Tag: Stock pick

These two very different companies have brokers excited, with Macquarie and Morgans recently releasing research notes with bullish share prices on each.

Let’s see who they like

Alpha HPA Ltd (ASX: A4N)

Alpha HPA is commercialising a process to manufacture ultra-high purity aluminium for use in high-tech applications.

Stage one of the company’s operations has been operational since late 2022, with the output being used for customer qualification, product validation and process optimisation.

A second stage is under construction, with first production expected for late 2027, and annual production targeted at 10,000 tonnes per year.

The company said in its recent annual report:

Using its proprietary Smart SX Technology, Alpha HPA has pioneered the world’s first application of solvent extraction to aluminium purification, enabling the production of a growing portfolio of ultra-high purity alumina, aluminium nitrate, aluminium hydroxide and synthetic sapphire material. The Company’s products are supplied to global markets including advanced semiconductors, Direct Lithium Extraction (DLE), lithium-ion batteries, pharmaceutical, LED lighting and synthetic sapphire, where exceptional purity and performance are critical.

Macquarie said in its research note that the company’s net loss of $42.7 million for FY26 was ahead of their estimates due to better stage one operating performance and higher grant income.

The broker said data centre construction was driving HPA demand in the semiconductor sector, and Alpha HPA was well-placed to take advantage of this.

Macquarie added:

Alpha is a compelling opportunity for long-term investors giving exposure to the AI theme along with attractive financial metrics at full ramp-up.

The broker has a share price target of $1 on Alpha HPA shares compared to 59.5 cents currently.

ReadyTech Holdings Ltd (ASX: RDY)

This company is a software as a service provider of cloud and AI software used in the education, workforce, government and justice sectors.

The company reported full year revenue of $125 million, at the lower end of revised guidance of $125-$127 million, with underlying EBITDA coming in at $35 million.

The company’s Chief Executive Officer Marc Washbourne said of the result:

FY26 was a year in which we strengthened the foundations for growth, transformed for an AI world and took decisive action on cost and capital allocation. Our result finished within revised guidance, with cash margin reaching what we believe is a low point. Our flagship products continue to compound. That was offset by elevated churn in parts of the mature portfolio, and enterprise customers where contracts are signed but subscription revenue is yet to commence as implementations progress.

The company is guiding to improved revenue of $128-$132 million this financial year.

Broker Morgans said the company was well-placed with its investment cycle having largely peaked.

They added:

Despite having seen more protracted implementation/sales cycles and churn in recent times, we still see RDY in a solid position to deliver growth over coming years as customers seek to modernise their enterprise software and convert from legacy systems. We have a speculative buy rating on the stock.

Morgans has a price target of $2.25 on ReadyTech compared to $1.51 currently.

The post 2 ASX shares tipped by brokers to return 49% to 68% appeared first on The Motley Fool Australia.

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• WiseTech shares had their best month in a year. Is this a buying opportunity?
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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 Macquarie Group and ReadyTech. The Motley Fool Australia 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.

Warren Buffett is famous for buying great businesses and holding them for years, sometimes decades. But “buy and hold” doesn’t mean “buy and never sell” your ASX shares.

Buffett has demonstrated that investors should be prepared to change their minds when the facts change. For ASX investors, there are three particularly important reasons to consider selling.

Something better comes along

One of Buffett’s most useful ideas is opportunity cost.

You don’t necessarily need to think a company is bad to sell it. If you own a decent business but another high-quality blue chip offers substantially better growth prospects, stronger economics or a much more attractive valuation, switching can make sense.

Buffett has done exactly this over the years, exiting businesses when he concluded his capital could be deployed more effectively elsewhere.

The same principle applies to ASX shares. If you own a mature company growing earnings at 4% a year on an expensive valuation, while another excellent business offers significantly better prospects at a similar price, it may be time to reconsider where your money is working hardest.

The economics or business proposition changes

This is arguably the most important reason to sell one of your ASX shares. Buffett doesn’t fall in love with a stock ticker. He focuses on the underlying business.

If the competitive advantage disappears, management changes direction, industry economics deteriorate or the company’s prospects are fundamentally different from when you bought it, the original investment thesis may no longer apply.

ASX investors have plenty to consider right now. Banks, for example, remain some of Australia’s most important companies, but changing mortgage demand, competition and interest-rate expectations can alter the earnings outlook of say Commonwealth Bank of Australia (ASX: CBA).

Energy companies like Woodside Energy Group Ltd (ASX: WDS) provide another example. A company can dramatically change its strategy as commodity prices, capital requirements or the global energy landscape shifts.

The lesson is simple: don’t hold a share just because you once loved the story.

When your position size becomes too big

Sometimes the company hasn’t done anything wrong — you’ve simply won too much.

Imagine buying an ASX share that doubles or triples and suddenly represents 35% of your portfolio. The business may still be fantastic, but your portfolio is now heavily dependent on one company.

Buffett has allowed Berkshire Hathaway’s biggest investments to become enormous, but individual investors don’t have Berkshire’s capital base, diversification or financial resources.

Taking some profits from a runaway winner can therefore be sensible risk management. Remember, you can sell a portion without abandoning the investment altogether.

Foolish Takeaway

The Buffett approach isn’t really “never sell”. It’s “know why you own something”.

If a better opportunity emerges, the business proposition changes, or one holding becomes too dominant, selling your ASX shares can be just as rational as buying them in the first place.

The post When to sell your ASX shares? Warren Buffett has 3 answers appeared first on The Motley Fool Australia.

More reading

• Home values just fell for a fifth straight month. Which ASX shares are most exposed?
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Motley Fool contributor Marc Van Dinther 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.

BHP Group Ltd (ASX: BHP) shares will trade ex-dividend tomorrow.

That means time is running out for ASX investors who want to bank the mining giant’s supersized final dividend.

In order to be entitled to receive a dividend, you must own the ASX share before its ex-dividend date.

So, if you want to receive BHP’s FY26 final dividend, you’ll need to buy the ASX 200 mining share today.

BHP shares are among 37 stocks going ex-dividend this week.

How much is the BHP dividend?

BHP declared a final dividend of 99 US cents for FY26, which is equivalent to A$1.38 on today’s exchange rate.

The FY26 final BHP dividend is 65% higher than the FY25 final dividend of 91.9 AU cents.

This is the richest final dividend for BHP shares in four years, and equates to a 72% payout ratio.

The full-year dividend totals US$1.72 per BHP share.

That’s a 56% increase, and the largest full-year BHP dividend in four years.

In its FY26 report, BHP said:

We have determined a final dividend of US$5.0 bn.

This brings total cash returns to shareholders announced for the year to US$8.7 bn, which is US$1.72 per share fully franked, the highest in four years.

The miner added:

Including the FY26 final dividend determined, we will have returned >US$115 bn to shareholders since the introduction of the Capital Allocation Framework in 2016.

The ASX 200 iron ore and copper miner is able to dish out bigger dividends this year due to stronger commodity prices.

BHP is now the world’s biggest copper producer, and in FY26 the copper price rose 18%.

The miner is also a major iron ore producer, and the iron ore price rose 7% in FY26.

BHP also produces metallurgical coal, which is used in steelmaking. The coal price rose 39% in FY26.

BHP will pay its FY26 final dividend to shareholders on 23 September.

What did BHP report for FY26?

BHP reported underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$32.9 billion, up 27% on FY25.

The underlying attributable profit was US$13.2 billion, up 30%.

Net operating cash flow came in at US$21.8 billion, up 17% on FY25.

Net debt as of 30 June was US$8.7 billion.

BHP achieved record iron ore production in FY26, while copper accounted for 54% of group EBITDA.

The BHP share price rose 10% during the August reporting season compared to a 1% bump for the S&P/ASX 200 Index (ASX: XJO).

Last week, the BHP share price hit a new record of $68.77 per share.

The post Last chance to grab the supersized BHP dividend today 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $630,000 superannuation balance is the amount the Association of Superannuation Funds of Australia (ASFA) estimates Australians need at age 67 to fund a comfortable retirement.

It’s the type of nest egg that many strive for and one that can support a comfortable lifestyle during their retirement years. 

Many Aussies focus hard on building their superannuation balance, ensuring the fund is performing well and adding extra contributions wherever they can.

It’s a solid strategy. But superannuation is more than just a savings pot to draw money from when you retire.

If invested wisely, your superannuation can also generate a passive income.

But how much passive income could the suggested $630,000 balance realistically generate each month?

Let’s take a look.

What passive income can I earn off my $630,000 superannuation balance?

To calculate your potential passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

For example, $630,000 x 3% = $18,900 per year in dividend payments.

And as your dividend yield increases, the passive income you can earn off your $630,000 super balance also increases.  

The figures are also based on cash dividends before any tax or franking credit benefits.

Break it down for me by yield. What could I earn?

We already know what your portfolio can generate if it yields around 3%.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will go up too because $630,000 x 4% = $25,200 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $31,500 every year in dividend payments off the same superannuation balance ($630,000 x 5% = $31,500).

At a 6% yield, you could earn an annual passive income closer to $37,800, and at 7%, that could be even higher, at around $44,100.

And so on… 

Give me some options for ASX shares that yield around 4% or 5%

A 4% or 5% yielding portfolio on a $630,000 superannuation balance will earn around $25,200 to $31,500 every year.

That’s a decent income, and there are a lot of quality high-yield ASX shares that yield around that level.

My top picks would be ASX blue chips like National Australia Bank Ltd (ASX: NAB), Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), Woodside Energy Group Ltd (ASX: WDS), Bendigo and Adelaide Bank Ltd (ASX: BEN), or Medibank Private Ltd (ASX: MPL). These blue chips are highly reputable stocks that all pay out around 4% to 5%.

Alternatively, defensive stocks like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), APA Group (ASX: APA), and TPG Telecom Ltd (ASX: TPG) are a good option because they are able to maintain stable earnings through each part of the economic cycle. And stable earnings translate to a stable dividend payout.

And what about high-yield options closer to 8%?

There are some high-yield options that could fit the bill. A yield around this level on a $630,000 superannuation balance could generate around $50,400 in annual passive income, but it comes with additional risk.

If high-yielding shares are still what you’re after, these would be my top picks.

Your best bet would be to go for an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). 

If you’re after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 8% at the time of writing.

The post How much passive income can I earn off a $630,000 superannuation balance appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Transurban Group, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, Bendigo And Adelaide Bank, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Gqg Partners, IPH Ltd , and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

August saw National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), and Commonwealth Bank of Australia (ASX: CBA) shares all come under pressure.

Indeed, amid a deteriorating outlook for the Aussie economy and housing market, all of the big four S&P/ASX 200 Index (ASX: XJO) bank stocks underperformed the 1.1% gains posted by the ASX 200 in the month just past.

Here’s how they stacked up.

CBA shares trail the pack

CBA shares tumbled 9.9% in August, closing the month trading for $159.90 apiece.

Though we should note that CBA stock traded ex-dividend on 19 August. If we add the final fully-franked dividend of $2.70 a share back in, then the accumulated value of Australia’s biggest bank stock declined by a lesser 8.4%.

CommBank reported its full-year FY 2026 results on 12 August.

CBA achieved a 6.2% year-on-year increase in operating income to $30.2 billion. And the bank’s cash net profit after tax (NPAT) of $11.0 billion was up 7%.

But investors appeared concerned over the outlook, with management noting that household spending is softening while it expects Australia’s economic growth to slow.

CBA shares closed down 0.7% on the day of the results release.

Westpac shares tumble on quarterly update

Westpac shares also just finished a month to forget, tumbling 8.8% to close out August trading for $34.55 apiece.

Westpac released its third-quarter update on 10 August.

Positively, the ASX 200 bank stock reported a 1% year-on-year increase in operating income to $5.7 billion, with the net interest margin (NIM) remaining steady at 1.89%.

On the bottom line, Westpac achieved a quarterly statutory net profit of $1.8 billion, up 3% from the prior quarter.

However, investors will also have noted the bank’s expectations of moderated lending growth in the months ahead.

And the bank could be facing higher non-performing loans.

According to management:

Credit impairment provisions were $5.3 billion as at 30 June 2026, with provisions above expected losses of the base case economic scenario increasing to $2.0 billion.

Like CBA shares, Westpac shares came under pressure following the update, closing the day down 5.9%.

NAB shares fall on lower home loans

NAB shares didn’t escape the selling pain in August either, closing the month down 6.5% to trade for $38.63 each.

NAB shares closed down 4.6% on 17 August following the release of the bank’s own third-quarter results.

Highlights from the quarter included cash earnings of $1.83 billion, up 2% from the first-half quarterly average (excluding large notable items). And NAB achieved a 32% increase in net profit to $1.81 billion.

But investors were favouring their sell buttons with management flagging a decline in the bank’s crucial home lending market.

“The Australian home lending market softened in 3Q26 with our applications down 15% compared with 2Q26,” NAB CEO Andrew Irvine said.

ANZ shares lead the pack

Outperforming NAB, Westpac, and CBA shares in August, though still edging lower, we find ANZ.

ANZ shares closed on 31 August trading for $37.20, down 0.3% over the month.

Unlike the other three big bank stocks, ANZ shares closed up 4.5% on 13 August following the release of the company’s third-quarter update.

While revenue was flat for the quarter, ANZ reported a cash profit of $1.90 billion, up 1% on the quarterly average for the half year ended 31 March.

And investors were favouring their sell buttons, despite ANZ noting a 12% drop in mortgage applications since the Federal Budget’s changes to property taxes.

The post How Westpac, ANZ, NAB and CBA shares stacked up in August appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

DroneShield Ltd (ASX: DRO) shares just closed out another volatile month.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company ended July trading for $1.70 apiece. On 6 August, those same shares closed the day at $2.28 each, putting the share price up 34.1% in just four trading days.

But most of those impressive gains evaporated over the remainder of the month, with DroneShield shares closing on 31 August trading for $1.77 apiece.

Despite the volatility, that still represents a 4.1% gain in August, handily outpacing the 1.1% one-month gain posted by the ASX 200.

Here’s what’s been catching investor interest.

What’s been moving DroneShield shares?

DroneShield shares closed flat on 10 August, despite the company announcing the launch of its RfRecon product.

Management noted that the portable radio frequency (RF) sensing and intelligence device allows operators to quickly identify, locate, and assess RF activity in active operational environments.

DroneShield CEO Angus Bean noted:

The electromagnetic spectrum has become one of the most important sources of operational intelligence on the modern battlefield, but collecting data is no longer enough. The teams that gain the greatest advantage will be those that can rapidly understand what they are seeing and confidently act on it.

ASX 200 defence stock falls on half-year results

DroneShield shares tumbled 11% on 26 August following the release of the company’s half-year results.

On the positive side, DroneShield achieved an all-time high first-half revenue of $125.8 million, up 74% year on year. And recurring revenue was up an impressive 229% to $11.5 million.

But the ASX 200 drone defence stock came under selling pressure with a half-year underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $12.4 million. That’s down from $8 million in positive EBITDA in H1 2025.

The loss was driven by rising costs and deteriorating margins, with DroneShield reporting a gross margin of around 53%, down from 58%.

The company has been investing in its next stage of growth, aiming to expand its production capacity, product development, and management capability to support larger global operations.

Management noted:

At a corporate and executive level, there has been a deliberate expansion in DroneShield’s organisational functions and capabilities to provide deeper experience and broader support across the Company in advance of the next phase of growth.

On the bottom line, DroneShield shares took a big hit on the day, with the company revealing a statutory net loss after tax of $32.2 million, down from a $2.1 million profit reported for the first half of 2025.

The post What on earth happened with DroneShield shares in August? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.3% to 9,052.1 points on Tuesday.

Among the 11 market sectors, energy is in the lead, up 1.7%, while consumer discretionary is the laggard, down 2.5%.

Let’s check out some new ratings on ASX shares today.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.30, down 2.8% today and up 14% over 12 months. 

Bell Potter has a buy rating on this ASX healthcare share following its FY26 results.

Analyst John Hester said: 

(All US$m) Revenues $120.2m and loss at the EBIT line -$49.9m were in line with our forecast. Ryoncil sales of $115m were at the mid-point of the guidance range.

Operating expenses $153m were dominated by R&D expense ($97m), driven by the investment in label expansion for Ryoncil and the ongoing Phase 3 trial for Rexlemestrocel in chronic lower back (CLBP).

Loss at NPAT $57.4m with net cash burn for the year -$43.8m inclusive of just -$13m in 2H26.

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

Pivotal moments in the short term include the interim readout on adult GvHD and the pending submission of the BLA for Rexlemestrocel in HF.

Challenger Ltd (ASX: CGF)

The Challenger share price is steady at $9.45 today, and up 14% over 12 months. 

Jonathan Tacadena from MPC Markets has a hold rating on this ASX 200 financial share. 

Tacadena said (courtesy The Bull): 

Australia’s largest annuities provider delivered a strong result in full year 2026. Statutory net profit after tax of $506 million was up 163 per cent. Annuity sales of $6.2 billion were up 19 per cent. It delivered a normalised return on equity of 11.6 per cent.

The full year ordinary dividend of 31.5 cents, fully franked, was up 7 per cent. The share buy-back was upsized to $450 million.

The shares have performed strongly since March. Hold for the buy-back and yield, and perhaps consider adding on any weakness.

APA Group Ltd (ASX: APA)

The APA share price is $10.82, down 0.6% today and up 22% over 12 months. 

Morgans has a sell rating on this ASX 200 utilities share. 

Analyst Damien Nguyen said: 

This energy infrastructure business provides investors with stable, regulated cash flows and a defensive earnings profile.

Total revenue was down 6.3 per cent in full year 2026, but profit after tax was up 81.4 per cent.

Balance sheet leverage is significant, in our view, and funding costs can be a challenging headwind.

The market is concerned about the shift away from gas may create uncertainty about future demand in the longer term.

Although APA is pursuing energy transition opportunities, we believe these are unlikely to materially improve earnings in the near term.

We believe investors can find better risk-adjusted opportunities elsewhere.

The post Buy, hold, sell: Challenger, APA Group, Mesoblast shares appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $90,000 per year in passive income?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Challenger. 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) notched a record closing high on 6 August and ended the month up 1.1%, but these five ASX 200 shares went the other direction.

Below, we look at five large-cap ASX companies that investors would have done well to avoid in August.

Centuria Capital Group (ASX: CNI)

Centuria Capital shares tumbled 17% in the month just past, closing out August trading at $1.22 apiece.

The real estate funds manager reported its FY 2026 results on 27 August.

The company reported operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $182.5 million and a 12.9% year-on-year increase in operating net profit after tax (NPAT) to $113.8 million.

But amid sticky inflation and potential further interest rate hikes, the ASX 200 share just closed out a month to forget.

Charter Hall Group (ASX: CHC)

Charter Hall shares were also best avoided in August.

Shares in the Aussie property investment and funds manager fell 17.2% over the month to close at $19.32 each.

Charter Hall released its FY 2026 results on 21 August.

Shares closed down 6.3% on the day, despite the company reporting operating earnings of $488.1 million. Operating earnings per security (OEPS) post-tax of 103.2 cents were up 26.8% from FY 2025.

But Charter Hall could also face headwinds if the Aussie property market struggles with higher interest rates for longer.

JB Hi-Fi Ltd (ASX: JBH)

The third ASX 200 share that had a month to forget is electronics retailer JB Hi-Fi.

JB Hi-Fi shares closed on 31 August trading for $66.90 each, down 18.3% for the month.

JB Hi-Fi shares plunged 12.3% on 17 August after the company reported its FY 2026 results.

On the positive side of the ledger, JB Hi-Fi achieved record revenue of $11.06 billion, up 4.8% year on year. And on the bottom line, the company reported a net profit after tax (NPAT) of $489.9 million, up 6%.

But investors were pressuring JB Hi-Fi shares amid concerns that FY 2027 could be a tougher year. Indeed, the company reported a 1.4% decline in comparable sales growth for JB Hi-Fi Australia for July.

Life360 Inc (ASX: 360)

Life360 shares also got walloped in August, falling 21% to end the month trading for $20.25 each.

Shares in the location-sharing software developer crashed by 19.4% on 11 August after the company released its second-quarter (Q2 2026) results.

Positively, Life360 achieved a 38% year-on-year increase in revenue to US$159 million. And adjusted EBITDA of US$31.1 million were up 53%.

However, the company’s second-quarter net income of US$5.1 million was down 17.8% from Q2 2025, while Life360’s net income margin (NIM) fell to 3%, down from 6% a year earlier.

Generation Development Group Ltd (ASX: GDG)

The fifth ASX 200 share to get heavily sold down in August is diversified financial services business Generation Development.

Generation Development shares tumbled 22.6% to close out the month trading for $3.18 apiece.

Shares closed down 15.4% on 27 August following the release of the company’s FY 2026 results.

On the plus side, the company achieved a 23% year-on-year increase in revenue to $178.7 million, with funds under management (FUM) rising 37% to $46.5 billion.

And Generation development reported underlying NPAT of $40.7 million, up 21% from FY 2025.

However, statutory NPAT fell 10% year on year to $31.9 million. And costs increased faster than revenue, with the company reporting a 26% increase in its operating expenses.

The post The five worst-performing ASX 200 shares in August unmasked appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares highly recommended to buy: Experts
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Santos Ltd (ASX: STO) shares are up around 2% to $8.28 at the time of writing.

Today’s increase means the shares have rebounded 8% over the past month and are up 35% for the year-to-date. The oil and gas major’s shares are also around 4% higher than 12 months ago.

Why are Santos shares climbing higher?

Santos shares have trended higher through 2026 so far as recurring tensions between the US and Iran continue to fuel concerns over global oil supplies and supported energy prices.

The shares spiked in February and March, around the time news first broke that conflict had escalated between the two nations. The shares continued climbing in value as the war heated up.

Rising oil prices were the main tailwind for Santos shares, as tight oil supply made prices highly volatile. 

But every time there is renewed optimism about a potential US-Iran peace agreement, the price of oil softens, and the Santos share price follows suit. In June and July the share price tumbled before rebounding again over the past month.

In mid-August, after the company posted its half-year FY26 results, Santos shares reached a multi-year high of $8.45 a piece.

The company reported a 2% year-on-year increase in sales revenue to US$2.62 billion. Production volumes were also higher, up 1.7% to 48 million barrels of oil equivalent (mboe).

But Santos also posted a 19% decline in its half-year statutory net profit after tax (NPAT), which fell to US$355 million. 

Santos also managed to generate free cash flow from operations from its strong base business performance.

The company is well placed to increase its production in the coming reporting periods, which could help boost earnings.

What do brokers tip for the ASX energy shares over the next 12 months?

Brokers are mostly bullish on Santos shares, with the majority tipping upside.

Market Index data shows all brokers have a strong buy rating on the shares. The $8.57 average target price implies an upside of around 3% over the next 12 months, at the time of writing.

Sentiment is similar on TradingView. The majority (13 out of 15) have a buy/strong buy rating on the shares. One rates Santos as a hold, and another rates it as a sell.

The $8.72 average target price implies a slightly higher 5% upside ahead, but some tip the shares to jump another 25% to $10.42 by this time next year.

Citi reaffirmed its buy rating on the ASX 200 energy share following its half-year update. The broker also increased its target price to $9, which is a little above the average.

Morgans maintained its hold rating on Santos shares following the announcement. The broker noted that the results beat estimates, but that it is impossible to quantify the risks posed by the Federal Government’s gas reservation policy ahead of its release. 

The post Santos shares rebound 8% in a month: Buy, sell or hold? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
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• 5 things to watch on the ASX 200 on Wednesday

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

ASX gold shares have had a strong month, and Morgan Stanley thinks investors may have another reason to keep watching the sector.

Aussie gold stocks have jumped 33.9% over the past month, lifting the sector’s weight in the S&P/ASX 200 Index (ASX: XJO) to around 6.1%.

The gold price has been doing a lot of the work. Spot gold is trading around US$4,456 an ounce at the time of writing, up almost 10% over the past month.

However, Morgan Stanley says the bigger story for miners could be the amount of cash they are set to generate.

Plenty more cash ahead

The broker expects the top 10 Australian gold miners to generate significantly more cash through to FY29.

If that plays out, companies could have more room to lift dividends, expand share buybacks, or strengthen their balance sheets.

Of course, a lot will depend on where the gold price goes next.

The market is currently pricing in a fairly big pullback, with consensus forecasts pointing to gold falling towards US$4,000 an ounce by FY29.

Morgan Stanley is more positive than that. Its commodities team expects gold to be around US$4,450 an ounce by late 2026 and believes it could trade above US$5,000 during 2027.

There are also some decent signs on the demand side.

According to The Australian, gold ETFs attracted around 70 tonnes across July and August, reversing the outflows seen in May and June.

Central banks have also stayed active, buying 345 tonnes in the first half of 2026, with China and Poland among the larger buyers.

If that demand holds up and gold prices stay around current levels, the cash flowing through the sector could remain pretty strong.

Northern Star is already returning cash

Northern Star Resources Ltd (ASX: NST) shares are up 0.68% to $23.60 at the time of writing and have gained around 18.6% over the past month.

Its FY26 result showed what a higher gold price can do, with revenue rising 19% to $7.62 billion and underlying EBITDA increasing 22% to $4.27 billion.

Northern Star declared a fully-franked final dividend of 30 cents per share and has also started a $500 million on-market share buyback, with $129 million completed by the FY26 result.

However, the company is still spending heavily, with FY27 capital investment expected to reach $2.55 billion to $2.94 billion as the KCGM expansion ramps up.

Evolution has taken it further

Evolution Mining Ltd (ASX: EVN) shares are up 0.24% to $14.915 and have climbed more than 32% over the past month.

The miner reported record FY26 group cash flow of $1.39 billion, up 76%, and increased its dividend payout target to around 60% of annual group cash flow.

That helped lift its full-year dividend to a record 41 cents per share.

Keep in mind that gold prices can still move quickly, particularly as interest rate expectations change.

But if Morgan Stanley is right, ASX gold miners could have a lot more cash to return to shareholders over the coming years.

The post ASX gold shares have surged 34% in a month. Morgan Stanley says this could come next appeared first on The Motley Fool Australia.

More reading

• ASX gold shares soared 34% in August. Is the run over?
• 5 things reporting season taught ASX investors about FY27
• Northern Star shares slide 5% as investors digest another surprise
• Why Liontown, Northern Star and Telstra shares are turning heads on Monday
• 5 things to watch on the ASX 200 on Monday

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