Tag: Stock pick

It was another busy week for 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:

DroneShield Ltd (ASX: DRO)

According to a note out of Bell Potter, its analysts have retained their buy rating on this counter-drone technology company’s shares with a reduced price target of $4.80. This follows the release of full-year results that were a touch short of expectations. This was due to a weaker-than-expected gross margin. Nevertheless, Bell Potter remains very positive on the investment opportunity here. The broker highlights that the company has a market-leading offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. Bell Potter is also predicting 2026 to be an inflection point for the global C-UAS industry with a wave of spending on solutions. As a result, it believes DroneShield should see material contracts flowing from its $2.3 billion potential sales pipeline over the next three to six months. The DroneShield share price ended the week at $3.62.

Guzman Y Gomez Ltd (ASX: GYG)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this quick service restaurant operator’s shares with a trimmed price target of $27.30. This follows the release of a half-year result that missed consensus estimates due to another poor performance in the United States market. Macquarie is looking beyond this. It believes the long-term outlook for the Australian business is positive. And while there is uncertainty for the US business, it isn’t overly concerned, noting that management has the option for closing the business if the losses continue. In light of this, it feels that recent share price weakness has created a buying opportunity for investors. The Guzman Y Gomez share price was fetching $19.30 at Friday’s close.

Woodside Energy Group Ltd (ASX: WDS)

Analysts at Morgans have retained their buy rating on this energy giant’s shares with an improved price target of $30.50. According to the note, the broker was pleased with Woodside’s FY 2025 result. It notes that its profit and dividends were ahead of expectations. The good news is that Morgans sees further upside potential ahead from a recovering oil price and the successful execution of new projects. The broker also believes there’s potential for a production guidance upgrade in FY 2026 if everything runs smoothly. The Woodside share price was trading at $28.31 on Friday.

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

More reading

• 7 ASX All Ords shares finish earnings season on a 52-week high
• 3 ASX dividend stocks I think every Aussie should own
• Brokers name 3 ASX shares to buy today
• How high can the DroneShield share price climb in 2026?
• Forget DroneShield shares, this ASX drone stock could rocket 30%

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

It is not often that high-quality ASX dividend shares go on sale.

But that is exactly what appears to have happened with Lovisa Holdings Ltd (ASX: LOV).

The fashion jewellery retailer’s shares are down 45% from the 52-week high of $43.68 reached in August last year.

And at $23.93, they are now trading not far from their 52-week low of $20.23.

Let’s see why this could be a buying opportunity for income investors.

What’s happening?

This is not a business in decline. In its half-year results, Lovisa delivered total revenue growth of 23.3% to $500.7 million and comparable store sales growth of 2.2%. Underlying net profit after tax rose 21.5% to $69.6 million.

Comparable sales growth has slowed compared to boom periods, but a positive 2.2% comp in a tough consumer environment is hardly alarming. It shows resilience, not weakness.

The real engine of Lovisa is store growth. The ASX dividend share opened 85 new stores during the half, taking its global footprint to 1,095 stores across more than 50 markets.

Europe continues to accelerate, the Americas are scaling, and management has the balance sheet to keep investing. Cash flow from operations rose 30.3% to $183.8 million, providing plenty of fuel for further rollout and earnings and dividend growth.

Should you invest?

The team at Morgans remains bullish on this ASX dividend share. It currently has a buy rating and $36.80 price target on its shares. This implies potential upside of over 50% for investors over the next 12 months. It said:

LOV reported a strong underlying 1H26 result with EBIT up 20.4%, ~6% ahead of our expectations, driven by store network growth and strong gross margins. During the period, the pace of store rollout continued with a net of 64 new stores in the period, bringing the total count to 1,095. We have increased our EBIT by 3%/1% respectively in FY26/27, driven by higher sales and gross margin offset by higher costs and D&A. We see the pull back in share price as a buying opportunity at ~23x FY27 PE. Our valuation lowers to $36.80 (from $40) and we retain our BUY recommendation.

As for income, the broker is forecasting partially franked dividends of 87 cents per share in FY 2026 and then 117 cents per share in FY 2027. This equates to dividend yields of 3.6% and 4.9%, respectively.

The post 1 magnificent ASX dividend share down 45% to buy and hold for decades appeared first on The Motley Fool Australia.

More reading

• 35 ASX All Ords shares with ex-dividend dates next week
• Where to invest $5,000 in ASX mid-cap shares
• 3 exciting ASX growth shares to buy now
• Top ASX shares to buy right now with $2,500
• Experts name 3 ASX 200 shares to sell now

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

Materials led the 11 ASX 200 market sectors by a long shot in the final week of earnings season, rising 7.41%.

As usual, it was the major ASX 200 mining shares that propelled the sector higher.

The highlight was the BHP Group Ltd (ASX: BHP) share price ascending to its highest level in 140 years as a listed company.

BHP shares rose above their previous record of $54.55, set in mid-2021, on Monday; then lifted further to $58.29 on Thursday.

BHP also took back its title as the market’s largest company from Commonwealth Bank of Australia (ASX: CBA) on Friday.

Meantime, the S&P/ASX 200 Index (ASX: XJO) rose 1.29% to finish the week at a record high of 9,198.6 points.

Six of the sectors finished the week in the green.

Let’s review.

ASX materials sector back in the saddle

The Rio Tinto Ltd (ASX: RIO) share price lifted 2.47% to finish the week at $167.33.

The Fortescue Ltd (ASX: FMG) share price rose 5.49% to $21.14 after the miner revealed its 1H FY26 results on Wednesday.

Mineral Resources Ltd (ASX: MIN) shares rose 19% to $60.98.

The ASX 200 mining share is riding a new wave of momentum after reporting record EBITDA of $1.2 billion for 1H FY26, up 286%.

The South32 Ltd (ASX: S32) share price climbed 4.78% to $4.60.

Among the ASX 200 gold mining shares, Northern Star Resources Ltd (ASX: NST) rose 6.88% to close at $30.28 on Friday.

The Newmont Corporation CDI (ASX: NEM) share price increased 5.73% to $177.20.

Evolution Mining Ltd (ASX: EVN) shares rose 10.17% to finish the week at $16.58.

The Evolution share price reached a record $16.99 in intraday trading on Friday.

ASX 200 copper pure-play Sandfire Resources Ltd (ASX: SFR) rose 7.17% to $20.19 on Friday.

Capstone Copper Corp CDI (ASX: CSC) shares finished 4.48% higher at $14.70.

ASX 200 lithium mining share PLS Group Ltd (ASX: PLS) soared 24.16% to close the week at $5.19.

PLS Group shares are also on an upward trajectory after the miner revealed a 241% EBITDA surge in 1H FY26.

The Liontown Ltd (ASX: LTR) share price rose 5.25% to $1.71 on no price-sensitive news last week.

Among ASX 200 ASX rare earths shares, Lynas Rare Earths Ltd (ASX: LYC) ripped 21.05% higher to $18.98.

Last week, Lynas Rare Earths reported a net profit of $80.2 million for 1H FY26, up from $5.9 million in 1H FY25.

Scores of ASX 200 shares have ex-dividend dates next week. Check them out here.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Materials (ASX: XMJ)	7.41%
Consumer Staples (ASX: XSJ)	4.99%
Information Technology (ASX: XIJ)	2.3%
Communication (ASX: XTJ)	1.62%
Industrials (ASX: XNJ)	0.73%
Energy (ASX: XEJ)	0.3%
Utilities (ASX: XUJ)	(1.1%)
Financials (ASX: XFJ)	(1.23%)
Healthcare (ASX: XHJ)	(1.46%)
A-REIT (ASX: XPJ)	(1.81%)
Consumer Discretionary (ASX: XDJ)	(3.32%)

The post ASX 200 materials sector leads as earnings season ends with a record high appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for a stress-free start to investing
• These ASX 200 shares jumped 15% or more in February
• Buy, hold, sell: Fortescue, NextDC, and Woolworths shares
• Here are the top 10 ASX 200 shares today
• 7 ASX All Ords shares finish earnings season on a 52-week high

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

The Australian share market has traditionally delivered a return in the region of 10% per annum.

While that is a great return, there are ASX 200 shares out there with the potential to outperform this.

For example, the two buy-rated ASX 200 shares listed below have been tipped to rise by more than 20% over the next 12 months by brokers.

Here’s what they are saying about them:

NextDC Ltd (ASX: NXT)

The team at Morgans remains very bullish on this data centre operator following the release of its half-year results last month.

In response to the results, the broker has retained its buy rating with an improved price target of $20.50. Based on its current share price of $13.88, this implies potential upside of almost 50% for investors between now and this time next year.

Morgans highlights that the company is experiencing incredible demand for capacity in its data centres. So much so, it believes that it is destined to deliver EBITDA of $700 million in FY 2029 even if it didn’t win another contract before then. As a comparison, for the first half of FY 2026, NextDC reported EBITDA of $115.3 million, which annualises to approximately $230 million.

Commenting on the ASX 200 share, the broker said:

NXT sold more MWs in the month of December 2025 than in the preceding 36 months combined. It was a record sales period for enterprise and hyperscale. The 416MW now contracted underpins FY29 underlying EBITDA of >$700m (without new contract wins) and sees NXT trading on an undemanding ~22x EV/Contracted EBITDA, with upside potential. BUY retained and target price lifted to $20.50 from $19.00 following our upgrades.

Elders Ltd (ASX: ELD)

Bell Potter continues to believe that the market is undervaluing this ASX 200 share.

Last week, the broker retained its buy rating on the agribusiness company’s shares with a trimmed price target of $9.00. Based on its current share price of $7.26, this suggests that upside of approximately 25% is possible between now and this time next year.

It also expects a generous 5.4% dividend yield over the period, lifting the total potential return to approximately 30%.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. We see encouraging signs for FY26e, with livestock turnoff values exhibiting double digit YoY growth through 1H26TD, mitigated in part by dryer conditions through most of the summer cropping window and an easing in input price tailwinds. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at 13.3x FY26e EPS.

The post These ASX 200 shares could rise 25% to 50% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, NextDC, and Woolworths shares
• Bell Potter just updated its guidance on these ASX 300 shares
• Why I’m still backing ASX growth shares for the long run
• Elders sells Killara Feedlot in $195.8m deal
• This ASX 200 tech stock is up 5% on results and ‘unprecedented demand’

Motley Fool contributor James Mickleboro has positions in Nextdc. 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 Elders. 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) had a very strong month in February and raced notably higher. The benchmark index rose 3.7% during the period to end at 9,198.6 points.

Not all ASX 200 shares climbed with the market. For example, the four named below fell 20% or more during the month. Here’s why:

Austal Ltd (ASX: ASB)

The Austal share price was out of form and sank 26% in February. This was driven by the release of a disappointing earnings guidance update from the ship builder. Austal advised that it previously overstated its potential earnings for the year after accidentally including incentives that had already been recognised in Austal USA’s forecast. This meant there was a US$17.1 million overstatement included in its FY 2026 EBIT guidance. In light of this, Austal downgraded its EBIT guidance for FY 2026 to approximately A$110 million from A$135 million previously.

CSL Ltd (ASX: CSL)

The CSL share price was sold off and crashed almost 20%. This was driven by a combination of a soft half-year result from the biotech giant and news that its CEO, Dr Paul McKenzie, resigned out of the blue a day earlier. CSL’s chair, Dr Brian McNamee AO, said: “Paul and the Board have determined that now is the right time for new leadership to continue to drive CSL’s strategic transformation and performance.” As for its results, CSL posted underlying NPATA of US$1.9 billion, which was down 7% on the prior corresponding period and short of expectations. However, it did reaffirm its guidance for FY 2026.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in February. A good portion of this came after the health imaging technology company released its half-year results. Pro Medicus reported a 28.4% increase in revenue to $124.8 million and a 29.7% lift in underlying profit before tax to a record of $90.7 million. This was softer than some were expecting. Pro Medicus’ CEO, Dr Sam Hupert, said: “Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half.” In addition, concerns over AI disruption weighed heavily on software stocks last month.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price was a poor performer and sank 32% last month. This followed the release of the online furniture retailer’s half-year results. The company reported a 19.8% increase in revenue to $375.9 million and a more modest 13% lift in EBITDA to $14.9 million. This ultimately led to Temple & Webster recording a net profit that was over 30% lower than consensus estimates.

The post These ASX 200 shares sank 20% or more in February appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for a stress-free start to investing
• How to make $25,000 of passive income a year
• 3 Australian growth stocks to buy in 2026
• Why Nvidia’s insights suggest ASX tech shares are undervalued
• ASX 200 at a record high? Here’s where I still see value

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

If I were 25 and had $10,000 ready to invest in ASX shares today, I wouldn’t be chasing dividends.

I wouldn’t be trying to time the market either.

At that age, your biggest advantage isn’t stock-picking skill. It’s time. Decades of compounding can turn sensible decisions into serious wealth. So the ASX share portfolio I’d build would focus on growth, resilience, and long-term structural tailwinds.

Here’s how I’d think about it.

Give your ASX share portfolio a broad market core

Even at 25, I wouldn’t go all-in on individual stocks.

I’d want a solid foundation that gives exposure to the Australian market. For that, I’d use the Betashares Australian Quality ETF (ASX: AQLT).

This exchange-traded fund (ETF) provides instant diversification across many of Australia’s highest-quality companies. It reduces single-stock risk and ensures I’m participating in overall economic growth.

Allocation: $4,000

That gives the portfolio a stable core while leaving room to lean into higher-growth opportunities.

Add global exposure

Australia is a great market, but it’s small on a global scale.

At 25, I’d want exposure to the US and other developed markets, especially in sectors we lack locally, such as global tech and advanced healthcare.

For that, I’d add the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF provides exposure to over 1,000 international companies, spreading risk across regions and industries.

Allocation: $3,000

Now we have a diversified base across Australia and the world.

Add a high-quality ASX growth stock

With 40+ years until retirement, I’d be comfortable allocating part of the portfolio to a high-quality growth business.

One I like for a young investor is ResMed Inc (ASX: RMD).

ResMed operates in sleep and respiratory health, with long-term structural drivers such as ageing populations and rising awareness of sleep apnoea. It generates strong cash flow, reinvests heavily in innovation, and benefits from a connected digital ecosystem.

This is the kind of company I’d be comfortable holding for decades.

Allocation: $1,500

Add a scalable Australian compounder

I’d also want exposure to a domestic business with strong competitive advantages and a long growth runway.

One example is Hub24 Ltd (ASX: HUB).

Hub24 continues to grow funds under administration as advisers migrate to modern platforms. With structural tailwinds from the shift to professional financial advice and superannuation growth, I think it has long-term compounding potential.

At 25, I can tolerate volatility if the long-term story remains intact.

Allocation: $1,500

What this portfolio looks like

• $4,000 in Australian market ETF
• $3,000 in global market ETF
• $1,500 in a global healthcare growth leader
• $1,500 in an Australian platform compounder

It’s diversified. It has global exposure. It leans into growth. And it keeps things simple.

Foolish Takeaway

You don’t need perfect stock picks. You need time, patience, discipline, and exposure to growing businesses.

If I were starting at 25 today, this is the mix I’d feel comfortable building around. It gives me market exposure, global reach, and long-term growth potential.

From there, I’d focus less on daily price moves and more on steadily building the portfolio. Because at 25, the greatest asset isn’t cash. It’s time.

The post The $10,000 ASX share portfolio I’d build for a 25-year-old today appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for a stress-free start to investing
• 2 incredible ASX share investments I’d buy to build long-term wealth
• How to make $25,000 of passive income a year
• The lazy investor’s guide to ASX ETFs
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Hub24 and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Want to start investing without constantly checking share prices or second-guessing every earnings update? Broad-market ASX ETFs can take the pressure off.

With one trade, you get exposure to hundreds – even thousands – of companies, spreading risk and reducing the need to pick individual winners.

Here are 3 ASX ETFs that can offer a genuinely stress-free start to investing.

Betashares Australia 200 ETF (ASX: A200)

This ASX ETF is a straightforward way to own Australia’s 200 largest listed companies. Blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL) dominate its portfolio.

In one trade, you’re effectively buying a slice of the Australian economy. It spans from banks and miners to healthcare leaders and retailers. A200 ETF is known for its ultra-low management fee, which helps maximise long-term compounding.

While banking and mining heavyweights dominate the Australian market, this ETF provides broad, diversified exposure. All without the stress of choosing individual blue chips.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This fund opens the door to developed markets worldwide. This ASX ETF holds thousands of companies across the United States, Europe and parts of Asia.

Among its largest holdings are global giants such as Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and NVIDIA Corp (NASDAQ: NVDA). That exposure adds powerful technology and innovation leaders that are underrepresented on the ASX.

By spreading your money across multiple economies and industries, VGS ETF can help smooth returns over time. However, currency movements may influence performance in the short term.

iShares Core S&P/ASX 200 ETF (ASX: IOZ)

This ASX ETF is rounding out the trio. Like A200, IOZ ETF focuses on Australia’s largest 200 companies, tracking the S&P/ASX 200 Index (ASX: XJO). Its top holdings closely mirror the leaders of the local share market, including retail giant Wesfarmers Limited (ASX: WES) and Macquarie Group Ltd (ASX: MQG), alongside the major banks and miners.

This ASX fund offers strong liquidity and exposure to the companies that drive much of the ASX’s overall performance.

Foolish Takeaway

The beauty of these ASX ETFs is their simplicity. You can choose one as a starting point or combine Australian exposure through A200 or IOZ with global diversification via VGS.

Instead of chasing hot tips, you own broad sections of the market and let time and compounding do the heavy lifting.

For investors who want a calm, disciplined entry into the share market, that kind of structure can make all the difference.

The post 3 ASX ETFs for a stress-free start to investing appeared first on The Motley Fool Australia.

More reading

• The $10,000 ASX share portfolio I’d build for a 25-year-old today
• These ASX 200 shares jumped 15% or more in February
• 2 incredible ASX share investments I’d buy to build long-term wealth
• The one question I always ask before buying an ASX share
• Why Nvidia’s insights suggest ASX tech shares are undervalued

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, CSL, Macquarie Group, Nvidia, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, CSL, Nvidia, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s common knowledge that geographic diversification in your portfolio is critical. But one common misconception is that achieving it means investing on overseas exchanges. And historically, there was truth to that. Geographic location was a good indicator of a stock’s primary market exposure. But today, using domicile alone can be deceiving.

Here’s why earnings diversity is critical – and how you can achieve it without leaving the ASX.

It’s likely your risks are already concentrated in Australia

Most Australian investors instinctively look to the ASX for their first and often biggest investments. It feels familiar, you’re dealing in Australian dollars, you may avoid some additional tax filing requirements, and your money stays in Australia’s highly regulated environment. And that’s before we even get into the benefits of Australia’s franking credits system. 

But Australia is a small pond. It makes up less than 2% of the global equity market and only 0.33% of the world’s population, so you risk putting all your eggs in one very small basket. 

Additionally, it’s likely that you’re heavily exposed to the Australian economy before you start your portfolio. Your job, your salary, your house and most of your large assets probably sit here. And for most Australians, superannuation is tilted toward domestic shares. It means you’re already flying in one weather system, and if a storm hits the Australian economy, you’re exposed to it on many fronts.

The good news is that you can achieve global exposure without leaving the ASX.

Follow the money on the ASX

Where a company is located is largely irrelevant today. In fact, you could build a portfolio across the ASX, NASDAQ, Nikkei and FTSE, assuming you have achieved diversification, and still be disproportionately invested in one region because that’s where your investments make most of their revenue.

Instead of looking for overseas-based companies to achieve this, you can follow the money and stay on the ASX, by considering:

• Where does the company earn most of its income?
• Where are the majority of its customers based?
• What currency does it transact in?

It’s these factors that determine its exposure to economic, social, regulatory and geopolitical – and, therefore, your geographic diversification.

What ASX shares can I invest in to gain global exposure?

You can build geographic diversity on the ASX with some solid performers. Here are three that are worth a look to get you started:

• Amcor PLC (ASX: AMC) The packaging giant makes most of its money in the US (50%), followed by Western Europe (28%). In fact, Australia and New Zealand combined account for only 1% of its revenue.
• Codan Ltd (ASX: CDA):  Codan makes most of its communications technology and metal detecting equipment sales across North America (40%), Europe and the Middle East (29%) and Africa (18%).
• Brambles Ltd (ASX: BXB):  This large supply chain logistics player brings most of its sales revenue from the Americas (55%) and Europe and the Middle East (37%).

Foolish bottom line

When your income, assets and super are already tied to Australia, doubling down by investing purely in Australian‑centric companies can leave you over-exposed to one economic climate. By focusing on earnings geography rather than company location, you open your portfolio to the other 98% of global market opportunity, all without leaving the relative comfort of the ASX.

The post Diversification: Why earnings geography matters more than company location appeared first on The Motley Fool Australia.

More reading

• In Wilsons Advisory’s ideal portfolio, what are the 10 top stock picks?
• 2 ASX growth shares set to soar higher in 2026
• Top brokers name 3 ASX shares to buy today
• 3 ASX shares that look cheap according to Morgans
• Why I’d forget NAB shares and buy these top Aussie stocks

Motley Fool contributor Melissa Maddison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. 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) was on form in February and managed to carve out a gain of 3.7%.

While that was strong, some ASX 200 shares delivered far more for their lucky shareholders.

Here’s why these shares jumped more than 15% last month:

BHP Group Ltd (ASX: BHP)

The BHP share price surged 15.5% in February. Investors were buying the mining giant’s shares following the release of its half-year results. BHP reported an 11% increase in revenue to US$27.9 billion and a 25% lift in underlying EBITDA to US$15.46 billion. A key driver of this growth was its copper operations, which reported record EBITDA of US$8 billion. This meant that copper contributed the majority of earnings for the first time in its history. Another positive was news that BHP has entered into a long-term streaming agreement with Wheaton Precious Metals Corp. (NYSE: WPM). The Big Australian will receive an upfront payment of US$4.3 billion. In exchange, it will deliver Wheaton a share of silver produced at the Antamina mine in Peru. This agreement represents the most valuable streaming transaction to date based on the upfront consideration.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price raced 17% higher during the month. Australia’s largest bank impressed the market with its half-year results in February. For the six months, CBA reported a 6% increase in cash net profit to $5,445 million and lifted its fully franked interim dividend by 4% to $2.35 per share. CBA’s CEO, Matt Comyn, said: “Economic growth strengthened during the half, driven by increases in consumer demand and rising investment in AI and energy infrastructure.”

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price was on fire and rocketed 27% in February. This followed the release of the rare earths producer’s half-year results. Lynas posted a 63% increase in revenue to $413.7 million and net profit after tax of $80.2 million. The latter compares to a profit of just $5.9 million a year earlier. The company’s CEO and managing director, Amanda Lacaze, said: “The December half of FY2026 was an exciting one for Lynas. We completed commissioning for the Mt Weld expansion project, delivered the first half year of Heavy Rare Earth production at Lynas Malaysia, launched the Towards 2030 growth strategy and successfully completed an equity raising to support our growth agenda.”

PLS Group Ltd (ASX: PLS)

The PLS share price rose 21% during the month. This was driven by the release of a strong half-year result from the lithium miner. PLS’ revenue jumped 47% to $624 million and its underlying EBITDA surged 241% to $253 million. This was driven by a combination of higher production volumes, lower costs, and a rebound in lithium prices. PLS’ managing director and CEO, Dale Henderson, said: “PLS delivered a strong first half, generating Underlying EBITDA of $253 million at a 41% margin reinforcing our low cost position and ability to generate positive EBITDA through the cycle. The result was driven by higher realised pricing, reliable operating performance and continued cost discipline, with unit operating costs declining 8% to $563 per tonne (FOB).”

The post These ASX 200 shares jumped 15% or more in February appeared first on The Motley Fool Australia.

More reading

• The one question I always ask before buying an ASX share
• Here are the top 10 ASX 200 shares today
• Why the Lynas share price could crash almost 40%
• Game on! BHP retakes biggest ASX stock crown as CBA shares sink
• BHP share price has 20% more growth to come: expert

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 recommended Lynas Rare Earths Ltd. 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.

Investing in (ASX) shares for the long-term is a powerful tool because of how compounding and profit growth can lead to great results for shareholders.

If an investment goes up by an average of 10% per year – roughly the long-term return of the global share market – it will double in approximately eight years. If something goes up in value by 15% per year it’ll double in just five years.

No investment is guaranteed to go up by that much, but certain areas of the share market look destined to outperform the S&P/ASX 200 Index (ASX: XJO) over the long-term because of their earnings growth, global ambitions and profitability.

I’m going to talk about two exchange-traded funds (ETFs) that I think are very appealing. I’m calling them ASX shares because they provide access to shares and trade on the ASX.

Vanguard MSCI index International Shares ETF (ASX: VGS)

There are a number of high-quality ASX shares that we can buy, but the ASX only makes up approximately 2% of the global share market. I think it’s a good idea to be invested in good businesses from the other 98%.

The VGS ETF provides low-cost exposure to many of the world’s largest companies that are listed in ‘major’ developed countries.

We’re talking about markets like the US, Japan, the UK, Canada, Germany, France, Switzerland, the Netherlands, Sweden, Spain, Italy, Hong Kong, Denmark and Singapore.

As you can see, it’s extremely diversified geographically and that helps reduce risk and accesses profit generation from across the world.

Secondly, VGS ETF owns a significant number of businesses. At the end of 31 January 2026, it had 1,286 positions, which means it’s very diversified.

But, it’s not appealing because it owns lots of businesses from various countries. To me, that’s just a useful bonus.

These are impressive businesses within the portfolio that have delivered good returns – the VGS ETF has returned an average of 15.1% per year. While past performance is not a guarantee of future performance, the future looks bright.

It’s invested in companies like Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, Costco and Intuitive Surgical – these businesses have the biggest influence on the VGS ETF’s return because they have the largest allocations. You don’t find this sort of growth potential with blue-chip ASX shares. The US giants are investing in new services like AI and other technology that could drive earnings higher.

Vanguard reported that the portfolio had an earnings growth rate of 21.2%, which is a strong tailwind for future share price growth. Additionally, it had a return on equity (ROE) of 19.8%, showing its quality and implies the level of return it can generate on future retained profits that are invested in the business.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is another ETF that doesn’t invest in ASX shares. Instead, it invests in high-quality US shares that have strong economic moats.

An economic moat is another word for competitive advantages, which is a key element that keeps a company ahead of challengers. A moat could be a cost advantage, brand power, intellectual property, network effects and so on. The stronger the moat, the harder it is for a business to hurt the market share/profit margin.

The MOAT ETF invests in businesses that Morningstar analysts believe the economic moat will endure (more likely than not) for the next 20 years. With that strategy, it gives me a lot of confidence to invest in the fund for the long-term.

In addition to that, the MOAT ETF only invests in businesses when analysts think that the business is trading at good value.

The effectiveness of that strategy has enabled the MOAT ETF to deliver an average return per year of 15.7% over the past decade. I plan to buy more of this ETF in the coming years, though it’s important to note that past performance is not a guarantee of future returns.

The post 2 incredible ASX share investments I’d buy to build long-term wealth appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• The lazy investor’s guide to ASX ETFs
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• How I’d Invest $25,000 in Vanguard ETFs today
• 5 amazing ASX ETFs to buy and hold for 20 years

Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Costco Wholesale, Intuitive Surgical, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.