Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is climbing higher again in Wednesday afternoon trade. Here are five ASX shares that could drive even more growth on the index this year. With a spare $5,000, I’d snap them up today. 

NextDC Ltd (ASX: NXT)

NextDC has a rapidly expanding network of data centres for cloud computing, telecommunications, and AI workloads. It also has physical infrastructure, such as power, cooling, and security. Demand for data usage is expected to grow this year, and I think the company is well-positioned to absorb a good chunk of it. At the time of writing, the shares are trading at $12.92, and it looks like the consensus is that they’ll jump significantly this year.

Coles Group Ltd (ASX: COL)

The supermarket giant could face some headwinds from renewed concerns about inflation this year. But the ASX stock is very defensive, and the business is well-positioned to be resilient under pressure. Its business is strong, and sentiment surrounding the business is positive. At a seven-month low of $20.475 per share, I view Coles as a rare opportunity to buy a decent stock for cheap.

CSL Ltd (ASX: CSL)

The ASX biotech company’s shares have taken several beatings over the past six months after a number of headwinds caused brutal sell-offs. But the company is actively growing its pipeline. This, combined with rocketing global demand for plasma therapies, means we could see plenty more from the company this year. At $142.06, at the time of writing, I think the CSL share price is a screaming buy. 

Droneshield Ltd (ASX: DRO)

The counter drone technology company was one of the fastest-growing stocks on the planet in 2025. And that success has continued through to 2026. Droneshield has faced a few headwinds over the past 12 months, but has also won some impressive contracts valued at $21.7 million. I think the ASX shares are undervalued at the trading price of $3.97.

Qantas Airways Ltd (ASX: QAN)

The ASX airline’s shares were in the spotlight last week after its value tumbled sharply. Investors were disappointed by the flying kangaroo’s first-half FY26 results, and it sent the share price crashing. Uncertainty around the outlook for fuel prices has also contributed to the downturn, but analysts are bullish about steep upside once global uncertainty cools. At the time of writing, Qantas shares are cheap at $8.735 a piece.

The post 5 ASX shares I’d buy with $5,000 today appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Four ASX healthcare stocks which are looking cheap
• DroneShield has made a major announcement regarding its European operations
• What are experts saying about EOS and DroneShield shares after yesterday’s recovery?
• 4 ASX tech shares tipped to jump up to 140% higher

Motley Fool contributor Samantha Menzies 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 CSL and DroneShield and is short shares of DroneShield. 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.

ASX blue-chip shares are some of the best contenders for providing reliable passive income. Resilient products allow for consistent dividend payments and good dividend yields.

Businesses with a strong market share, cost advantages, larger margins, and a good outlook can be very appealing investments. Rising profits can lead to capital growth over time and, typically, dividend growth too.

With their current dividend yields and appealing prospects for further growth, I’m optimistic about what the following two businesses can accomplish.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia and it’s steadily growing its exposure to other healthcare businesses.

The ASX blue-chip share is delivering exactly the growth I’d want to see if I were a shareholder.

In the FY26 half-year result, the business reported that it added 38,300 net resident policyholders and 1,500 net non-resident policy units. These are key metrics which maintain/grow its market share, add to scale advantages and hopefully deliver rising profit margins over time.

HY26 revenue climbed by 5.5%, group operating profit increased by 6% to $360.1 million and the interim dividend per share was increased by 6.4% to 8.3 cents per share.

I view healthcare as a defensive sector and health insurance is an effective way to invest across a broad range of healthcare areas, including growing demand for healthcare services amid Australia’s ageing and growing population.

I’m expecting dividend growth to continue for the foreseeable future. Its latest two declared dividends comes to a grossed-up dividend yield of 6.4%, including franking credits. That’s a great starting point for income, in my view.

Telstra Group Ltd (ASX: TLS)

Telstra is a leading ASX telecommunication share that has built an impressive 5G network that helps it continue to stay ahead of competitors.

Its excellent mobile division is key for delivering long-term growth and there was good news across the board in the FY26 half-year result. The average revenue per user (ARPU) rose by 5.1% year over year and mobile handheld users increased by 135,000, with growth in both metrics across postpaid handheld, prepaid handheld and wholesale users.

These growth figures allowed the business to deliver net profit growth of 9.4% to $10.5 billion. This saw earnings per share (EPS) grow by 11.2% and the dividend per share increase by 10.5% to 10.5 cents. Cash EPS increased by 19.7% to 14 cents.

It seems to me like the ASX blue-chip share is very effectively balancing investing for growth, delivering net profit growth and rewarding shareholders.

If I assume that Telstra will repeat the same dividend in another six months, it would have a grossed-up dividend yield of approximately 5.8% for FY26, including franking credits, at the time of writing.

With Australia becoming increasingly digital, I believe that Telstra will be able to benefit from that tailwind and continue winning new subscribers. I’m also optimistic the business can continue growing its wireless broadband subscribe count, providing 5G-powered broadband, which means capturing the margin that the NBN is currently taking.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• 5 ASX dividend stocks to buy with $25,000 in March
• How to turn $20,000 into lifelong passive income with ASX shares
• 3 ASX shares I would buy to protect against a recession
• Why I’d invest $5,000 in these ASX dividend shares
• Worried about a bear market in 2026? 3 ASX shares for peace of mind

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

The Fortescue Ltd (ASX: FMG) share price is climbing higher in lunchtime trade on Wednesday. At the time of writing, the iron ore and copper miner’s stock is 3.09% higher at $19.86 a piece.

Today’s uptick means the shares have recovered some of the losses seen so far in 2026. For the year to date, the Fortescue share price is now 10.32% lower, but it’s 26.46% higher than this time 12 months ago.

While today’s share price gain is great news for Fortescue, its investors should prepare for the miner to have a few turbulent months ahead.

Here are four reasons why.

1. Fortescue is heavily reliant on iron ore prices

Although Fortescue has a copper footprint, the miner primarily mines and exports iron ore. This means the stock is heavily reliant on the price of iron ore and is subject to any price fluctuations that the material might have.

The price of iron ore is expected to soften through 2026 and then gradually decline through to 2030 as supply increases and Chinese steel demand tapers off.

A sharp fall in iron ore prices could prompt investors to exit the stock quickly, sending the Fortescue share price tumbling. Equally, a spike in iron ore could see investors snap up the stock and send it flying.

2. Its dividends may fluctuate

Fortescue is a popular stock for its high-yielding dividends. The miner pays investors a fully-franked dividend yield of 6.23%.

Although the miner is a low-cost producer, meaning it can remain profitable even when iron ore falls, its dividends may fluctuate wildly. 

If the price of iron ore softens in the next few months, markets might begin pricing in lower dividends, which can lead to short-term selling.

3. The company is investing heavily in expansion and growth

Fortescue is continually investing in business expansion. For example, just yesterday it announced that it has now completed the acquisition of all the shares it did not yet already own in Canadian-listed Alta Copper. The move is part of its plan to tap into growing global demand for the red metal and expand its footprint in Latin America.

The company is focused on building significant renewable energy infrastructure, is focused on decarbonisation and expanding its green energy projects, and plans to develop and expand its existing iron ore sites to improve production efficiency.

These projects are positive for long-term profitability, but they require significant capital, which could raise concerns about the company’s near-term financials.

4. Analysts aren’t sure about the outlook of the Fortescue share price

TradingView data shows that 10 out of 17 analysts have a hold rating on Fortescue shares. The remaining seven have a sell or strong sell rating on the stock.

The average target price is $19.86 a piece, which implies a 0.1% downside at the time of writing. However, analysts expect the Fortescue share price to range from $23.11 to $14.96 over the next 12 months. That’s a swing between a 16.29% upside and a 24.72% downside at the time of writing.

Even the experts can’t agree on where the stock will go next!

The post Here’s why the Fortescue share price may have a turbulent few months appeared first on The Motley Fool Australia.

More reading

• 5 high-yield ASX dividend shares paying 6% to 10%
• Australia’s next great ASX mining boom: Are we already in it?
• Fortescue shares lifting off today amid big copper news
• 1 beaten-down ASX share to consider buying today, and 5 I’m shunning for now
• Here’s the earnings forecast out to 2030 for Fortescue shares

Motley Fool contributor Samantha Menzies 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.

Harvey Norman Holdings Ltd (ASX: HVN) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) electronics and home furnishings retail stock closed yesterday trading for $5.41. In early afternoon trade on Wednesday, shares are swapping hands for $5.38 each, down 0.6%.

For some context, the ASX 200 is up 0.4% at this same time.

Harvey Norman shares have struggled in 2026, now down 23.5% year to date. However, after a strong run in 2025, the ASX 200 stock remains up 5.1% over 12 months.

Atop those capital gains, Harvey Norman also paid out (or shortly will pay out) two fully-franked dividends over the full year, totalling 29 cents a share. This sees the stock trading on a 5.4% fully-franked dividend yield (partly trailing, partly pending).

But despite that appealing passive income, Investor Pulse’s Mark Elzayed believes investors would do well to sell the stock (courtesy of The Bull).

Time to sell Harvey Norman shares?

“Much of the operational recovery now appears reflected in the retail giant’s share price,” Elzayed said.

Commenting on the company’s performance, he noted:

Fiscal year 2025 results and early fiscal year 2026 trading updates confirmed solid aggregated sales growth, aided by an improving UK performance and continuing strength in Europe.

As for his sell recommendation on Harvey Norman shares, Elzayed said, “Yet after a material re-rating over the past year, we see limited room for positive surprises. Competition in the consumer electronics category is intense.”

And that “appealing” passive income isn’t enough to sway his recommendation.

“While the dividend yield remains appealing, consumer discretionary sector headwinds leave valuation multiples looking extended, in our view,” Elzayed concluded.

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

Harvey Norman reported its half-year (H1 FY 2026) results on 27 February.

Highlights for the six months to 31 December included a 6.9% year-on-year increase in sales revenue to $5.16 billion, while earnings before interest and tax (EBIT) increased by 14.4% to $527.5 million.

On the bottom line, the company achieved a 15.2% increase in net profit after tax (NPAT) to $321.9 million.

“This is a very solid first-half result, with profit growth driven by higher system sales, disciplined cost control and strong performances across our franchising operations and overseas retail businesses,” chairman Gerry Harvey said.

But with market expectations clearly high, Harvey Norman shares closed down 9% on the day of the results release.

The post Sell alert! Why this expert is calling time on Harvey Norman shares appeared first on The Motley Fool Australia.

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

A senior resources executive is emerging as a potential candidate in leadership discussions involving two of Australia’s biggest companies.

Recent reports suggest Geraldine Slattery, currently president of Australia for BHP Group Ltd (ASX: BHP), is being considered for the chief executive role at Woodside Energy Group Ltd (ASX: WDS).

The situation has drawn attention because Slattery is also viewed internally as a possible successor to current BHP chief executive Mike Henry.

At the time of writing, the BHP share price is $51.77, up 1.05%, while the Woodside share price is $30.07, down 0.36%.

Let’s take a closer look at what we know so far.

A leadership crossroads for two resources giants

Slattery is widely seen as one of Australia’s most experienced resources executives, with senior roles across both the mining and energy sectors.

She currently leads BHP’s Australian operations and has played a key role in shaping the company’s domestic strategy.

Speculation has been building around BHP’s future leadership, with Slattery reportedly viewed as a leading internal candidate if Mike Henry eventually steps down.

If appointed, she would become the first woman to lead BHP in the company’s 140-year history.

At the same time, her name has also been linked to Woodside’s search for a permanent chief executive.

The oil and gas producer is continuing its leadership transition following the departure of former CEO Meg O’Neill.

Woodside weighing internal and external candidates

Woodside’s board is expected to appoint a new chief executive in the coming months as it reviews both internal and external candidates.

Several senior leaders inside the company are already seen as strong contenders.

These include acting chief executive Liz Westcott, chief commercial officer Mark Abbotsford, and chief operating officer for international operations Daniel Kalms.

A number of external candidates have also been mentioned in industry discussions.

Slattery is considered one of the leading outside contenders given her experience working across major energy assets, including projects previously operated by BHP.

Another name linked to the process is Nigel Hearne, chief operating officer at Harbour Energy plc (LSE: HBR) and a former Chevron Corporation (NYSE: CVX) executive.

Leadership decision could shape Woodside’s next phase

Whoever takes the role will inherit a company that has expanded significantly in recent years.

Woodside’s merger with BHP’s petroleum business reshaped the company and created one of the largest independent oil and gas producers listed on the ASX.

The company is now progressing major developments including the Scarborough gas project and the Pluto Train 2 LNG expansion.

These projects are expected to play an important role in lifting production in the years ahead.

Industry observers say the next chief executive will help guide Woodside through the next phase of global energy demand.

The post BHP and Woodside linked in CEO race as top executive emerges as contender appeared first on The Motley Fool Australia.

More reading

• Up 30% in a month: Is it too late to buy the BetaShares Crude Oil ETF (OOO)?
• 3 Australian shares to buy if the ASX pulls back 10%
• Are these ASX energy shares still a buy after jumping 20% (or more)?
• How much could the BHP share price rise in the next year?
• 5 key drivers of the new commodities ‘supercycle’: experts

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

If you are looking for new additions to your income portfolio, then read on!

That’s because the team at Bell Potter has just named a number of ASX dividend shares as best buys for the month of March.

Listed below are two that it is bullish on. Here’s what it is saying about them:

COG Financial Services Ltd (ASX: COG)

This asset finance company could be a best buy according to Bell Potter.

The broker believes it is an ASX dividend share to buy due to its external accumulation strategy, which it expects to support attractive dividend yields. Bell Potter said:

COG Financial is a diversified conglomerate of distribution businesses focused on Australia. The group principally provides access to credit providers (and related insurance) for yellow commercial goods.

This is delivered through a nationwide broker net. In addition, the company has some balance sheet funded direct originations, with a focus on capturing some of the overflow for non-prime chattel mortgages. A proportion of this is offered under peer-to-peer lending. Following the acquisition of Paywise, the company has articulated an external accumulation strategy, focussed on novated leasing and salary packaging services.

As for income, Bell Potter is forecasting fully franked dividends of 7 cents per share in FY 2026 and then 8.9 cents per share in FY 2027. Based on its current share price of $1.35, this would mean dividend yields of 5.2% and 6.6%, respectively, for income investors.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Bell Potter is bullish on is youth fashion retailer Universal Store.

It thinks its shares are undervalued based on its current PE ratio and positive medium-term growth outlook. It explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~14.1x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

With respect to dividends, Bell Potter is expecting the company to reward shareholders with fully franked payouts of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.64, this would mean attractive dividend yields of 4.3% and 4.8%, respectively, over the next two financial years.

The post Bell Potter names more of the best ASX dividend shares to buy this month appeared first on The Motley Fool Australia.

More reading

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• How to invest $10,000 to aim for a 15% dividend yield
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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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a lucrative month to own the BetaShares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO). Exactly one month ago, this exchange-traded fund (ETF) was asking $5.72 per unit. Today, those same units are fetching $7.47 each at the time of writing. That’s up 30.6% in four weeks.

It’s no secret why this oil-based ETF has fared so well.

A futures ETF?

The BetaShares Crude Oil ETF is a rather unique ASX fund. Rather than holding a portfolio of underlying stocks or bonds, as most ETFs do, it instead offers investors exposure to a portfolio of futures contracts. Futures contracts are derivatives that represent the value of a commodity, to be delivered in the future, at a price determined in the past or present. They are commonly used by both businesses and investors to mitigate risks associated with volatile commodities.

To illustrate, an oil-based futures contract might stipulate that 1,000 barrels of crude oil are to be delivered on 31 December 2026 at a price of US$60 per barrel. If the contract was made when oil prices were at US$60 a barrel, and the oil price rises to US$80 soon after, then that contract’s value just increased. Of course, it works the other way as well.

The OOO ETF holds a basket of these contracts. Given the sharp increase in the price of oil this week as a result of the new US-Iran war, it’s no surprise to see the value of OOO units rise rapidly in response.

We’ve also seen other energy-focused ASX ETFs react similarly on the ASX this week. One example is the BetaShares Global Energy Companies Currency Hedged ETF (ASX: FUEL). This ASX ETF doesn’t hold futures contracts. Instead, it opts for the traditional ETF model of holding an underlying portfolio of global energy stocks like Chevron, ConocoPhillips, Shell and ExxonMobil. FUEL units have risen by almost 6% over the past month.

Is it too late to buy funds like OOO and FUEL?

Investors might be looking at these gains and wondering whether it’s worth jumping on this train.

While it might be tempting to look at what’s going on with oil prices and conclude that either OOO or FUEL might be a good way to insulate your ASX share portfolios, I think that would be a mistake.

Oil is a highly volatile commodity at the best of times. But this volatility has reached unprecedented heights over the past week. On any given day now it seems, oil can move by double-digits in either direction. Whilst you might be able to time a trade perfectly to take advantage of one of these upswings, there’s just as likely a chance that you can be caught out by a downturn. You may as well go down to the casino and put it all on red.

Further, commodity-specific ETFs like OOO and FUEL tend to charge relatively high management fees and deliver low long-term gains. At least compared to market-wide index funds.

As such, I think ASX investors would be better off finding high-quality companies that compound their earnings every year and buying them at a good price over trying to take advantage of the whipsawing energy prices that we are seeing.

The post Up 30% in a month: Is it too late to buy the BetaShares Crude Oil ETF (OOO)? appeared first on The Motley Fool Australia.

More reading

• BHP and Woodside linked in CEO race as top executive emerges as contender
• Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback
• If you think global instability will persist, these ASX ETFs might be for you
• Oil tumbles after nearing US$120. Here’s why prices are pulling back
• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging

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 Chevron. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ConocoPhillips. 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.

When I think about long-term investments, I usually look for companies that can benefit from powerful structural trends over many years.

For me, lithium sits right in the middle of one of those trends. The global shift toward electric vehicles, battery storage, and electrification more broadly is still in its early stages. While lithium prices can be volatile in the short term, the long-term demand outlook for battery materials remains compelling.

That’s why I think PLS Group Ltd (ASX: PLS) could be a share worth buying and holding for the next decade.

A world-class lithium asset

One of the biggest reasons I like PLS is the quality of its core asset.

The company owns the Pilgangoora operation in Western Australia, which is one of the largest independent hard-rock lithium operations in the world. Large-scale, long-life assets like this are incredibly valuable in the resources sector because they can generate strong cash flow across multiple commodity cycles.

PLS has also demonstrated that it can run this asset efficiently. In its recent interim results, production increased to 432.8k tonnes, and sales reached 446k tonnes for the half year, reflecting continued operational strength.

What stands out to me is that the company continues to improve its operating performance even as lithium markets fluctuate. Unit operating costs declined while realised prices improved significantly, highlighting the strength of the business when conditions turn favourable.

A balance sheet built for cycles

Commodity companies often struggle when prices fall, but PLS appears well-positioned to handle those periods.

The company ended the first half with roughly $954 million in cash and total liquidity of about $1.6 billion.

That financial strength matters in a cyclical industry like lithium. It gives management flexibility to continue investing through the cycle rather than being forced to cut spending when prices are weak.

In my view, that kind of balance sheet resilience is exactly what long-term investors want to see in a mining company.

A clever expansion into South America

Another reason I think PLS shares look attractive over the long term is the company’s expansion strategy.

About a year ago, the company acquired Latin Resources at what many would consider the bottom of the lithium cycle. That deal cost approximately $560 million and gave PLS exposure to the Colina lithium project in Brazil.

Timing matters enormously in the resources sector. When lithium prices were depressed, assets across the industry were being valued far more conservatively.

If the same acquisition had been attempted today, after the strong rebound in lithium prices, I suspect it would have cost significantly more.

For PLS, that acquisition creates a potential second growth engine in South America while the Pilgangoora operation continues generating cash.

A business tied to the energy transition

Over the next decade, global demand for lithium is expected to rise significantly as electric vehicle adoption grows and battery storage becomes more widespread.

No one can predict exactly how lithium prices will move from year to year. However, companies that control large, low-cost deposits are often best positioned to benefit from long-term demand growth.

PLS already has scale, established partnerships across the lithium supply chain, and a strong operational track record.

Foolish Takeaway

Lithium is not a low-risk industry. Prices will rise and fall, and sentiment can swing quickly.

But when I look beyond the short-term noise, PLS stands out as a company with world-class assets, a strong balance sheet, and growing global exposure.

If I were looking to buy and hold a lithium share for the next 10 years, PLS would be high on my list.

The post Why I’d buy and hold PLS shares for 10 years appeared first on The Motley Fool Australia.

More reading

• Australia’s next great ASX mining boom: Are we already in it?
• 3 shares dumped from the ASX 200 index (and 3 new additions)
• 1 beaten-down ASX share to consider buying today, and 5 I’m shunning for now
• If I’d bought 1,000 PLS shares a year ago, would I have made money?
• $5,000 to invest? Here’s how I’d split it across the ASX

Motley Fool contributor Grace Alvino 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.

Wesfarmers Ltd (ASX: WES) shares are edging lower today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $75.46. During the Wednesday lunch hour, shares are swapping hands for $75.25 apiece, down 0.3%.

For some context, the ASX 200 is up 0.4% at this same time.

Taking a step back, Wesfarmers shares have gained 5.3% over the past 12 months, underperforming the 10.7% one-year gains posted by the benchmark index.

But that doesn’t include the passive income Wesfarmers delivered to shareholders during this time.

Over the past full year, the company paid out $2.53 a share in fully franked dividends. This sees Wesfarmers stock trading at a fully franked trailing dividend yield of 3.4%.

Which brings us back to our headline question.

With the ASX 200 stock achieving 9% half year profit growth, is the company a good buy today?

Should you buy Wesfarmers shares today?

Investor Pulse’s Mark Elzayed recently ran his slide rule over the stock (courtesy of The Bull).

Elzayed currently has a hold recommendation on Wesfarmers shares.

“Despite the recent market turbulence, we continue to hold this industrial conglomerate, reflecting group resilience amid consistency among its core retail divisions,” he said.

As for that $1.6 billion half year NPAT growth, Elzayed noted:

The recent first half result for fiscal year 2026 reinforced our view, with statutory net profit after tax of $1.603 billion up 9.3% on the prior corresponding period. Bunnings and Kmart Group sustained sales momentum by leaning into their low price positioning at a time when household budgets remain under pressure.

And, as you may be aware, Wesfarmers shares have exposure to far more than just the retail holdings.

According to Elzayed:

Wesfarmers chemicals, energy and fertiliser division has also become a more meaningful contributor, helped by firmer lithium prices and the ramp up of the Covalent Lithium refinery, which is now producing battery grade lithium hydroxide.

What’s the latest from the ASX 200 conglomerate?

Wesfarmers reported its half-year results on 19 February.

Atop the profit growth Elzayed mentioned up top, the company achieved a 3.1% year-on-year increase in revenue to $24.21 billion.

And earnings before interest and tax (EBIT) increased by 8.4% to $2.49 billion.

“Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF,” Wesfarmers managing director Rob Scott said.

Despite those solid results, Wesfarmers shares closed down 5.6% on the day of the release.

The post With half year profits up 9% to $1.6 billion, are Wesfarmers shares a buy? appeared first on The Motley Fool Australia.

More reading

• 3 Australian shares to buy if the ASX pulls back 10%
• Expert gives its verdict on 3 popular ASX 200 shares
• 3 high-quality ASX 200 shares I think Warren Buffett would probably love
• What I’d buy if the ASX share market crashes
• Here’s the dividend forecast out to 2030 for Wesfarmers shares

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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Eagers Automotive Ltd (ASX: APE)

According to a note out of Bell Potter, its analysts have upgraded this automotive retailer’s shares to a buy rating with a trimmed price target of $28.50. The broker made the move on valuation grounds following a period of share price weakness. Bell Potter continues to believe that the company can achieve its guidance in FY 2026 despite a softer start to the year. It notes that the softer start to the year has been driven by Toyota supply chain issues, which are expected to be resolved in the near term. In light of this, at 20x earnings, Bell Potter thinks that the company’s shares are attractively priced at present. The Eagers Automotive share price is trading at $21.14 on Wednesday.

Qantas Airways Ltd (ASX: QAN)

A note out of Citi reveals that its analysts have retained their buy rating and $12.10 price target on this airline operator’s shares. The broker highlights that Qantas’ shares have fallen heavily since the start of the war in the Middle East. It believes this implies that the disruption will last far longer than the broker’s base case assumption. And while it concedes that there will be some impact to earnings from the conflict, Citi doesn’t believe it will be as bad as the market is making it out to be. As a result, the broker thinks investors should be buying the dip. The Qantas share price is fetching $8.72 at the time of writing.

Zip Co Ltd (ASX: ZIP)

Analysts at Macquarie have retained their buy rating and $3.35 price target on this buy now pay later provider’s shares. According to the note, the broker has been looking at Zip’s business model and remains confident. It thinks investors should look past its moderating operating leverage and focus on its medium-term growth outlook. Macquarie is expecting Zip’s U.S. net transaction margin to improve sequentially in both the March quarter and June quarter. And while loan losses are rising relative to total transaction value, Macquarie points out that this is because Zip is bringing on new users. The company can quickly remove defaulters, boosting its loan loss metrics. The Zip share price is trading at $1.72 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.