

It’s a similar story with the Global X Gold Bullion (Currency Hedged) ETF (ASX: GHLD). This ETF works almost identically to GOLD, but also adds a hedging mechanism. It asks 0.35% per annum in management fees.

Foolish Takeaway

As you can see, there are many gold ETFs on the ASX for precious metal enthusiasts to choose from. Which is the best choice comes down to individual preference. If you like the idea of an Australian holding, PMGOLD or NUGG might be your preferred option. PMGOLD also offers the lowest fees on this list, and has significantly more assets under management than NUGG.

If you wish to employ currency hedging, then QAU or GHLD are your only choices. Given the differences in fees there, I would personally be more inclined to give GHLD a look.

The post With gold up 71%, which is the best ASX gold ETF to buy? appeared first on The Motley Fool Australia.

More reading

• Want to buy gold in 2026? Here are 3 ways to do it

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 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.

Starting in the share market with a small amount of money can feel intimidating. It is easy to think that $3,000 in ASX shares is not enough to make a meaningful difference. I disagree.

What matters far more than the starting balance is building good habits early, choosing sensible investments, and giving yourself exposure to long-term growth. 

If I were starting from scratch today with $3,000 to invest on the ASX, this is how I would approach it.

Get instant diversification

The first thing I would do is avoid putting all my money into a single company. One bad result, regulatory change, or industry downturn can derail a concentrated portfolio very quickly.

To solve that problem, I would start with an exchange-traded fund (ETF).

I would invest $1,500 into the Vanguard Australian Shares Index ETF (ASX: VAS).

The VAS ETF gives exposure to the largest companies listed on the ASX, including banks, miners, technology stocks, healthcare leaders, and consumer staples. It is low-cost, diversified, and pays regular dividends. More importantly, it allows a new investor to participate in the long-term growth of Australian businesses without needing to pick individual winners straight away.

If I were just starting, having this kind of stable core would help me stay invested through market ups and downs.

Add growth potential

With diversification in place, I would use the remaining capital to introduce some growth.

I would invest $1,000 into Zip Co Ltd (ASX: ZIP).

Zip is not a low-risk stock, and I would be very clear about that from the outset. However, I think it offers something valuable in a small starter portfolio: exposure to a company with meaningful upside if execution continues to improve.

The business has been simplifying its operations, focusing on profitability, and tightening its cost base. If earnings growth materialises over the next few years, Zip could deliver returns that are difficult to achieve through index investing alone.

I would keep the position size modest and accept volatility as part of the journey.

Balance with quality income

Finally, I would allocate the remaining $500 to a high-quality, defensive business that pays reliable dividends.

One stock I would seriously consider is Telstra Group Ltd (ASX: TLS).

Telstra is not a fast-growing company, but it generates steady cash flows and plays an essential role in Australia’s communications infrastructure. For a new investor, owning a business like Telstra can help smooth returns and provide income that can be reinvested over time.

That dividend income might seem small initially, but reinvesting it consistently is one of the most powerful habits an investor can develop early.

Why this approach works for beginners

This $3,000 portfolio would not be exciting every week, and that is a good thing.

It combines broad market exposure through the VAS ETF, growth potential through Zip, and stability and income through Telstra.

More importantly, it creates a foundation that can be built on. As additional savings are added over time, I would likely keep topping up the ETF, selectively increase exposure to high-quality shares and funds, and remain patient.

The post How I would invest $3,000 in ASX shares if I were starting today appeared first on The Motley Fool Australia.

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• How I’d invest monthly savings to generate over $50,000 passive income
• Passive income: How to earn safe dividends with just $20,000
• How many Telstra shares do I need to buy for $1,000 of annual passive income?
• Forget Telstra shares, I’d buy this ASX telco stock instead

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. 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.

Woolworths Group Ltd (ASX: WOW) shares are currently trading around $31, a level that sits well above the company’s multi-year low reached in 2025, but still meaningfully below where the market valued the business at its peak.

That positioning makes the investment question more nuanced than it might first appear. Woolworths is widely regarded as one of the highest-quality defensive businesses on the ASX, but a great company does not automatically equal a slam-dunk investment at any price.

So, at $31, do the shares still offer compelling value?

Why Woolworths shares fell in the first place

Woolworths’ share price weakness over the past year was driven by an unusually poor operating period. Cost pressures intensified across wages, energy, and logistics, while competition in food retail remained fierce. At the same time, consumers became increasingly price sensitive, forcing heavier discounting that compressed margins.

Execution issues also emerged, particularly within its supply chain and e-commerce operations. While none of these challenges were existential, they were enough to disrupt earnings momentum in a business that investors had come to view as extremely stable.

The result was a sharp reset in expectations and a meaningful share price decline.

What has improved since then

Since hitting its low, Woolworths has shown signs of stabilisation. Sales momentum has improved, cost pressures are easing, and management has refocused on operational discipline.

Importantly, Woolworths still benefits from defensive characteristics that few ASX businesses can match. Demand for groceries is resilient across economic cycles, and the company’s scale provides structural advantages in sourcing, distribution, and pricing.

Consensus expectations point to a recovery in earnings over the next few years and a return to steady growth. For example, according to CommSec, earnings per share (EPS) is forecast to be $1.28 in FY26, $1.45 in FY27, and $1.66 in FY28.

Is the valuation still attractive at $31?

At around $31, Woolworths is no longer trading at distressed levels. The market has already priced in a degree of recovery from its worst period.

However, at a P/E ratio of 24 times, the shares also do not look to be trading on a stretched valuation. Particularly given the outlook for double-digit EPS growth through to FY28.

Additionally, for income-focused investors, the dividend outlook remains supportive. Consensus estimates point to fully-franked dividends per share of 99.5 cents in FY26, $1.13 in FY27, and $1.35 in FY28.

This represents forward dividend yields of 3.2%, 3.65%, and then 4.35%.

So, is it a slam-dunk buy?

I think the answer is increasingly yes.

While Woolworths shares are no longer priced at bargain-basement levels, the investment case today looks far stronger than it did a year ago. Earnings are recovering, cost pressures are easing, and management has refocused on operational execution. Importantly, this recovery is occurring within a business that already enjoys highly defensive demand, scale advantages, and strong cash generation.

At a forward P/E of around 24 times, Woolworths does not look cheap in absolute terms. But when that valuation is weighed against its defensive qualities, the outlook for steady double-digit earnings growth through to FY28, and a rising stream of fully-franked dividends, it begins to look reasonable for a business of this quality.

The post At $31, are Woolworths shares still a slam-dunk buy? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares this fund manager says are buys for 2026
• How to turn ASX dividends into long-term wealth
• Here are the 3 ASX ETFs I use for my super fund
• Are Woolworths shares a blue-chip buy?
• How to build an ASX share portfolio for income and growth

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

Any investor looking for a monthly payout should seriously consider investing in the BetaShares Dividend Harvester Active ETF (ASX: HVST) for passive income.

I’ve written before about how the Metrics Master Income Trust (ASX: MXT) is a strong monthly-paying stock. And even the Plato Income Maximiser Ltd (ASX: PL8) and its regular payments are an ASX investor’s dream. But I think HVST is a better buy for passive income. Here’s why.

Why HVST shares are a great option for passive income

HVST is an ASX-listed exchange-traded fund (ETF) that gives its investors exposure to a portfolio of 40 to 60 dividend-paying shares. The fund is constructed in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next passive income-generating shares.

Its portfolio is rebalanced roughly every three months. And it targets shares that are expected to pay dividends within the next rebalance period. To improve its diversification, HVST also has exposure to the broader sharemarket exposures through an ETF. The process is referred to as ‘dividend harvesting’.

The fund’s share portfolio is typically drawn from the 100 largest ASX-listed companies and selected based on forecasts of high dividends and franking credits, based on their expected future gross dividend payments.

HVST’s portfolio allocation is weighted towards the financial sector (24.2%), with materials accounting for another 10.7%.

The fund’s top 10 holdings include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and CSL Ltd (ASX: CSL).

How much passive income does HVST pay to its investors?

HVST provides a regular, franked dividend income that is around double the annual income yield of the broader ASX. As of the 31st of December, its 12-month gross distribution (dividend) yield is 7.4%, and the net yield is 5.8%. The franking level is 66%. The fund’s annual management fee and costs are 0.72%.

HVST has a long history of paying consistent monthly dividends to its investors. The fund paid out $0.060929 per share to investors earlier this week. Prior to this, it paid $0.0652 per share per month from August to December, up from $0.0648 paid out throughout the first half of 2025. This equates to an annual running total of $0.775729 per share fully franked.

At the time of writing on Thursday morning, HVST shares are up 0.75% to $13.51 a piece. For the year to date, the shares have climbed 0.15%.

The post Passive income investors: This ASX stock has a 7.4% dividend yield with monthly payouts appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pantoro Gold Ltd (ASX: PNR) share price is under pressure today after the company released its December 2025 quarterly report.

The Pantoro share price is down 10% to $5.22 in early afternoon trade, despite the gold producer delivering another strong operational quarter.

Zooming out, Pantoro shares are still up more than 200% over the past 12 months. That rally has been driven by a higher gold price and a sharp turnaround in operational performance.

So, what did Pantoro report?

Another strong quarter on paper

Pantoro produced 22,071 ounces of gold during the December quarter, broadly in line with recent run rates. Gold sales totalled 22,473 ounces at an average realised price of $6,077 per ounce, reflecting the strength in the local gold price.

Importantly, costs remained under control. All-in sustaining costs (AISC) came in at $2,571 per ounce, helping Pantoro generate EBITDA of $83.6 million for the quarter.

Cash generation was equally impressive. The company reported operating cash flow of $39.2 million. As a result, Pantoro’s cash and gold balance increased by $35 million to $216.5 million at 31 December.

Operations continue to improve

The Scotia underground mine produced 7,869 ounces at an average grade of 3 grams per tonne. Development is moving into higher grade northern zones, which Pantoro expects to become a key source of ore in the coming months.

At the OK underground mine, production reached 7,081 ounces at a stronger grade of 4.31 grams per tonne. Open pit mining at Princess Royal and Gladstone also continued, with first ore from Gladstone expected by the end of the March quarter.

Drilling results were encouraging, particularly at Mainfield and Crown South Reef, supporting Pantoro’s longer-term growth plans.

Why are Pantoro shares falling then?

Despite the solid numbers, Pantoro flagged that FY 2026 production is now expected to come in at the lower end of its 100,000 to 110,000 ounce guidance range.

After a huge share price run over the past year, that softer outlook may have been enough to trigger profit taking. With gold stocks having rallied hard, the market appears to be demanding continued upside surprises.

Foolish Takeaway

Pantoro’s quarterly report highlights strong cash flow, a robust balance sheet, and ongoing operational and asset base improvements.

While the share price reaction looks negative today, the underlying business remains well-positioned if gold prices stay supportive. Investors will be watching whether Pantoro can convert its strong cash generation into consistent production growth.

The post Pantoro shares plunge 10% today. What just happened? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Ahead of reporting season, the team at Jarden has run the ruler over the aviation sector and come to the conclusion that both Qantas Airways Ltd (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VGN) are good buys at current levels.

Looking at Qantas first, the Jarden team notes that the share price has underperformed the S&P/ASX 200 Index (ASX: XJO) since reporting its FY25 result, “following concerns around the earnings outlook from weaker demand and higher oil prices”.

A win-win in “rational” sector

But the Jarden team says that according to their analysis, the Australian aviation sector “remains in the best competitive rationality setting” for the past 20 years or so.

With this in mind, we think any near-term demand weakness can have its impact on operating earnings moderated by capacity rationality (lower growth) and yield management (improved pricing). We see the 1H26 result as a key catalyst for the Qantas share price to outperform near term. As a result, we reiterate our Buy rating and maintain our 12-month $12.70 target price.

Jarden is expecting a dividend yield of 3.1% from Qantas, and if its price target is achieved, this would represent a 24.2% return for investors.

The Jarden team said Qantas had so far only modestly changed its capacity settings, reducing them by about 1%, to reflect a changing demand environment, “and focus, we think, on load factor and yield preservation”.

From here, we see the revenue available per seat kilometre outlook as potentially more driven by ticket price movements than by load factor changes. Importantly, this could also provide additional support for earnings through 2H26E, should the fuel cost environment overall prove better than feared.

The Jarden team also noted that jet fuel prices have fallen about 47% since November.

Looking into 2H26, we see scope for adjustments to fuel price expectations, which could provide near-term upward support for earnings estimates for Qantas, all else remaining equal.

Qantas is expected to report its first-half results on February 26.

The company was worth $15.87 billion at the close of trade on Wednesday.

Virgin also cheap at current levels

Jarden also has a bullish price target on shares in Virgin, with a target price of $4, compared with $3.29 currently.

Virgin is set to deliver its first interim result since being relisted on the ASX, with that to happen on February 27.

Jarden said they believed it was too early for the company to start paying dividends, but nonetheless, they expected a solid result.

We see the fundamentals as remaining strong for Virgin Australia in the near term and maintain our Overweight rating and lift our 12-month target price from $3.90 to $4.00 following changes in the Virgin share price impacting its capital structure.

The post Which airline could deliver almost 25% returns? See what the analysts say appeared first on The Motley Fool Australia.

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• $10,000 invested in Qantas shares two years ago is now worth…

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

Reporting season is just around the corner, and as we head into it, the team at RBC Capital Markets has made its call on the companies among the small-cap industrials they predict will outperform.

RBC actually has an outperform rating on 15 companies in this sector; however, today we’ll focus on their two top picks, Life 360 Inc (ASX: 360) and Temple & Webster Group Ltd (ASX: TPW).

Shares out of favour

Life 360 shares have been on a steep slide since early October, when they traded for more than $55, compared with just $26.03 currently.

This was despite a third-quarter result in which RBC said they “beat expectations for all financial metrics”, with revenue coming in 3.8% above consensus, gross profit 2.3% above consensus, and EBITDA 30.5% above consensus.

RBC said there were areas of weakness, though.

The result disappointed expectations for monthly active user net adds (-39.5% vs consensus) and Paying Circle net adds (-6.9%). Management attributed the softer operational performance to: i) a marketing pivot to customers with a higher propensity to convert to paid and ii) a potential pull-forward of demand following a successful 2Q25 ad campaign.

RBC said monthly active user numbers will be a key focus for the fourth-quarter results, as will the performance of Nativo, which Life 360 recently acquired, and the new pet tracking device division.

RBC has a price target of $49 on Life 360 shares, which would be an 87.9% uplift from current levels.

Life 360 is scheduled to release its full-year results to the market on March 3.

Worst is over for this furniture retailer?

On to Temple & Webster, and RBC noted the company’s November trading update, which showed total sales growth of 18% – a “considerable deceleration” from the August update – and which led to a sharp sell-off in Temple & Webster shares.

RBC said:

Despite the weaker than expected update management commentary noted the business was ‘on track’ to meet its $1 billion medium term (FY26-FY28) sales target and reiterated guidance for FY26 EBITDA margins in the range of 3% – 5%.

RBC said investor expectations were “rebased” after the November update, and there were some positive signs from the sector generally.

Industry feedback and data points since then have suggested online retailers have outperformed during the key Black Friday/Cyber Monday and pre-Christmas selling periods, we believe Temple & Webster could be a beneficiary of this dynamic.

RBC has a $19 price target on Temple & Webster shares, representing a 47.3% gain if achieved.

The post Looking for double-digit returns? Check out RBC Capital Markets’ picks ahead of reporting season appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) mining stock Chalice Mining Ltd (ASX: CHN) has been on a tear this past year.

At the time of writing on Thursday, shares are down 3.4% in intraday trade, changing hands for $2.54 apiece.

Despite that retrace, Chalice Mining shares remain up a whopping 108.2% over 12 months, smashing the 5.5% one-year returns delivered by the ASX 300.

And with its flagship critical minerals project nearing potential production, Chalice Mining shares could keep outpacing the benchmark in the year ahead.

ASX 300 mining stock tipped for more gains

UBS analyst Levi Spry sees more upside potential for Chalice Mining, increasing the stock from a neutral to a buy rating (courtesy of The Bull).

Part of that bullish outlook stems from the ASX 300 mining stock’s Gonneville Platinum Group Metal-Nickel-Copper Project, located in Western Australia. The project was discovered by Chalice’s geologists in early 2020.

Chalice Mining notes:

In December 2025, the Pre-Feasibility was completed determining the optimal development pathway for the Project. A long life and globally critical minerals mine in Western Australia, set to generate A$4.7bn in free cashflow pre-tax, with a rapid payback of ~2.7 years.

Amid growing confidence that the project will advance to production, UBS increased its price target on Chalice Mining to $2.75 a share. That represents a potential upside of just over 8% from current levels.

What’s been happening with Chalice Mining?

Chalice Mining shares closed up 22.9% on 17 February last year after the ASX 300 mining stock reported a “major metallurgical breakthrough” at Gonneville.

The company said the breakthrough means the project will not require a hydrometallurgical process for the nickel concentrate, noting this “substantially reduces” technical risk, process complexity, and capital and operating costs.

Commenting on the advancement on the day, Chalice Mining CEO Alex Dorsch said:

The ability to produce a saleable nickel concentrate across the grade spectrum of the entire Gonneville Resource is a major breakthrough and fundamentally simplifies the world-class Gonneville Project. This is the step change we have been hoping for over the last two years.

Dorsch added:

Removing the need for a hydrometallurgical process materially reduces both the capital and operating costs and, together with the optimisations being introduced to the flowsheet, is expected to deliver a significant improvement in project margins across all high-grade and low-grade phases of a bulk open-pit mine plan. The simplified flowsheet also has much lower risk profile and gives the Project a smoother and more rapid pathway to development.

On 20 October, Chalice Mining affirmed that it has targeted the Final Investment Decision (FID) for its Gonneville Project in late calendar year 2027.

The post Up 108% in a year, why this buy-rated ASX 300 mining stock is tipped for more outperformance appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares to buy in the market’s best-performing sector of 2025
• This ASX mining stock is up 120% in a year. Can the rally continue?
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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.

Many Aussie investors would benefit by having some ASX-listed exchange-traded funds (ETFs) in a portfolio, in my view. The most popular ones can provide investors with excellent diversification.

But, it’s possible for some portfolios to provide almost too much diversification, meaning the returns may not be as good as they could be if investors just owned the better businesses.

I like the idea of investing in some of the best portfolios because of the potential for stronger returns, which is why I like the following ideas for five-year (or longer) investments.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The global share market is home to a large array of wonderful businesses. The QLTY ETF aims to just pick out the best of them by owning 150 high-quality international stocks.

It identifies which businesses to own with a number of screens. That includes return on equity (ROE), debt to capital, cash flow generation ability, and earnings stability.

The ROE criteria mean the businesses earn a higher level of profit compared to the amount of shareholder money retained. Generating strong cash flow is very attractive because we want to see earnings flow through the bank account. Earnings stability suggests profit doesn’t usually go backwards, and the profit regularly rises. Low debt to capital ensures the businesses are healthy and not funding growth with a lot of debt.

This selection process has led to the businesses coming from a variety of countries and sectors. There are five industries with a double-digit weighting: IT (31% of the portfolio), industrials (16.6%), healthcare (16.3%), financials (10.6%), and consumer discretionary (10.4%).

Impressively, in the last three years, it has returned an average of 20.7%. But, past performance is not a guarantee of future performance.

Global X S&P World ex Australia GARP ETF (ASX: GARP)

The GARP investment strategy means ‘growth at a reasonable price’, which I think is one of the best ways to invest. Earnings growth is key for sending share prices higher. Buying at a good valuation is useful for identifying businesses that could outperform the market.

There are multiple elements that go into choosing the stocks for this portfolio.

It looks for growth, with 3-year sales per share and earnings per share (EPS) growth figures. The fund identifies 500 stocks eligible for inclusion.

Next, it looks at the value and quality of the best 250 stocks. Value is decided by looking at their earnings compared to the share price, which is essentially the price-earnings (P/E) ratio.

Quality is assessed by looking at the financial leverage (meaning debt levels) and the ROE ratios of the businesses.

By combining those aspects, you’re left with a high-quality, high-growth portfolio.

Excitingly, the index this fund tracks has delivered an average annual return of 19.7% over the past five years. That shows how well it can perform, in my view, though it’s not guaranteed to repeat itself.

The post 2 ASX ETFs I’d buy aiming for big returns for the next 5 years appeared first on The Motley Fool Australia.

More reading

• The best ASX ETFs for long-term investors
• 5 strong ASX ETFs to buy in your 30s
• Own MNRS or ARMR ETFs? Here’s why it’s a big day for you
• Own DTEC or SEMI ETFs? Here’s why it’s a big day for you
• Invest in the best stocks in the world with these ASX ETFs

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.