Tag: Stock pick

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

More reading

• Brokers name 3 ASX shares to buy today
• What’s driving the dramatic drop in ASX 200 tech shares?
• Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today
• Buying ASX shares? Here’s what to know before the RBA starts hiking interest rates
• A Black Friday stock tip for free

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 HMC Capital, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group, HMC Capital, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re building a portfolio designed to deliver steady, long-lasting passive income, the best approach is to focus on companies with robust business models, durable earnings and management teams that consistently prioritise shareholder returns.

These aren’t the headline-grabbing tech names, they are the quiet compounders that keep paying through booms, busts, and everything in between.

Right now, three ASX shares stand out as true dividend machines. They offer stability, defensive cash flows, and the kind of long-term reliability income-focused investors value most.

APA Group (ASX: APA)

APA Group could be one of the most dependable income stocks on the Australian market. It owns and operates Australia’s largest network of gas pipelines along with electricity transmission, renewable energy, and remote power assets. These are essential infrastructure assets that underpin the nation’s energy system, making APA’s earnings highly predictable.

These assets have allowed APA to deliver over a decade of consecutive dividend increases, which is something only a handful of ASX shares can claim. And with its distributions backed by long-term, inflation-linked contracts that provide excellent visibility on future cash flows, it seems quite likely that this run could continue well into the next decade.

At present, APA Group trades with an estimated forward dividend yield of 6.25%.

Macquarie Group Ltd (ASX: MQG)

Another ASX dividend share that could be a great long-term income pick is Macquarie.

It is an investment bank that has a unique global business model spanning asset management, commodities, banking, and green energy investments. This diversification allows it to generate income from multiple sources, reducing reliance on any single segment.

Macquarie arguably has one of the strongest capital positions in the financial sector, supporting its long history of paying meaningful dividends. The company also benefits from long-term structural trends such as the energy transition, infrastructure investment, and global asset management flows. This bodes well for its dividends over the next decade.

It currently trades with an estimated forward dividend yield of 3.55%.

Transurban Group Ltd (ASX: TCL)

Toll-road operator Transurban is another reliable income generator worth considering.

Its network of roads across Sydney, Melbourne, Brisbane and North America generates steady, inflation-linked revenue.

Transurban appears well-placed for steady and predictable growth over the next decade thanks to population growth, traffic congestion, and development projects.

This is expected to support further increases in its dividend. For example, the market expects an increase to 69 cents per share in FY 2026 (from 65 cents in FY 2025), which equates to a forward dividend yield of 4.6%.

The post 3 ASX dividend machines I think will keep paying for decades appeared first on The Motley Fool Australia.

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• Why Amcor, DroneShield, Harvey Norman, and QBE shares are falling today
• It’s time to buy: 1 Australian stock that hasn’t been this cheap in years
• How to retire early with ASX shares and the power of compounding
• 3 ultra-reliable ASX dividend stocks I’d buy for long-term income
• These ASX 200 shares could rise 40% to 90%

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

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Bell Potter, its analysts have retained their buy rating on the defence and space company’s shares with a trimmed price target of $8.10. This follows news that the company has acquired MARSS Group’s drone interceptor business for $10 million. It notes that interceptor drones are an emerging hard-kill counter-unmanned aerial systems (C-UAS) technology that is expected to grow in demand in the coming years. And while it will take 12-24 months to develop a commercial product, Bell Potter thinks it will be worth the wait. It estimates that interceptor revenue will come in at $6 million in 2027 then grow in the double digits in the years that follow. Outside this, it highlights that EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. The EOS share price is trading at $4.56 this afternoon.

Nick Scali Limited (ASX: NCK)

Another note out of Bell Potter reveals that its analysts have initiated coverage on this furniture retailer’s shares with a buy rating and $27.00 price target. The broker is feeling positive about Nick Scali’s outlook thanks to its industry leading margins and its expansion opportunity in the UK. Bell Potter highlights that there is scope for the company to triple its store footprint in the UK market, which will be supportive of earnings and dividend growth in the coming years. This is expected to be complemented by growth in the Plush brand in Australia over time. Overall, the broker feels that it is the most attractive goods retailer within the ASX 200 on a growth adjusted basis. The Nick Scali share price is fetching $23.71 at the time of writing.

Web Travel Group Ltd (ASX: WEB)

Analysts at UBS have retained their buy rating and $6.15 price target on this travel technology company’s shares. According to the note, the broker was pleased to see that the WebBeds owner’s growth is considerably stronger than its rival Hotelbeds. In addition, its margins have held up a lot better than its competitor. And while there are risks that its rival could cut prices to boost its growth, UBS isn’t overly concerned and continues to recommend Web Travel to its clients. The Web Travel share price is trading at $4.72 on Friday.

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

More reading

• Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today
• Buy alert! Bell Potter says this ASX 200 stock is ‘unmatched’
• Forget Droneshield shares, I’d buy this ASX defence stock instead
• 5 things to watch on the ASX 200 on Friday
• Why EOS shares could rise 75% in just a year

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. 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 recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started in the share market doesn’t need to be scary.

Not when there are exchange-traded funds (ETFs) out there that make investing far easier.

With a single trade, you can buy a diversified basket of shares rather than trying to pick individual winners.

If you are starting out with $1,000 today, these three ASX ETFs could be well worth considering. Let’s see why:

BetaShares Australian Quality ETF (ASX: AQLT)

The BetaShares Australian Quality ETF could be an ideal starting point for Aussie beginners because it focuses purely on quality.

Instead of chasing the largest shares in the index, this ASX ETF screens for businesses with strong profitability, low debt and stable earnings. These are traits of shares that tend to outperform over the long run.

Its portfolio includes some of Australia’s most resilient industry leaders such as Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL) and ResMed Inc. (ASX: RMD). These are companies with hard-to-replicate competitive advantages and strong pricing power, which are qualities that help them ride out economic downturns far better than more speculative stocks.

For new investors who want exposure to high-quality Australian shares without having to analyse balance sheets and annual reports, this fund could be a very user-friendly way to begin building wealth. It was recently named as one to consider buying by analysts at Betashares.

BetaShares India Quality ETF (ASX: IIND)

For beginners wanting international diversification, the BetaShares India Quality ETF could be worth a shout. It offers a compelling long-term growth opportunity.

India is one of the world’s fastest-growing major economies, supported by a booming middle class, rising consumption, rapid digitisation, and ongoing economic reforms.

It holds leading Indian businesses such as Tata Consultancy Services (NSEI: TCS), Infosys (NYSE: INFY) and HDFC Bank (NYSE: HDB). These companies are deeply entrenched in sectors like technology, banking, software services and consumer spending, all of which are expanding quickly as India scales up.

It was also recommended by analysts at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, if there’s one index that has delivered exceptional long-term returns, it is the Nasdaq 100 index. And the Betashares Nasdaq 100 ETF gives beginners direct access to it.

It holds some of the world’s most innovative and influential companies, including Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL). These businesses sit at the centre of global megatrends like artificial intelligence, cloud computing, e-commerce and digital transformation.

Overall, for a beginner with a decade-plus time horizon, it could be a powerful engine of wealth creation.

The post 3 of the best ASX ETFs for beginners to buy with $1,000 appeared first on The Motley Fool Australia.

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• The fundamentals behind quality investing according to experts
• 5 reasons to buy the Betashares Nasdaq 100 ETF
• No savings at 55? Here’s how to still retire with passive income
• 5 ASX ETFs to buy with $10,000 in December
• What $5,000 invested in ASX ETFs today could become in 10, 15, and 20 years

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, CSL, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, CSL, Microsoft, Nvidia, ResMed, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HDFC Bank and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CSL, Microsoft, Nvidia, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Corporate Travel Management Ltd (ASX: CTD) shares have been out of action for over three months.

The corporate travel specialist’s shares haven’t traded since being suspended on 22 August.

And they will remain that way while auditors and investigators continue to work through significant historical accounting issues.

What has been announced?

This morning, Corporate Travel Management revealed the scale of the review and several immediate repercussions for the business.

According to the release, KPMG’s forensic team in the UK has spent months analysing approximately 47,000 documents and more than 1.5 million individual sales and purchase transaction lines, covering over GBP 400 million in transactions for its UK business.

The draft interim report delivered on 23 November identified two key issues:

• Incorrect revenue recognition relating to several large customer contracts completed between 2021 and 2023. These “Concluded Customer Contracts” account for GBP 45.4 million of revenue that should not have been recognised.
• Additional irregularities relating to other revenue earned by Corporate Travel Management (North).

The company now expects restatements across FY 2023 and FY 2024 of up to GBP58.2 million and further FY 2025 adjustments of up to GBP19.4 million. These are due in part to customer refunds and contracts where revenue can no longer be recognised with certainty.

Given the scale of the required corrections, the company has withdrawn its FY 2025 guidance, previously issued in May.

Immediate actions

The company outlined several steps now underway, including communicating with impacted customers, completing the forensic review with KPMG, restating prior years’ financial statements, and conducting a full external governance review.

The company’s board also confirmed that the CEO of CTM UK and Europe, Michael Healy, has been temporarily stood down with immediate effect. The company’s global COO, Eleanor Noonan, is stepping in as interim leader during the investigation.

Corporate Travel Management also disclosed that its FY 2025 accounts will include an additional $13.9 million in provisions related to the ANZ region. Though, these are separate from the UK issues.

Suspension to continue

The company says it remains well-capitalised, with A$148.3 million in cash and no drawn debt as at 31 October. However, it acknowledged that customer refunds could impact near-term liquidity, with timing and amounts still uncertain.

It has also secured an extension from ASIC to lodge its FY 2025 financial statements by 31 December. Though, it concedes that it is unlikely to meet that deadline. This could mean that we don’t see Corporate Travel Management shares return to the ASX boards before the end of the year.

Commenting on the news, the company’s chair, Ewen Crouch AM, said:

We recognise how serious this situation is and the concerns it has caused. We deeply regret and sincerely apologise for the impact of the trading suspension on our shareholders. We also extend our sincere apologies to the affected clients in the UK. While further investigation is required, including a comprehensive review of our UK operations and our overall governance framework, we remain fully committed to taking the necessary action to restore confidence.

Corporate Travel Management’s managing director, Jamie Pherous, added:

We recognise the impact this situation has had on our shareholders and affected UK clients, and we unreservedly apologise. Our priority is to uphold the highest standards across our operations, work closely with our auditors to finalise the FY25 financial statements, and implement all necessary measures to strengthen the company. While this work continues, we remain firmly focused on delivering quality service to our clients across all markets.

The post 3-month suspension: What’s going on with Corporate Travel shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday

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

ASX 200 tech shares have experienced a dramatic sell-off, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) now 22% lower than its September peak.

The ASX 200 tech stock index hit a record 3,060.7 points on 19 September.

Today, it’s 2,387.1 points, down 22% in just 10 weeks.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 1.7% over the same timeframe.

All 11 market sectors have fallen from their historical high points set this year, but technology is the worst performer of the bunch.

Wilsons Advisory equity strategist Greg Burke says domestic factors are mostly to blame for the dramatic fall in ASX 200 tech shares.

Burke says the tech sector has been oversold and opportunities abound.

What’s dragging ASX 200 tech shares down?

In an article, Burke discussed the domestic factors weighing ASX 200 tech shares down.

Firstly, he points to an unwinding in sector momentum, commenting:

… tech sector valuations had become demanding, peaking at ~100x forward earnings in August.

With tech stocks effectively ‘priced to perfection’, even modestly underwhelming updates from WiseTech Global Ltd (ASX: WTC), TechnologyOne Ltd (ASX: TNE) and Xero Ltd (ASX: XRO) have been enough to trigger a sharp rotation out of the sector, likely amplified by quant-flows.

On Friday, the WiseTech share price is $73.60, up 5.6% today and down 23.8% since the tech sector’s peak on 19 September.

The Xero share price is $123.29, up 0.1% today and down 24.2% since 19 September.

TechnologyOne shares are $30.41, up 1% today and down 20.7% since 19 September.

Secondly, Burke says a sell-off in Australian bonds has also weighed on ASX 200 tech shares.

… domestic government bond yields have risen ~40 bps since mid-October, and the AU–US 10-year spread has widened, driven by hotter-than-expected Australian CPI and solid labour market data.

This has weighed on the valuations of interest-rate-sensitive growth stocks on the ASX, particularly within the tech sector.

Another factor is significant mergers and acquisitions (M&A) activity by the tech sector’s two largest companies.

Xero completed its US$2.5bn purchase of Melio, while WiseTech closed its largest-ever acquisition – the US$2.1bn purchase of e2open.

Both deals have clear strategic merit, but carry integration risks, while they also face an ASX investor base that is generally sceptical of large offshore M&A.

In Xero’s case, the sizable capital raise appears to have contributed to material stock indigestion, with seemingly few incremental buyers for the stock post the raise.

The final domestic factor is investors’ concerns over governance at Wisetech.

… after a year of scrutiny, WiseTech faces an AFP–ASIC insider-trading investigation over blackout-period share sales by founder Richard White and other senior executives, with multiple former directors now being questioned.

The ongoing uncertainty has created a material overhang on the company’s share price, weighing on the broader sector.

Should you buy tech stocks?

Burke says the pullback in ASX 200 tech shares “appears to have created attractive buying opportunities”.

While past performance is not a reliable predictor of future returns, drawdowns of more than 10% have historically presented attractive buying opportunities in the tech sector for patient capital willing to look through near-term volatility. 

This has been particularly true when underlying company fundamentals remain solid and macro conditions – particularly long-term bond yields – are relatively stable.

Both conditions largely hold today: the ASX 200 IT sector still offers a three-year forward EPS CAGR of 24% (well above the 8% offered by the broader ASX 200), while a consensus ‘on-hold’ RBA view – alongside our expectation of range-bound to lower bond yields – suggests tech valuations are unlikely to face additional material macro headwinds.

Wilsons Advisory’s preferred large-cap ASX 200 tech shares are TechnologyOne and Xero. 

The post What’s driving the dramatic drop in ASX 200 tech shares? appeared first on The Motley Fool Australia.

More reading

• Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today
• 4 ASX 200 large-cap shares with new ratings from Morgans
• 3 ASX stocks I’d trust with $10,000 for the next decade
• The Warren Buffett golden rule that investors can’t ignore
• These top ASX 200 stocks could rise 25% to 60%

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 Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. 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 on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.1% to 8,627.7 points.

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

HMC Capital Ltd (ASX: HMC)

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

Select Harvests Ltd (ASX: SHV)

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

Web Travel Group Ltd (ASX: WEB)

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

WiseTech Global Ltd (ASX: WTC)

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

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

More reading

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

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

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

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

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

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

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

Let’s dig in.

Taking a $10,000 stake in Woodside shares

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

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

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

But wait. There’s more!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More reading

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

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

What is going on?

Zip shares zig-zag all over the place!

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

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

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

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

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

The operating margin was 19.5%.

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

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

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

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

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

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

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

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

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

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

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

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

Expert tips for the Zip share price

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

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

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

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

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

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

More reading

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

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Harvey Norman Holdings Ltd (ASX: HVN)

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

Mirvac Group (ASX: MGR)

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

Qube Holdings Ltd (ASX: QUB)

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

Suncorp Group Ltd (ASX: SUN)

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

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

More reading

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

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