Tag: Stock pick

ASX materials stock Waratah Minerals Ltd (ASX: WTM) is making headlines this week after the company announced positive results from its drilling program in New South Wales. 

Company overview 

Waratah Minerals is a NSW based, gold-copper exploration and development company. 

Its flagship project is its 100%-owned Spur gold-copper project, an advanced stage, pre-resource exploration project in the Lachlan Fold Belt of NSW, located 33km southwest of Orange and 5km from Newmont’s Cadia gold-copper operations.

Its share price has increased 70% in the last 12 months, attracting plenty of positive broker attention.

New analysis from the team at Bell Potter indicates it could continue to rise after positive results at its Spur Gold Project in New South Wales. 

What did the company report?

According to the announcement earlier this week, drilling results from its Spur Gold Project in New South Wales continue to show that Spur could become a large-scale gold deposit in one of Australia’s major gold and copper mining regions.

High-grade gold has now been found 100 metres deeper than previously identified at the eastern edge of the drilled area.

This suggests the gold system may be larger than currently known and remains open for further expansion.

Commenting on the results, Waratah Managing Director Peter Duerden said: 

Ongoing drill results from the Spur and Consols Gold Zones continue to deliver strong intercepts highlighting major growth of the gold endowment and a system which remains open in multiple directions. 

This systematic drill program is delivering a strong pipeline of news flow as we report the results which unlock the full potential at Spur and create further value for shareholders.

What is Bell Potter saying about this ASX materials stock?

Following the results, the team at Bell Potter released updated guidance on this ASX materials stock. 

The broker said Waratah Minerals’ program now comprises 10 active drill rigs and continues to extend known mineralisation, infill existing zones and discover new high-grade shoots. 

The latest results have confirmed material mineralisation extensions both up dip and down dip of previously reported major intersections, plus identified new high-grade mineralisation at surface.

The Spur project is showing strong indications of delivering a gold-copper deposit of substantial scale and grade in a strategic setting.

The broker has subsequently retained its buy recommendation on this ASX materials stock, along with a price target of $1.05. 

From yesterday’s closing price of 62 cents per share, this indicates upside potential of more than 70%. 

The post Top broker tips 70%+ upside for this ASX materials stock after exceptional results appeared first on The Motley Fool Australia.

More reading

• Forget Newmont, this ASX gold stock could rise 50%

Motley Fool contributor Aaron Bell 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 rise of ASX ETF investing has seen numerous new funds hit the market. 

Many of these funds now focus on niche themes or sectors, aiming to capture gains in fast growing industries. 

The SpaceX IPO has made plenty of headlines, and also influenced the creation of two new space themed ASX ETFs. 

The pros and cons of thematic ASX ETFs

While this provides an exciting opportunity, the challenge for investors is identifying which themes and funds are targeting sectors poised for long term growth, rather than a short-lived burst of investor interest.  

There have been plenty of examples of themes seemingly poised for growth, fizzling out quickly. 

Examples include 3D printing companies in the 2010s, legalised cannabis in certain countries and more recently buy-now-pay-later stocks. 

These niche themes captured plenty of attention for a short period of time alongside real financial investment. 

However time has shown that these were short term crazes rather than long term opportunities. 

On the other hand, themes such as the internet, cloud computing and smartphones all grew from emerging trends into long-term, vital industries. 

What investors should consider

For investors considering emerging themes, some key considerations include: 

• If the theme addresses or solves a problem
• How large could the end market could realistically become
• If the theme will still matter in 10-20 years
• If the underlying companies are already priced for perfection. 

With these considerations in mind, let’s look at the new theme generating excitement – space. 

Space ASX ETFs

The SpaceX IPO has generated extensive coverage all over the world. 

Interest in this sector has resulted in two new space themed ASX ETFs to hit the market: 

• Betashares Space Industry ETF (ASX: RCKT)
• Global X Space Tech ETF (ASX: MOON). 

RCKT ETF focuses on companies whose core businesses are directly tied to the space economy. This includes rocket launches, satellite operators, space infrastructure and space-related data services. 

It is designed to give investors concentrated exposure to the commercialisation of space. It also includes a fast-track mechanism for adding new space IPOs. 

MOON ETF on the other hand, invests across the wider space technology ecosystem, including launch systems, satellite infrastructure, communications networks and geospatial data businesses. 

This may result in exposure to a broader range of technology companies that benefit from space-related growth, rather than only pure-play space operators

Are they worth investing in?

Space-themed ETFs such as RCKT and MOON offer investors exposure to what could become one of the world’s next major growth industries. 

As satellite networks, space-based communications, Earth observation technologies and commercial space exploration continue to develop, companies operating in these areas could benefit from decades of investment and innovation. 

However, the sector also carries significant risks. 

Many space-related businesses are still in the early stages of commercialisation, meaning profitability can be uncertain and valuations can be heavily influenced by investor sentiment. 

The industry’s growth also depends on technological breakthroughs, government spending and regulatory support, which can create periods of volatility. 

As a result, space ETFs have the potential to deliver strong long-term returns if the industry fulfils its promise, but investors should be prepared for a potentially bumpy ride along the way.

The post Are space ASX ETFs the next big growth opportunity or overhyped? appeared first on The Motley Fool Australia.

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• What are the best performing thematic ASX ETFs right now?
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Motley Fool contributor Aaron Bell 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.

Artificial intelligence has been undergoing a boom, sending the valuations of companies such as Nvidia Corp (NASDAQ: NVDA) and Micron Technology Inc (NASDAQ: MU) through the roof.

Closer to home the data centre builders and operators such as Goodman Group (ASX: GMG) have been doing well.

But what if you want to invest more broadly across the sector, and also into private companies?

Opportunity to invest at the ground level

That possibility is coming soon, with investment firm Pengana’s AI Private Opportunities Trust (ASX: AIX) looking to raise $350 million in new funds ahead of a listing on the ASX.

The fund’s prospectus says the focus is to give investors access to companies they otherwise could not invest in.

As they say:

We are pleased to announce the launch of the AI Private Opportunities Trust, which will offer you an opportunity to access a fund investing in the securities of private, non-publicly traded companies at all stages of development – from early-stage ventures through to late-stage, pre-IPO businesses – that are developing, enabling, or contributing to the adoption of artificial intelligence (“AI”) and related technologies (which includes companies where AI is a key component to the value creation thesis for such companies).

The prospectus says the fund’s proponents believe AI is increasingly proving its worth as a foundational technology, “with the potential to drive significant productivity gains, disrupt existing industries, and create new markets over the coming decades; and that it can present both an opportunity and a challenge for investors”.

They add:

The challenge is that a substantial portion of innovation and value creation in AI is occurring within private markets, where many companies are able to scale, iterate, and establish competitive advantages prior to seeking public listings. As a result, the Responsible Entity believes that public market investors are often left with only indirect exposure to AI, usually through large technology companies where AI represents only one part of a much broader business.

The trust will invest in private companies, the prospectus says, and also may selectively take part in initial public offers.

Strike while the iron is hot

They add that the timing of the trust’s launch is fortuitous.

The Responsible Entity believes that it is a compelling point in the technological cycle to access these opportunities as many unlisted AI companies are maturing rapidly, and that over the medium term a number of these businesses are expected to transition into public markets via IPOs, be acquired, merge with other strategic players, or otherwise realise value for investors. While the Responsible Entity does not expect every Portfolio Company to pursue an IPO, the next five to seven years may provide an important window to access these companies before they become more broadly available to public market investors.

The initial portfolio on listing will include stakes in Bytedance and Handshake.

The Trust is offering units at $10 apiece with the general offer of units to close on 19 June, before trading starts, expected to be on 2 July.

The post Interested in investing in AI? Check out this new $350 million trust appeared first on The Motley Fool Australia.

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

There could be a rebound incoming for ASX small-cap stock AMA Group Ltd (ASX: AMA). 

For those unfamiliar with the company, AMA Group operates in the wholesale vehicle aftercare and accessories market in Australia and New Zealand. Its operations include smash repair shops, automotive and electrical components, vehicle protection equipment, and servicing workshops for brakes and transmissions.

AMA’s Vehicle Collision Repairs segment is a major revenue driver for the company. It serves major insurance companies through more than 130 vehicle repair sites in all Australian states and the ACT.

Shaking off the rust 

It has been a tough year for the ASX industrials stock.

The ASX small-cap stock has fallen 42% year to date. 

However a new report from the team at Bell Potter indicates that the back half of 2026 could see the company rebound. 

The broker has retained a buy recommendation on the stock along with a target price indicating more than 117% upside. 

Reaffirmed guidance

AMA reaffirmed its FY26 EBITDA guidance of $70-75 million in April, even though experts were concerned that high fuel prices could reduce driving and lead to fewer accident repairs.

Since then, traffic volumes across Australia have remained fairly normal despite high fuel costs. 

Combined with normal rainfall levels, this suggests repair volumes have likely been close to expectations.

The company has not released any negative trading updates, which is generally a positive sign that performance remains on track. AMA also started its share buyback this week, which suggests management is comfortable with current trading conditions.

A positive outlook

Bell Potter believes that AMA is positioned for a strong fourth quarter, with trading expected to remain stable and repair volumes tracking close to expectations.

The fourth quarter is also typically the company’s best quarter for cash generation. 

Bell Potter expects operating cash flow of about $37.5 million, which would help keep net debt below $20 million and leave the balance sheet in a healthy position.

While there is some risk to management’s EBITDA guidance, there are currently no signs that the business has materially deteriorated.

The broker noted:

Indeed, the lack of any trading update suggests the guidance is still on track and the commencement of the buy-back this week also suggests there is no need at this stage for the company to “cleanse” the market. 

Our normalised FY26 EBITDA forecast of $68.4m is admittedly below the guidance range of $70-75m so we still see some downside risk to the guidance but we are also not changing our forecast and see it as reasonable if not slightly conservative.

Big upside in tact for this ASX small-cap 

Based on this guidance, the team at Bell Potter has retained their buy recommendation on this ASX small-cap. 

The broker currently has a $1.00 price tag on AMA shares. 

From yesterday’s closing price of 46 cents per share, this indicates an upside potential of 117%. 

The post This ASX small-cap is expected to double in the next 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

With the FIFA World Cup kicking off, it feels like the perfect time to build an ASX share market first eleven.

The formation? A classic 4-3-3.

That means a dependable goalkeeper, a strong back four, a balanced midfield, and a front three with enough pace and quality to trouble any defence.

Here is the ASX team I would send onto the pitch.

Goalkeeper: Transurban Group (ASX: TCL)

Every good team needs a reliable presence in goal, and Transurban fits the role nicely.

Its toll road assets are defensive, essential, and difficult to replicate. It may not produce the flashiest moments, but it can provide the dependable base investors often want from infrastructure shares.

Right back: Car Group Ltd (ASX: CAR)

CAR Group gets the nod at right back. It has enough defensive strength through its powerful marketplace position, but also the ability to get forward through its international growth opportunities.

Buyers go where the listings are, and sellers want to be where the buyers are. That network effect makes it a hard player to beat.

Centre back: Woolworths Group Ltd (ASX: WOW)

Woolworths is an obvious central defender.

It is strong, established, and focused on doing the basics well. Australians need groceries regardless of the economic backdrop, which gives Woolworths a defensive quality many companies cannot match.

Centre back: CSL Ltd (ASX: CSL)

Alongside it is CSL.

The healthcare giant has had a difficult spell recently, but this is still a high-quality, battle-tested business with global scale.

It brings experience, strength, and long-term pedigree to the back line.

Left back: Goodman Group (ASX: GMG)

Goodman takes the left-back role.

It has defensive qualities through its global property platform, but also attacking pace through its exposure to logistics, data centres, and digital infrastructure.

That combination makes it one of the more versatile names in the side.

Midfield: Telstra Group Ltd (ASX: TLS)

Telstra is the veteran holding midfielder and captain.

It may not be the most exciting name on the team sheet, but it brings experience, reliability, and a steady dividend profile.

Every attacking side still needs someone willing to do the unglamorous work.

Midfield: Macquarie Group Ltd (ASX: MQG)

Macquarie is the creative playmaker.

The investment bank has a long record of finding opportunities across infrastructure, commodities, green energy, private markets, and global finance.

It is the player most capable of spotting a pass others miss.

Midfield: WiseTech Global Ltd (ASX: WTC)

WiseTech is the energetic box-to-box midfielder.

Its logistics software is used by freight forwarders and supply chain operators around the world, giving it a large global runway.

It has the engine to keep pushing forward.

Right wing: Life360 Inc (ASX: 360)

Life360 brings speed on the right wing.

Its family safety platform is growing rapidly globally, with subscriptions and new services giving it room to keep expanding.

This is a high-growth player with plenty of attacking intent.

Left wing: Pro Medicus Ltd (ASX: PME)

Pro Medicus takes the left wing position.

Its medical imaging software is fast, specialised, and world class. It may come with a premium valuation, but elite attacking talent rarely comes cheap.

Striker: REA Group Ltd (ASX: REA)

REA leads the line.

Its property platforms hold dominant market positions, giving it pricing power, high margins, and a strong record of scoring for shareholders.

It is the reliable finisher in this ASX attack.

The post The ASX shares I’d pick in a FIFA World Cup first eleven appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, Life360, Pro Medicus, REA Group, WiseTech Global, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Life360, Macquarie Group, Transurban Group, and WiseTech Global. 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 Life360, Telstra Group, Transurban Group, and WiseTech Global. The Motley Fool Australia has recommended CAR Group Ltd, CSL, Goodman Group, Macquarie Group, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price is $61.01, up 1.4%, at the time of writing on Thursday.

BHP shares were in the red in early trading, falling 1.9% to an intraday low of $59.06.

The market’s largest company is faring much better this afternoon; however, this volatility is emblematic of a big week.

BHP and other S&P/ASX 200 Index (ASX: XJO) iron ore shares have had a tumultuous time of late.

Last Wednesday, BHP shares rose to a record high of $65.04. Since then, they have tumbled 9% to today’s intraday low.

Australia’s largest listed miner has not announced any news during this time.

So, what’s going on?

Why are BHP shares so volatile?

Some big news that broke last Thursday was the trigger for the 9% fall in BHP shares over the past week.

Last week, we learned of a major production lift at the giant Simandou iron ore mine in Africa.

Simandou, located in the Republic of Guinea, is the world’s largest undeveloped high-grade iron ore deposit.

It is majority-owned by Chinese investors, but Rio Tinto Ltd (ASX: RIO) also owns a big piece of the pie.

Operations at Simandou began in November.

In the first three months of 2026, the mine shipped 0.6 million tonnes of iron ore.

Then came a big jump to 1.3 million tonnes in April, then 2.2 million tonnes in May, according to Bloomberg.

This has raised concerns about oversupply at a time when demand from China is weakening.

And that spells trouble for the iron ore price.

What is the iron ore price?

The iron ore price has tumbled 9% over the past month to a near 2-month low of US$101.70 per tonne today.

China’s faltering property market has led to softer demand for iron ore over time.

However, China is still a major steel producer and is increasingly exporting steel to other countries.

Trading Economics analysts said new data showed China’s iron ore imports dropped nearly 6% from April to May.

This defied the market’s expectations of an increase amid improved steel margins and higher shipments from major producers.

The analysts said:

China imported 97.71 million tons of the key steelmaking ingredient last month, down from 103.9 million tons in April and below analysts’ forecasts of 104 million to 110 million tons.

Analysts attributed the decline to cautious purchasing by steelmakers, who have limited buying to immediate needs ahead of a seasonally weaker demand period.

Demand from China’s steel sector has also softened earlier than usual this year, as persistent rainfall and the early arrival of summer heat have slowed construction activity.

What’s going on with Chinese demand?

While Chinese demand for iron ore is modifying right now, Todd Warren, a resources specialist and portfolio manager at Tribeca Investment Partners, said China remains the biggest buyer of seaborne iron ore in the world.

In an interview with CommSec, Warren said China still wants iron ore, not for its property market, but to create export earnings.

Warren said:

What’s become more and more clear is that the Chinese are now exporting a lot of their steel… about 15% of the steel they produce is now exported to the world, particularly Asia.

The only reason they can export it is because there’s demand for it. So there’s a buyer for that product.

India is obviously the next big population base that could see a rise in demand for steel. And they’ve been historically self-reliant, so, domestically reliant on iron ore.

But once they grow, as did China, once upon a time, they grow beyond their ability to domestically supply.

They’ll be reliant on the seaborne market.

An additional drag on the BHP share price has been a 6.5% fall in the copper price to US$6.20 per pound today.

That’s still high by historical standards, but a fair way off the record of US$6.63 per pound set last Tuesday.

Copper now forms a greater component of BHP’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) than iron ore.

Should you buy BHP shares?

Since last Wednesday, when the BHP share price set that new record at $65.04, four brokers have reiterated their hold ratings.

Three of them raised their share price targets.

Jefferies increased its target from $57 to $68. Citi went from $55.21 to $66.64, and RBC Capital moved from $56 to $57.

UBS has a target of $60 on BHP shares.

On The Bull this week, Tony Locantro from Alto Capital put a sell rating on BHP shares.

He thinks it may be time to take profits, commenting:

While the long term outlook for copper remains attractive, investor enthusiasm surrounding electrification and AI-related demand has contributed to a strong share price performance.

In our view, the strong operational result, elevated expectations and risk-reward balance support taking some profits.

BHP share price snapshot

The BHP share price has increased 56% over the past 12 months.

This compares to just a 0.8% bump for the benchmark S&P/ASX 200 Index (ASX: XJO).

The post Why is the BHP share price so volatile this week? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jefferies Financial 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.

A new financial year is on the horizon, so what better time to look at making some new investments.

But which ASX 200 shares could be top picks for FY 2027 and beyond? Let’s take a close look at two that I think could be worth considering:

CSL Ltd (ASX: CSL)

The first ASX 200 share to look at is CSL.

There is no point pretending the past couple of years have been easy. CSL has disappointed investors, downgraded expectations, faced pressure in parts of its portfolio, and seen confidence in the stock fall sharply.

This means that CSL shares are no longer priced like an untouchable market darling. The biotech company is being valued like one with problems to solve. Some of that caution is fair, but the share price may now be offering a more compelling risk/reward balance than it has for some time.

The core business still has major strengths. CSL remains a global leader in plasma therapies, vaccines, and specialty medicines. Demand for many of its products is tied to healthcare needs rather than short-term consumer spending.

If management can stabilise expectations, rebuild margins, and show that earnings growth is returning, the recovery potential could be significant.

This is not the low-risk blue chip it once appeared to be. But for investors willing to look through the bad news, CSL could be one of the more interesting turnaround opportunities on the ASX 200.

Xero Ltd (ASX: XRO)

Another ASX 200 share that could be worth buying in FY 2027 is Xero.

Xero has already become an important platform for small businesses, accountants, and bookkeepers. But the bigger opportunity is not just accounting software.

The company is building deeper connections into the financial lives of small businesses. Invoicing, payroll, payments, bank feeds, reporting, compliance, and adviser tools all sit inside the same ecosystem.

That can make Xero increasingly difficult to replace once a business is fully embedded on the platform.

The next stage of growth may come from expanding the value of each customer relationship. Automation, artificial intelligence, payments, lending connections, and workflow tools could all help Xero become more useful over time.

The stock will not be cheap if judged only by near-term earnings multiples. But high-quality software companies rarely look cheap when they are executing well.

For investors with a long-term view, Xero remains one of the ASX 200’s strongest technology growth stories.

The post Where to invest $50,000 in ASX 200 shares in FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

It was a bumpy, yet ultimately negative session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Thursday.

After starting sharply lower this morning, the ASX 200 spent most of the day recovering and broke into positive territory for a brief moment this afternoon. But it was not to last, and the index ended up closing 0.23% lower at 8,633.2 points.

This tantalising day for ASX investors followed a much rougher night up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was smashed, dropping a nasty 1.87%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 1.98%.

But let’s get back to ASX shares now and take a look at what was going on amongst the various ASX sectors today.

Winners and losers

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

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• Where to invest $50,000 in ASX 200 shares in FY27
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Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Megaport. 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 defence shares have ripped since Russia invaded Ukraine in 2022.

That event kicked off the global defence spending megatheme.

More countries, including Australia, are now committing more funding to defence as world order splinters further.

Last year, the 32 NATO nations agreed to more than double defence spending from 2% to 5% of GDP over 10 years.

In April, Australia said it would increase defence spending to 3% of GDP by 2033 by adopting NATO’s definitions of spending.

The Federal Government will spend an additional $14 billion over the next four years, and an additional $53 billion over the decade.

Since 2022, several ASX shares within the defence segment have recorded incredible share price growth.

Can they remain on the same trajectory?

In a recent article, CommSec equity strategist James Gruber said global defence spending “looks set to soar over the next decade”. 

But he also poses a key question for investors: how much of that is already factored into ASX share prices?

Gruber says:

That depends a lot on how much the ASX-listed businesses can continue to take market share and grow their order books in coming years, and that will depend on creating and maintaining superior technological products versus their peers.

With this in mind, let’s take a look at the ratings and 12-month price target ranges from the experts.

Austal Ltd (ASX: ASB)

The Austal share price has ascended 97% since June 2022, and hit an all-time high of $8.82 in January.

On Thursday, Austal shares are $3.83, down 2.7%.

Austal is an Australian defence shipbuilder that builds ships for the Australian Navy, US Navy, and others.

Gruber said:

Austal has a track record as a shipbuilder for defence forces, and it could benefit from the expected ramp up in global defence spending.

One risk is that it is the only foreign-owned contractor that builds and maintains warships for the US.

If America decides that outsourcing this function to foreigners does not make sense, then Austal may be impacted.

On the CommSec platform, the consensus rating among nine analysts rating Austal shares is a moderate buy.

On the TradingView website, three analysts have a 12-month target price range of $6.60 to $7.71.

That indicates 70% to 100% upside ahead.

Droneshield Ltd (ASX: DRO)

The Droneshield share price has soared 1,288% since 2022, and hit a record $6.71 in October.

Today, the Droneshield share price is $2.78, up 0.4%.

Droneshield is a counter-drone technology systems company.

Gruber said:

It was one of the earliest companies in counter-drone technology and that first-mover advantage has helped it grow revenue from $5m in 2020 to $227m in 2025. Most of the revenue comes from military forces in the US.

It predominantly sells hardware, but a growing number is from software as a service as the company’s AI software requires continuous updates.

The company has spent up to 20% of revenue on research and that has depressed profits. What net margins it may achieve in future is a key question.

Risks primarily revolve around competition, with big players in the market, including Leonardo from the UK. Besides competition, the other main risk is obsolescence, with the possibility of superior technology emerging.

Recently, the Chairman and CEO decided to step down from their leadership positions, resulting in a sharp, one-day drop in the share price.

Three analysts on CommSec give a consensus hold rating for Droneshield shares.

On TradingView, three analysts have a 12-month target price range of $2.28 to $4.80.

That suggests Droneshield shares could fall by nearly 20%, or may rise by up to 70%, over the next year.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are 410% higher since June 2022, and hit a peak of $12.58 in March.

On Thursday, the Electro Optic Systems share price is $9.39, down 4.2%.

The company specialises in defence technology, developing advanced weapon systems and counter-drone solutions.

Gruber said:

The company has a strong order book of $459m, up from $136m at the end of 2024. It aims to realise 40-50% of this order book in 2026.

The company is a small defence contractor on the global stage and that may be why it has continued to struggle to post underlying profits in recent years (FY25 underlying earnings were -$24m).

Nonetheless, it could benefit from the increased global spending on defence going forward.

In March, its the shares had a big drop after it was revealed that the CEO and CFO intended to sell a large portion of their stakes in the company.

Four traders on CommSec have a consensus strong buy rating on Electro Optic Systems shares.

On TradingView, four analysts have a 12-month target price range of $10.60 to $16.

That indicates about 10% to 70% upside ahead.

The post ASX defence shares like Droneshield have soared since 2022. Is there any growth left? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 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.

There are many Vanguard exchange-traded funds (ETFs) available on the ASX.

Some are designed for broad global exposure. Others focus on Australia, bonds, high growth portfolios, or diversified all-in-one investing.

But if I had to choose one Vanguard ETF for long-term growth, I think there is a very strong candidate.

The Vanguard S&P 500 US Shares Index ETF (ASX: V500) could be the best Vanguard ETF money can buy.

Why this Vanguard ETF stands out

The appeal of the V500 ETF is its simplicity.

It gives investors exposure to the S&P 500 index, which is made up of 500 of the largest listed companies in the United States. That means investors can buy one ASX ETF and gain access to a large group of businesses across different industries.

I think that is a powerful starting point.

The S&P 500 has delivered an average annual return of around 10% over the very long term. There is no guarantee that future returns will match the past, and there will always be difficult periods along the way.

But I believe the index can continue to perform well over the long term because of the quality of the companies inside it.

The US market has an unusually deep collection of global leaders. Many of these businesses do not only serve American customers. They sell products, software, services, medicines, food, payments, entertainment, and infrastructure across the world.

That gives the V500 ETF a much broader feel than a simple US-only investment.

A collection of world-class companies

The technology exposure is the part many investors think about first.

Through V500, investors gain exposure to companies such as Microsoft, Apple, NVIDIA, and Alphabet. These businesses are central to cloud computing, artificial intelligence, smartphones, software, digital advertising, and data infrastructure.

But the ETF is not only a technology fund.

It also owns major banks such as JPMorgan Chase & Co and Bank of America, which gives investors exposure to the US financial system. These are large institutions tied to lending, deposits, payments, markets, and corporate activity.

There is also exposure to resources and materials businesses, including Freeport-McMoRan and Newmont Corp. These companies connect the index to copper, gold, and the raw materials needed across parts of the global economy.

On the consumer side, this Vanguard ETF owns businesses such as Amazon.com, Walmart, and Costco. These are very different retailers, but each has built scale, customer loyalty, and deep logistics capability.

The food and beverage exposure is also useful. Companies such as Coca-Cola, Starbucks, and McDonald’s show how the index includes businesses with global brands and repeat customer demand.

Healthcare adds another layer. Eli Lilly and Co, Johnson & Johnson, and UnitedHealth give the V500 ETF exposure to medicines, medical products, healthcare services, and long-term demand from ageing populations.

That mix is why I rate the ETF highly.

Low cost and easy to own

Another reason I like V500 is the cost. The ETF has a very low management fee of 0.07% per annum. Over long periods, low fees can make a meaningful difference because more of the return stays with investors.

I also like that it is easy to understand. Investors are not relying on one fund manager picking stocks. They are buying broad exposure to many of the largest companies in the US market.

There are risks. The US market can become expensive, the index is heavily influenced by large technology companies, and currency movements can affect returns for Australian investors.

But I think those risks are worth accepting for investors who want long-term exposure to global corporate leaders.

Foolish takeaway

I would not say V500 is the perfect ETF for every investor.

Some people may prefer an all-in-one fund. Others may want more Australian exposure, more defensive assets, or a wider global spread.

But for investors seeking simple, low-cost exposure to many of the world’s most important businesses, I think this Vanguard ETF has a very strong claim.

The post Is this the best Vanguard ETF money can buy? appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs I’d buy if I wanted easy global investing
• Where to invest $5,000 in Vanguard ETFs in June
• Why I’d buy these Vanguard ETFs with $3,000 in June
• 2 ETFs that could be buys today for any ASX share portfolio
• These ASX ETFs are smashing record highs 

JPMorgan Chase is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. 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 Alphabet, Amazon, Apple, Costco Wholesale, Eli Lilly, JPMorgan Chase, Microsoft, Nvidia, Starbucks, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and UnitedHealth Group and has recommended the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.