Tag: Stock pick

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price has dropped another 4.6% lower in Tuesday morning trade. At the time of writing, the shares are trading at $8.53 each.

The shares are 509% higher than just 12 months ago. But since peaking at an all-time high of $11.74 in mid-March, the EOS share price has slumped by over 27%. And it’s down 14% for the year to date.

What happened to the EOS share price this month?

The Aussie defence company, which develops and produces advanced electro-optic technologies, benefited from surging demand for exposure to the defence sector in late 2025 and early 2026. 

Ongoing conflict in the Middle East and rising geopolitical tensions have led to an uptick in government defence spending. This includes the development of missiles or submarines, as well as technologies such as drones, AI, and electronic warfare.

As a result of strong demand for defence technology, EOS has won several major contracts over the past few months, helping build investor confidence and sending the share price soaring to an all-time high earlier this month.

But as quickly as the share price spiked, it has slumped back down amid strong headwinds. 

Two weeks ago, investors were spooked by news that an EOS announcement on 15 December 2025 regarding a conditional US$80 million high-energy laser contract failed to adequately disclose market-sensitive information.

Less than a week later, the company announced significant insider selling after the exercise of options. EOS announced that its CEO, CFO, and other senior executives had exercised millions of share options and are now planning to sell a significant portion of those shares. In total, management exercised more than 3.4 million options under the company’s long-term incentive plan, converting them into ordinary shares, and they also flagged their intention to sell. 

The news caught investors off-guard, and the volume of shares being disposed of raised questions. 

Investor selling ramped up quickly and sent the share price crashing.

Is this the end of the road for the EOS share price rally?

Analysts don’t seem to think so.

Despite the latest share price decline, analysts are still bullish that there is still some more upside ahead for the EOS share price. All four analysts on TradingView data have a strong buy consensus. 

The maximum target price is $16, which implies a potential 82% upside at the time of writing. Even the minimum $9.40 target price represents a potential upside of 12% at the time of writing.

The post Down another 5% today: Is the party finally over for the EOS share price? appeared first on The Motley Fool Australia.

More reading

• Can EOS shares break a new all-time high again?
• EOS shares tumble 8% as insider selling ramps up
• Why EOS, Latitude, Northern Star, and Rio Tinto shares are falling today
• Why EBR, EOS, Racura, and Woodside shares are rising today
• Electro Optic Systems just had its DroneShield moment. Here’s what investors should know

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 Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is recovering on Tuesday and pushing higher. In afternoon trade, the benchmark index is up 0.3% to 8,393.3 points.

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

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 3% to $48.56. This follows a rise in copper and iron ore prices overnight after the US postponed military strikes on Iran. It isn’t just BHP that is rising on Tuesday. A good number of mining shares are pushing higher, which has driven the S&P/ASX 200 Resources index 2.3% higher at the time of writing.

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 19% to 73 cents. This morning, this healthcare technology company announced that its EchoSolv HF technology would be deployed via the Mayo Clinic Platform – Solutions Studio Program. This will enable Mayo Hospitals and 80 external partner hospitals to participate. The company’s CEO, Dustin Haines, said: “The expansion of our agreement with Mayo Clinic is one of the more strategically important milestones in the Company’s history. A more equitable arrangement with one of the most respected hospital systems in the US, as we move closer to FDA clearance and commercial deployment, leaves us well positioned for the months ahead.”

Life360 Inc (ASX: 360)

The Life360 share price is up 3% to $19.32. Investors have been buying the family safety technology company’s shares following another rise by its Nasdaq listed shares overnight. Despite this, Life360 shares are still down 40% since the start of the year amid broad weakness in the tech sector. Last week, Morgan Stanley put an overweight rating and $30.00 price target on its shares. This implies potential upside of 55% for investors over the next 12 months.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up almost 3% to $8.37. This has been driven by a pullback in oil prices overnight amid optimism that the US and Iran could soon commence peace talks. Given that fuel is one of Qantas’ largest operating expenses, any relief in oil prices will be good news for future profitability. Last week, Macquarie Group Ltd (ASX: MQG) put an outperform rating and $11.60 price target on Qantas’ shares. This suggests that upside of almost 40% is possible from current levels.

The post Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• Why is the Woodside share price getting smashed on Tuesday?
• Which ASX biotech’s shares are rocketing higher on big US news?
• 5 things to watch on the ASX 200 on Tuesday
• Where to from here for BHP shares after crashing over 20%?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.4% to 8,398.6 points.

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

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 5% to $3.63. This appears to have been driven by a de-escalation in Middle East tensions. Some investors may believe that this could mean less demand for counter-drone technology solutions than expected. Not even the release of an announcement has stopped its shares from falling. DroneShield announced new interoperability between its DroneSentry-C2 command-and-control software and optical sensing technologies from OpenWorks Engineering. DroneShield’s chief product officer, Angus Bean, said: “Operators need clarity, not complexity. Expanding our ecosystem with additional optical sensing technologies from OpenWorks Engineering gives customers more options to tailor their deployments, while SensorFusionAI ensures all inputs are combined into a clear, operational picture.”

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 3% to $16.75. This is despite there being no news out of the quick service restaurant operator. However, with its shares among the most shorted on the Australian share market, it is possible that short sellers have been increasing their positions and putting pressure on its share price.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 1.5% to $7.32. This may have been driven by a broker note out of Morgan Stanley this morning. It has downgraded the insurance giant’s shares to an underweight rating with a $6.60 price target. Morgan Stanley has concerns over AI disruption, believing that AI agents could put pressure on premiums by finding consumers better prices.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is down almost 3% to 28.2 cents. This department store operator’s shares were up as much as 17% today before taking an almighty U-turn. After initially responding positively to Myer’s half-year results, the market appears to have seen something it didn’t like. Myer reported total sales growth of 24.5% to $2,279.5 million including acquired businesses. On a pro forma basis, which adjusts for the inclusion of Apparel Brands in both periods, sales were up 2.1%. The company’s underlying net profit after tax climbed 21.7% to $51.7 million, allowing the board to declare a fully franked interim dividend of 1.5 cents per share.

The post Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today appeared first on The Motley Fool Australia.

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• What’s going on with DroneShield shares today?
• Guess which ASX 300 stock is jumping 17% on strong results
• 2 ASX shares that I rate as buys today for both growth and dividends!
• Buy, hold, sell: Bapcor, Challenger, and DroneShield shares
• The DroneShield share price has soared 266% in a year. Time to take profits?

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 DroneShield and is short shares of DroneShield. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

KMD Brands Ltd (ASX: KMD) has rejected an offer from US surfwear company Stokehouse Unlimited to buy its Rip Curl business and list it separately on the share market.

KMD said in a statement to the ASX on Tuesday that it had engaged advisers to assess the concept put forward by Stokehouse, “which involved KMD Brands de-merging Rip Curl into a separate NZX and ASX listed company and subsequently merging Rip Curl with Stokehouse”.

KMD said further in its statement to the ASX:

Stokehouse proposed that after the de-merger of Rip Curl from KMD Brands, and its merger with Stokehouse, Stokehouse shareholders would own 22% of the merged entity. This proposed ownership structure is misaligned with the earnings delivered by the Stokehouse and Rip Curl businesses given Stokehouse’s immaterial contribution to combined EBITDA, and would unfairly dilute KMD Brands shareholders. In addition, Mr. Naude, the current CEO of Stokehouse, would be Chief Executive of the combined business, and he would lead the business from California.

Not interested in a deal

KMD said that its board had carefully evaluated the proposal and determined it was not in the best interests of shareholders, “as it does not provide a clear path to enhance shareholder value, as compared to the continued execution of the Next Level transformation”.

The board said there were several reasons for its decision, including that the suite of brands within its own business was highly complementary.

They also said the Stokehouse business had limited scale and profitability and “has significant debt relative to its earnings profile”.

They also said:

There is no new capital being introduced by Stokehouse, and instead the transaction concept relies on a large capital raising by the smaller demerged Rip Curl-Stokehouse entity which would create significant further dilution for KMD Brands shareholders in addition to the dilution they would suffer through Stokehouse shareholders owning 22% of the demerged Rip Curl entity.

No value being created

KMD brands Chair David Kirk said the Stokehouse proposal, “creates no value for shareholders and is challenging from an execution standpoint”.

In addition, the combination of multiple surf brands that directly compete with each other is not a strategy that has proven effective. Our focus remains on executing the Next Level strategy, which has already gained momentum.

KMD Brands shares were 3.2% higher at 16 cents on Tuesday morning. The company’s shares were changing hands at a 12-month low of 15.5 cents on Monday.

The company was valued at $110.3 million at the close of trade on Monday.

KMD will release its first-half results to the market tomorrow, 25 March.

The post Which ASX retail company just rejected a deal to buy its Rip Curl stores? appeared first on The Motley Fool Australia.

More reading

• Down another 5% today: Is the party finally over for the EOS share price?
• Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today
• Why DroneShield, Guzman Y Gomez, IAG, and Myer shares are falling today
• This ASX stock is up 2,700% in a year. Here’s what’s driving the dip today
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks

Motley Fool contributor Cameron England 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 Sunrise Energy Metals Ltd (ASX: SRL) share price is moving lower on Tuesday following a fresh announcement from the company.

At the time of writing, shares are down 2.23% to $7.44. Despite today’s pullback, the stock remains one of the strongest performers on the ASX, up roughly 2,700% over the past 12 months.

So, what did the company announce, and why are investors taking some money off the table?

New geothermal partnership announced

According to the release, Sunrise has teamed up with US-based I-Pulse and Greenvale Mining to deploy a new drilling method in the Millungera Basin in Queensland.

Under the deal, I-Pulse will run the project and spend an initial US$5 million to earn an 80% stake. Sunrise will keep 15%, while Greenvale will hold the remaining 5%.

The aim is to develop geothermal energy using I-Pulse’s drilling technology, which can reach deep underground more efficiently than traditional methods.

Management said early work suggests the Millungera Basin could be one of the most promising geothermal areas in Australia.

Large-scale energy potential highlighted

One of the main takeaways from the update is just how large the potential resource could be.

Data from the Geological Survey of Queensland suggests the basin may hold more than 611,000 petajoules of stored energy. That is roughly equal to around 600 times Australia’s annual electricity use.

Results from existing wells also show higher-than-average heat levels, which supports the case for a large geothermal system.

From here, the companies plan to carry out more studies and drilling to better understand the resource. The goal is to develop it into a steady, emissions-free power source.

Why the share price is falling

Despite the size of the opportunity, today’s share price drop is not unusual.

After a strong run over the past year, it is common to see some investors take profits. The stock has also eased back in recent weeks, which suggests the upward momentum has slowed.

It is also worth noting that the announcement focuses on long-term potential rather than near-term earnings. Without immediate revenue or cash flow, some investors may be less willing to buy in at current levels.

What to watch next

This update adds to Sunrise’s bigger plans, which already include its battery materials projects in New South Wales.

The geothermal deal opens up a new growth opportunity, but it is still early and will take time to develop. More testing, drilling, and funding will likely be needed before it moves further ahead.

In the near term, attention will turn to further updates on exploration work, drilling results, and the project’s commercial development.

The post This ASX stock is up 2,700% in a year. Here’s what’s driving the dip today appeared first on The Motley Fool Australia.

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• 3 lesser-known ASX shares making investors an outrageous amount of money

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 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.

It doesn’t happen often.

A group of high-quality ASX tech stocks, many of them with global businesses, all falling heavily at the same time.

But that’s exactly what we’re seeing right now.

Driven by concerns around interest rates, valuation resets, and, more recently, artificial intelligence (AI) disruption, a number of well-known names have been pushed 35% to 60% below their highs.

That doesn’t automatically make them buys. But it does make them worth a closer look.

Here are five I think stand out.

Xero Ltd (ASX: XRO)

Xero has gone from market darling to market concern in a relatively short period of time. But I still see a global accounting platform with strong positioning among small and medium-sized businesses.

It continues to grow its subscriber base and expand internationally, particularly in markets like the UK and North America.

The key for me is that accounting software is deeply embedded in operations. Once a business is using Xero, switching is difficult.

The share price may be down significantly, but the long-term growth opportunity still looks intact.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a very different kind of tech company. It operates in medical imaging software, supplying hospitals and healthcare providers with high-performance diagnostic tools.

What stands out is its reputation and track record. The company has consistently won large contracts, particularly in the United States.

Healthcare isn’t a short-term trend. Demand for imaging and diagnostics continues to grow, supported by ageing populations and increasing healthcare needs.

After a sharp share price decline, I see an opportunity to buy a high-quality business with strong long-term potential at a better price.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the quieter success stories on the ASX. It provides enterprise software to government agencies, universities, and large organisations, with a strong focus on recurring revenue.

What I like here is the consistency. The company has steadily grown its earnings over time while transitioning customers to its cloud platform.

That creates visibility and predictability, which is valuable in any environment.

It may not attract the same attention as some other tech names, but I think its reliability is part of what makes it appealing.

Life360 Inc. (ASX: 360)

Life360 brings a different type of growth exposure. Its app connects families through location sharing and safety features, and it has been building a large global user base.

The business is now focused on monetisation, converting users into paying subscribers, and expanding its product offering.

There’s still execution risk here, particularly with recent acquisitions, but I think the opportunity is significant if it continues to scale successfully.

With the share price down heavily, the market appears to be questioning that path, which is where I think potential upside can emerge.

Catapult Sports Ltd (ASX: CAT)

Catapult sits at the heart of sports and technology. It provides performance analytics and wearable technology to professional sports teams around the world.

What I find interesting is its niche positioning. It has built strong relationships across elite sports leagues like the NBA, EPL, and NFL, which gives it a level of defensibility.

The business has been moving toward a recurring revenue model, which could improve stability over time.

Like many ASX tech stocks, it hasn’t been spared from the recent sell-off, but the long-term opportunity in sports analytics remains.

Foolish Takeaway

When markets turn against a sector, everything tends to fall together.

Right now, ASX tech looks to be in that phase, with Xero, Pro Medicus, TechnologyOne, Life360, and Catapult shares all being hit hard despite their long-term growth potential.

There’s no guarantee of a quick rebound. But for patient investors, I think this could be one of those once-in-a-decade periods where high-quality stocks are available at far more reasonable prices.

The post This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks appeared first on The Motley Fool Australia.

More reading

• Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today
• Forget CSL shares, this ASX healthcare stock could double in value
• A rare buying opportunity in 1 of the ASX’s top shares?
• Up 11%: Why have these 2 ASX tech stocks surged in March?
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Catapult Sports, Life360, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Catapult Sports, Life360, and Xero. The Motley Fool Australia has recommended Pro Medicus 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 Woodside Energy Group Ltd (ASX: WDS) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $34.79. In late morning trade on Tuesday, shares are changing hands for $33.77 each, down 2.9%.

For some context, the ASX 200 is up 1% at this same time.

But it’s not just the Woodside share price that’s underperforming today.

Here’s how these other top ASX 200 energy stocks are tracking this morning:

• Santos Ltd (ASX: STO) shares are down 2.7% at $7.83 each
• Beach Energy Ltd (ASX: BPT) shares are down 1.6% at $1.27 each
• Karoon Energy Ltd (ASX: KAR) shares are down 3.4% at $1.99 each

So, what’s going on?

Why is the Woodside share price tumbling?

The ASX 200 is rallying, and the Woodside share price is falling, after United States President Donald Trump dialled back the pressure on Iran overnight.

As you’re likely aware, Trump is intent on reopening the critical Strait of Hormuz shipping route. Iran’s virtual closure of the strait, which accounts for about 20% of the world’s oil shipping traffic, has sent energy prices soaring in March.

After initially giving Iran 48 hours to fully reopen Hormuz or face the bombing of its power stations, Trump delayed that option by five days. The US president said that Iranian officials are wanting to make a deal, news that Iran has so far denied.

Nonetheless, global oil prices plunged overnight on hopes of a possible resolution to the conflict. And that’s clearly feeding through to the selling pressure on the Woodside share price today.

Brent crude is currently trading for US$99.94 per barrel. That’s down 10.9% in 24 hours, and down from a peak of almost US$120 per barrel last week, according to data from Bloomberg.

Should the oil price indeed “fall like a rock” upon the successful reopening of the Strait of Hormuz, as Trump indicated, ASX energy shares could come back to earth following their remarkable recent rally.

But plunging oil prices could see a significant rally in many ASX 200 stocks. That includes energy-intensive companies like Qantas Airways Ltd (ASX: QAN). Indeed, shares in the flying kangaroo are up 4.3% today, trading for $8.50 apiece.

How have ASX 200 energy shares tracked in March?

Monday, 2 March, marked the first day of trading on the ASX since the start of the Iran war.

Since market close on 2 March, the ASX 200 has dropped a sharp 8.2%.

Here’s how these ASX 200 energy shares have performed over that same time (including today’s intraday retrace):

• Woodside shares are up 12.0%
• Santos shares are up 7.7%
• Karoon Energy shares are up 10.5%
• Beach Energy shares are up 10.3%

Stay tuned!

The post Why is the Woodside share price getting smashed on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Can these red hot ASX energy shares keep charging higher?
• What would a gas tax mean for ASX energy stocks?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Will ASX oil stocks protect your portfolio from a market crash in 2026?

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.

Although oil prices eased overnight, fuel costs and supply risks remain a concern for many ASX mining stocks.

That’s because fuel is both a major cost and key input for mining operations across the country.

Bell Potter has been looking at this and has earmarked a number of ASX mining stocks that are better placed than others in the current environment.

What is the broker saying?

Bell Potter highlights that diesel prices have been rising in response to the conflict in the Middle East. It said:

The Middle East conflict and associated rally in oil prices, flows almost directly through to higher costs for much of the mining sector. The sector may also have to manage scarcity of diesel supply, which could impact production volumes. These risks are particularly apparent for large-scale open pit operations relying heavily on diesel powered trucking fleets. Many mining and exploration projects are also reliant on diesel gensets to power plant and associated infrastructure.

Which ASX mining stocks should you buy?

There are a number of stocks under the broker’s research coverage which are less exposed to these diesel price and supply risks.

The first is uranium producer Boss Energy Ltd (ASX: BOE), which has been named as a buy with a $1.95 price target. It said:

The Honeymoon project draws power directly from the grid (connected to Broken Hill). In-situ-recovery operations by nature do not require high-diesel consuming truck and shovel fleet typically seen in open-pit operations. The only exposure is via 3rd party site deliveries for reagents.

Another ASX mining stock to get the thumbs up is Liontown Ltd (ASX: LTR). Bell Potter has a buy rating and $2.42 price target on the lithium miner’s shares. It commented:

The Kathleen Valley underground lithium operation achieved 82% renewable energy penetration in 1H FY26. Lithium is likely to benefit from the increased incentive to Electric Vehicle take-up and Battery Energy Storage Systems emerging role in providing grid stability.

Nickel Industries Ltd (ASX: NIC) could be another stock to consider. Bell Potter has a buy rating and $1.45 price target on its shares. It said:

Insulated from oil price shock and security of supply issues due to Indonesia’s near-self-sufficient diesel supply and a subsidised domestic fuel market. Process plant power supply secure, via on-site coal-fired power utilising abundant domestic coal. NIC is exposed to cost and supply risks of elemental sulphur, which is used to produce acid for High-Pressure-Acid-Leaching (HPAL) of nickel – a key growth area for NIC in CY26. NIC is highly leveraged to the nickel price, a first derivative beneficiary of higher EV demand.

Lastly, it notes that Vulcan Energy Resources Ltd (ASX: VUL) is well-positioned due to its geothermal electricity generation. It has a speculative buy rating and $6.10 price target on its shares. It said:

Phase One Lionheart lithium brine project (first production 2028) is vertically integrated from geothermal electricity generation and heat supply through to electrolysis production of lithium hydroxide. Like LTR, we expect VUL will benefit from stronger lithium markets.

The post 4 of the best ASX mining stocks to buy in the current environment appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Copper, gold, and lithium ASX stocks
• 5 things to watch on the ASX 200 on Tuesday
• Up 117% in a year, should you still buy Liontown shares now?
• These are the 10 most shorted ASX shares
• Why Boss Energy shares are falling despite positive uranium update

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.

Shares in Echo IQ Ltd (ASX: EIQ) have surged more than 13% in early trade after the company announced a revised deal with the Mayo Clinic to sell and distribute its heart failure detection software in the US.

Echo IQ said in a statement to the ASX on Tuesday that its EchoSolv HF technology would be deployed via the Mayo Clinic Platform – Solutions Studio Program, enabling Mayo Hospitals and 80 external partner hospitals to participate.

Regulatory hurdles remain

The EchoSolv software is currently going through the Food & Drug Administration (FDA) clearance process, after the company lodged a market clearance application for the technology in December.

Echo IQ said further re the agreement.

The expanded agreement follows a validation study conducted through the Mayo Clinic Platform validation program. The study met its primary endpoint, with EchoSolv HF demonstrating a sensitivity of 99.5% in identifying patients with heart failure and a specificity of 91.1% in correctly identifying patients without heart failure. These results have not been reviewed or cleared by the FDA and are subject to the FDA’s regulatory review process.  

The company said it would keep shareholders advised as to the progress through the FDA clearance process.

The company said:

Clearance has the potential to unlock a significant market opportunity for Echo IQ. Heart failure represents a substantial and growing burden on the US healthcare system, with about 6.7 million Americans currently living with the condition and an estimated 2 million more patients remaining undiagnosed. Upwards of 16 million echocardiograms are performed in the US per annum, with around 8 million studies containing heart failure-relevant findings, representing approximately 50% of all echocardiographic exams.

Confident for the future

Echo IQ Chief Executive Officer Dustin Haines said the Mayo agreement was “one of the more strategically important milestones in the company’s History”.

He added:

A more equitable arrangement with one of the most respected hospital systems in the US, as we move closer to FDA clearance and commercial deployment, leaves us well positioned for the months ahead. This milestone reflects the strength of the EchoSolv HF clinical utility and the growing commercial value of the solution, while the revised agreement provides a scalable pathway to market through the Mayo Clinic Platform. This may give us access to Mayo’s hospital network and a broader ecosystem of healthcare providers seeking validated AI solutions.

Mr Haines said while the FDA application was still under review, the company remains confident in its submission.

The ASX biotech’s shares were 13.8% higher in early trade at 70 cents. The shares have more than doubled in value over the past three months.

The company was valued at $405 million at the close of trade on Monday.

The post Which ASX biotech’s shares are rocketing higher on big US news? appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX small-cap shares this fund manager thinks are buys

Motley Fool contributor Cameron England 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.

Following three consecutive trading days of declines, the S&P/ASX 200 Index (ASX: XJO) is off to the races today.

In early morning trade on Tuesday, the benchmark Aussie index is up 1.3% at 8,473 points.

Turning to the two biggest stocks on the exchange, BHP Group Ltd (ASX: BHP) shares are up 3.7%, and Commonwealth Bank of Australia (ASX: CBA) shares are up 1% at this same time.

Meanwhile, tech stocks are enjoying a strong day, with the S&P/ASX All Technology Index (ASX: XTX) up 1.1%. And with gold holding steady overnight, Australia’s gold miners are rallying, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 5.1%.

And offering some insight into what’s lifting investor sentiment today, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.7%.

So, what’s happening?

What’s sending the ASX 200 surging today?

The Australian market is following the US stock markets higher today.

On Monday (overnight Aussie time), the S&P 500 Index (SP: .INX) closed up 1.2%, while the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) closed up 1.4%.

US and ASX 200 investors have responded positively to the prospect of potential peace talks with Iran, an idea floated on Monday by United States President Donald Trump.

Trump had initially given Iran 48 hours to fully reopen the critical Strait of Hormuz shipping route. But on Monday, he offered Iran a five-day reprieve, citing talks with a high-level Iranian official.

While Iran denied any talks were underway, the prospect of a de-escalation in hostilities sent the Brent crude oil price down 10.4% overnight. Brent crude oil is currently trading for US$100.48 per barrel. Brent peaked near US$120 per barrel last week.

Should the oil price “fall like a rock” upon the reopening of Hormuz, as Trump suggested, it will greatly reduce global inflationary pressures and the resulting need for interest rate hikes from the world’s central banks.

And that, clearly, would be good news for many ASX 200 companies.

What are the experts saying?

Commenting on Trump’s announcement that’s sending the ASX 200 surging today, Chris Larkin at E*Trade from Morgan Stanley said (quoted by Bloomberg):

The market woke up to some potentially good news. But follow-through on any relief rally will likely require tangible follow-through on the geopolitical front. We’re still living in a headline-driven market.

Edward Jones’ Brock Weimer was also cautiously optimistic. He said:

Although this change in rhetoric is an encouraging development, we think the clearest indication of meaningful de-escalation will be whether crude oil flows through the Strait of Hormuz are able to recover.

A number of analysts also pointed to the potential of a sizeable rebound for international and ASX 200 stocks, if the Iran war winds down.

“The conditions for a rally are very high, if geopolitical tensions ease, considering one of the largest short positions on US stocks that we’ve ever seen,” Citadel Securities’ Scott Rubner said.

And we’ll leave off with the Bloomberg strategists, who noted:

Highly negative positioning leaves room for sharp stock market rebounds on any hint of an Iran off-ramp, though the bigger backdrop now argues for a wider trading range that remains tilted lower even if hostilities end tomorrow.

The post The ASX 200 is roaring back on Tuesday. Here’s why 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.