Tag: Stock pick

The Pro Medicus Ltd (ASX: PME) share price is in focus today after the company signed a new five-year, $23 million contract with the University of Maryland Medical System, with its Visage 7 cloud platform to be rolled out across the network.

What did Pro Medicus report?

• Signed a five-year, $23 million contract with the University of Maryland Medical System (UMMS)
• Contract covers Visage 7 Viewer and Visage 7 Workflow solutions
• Full implementation to be delivered through a cloud-based platform
• Contract uses a transaction-based licensing model, with potential for increased revenue

What else do investors need to know?

The UMMS partnership extends Pro Medicus’ reach across multiple prominent health sites in Maryland, including major hospitals and trauma centres. This adds to a growing client list for the company’s cloud-based imaging solutions, especially in the North American market.

Implementation of the Visage 7 platform will start immediately, with the target for completion and go-live set for early 2027. The transaction-based model could offer upside for Pro Medicus if usage volumes increase over the contract term.

What’s next for Pro Medicus?

With the UMMS rollout planned for early 2027, Pro Medicus will deliver and implement its Visage 7 imaging platform across an extensive network, supporting radiologist efficiency and specialist workflows. Management has highlighted a strong pipeline spanning all market segments.

As cloud-based imaging becomes more widely adopted in healthcare, Pro Medicus aims to remain a leader in providing scalable and efficient solutions for clients in Australia, North America, and beyond.

Pro Medicus share price snapshot

Over the past 12 months, Pro Medicus shares have declined 35%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Pro Medicus announces $23m US contract appeared first on The Motley Fool Australia.

More reading

• DroneShield posts record revenue and unveils leadership changes
• Magellan Financial Group posts March 2026 AUM drop
• Regis Resources posts strong Q3 cash build and gold production
• Flight Centre Travel Group sells Pedal Group stake for $61.7 million
• Greatland Resources posts March quarter update

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend share space has seen its fair share of volatility over the last few weeks, so this could be the right time to invest. They’re much more appealing to me than a term deposit for a few different reasons.

The recent jump in inflation is certainly leading to expectations of a rise in interest rates. The prospects are good for Aussies interested in term deposits.

However, despite that, I think it’s an even better time to look at ASX dividend shares.

I’m expecting inflation to reduce in the future back to a more normal a level, even if that takes a while, which could mean the lower share prices (and higher yield) today are worth jumping on whilst they’re still available.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

One of the main reasons why I prefer ASX dividend shares over term deposits is because of the organic growth that businesses can deliver.

Companies have the ability to grow their earnings over time, meaning that they can deliver growing dividend payments (offsetting inflation) and achieve capital growth.

I think Soul Patts is one of the best examples of this because the business has increased its dividend each year for the past 28 years in a row. There is no other company on the ASX with that history of dividend increases.

The only organic way a term deposit delivers any material income growth is when the RBA cash rate goes up. But interest rates can go down too, as we saw in 2025, hurting the interest rate on offer.

Dividend growth is not guaranteed, but I like the odds of this ASX dividend share hiking its payout this year and next year.

It has been able to deliver such consistent growth because of how it operates. It’s an investment conglomerate that owns a portfolio of ASX shares, international shares, private businesses, property and credit.

The company has deliberately built its asset base to be defensive and provide resilient cash flow, while also having growth potential. As it receives its portfolio’s investment cash flow (mainly dividends), it enables Soul Patts to pay a higher dividend each year and retain a minority of that money to reinvest in more opportunities.

It currently has a grossed-up dividend yield of 3.6%, including franking credits. The somewhat low yield is partly a function of it having a very sustainable dividend payout ratio.

WCM Global Growth Ltd (ASX: WQG)

For investors looking for an ASX dividend share that can provide a stronger yield than a term deposit, I’d definitely look at this option.

It’s a listed investment company (LIC) – its job is to invest in other shares on behalf of shareholders to generate good investment returns.

The LIC looks across the globe for opportunities, so it’s a great option for Australians looking for diversification. Its ideas come from across the world, including the Americas, Europe and Asia, as well as various sectors.

WCM Global Growth wants to find businesses with expanding economic moats (or improving competitive advantages) and these businesses must have a culture that supports a strengthening of the competitive advantages.

As a LIC, the business is able to decide on the level of dividends it wants to pay to shareholders. The ASX dividend share has been steadily increasing its payout over the last several years and it has guided that its quarterly dividend will continue rising each quarter over the next year.

The LIC’s guidance for the next four dividends to be declared comes to a grossed-up dividend yield of 7.7%, including franking credits, at the time of writing. I expect the payout will continue rising for the foreseeable future.

The post Forget term deposits! I’d buy these ASX dividend shares instead! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited and Wcm Global Growth. 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.

The DroneShield Ltd (ASX: DRO) share price is in focus after the company announced record quarterly revenue of $63 million and all-time high customer cash receipts of $77 million for the March quarter, reflecting strong growth momentum.

What did DroneShield report?

• Quarterly revenue of $63 million for Q1 FY26, up 87% year-on-year
• All-time record customer cash receipts of $77 million in Q1 FY26, up 361% year-on-year
• Total committed revenue for FY26 to date stands at $140 million
• FY25 revenue was $216.5 million, rising 276% from FY24
• Underlying profit before tax (FY25): $33.3 million; net cash from operations: $15.9 million

What else do investors need to know?

DroneShield announced a significant leadership transition, with long-serving CEO Oleg Vornik stepping down after more than a decade, and Chairman Peter James retiring from the board. Angus Bean, previously Chief Product Officer, has started as the new Managing Director and CEO, bringing deep knowledge of the business having helped build DroneShield’s core technologies and engineering team.

Hamish McLennan will join as Independent Non-Executive Director and Chairman-Elect from 1 May 2026, taking over as Chairman after the upcoming AGM. The board emphasised that strengthening governance and supporting further growth are key priorities amid robust demand for counter-drone technology.

What’s next for DroneShield?

DroneShield is focused on capitalising on the global growth in demand for counter‑drone solutions. The board transition – including fresh leadership for both CEO and Chairman – is intended to maintain the company’s growth trajectory and bolster operational maturity as it scales further in Australia and overseas.

The company’s strong order pipeline and emphasis on technology innovation position it well for FY26 and beyond. Investors can expect further updates at the company’s AGM and with future trading updates.

DroneShield share price snapshot

Over the past 12 months, Droneshield shares have risen 353%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post DroneShield posts record revenue and unveils leadership changes appeared first on The Motley Fool Australia.

More reading

• Pro Medicus announces $23m US contract
• Magellan Financial Group posts March 2026 AUM drop
• Regis Resources posts strong Q3 cash build and gold production
• Flight Centre Travel Group sells Pedal Group stake for $61.7 million
• Greatland Resources posts March quarter update

Motley Fool contributor Laura Stewart 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 and is short shares of 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Magellan Financial Group Ltd (ASX: MFG) share price is in focus after reporting total assets under management (AUM) dropped to $37.5 billion as at 31 March 2026, down from $39.9 billion at the end of 2025.

What did Magellan Financial Group report?

• Total AUM fell to $37.5 billion, down $2.4 billion for the March quarter
• Retail AUM declined from $15.8 billion to $14.1 billion
• Institutional AUM slipped to $23.4 billion, down from $24.1 billion
• Net outflows totalled $1.0 billion for the quarter
• Negative market movements and other factors further reduced AUM by $1.4 billion

What else do investors need to know?

The drop in AUM across both retail and institutional segments reflects ongoing industry headwinds and softer investor sentiment. Magellan’s Magellan Global Equities and Airlie Australian Equities funds both saw asset reductions this quarter, while Magellan Global Listed Infrastructure held up slightly better.

There was some offset from Vinva Global and Australian Equities, which actually recorded positive net flows within the retail category. However, these gains weren’t enough to counter the wider outflows and negative market performance.

What’s next for Magellan Financial Group?

Magellan will be focusing on stabilising and rebuilding confidence in its investment strategies, especially within its core equities funds. The business may look to enhance client engagement and refine its product line-up to better suit changing investor needs.

While restoring growth in AUM will likely remain a key challenge, Magellan’s leadership appears committed to navigating the current market volatility and exploring opportunities to strengthen its competitive position.

Magellan Financial Group share price snapshot

Over the past 12 months, Magellan Financial Group shares have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Magellan Financial Group posts March 2026 AUM drop appeared first on The Motley Fool Australia.

More reading

• Pro Medicus announces $23m US contract
• DroneShield posts record revenue and unveils leadership changes
• Regis Resources posts strong Q3 cash build and gold production
• Flight Centre Travel Group sells Pedal Group stake for $61.7 million
• Greatland Resources posts March quarter update

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Regis Resources Ltd (ASX: RRL) share price is in focus after the company revealed a quarterly cash and bullion balance of $1.128 billion and group gold production of 90,600 ounces for the March quarter.

What did Regis Resources report?

• Quarterly group gold production: 90,600 ounces (FY26 to date: 277,500 ounces).
• Cash and bullion build during the quarter: $198 million.
• Cash and bullion balance at 31 March 2026: $1.128 billion.
• FY26 gold production guidance: 350,000–380,000 ounces.
• Tax payment made in February for FY25: $92 million.

What else do investors need to know?

Regis Resources advised there has been no interruption to its fuel supplies so far, despite wider uncertainty around Australia’s fuel stability. The company has committed supply contracts with major importers and is actively monitoring its consumption and fuel supply chain.

All-In Sustaining Cost figures and further operational commentary will be provided with the full March quarterly results, due for release on 23 April 2026. An investor webcast and conference call are scheduled for the same day.

What’s next for Regis Resources?

Investors can expect a more detailed operational and financial update when Regis Resources releases its full March quarter report. The company continues to monitor market conditions and will update guidance if material impacts to costs or capital spending arise.

No changes to the company’s gold production or cost guidance have been flagged at this stage. Regis remains committed to operational stability and prudent financial management.

Regis Resources share price snapshot

Over the past 12 months, Regis Resources shares have risen 62%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Regis Resources posts strong Q3 cash build and gold production appeared first on The Motley Fool Australia.

More reading

• Pro Medicus announces $23m US contract
• DroneShield posts record revenue and unveils leadership changes
• Magellan Financial Group posts March 2026 AUM drop
• Flight Centre Travel Group sells Pedal Group stake for $61.7 million
• Greatland Resources posts March quarter update

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Today’s Flight Centre Travel Group Ltd (ASX: FLT) share price news is headlined by a binding deal to sell its 47% Pedal Group stake for $61.7 million, with the transaction unanimously backed by independent directors and an expected accounting gain of around $15 million.

What did Flight Centre Travel Group report?

• Signed a binding agreement to sell its 47% stake in Pedal Group for $61.7 million
• Divestment to the Turner Collective, a consortium linked to co-founder Graham Turner
• One-off accounting gain of about $15 million expected on completion
• No cash tax is anticipated due to existing losses offsetting the gain
• Shareholder vote scheduled for 14 May 2026 with completion expected soon after

What else do investors need to know?

This sale is part of Flight Centre’s ongoing strategy to focus on its core travel businesses and streamline its portfolio. The company has recently exited other non-core assets, including Cross Hotels and Resorts, to sharpen growth in key segments such as cruises and meetings.

The deal is subject to shareholder approval, as required under ASX rules, and an independent expert has deemed the terms fair and reasonable. The group expects no significant regulatory headwinds and aims to complete the sale by mid-May.

What did Flight Centre Travel Group management say?

Non-Executive Chairman Gary Smith said:

Pedal is a strong business with a loyal and engaged customer base, and we are proud of what has been built through the joint venture. We believe the Turner Collective is well placed to support Pedal’s next phase of growth. This divestment follows the sale of our Cross Hotels and Resorts business and reflects FLT’s disciplined approach to capital allocation and portfolio simplification. The transaction crystallises a strong return on our investment and enhances our capacity to invest in our core global travel businesses and future growth initiatives.

What’s next for Flight Centre Travel Group?

Flight Centre shareholders (excluding Graham Turner’s interests) will vote on the proposal at an Extraordinary General Meeting slated for 14 May 2026. If approved, the capital realised will be used to further invest in its global travel operations and growth strategies.

Looking ahead, management remains focussed on maximising value from its core travel businesses while continuing to assess its investment portfolio for further simplification and enhanced shareholder returns.

Flight Centre Travel Group share price snapshot

Over the past 12 months, Flight Centre shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Flight Centre Travel Group sells Pedal Group stake for $61.7 million appeared first on The Motley Fool Australia.

More reading

• Pro Medicus announces $23m US contract
• DroneShield posts record revenue and unveils leadership changes
• Magellan Financial Group posts March 2026 AUM drop
• Regis Resources posts strong Q3 cash build and gold production
• Greatland Resources posts March quarter update

Motley Fool contributor Laura Stewart 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Greatland Resources Ltd (ASX: GGP) share price is in focus today after the company announced March quarter gold production of 82,723 ounces and cash reserves jumping $260 million to $1,208 million.

What did Greatland Resources report?

• Produced 82,723 ounces of gold and 4,128 tonnes of copper during the March 2026 quarter
• Year-to-date FY2026 output reached 249,887 ounces of gold and 11,022 tonnes of copper
• Sales for the quarter were 97,800 ounces of gold and 4,620 tonnes of copper
• Cash balance of $1,208 million as at 31 March 2026, up from $948 million at 31 December 2025
• No debt and $73 million in tax payments for the previous year

What else do investors need to know?

Greatland built its cash reserves strongly, ending the quarter with over $1.2 billion even after capital expenditure and tax payments. The company will start making regular tax instalments from April 2026.

Management noted that, despite tensions in the Middle East, Telfer operations have not been impacted by diesel disruptions, thanks to secure contracts and alternative energy sources. The site also holds over 12 months of mill feed in surface stockpiles at quarter-end. Greatland maintains exposure to high gold prices while partially protecting against downside risks using gold put options.

What’s next for Greatland Resources?

Greatland expects FY26 gold production to be at or slightly above the top end of its guidance range (260,000–310,000 ounces). Investors can expect further detail in the full March 2026 Quarterly Activities Report to be released later in April, with a management webcast planned for the same day.

The company continues to monitor global challenges while relying on long-term supply contracts and significant on-site reserves to underpin output through the year.

Greatland Resources share price snapshot

Over the past 12 months, Greatland Resources shares have risen 83%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Greatland Resources posts March quarter update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX share market has taken a step back in recent months.

That has been enough to shake confidence in parts of the market. Headlines have turned more cautious, and it is easy to focus on what could go wrong next.

But I think periods like this are worth looking at differently.

For long-term investors, pullbacks can create the conditions for building wealth.

Lower ASX share prices change the equation

When share prices fall, future return potential improves. 

That is a simple idea, but an important one.

A number of quality ASX shares are now trading well below their recent highs. Businesses like CSL Ltd (ASX: CSL), James Hardie Industries PLC (ASX: JHX), and Cochlear Ltd (ASX: COH) have seen significant declines, even though their long-term growth drivers remain in place.

That does not mean they will rebound immediately.

But starting from a lower entry point can make a big difference over time.

Short-term concerns are driving sentiment

There are clear reasons behind the recent selloff.

Rising oil prices, driven by tensions in the Middle East, have increased concerns about inflation and interest rates. At the same time, ongoing debates around artificial intelligence are creating uncertainty in parts of the technology sector.

These are real factors.

But markets tend to react quickly to uncertainty, sometimes more quickly than the underlying fundamentals change.

In many cases, I think what we are seeing is sentiment adjusting faster than business performance.

This is how long-term returns are built

Looking back, some of the best investment periods have followed market weakness.

The COVID-19 selloff in 2020 is a good example. Investors who were willing to buy during that period were often rewarded as markets recovered.

I am not suggesting that every downturn plays out the same way.

But I do think the principle holds.

Buying quality ASX shares when prices are lower can improve long-term outcomes, particularly if you remain invested and allow compounding to work.

Staying consistent matters more than timing

Trying to pick the exact bottom is extremely difficult. It usually becomes obvious only after the fact.

That is why I prefer a more consistent approach.

Adding to investments during periods of weakness, rather than waiting for perfect conditions, can help build positions over time without relying on a single decision.

Focus on quality

Not every ASX share that falls is an opportunity. Some declines reflect real challenges.

That is why I think it is important to focus on quality.

Businesses with strong balance sheets, competitive advantages, and clear growth drivers are more likely to recover and continue compounding over time.

For me, that is where the real opportunity lies during a selloff.

Foolish takeaway

The recent ASX share market selloff may feel uncomfortable, but I think it also creates opportunity.

Lower prices can improve long-term return potential, especially when applied to high-quality businesses.

There will always be uncertainty in markets.

But for investors with a long-term mindset, periods like this can be some of the most important times to stick with it and continue building positions.

The post Why the recent ASX share market selloff is a wealth-building opportunity appeared first on The Motley Fool Australia.

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• 2 classy ASX healthcare stocks to buy before the next market surge
• New to investing? 3 ASX ETFs to set and forget for 10 years
• ASX 200 sector leaders to buy amid today’s market rally
• What’s the impact of US tariffs on Aussie drugmakers CSL and Mayne Pharma?
• Buy, hold, sell: CSL, QBE, and Pro Medicus shares

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This $11 billion ASX steel stock is on the move again.

Shares in BlueScope Steel Ltd (ASX: BSL) jumped 3.8% to $27.07 on Tuesday and is now up an impressive 42% over the past 12 months. But it hasn’t been a smooth climb. The share price has behaved more like a yo-yo, swinging on sentiment and headlines.

While other materials stocks also pushed higher on Tuesday, one key driver keeps popping up: takeover tension.

So, what’s going on?

Let’s rewind. Back in February, BlueScope received a “best and final” takeover offer from SGH Ltd (ASX: SGH) and its US counterpart Steel Dynamics Inc worth around $32.35 per share. That followed an earlier bid in January. The board of the ASX steel stock rejected both offers, arguing that the proposals undervalued the business.

Still, the interest hasn’t gone away. The market knows bidders are circling and that’s enough to keep speculation alive. Investors are now watching closely for a sweetened offer or a new player entering the mix.

Unlocking hidden value

That’s the takeover angle. But there’s more to the story.

BlueScope is also working to unlock hidden value internally. The company has been actively selling surplus land across New South Wales and Victoria, building a pipeline of development projects. These assets could generate additional earnings streams beyond its core steel operations.

In other words, there’s value here for the ASX steel stock that isn’t fully reflected in the steel business alone.

Improving resilience

Operationally, the company looks stronger too.

Management has improved resilience compared to past cycles, with tighter cost control, a better product mix, and a focus on higher-margin steel products. That’s helping smooth out earnings volatility — a big win in a notoriously cyclical industry.

And the numbers back it up.

In its latest half-year result, BlueScope reported a 4% lift in sales revenue to $8.22 billion. Even more impressive, net profit after tax surged 118% to $390.8 million for the six months to 31 December 2025.

That’s a serious earnings rebound.

Trade uncertainty, currency risk

But let’s not ignore the risks for the ASX steel stock.

Steel is a cyclical business, heavily tied to global growth. If construction or manufacturing slows, demand — and margins — can fall quickly.

There’s also exposure to global markets, particularly North America and Asia, which introduces currency swings and trade uncertainty.

And then there’s the ESG challenge.

Steelmaking is energy-intensive, and environmental regulations are tightening. While BlueScope is investing in decarbonisation, transitioning legacy operations won’t be cheap or easy.

The bottom line

BlueScope shares are being pulled in two directions — strong fundamentals on one side, takeover speculation on the other.

If a higher bid emerges, the upside could come quickly. If not, investors are still left with a more resilient, better-run steel business.

Either way, this is one ASX stock that’s unlikely to stay quiet for long.

The post Is takeover tension sending this ASX steel stock soaring? appeared first on The Motley Fool Australia.

More reading

• This ASX steel stock is unlocking hidden value. So why is it falling 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are always interesting ASX shares to consider. Sometimes, an analyst may call a business a buy. A few businesses have multiple experts rating them as an opportunity, which could be a clear signal that they’re appealing ideas to invest in.

The two ASX shares I’m going to highlight are among the most highly-rated businesses in Australia and they both may be capable of producing very pleasing shareholder returns.

Of course, these are just analysts’ predictions, not guarantees of how things will play out.

Zip Co Ltd (ASX: ZIP)

Zip is one of the largest buy now, pay later businesses in Australia and the US.

According to CMC Invest, there have been six recent ratings on the business, with all of those being a buy.

The business could deliver significant capital growth according to the price targets. A price target is where analysts think the share price could be in a year from the time of the investment call.

According to CMC Invest, the average price target on Zip is $3.84, suggesting a potential rise of around 130% over the next year. The most optimistic price target is $4.50, suggesting a possible rise of approximately 170%, while the lowest price target is $2.60, implying a rise of more than 50%.

Of course, it’s not common for a particular business to rise more than 50% in a year, so a rise of over 100% would be very impressive.

The ASX share’s FY26 first-half result was impressive. Total income grew 29.2% to $664 million, operating profit (cash EBITDA) jumped 85.6% to $124.3 million and active customers rose 4.1% to 6.6 million.

However, net bad debts increased to 1.7% of total transaction value (TTV), up from 1.6% of TTV in the first half of FY25.

Most importantly, the business is expecting ongoing strength growth in the US. In FY26, the company expects to report US TTV growth of more than 40% in USD dollar terms, balancing profitability and credit loss performance. The US TTV in January 2026 grew by more than 40% year-over-year.

According to CMC Invest, the business is valued at around 20x FY26’s estimated earnings.

Baby Bunting Group Ltd (ASX: BBN)

Another ASX share that’s currently liked by analysts is Baby Bunting, a retailer of various baby and toddler items like prams, beds, clothing, toys and so on.

According to CMC Invest, in the last three months, there have been four buy ratings on the business and two holds.

The average price target of those ratings is $3.18, suggesting a possible rise of more than 130% for the ASX share.

The most optimistic price target is $4.20, suggesting a potential increase of around 210%, while the lowest estimate is $2.60, which implies a possible rise of more than 90%.

In the FY26 half-year result, the business was able to report a number of positives.

Total sales increased by 6.7% year-over-year to $271.4 million, with comparable store sales growth of 4.7%. Excitingly, its ‘store of the future’ refurbishment program unlocked a 25% sales increase, which was the top end of its guidance range of between 15% to 25%.

Pleasingly, the company said that second half sales momentum continued in the first seven weeks with comparable sales growth of 6.7%.

The projection on CMC Invest suggests the business could generate earnings per share (EPS) of 12.8 cents in FY26, putting the current valuation at under 11x FY26’s estimated earnings.

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

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