Tag: Stock pick

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.1% to 8,627.7 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are pushing higher:

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is up 8% to $3.83. This investment company’s shares have been in fine form this week, rising very strongly. So much so, they are now up 18% since this time last week. A catalyst for this could have been a broker note out of Macquarie Group Ltd (ASX: MQG) earlier in the week. Its analysts have reaffirmed their outperform rating and $4.90 price target on HMC Capital’s shares. This still implies potential upside of approximately 27% for investors over the next 12 months.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is up 9% to $4.48. Earlier this week, in response to its results, Bell Potter put a buy rating and $5.80 price target on the almond producer’s shares. It said: “Our Buy rating is unchanged. FY25 results appeared broadly consistent with our expectations and should benefit in FY26e from improved production volumes and elevated almond prices. While costs are lifting (this was anticipated in our forecasts) and there is the scope for this to be mitigated by cost out initiatives. At spot almond prices we would see SHV trading on a FY26e PE of ~9x, with upside to EPS through delivery of cost out initiatives and securing third party processing volumes.”

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is up 4.5% to $4.79. This may have been driven by the release of a bullish broker note out of UBS this morning. According to the note, the broker has reaffirmed its buy rating and $6.15 price target on its shares. Based on its current share price, this implies potential upside of almost 30% for investors over the next 12 months. The broker was pleased with the company’s recent update, highlighting that it is growing stronger than a key rival. It was also happy to see that Web Travel’s margins have held up better. Though, there is a risk that this rival will try to undercut Web Travel in order to boost its growth.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up a further 5.5% to $73.65. This is despite there being no news out of the logistics solutions technology company on Friday. However, it is worth noting that a number of ASX tech shares have been rising strongly this week after being sold off this month amid concerns over an AI bubble. This has seen the S&P/ASX All Technology Index rise by 0.85% at the time of writing. WiseTech Global shares are now up 13% over the past two sessions.

The post Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• What’s driving the dramatic drop in ASX 200 tech shares?
• Here are the top 10 ASX 200 shares today
• Why this ASX All Ords stock could return 40% in a year
• Why are WiseTech shares storming higher today?
• Almond grower’s shares up on positive full-year profit result

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

Woodside Energy Group Ltd (ASX: WDS) shares have experienced some sizeable price swings, both higher and lower, over the past four years.

Some of the share price moves were driven by company specific issues, both positives and negatives.

And, as you’d expect, the S&P/ASX 200 Index (ASX: XJO) energy stock also is highly leveraged to global oil prices.

In afternoon trade today, Woodside shares are down 0.3%, changing hands for $24.95 apiece.

So, if you’d invested $10,000 in the Aussie oil and gas giant four years ago, just how much would you have today?

Let’s dig in.

Taking a $10,000 stake in Woodside shares

Four years ago, on 26 November 2021, you could have bought Woodside shares for $21.60 each.

Meaning your $10,000 investment would have netted you 462 shares, with enough change left over for a fast-food lunch.

Today, those same shares are worth (a rounded) $11,527, equating to a gain of $1,527.

But wait. There’s more!

There’s a good reason Woodside is popular among passive income investors. Namely, the company’s lengthy track record of paying market-beating dividends.

If you bought Woodside shares four years ago, you’d have received the past eight fully franked dividends.

According to my trusty calculator, those eight Woodside dividends total $10.06 per share.

So, if we add that back into today’s price, then the accumulated value of the shares you bought four years ago is now worth $35.01.

Meaning your $10,000 investment would have grown to $16,175 today. With some potential tax benefits from those franking credits.

What’s the latest from the ASX 200 energy stock?

The last price-sensitive news for Woodside shares was the company’s Capital Markets Day on 5 November.

The company captured investor interest with forecasts that it expects to increase net operating cash flow by 55% by the early 2030s. Woodside’s net operating cash flow came in at US$5.8 billion in 2024, with management aiming to boost that to US$9 billion, representing a compound annual growth rate (CAGR) of more than 6%.

Management also aims to lift sales from 203.5 million barrels of oil equivalent (MMboe) in 2024 to more than 300MMboe by 2032.

On the passive income front, Woodside plans to boost its dividends by 50% from 2024 levels to what it expects to pay out in 2032.

That strong outlook is supported by the company’s growth projects, including the Scarborough LNG project, the Beaumont New Ammonia project, and the Louisiana LNG project.

Commenting on the outlook for Woodside shares on the day, CEO Meg O’Neill said:

Woodside is a compelling investment opportunity supported by world-class assets, an integrated value chain, long-term customer relationships and a strong balance sheet. Woodside generates durable cash flows and has rewarded shareholders with approximately US$11 billion in dividends since 2022.

The post $10,000 invested in Woodside shares 4 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 large-cap shares with new ratings from Morgans
• Is the Woodside share price a buy right now?
• 5 things to watch on the ASX 200 on Monday
• Woodside vs Fortescue shares: One I’d buy and one I’d sell
• These were the 10 most-traded Australian shares last week

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

Zip Co Ltd (ASX: ZIP) shares have rebounded strongly despite no price-sensitive news out of the buy now, pay later (BNPL) company.

The Zip share price is $3.41, up 1% today, and up 19.3% since last Friday’s close at $2.85 per share.

What is going on?

Zip shares zig-zag all over the place!

The Zip share price put in a great performance in FY25, rising 110% as the company’s new strategy continued to bear fruit.

Zip decided three years ago to abandon its mass global growth strategy in favour of positive cash flow in just a few markets.

For FY25, Zip reported a 30.3% lift in total transaction value to $13.1 billion and a 147% lift in cash EBTDA to $170.3 million.

The company’s operating margin almost doubled to 15.8%.

On 20 October, Zip provided a 1Q FY26 update, reporting record cash earnings of $62.8 million, up 98.1% year over year.

The operating margin was 19.5%.

On the day of the report, Zip shares rose 4.3% to $4.61, indicating that investors liked what they saw in the numbers.

The next day, 21 October, the ASX BNPL stock was killed with 9% erased from its market capitalisation.

On the same day, the S&P/ASX 200 Index (ASX: XJO) hit a new record at 9,115.2 points.

Between 21 October and 19 November, Zip shares plummeted 38% to a four-month closing low of $2.84 last Wednesday.

With no price-sensitive news from Zip during this time, it’s likely that the stock’s fall is attributable to profit-taking.

Pretty understandable given Zip shares had risen another 50% between 30 June and 20 October, building on their 110% gain in FY25.

Blackwattle portfolio managers, Robert Hawkesford and Daniel Broeren, say the Zip share price also fell due to negative sentiment over US credit quality, sparked by the collapse of sub-prime auto lender, Tricolor, amid fraud allegations, and other matters.

Meanwhile, other ASX 200 shares have also fallen since the benchmark index hit its peak.

The ASX 200 is down 5% since 21 October, with the financial sector down 8.2%.

As discussed in another article, all market sectors have experienced a fall since their historical sector high points in 2025.

Financials sit in the middle of the pack, down 9.7%. Materials have fared best, down 3.4%, while tech is the worst performer, down 24%.

Zip shares seemed to find support at about $2.85 apiece last week, and a strong rebound has ensued this week.

Expert tips for the Zip share price

Zip shares were upgraded to a ‘strong buy’ consensus rating on the CommSec platform in October.

Macquarie has just begun covering the stock. The top broker has a buy rating on Zip with a 12-month share price target of $4.85.

UBS has a buy rating on Zip shares with a more ambitious price target of $5.40.

In their latest update, Hawkesford and Broeren said they saw ‘meaningful upside’ ahead for the Zip share price.

… the underlying fundamentals and outlook for Zip remain strong and we see meaningful upside from both a re-rating of the stock and the ongoing penetration of BNPL products in the US which has a significant runway, sitting at only ~2% today, vs ~15% and ~20% in Australia and Europe respectively.

The post Why did Zip shares rebound 19% this week? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares smashing the benchmark this week
• Here are the top 10 ASX 200 shares today
• Is the Zip share price a buy after falling 33% in less than 2 months?
• Here are the top 10 ASX 200 shares today
• Top 10 most-traded ASX shares last week

Motley Fool contributor Bronwyn Allen has positions in Zip Co. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a relatively positive finish to the week. In afternoon trade, the benchmark index is up 0.1% to 8,618.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down 1.5% to $6.87. Investors have been selling this retailer’s shares again on Friday. The latest catalyst appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded Harvey Norman’s shares to a neutral rating with a reduced price target of $7.50. It made the move on valuation grounds after a strong gain this year left its shares trading at what it believes is fair value.

Mirvac Group (ASX: MGR)

The Mirvac share price is down almost 1.5% to $2.16. It is one of a number of ASX 200 real estate shares that are under pressure on Friday. This appears to have been driven by the release of Australian inflation data, which came in higher than expected. As a result, the market now believes that interest rate cuts are over and the next move could be higher by the Reserve Bank of Australia. This could put pressure on the real estate sector.

Qube Holdings Ltd (ASX: QUB)

The Qube Holdings share price is down 3.5% to $4.80. This may have been driven by profit taking from some investors following strong gains this week. The logistics solutions company’s shares surged thanks to the receipt of takeover offer from Macquarie Group Ltd (ASX: MQG). The Macquarie Asset Management (MAM) business has offered $5.20 per share for Qube. In response, the company’s chair, John Bevan, said: “The proposal from Macquarie Asset Management is a reflection of the strength of Qube’s business model and our assets, and the quality of our people and culture. We look forward to continuing to engage constructively in the best interests of our shareholders.”

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down 3% to $17.64. On Thursday, this insurance giant revealed that supercell thunderstorms in south-east Queensland and parts of northern New South Wales were expected to cost Suncorp $350 million, having reached the reinsurance maximum event retention. This morning, according to a note out of Citi, its analysts have retained their neutral rating but cut their price target on its shares from $22.10 to $19.25.

The post Why Harvey Norman, Mirvac, Qube, and Suncorp shares are falling today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares smashing the benchmark this week
• Why Amcor, DroneShield, Harvey Norman, and QBE shares are falling today
• Why is everyone talking about Qube shares?
• Why are Harvey Norman shares racing 4% to a new record high?
• 5 things to watch on the ASX 200 on Wednesday

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 Harvey Norman and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With less than half a day of trade left before Friday’s closing bell, the S&P/ASX 200 Index (ASX: XJO) is up 2.6% for the week, with these three ASX 200 stocks racing ahead of those gains.

Here’s what’s been grabbing investor interest this week.

Two ASX 200 stocks leaping more than 19%

The first outperforming company this week is Qube Holdings Limited (ASX: QUB).

Shares in the logistics solutions provider closed last Friday trading for $4.07. In early afternoon trade today, shares are changing hands for $4.85 apiece. That sees this ASX 200 stock up 19.2% over the week.

Most of those gains were delivered on Monday. That came after Qube announced that Macquarie Assessment Management had lobbed a takeover bid for the company. Macquarie is offering $5.20, or 27.8% above the prior day’s closing price. This values Qube at $11.6 billion.

Qube’s directors indicated their unanimous initial support for the takeover deal, barring a superior offer.

Moving on to the second ASX 200 stock shooting the lights out this week, we have Zip Co Ltd (ASX: ZIP) shares.

Shares in the buy now, pay later (BNPL) stock closed last week at $2.85 and are currently trading for $3.41 each. This puts Zip shares up 19.7% for the week.

There was no new price sensitive news out from Zip this week. But investors look to have been buying Zip shares amid rising hopes of a December interest rate cut from the US Federal Reserve.

Economists at JPMorgan now expect the Fed to reduce rates by 0.25% in December, with another 0.25% cut pencilled in for January. That’s partly based on recent dovish comments from Fed members, like John Williams, the president of the Federal Reserve Bank of New York.

The US is a growth market for Zip, which already generates more than half its revenue in the world’s top economy. And BNPL stocks like Zip have proven to perform materially better in low and falling rate environments.

Leading the charge

Which brings us to the top weekly-performing ASX 200 stock on my list today, National Storage REIT (ASX: NSR).

Shares in the largest self-storage provider in Australia and New Zealand closed last week trading for $2.25. At the time of writing, shares are swapping hands for $2.71. That puts the National Storage share price up 20.4% for the week.

As with Qube, the ASX 200 stock leapt higher this week following news of a potential takeover offer.

Shares surged on Wednesday, after the company confirmed media speculations that Brookfield Property Group and GIC Investments had lobbed an unsolicited, non-binding takeover proposal.

The offer, should it get the green light, would see National Storage shareholders receive $2.86 per share for their current holdings.

The post 3 ASX 200 shares smashing the benchmark this week appeared first on The Motley Fool Australia.

More reading

• Why did Zip shares rebound 19% this week?
• Why Harvey Norman, Mirvac, Qube, and Suncorp shares are falling today
• Here are the top 10 ASX 200 shares today
• This ASX storage REIT’s shares surge as takeover talks confirmed
• Is the Zip share price a buy after falling 33% in less than 2 months?

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brookfield, Brookfield Asset Management, Brookfield Corporation, and JPMorgan Chase. 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.

I’m sad to say (but happy) that I’m a couple of decades away from retirement. Or at least the traditional retirement age. One of the reasons I invest in passive income-generating ASX dividend shares is to try to bring that retirement age forward as much as possible.

Thanks to the magic of compound interest, I have faith that by investing in wealth-creating ASX shares today, I can set myself up to enjoy a steady stream of passive income down the road.

One of the ASX shares that I have placed this faith in most enthusiastically is Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Soul Patts is an investment house that has been listed on the ASX for more than a century. Over this period, it has built a reputation as a prudent and savvy allocator of capital. So much so that Soul Patts has managed to deliver market-beating returns for the past two decades.

Its portfolio, which consists of a diversified range of assets such as ASX shares, private credit, and property, has also enabled this ASX share to build the ASX’s most impressive dividend streak. No exaggeration.

Soul Patts has delivered an annual dividend increase every year since 1998. That’s 27 years and counting of annual shareholder passive income pay rises.

Since 1998, Soul Patts has grown these annual dividends at a compounded rate of 10.5% per annum, excluding special dividends. Over the past five years (2021-2025), that rate has hit 13.5%.

This means an investor who puts $20,000 into Soul Patts shares today could enjoy $5,000 over their retirement.

How to get a 25% passive income yield

You might be wondering how that’s possible, given this passive income stock only trades on a dividend yield of 2.75% today. That would see an investor who puts $20,000 get just $550 in dividends per year if that holds. That comes from the approximate 534 shares we would get from $20,000 at current pricing, as well as the $1.03 in annual dividends per share the company doled out in 2025.

Well, all we need is time and compounding.

Let’s go out on a limb and assume that Soul Patts will continue to increase its annual dividend by 10.5% per annum for the foreseeable future. Even if we don’t reinvest our dividends or buy any more stock, it would take nine years for our annual stream of passive income to double to $1,000. Eight years after that, it would hit $2,000, and $4,000 after another seven. After 25 years, we would be getting about $5,000 in annual dividend income from our $20,000 investment – representing a yield-on-cost of 25%.

Now, 25 years is a very long time, of course. But the rate of return is more than enough to help an investor retire early if they spend their working years putting as much cash as possible into wealth-generating stocks like Soul Patts. And these days, most of us can thankfully expect to spend at least 25 years in retirement anyway.

The post I’m targeting $5,000 a year in retirement from $20,000 in this passive income gem! appeared first on The Motley Fool Australia.

More reading

• Trading just under $38 now, the Soul Patts share price looks like a bargain to me anywhere below $35
• 2 Australian dividend giants that I think belong in every portfolio
• I’m thrilled I bought Soul Patts shares 2 years ago. Would I buy them today?
• 3 ASX dividend shares raising dividends like clockwork
• These 2 ASX dividend shares are great buys right now

Motley Fool contributor Sebastian Bowen 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.

The gold industry has been a great place to invest in 2025. But if you thought the big gains were over, think again!

That’s because if you have a high tolerance for risk, then Bell Potter thinks you should be snapping up the ASX gold stock in this article.

Which ASX gold stock?

The stock in question is Minerals 260 Ltd (ASX: MI6).

It is a Perth-based exploration and development company behind the Bullabulling Gold Project.

Bullabulling is a past-producing gold mine located near Coolgardie in Western Australia, with a mineral resource estimate of 2.3Moz at 1.2g/t Au.

What is the broker saying?

Bell Potter notes that a major catalyst is on the horizon which could give this ASX gold stock a massive boost.

That catalyst is the release of a resource update on the Bullabulling Gold Project, which is due imminently. The broker said:

MI6 is on track for a Resource update at its 100%-owned Bullabulling Gold Project (BGP), 25km west of Coolgardie in Western Australia. It has made excellent progress with the major Resource drilling program underway at the BGP.

Earlier this year the program was expanded from 80,000m to 110,000m and the company guided that +90,000m of this should make it into the next Resource update. This has consistently been guided for early December 2025 and was reiterated at the recent AGM. In our view, this is likely to be a major, positive catalyst for MI6 and could be delivered as early as next week. MI6 has $43m cash and is funded to FID in early 2027.

Bell Potter believes that the current BGP resource has potential to grow strongly given the company’s major drill program. It adds:

Since acquisition, MI6 has undertaken a major drill program which has extended mineralisation at depth across all deposits, confirmed continuity of mineralisation at depth, extended mineralisation along strike, confirmed continuity between some deposits and will (likely) upgrade confidence categories. Combined with higher metallurgical recoveries and a higher gold price, we anticipate pit shells to be drawn lower and capture the majority of the historic and extended Resource, supporting substantial Resource growth at the BGP.

Time to buy

According to the note, the broker has put a speculative buy rating and 57 cents price target on the ASX gold stock. Based on its current share price of 34 cents, this implies potential upside of 68% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

MI6 offers gold exposure via the 2.3Moz Bullabulling Resource, valuation uplift through discovery success and further Resource growth, project advancement and de-risking as the BGP progresses towards production. There is also potential M&A activity in a market characterised by well valued gold producers with strong balance sheets and appetites for growth. We retain our Speculative Buy recommendation and our Valuation of $0.57/sh.

The post This speculative ASX gold stock could rise 65%+ appeared first on The Motley Fool Australia.

More reading

• I’m targeting $5,000 a year in retirement from $20,000 in this passive income gem!
• Guess which ASX lithium stock just doubled investors’ money on Friday
• Buying ASX shares? Here’s what to know before the RBA starts hiking interest rates
• Ord Minnett says these ASX 300 shares could rise 15% to 30%
• A Black Friday stock tip for free

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 All Ordinaries Index (ASX: XAO) is just about flat today, but that’s not stopping this rocketing ASX lithium stock.

The surging company in question is European Metals Holdings Ltd (ASX: EMH).

European Metals shares closed yesterday trading for 23 cents. In late morning trade on Friday, shares are changing hands for 46 cents apiece.

In earlier trade today, shares were trading as high as 55 cents apiece, up a remarkable 139.1%.

At the current price, this ASX lithium stock is up a whopping 100% today and commanding a market cap of $104 million.

It also now sees shares up more than 218% since this time last year.

Here’s what’s capturing ASX investor interest in the junior ASX mining company today.

ASX lithium stock soars on $645 million grant

The European Metals share price is going through the roof after the company announced that its Geomet joint venture company (49% owned by EMH) has been awarded a grant of up to 360 million euros (AU$645 million).

The grant will help fund the development of the ASX lithium stock’s flagship Cinovec Lithium Project, located in the Czech Republic. Management said it will support significant investments in the production and expansion of equipment, key components, and critical raw materials at the project.

The money is being provided via the Strategic Investments for a Climate-Neutral Economy program, which is administered by the Ministry of Industry and Trade of the Czech Republic.

While many Aussies won’t be familiar with the project, it’s a pretty big deal.

According to the release:

Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O containing a combined 7.39 million tonnes Lithium Carbonate Equivalent.

In fact, Cinovec counts as the largest hard rock lithium deposit in Europe. As such, Cinovec has been designated a Strategic Project by the European Union under the Critical Raw Materials Act.

The ASX lithium stock noted that the final amount of the grant will be confirmed upon formal award, and it could come in below the maximum amount of 360 million euros.

What did management say?

Commenting on the government grant sending the ASX lithium stock flying today, European Metals executive chairman Keith Coughlan said, “This is a transformational milestone for European Metals and the Cinovec Project.”

Coughlan added:

The Czech government’s award of a grant of up to 360 million euros represents one of the largest direct project level funding commitments to a critical raw materials project within the European Union.

Following the previously detailed formal recognition of the project, the approval of such a significant financial contribution clearly demonstrates the support for and importance of Cinovec in the future of European electromobility.

The post Guess which ASX lithium stock just doubled investors’ money on Friday appeared first on The Motley Fool Australia.

More reading

• I’m targeting $5,000 a year in retirement from $20,000 in this passive income gem!
• This speculative ASX gold stock could rise 65%+
• Buying ASX shares? Here’s what to know before the RBA starts hiking interest rates
• Ord Minnett says these ASX 300 shares could rise 15% to 30%
• A Black Friday stock tip for free

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

Buying ASX shares and worried about the potential market impacts of rising inflation?

You’re not alone.

On Wednesday, investors were greeted with some unwelcome news from the Australian Bureau of Statistics (ABS).

Specifically, the ABS revealed that for the 12 months to October, the consumer price index (CPI) was up by 3.8%, rising from the 3.6% 12-month inflation print in September. And trimmed mean inflation, the measure most relied on by the Reserve Bank of Australia, increased to 3.3% from 3.2%.

That news didn’t keep investors from buying ASX shares, though, with the S&P/ASX 200 Index (ASX: XJO) closing up 0.8% on the day.

But with the inflation genie back out of the bottle, the odds of any near-term interest rate cuts from the RBA have all but evaporated. And the chances Aussies will see a rate hike in 2026 have soared.

Will the RBA now raise interest rates in 2026?

Trent Saunders, Commonwealth Bank of Australia (ASX: CBA) senior economist, noted investors buying ASX shares should not expect interest rate relief any time soon.

According to Saunders:

This outcome reinforces our view that interest rates will stay on hold for an extended period. Signs of a pick-up in market services will be of particular concern for the RBA, but the signal from this release is still far from clear.

CBA noted:

The Reserve Bank meets in December and is expected to keep rates steady. But with inflation proving sticky, the tone could turn more towards interest rate hikes, especially if services inflation persists.

Farhan Badami, market analyst at eToro, added:

This pretty much confirms the RBA’s easing cycle might be over before it really started, potentially locking in 3.60% cash rate through mid-2026 at least. If inflation doesn’t get any better, it could even add pressure on the RBA to increase rates.

As for higher rates, UBS and Barrenjoey both said they now expect the RBA will hike interest rates once or twice in the year ahead.

Buying ASX shares in a higher interest rate environment

The jury is still out. But following the fourth consecutive month of rising inflation, investors buying ASX shares would do well to review their current and planned shareholdings today.

While all companies come with their own unique risk and reward profiles, some market sectors tend to perform better than others when borrowing costs increase.

As a general rule, ASX value shares often outperform ASX growth shares during periods of monetary tightening.

So you may want to consider increasing your exposure to consumer staples like Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) shares and decreasing exposure to ASX consumer discretionary shares.

A lot of ASX tech stocks – often priced with future earnings in mind – could also come under pressure if the RBA raises interest rates in 2026 as higher rates increase the present cost of investing in those future earnings.

The recently rebounding ASX property stocks could also take a hit under this scenario.

ASX banks stocks, on the other hand, could benefit, as higher rates enable them to improve their net interest margins, so long as the wider economy keeps chugging along.

These are just a few broad investment themes to keep in mind when you’re buying ASX shares in today’s environment.

The post Buying ASX shares? Here’s what to know before the RBA starts hiking interest rates appeared first on The Motley Fool Australia.

More reading

• A Black Friday stock tip for free
• ASX 200 vs US stocks: Where the next decade of big winners may come from
• Is the S&P 500 set for a crash? Here’s my plan for the US stock market
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Ord Minnett has been busy running the rule over a number of ASX 300 shares.

Two that have fared well and have been given buy ratings are named below. Here’s what the broker is saying about them:

Mineral Resources Ltd (ASX: MIN)

Ord Minnett was pleased with news that this mining and mining services company has formed a joint venture with POSCO Holdings for its lithium assets.

It notes that the Korean giant will pay US$765 million (A$1.2 billion) in cash for a 30% stake in the joint venture. This values its remaining stakes in the Wodgina and Mt Marion operations at ~$4 billion, versus a consensus valuation of $2.8 billion previously.

It also implies a long-term spodumene price of US$1600 a tonne, which is comfortably above market expectations. Commenting on the ASX 300 share, the broker said;

Breaking the $4 billion down equates to around $20 per Mineral Resources share, up from the prior market valuation of $14 a share. ‍Mineral Resources will still be the operator of Wodgina and Mt Marion as per current deals with US company Albermarle and Hong Kong-based Ganfeng Lithium, neither of which have any pre-emptive rights over the POSCO deal.

Post the deal, we make no changes to our FY26 EPS estimate, but our FY27 forecast falls 17.4% to incorporate the effect of the sale and our FY28 number rises 1.1%. We maintain a price target of $55.00 on Mineral Resources and reiterate our Buy recommendation.

As mentioned above, Ord Minnett has a buy rating and $55.00 price target on its shares. This implies potential upside of approximately 15% from its last close price.

Virgin Australia Holdings Ltd (ASX: VGN)

Another ASX 300 share that Ord Minnett is positive on is airline operator Virgin Australia.

The broker was pleased to see the company reiterate its guidance for growth in revenue per available seat kilometre (RASK) of 3% to 5% in the first half of FY 2026. It notes that this is being “underpinned by strong demand and operational performance.”

As a result, the broker has increased confidence in the company’s outlook. It said:

The trading update gave Ord Minnett confidence the near-term outlook is sound, given Virgin’s hedging program, which incorporates the jet fuel spread, means recent rising fuel prices will have little effect on FY26 earnings. Post FY26, we expect higher fuel costs will be mostly, but not all, offset by management of the RASK metric, i.e. some mix of higher ticket prices and reduced capacity. ‍

Post the trading update, we have nudged our FY26 EPS estimate down 0.3%, while our FY27 and FY28 forecasts are cut by 2.8% and 3.1%, respectively, to incorporate the impact of fuel costs, which leads us to trim our target price to $4.00 from $4.10.

Ord Minnett has a buy rating and $4.00 price target on its shares. This implies potential upside of 32% for investors over the next 12 months.

The post Ord Minnett says these ASX 300 shares could rise 15% to 30% appeared first on The Motley Fool Australia.

More reading

• What is Ord Minnetts’ view on Virgin Australia and BHP shares?
• Why are shares in Aussie lithium producers being sold off today?
• Mineral Resources shares: After a year of outperformance (up 45%), is it still a buy?
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• ASX lithium shares outperform as ASX 200 tumbles to four-month low

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.