Tag: Stock pick

Boss Energy Ltd (ASX: BOE) shares aren’t joining in the broader market rally today.

Shares in the S&P/ASX 300 Index (ASX: XKO) uranium miner closed yesterday trading for $1.555. In afternoon trade on Tuesday, shares are swapping hands for $1.532 apiece, down 1.5%.

For some context, the ASX 300 is up 1% at this same time.

Today’s underperformance won’t be welcomed by faithful stockholders. But with Boss Energy holding the ignominious title of most shorted stock on the ASX this week, with a whopping short interest of 19.7%, not everyone will be lamenting today’s losses.

With today’s intraday fall factored in, Boss Energy shares are down 67.2% since market close on 30 June. And with its market cap crumbling, the Aussie uranium miner was dropped from the ASX 200 in the S&P Dow Jones Indices quarterly rebalance, effective 22 December.

Despite those sharp falls, the analysts at Goldman Sachs believe the ASX uranium stock still looks overvalued.

Goldman Sachs issues sell rating on Boss Energy shares

Goldman Sachs recently initiated coverage on Boss Energy with a sell rating (courtesy of The Bull).

The broker remains concerned about the outlook for “resource recovery, production rates, and cost structures” at Boss’ flagship Honeymoon uranium project, located in South Australia.

With these uncertainties in mind, Goldman Sachs has a $1.20 price target on Boss Energy shares. That’s almost 22% below current levels.

What’s been happening with the Honeymoon uranium project?

The latter half of 2025 saw Boss Energy come under heavy selling pressure amid growing investor concerns related to a shrinking uranium production outlook and rising costs at Honeymoon.

On 28 July, Boss Energy shares closed down a painful 44% after the miner downgraded its full-year FY 2026 uranium production guidance to 1.6 million pounds per year. That was down from the prior FY 2026 guidance goal of 2.45 million pounds of uranium.

And citing cost pressures “primarily due to an expected decline in average tenor and an optimised lixiviant chemistry”, management forecast FY 2026 an all-in sustaining cost (AISC) between $64 to $70 per pound, topping market expectations.

Following an extensive review of Honeymoon, Boss Energy shares plunged another 24.6% on 18 December after management reported “an expected material and significant deviation” from the assumptions underpinning Honeymoon’s 2021 Enhanced Feasibility Study (EFS).

This saw the miner officially withdraw the EFS for the project.

Pointing to a potential silver lining, Boss Energy managing director Matthew Dusci said:

Although Boss acknowledges this disappointing outcome, the Honeymoon review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design.

While additional work is necessary to finalise a new Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design.

The post Down 67% since June, why Goldman Sachs thinks Boss Energy shares are still overvalued appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Buying ASX uranium shares like Paladin Energy? Here’s why they’re starting 2026 with a bang!
• These are the 10 most shorted ASX shares
• Leading brokers name 3 ASX shares to buy today
• Up 119% since April, 3 reasons to buy this newly-minted ASX 200 uranium share today

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Zip Co Ltd (ASX: ZIP) share price has taken a sharp step backwards today after a strong run in recent months.

Shares in the buy now, pay later (BNPL) company are down 9.30% to $3.22 at the time of writing. Even after today’s pullback, the stock remains up close to 10% over the past year, highlighting how much ground it had already covered.

So, what is driving the sell-off?

Profit taking follows a strong rally

The most likely explanation for today’s sell-off is profit-taking after Zip entered overbought territory.

In recent weeks, the share price pushed sharply higher, moving well above key moving averages. Technical indicators such as the relative strength index (RSI) climbed into the low 70s, signalling stretched conditions.

When stocks move too fast, a pullback is common. That appears to be what is unfolding today rather than a reaction to any new negative news.

What the charts are saying now

From a technical perspective, Zip’s pullback has brought the share price back toward more neutral levels.

The RSI has cooled back toward the mid-range, suggesting selling pressure may begin to ease if buyers step in. Bollinger Bands also show the price retreating from the upper band, another sign that the stock was previously overextended.

Key support levels to watch sit around $3, followed by stronger support near $2.85. On the upside, resistance is now evident around $3.50 and again near $3.80, where sellers previously emerged.

The business backdrop remains solid

Importantly, nothing material has changed in Zip’s underlying business.

The company operates across Australia, New Zealand, and the United States, offering point of sale credit and digital payment solutions. Management has spent the past two years aggressively improving profitability, cutting costs, exiting weaker markets, and focusing on higher-quality earnings.

That work has paid off. Zip has delivered strong cash earnings growth, improved margins, and a healthier balance sheet. The company has also continued to execute share buybacks, signalling confidence in its financial position.

The US market remains a key growth driver, while transaction volumes and active customers have stabilised after a volatile period for the BNPL sector.

What investors should watch next

The next major catalyst will be Zip’s upcoming half-year results on 19 February, where investors will be looking for confirmation that earnings momentum is continuing into FY26.

Any update on transaction growth, bad debt trends, and US expansion will be closely watched.

Foolish Takeaway

Zip’s sharp fall today looks more like a technical pullback than a fundamental shift.

For investors with a long-term view, periods like this often come with the territory. Despite the swings, the business continues to move in the right direction.

The post Zip shares slide 10% today as investors head for the exits. Here’s why appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

If you have $5,000 to invest in exchange traded funds (ETFs) this month, then it could be worth checking out the five in this article.

Here’s why I think they could be top picks for Aussie investors in January:

Vanguard MSCI International Shares ETF (ASX: VGS)

I would start with the Vanguard MSCI International Shares ETF.

This ASX ETF gives investors exposure to over a thousand companies across developed markets.

But its real value is what it removes. It removes reliance on the Australian economy, local interest rate cycles, and domestic sector concentration. Over long periods, global diversification tends to smooth outcomes.

The Vanguard MSCI International Shares ETF is the ETF I would be happiest owning without checking regularly. It quietly captures global economic growth as it unfolds.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is another ASX ETF I would buy with the $5,000.

This ETF concentrates on US tech stock that reinvest heavily, move fast, and shape how people work, communicate, and spend.

Holding the Betashares Nasdaq 100 ETF alongside the Vanguard MSCI International Shares creates an interesting contrast. One is broad and balanced. The other is focused on technological progress.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Another ASX ETF to consider buying is the popular VanEck Morningstar Wide Moat ETF.

Instead of guessing which sector will perform best, this ASX ETF looks for businesses that are difficult to disrupt. Strong brands, high switching costs, and entrenched positions are the common thread. These companies often look boring until you realise how consistently they generate cash.

The VanEck Morningstar Wide Moat ETF is the ETF I would rely on when markets become volatile. It is designed to reward investors willing to make patient long-term investments.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could be a great option for investors this month.

Many of the world’s most engaged digital consumers live in Asia, and this ETF targets the platforms they use every day. Payments, gaming, social commerce, and online services dominate the portfolio.

The Betashares Asia Technology Tigers ETF adds a layer of growth that does not depend on US leadership alone. It can be volatile at times, but it reflects where future economic growth is likely to come from.

Betashares Crypto Innovators ETF (ASX: CRYP)

Finally, the Betashares Crypto Innovators ETF is one worth considering if you have a high tolerance for risk and believe that cryptocurrencies are here to stay.

Rather than betting directly on digital assets, it focuses on the businesses building the infrastructure around them. Exchanges, miners, and service providers rise and fall with adoption trends, regulation, and sentiment.

The post Where I would invest $5,000 in ASX ETFs in January appeared first on The Motley Fool Australia.

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• Guess how much $10,000 invested in these ASX ETFs 3 years ago is worth today?
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• New to Investing? Here are 3 ASX ETFs to get you started
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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) delivered a total gross return of 13.34% in 2025.

This comprised 9.81% in capital growth and a dividend yield of 3.53%, less fees.

By comparison, the iShares Core S&P 500 AUD ETF (ASX: IVV) rose 8.24% and delivered a total return of 10.13%.

Why did VGS ETF do better than IVV last year?

The US stock market has delivered unbelievable returns over the past three years.

This has largely been due to the performance of global tech giants listed in the US.

While VGS is overweight in US stocks, about 30% of its investments are in other global markets that are starting to surge.

This, along with a weaker US dollar against most developed-nation currencies, is why the VGS ETF outperformed ASX IVV last year.

A review of the 2025 performance of various global indices outside the US depicts the trend.

Other global markets surge in 2025

Last year, the S&P 500 Index (SP: INX) gave a total return of 17.88% (the IVV ETF returned less than this due to the currency exchange).

A total return of almost 18% in a year is an outstanding return in anyone’s language.

The VGS ETF is comprised of 73.6% US stocks, so the S&P 500’s performance heavily influenced its 2025 return.

But look what other global indices did.

The S&P Japan 500 Index delivered a total return of 25.12%, outperforming the S&P 500 by more than 7%.

Japan is the second biggest geographic exposure in the VGS ETF at 5.6%.

Canada’s benchmark, the S&P/TSX Composite Index, delivered a total return of 31.68%. That’s almost 14% more than US stocks.

Canada is the third largest geographic exposure in the VGS ETF at 3.4%.

The S&P United Kingdom Index returned 25.71%, outperforming the S&P 500 by almost 8%.

The United Kingdom is the fourth-largest geographic exposure in ASX VGS, at 3.4%.

The S&P Europe 350 Index returned 20.5%. Grouped together, European stocks make up 15.9% of the VGS ETF.

The S&P Pan Asia BMI Index, which incorporates Japan, China, South Korea, Taiwan, and Australia, returned 27.31%.

Grouped together, the Pacific represents 6.5% of the VGS ETF’s geographic mix.

Diversity advantage of ASX VGS

While heavily invested in US stocks, the Vanguard MSCI Index International Shares ETF provides exposure to other international shares.

That diversification is proving useful, with experts suggesting markets outside the US could outperform over the next decade.

Top broker Goldman Sachs says international markets will likely outperform US shares over the next 10 years.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs Research, said:

We expect higher nominal GDP growth and structural reforms to favor emerging markets, while artificial intelligence’s long-term benefits should be broad-based rather than confined to US technology stocks.

A declining US dollar could also favor non-US equities, adding an extra layer of opportunity for globally diversified portfolios.

Goldman favours emerging markets and Asia ex-Japan over the 10-year outlook.

Here are the broker’s predictions:

Region	Average return over 10 years	Drivers
US	+6.5%	Driven primarily by EPS growth, with valuations trending lower and dividends remaining modest
Europe	+7.1%	Balanced contributions from earnings and shareholder distributions, including about a 3% dividend yield
Japan	+8.2%	Underpinned by EPS growth of 6% and and policy-led improvements in dividends and buybacks
Asia ex-Japan	+10.3%	Aided by about 9% EPS growth and 2.7% dividend yield, partly offset by valuation derating
Emerging markets	+10.9%	Led by strong EPS growth in China and India. We also see improving shareholder returns supported by policy reforms

Source: Goldman Sachs

Another top global broker, UBS, foresees stronger earnings growth in China and Europe than the US over the next two years.

In a recent article, UBS recommended that investors “add exposure to global equities amid [a] supportive backdrop”.

The post VGS ETF outperformed ASX IVV in 2025. Here’s why appeared first on The Motley Fool Australia.

More reading

• Where I would invest $5,000 in ASX ETFs in January
• New to Investing? Here are 3 ASX ETFs to get you started
• 2 ASX ETFs I would buy in 2026 and hold forever
• Own IVV ETF? Here are your returns for 2025
• Vanguard reveals next lot of dividends for VAS and other ASX ETFs

Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. 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 edging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $30.31. In afternoon trade on Tuesday, shares are changing hands for $30.33 apiece, up 0.1%.

That sees Woolworths share up 3.2% so far in these early days of 2026 and up 17.1% since plumbing one-year lows on 14 October.

That’s the latest share price action for you.

Now here’s how the supermarket aims to embrace artificial intelligence (AI) to improve its customers’ shopping experiences and potentially boost its own sales.

Woolworths shares forging closer link with Google

As The Australian Financial Review reports, Woolies has inked a deal with Alphabet Inc Class A (NASDAQ: GOOGL) to use Google’s Gemini product in its Olive chatbot.

While the longer-term impact on Woolworths shares remains to be seen, the deal with Google makes Woolies the first Aussie supermarket to enable AI to actually shop for its customers.

The Gemini empowered Olive won’t be allowed to automatically make customer purchases, but Google noted the chatbot will be able “add items to their cart and even handle checkout”, if the customers wish.

Olive will also be able to assist with planning weekly meals and recipes. The Gemini-powered chatbot is scheduled to go live later in 2026.

Commenting on Woolworths’ adoption of Gemini, Google Australia managing director Melanie Silva said (quoted by the AFR):

We’re moving into the era of the ‘AI agent’. That sounds technical, but it’s actually pretty simple. Up until now, AI has been great at giving you information. Agents are all about doing something with it. It’s the difference between a tool that just answers a question, and a helper that thinks one step ahead to actually help you get a job done.

Woolworths CEO Amanda Bardwell added:

We are evolving our digital shopping assistant Olive into an intuitive partner that won’t just answer questions, but actually anticipates your needs – planning meals based on what you love and spotting the specials that matter. This is a practical innovation that’s all about us … making shopping that little bit easier to give you time back in your day.

Commenting on the impact on customer shopping habits, and by connection the potential impact on Woolworths shares, Craig Woolford, an analyst at MST Marquee, said, “It will potentially be saving them time and making the specials more visible, but it really depends on the uptake.”

The post Buying Woolworths shares? Here’s how the supermarket is tapping into the AI revolution 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 positions in and has recommended Alphabet. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lake Resources N.L. (ASX: LKE) shares are under pressure on Tuesday, despite a huge run over the past year.

At the time of writing, the lithium developer’s share price is down 15.39% to 11 cents. Even after today’s sell-off, Lake Resources shares remain up 175% over the past 12 months, highlighting just how strong the longer-term rally has been.

So, why is the stock pulling back today?

A big year for Lake Resources investors

Lake Resources has been one of the ASX’s better-performing lithium stocks over the past year as investor sentiment toward the sector improved.

The company is developing its flagship Kachi lithium project in Argentina’s Catamarca Province, part of the world-renowned Lithium Triangle. Unlike traditional brine producers, Lake Resources plans to utilise direct lithium extraction (DLE) technology, which aims to deliver high-purity, battery-grade lithium with reduced water usage and a smaller environmental footprint.

That technology angle has helped Lake Resources stand out during the lithium recovery, particularly as automakers and battery manufacturers increasingly focus on sustainability.

Over the past year, investors have also responded positively to steady project progress, including engineering work, permitting updates, and infrastructure planning at Kachi.

Why are shares falling today?

Today’s decline appears to be driven more by profit-taking and short-term sentiment than by any single negative announcement.

After such a strong run, pullbacks are common in early-stage resource stocks, especially when broader lithium prices turn volatile, or investors lock in gains.

Lithium carbonate prices have surged recently, with spot prices in China pushing to multi-year highs. While that is supportive longer term, sharp commodity moves can also increase short-term volatility in producer and developer share prices.

From a technical perspective, Lake Resources shares had moved quickly toward recent highs, leaving the stock vulnerable to a correction.

The long-term lithium story remains intact

Despite near-term weakness, the long-term demand outlook for lithium remains compelling.

Electric vehicle adoption continues to rise globally, while demand for energy storage is accelerating as grids transition toward renewable energy sources. Many industry forecasts suggest lithium supply could tighten again later this decade if new projects are delayed.

Lake’s Kachi project remains one of the larger undeveloped brine resources globally, with a definitive feasibility study pointing to competitive operating costs and long mine life once in production.

That said, Lake Resources remains a high-risk investment. It is still pre-production, generating no revenue, and future outcomes depend on execution, funding, and lithium market conditions.

Foolish Takeaway

Today’s drop in Lake Resources shares does not undo the gains made over the past year.

For investors with a long-term view on lithium and higher risk tolerance, this kind of pullback can be part of the journey. For more cautious investors, it highlights how quickly sentiment can shift in pre-production resource stocks.

It is important to note that managing risk and expectations should always be a top priority.

The post Lake Resources shares slide 15% today but are still up 175% in a year. What’s going on? appeared first on The Motley Fool Australia.

More reading

• 12 ASX lithium shares rip to 52-week highs
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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.

When I think about which stocks I want to own through 2026 and beyond, I’m not looking for the next hot trade or a quick bounce. I’m looking for businesses that can compound steadily, navigate uncertainty, and still look relevant several years from now.

Three ASX stocks I think tick these boxes are in this article. Here’s why I would be comfortable buying today and holding them for the long term.

Zip Co Ltd (ASX: ZIP)

Zip is a stock that has gone through a painful reset, but that reset is exactly why I find it interesting today.

The buy now, pay later company has moved away from a growth-at-all-costs mindset and toward a far more disciplined operating model. Credit quality, cost control, and profitability now sit at the centre of the strategy, rather than raw transaction volume.

What gives me confidence in holding Zip in 2026 is its earnings trajectory. According to CommSec, consensus expectations point to earnings per share of 7.9 cents in FY26, rising to 12.1 cents in FY27. That kind of growth suggests operating leverage is beginning to work in shareholders’ favour.

Zip still carries risk. Consumer spending conditions matter, and competition remains intense. But compared to prior years, the business looks more focused, more credible, and more aligned with sustainable earnings growth. If execution continues successfully in the huge US market, I think sentiment could continue to improve through 2026.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is an ASX stock I think is entering a very different phase of its life.

The merger with Chemist Warehouse in 2025 has reshaped the business, turning Sigma into a much larger and more strategically relevant player across pharmacy retail, franchising, and wholesale distribution. Today, the group supports hundreds of franchised pharmacies and supplies thousands more across Australia, giving it scale that few competitors can match.

What appeals to me in 2026 is the defensiveness of the end market combined with the opportunity for operational improvement. Demand for prescription medicines and frontline healthcare services is structural rather than cyclical, which provides a level of earnings resilience that many consumer-facing businesses lack.

The merger does introduce complexity, but if management delivers even modest efficiency gains across a much larger platform, Sigma’s earnings profile could look meaningfully stronger over time.

It is for this reason that I would be comfortable buying and holding this one for the long term.

ARB Corporation Ltd (ASX: ARB)

ARB is a company I associate with quality and long-term thinking.

While FY25 was a more challenging year, the underlying business remains solid. ARB continues to generate strong cash flows, operates with a net cash balance sheet, and invests heavily in product development, manufacturing automation, and international expansion.

What makes ARB interesting in 2026 is the growing contribution from offshore markets, particularly the United States. Export sales now represent a meaningful portion of revenue, and ARB’s investments in US engineering, retail partnerships, and owned distribution channels appear to be gaining traction.

The business is not immune to currency movements or consumer cycles. But ARB’s brand strength, product breadth, and disciplined capital management give it durability. I would be comfortable buying and holding ARB in 2026 as a high-quality industrial with long-term growth optionality.

The common thread

Zip, Sigma, and ARB are very different businesses, but they share one important characteristic. Each has entered 2026 with a clearer strategy and a more credible earnings outlook than in recent years.

None of these stocks are risk-free. But each offers exposure to improving fundamentals, structural demand drivers, or both. For investors willing to look beyond short-term noise, these are three ASX stocks that could be worthy of buy and hold investments.

The post The 3 stocks I’d buy and hold into 2026 appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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

Liontown Ltd (ASX: LTR) shares are pushing higher again on Tuesday.

In afternoon trade, the lithium miner’s shares are up 4% to a new 52-week high of $2.24.

This means its shares are now up 300% since this time last year.

The good news for investors is that Bell Potter believes there are more gains to come.

What is the broker saying?

Bell Potter has been looking at Liontown’s Kathleen Valley lithium mine and has been impressed with the ramp up of its production.

It notes that recent work means that Kathleen Valley is expected to soon hit production rates of 500,000 to 550,000 tonnes of lithium spodumene concentrate per annum. However, it sees scope for an increase to 800,000 tonnes per annum in the future. The broker explains:

LTR’s core asset is the Kathleen Valley lithium mine located in Western Australia’s Northern Goldfields region. LTR took FID on Kathleen Valley in June 2022 and achieved first production in mid-2024. Kathleen Valley is expected to ramp up to 2.8Mtpa ore throughput and lithia recovery rates of 70% in 2H 2026, enabling SC production rates of 500-500ktpa.

There is potential to further expand throughput to 4Mtpa in the longer term, enabling SC production rates of up to 800ktpa. The company has a strong ESG focus as exemplified by its Native Title Agreement and net zero by 2034 carbon emission target. LTR has lithium offtake agreements LG Energy Solutions, Tesla, Ford and Chengxin and Canmax Technologies.

Quarterly preview

Bell Potter is expecting a strong quarterly update from Liontown later this month. It is predicting stronger production and much higher revenue than the first quarter. The broker said:

We expect December 2025 quarterly production of around 110kt SC at a unit operating cost of around A$850/t sold and quarterly revenue of $150m. LTR produced 87.2kt SC (5% Li2O) in the September 2025 quarter, or 19-24% of the FY26 guided range (345-450kt). Quarterly revenue was $68m.

Time to buy

According to the note, Bell Potter has retained its buy rating on Liontown’s shares with an improved price target of $2.48.

This implies potential upside of approximately 11% for investors from current levels.

Commenting on its buy recommendation, the broker said:

Under our updated price outlook, LTR deleverages from net debt of $274m at 30 September 2025 to a net cash position by the end of 2026. EPS changes as a result of these upgrades are: [FY26] now +2.3cps (previously -2.3cps); FY27 +230%; & FY28 +106%. LTR’s 100% owned Kathleen Valley lithium project is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction. LTR has offtake contracts with top-tier EV and battery OEMs. Over FY26, LTR will de-risk the ramp up of Kathleen Valley. LTR has a strong balance sheet with long tenor debt finance.

The post Why Bell Potter rates roaring Liontown shares as a buy appeared first on The Motley Fool Australia.

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

ASX investors looking for passive income in 2026 have plenty of choices to sift through.

There’s always the ASX 200 bank stocks, of course. The ASX banks have always been a go-to choice for investors seeking fat, and usually fully-franked dividends. However, dividend yields from the four largest banks are currently rather low compared to what investors have historically enjoyed.

Investors can always opt for commodity-based dividend payers instead; that being your miners and drillers. Sure, many of these stocks, including BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS), do have the potential to pay sizeable dividends, but they are not the most reliable passive income stocks. That’s due to their reliance on volatile commodity prices to pay large dividends.

Other, more reliable blue-chip dividend stocks are still around, of course. However, the likes of Telstra Group Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) are also trading with relatively low dividend yields compared to what investors have become accustomed to seeing over the past decade or two.

That’s why investors may want to think outside the box if they wish to secure some outsized dividend income in 2026.

One possible ‘outside the box’ stock to consider is Woolworths Group Ltd (ASX: WOW).

Analysts pick this passive income stock as a buy today

Woolworths has just come off one of its worst two-year periods in 2024 and 2025. A number of less-than-favourable developments comprehensively took the shine off this company, leading to investors sending it down almost 20% in 2024 and by another 4% or so last year.

Those developments included the ongoing erosion of market share to the benefit of its rival, Coles Group Ltd (ASX: COL), and the controversial departure of former CEO Bradford Banducci.

But smart investors are sensing an opportunity here. At just over $30 today, Woolworths shares are currently at a price the company first hit way back in 2014. ASX broker Bell Potter reckons it’s a good price to buy. As my Fool colleague covered last week, Bell Potter has given Woolworths stock a buy rating and a 12-month share price target of $10.70. The broker noted that  Woolworths “has been in an earnings downgrade cycle for two years and this looks to be coming to an end”.

Analysts pointed to the 12% discount Woolworths shares are trading at compared to Coles, as well as the 14% discount the company is sitting at compared to its own historical valuation, as the roots of their confidence.

As we also covered just yesterday, analysts are forecasting that Woolworths will be able to fund 99.5 cents per share in dividends over FY2026. At the current Woolworths share price, this would give the company a forward dividend yield of about 3.3%. That would certainly be a good start for passive income seekers in 2026 if accurate.

The post Smart investors are betting on this ASX passive income stock appeared first on The Motley Fool Australia.

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

Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) have surged to a fresh all-time high, as investor enthusiasm around defence spending and contract momentum continues to build.

The EOS share price touched a record $11.20 earlier today before easing slightly. At the time of writing, the stock is up 10.21% to $11.01.

That move pushes EOS decisively above its previous all-time high of $10.80, set back in early 2020 before the COVID sell-off. More importantly, it caps off one of the most extraordinary rallies on the ASX. The stock is now up more than 800% compared to this time last year.

A powerful mix of tailwinds

The rally is being driven by a potent combination of macro and company-specific catalysts.

On the macro level, rising geopolitical tensions across Europe, the Middle East, and the Asia-Pacific continue to drive a sharp increase in global defence spending. Governments are prioritising border security, force protection, and autonomous weapons systems, all areas where EOS has proven capability.

At the company level, EOS has delivered a steady stream of positive news over recent weeks. Last month alone, the company announced multiple new contracts across its remote weapon systems (RWS) and space systems divisions, reinforcing confidence that revenue momentum is accelerating into calendar year 2026.

Investors are also closely watching developments in South Korea. EOS is widely expected to secure the conditional South Korean defence contract, with a decision anticipated before the end of this month. If confirmed, it would represent another major validation of the company’s technology and further expand its footprint in a strategically critical region.

Broker confidence builds

Today’s rally was given an extra boost after Ord Minnett upgraded its price target on EOS to $12.72 per share. That upgrade reflects growing confidence in EOS’ earnings outlook, order book strength, and exposure to long-duration defence programs.

Broker sentiment across the sector has been steadily improving as analysts reassess the sustainability of higher global defence budgets. Unlike past cycles, defence spending is being locked in for the long term, rather than driven by short-term shocks.

Why investors are piling in

From a market perspective, EOS now has a market capitalisation of around $2.1 billion, yet many investors believe it is still in the early stages of its global expansion cycle.

With a strong balance sheet, a growing pipeline of contracted work, and multiple near-term catalysts still in play, momentum remains firmly on the company’s side.

While volatility is always part of high-growth defence stocks, today’s breakout to new highs sends a clear message. For many investors, EOS is no longer a speculative small-cap; it is now a clear beneficiary of a rapidly changing global security landscape.

The post New all-time high. Why this ASX defence stock is flying again today appeared first on The Motley Fool Australia.

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• EOS shares are near all-time highs. Here’s why I think $15 is next in 2026
• Why Aeris Resources, Cobram Estate, EOS, and Robex shares are charging higher today
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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 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.