Tag: Stock pick

ASX growth shares can generate some of the strongest returns over time, but there can be plenty of volatility along the way. I’m going to highlight two companies that have exciting futures and whose recent valuation declines have made them appear better value.

It’s normal for fast-growing businesses to sometimes experience a bump. There have been numerous sell-offs, for example, of Amazon and Microsoft shares over the last 30 years. Those dips were opportunities.

I’m not expecting the following two businesses to do as well as the US tech giants, but the future looks positive for these stocks.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the most impressive ASX growth shares, in my view. It provides a full range of medical imaging software and services to hospitals, imaging centres, and healthcare groups in Australia and internationally.

The company is winning a lot of new contracts, which is driving its earnings higher at a rapid rate. In this month alone, it has announced multiple contracts worth a total of $73 million. Large clients are clearly loving what they’re seeing with the offering.

This new revenue is extremely valuable to the business because it has an underlying operating profit (EBIT) margin of 74% (as of FY25). That means almost three-quarters of revenue is turning into EBIT, which is a very high proportion. This is helping drive the bottom line and dividends to higher levels at a growth rate of more than 30% (in FY25).

Its FY25 revenue rose 31.9% and it seems the company is set to deliver further strong growth for the foreseeable future.

The ASX growth share still has a high price-to-earnings (P/E) ratio, but it appears considerably cheaper after the Pro Medicus share price declined by 20% since July, as the chart below shows.

Temple & Webster Group Ltd (ASX: TPW)

This company sells homewares and furniture online. The ASX growth share took a hammering yesterday after delivering a trading update that didn’t live up to expectations. I think this is a long-term buying opportunity.

Revenue between 1 July 2025 and 20 November 2025 grew by only 18% year over year, compared to the 28% growth achieved between 1 July and 11 August 2025. It’s clear there has been a major slowdown since August.

However, the company has a long history of delivering strong growth, so I believe this is just a temporary hit for the ASX growth share rather than a permanent situation.

For starters, the overall Australian furniture and homewares market only recently reached 20% online penetration. In the US and UK markets, online penetration has climbed to 29% and 35%, respectively, suggesting a further increase in e-commerce adoption by shoppers.

With 18% revenue growth for the financial year to date, the company is still gaining market share, giving it more market power and economies of scale.

The business noted a number of other positives in its AGM update – it’s starting to ship products to New Zealand, its home improvement revenue rose over 40% year over year, and the trade and commercial revenue increased 23% year over year.

I’m expecting the company’s revenue to be significantly higher in five years, and the profit margins should climb thanks to operating leverage and specific efforts the ASX growth share is making to improve efficiencies, leverage AI, and enhance technology across the business.

The post Why I think these 2 ASX growth shares are great buys today appeared first on The Motley Fool Australia.

More reading

• Why Meteoric Resources, Race, Temple & Webster, and West African shares are falling today
• This furniture outfit has delivered a big miss on sales expectations, with its shares smashed as a result
• 3 amazing ASX growth shares to buy and hold forever
• Why Gentrack, Monash IVF, Pro Medicus, and Qube shares are racing higher today
• Pro Medicus shares charge higher on big news

Motley Fool contributor Tristan Harrison has positions in Pro Medicus and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Microsoft, Pro Medicus, and Temple & Webster 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

EV company Tesla (NASDAQ: TSLA) has had a rough year. One on hand, EV sales rose in quarter three, and the energy business is growing steadily. On the other hand, EV tax credits expired in September, and the Pew Research Center has polled declining support for solar and EVs. 

While meaningful, these may be short-term headwinds. Going deeper, we’ll look at Tesla through the lens of Warren Buffett, one of the greatest investors of all time. Warren Buffett’s partner, Charlie Munger, strongly suggested that investors “invert, always invert” when considering investments.

Here, we’ll invert by swapping “reasons to invest in Tesla” with “reasons to distance yourself from Tesla.” In doing so, we can quickly pinpoint who might be better off investing elsewhere. 

1. Tesla’s CEO has reputation issues and lacks focus

Trust is crucial to any business. Warren Buffett has said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” I think Tesla has stumbled more than once here. The EV company — CEO Elon Musk in particular — has built a reputation not just for excellent cars, but for partisan politics. That’s worrying.

People associate Tesla’s brand with Elon Musk’s politics. A 2025 study by the nonpartisan National Bureau of Economic Research suggests that Tesla sales between October 2022 and April 2025 would have been 67-83% higher (1-1.26 million more vehicles sold) had the Tesla CEO avoided polarization. If so, this may be why trailing 12-month vehicle deliveries peaked at ~1.8m in Q3 of 2023. Despite slashing Tesla prices 20% in 2023, deliveries have remained flat or down.

Mr. Musk also poses a growing risk to management. In a 1996 Berkshire Hathaway shareholder letter, Warren Buffett says, “Loss of focus is what most worries Charlie and me when we contemplate investing in businesses that in general look outstanding. All too often, we’ve seen value stagnate in the presence of hubris or of boredom that caused the attention of managers to wander.”

Elon Musk’s attention seems sporadic. He has founded seven companies and is actively participating in six (Tesla, SpaceX, Neuralink, xAI, X.com, The Boring Company). In 2024-2025, he spent months at the White House running the Department of Government Efficiency (DOGE). After that, he floated the idea of a third political party to X.com users.

The risk of Elon Musk losing focus on Tesla is so high that the company’s board of directors has released a letter to the public, urging shareholders to approve a pay package that could be worth a trillion dollars, in order to prevent Elon from leaving the company. Recently, shareholders approved the package.

While the pay package does a good job of aligning incentives, it’s no guarantee that Elon Musk will prioritize Tesla.

2. Tesla lacks a durable competitive advantage

Competition is something to watch. In a 1999 Fortune Magazine interview with Carol Loomis, Warren Buffett says, “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” Tesla produces excellent cars, and its growing automation efforts may significantly impact society. But it seems to lack a moat that protects its share of the EV market.

Declining EV sales isn’t a global problem; it’s a Tesla problem. Trailing 12-month deliveries of Tesla vehicles reached a peak in 2023. However, global EV sales increased from over 13 million to 17 million between 2023 and 2024. In the U.S., Tesla’s home turf, sales of EVs rose from 1.2 to 1.3 million. All this indicates stiffer competition in what should be Tesla’s strongest region (the U.S.). Unfortunately, Tesla has far from recovered. By August 2025, Tesla’s U.S. market share of EVs fell from 80% to 38%, an eight-year low.

Global competition is already stiff and rising. Chinese groups BYD (OTC: BYDDY) and Geely (OTC: GELYY) boast the greatest market share and are growing. (Berkshire Hathaway purchased BYD shares in 2008, selling in 2025 for a tidy profit.) According to a study by SNL Research, Tesla hasn’t just lost market share in every major market. It’s the only top global EV company with a negative growth rate (-11% between January and August 2025, by deliveries).

I think it’s worth asking whether Tesla’s current business can withstand competition in EV sales, its biggest revenue generator. It had a first-mover advantage, but Tesla’s momentum is gone.

Risk is leadership and competition

If I were Warren Buffett, I’d take issue with Tesla’s CEO (poor reputation, unfocused) and lack of competitive advantage. Tesla’s CEO poses a long-term risk to trust and focus, and Tesla is losing market share to competition. I’ll be holding off on adding to my Tesla position until I’m confident that Tesla’s CEO will prioritize Tesla. Until then, I’m better off investing in higher-confidence businesses. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 reasons to distance yourself from Tesla in 2025, according to Warren Buffett logic appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• I would buy Tesla stock at this price
• Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 7 pick.
• The best ASX ETFs to buy and hold for 20 years
• How does Tesla make money?

Cole Tretheway owns Tesla stock. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BYD Company. 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) rocketed as much as 6.5% higher in after-hours trading on Nov. 19 after reporting third-quarter fiscal 2026 results and issuing fourth-quarter guidance.

While some investors may have been focused on the revenue and earnings per share (EPS) beats, the most jaw-dropping number of the report was hiding in plain sight.

Here’s what blew me away about Nvidia’s recent quarter, and why the artificial intelligence (AI) growth stock remains a great buy now.

Nvidia’s revenue growth is mostly profit

Nvidia grew revenue by $21.92 billion compared to the same quarter last year, but the cost of revenue grew by just $6.23 billion, and operating expenses only grew by $1.17 billion.  This means that Nvidia is converting the bulk of additional revenue into operating income.

Despite fears that Nvidia’s margins would compress due to competition and increased research and development spending, Nvidia’s operating margin was actually higher this quarter than in Q3 of fiscal 2025. More importantly, Nvidia converted a staggering 56% of revenue into after-tax net income.

With $31.91 billion in net income generated in the quarter, Nvidia will likely eclipse Alphabet within the next year as the most profitable U.S. company — and probably the most profitable company in the world unless oil prices, and, in turn, Saudi Aramco‘s profits surge.

Nvidia is thriving, but risks remain

Nvidia gets a lot of attention for its stock price, but the performance of the business is what long-term investors should continue to focus on.

There’s simply no company in the world remotely close to Nvidia’s size that is growing earnings this quickly. The combination of industry leadership, high margins, and technology at the epicenter of AI data centers makes Nvidia a compelling long-term investment.

As for the valuation, Nvidia is priced as if it is going to continue growing earnings by double digits quarter over quarter. For that to happen, its key customers — the hyperscalers building out data centers and training AI models — need to keep spending. These hyperscalers must continue to generate strong cloud computing growth from key customers across various sectors. But to do that, compute and AI spending need to be profitable for cloud customers. The whole value chain breaks if end user spending isn’t paying off.

As excellent as Nvidia’s results are, it would be a mistake to overlook the double-edged sword that Nvidia holds as the undisputed leader in data center computing and networking. Nvidia is the single biggest beneficiary of increased AI capital, but it would also be one of the hardest-hit companies during a critical slowdown.

Fortunately for long-term investors, Nvidia has $60.61 billion in cash, cash equivalents, and marketable securities on its balance sheet, compared to just $7.47 billion in long-term debt. Paired with its ultra-high margins, Nvidia is undoubtedly the best-positioned AI company to ride out a slowdown.

Nvidia is still a buy

Nvidia is the poster child of today’s top-heavy, premium-priced market. What separates Nvidia is that the stock’s run-up is supported by solid fundamentals, whereas other pockets of the market have valuations that are arguably overextended.

All told, Nvidia is still a good buy for investors who believe in a sustained ramp-up in hyperscaler AI capital expenditures.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The most jaw-dropping number you may have missed from Nvidia’s latest earnings report appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Is Google about to eat Nvidia’s lunch?
• If you’d invested $100 in Nvidia 10 years ago, here’s how much you’d have today
• 3 ASX thematic ETFs that could boom over the next decade
• Why Nvidia could be a bigger winner in quantum computing than you might think
• Is Nvidia in an AI bubble? Here’s what Jensen Huang says.

Daniel Foelber has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Nvidia. The Motley Fool Australia has recommended Alphabet and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many ASX investors dream of investing in shares as Warren Buffett does. The legendary CEO of Berkshire Hathaway is universally regarded as one of the best stock pickers of all time, thanks to his remarkable returns over a more than 60-year career at the helm of Berkshire.

This is obviously easier said than done, however. Although Buffett is almost impossible to emulate, thanks to his clear and irreplicable natural abilities, he has (most fortunately for fellow investors) been generous with his wisdom and guidance over the years.

One of the traits he has consistently told investors to focus on when evaluating companies is the presence of a wide economic moat. This moat, a term Buffett himself coined, refers to an intrinsic competitive advantage a company can possess. This, like a moat around a castle, protects its profits from marauding competitors.

There isn’t just one form of moat when it comes to stocks, though. It could be a powerful brand that inspires unswerving customer loyalty, like Apple or Nike arguably possess. It could be a price advantage that enables a company to sell goods or services at prices that its competitors cannot match, as Coles Group Ltd (ASX: COL) or Woolworths Group Ltd (ASX: WOW) do. Or it could be a product or service that a company provides that customers find difficult to stop using. Microsoft‘s Office suite or Transurban Group (ASX: TCL)’s toll roads come to mind here.

But finding growing companies with durable moats that will stand the test of time, as well as those trading at the right price, is a hard ask. No investor has perfected the art quite like Buffett.

Investing like Buffett with this ASX ETF

However, one ASX exchange-traded fund (ETF) provides Australian investors with an easy path to replicate Buffett’s successful strategy. It’s the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

This ETF holds a relatively concentrated portfolio (40-60) of US stocks, whose moats have been screened and analysed by Morningstar and deemed attractive at current pricing.

We can see this in some of its current holdings. These include Google-owner Alphabet, Adobe, Caterpillar, and Cadbury-owner Mondelez International.

This ETF’s track record has demonstrated that its Buffett-inspired strategy is effective. Since its inception in June 2015, MOAT units have returned an average of 15.15% per annum. That doesn’t quite match Buffett’s long-term track record, but it’s an impressive figure nonetheless. And well above what the Australian market has delivered over the same timeframe.

The VanEck Morningstar Wide Moat ETF charges a management fee of 0.49% per annum.

The post Invest like Warren Buffett with this ASX ETF appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, Caterpillar, Microsoft, Mondelez International, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Apple, Microsoft, Nike, and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended Transurban Group and Woolworths Group. The Motley Fool Australia has recommended Adobe, Alphabet, Apple, Microsoft, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Advances in the field of artificial intelligence (AI) are having a profound impact on the technology landscape. The ability of these cutting-edge algorithms to automate repetitive chores, streamline tasks, and generate original content is saving time, boosting productivity, and freeing users for higher-value work.

One of the undisputed beneficiaries of the AI revolution has been Nvidia (NASDAQ: NVDA). The company pioneered the graphics processing units (GPUs) that have become the gold standard for AI, providing the computational horsepower necessary to run these advanced generative AI systems. Demand for these chips has fueled a meteoric rise in Nvidia’s sales and profits, driving its stock price higher.

However, reports have emerged that Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) wants a piece of the action and has fired a shot across Nvidia’s bow.

A shot across the bow

Reports emerged this week that Meta Platforms (NASDAQ: META) is in talks with Alphabet to deploy Google’s Tensor Processing Units (TPUs) to run AI models in its data centers as early as 2027. Google began designing these specialized processors in 2018 for use in its own cloud computing operations and has launched numerous upgrades to the TPUs in the ensuing years, which have since been adapted to facilitate AI. Google has never sold these processors, which have only been used in the company’s own data centers.

However, recent reports suggest Google is considering selling TPUs to Meta, which would mark a significant shift in the company’s strategy and could spell trouble for Nvidia if true.

Raw, number-crunching power, but at a price

Nvidia has been the primary beneficiary of the AI revolution. This is in part due to the mass appeal of its GPUs. Not only are these chips arguably the gold standard for AI processing, but they have a distinct advantage compared to many of Nvidia’s rivals. Years ago, the company developed its CUDA architecture, a library of software tools that allowed developers to harness the raw, number-crunching power of GPUs when applying them to their own computationally intensive applications.

This speedy processing comes at a cost, as the immense computational demands of AI tend to consume a great deal of energy in the process. On the other hand, Google’s TPUs were designed to be more specialized than GPUs, making them more energy-efficient. Until now, Google has kept these specialized chips to itself, but the company may be shifting gears as the AI revolution plays out.

Billions of dollars at stake

The fact that Google is considering a change to its strategy may simply come down to dollars and cents. Big tech companies have been shelling out billions of dollars on capital expenditures (capex) in order to position themselves to profit from the proliferation of AI — and that spending continues to escalate.

• Alphabet plans to spend $92 billion on capex in 2025, up from $52 billion in 2024.
• Amazon expects to spend $125 billion, up from $83 billion.
• Meta plans to spend roughly $71 billion, up from $37 billion.
• Microsoft is expected to spend $94 billion in fiscal 2026, up from $65 billion in fiscal 2025 (which ended in July).

The year isn’t over, so the numbers could still increase. All told, big tech is expected to spend as much as $405 billion on AI capex in 2025, which helps to illustrate just how high the stakes are. If Google could capture just a small percentage of that spending, it could boost its own results at the expense of Nvidia.

The fine print

While the news of Google’s possible strategy shift has huge implications, it’s important to put this in context.

While Nvidia doesn’t provide any specific details about its biggest customers, Wall Street has done some digging, and it is widely believed the list includes — you guessed it — Alphabet, Amazon, Meta, and Microsoft. Despite Alphabet developing and running its home-grown TPUs since 2018, it continues to be Nvidia’s biggest customer.

This means that Google still needs Nvidia GPUs, used in tandem with its own TPUs, to get the combination of speed and energy efficiency it needs to compete. It further suggests that, even if the reports are true, and Google’s power-miserly chips cut into Nvidia’s business, the company will still be the dominant player in the data center GPU space.

Current estimates put Nvidia’s market share at 92% of the data center GPU market, according to IoT Analytics. Even if Google succeeds in slicing off some share in this ever-growing market, Nvidia is well-positioned to continue to benefit from the secular tailwinds of AI.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Google about to eat Nvidia’s lunch? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• If you’d invested $100 in Nvidia 10 years ago, here’s how much you’d have today
• 3 ASX thematic ETFs that could boom over the next decade
• Will Alphabet be the world’s next $5 trillion stock?
• Why Nvidia could be a bigger winner in quantum computing than you might think
• Is Nvidia in an AI bubble? Here’s what Jensen Huang says.

Danny Vena, CPA has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Retiring early is a dream for many Australians, but it often feels out of reach.

The truth, however, is that early retirement has less to do with earning a massive salary and far more to do with how early and consistently you invest.

And the most powerful tool working in your favour is compounding.

To show how achievable it can be, let’s see what could happen to a 30-year-old investor who commits to putting $1,000 a month into ASX shares and earns an average return of 10% per year.

It may not feel like much at first, but the numbers become surprisingly exciting over time.

Here’s how compounding can quietly transform your financial future.

Why compounding is the key to early retirement

Compounding is what happens when your returns start earning returns of their own. The longer your money stays invested, the harder it works. In the early years, progress is slow and almost unnoticeable. But as the years roll on, growth snowballs rapidly.

This is why time matters more than timing. A consistent investor who starts early will almost always beat the person who waits for perfect market conditions.

When you reinvest everything and stay patient, your portfolio becomes its own growth engine.

$1,000 a month in ASX shares

If our 30-year-old invests $1,000 every month into a diversified portfolio filled with quality ASX shares like Goodman Group (ASX: GMG), Macquarie Group Ltd (ASX: MQG), and TechnologyOne Ltd (ASX: TNE), and that portfolio compounds at 10% per year, here’s what happens:

After 10 years, they would have contributed $120,000, but their portfolio could be worth around $200,000.

After 20 years, that same investor would have contributed $240,000, but thanks to compounding, the portfolio could grow to around $725,000.

That might be enough for many investors to call the boss and hand in their retirement notice.

But if you want to keep going, then you could end up with an even greater nest egg. If you were to stay invested for a total of 30 years, your portfolio could climb to approximately $2.1 million.

Foolish takeaway

If you’re 30 today, the path to early retirement is far more achievable than it appears. Start now, stay consistent and let compounding turn monthly investments into life-changing wealth.

The next two to three decades will pass either way, the question is whether you want your money growing while they do.

The post How to retire early with ASX shares and the power of compounding appeared first on The Motley Fool Australia.

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• What $100 a week in ASX shares could become in 20 years

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

The Zip Co Ltd (ASX: ZIP) share price has seen enormous volatility over the last few years (as the chart below shows), which can open up a major opportunity for investors willing to buy low when the valuation drops. Despite an 8% rise during Wednesday’s trading, the Zip share price is still down 33% in less than two months.

The buy now, pay later business continues to deliver rapid top-line growth, and it’s becoming increasingly profitable.

In the first quarter of FY26, the company said that its total transaction value (TTV) grew by 38.7% to $3.9 billion, income rose 32.8% to $321.5 million, net bad debts were flat at 1.6% of TTV, and the cash operating profit (EBTDA) grew by 98.1% to $62.8 million.

Two of the most pleasing figures from the company’s quarterly report were 5.3% growth of active customers to 6.4 million and the cash net transaction margin (NTM) improving to 4% (up from 3.9% in the first quarter of FY25).

While growth will fluctuate quarter to quarter, virtually all the numbers were pleasing to see, in my view.

I also think it’s a good vote of confidence in the company’s future that the buy now, pay later business has been utilising its share buyback, suggesting management believes the Zip share price was undervalued.

Is the Zip share price a buy?

UBS currently has a buy rating on Zip shares, with a price target of $5.40. That implies a possible rise of approximately 66% over the next year, if UBS analysts are correct.

The broker was impressed by the pace of cash EBTDA growth last quarter, which was stronger than expected.

UBS noted that the US saw a loss rate that’s trending higher, but that makes sense because of the growth of new customers, but it’s “still at a comfortable level balancing growth and profitability”.

For Australia and New Zealand, UBS noted strong metrics. While ANZ’s receivables growth continues to lag stronger TTV growth, the broker is forecasting a catch-up from here.

Following the release of those numbers for the first quarter, UBS increased its forecasts for TTV and revenue by 3% for the medium term. This led to cash EBITDA upgrades of 9% and 6% for FY26 and FY27, respectively, while earnings per share (EPS) projections were hiked by 19% and 4%, respectively, for FY26 and FY27.

UBS predicts that Zip’s net profit could reach $86 million in FY26 and $154 million in FY27. By FY30, the broker expects that Zip could reach $385 million in net profit.

Taking that all into account, the Zip share price is valued at 27x FY27’s estimated earnings, which doesn’t seem expensive to me at all.

The post Is the Zip share price a buy after falling 33% in less than 2 months? appeared first on The Motley Fool Australia.

More reading

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• Zip share price plunges 30% in a month but fundie tips ‘meaningful upside’ ahead
• $10,000 invested in Zip shares in January is now worth…
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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.

Self-managed super funds (SMSFs) have grown rapidly in popularity in recent years, and for good reason. They give investors more control, more flexibility and, for those willing to manage their own portfolios, the ability to tailor investments to long-term retirement goals.

One of the simplest and most effective ways to build an SMSF portfolio is through exchange-traded funds (ETFs).

They offer instant diversification, low fees and access to global opportunities without the need to pick individual winners.

With that in mind, here are three ASX ETFs that could make strong additions to an SMSF next month.

iShares S&P 500 ETF (ASX: IVV)

For long-term retirement investing, very few options beat broad exposure to the US share market. The iShares S&P 500 ETF gives SMSFs access to 500 of America’s largest listed stocks.

This includes a diverse range of giants such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), JPMorgan (NYSE: JPM) and Home Depot (NYSE: HD).

The US market has historically been one of the world’s strongest performers, driven by innovation, global competitiveness, and deep corporate profitability.

And with the US economy proving more resilient than expected and rate cuts likely in 2026, this ASX ETF could continue to compound strongly through the next market cycle.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For SMSFs looking to focus on quality, the Betashares Global Quality Leaders ETF is well worth considering.

Its portfolio leans heavily into global leaders such as Mastercard (NYSE: MA), ASML (NASDAQ: ASML) and Adobe (NASDAQ: ADBE), with the fund selecting companies that meet strict criteria around profitability and stability.

This makes the Betashares Global Quality Leaders ETF a useful complement to broader index funds, offering exposure to high-performing businesses that tend to hold up better during market downturns.

For SMSF owners who want long-term growth without taking on unnecessary risk, this ASX ETF ticks a lot of boxes. It was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

For SMSFs willing to allocate a portion of their portfolio to higher-growth opportunities, the Betashares Asia Technology Tigers ETF could be worth a look.

It provides exposure to Asia’s most powerful tech companies. Its holdings include Tencent (SEHK: 700), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and Baidu (NASDAQ: BIDU).

Asia’s technology sector remains one of the world’s fastest-growing, fuelled by rising digital adoption, a huge emerging middle class and innovation across cloud computing, semiconductors and artificial intelligence.

While more volatile than the US market, the long-term potential is significant, making this fund an attractive option.

The post 3 top ASX ETFs to buy for your SMSF in December appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Adobe, Amazon, Baidu, Home Depot, JPMorgan Chase, Mastercard, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended ASML, Adobe, Amazon, Mastercard, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

QBE Insurance Group Ltd (ASX: QBE) shares are a popular option for income investors.

But would they be a good pick if you were looking to generate passive income in 2026? Let’s see what one leading broker is saying.

Are QBE shares a buy for passive income in 2026?

According to a note out of Bell Potter, its analysts think that investors should be waiting for a better entry point.

Ahead of the release of its quarterly update this week, a note reveals that the broker has put a hold rating and $21.20 price target on its shares.

Based on its current share price of $19.74, this implies potential upside of 7.4% for investors over the next 12 months.

Commenting on its expectations for this week’s update, the broker said:

The Q3 update is due on 27 Nov. The quarterly statements usually cover written premium, rating changes, catastrophe claims, and investment returns, as well as the outlook and expectations. We anticipate a relatively benign quarter. Short bond yields have been stable, but H1 saw strong returns on risk assets.

Premium rate increases remain positive but have been slowing (Q2 rates were +0.8% vs pcp) and we will be watching whether these have flattened out or continued to soften. Inflation remains present and this may be storing up problems for the combined ratio (COR), so there will be a focus on whether the company continues to expect a COR of ~92.5%.

But what about passive income?

The broker estimates to QBE’s shares will provide investors with dividend yields of 4.8% in FY 2025 and then 4.7% in FY 2026.

That would turn a $10,000 investment into passive income of approximately $480 and $470, respectively.

Commenting on its hold recommendation, Bell Potter said:

At the half year results, we felt the company could be seen to be growing into a softening environment. With a PCA capital ratio of 1.81 (after interim dividend), the company’s capital is at the top of its target range (1.6-1.8x). This capital is being valued by the equity market at a premium to book value and the company is looking for ways to utilise its capital and grow into attractive areas.

We have not changed our assumptions and any change to our forecasts is driven by changing fx rates (we use spot rates as a forecast). We will review our forecasts post the Q3 update, noting the upside with the shares below $20/sh. For now, we maintain our target price at $21.20/sh and keep our HOLD recommendation.

The post Are QBE shares a buy for passive income in 2026? 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.