Tag: Stock pick

The Champion Iron Ltd (ASX: CIA) share price is in focus after the company announced a cash tender offer to acquire Norwegian iron ore producer Rana Gruber for NOK 2,930 million (about US$289 million). The transaction is backed by financial commitments from La Caisse and Scotiabank, with 51% of Rana Gruber shareholders pre-accepting the offer.

What did Champion Iron report?

• Entered a conditional agreement to acquire 100% of Rana Gruber ASA at NOK 79 per share
• Transaction valued at approximately NOK 2,930 million (US$289 million)
• Financing includes a US$100 million private placement from La Caisse and a US$150 million term loan from Scotiabank
• Rana Gruber generated NOK 333.5 million (US$32.9 million) profit and NOK 592.3 million (US$58.4 million) EBITDA in the trailing four quarters
• Champion to fund acquisition through equity, debt, and existing cash
• Expected near-term accretive impact for Champion Iron shareholders

What else do investors need to know?

The deal brings a long-life asset in Norway to Champion Iron’s portfolio, expanding its high-grade iron ore offering and enhancing product and customer diversification, particularly in Europe. The production upgrade at Rana Gruber to 65% Fe iron ore concentrate positions both companies to target the green steel supply chain.

Champion expects to maintain its financial leverage ratios at closing, with all financing structured to avoid material impact on its balance sheet. Rana Gruber’s management will stay with the company, supporting a smooth transition and local community ties.

Regulatory approval is needed before the deal officially launches, with completion expected in the second quarter of 2026. Key shareholders and the board of Rana Gruber have recommended the offer.

What’s next for Champion Iron?

Champion will now move through the regulatory process, seeking approval of the offer document, with the acceptance period likely starting in late January 2026. If all goes to plan, Champion expects to complete the takeover by the second quarter of the 2026 calendar year.

The acquisition will add Rana Gruber’s high-grade and specialty iron ore output and European customer base to Champion’s operations, potentially setting up the company for long-term growth in the decarbonising steel sector. Champion will also continue developing its Canadian iron ore assets and pursue organic growth projects.

Champion Iron share price snapshot

Over the pas 12 months, Champion Iron shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Champion Iron launches $289m Rana Gruber takeover: what shareholders need to know appeared first on The Motley Fool Australia.

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• Aurizon lodges new 10-year network access undertaking with QCA
• Stockland announces estimated 1H26 distribution
• NEXTDC lifts contracted utilisation and order book in December update
• Telix Pharmaceuticals in focus with China trial success and FDA updates
• Monadelphous wins $250m Rio Tinto contract: What it means for shareholders

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 Electro Optic Systems Ltd (ASX: EOS) share price jumped sharply late last week, closing at $8.49 after rising almost 17% in a single session. The move followed two announcements, but I don’t think the market’s reaction was just about what was released.

EOS has moved into a very different phase of its development. The business is no longer defined by one-off contract wins or early-stage potential. It now carries a growing order book and a deep pipeline of active opportunities.

If even part of that pipeline converts, the scale of future contracts could materially exceed what EOS has delivered in the past.

The backlog is growing, but the pipeline is the real story

EOS already has a sizeable order book that is expected to convert into revenue through 2026 and 2027. That alone gives the business far more visibility than it had even a year ago.

But what makes the current setup so interesting is the depth of work progressing behind the scenes.

The company’s latest market development update outlines a wide range of opportunities moving through various stages, from early discussions to advanced negotiations.

It’s important to note that in defence, this is exactly how large programs evolve. They move gradually from demonstrations to evaluations to conditional agreements and finally to signed orders. And EOS now has meaningful exposure at every stage of that process.

Multiple paths to growth across regions and products

One of the biggest changes in the EOS story is diversification. The business is no longer reliant on a single product or geography.

Across Australia, EOS is involved in LAND programs that could translate into multi-year domestic revenue. In the Middle East, follow-on orders and sustainment work are being discussed with existing customers, some with potential contract sizes running into the hundreds of millions.

In Europe and North America, EOS is pushing deeper into vehicle protection, counter-drone systems, and remote weapon stations. Several R400 and R800 opportunities are linked to massive fleet upgrade numbers (+4,000).

Why the laser opportunity could change the scale of EOS

One area that continues to stand out is high-energy laser weapons.

EOS is the only company in the world with a deployable, field-tested laser weapon system that is cleared for export. Management has outlined multiple laser opportunities in the 100kW range across Asia, Europe, and North America.

Some of these programs involve initial evaluation units, while others relate to customers’ re-scoping requirements following real-world testing. Importantly, several of these opportunities carry potential deal sizes in the tens or hundreds of millions, with scope to scale well beyond initial orders if performance milestones are met.

Counter-drone demand isn’t slowing down

Away from lasers, EOS’ core counter-drone business continues to gain momentum.

The key change over the past year has been urgency. Counter-drone capability has shifted from future planning to immediate procurement, particularly in Europe, where initiatives like the “Drone Wall” are driving faster funding decisions.

EOS is well-positioned in this environment, with proven ‘hard-kill’ systems already deployed globally. When procurement timelines tighten, platforms already in service tend to move fastest. These programs also rarely end at delivery, with follow-on orders, upgrades, and sustainment work typically flowing over time.

My take

The recent share price move has been sharp, but in my view, it still understates the opportunity ahead.

With a growing backlog and a diversified pipeline, EOS is entering a new phase of growth. If even part of the pipeline converts, 2026 could be a defining year, and I think EOS trading below $10 may soon be a thing of the past.

The post What’s next on the horizon for EOS? Why I think 2026 could be massive appeared first on The Motley Fool Australia.

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• By December 2026, $1,000 invested in EOS shares could be worth…

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

The NEXTDC Ltd (ASX: NXT) share price is in focus today after the company reported strong progress on its contracted utilisation, jumping 30% to reach 412MW following new customer wins. NEXTDC’s pro-forma forward order book also grew significantly, now totalling 301MW.

What did NEXTDC report?

• Contracted utilisation rose by 96MW (30%) to 412MW since 1 December 2025
• Pro-forma forward order book increased to 301MW
• FY26 net revenue, underlying EBITDA and capex guidance remain unchanged
• Forward order book expected to convert into revenue and EBITDA between FY26 and FY29

What else do investors need to know?

NEXTDC’s latest customer contract wins highlight strong demand for its data centre services, underpinning long-term growth potential across Australia and Asia. The company’s expanding forward order book is set to progressively boost billings and revenue streams over several years.

NEXTDC continues to focus on operational excellence and sustainable growth, with its Tier IV certified data centres recognised internationally for efficiency and reliability. Its business remains carbon neutral and at the forefront of energy efficiency in the sector.

What’s next for NEXTDC?

NEXTDC’s unchanged FY26 financial guidance suggests confidence in its growth trajectory, despite a rapidly growing pipeline. With sizeable contracted utilisation and a substantial forward order book, management expects ongoing conversion of these commitments into tangible revenue and earnings over FY26 to FY29.

The company is likely to keep investing in new capacity, innovation, and sustainability as it powers the ever-increasing demand for cloud connectivity and IT infrastructure across the region.

NEXTDC share price snapshot

Over the past 12 months, NextDC shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post NEXTDC lifts contracted utilisation and order book in December update appeared first on The Motley Fool Australia.

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• Aurizon lodges new 10-year network access undertaking with QCA
• Stockland announces estimated 1H26 distribution
• Champion Iron launches $289m Rana Gruber takeover: what shareholders need to know
• Telix Pharmaceuticals in focus with China trial success and FDA updates
• Monadelphous wins $250m Rio Tinto contract: What it means for shareholders

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.

It is fair to say that Boss Energy Ltd (ASX: BOE) shares have been absolutely smashed this year.

In fact, despite a double-digit rebound on Friday, the uranium producer’s shares are down almost 50% year to date.

A good portion of this weakness has been caused by the release of a disappointing update this month which paints a worrying picture of its Honeymoon project’s future.

Is this a buying opportunity or should you be staying clear of this ASX 200 uranium stock? Let’s see what analysts at Bell Potter are saying about its beaten down shares.

Are Boss Energy shares a buy?

Bell Potter notes that Boss Energy’s update on the Honeymoon project was very disappointing. However, it doesn’t believe it is game over, especially given its bullish view of uranium prices.

The broker also believes that the company could become a takeover target given its depressed share price. It explains:

The market was broadly unimpressed by the lack of confidence in the announcement, which was based on high-level software modelling. There is inherent risk in the approach, given that wellfield spacing to such a large distance to our knowledge hasn’t been conducted before. However, that doesn’t mean it is not possible. Details as to the hypothesised strategy may be provided as early as 2QCY26, with a wide-spaced test scenario to be conducted initially on zones north of the Honeymoon domain.

This should provide greater clarity around the potential success of the approach. Should this fail, the likely outcome would be a lower production profile over LOM with higher AISC (which if you’re bullish uranium pricing might not impact the thesis). The selloff has highlighted one possibility. If the market continues to value Honeymoon at a material discount (on our numbers current implied value is ~A$91m), BOE may become a target for groups ISR experience and a longer outlook on uranium pricing.

Big potential returns

According to the note, the broker has retained its buy rating on Boss Energy shares with a heavily reduced price target of $2.00 (from $2.90).

Based on its current share price of $1.32, this implies potential upside of approximately 50% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We lower our TP to $2.00/sh and maintain our Buy recommendation. Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.6Mlbs pa and costs remain elevated, until such a time that management have completed the work to guide otherwise.

The post Are Boss Energy shares a cheap buy after crashing 50%? appeared first on The Motley Fool Australia.

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

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus today after the company released an update on its precision medicine portfolio, highlighting positive Phase 3 results for Illuccix in China and progress on key FDA regulatory resubmissions.

What did Telix Pharmaceuticals report?

• Positive Phase 3 trial results for Illuccix (TLX591-CDx) in Chinese prostate cancer patients, with an impressive 94.8% patient-level positive predictive value (PPV).
• The Illuccix China study met its primary endpoint and enabled near-term New Drug Application (NDA) submission in China.
• FDA resubmission for TLX101-CDx is close to finalisation following productive discussions.
• Progress on addressing FDA chemistry, manufacturing, and controls (CMC) concerns for TLX250-CDx, with further meetings scheduled.
• Ongoing Expanded Access Programs (EAPs) for TLX101-CDx and TLX250-CDx support continued patient access.

What else do investors need to know?

The Illuccix study in China included 140 prostate cancer patients and showed the PSMA-PET imaging agent delivered strong results even at low PSA levels. More than 67% of patients had a change in their treatment plan due to the study, underlining Illuccix’s clinical impact.

For TLX101-CDx and TLX250-CDx, Telix is taking steps to address FDA requirements for approval and remains confident about their potential. Both programs have active expanded access pathways, keeping treatment options open for eligible patients.

What did Telix Pharmaceuticals management say?

Dr David N. Cade, Group Chief Medical Officer, stated:

This is an outstanding result. The primary endpoint of the study was met decisively, with the positive predictive value significantly exceeding the performance threshold agreed with the Chinese regulator. Importantly, the high PPV was consistent even in patients with very low PSA values, and across differing metastatic locations, demonstrating broad clinical applicability. These compelling data will enable Telix and our partner Grand Pharma to submit a New Drug Application for Illuccix in China, a strategically important market.

What’s next for Telix Pharmaceuticals?

Telix plans to submit a New Drug Application for Illuccix in China, opening doors to a major growth market where the need for advanced prostate cancer imaging is rising. The company is also working with the FDA to resolve outstanding matters for TLX101-CDx and TLX250-CDx, aiming for future regulatory approvals.

Investors should keep an eye on near-term updates regarding U.S. regulatory filings and expansion into new markets. Telix’s commitment to patient access and clinical innovation will likely shape its growth in the months ahead.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix Pharmaceuticals shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Telix Pharmaceuticals in focus with China trial success and FDA updates appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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.

Fortunately for income investors in this low interest rate environment, there are a lot of ASX dividend stocks to choose from on the local market.

To narrow things down, let’s take a look at two that analysts are recommending to clients today. Here’s what you need to know:

IPH Ltd (ASX: IPH)

Analysts at Morgans remains positive on this intellectual property services company and believe it could be an ASX dividend stock to buy.

Although it has been battling tough trading conditions this year, the broker believes that it is still positioned to reward shareholders with some big dividends in the near term. In light of this, it thinks its shares are being undervalued by the market. It said:

On a like-for-like basis, IPH reported flat FY25 revenue and EBITDA -4% on pcp. Each geography recorded marginal LFL EBITDA pressure, a mix of lower filings (ANZ); cost inflation (Asia); and some temporary issues (CAD). Whilst organic growth is still challenged, the FY26 outlook for each division looks relatively stable or marginal incremental improvement. A cost out program (A$8-10m in FY26) will assist. IPH’s valuation is undemanding (<10x FY26F PE), however investor patience is required given the delivery of organic growth looks to be the catalyst for a sustained re-rating.

Morgans is forecasting fully franked dividends of approximately 37 cents per share in both FY 2026 and FY 2027. Based on its current share price of $3.31, this would mean dividend yields of 11%.

The broker has a buy rating and $6.05 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

The team at Bell Potter thinks that Universal Store could be an ASX dividend stock to buy now.

It is a youth fashion focused retailer behind the eponymous Universal Store brand. In addition, it owns the growing Perfect Stranger and Thrills brands.

Bell Potter likes the company due to its attractive valuation and positive growth outlook, which is being supported by its store expansion and margin improvements from private label growth. It explains:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

As for income, the broker is forecasting fully franked payouts of 37.3 cents in FY 2026 and then 41.4 cents in FY 2027. Based on its current share price of $8.30, this represents dividend yields of 4.5% and 5%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post Beat low interest rates with these buy-rated ASX dividend stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 IPH Ltd and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Monadelphous Group Ltd (ASX: MND) share price is in focus after the engineering company announced a major $250 million construction contract with Rio Tinto Ltd (ASX: RIO) for the Brockman Syncline 1 iron ore development. The project will involve multi-disciplinary works and is expected to finish in 2027.

What did Monadelphous report?

• Secured a major construction contract from Rio Tinto valued at approximately $250 million
• Scope includes fabrication, civil works, structural, mechanical, piping, electrical, and instrumentation for new primary crusher and overland conveyor
• Project also covers modifications to existing plant infrastructure at the Brockman Mine Hub
• Contract work commences immediately and is scheduled for completion in 2027
• Expands Monadelphous’ book of large, multidisciplinary projects in the Pilbara region

What else do investors need to know?

Monadelphous is a well-established engineering group with more than 50 years’ experience serving Australia’s resources, energy, and infrastructure sectors. The company maintains strong industry partnerships, with this latest contract reflecting its ongoing relationship with Rio Tinto.

The new award further diversifies Monadelphous’ project portfolio and provides a visibility boost for forward work over the next two years. The company has operations across Australia and throughout Asia-Pacific, supporting both major construction projects and long-term maintenance contracts.

What’s next for Monadelphous?

Monadelphous will focus on safely delivering the Brockman Syncline 1 contract over the coming two years. Management remains committed to expanding capabilities in construction and maintenance services, aiming to secure new opportunities with major resources clients.

The strong pipeline from the Pilbara and a reputation for reliable project delivery keep Monadelphous well-positioned in the competitive engineering sector.

Monadelphous share price snapshot

Over the past 12 months, Monadelphous shares have risen 95%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.

View Original Announcement

The post Monadelphous wins $250m Rio Tinto contract: What it means for shareholders 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.

PLS Group Ltd (ASX: PLS), previously known as Pilbara Minerals, is a popular option for investors looking for exposure to the lithium industry.

But Bell Potter thinks that another ASX lithium stock could deliver better returns for investors in 2026.

Which ASX lithium stock?

The stock that Bell Potter is tipping to rise strongly is Vulcan Energy Resources Ltd (ASX: VUL).

It is the name behind the Lionheart project in Germany’s Upper Rhine Valley region. This project is aiming to commercialise lithium, electricity, and heat production from geothermal brines.

Bell Potter notes that phase one of the Lionheart project is expected to produce 24,000 tpa of lithium hydroxide monohydrate using adsorption-type direct lithium extraction and electrolysis.

The broker highlights that the ASX lithium stock has secured funding and made a final investment decision on the phase one of the Lionheart project. It was impressed with the strategic support it received. Bell Potter explains:

What distinguishes VUL is the strong level of strategic support for the company and Lionheart project. A HOCHTIEF, Siemens and private equity group Demeter €133m investment for 15% of Phase One values the project at €893m (A$1,595m). A KfW Raw Materials Fund investment of €150m provides another impressive valuation point. HOCHTIEF will also increase its VUL shareholding to 15.7% as part of the equity placement (previously 6.7%). VUL’s senior debt is from a syndicate of 13 financial institutions including the European Investment Bank and top tier commercial banks.

Time to buy

Bell Potter thinks that if you have a high tolerance for risk, then you could do well with this one.

According to the note, the broker has reaffirmed its speculative buy rating with a trimmed price target of $5.05.

Based on its current share price of $3.97, this implies potential upside of 27% for investors over the next 12 months.

Commenting on the ASX lithium stock, the broker said:

Lionheart’s location, near-term production and novel technology position VUL to benefit as lithium markets rebalance over the medium term. On our lithium price outlook (long term LHM US$20,000/t), average annual EBITDA is €290m (real). Our Lionheart NPV and the project’s potential for subsequent staged expansions support our Valuation of $5.05/sh.

This valuation now incorporates the recent underwritten equity placement and project sell-down. VUL is an asset development company with only forecast cash flow; our Speculative risk rating recognises this high level of risk and potential share price volatility.

The post Forget Pilbara Minerals shares, this ASX lithium stock could be better appeared first on The Motley Fool Australia.

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

Turning $25,000 into $100,000 can sound ambitious, but in reality, it doesn’t require risky bets or perfect timing. It mostly comes down to patience, discipline, and allowing compounding to do its work.

Let’s walk through how this could realistically play out using long-term investing in quality ASX stocks.

How to build wealth with ASX stocks

If you invest $25,000 into a portfolio of high-quality ASX stocks and earn an average 10% per annum total return, history suggests you can reach $100,000 in around 15 years.

There are no extra contributions in this base scenario. No clever trading. Just buy-and-hold investing and letting time work in your favour.

At 10% per year, your money roughly doubles every seven to eight years. Over 15 years, that compounding effect becomes powerful enough to turn $25,000 into six figures without adding another dollar.

This is how long-term investors in stocks like CSL Ltd (ASX: CSL), Woolworths Group Ltd (ASX: WOW), or Macquarie Group Ltd (ASX: MQG) have historically built wealth. Not through excitement, but through consistency.

Why quality matters

Not all ASX stocks are suitable for a 15-year journey. Businesses with fragile balance sheets, shrinking industries, or unreliable earnings may never recover from inevitable downturns along the way.

Long-term wealth creation tends to come from ASX stocks with durable competitive advantages, strong cash generation, and the ability to grow through different economic cycles. Think of businesses like ResMed Inc (ASX: RMD), REA Group Ltd (ASX: REA), or WiseTech Global Ltd (ASX: WTC).

You don’t need to own all of them, or even pick the perfect one. You simply need exposure to quality businesses that can still be relevant and profitable a decade or two from now.

Shortening the journey

While $25,000 can grow to $100,000 on its own with time, adding even modest contributions can significantly accelerate the process.

For example, if you were to invest an extra $500 per month, alongside the original $25,000, the timeline changes meaningfully. At the same 10% annual return, the portfolio could reach $100,000 in approximately 6 and a half years.

Those contributions don’t just add capital. They buy more shares, which then compound alongside the original investment. Over time, the growth on growth becomes the dominant force.

Foolish takeaway

Turning $25,000 into $100,000 isn’t about finding the next hot stock. It is about starting with a solid base, staying invested through market ups and downs, and giving compounding the time it needs.

Quality ASX stocks have helped patient investors build wealth for decades. With a long-term mindset, $25,000 doesn’t have to stay $25,000 forever.

The post How to turn $25,000 into $100,000 with ASX stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, REA Group, ResMed, WiseTech Global, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, ResMed, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group, ResMed, WiseTech Global, and Woolworths Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pro Medicus Ltd (ASX: PME) share price has pulled back sharply in recent weeks.

Shares in the medical imaging software leader are down 13%, despite no change in the company’s underlying fundamentals.

At Friday’s close, Pro Medicus shares finished the session at $217.37.

For a stock that has delivered consistently over the long run, the recent weakness raises the question of whether the market has become too cautious.

A rare pullback in a premium business

Pro Medicus has built a reputation as one of the highest-quality software companies on the ASX. Its Visage Imaging platform is deeply embedded in large hospital networks, particularly across the US, where long contract durations and high switching costs create a powerful moat.

The recent share price weakness appears more about valuation concerns and broader market volatility than company-specific issues. There have been no profit warnings, no loss of major customers, and no slowdown in contract momentum.

Contract wins continue to stack up

Just weeks ago, Pro Medicus announced another significant long-term contract with a large US healthcare group. The agreement covers a multi-year rollout across the customer’s network, with room to expand over time.

That lines up with what management outlined at the latest AGM. Demand from US hospital systems remains strong, sales pipelines are deep, and existing customers continue to expand the platform’s footprint.

Brokers remain firmly bullish

Despite the recent pullback, broker views on Pro Medicus haven’t really changed.

Most major brokers continue to rate the stock as a buy, pointing to its long-term growth profile and ability to scale earnings as contracts roll through. Price targets remain comfortably above current levels, with many sitting in the $250 to $280 range.

Bell Potter has again highlighted Pro Medicus as a preferred healthcare name heading into 2026, citing its strong competitive position and clear revenue visibility. Similar themes are coming through across other broker updates, with analysts still seeing upside as new contracts ramp up and margins continue to expand.

Foolish takeaway

Rather than focusing on whether Pro Medicus is cheap, the real question is whether anything has changed. Right now, it’s business as usual.

Contract momentum remains solid, broker confidence hasn’t wavered, and management continues to point to a deep pipeline of US opportunities. In that context, the recent pullback looks more like a shift in sentiment than any change in the underlying story.

For investors watching the stock, this phase may be less about picking the exact bottom and more about gradually building exposure to a high-quality ASX 200 company.

The post Is now the time to buy Pro Medicus shares? appeared first on The Motley Fool Australia.

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