Tag: Stock pick

There are endless ways to separate and target assets using ASX ETFs. 

One distinction that VanEck believes could be worth monitoring is real assets. 

Real assets are physical, tangible investments such as property and infrastructure. These derive value from their use and often generate income. 

These differ from other investment classes like bonds, which represent contractual claims on value rather than ownership of physical goods.

A new report from VanEck has shed light on why ASX ETFs focused on physical assets could be worth considering. 

Infrastructure and listed property

Two examples of physical assets that VanEck points to are infrastructure and physical property. 

VanEck explained that global real estate includes investment opportunities not readily available in Australia, including student housing developments, storage, data warehouses, and hotels. 

Often, rental income is linked to inflation, so it tends to increase with CPI. Australians have had a long affinity with property investing, and the requirement for income is a key driver of its demand.

Investors have also come to recognise that infrastructure assets tend to be linked to steady and reliable income, supported by real assets that tend to be long-lived and that generally retain their value.

One example of this is ASX-listed toll operator Transurban Group (ASX: TCL). 

Generally, road tolls increase in line with changes in the Consumer Price Index. Government regulation determines the amount and the frequency of toll price increases each year. And despite these rises, these roads still have traffic jams.

This highlights one of the key drivers of the long-term performance of global infrastructure securities: they exhibit inelastic demand for the services they offer.

VanEck said that with many investors predicting a high inflation and low growth, a stagflationary environment, infrastructure is piquing investor interest.  

In the past global listed infrastructure has outperformed global equities during recent stagflationary environments, when US inflation was above 2.5%, and US real GDP Growth was below 2.5%, in 3 out of the last 4 periods.

How to gain exposure with ASX ETFs

VanEck has identified two ASX ETFs that offer exposure to these real assets. 

Firstly, the VanEck FTSE Global Infrastructure (AUD Hedged) ETF (ASX: IFRA). 

The fund gives exposure to listed infrastructure companies across developed markets. The underlying index framework is designed around infrastructure sub-sectors, with target exposures of roughly 50% to utilities, 30% to transportation, and 20% to other infrastructure. 

In practice, that means investors are buying into assets such as regulated utilities, toll roads, airports, pipelines, towers and related essential-service businesses. That is a compelling setup when markets are rewarding resilient cashflows and businesses with pricing power or long-duration demand.

The second fund to consider is the VanEck FTSE International Property (AUD Hedged) ETF (ASX: REIT). 

It gives investors exposure to roughly 300 international property securities/REITs across countries and sectors that are not easily accessible through the local market. 

We think the bullish case is that elevated cash yields, stable income demand, a recovering property sector and ongoing infrastructure investment keep supporting listed real assets. 

The main risks are a renewed rise in long bond yields, slower-than-expected rate cuts, and sector-specific weakness in parts of the property or infrastructure markets.

The post Why now is the perfect time to target real assets with these ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy next week
• 17,875 shares of this ASX dividend star pays an income equal to the Age Pension
• A rare buying opportunity in 1 of Australia’s top shares?
• 5 reasons to invest $500 in CBA shares
• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?

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

One of the best things about the Australian retirement system is the Age Pension because of how it can help households in retirement when they don’t have enough financial assets to support themselves. But, there’s an ASX dividend star that I’d prefer to receive income from.

The Age Pension isn’t large enough to provide retirees with a luxurious life. But, receiving $1,100 per fortnight for a single person (the maximum basic rate) is a decent amount and it’s certainly more generous than what many other countries pay.

But, if you gave me a choice of receiving $28,600 of annual income from the Age Pension or $28,600 from the ASX dividend star Washington H. Soul Pattison and Co. Ltd (ASX: SOL), I’d personally choose the ASX share for a few different reasons.

Before I get to those reasons, it’s important to acknowledge that I wouldn’t put my entire portfolio into one name. Diversification is a powerful tool and it’s a good idea to spread a portfolio across a number of businesses, whether that’s directly or indirectly.

But, if I did need to choose one S&P/ASX 200 Index (ASX: XJO) share for reliable retirement income, Soul Patts would be the one for me.

Great dividend growth record

The ASX dividend star has increased its regular dividend every year since 1998. That’s almost 30 years of continuous dividend growth!

While the Age Pension is rising over time, the Soul Patts dividend is rising at a much faster pace. In the FY26 half-year result, it grew its interim dividend by 9.1% year-over-year to 48 cents per share. Over the past five years, its dividend has grown at a compound annual growth rate (CAGR) of 11.9% per year.

If the FY26 annual dividend per share is increased by around 9% to approximately $1.12 per share, its annual payout would be 3.7% grossed-up dividend yield, including franking credits.

Diversification

Soul Patts operates as an investment house, meaning its asset base is spread across a wide range of industries. It has paid for its rising dividend overall over these years thanks to the investment cash flow that its portfolio produces.

I like the diversification because it reduces the risk of relying on any particular sector too much. It also means the business can look across a wide array of areas for the next investment opportunity.

Some of its larger investments come from sectors like resources, telecommunications, energy, financial services, swimming schools, agriculture water entitlements, electrification and plenty more.

By investing in so many defensive sectors that generate good cash flow, the ASX dividend star has strong support for maintaining and growing its dividend payout each year.

As time goes on, I think Soul Patts is focusing its portfolio more on assets that will be able to help the company deliver long-term growth.

How many shares to generate $28,600 of income?

I view franking credits as an important part of the company’s overall passive income picture, so I’m going to include them in the calculation I’m about to do.

If someone owned 17,875 Soul Patts shares during FY26, then they could receive the same level of passive income as the Age Pension. But, I’m expecting significantly stronger income growth from the ASX dividend star than the Age Pension in the next few years.

There’s a lot to like about Soul Patts shares, which is why it’s my largest position, complementing other ASX dividend shares in my portfolio.

The post 17,875 shares of this ASX dividend star pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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• Buy, hold, or sell? Bubs, Soul Patts, and Endeavour shares
• Why I invest a lot in ASX shares outside of superannuation
• Forget term deposits! I’d buy these ASX dividend shares instead!

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Tuas Ltd (ASX: TUA) is one of Australia’s top shares, in my view. It may have its operations in Singapore, but it’s registered in Australia and listed on the ASX.

Its core business is providing telecommunications operations in Singapore. It’s not common for an ASX share to have its main revenue generation outside of Australia, New Zealand, or the US.

The business is not a blue chip (yet), but it has rapidly become a multi-billion-dollar business that still has enormous growth potential.

Growing market share

One of the things that makes this one of Australia’s top shares is the fact that the business has managed to build such a sizeable position in the country in a relatively short amount of time (in this decade).

It more than doubled its mobile subscriber count in Singapore over three years, from 691,000 in the first half of FY23 to 1.41 million in the first half of FY26. The HY26 growth was 21.7% year over year.

Additionally, the company is starting to gain some traction in the broadband space. Its HY26 broadband subscribers increased by around 32,000 to 46,000. I believe its broadband position will continue to grow, particularly once it finalises the acquisition of Singapore competitor M1.

The business is expecting Simba (its consumer-facing brand) to continue to strengthen its mobile and fibre broadband segments over the rest of FY26.

Operating leverage

One of the best advantages of subscriber growth is that not only does it mean revenue growth, but it also leads to an increase in profit margins, allowing the bottom line to rise at a faster pace than revenue. It’s the bottom line that investors ultimately value a company on.

The business reported revenue growth of 26% year over year, while underlying operating profit (EBITDA) rose 27% to $42.1 million. Pleasingly, underlying net profit jumped by $15.7 million to $18.7 million (which excludes acquisition costs). Statutory net profit improved $5.2 million to $8.2 million.

Why I think this top Australia share has a long way to grow

The business is still growing its subscriber base (and revenue) at a strong rate, which is good for compounding.

I’m optimistic the business can continue diversifying its earnings, particularly once its M1 acquisition goes through, because it will grow its non-mobile earnings. I also believe the business can successfully expand into other nearby countries, such as Malaysia or Indonesia, which would significantly improve its growth runway.

Businesses that are growing quickly are well worth paying attention to. Tuas has already demonstrated its ability to win customers, and I think it can continue this success under the leadership of David Teoh.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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• Where to invest $7,000 in ASX shares during April
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• 2 incredible ASX shares to buy in April
• Why 4DMedical, Brazilian Rare Earths, Clarity, and Tuas shares are racing higher today
• Guess which ASX 200 telco stock is jumping 7% today

Motley Fool contributor Tristan Harrison has positions in Tuas. 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.

Commonwealth Bank of Australia (ASX: CBA) shares are rarely described as cheap.

But I think there is a different way to look at it, especially when investing smaller amounts over time. Instead of focusing purely on valuation, I find it more useful to think about what you are actually getting exposure to.

Here are five reasons I would consider putting $500 into CBA shares today.

A business built around everyday activity

CBA is deeply embedded in how Australians manage their money.

From home loans and savings accounts to payments and credit cards, the bank touches a wide range of financial activity. That creates a steady flow of revenue tied to everyday behaviour, which tends to be more consistent than more cyclical businesses.

For me, that kind of exposure can be a strong starting point for long-term investing.

A balance sheet that supports resilience

One of the things that stands out in CBA’s latest half-year update is the strength of its balance sheet.

The bank reported a Common Equity Tier 1 ratio of 12.3%, which sits comfortably above regulatory requirements, alongside strong deposit funding and liquidity levels .

This is important, in my opinion. It gives the bank the ability to continue lending, investing, and supporting customers even when conditions become more challenging.

Income that can add up over time

CBA remains one of the largest dividend payers on the ASX.

In its half-year result, the bank declared an interim dividend of $2.35 per share, fully franked .

For an investor starting with $500, the income may seem modest at first. But over time, reinvesting those dividends can help build a larger position and increase the income stream.

Ongoing investment in technology

Banks are often seen as traditional businesses, but CBA continues to invest heavily in technology.

It is spending heavily to modernise its systems, enhance digital capabilities, and expand its use of artificial intelligence across the business.

For me, that shows a focus on staying relevant. It is not just maintaining its position, it is working to improve how it serves customers and operates internally.

CBA shares have a track record of consistency

What I think makes CBA really stand out is how consistently it has delivered over time.

In the latest half, cash net profit was up 6% supported by lending and deposit growth across its core businesses, while credit quality improved and return on equity lifted 10 basis points to a strong 13.8%.

That kind of consistency can be easy to overlook, but I think it plays an important role in long-term investing.

Foolish takeaway

I think that investing $500 in CBA shares would be a smart move.

CBA offers a combination of scale, resilience, income, and consistency that I think can support strong returns over the long term.

It may not be the most exciting share on the ASX, but I think it could be one of the best.

The post 5 reasons to invest $500 in CBA shares appeared first on The Motley Fool Australia.

More reading

• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?
• ANZ, NAB, Westpac, and CBA shares: Analysts rate 3 to sell, and 1 to buy
• Why I’d buy these ASX 200 stocks if I were a beginner
• $5,000 invested in CBA shares two years ago is now worth…

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

BHP Group Ltd (ASX: BHP) is one of the ASX’s most popular dividend shares.

With its exposure to iron ore, copper, and other key commodities, it has a long history of returning significant cash to shareholders.

But how much passive income could a $10,000 investment actually generate? Let’s break it down.

How many BHP shares would you own?

Based on the current BHP share price of $55.92, which is close to its record high, a $10,000 investment would buy me approximately 178 shares.

This forms the foundation for estimating my future dividend income.

What is BHP expected to pay?

According to a recent note out of Macquarie Group Ltd (ASX: MQG), its analysts are forecasting BHP to pay fully franked dividends of approximately $1.98 per share in FY 2026 and then $1.85 per share in FY 2027.

For this article, we will focus on the FY 2027 estimate.

My estimated passive income in 2027

If the mining giant were to pay $1.85 per share in FY 2027 as Macquarie expects, then my 178 BHP shares would generate a total of $329.30 in passive income.

But it doesn’t necessarily stop there. One of the key benefits of BHP’s dividends is that they are typically fully franked.

This means investors may receive additional value through franking credits, which represent tax already paid by the company. Depending on my tax situation, this could increase the effective yield of my investment.

A variable income stream

It is important to remember that BHP’s dividends are not fixed.

As a mining company, its earnings and payouts are influenced by commodity prices, particularly copper and iron ore. When prices are strong, dividends can be higher. When they fall, payouts can decline.

This makes BHP different from more stable dividend payers like Commonwealth Bank of Australia (ASX: CBA) or infrastructure companies.

Foolish takeaway

A $10,000 investment in BHP shares could generate around $329 in annual passive income for me in 2027, based on current forecasts.

That represents a dividend yield of just over 3% at today’s share price, before factoring in franking credits.

While this is a modest yield compared to other years, due largely to its significant share price appreciation over the past 12 months, it is still attractive and could play an important role in a balanced income portfolio.

The post If I invest $10,000 in BHP shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• 5 reasons to invest $500 in CBA shares
• This ASX copper stock could be cheap compared to BHP and Rio Tinto shares
• Can BHP shares smash through the $60 record barrier in April?
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?
• Are these ASX stocks hitting 52-week highs a buy, hold, or sell?

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

I like to regularly invest in ASX dividend shares to grow my portfolio in names I believe offer growth and passive income.

Superannuation is great for retirement investing, but I’m investing significantly outside of super to build up a flow of dividends to add to my near-term income.

The recent ASX share market volatility has led to share prices falling, dividend yields rising and more attractive opportunities. That’s what attracted me to the following businesses with a $2,000 investment earlier this week.

MFF Capital Investments Ltd (ASX: MFF)

MFF is best-known for its listed investment company (LIC) activities because it runs a multi-billion dollar portfolio that is mostly invested in high-quality international shares that have above-average earnings growth prospects and good competitive advantages.  

It’s invested in a number of leading global blue-chips, which has helped it to produce strong investment returns with the portfolio, leading to good capital growth (and dividend payments) in the past decade.

Recent investments include alternative investment/private equity managers, as well as ASX-listed investments L1 Group Ltd (ASX: L1G) and Montaka Global Fund (ASX: MOGL).

One of MFF’s goals is to increase the dividend, which it has delivered over the past several years. I like how rapidly the business is growing the dividend – the guided FY26 annual payout is expected to grow by 23% year-over-year to 21 cents per share.

At the time of writing, that translates into a FY26 grossed-up dividend yield of 6.4%, including franking credits, from the ASX dividend share.

WCM Global Growth Ltd (ASX: WQG)

The other investment I made was another LIC, which also has a goal of regularly growing the dividend.

It’s run by fund manager WCM which is based in Laguna Beach, California. That’s a far cry from Wall Street, which allows the fund manager to invest somewhat differently to the market.

The fund manager invests in in businesses with growing economic moats (competitive advantages) and a corporate culture that supports the improvement of the economic moat.

WCM Global Growth’s portfolio has returned an average of 14.7% per year since inception in June 2017, outperforming the global share market by an average of more than 2% per year.

It’s increasing its quarterly dividend every quarter, which is a pleasing record to see during a time of higher inflation.

The ASX dividend share is expected to pay a quarterly dividend per share of 2.45 cents in March 2026, which would be an annualised grossed-up dividend yield of 8%, including franking credits.

The post 2 top ASX dividend shares I just bought for my portfolio with $2,000 appeared first on The Motley Fool Australia.

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• 3 top ASX dividend share buys for passive income in April
• 21 ASX shares going ex-dividend over the school holidays
• 2 ASX shares with dividend yields above 8%

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Wcm Global Growth. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This $29 billion ASX gold stock has lost some shine recently. Shares in Evolution Mining Ltd (ASX: EVN) are now down 33% from recent highs, but still up 57% over 12 months.

Gold surged through 2025 as investors piled into the safe-haven asset. But since peaking in late January, the gold price has pulled back roughly 20% during the first weeks of the Iran war, dragging many ASX gold stocks lower along with it.

That weakness could be an opportunity. Here are three reasons investors may want to consider Evolution Mining this month.

Volatility is normal, bigger picture still holds

Recent price swings might look concerning, but they’re not unusual.

According to VanEck, gold often behaves this way during periods of geopolitical stress:

Gold’s March performance surprised many investors. Despite a sharp escalation in geopolitical tensions, gold prices pulled back after briefly retesting record highs. That kind of price action may seem counterintuitive, but it is not unusual in periods of crisis.

In other words, short-term volatility doesn’t necessarily break the long-term trend. Once markets settle, the same drivers that helped push gold to record levels — including macro uncertainty and demand for safe-haven assets — are still firmly in place.

Evolution will be one of the ASX gold stocks to take advantage of that.

Record cash flow highlights operational strength

Evolution Mining isn’t just riding the gold price. The ASX gold stock is also executing well operationally.

Its latest quarterly update delivered record cash flow, underscoring the strength of its asset base and cost discipline. Strong cash generation gives the company flexibility to reinvest, reduce debt, and return capital to shareholders.

That kind of financial performance can help support the share price even when the commodity cycle turns volatile.

Solid upside plus income

Morgans just upgraded the ASX gold stock from hold to accumulate. The brokers believes that the recent weakness across the gold sector “has uncovered value in a high-quality name”. Morgans did trim its 12-month target from $17.16 to $16.10, suggesting a 20% upside at current levels.

Bell Potter also remains positive on the outlook. It has retained a buy rating on the ASX 200 gold stock, with a slightly reduced price target of $16.45.

And there’s more. The broker is also forecasting a 3.5% dividend yield, lifting the total potential return to over 25%. For investors looking for both growth and income, that’s an appealing combination.

Foolish Takeaway

ASX gold stocks may have cooled in recent weeks, but the long-term thesis hasn’t disappeared.

With strong cash flow, supportive macro drivers, and broker-backed upside, Evolution Mining could be worth a closer look this April.

The post 3 reasons to buy this ASX gold stock in April appeared first on The Motley Fool Australia.

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

Warren Buffett is widely regarded as one of the greatest investors of all time and following in his footsteps is highly recommended.

But if you are investing on the ASX, there is one obvious challenge. Buffett does not invest here, and we do not know which Australian shares he would choose.

That said, we do know how he thinks.

And that gives us a useful framework for building a Buffett-inspired portfolio using ASX shares.

Strong competitive advantages

One of Buffett’s core principles is investing in companies with durable competitive advantages, often referred to as economic moats.

These are businesses that are difficult for competitors to replicate. This might be due to brand strength, scale, intellectual property, or deep integration into customer operations.

On the ASX, examples could include companies like CSL Ltd (ASX: CSL), which benefits from its global scale and complex plasma network, or REA Group Ltd (ASX: REA), which dominates online real estate listings in Australia.

These types of businesses are often able to maintain pricing power and deliver consistent returns over time.

Look for consistent earnings and strong returns

Warren Buffett has always preferred companies that generate reliable profits.

Rather than chasing speculative growth, he looks for businesses that can steadily grow earnings year after year. High returns on capital and strong cash flow are often key indicators.

ASX companies like Cochlear Ltd (ASX: COH) and ResMed Inc (ASX: RMD) fit this mould, with established products, global demand, and recurring revenue streams.

The goal is to own businesses that perform well across different economic conditions.

Keep it simple and understandable

Another hallmark of Buffett’s approach is simplicity.

He invests in businesses he understands. This often means avoiding overly complex or speculative industries.

For ASX investors, this could translate to focusing on companies with clear business models and predictable revenue streams.

Retailers, healthcare companies, and infrastructure businesses can often be easier to understand than highly speculative sectors.

This might mean Woolworths Group Ltd (ASX: WOW), APA Group (ASX: APA), and Wesfarmers Ltd (ASX: WES).

Think long term

Warren Buffett is famous for his long-term mindset.

He has often said his favourite holding period is “forever.” This reflects his belief in owning great businesses and allowing compounding to do the work.

A Buffett-inspired ASX share portfolio should be built with a similar mindset. Instead of reacting to short-term market movements, the focus should be on holding quality companies for many years.

Avoid overpaying

Even the best business is not a good investment at the wrong price.

Buffett looks for opportunities to buy high-quality companies at reasonable valuations. This often means being patient and waiting for periods of market weakness.

For ASX share investors, this could involve building a watchlist and being ready to act when quality shares fall out of favour.

Foolish takeaway

We may never know exactly which ASX shares Buffett would buy.

But by focusing on competitive advantages, consistent earnings, simplicity, and long-term thinking, investors can build a portfolio that reflects his philosophy.

It is about applying the principles that made him successful to our own portfolios.

The post How to build a Warren Buffett-inspired ASX share portfolio appeared first on The Motley Fool Australia.

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• How to build massive wealth with ASX shares
• Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today
• If I had $5,000 to invest in ASX 200 shares today, here’s what I’d buy
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Motley Fool contributor James Mickleboro has positions in CSL, Cochlear, REA Group, ResMed, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, ResMed, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, and Woolworths Group. The Motley Fool Australia has recommended CSL, Cochlear, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This ASX car stock has been on the move.

Shares in Eagers Automotive Ltd (ASX: APE) have climbed roughly 13% over the past month. That’s helped narrow its loss for 2026 to around 3%. Zoom out, however, and the picture looks far stronger, as the ASX auto stock is still up about 36% over the past 12 months.

So what’s going on? One driver could be the global fuel crunch and the knock-on effect it’s having on electric vehicle demand.

Exposure to fast-growing EV brand

Eagers is the largest automotive retail group in Australia. The company owns and operates a large network of new and used motor vehicle dealerships across Australia and New Zealand.

A big driver of Eagers’ success has been electric vehicles, particularly BYD. The ASX car stock has been one of the standout performers in the consumer discretionary sector and now operates roughly 80% of BYD dealerships in Australia. That gives it unmatched exposure to one of the fastest-growing EV brands in the country.

Petrol prices push Aussies into EVs

At first glance, the fuel crunch might not seem directly relevant to the rising price of the ASX car stock. After all, Eagers isn’t an EV manufacturer. But dig a little deeper, and the link becomes clearer.

Rising petrol prices are pushing more Australians to consider electric vehicles. That shift is accelerating demand for brands like BYD, which has been rapidly gaining traction locally. Importantly, Eagers has exposure to EV sales through its broad dealership network, giving it a front-row seat to this transition.

More customers walking into dealerships to enquire about EVs can translate into higher sales activity. Even if buyers are simply switching from petrol cars to electric models, increased showroom traffic tends to support volumes and sometimes margins too.

And margins matter. When demand outstrips supply, as is currently the case for some EV models, dealers often have greater pricing power. That can reduce the need for discounting and support profitability across new vehicle sales.

Shift in buying behaviour

But before investors get too carried away, it’s worth keeping a few caveats in mind.

First, this is largely a shift in buying behaviour rather than a guaranteed surge in total car sales. If consumers are simply swapping petrol vehicles for EVs, the overall volume uplift may be limited.

Second, supply constraints remain a real issue. Strong demand for EVs, including models from BYD, has led to longer wait times. That can delay deliveries and push revenue recognition further out, muting near-term earnings momentum.

Finally, the $7 billion ASX car stock is still a cyclical business. Interest rates, consumer confidence, and access to finance all play a major role in car-buying decisions. Those macro factors can easily outweigh any thematic boost from EV adoption.

Foolish Takeaway

The fuel crisis appears to be providing a helpful tailwind for the ASX car stock by accelerating interest in electric vehicles. But it’s not a simple case of “EV demand up, share price up”.

For investors, this remains a broad play on automotive demand — with EVs adding an extra layer of momentum rather than defining the entire story.

The post Why fuel prices could be quietly powering this ASX car stock higher appeared first on The Motley Fool Australia.

More reading

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• Why this ASX giant’s shares just hit the accelerator today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BYD Company. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech shares are roaring back to life.

After a brutal 6 months, the largest names on the ASX tech scene have staged a sharp rebound over the past five trading days. Investors are piling back into the sector, and the turnaround has been fast.

Let’s take a closer look how each ASX tech share fared.

WiseTech Global Ltd (ASX: WTC)

Leading the charge is WiseTech, which has surged an eye-catching 26% in just a week. That’s a major reversal for an ASX tech share still down 33% year to date.

The company’s CargoWise platform remains deeply embedded in global logistics networks, giving it strong recurring revenue and pricing power. However, expectations are high, and any slowdown in global trade or earnings growth could quickly pressure the share price again.

Xero Ltd (ASX: XRO)

This ASX tech share has also bounced strongly, climbing 16% over the past five days, though it remains down 28% in 2025.

The cloud accounting leader continues to grow its global subscriber base, particularly in key offshore markets. Its long-term growth story is intact, but investors are still watching closely for improvements in profitability and margins.

Megaport Ltd (ASX: MP1)

One of the biggest movers has been Megaport, which has jumped 28% in a matter of days, despite being down 30% year to date.

The company is benefiting from structural demand as more businesses shift to cloud-based infrastructure. Still, this ASX tech share remains a volatile name, and sentiment can swing quickly if execution falls short.

NextDC Ltd (ASX: NXT)

Meanwhile, NextDC is in a different position altogether. Its shares have risen 11% over the past week and are now up 12% for the year.

The data centre operator sits at the heart of powerful trends including artificial intelligence and cloud computing. That demand is driving growth, though its capital-intensive expansion plans mean investors must keep an eye on costs and project execution.

TechnologyOne Ltd (ASX: TNE)

Rounding out the group is TechnologyOne, which has climbed 13% in five days and is now up 11% year to date.

The ASX tech share has been one of the steadiest performers in the sector, supported by its successful transition to a software-as-a-service model. Its consistency is a strength, although any slowdown in contract wins or enterprise spending could temper momentum.

Foolish Takeaway

The sharp rebound across these names highlights just how quickly sentiment can shift in the tech sector. While some of these ASX tech stocks are still well below their earlier highs, the recent surge suggests investors are once again willing to back growth.

Whether this rally has staying power will likely depend on earnings delivery and broader market conditions, but for now, ASX tech is firmly back in the spotlight.

The post The tech rally is back: here are 5 ASX shares leading the charge appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.