Tag: Stock pick

Telecommunications stocks are not usually associated with excitement.

They are owned for yield, not growth, and they tend to move slowly in both directions.

TPG Telecom Ltd (ASX: TPG) has offered investors rather less stability than the sector’s reputation might suggest, with shares down 30% over the past twelve months.

But this week’s Investor Day contained a commitment that income investors specifically should pay close attention to.

What TPG said at its Investor Day

TPG Telecom held its annual Analyst and Investor Day on Tuesday 3 June 2026.

The company presented a first-half 2026 trading update alongside its medium-term strategic direction.

TPG delivered two important messages for income investors.

First, mobile service revenue continues to grow strongly. The company forecasts 70,000 to 80,000 new mobile subscribers in the first half of FY2026. EBITDA growth is also expected to outpace revenue growth as the company’s cost discipline takes hold.

Second, and most importantly for dividend investors, management confirmed that dividend growth is expected to continue in line with sustainable profit and cash flow growth.

This is a meaningful upgrade to the dividend policy from prior years when capital was being prioritised for debt reduction.

The financial transformation behind the dividend commitment

The dividend growth commitment is credible because of the financial transformation underpinning.

In FY2025, TPG’s operating free cash flow almost doubled to $1.91 billion. This was a dramatic improvement from prior years when heavy capital expenditure on the mobile network consumed the bulk of cash generation.

Net bank borrowings fell from $4.1 billion to $1.361 billion over the same period, dramatically reducing the financial risk that had previously constrained dividend capacity.

Total FY2025 dividends paid were $0.18 per share, franked at 30%.

Management is now guiding for FY2026 EBITDA of $1.665 billion to $1.735 billion and capital expenditure of approximately $750 million.

This combination implies continued strong free cash flow generation and growing capacity to lift the dividend.

The current yield picture

At the current TPG share price, the trailing dividend yield sits at approximately 4.9% on a partially franked basis.

This yield does not compare unfavourably to the big four banks, particularly ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), which carry their own earnings risks in the current high-rate environment.

Furthermore, the partially franked dividend does carry some franking credit value for Australian taxpayers. This should improve their effective after-tax yield above the headline figure.

The key question for income investors is not the current yield but the trajectory.

A business with nearly doubling free cash flow, dramatically lower debt, and a new dividend growth policy is precisely the setup from which reliable income growth tends to emerge over a three to five-year horizon.

The risks worth knowing

TPG’s broadband subscriber base has been declining as the company shifts focus toward mobile and away from legacy fixed-line services.

This transition has created some revenue headwinds in the near term that management is working to offset through cost reduction and mobile subscriber growth.

The company also flagged that spectrum renewal costs from 2028 represent a capital expenditure risk that will need to be managed carefully.

Competition from Telstra (ASX: TLS) and Optus in the mobile market remains intense, and any meaningful loss of mobile market share would directly threaten the earnings trajectory that underpins the new dividend policy.

Foolish takeaway

TPG shares have underperformed the market significantly over the past year.

That underperformance has created a more attractive entry point for income investors than has been available in some time.

A dividend growth commitment backed by nearly doubling free cash flow and dramatically reduced debt is not something to overlook.

For patient income investors comfortable with a telco turnaround story, TPG shares deserve serious consideration.

The post TPG Telecom just raised its dividend. Here’s what that means for income investors appeared first on The Motley Fool Australia.

More reading

• Why the RBA’s next move could be the most important event for ASX shares in 2026
• 3 strong ASX dividend shares for retirees to buy
• Brokers rate these 5 ASX 200 shares as a sell!
• Why Evolution Mining, JB Hi-Fi, Scentre Group, and TPG Telecom shares are falling today
• TPG Telecom posts mobile growth and strong free cash flow in 2026 update

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

DroneShield Ltd (ASX: DRO) shares slumped further into the red at the close of the ASX on Wednesday afternoon.

After the bell rang on the sharemarket for the day, DroneShield shares ended 4.36% lower at $3.07 a piece.

The decline means the ASX defence shares are now down 18% over the past month. And are around 8% lower for the year-to-date.

What has dragged DroneShield shares lower over the past month?

It looks like a combination of governance and regulatory has dampened investor sentiment recently.

In mid-May, DroneShield announced that it had received a notice from the Australian Securities and Investments Commission (ASIC) asking for reasonable assistance with an investigation under the Corporations Act.

The investigation relates to market announcements and share trading between the 1st and 20th or November 2025.

The company made several announcements during this time, including new contract announcements and news that several executives were selling DroneShield shares through on-market trades.

It’s unclear if any of these are under investigation by ASIC.

The company said it will cooperate fully and that it is unclear what action, if any, may result.

Governance issues and regulatory investigations often weigh heavily on investor confidence, especially for growth stocks where sentiment is already important.

Investors weren’t happy with the notice and the share price crashed around 20% in just over a week. 

The update came amid a background of signs of easing conflict in the Middle East. While heightened conflict can increase interest in defence technology, particularly counter-drone systems, signs of easing can do the opposite.

It looks like investor sentiment has now cooled.

Is there any upside ahead? Or is this the beginning of the next downturn?

It’s not only investor sentiment about DroneShield shares which has shifted, analysts have also changed their outlook.

In late-May, TradingView data showed two analyst ratings – one as a strong buy, and the other as a hold. The average target price was $4.10.

But today shows a very different story.

The latest TradingView data shows three analysts ratings – one is a strong buy, one a sell and one a strong sell.

This is a huge shift in sentiment.

The average target price is also lower at $3.29. Although it still implies a potential 7% upside at the time of writing.

The company has experienced staggering financial growth, notably surging revenues from a massive surge in global counter-drone demand. 

But it looks like analysts now view the DroneShield shares are trading at fair value.

The post DroneShield shares slump 18% in a month: Has the ASX defence stock finally lost steam? appeared first on The Motley Fool Australia.

More reading

• Should I buy DroneShield shares after its US contract win?
• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today
• DroneShield shares jump as fresh US defence deal fires up investors
• Why DroneShield, Lendlease, PlaySide, and ResMed shares are tumbling today
• What happened to DroneShield shares in May?

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 DroneShield. 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.

Wesfarmers Ltd (ASX: WES) shares are in the spotlight this week.

At the close of the ASX on Wednesday afternoon, the conglomerate’s shares ended marginally lower, down 0.15% to $79.03 a piece.

Wesfarmers shares have now rebounded around 11% from a 52-week low recorded in late-May. But they’re still 3% lower for the year-to-date and 6% below trading levels seen this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) is around 1% higher for the year-to-date and 4% higher than 12 months ago, at the time of writing. 

So, why are Wesfarmers shares catching investor attention this week?

Earlier this week, Wesfarmers made a major business restructuring announcement.

In a post to the ASX, Wesfarmers said that the Industrial and Safety businesses, Blackwoods and Workwear Group, will transition into Wesfarmers-owned Bunnings Group.

Management said the change is expected to improve operational efficiencies, strengthen Bunnings’ position in the small and medium-sized business market. This is all while also retaining Blackwoods and Workwear Group as standalone brands.

The Industrial and Safety businesses will transition to Bunnings on 1 July 2026. Their financial contributions will be included in Bunnings’ results for the first half of the 2027 financial year. 

Bunnings will continue to disclose key sales metrics excluding Blackwoods and Workwear Group, such as total retail sales and store-on-store sales. 

Wesfarmers does not expect to record any material one-off costs associated with the transition and will provide further updates at its full-year results in August 2026.

The announcement comes ahead of Wesfarmers’ upcoming annual strategy briefing day next week. 

Management is expected to provide updates on Bunnings’ growth planes, Kmart and Officeworks financial performance, and the long-term earnings outlook.

It looks like investors are buying back into the shares in the hope that the update will be impressive.

What’s next for the shares?

According to TradingView data, analysts are reserved about the outlook for Wesfarmers shares over the next 12 months.

Out of 11 analysts, seven have a hold rating on the Bunnings and Kmart owner’s shares. Another two have a buy or strong buy rating, and two have a sell rating.

The average $75.21 target price implies a potential 5% downside at the time of writing. Meanwhile, some analysts think the shares could climb 6% higher to $84, and others think Wesfarmers shares could sink another 17% to $65.97.

The post Why is everyone talking about Wesfarmers shares this week? appeared first on The Motley Fool Australia.

More reading

• How combining superannuation and ASX shares can set you up for retirement better than property
• How much is needed in superannuation to target a $9,000 monthly passive income?
• 5 years ago, $10,000 bought 181 Wesfarmers shares. But how many would it buy now?
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks
• Why’s the ASX 200 falling today despite another tech rally?

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

When it comes to ASX dividend stocks, Shaver Shop Group Ltd (ASX: SSG) is a long-term high-yield player.

At the close of the ASX on Wednesday afternoon, Shaver Shop shares had fallen 1.57% to $1.26 a piece.

The drop means that ASX dividend stock’s shares are now down around 16% for the year-to-date and are 5% lower than this time last year.

As a discretionary retail business, which sells personal grooming products online and in store, Shaver Shop shares are sensitive to changes in consumer spending.

That means the company has faced headwinds from higher inflation and cost of living woes this year. Consumers have cut bank on discretionary spending while finances are tight, and this has had a negative impact on the company’s revenue and earnings growth.

Earlier this year, Shaver Shop posted a positive but modest FY26 half-year result, but it came short of investor expectations.

The ASX dividend stock was also removed from the All Ordinaries Index (ASX: XAO) as part of a quarterly rebalance in March, further damaging investor sentiment.

Some investors might be put off by the falling share price and company headwinds. But I think the latest dip presents a rare opportunity to buy the high-yielding ASX dividend stock for cheap.

Here’s why.

Consistent long-term dividends

The ASX dividend stock has paid a regular semi-annual dividend payment to shareholders for years. 

Shaver Shop started paying a dividend to investors in 2017 and has gradually increased its annual payout each year ever since, with the exception of FY24 when the dividend payment was unchanged.  

A reasonable valuation

The business is currently trading on a price to earnings (P/E) ratio of around 11. This is relatively low compared to many other ASX consumer stocks.

The benefit of a lower P/E ratio is that it can help support a higher dividend yield.

A high yielding ASX dividend stock

The ASX dividend stock most recently paid investors an interim dividend of 4.8 cents per share, fully franked, in March. 

The ASX dividend share’s latest two half-year dividends total 10.3 cents per share. That translates into a grossed-up dividend yield of around 8%, including franking credits, at the time of writing.

The retailer is forecast to pay shareholders between 10.5 cents and 10.9 cents per share for FY26.

Growth plans in place

Shaver Shop is continuing to push forward with plans to grow its profits and increase its dividend paying for investors. 

This ASX dividend stock is driving growth by expanding its store network in Australia and New Zealand, boosting online sales, launching private brands like Transform-U, and securing exclusive supplier agreements.

The post 1 ASX dividend stock down 16% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to block out the noise and lock in a yield as high as 11%
• Is this ASX dividend share a buy for its 11% dividend yield?
• 2 ASX shares with dividend yields above 8%

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

History shows that the S&P/ASX 200 Index (ASX: XJO) can bring average yearly returns around 9%. 

Unfortunately for investors, 2026 is shaping up to be a down year. 

At the time of writing, Australia’s benchmark index is sitting almost in the same position as the start of the year. 

Why international diversification matters 

While the Australian share market has delivered strong long-term returns, it makes up only a small portion of the global share market.

That means investors who only own ASX shares are missing out on many of the world’s largest and fastest-growing companies. 

International diversification can help reduce reliance on the performance of Australian banks, miners, and energy companies, while providing exposure to global leaders in sectors such as technology, healthcare, consumer brands, and artificial intelligence. 

It can also smooth portfolio returns when the local market is struggling, as different economies and industries often perform well at different times.

With the ASX 200 treading water in 2026, adding international ETFs could be a simple way for investors to access new growth opportunities and build a more resilient portfolio.

Here are three ideal options to diversify away from Australian equities. 

BetaShares Nasdaq 100 ETF (ASX: NDQ)

This ASX ETF is one of the most popular funds for Australian investors and one of the largest by market cap. 

The fund aims to track the performance of the Nasdaq 100 Index. 

The Nasdaq 100 comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy.

With its strong focus on technology, NDQ provides diversified exposure to a high-growth potential sector that is under-represented in the Australian sharemarket.

It could be an ideal choice for investors looking to access the dynamic tech sector in the US. 

The fund has risen more than 12% year to date. 

Vanguard Msci Index International Shares ETF (ASX: VGS)

This ASX ETF from Vanguard is another popular choice amongst investors looking to target international stocks. 

It includes roughly 1,300 companies from developed countries, excluding Australia.

The fund provides exposure to many of the world’s largest companies listed in major developed countries. 

It has provided annual returns of over 10% for the last 5 years. 

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

Another option for investors looking to diversify away from Australian and US stocks is this fund from Vanguard. 

The ETF provides exposure to many of the world’s largest companies listed in major developed and emerging countries outside the US.

It offers instant diversification with over 3,000 equities in a single trade. 

Over the last 5 years, it has provided annualised returns of approximately 10%. 

The post 3 ASX ETFs to diversify away from a flat Aussie market appeared first on The Motley Fool Australia.

More reading

• 3 reasons why this ASX ETF could be an incredible buy-and-hold forever idea
• Why NDQ and these ASX ETFs could be buys in June
• Top 10 ASX shares bought and sold by investors in May
• 3 incredible ASX ETFs for Australian investors in June
• Can you get rich by investing $5,000 a year into ASX shares?

Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended 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 ASX-listed exchange-traded fund (ETF) Vanguard MSCI Index International Shares ETF (ASX: VGS) could be one of the best investments an Australian can buy for the ultra-long-term.

There are plenty of investments that an Australian could choose, but this offering from Vanguard has so many useful characteristics that it could be one of the very best ASX ETFs.

When I say it could be good for the long term, I’m thinking decades ahead. Let’s look at what makes it so compelling.

Global diversification

The ASX ETF’s investment strategy is to invest in a global portfolio of businesses from across numerous economically developed countries.

Some of the other most popular funds on the ASX are just focused on Australian shares or US shares. The global share market is an excellent place to invest, giving access to the biggest names from various countries, such as the US, Japan, the UK, Canada, France, Switzerland, and Germany.

By investing in such a widespread way, the fund helps lower risks while giving exposure to a lot of great businesses.

At the end of April 2026, the VGS ETF had 1,275 holdings. As time goes on, the holdings will change, allowing it to benefit from the rise of the latest winners. For example, the ASX ETF’s portfolio has benefited from the huge rise in the share price.

Impressive businesses

No returns are guaranteed, but I think the VGS ETF has a number of financial metrics that can help spur returns for investors.

For example, its portfolio’s earnings growth rate was reported in April 2026 as 21.3%. Growing profit is a key factor in supporting share prices, so it’s pleasing to see that level of progress. Over the long term, earnings growth may be the most important driver of success.

The return on equity (ROE) is a helpful measure showing how much money these businesses make on retained shareholder money, and it may also imply what sort of return additional retained profit could make. The ROE was 19.7% as of April 2026.

The biggest positions in the portfolio include names like Nvidia, Alphabet, Apple, Microsoft, Amazon, and Meta Platforms.

Low fees

One of the biggest contributors to how well an ASX ETF performs is the scale of its fees. The lower the fees, the better, because that’s leaving more of the money in the hands of the investor and more for compounding.

The VGS ETF has an annual management fee of 0.18%, which I’d describe as one of the lowest on the ASX for a globally-diversified portfolio.

All of the above helped the fund deliver an annual net return per year of around 13.5% per year, which I’d describe as a wonderful rate of compounding and can help wealth-building. Past performance is not a guarantee of future returns of course, but I think it can continue performing very well.

The post 3 reasons why this ASX ETF could be an incredible buy-and-hold forever idea appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to diversify away from a flat Aussie market
• Top 10 ASX shares bought and sold by investors in May
• Can you get rich by investing $5,000 a year into ASX shares?
• 3 top ASX ETFs for Gen Z investors to buy
• How to become a millionaire on a $70,000 salary

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 Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, 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.

Australians love property.

Property is tangible, familiar, and for the past three decades it has delivered extraordinary returns in most capital cities.

But is it actually the best way to build retirement wealth?

When you run the numbers carefully, the answer for most Australians is probably not.

Combining superannuation and ASX shares, particularly fully franked dividend payers, builds wealth in ways that property simply cannot replicate at the same tax efficiency or cost.

The super advantage most investors underestimate

Superannuation is a tax-privileged structure that dramatically accelerates wealth compounding over time.

Earnings inside super are taxed at just 15% during the accumulation phase, compared to your marginal tax rate outside super.

In retirement, superannuation earnings become completely tax-free.

Compare that to an investment property, where rental income is taxed at your marginal rate and capital gains are taxed at up to 24.5% after the CGT discount.

Furthermore, from 1 July 2026, payday super requires employers to pay superannuation contributions at the same time as wages. This means every pay cycle immediately compounds inside this tax-advantaged structure.

The power of that compounding, at a lower tax rate, over a 30 to 40-year career can be extraordinary.

Why ASX shares inside super compound so effectively

Fully franked ASX dividends inside superannuation are particularly powerful.

The 30% franking credit attached to a fully franked dividend from a stock like Commonwealth Bank of Australia (ASX: CBA) or Wesfarmers Ltd (ASX: WES) is essentially a tax refund from the ATO.

Inside super, where the tax rate on earnings is 15%, the fund receives a 15% net tax credit on top of the dividend itself.

That effective yield boost is unavailable to property investors, who instead pay income tax on rental receipts.

Furthermore, the ASX 200 has returned 8.53% per annum including dividends since inception.

This figure, inside a superannuation structure with 15% earnings tax and franking credit refunds, translates to an after-tax return that few property markets can match after accounting for stamp duty, agent fees, body corporate fees, maintenance, and periods of vacancy.

The property argument is not without merit

Property does offer leverage that shares inside super generally do not.

A $200,000 deposit on a $1,000,000 property gives five times leverage, which can dramatically amplify returns in rising markets.

However, that same leverage amplifies losses in falling markets, adds interest rate sensitivity, and creates cash flow risk through vacant periods.

The RBA’s three rate hikes in 2026 alone have materially increased mortgage costs for millions of Australian property investors. These events have demonstrated exactly how quickly leveraged property can shift from asset to liability.

The importance of the 30 June deadline

The concessional contributions cap, including employer contributions, currently sits at $30,000 for FY2026. Amounts not contributed by 30 June cannot be carried forward without satisfying the unused cap conditions.

For investors who are below that cap, topping up superannuation with additional salary sacrifice contributions before 30 June can be a very tax efficient decision.

Every dollar contributed to super at 15% concessional tax rather than at a marginal rate of 32.5% or higher is a permanent and compounding tax saving.

Foolish takeaway

Property has made many Australians wealthy and may continue to do so.

But the combination of superannuation’s tax advantages and the long-term compounding power of fully franked ASX shares is a wealth-building combination that most Australians underutilise.

For investors willing to maximise their super contributions and hold quality ASX dividend shares inside that structure, the retirement wealth outcome over 20 to 30 years is likely to be more optimal than most property strategies, with less complexity, lower costs, and no 2:00am phone calls about leaking taps.

The post How combining superannuation and ASX shares can set you up for retirement better than property appeared first on The Motley Fool Australia.

More reading

• Why the RBA’s next move could be the most important event for ASX shares in 2026
• Is this ASX financials stock a better buy than CBA shares?
• How much is needed in superannuation to target a $9,000 monthly passive income?
• 5 years ago, $10,000 bought 181 Wesfarmers shares. But how many would it buy now?
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks

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

Pro Medicus Ltd (ASX: PME) shares have performed well this week on the back of two major contract wins, but the shares are still well down on their highs over the past 12 months.

AI boom or bust?

One of the big questions for investors is whether artificial intelligence will be a positive for the company, or will over time eat into its market share as competitors seek to replicate its products on the cheap.

Two brokers have issued research reports this week with bullish share price targets on the company, indicating they don’t think AI will spell downside for the company.

And notably, the company’s Chief Executive Officer, Dr Sam Hupert, directly addressed the issue of the impact of AI in an interview published on the ASX along with the new contract announcements.

Mr Hupert said regarding the company’s share price falls, that the so-called SaaSpocalypse fear “affected the share price of most, if not all, software companies globally, including PME”.

He went on to say that he believed AI would be a big opportunity for the company.

Firstly, AI and healthcare are a strong match, and the fit is particularly compelling in diagnostic imaging. We see substantial scope for AI to be a “second set of eyes” improving both the speed and consistency of radiology reporting, and we believe we are ideally suited to play a meaningful role in that transition. Our platform is optimised for AI-enabled workflows at scale, and we have a growing footprint, with our platform now being used by over 10% of the US market, including some of the most luminary healthcare institutions in the world.

Dr Hupert went on to say that the company believed it had a “very large, defensible moat”.

Our solution is proprietary, built by us from the ground up. We did not use an existing model or tool kit readily available to others, and we certainly didn’t leave a roadmap as to how we did it. Many have tried to replicate our tech stack over the last 17 years, but no one has succeeded, with or without AI. We also operate in arguably one of the most regulated, mission critical industries where the margin for error is zero, close enough is not good enough.

Brokers like the stock

The analyst team at Morgans said they had had several industry and company contact points in recent weeks, which reinforced their view of Pro Medicus as a company executing well, “noting the second-best sales year, large implementations in train, and a structurally strong competitive position”.

They added:

The business has never been better positioned in our view despite the share price performance. Retain strong positive view and target price of $210 per share.

The team at Macquarie has an even more bullish price target of $221 on Pro Medicus shares, saying the recent contract wins have reminded the market of the company’s resilience against AI disruption.

They said:

Recent contract wins and substantial renewals have supported market sentiment on PME following tech-sell down on AI fears. We see the size, variety and increasing upsell to cardiology continuing to support our Outperform rating.

The post How much higher could Pro Medicus shares go? 2 brokers weigh in appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy now
• 3 ASX 200 healthcare shares to buy while they’re on sale
• Why AI is making Pro Medicus shares a once-in-a-generation buy
• Here are the top 10 ASX 200 shares today
• Which tech share is the ‘most defensively positioned software business’ on the ASX?

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

It was a happy hump day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Wednesday.

After recording losses at the start of the week, investors seemed to find their sense of optimism today, with the ASX 200 staying in green territory all session, and closing 0.7% higher. That leaves the index at 8,785.7 points.

This turn of fortunes for Australian investors followed an upbeat night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) recovered from an early slump to finish 0.45% higher.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) only just managed to get over the line, gaining just 0.026%.

But let’s get back to the local markets now and dive a little deeper into what was happening amongst the various ASX sectors this hump day.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is rallying despite a weaker growth warning
• This beaten-up ASX stock just jumped 5%. Here’s why investors are buying again
• Ingenia Communities affirms strong FY26 outlook and development pipeline
• If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share
• Superloop upgrades FY26 earnings guidance and unveils new strategy

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.

It can feel harder to buy an ASX exchange-traded fund (ETF) after it has just hit a record high.

The easier moment is usually when markets are nervous and prices are lower. But I do not think a record high automatically means the opportunity is over.

Two ASX ETFs that reached record highs this week are the iShares Global 100 ETF (ASX: IOO) and the Betashares Global Cybersecurity ETF (ASX: HACK).

I think both remain buys, even if the bargain-buying period has likely passed.

iShares Global 100 ETF

The IOO ETF is one of the simplest ways to invest in some of the world’s biggest listed companies.

It gives investors exposure to 100 large global businesses. These are not obscure companies hoping to become relevant one day. Many are already dominant in their industries, with huge customer bases, strong brands, global reach, and deep financial resources.

I like that because large winners can keep winning for a long time.

A business that already has scale can often afford to invest heavily in technology, product development, logistics, marketing, acquisitions, and new markets. That can help defend its position and create more growth over time.

The IOO ETF also gives investors exposure to companies that are difficult to replicate through Australian shares alone. That could include global technology giants, healthcare leaders, consumer brands, payments businesses, and other multinational compounders.

A record high does mean investors are no longer buying at the same attractive levels they might have seen during a weaker market. But I think the better question is whether the companies inside the fund can keep growing earnings over the next decade.

I think many of them can.

There will still be market pullbacks, and the IOO ETF could fall if global shares weaken. But for investors wanting exposure to world-class businesses in one ASX trade, I think it remains a strong option.

Betashares Global Cybersecurity ETF

The HACK ETF has also pushed to record highs.

I think this is one of the more interesting thematic ETFs on the ASX because cybersecurity is becoming a core business need.

Companies, governments, hospitals, banks, schools, infrastructure operators, and individuals all face growing digital threats. As more activity moves online, the cost of weak security can become enormous.

That creates a long-term demand driver for cybersecurity spending.

What I like about the HACK ETF is that it gives investors exposure to a basket of global companies working across different parts of the cybersecurity market. This can include network security, cloud protection, identity management, threat detection, endpoint security, and other tools that organisations need to protect data and systems.

Cybersecurity is not a discretionary trend in the same way as some other themes. Many organisations have little choice but to keep investing, because the risks of falling behind are too high.

That does not mean the HACK ETF will rise smoothly. The holdings can be growth-oriented, and valuations can become stretched when investors get excited about the theme.

But I think the long-term direction is clear. The world is becoming more digital, and that means security spending is likely to remain important.

Foolish Takeaway

Record highs can make investors hesitate, and I understand why.

Nobody wants to buy just before a pullback. But waiting for the perfect entry point can also mean missing years of compounding from strong businesses and powerful themes.

The IOO ETF gives exposure to global leaders that can keep reinvesting at scale, while the HACK ETF gives exposure to a cybersecurity market that I think will remain essential for years.

Neither looks like a bargain after hitting record highs. But I do not think long-term investors should need a bargain price to buy a quality ETF. If the underlying opportunity is still strong, I think both could have more to come.

The post These ASX ETFs just hit record highs, is there more to come? appeared first on The Motley Fool Australia.

More reading

• Why NDQ and these ASX ETFs could be buys in June
• 3 incredible ASX ETFs for Australian investors in June
• 3 exciting ASX ETFs to buy and hold for 10 years
• Broker tips this ASX cyber security stock to rise over 30%
• 2 top ASX shares to buy and hold for the next decade

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 BetaShares Global Cybersecurity ETF. 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.