Tag: Stock pick

One section of the ASX that has struggled significantly in 2026 is travel stocks. 

While it doesn’t operate as one of the core sectors of the ASX, “travel stocks” refer to companies that operate in the leisure, travel, or tourism sectors.

Fundamentally, travel companies sell goods and services that help people get from one place to another – be it for business or pleasure.

Why are travel stocks struggling in 2026?

Travel is largely a discretionary activity. 

That means it’s not an essential need for the everyday consumer. 

A clear comparison can be made between consumer staples and discretionary companies.

Staples are goods and services we can’t live without, like groceries, healthcare, or utilities. 

These companies generally have steady, non-cyclical earnings, regardless of economic factors. 

Travel stocks, on the other hand, are highly sensitive to a mix of economic factors that influence people’s ability and willingness to travel. 

These factors include: 

• Economic growth (GDP) – Strong growth increases travel demand 
• Disposable income & consumer confidence – Higher income and confidence lead to more spending on travel
• Interest rates – Higher rates reduce spending power and travel budgets
• Fuel prices – Rising fuel costs increase expenses, especially for airlines
• Exchange rates – Currency strength affects affordability of international travel
• Inflation – Higher inflation raises costs and reduces real spending power
• Employment levels – More jobs can mean more people able to afford travel
• Global stability & events – Crises or disruptions can quickly impact travel demand. 

Glancing over this list, you might see why travel stocks have struggled this year, with plenty of these headwinds influencing people’s ability to travel. 

However, many travel stocks have now been heavily sold off. 

This means if headwinds subside in the back half of 2026, there could be value. 

Let’s look at three options to consider buying low. 

Web Travel Group Ltd (ASX: WEB)

Web Travel Group is an online travel agency that enables customers to search and book domestic and international travel flight deals, travel insurance, car hire, and hotel accommodation worldwide.

Its share price has fallen more than 44% year to date. 

However, 8 analyst forecasts via TradingView place an average price target of $5.86 on this travel stock. 

That indicates an upside of 121% from today’s price. 

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre operates a vast network of travel agencies under various brands worldwide, including Student Universe, Travel Money, Corporate Traveller, and Topdeck.

Its share price has tumbled nearly 25% year to date. 

A recent note out of Citi included a $16.75 price target on Flight Centre shares. 

This indicates a potential upside of 48% from today’s opening share price of $11.30. 

Helloworld Travel Ltd (ASX: HLO)

Helloworld is an Australian-based travel distribution company. It comprises a wide array of travel brands across three key business pillars: retail, wholesale, and inbound.

Its share price is down more than 17% year to date. 

However, Shaw and Partners placed a 12-month share price target of $2.80 late last month. 

This indicates nearly 80% upside from current levels. 

The post Is it time to buy low on these ASX travel stocks? appeared first on The Motley Fool Australia.

More reading

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• Why is the Flight Centre share price soaring 9% on Wednesday?
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• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is up 0.9% today, with this ASX All Ords gold stock charging ahead of those gains.

The fast-rising miner in question is New Murchison Gold Ltd (ASX: NMG).

New Murchison Gold shares closed yesterday trading for 4.6 cents. In early morning trade on Tuesday, shares are changing hands for 4.9 cents apiece, up 6.5%. 

This sees shares in the ASX All Ords gold stock up an impressive 188.2% since this time last year, well ahead of the 15.5% 12-month gains posted by the All Ords.

New Murchison is catching some tailwinds today from an uptick in the gold price overnight amid news that the US and Iran are mulling a second round of negotiations. Gold is currently trading for US$4,758 per ounce.

Here’s what else is piquing investor interest today.

ASX All Ords gold stock jumps on high-grade intercepts

Investors are bidding up New Murchison shares following the release of a new batch of promising exploratory drilling results.

The ASX All Ords gold stock has been conducting a reverse circulation (RC) drilling campaign at the Crown Prince East Pit prospect. That’s a satellite deposit at New Murchison’s flagship Crown Prince Gold Mine, located in Western Australia.

This morning, management reported on new high-grade gold intercepts, which they said have delineated additional mineralisation within the designed pit outline of the Crown Prince East Pit.

For the geologically inclined, management noted:

CP East is centred on a mineralised dilational zone in the local mafic unit (foliated basalt and dolerite). This zone hosts a set of sub parallel southerly dipping lodes which host gold mineralisation in quartz carbonate veins.

New Murchison’s latest exploration program consisted of 49 RC holes totalling 5,365 metres, as well as two diamond holes, which were drilled to ascertain structural data.

Among the top results, the ASX All Ords gold stock reported 18 metres at 10.3 grams of gold per tonne from 54 metres, including 6 metres at 29.3 grams of gold per tonne from 65 metres from one hole.

A second hole returned 12 metres at 10.3g/t Au from 34 metres, including 1 metre at 42.2g/t Au from 36 metres.

“These encouraging results open the opportunity of proving up additional reserves within the close proximity of the current Crown Prince Gold Operations,” management noted.

What’s been happening with New Murchison Gold?

New Murchison Gold released its December quarter update on 21 January.

In its first full-quarter of production, the ASX All Ords gold stock sold 184,746 dry tonnes of crushed ore, representing 22,766 ounces of gold, to the Westgold Resources Ltd (ASX: WGX) Bluebird gold processing facility.

As at 31 December, New Murchison held $92 million in cash.

The post Up 188% in a year, why is this ASX All Ords gold stock surging again on Tuesday? appeared first on The Motley Fool Australia.

More reading

• What is Bell Potter saying about A2 Milk shares after the selloff?
• Qantas shares dip after fresh market update puts FY26 in focus
• What were the best performing Betashares ASX ETFs in March?
• Why Westpac shares are holding near record highs after a $75 million hit
• This dirt cheap ASX 200 tech stock could rise 70%

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.

A2 Milk Company Ltd (ASX: A2M) shares were under significant pressure yesterday.

The infant formula company’s shares ended the session 13% lower at $8.04 following the release of a trading update.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about it.

What is the broker saying?

Bell Potter was disappointed with the downgrade and has concerns that the issues could remain in FY 2027. It said:

The downgrade to revenue expectations has been driven by lower availability of product, driven by increased testing (following competitor ARA contamination recalls) delaying product release times (SM1 cited an 8-10wk delay at its recent 1H26 result) and resolved supply chain issues at SM1’s Dunsandel facility.

The margin downgrade is less clear, with higher freight and testing costs the major drivers. Essentially, the upper end of revised revenue guidance is unchanged from pervious guidance, but EBITDA margins expectations are materially downgraded and we suspect these higher supply chain costs are likely to persist into 1Q27e

The broker also highlights that the lack of stock in China could impact customer acquisition and customer retention in the key market. It adds:

Product availability in China is an issue for Apr-May’26, with likely out-of-stocks, which has the scope limit new customer acquisition and retain existing customers.

Should you buy A2 Milk shares?

In response to the update, the broker has retained its hold rating with a reduced price target of $8.35 (from $9.55).

Based on its current share price of $7.99, this implies modest potential upside of 4.5% for investors over the next 12 months.

However, it also expects a dividend yield of approximately 3% over the period, which boosts the total potential return to around 7.5%.

Commenting on changes to its estimates and the retention of its hold recommendation, Bell Potter said:

NPAT changes are -13% in FY26e, -9% in FY27e and unchanged in FY28e. Our forecasts assume that elevated supply chain costs remain through 1Q27e (elevated freight and testing costs imbedded in COGS). Our target price falls to A$8.35/sh (prev. A$9.55/sh) reflecting earnings changes and movements in the AUDNZD cross rate.

Hold, TP A$8.35/sh. While some of the issues are likely to be temporary in nature (such as elevated air freight) they may well persist into 1Q27e as in-market inventory levels are restored. The deterioration in FY26e margin expectations, when supply chain issues were flagged by SM1 in Feb’26 and are now below Aug’25 guidance levels on a higher revenue base is somewhat concerning, given returning ingredient COG inflation.

The post What is Bell Potter saying about A2 Milk shares after the selloff? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares are sliding on Tuesday after management stepped back in front of the market with a fresh trading update.

The airline had already been trying to stabilise after a rough few months, with the stock still down about 14% in 2026 following today’s decline.

In morning trade, the Qantas share price is down a modest 0.33% to $8.98.

That puts the stock closer to the early April lows, though it still remains well below the February peak above $11.

The move comes after investors were given a clearer view of how the airline expects current global disruptions to flow through the second half.

Higher fuel costs are being offset elsewhere

The key issue in today’s release was the jump in jet fuel costs.

Qantas said fuel prices have more than doubled since its half-year result in February, with the combined fuel and refining margin impact expected to add roughly $200 million to second-half FY26 costs.

Even so, the market seems comfortable with the way management has framed the offset.

The airline noted that about 90% of second-half fuel exposure is already hedged, while fare increases, route changes, and capacity adjustments are already being used to recover part of the pressure.

Demand trends also appear to still be working in its favour.

International travel into Europe remains firm, which has allowed aircraft to be shifted toward stronger-yielding routes, including Paris and Rome.

That helps explain why the group was comfortable leaving its international revenue guidance unchanged despite the cost pressure.

Capital discipline may also be helping sentiment

Another part of the update that likely supported the share price was the balance sheet.

Management said FY26 capital expenditure is now expected to come in at or below $4.1 billion, which is the bottom end of previous guidance. Net debt is also still expected to remain within its target range by year end.

The previously announced 19.8 cents per share fully-franked interim dividend is still due to be paid this week. However, the planned $150 million on-market share buyback has not yet started.

Foolish Takeaway

Today’s small loss reflects growing comfort that the profit impact is being contained rather than concern over the latest update.

Fuel is still the main short-term issue, but hedging, ticket price increases, solid travel demand, and tighter spending should help support second-half earnings.

With the shares still below their February highs, the latest update may improve investor confidence if conditions stay stable.

The post Qantas shares dip after fresh market update puts FY26 in focus appeared first on The Motley Fool Australia.

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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.

A new report from the Betashares team has revealed ASX ETF trends during the turbulent month of March. 

Investors poured into oil focussed equities during the month of March. 

Meanwhile, bear focussed ASX ETFs also outperformed. 

“Bear-focused” ETFs are designed to profit when markets fall (or to hedge against downturns).

March overview

The Betashares Australian ETF review revealed that in a month dominated by the outbreak of conflict in Iran, the Australian ETF industry recorded very strong net inflows of $5.6 billion. 

Despite this, market movements pushed funds under management down by $13.8 billion to $329.4 billion.

According to Tom Wickenden, Investment Strategist, the short-term threat from the Iran war is the oil price spike’s impact on growth and inflation. 

But the longer-term implications may matter most for investors, long after any resolution. 

Russia’s invasion of Ukraine accelerated defence spending and European energy diversification. The Iran conflict is now doing the same for global energy self sufficiency, while fracturing the US security umbrella and embedding geopolitics as a structural driver of asset prices rather than an episodic risk to be faded.

Mr Wickenden explained that as a response, investor flows have picked up in select hedges: 

• Energy producers
• Uranium
• Defence
• Critical minerals
• Agricultural commodities.

March also saw a second-rate hike from the RBA in 2026.

For Australian equities this reinforces three key trends: the rotation toward income and value factors, pressure on rate sensitive sectors, and the same commodity shock that has complicated the RBA’s path is generating meaningful earnings improvements for Australian energy and material companies.

Best performing ASX ETFs in March

According to Betashares, March’s top performers were dominated by defensive and counter-cyclical exposures. 

This came as a sharp rally in crude oil lifted commodity focused funds while equity bear funds surged on the back of significant market volatility and risk-off sentiment. 

The best performing ASX ETFs in March were: 

• BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO) rose 55.9%
• BetaShares Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) rose 19.33%
• Betashares Ethereum ETF (ASX: QETH) rose 13.33%
• Betashares US Equities Strong Bear Currency Hedged Complex ETF (ASX: BBUS) rose 12.3%
• Global X Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS) rose 11.94%.

The Betashares Crude Oil Index ETF led the way in March. 

The fund aims to track the performance of an index (before fees and expenses) that provides exposure to crude oil futures, hedged for currency movements in the AUD/USD exchange rate.

It benefited as oil prices surged following the blockage of the Strait of Hormuz.

The post What were the best performing Betashares ASX ETFs in March? appeared first on The Motley Fool Australia.

More reading

• Why is this ASX ETF up nearly 50% in a month?
• Which ASX ETFs have Aussies traded most since the Iran war began?
• ASX ETFs holding up amidst global volatility 
• Will ASX oil stocks protect your portfolio from a market crash in 2026?
• 3 reasons this commodities ASX ETF could be an ideal buy in the current environment

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

Westpac Banking Corp (ASX: WBC) shares are edging higher on Tuesday after the banking giant released an update before market open.

In morning trade, the Westpac share price is up 0.31% to $42.72, leaving it up about 10% in 2026 and still sitting just below its late-February record high of $43.32.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is 1.1% higher to 9,021 points.

This leaves the stock trading close to peak levels as the broader ASX recovers from renewed pressure and geopolitical uncertainty over the last few days.

It also reinforces how strongly the market has been backing the major banks this year as investors continue favouring earnings resilience, capital strength, and dependable dividends.

Half-year result will include a profit hit

According to the release, Westpac outlined several items expected to affect its first-half FY26 result.

The headline number is a $75 million reduction to reported net profit after tax (NPAT) linked to transaction costs from the sale of its RAMS mortgage portfolio.

That transaction remains on track to complete in the second half of 2026 and includes a consortium comprising Pepper Money Ltd (ASX: PPM), KKR, and PIMCO.

Beyond that one-off cost, the underlying business update looked relatively steady.

Management said lending and deposit growth for the half came in at 4% and 3%, respectively. Core net interest margin, excluding the timing effect of rate rises, was stable across 2026.

The bank also reported a 2% decline in expenses from productivity initiatives, while capital metrics improved, including a stronger CET1 ratio.

Geopolitical risks are starting to flow through

The more interesting part of the update may be what it says about the operating backdrop.

Westpac said recent geopolitical uncertainty and higher market volatility supported the treasury and markets’ net interest margin. Foreign currency translation from a weaker New Zealand dollar also flowed into the result.

It also lifted credit provisioning assumptions, with the ratio of collective provisions to credit risk-weighted assets increasing to 1.29%.

Foolish Takeaway

With the shares already near record highs, Tuesday’s small gain does look like investors are not overly concerned about the $75 million RAMS-related hit.

The bigger takeaway is that core banking momentum still looks healthy, with loan growth, deposit growth, stable margins, and lower costs helping offset a tougher macro backdrop.

From my perspective, despite the profit hit, Westpac still looks like a solid long-term investment. The shares remain close to all-time highs, and the underlying business continues to perform steadily.

The post Why Westpac shares are holding near record highs after a $75 million hit appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended KKR. 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.

Pro Medicus Ltd (ASX: PME) shares could be dirt cheap right now.

That’s the view of analysts at Bell Potter, who are urging investors to buy the health imaging technology company’s shares while they are down.

What is the broker saying?

Bell Potter was pleased with news that Northwestern Medicine has renewed with the ASX 200 tech stock for a further five years on improved terms. It said:

Northwestern Medicine has signed a 5 year extension with PME for the Visage Viewer at increased rates and with an increased minimum deal value. Northwestern is one of the largest healthcare providers in the state of Illinois and a leading academic medical centre and remains a highly valuable client. Contract value is upgraded from $22m to $37m over five years.

PME continues to win new business in the United States, last week announcing the signing of a five year $23m deal with University of Maryland Medical System covering Visage 7 Viewer and Visage Workflow – but again no archive (Maryland already has an off premises archive). We understand the incumbent was Carestream (a company owned by Phillips).

Outside this, Bell Potter has trimmed its revenue forecast slightly to reflect a delay in revenues from the major Trinity Health contract and a weaker US dollar. It adds:

FY26 revenue forecast is reduced by a further 3.4% to $261m owing to amendments in the commencement date for exam revenues on major new contract implementations at Trinity Health and U. Colorado. The weaker US$ is also expected to have a material impact on revenues in the current period.

Longer term, the outlook remains strong with PME FY27 exam revenues expected to benefit from full period benefit of implementations in the current half including the two largest cohorts of the Trinity Health contract plus the Big Bang implementation at U. Colorado covering radiology and cardiology.

Time to buy this ASX 200 tech stock?

According to the note, the broker has retained its buy rating on the ASX 200 tech stock with a slightly reduced price target of $226.00 (from $240.00).

Based on its current share price of $132.38, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

PME continues to win new work and retains 100% of its existing client base. The stock is trading 60% below it all time high – not all attributable to the re-rating of its software revenues stream i.e. the law of large numbers is catching up, hence harder now for the company to maintain +30% EPS growth. Retain buy, PT amended to $226 following earnings amendments.

The post This dirt cheap ASX 200 tech stock could rise 70% appeared first on The Motley Fool Australia.

More reading

• Still down 40%, are Pro Medicus shares primed to break out?
• 5 things to watch on the ASX 200 on Tuesday
• Why these ASX 200 stocks could be perfect for buy and hold investors
• Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today
• Why are Pro Medicus shares outperforming the market on Monday?

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

The Qantas Airways Ltd (ASX: QAN) share price is in focus today after the company provided a market update flagging sharply higher jet fuel costs and a shift in capacity, while maintaining a strong balance sheet.

What did Qantas Airways report?

• Jet fuel costs for 2H26 are now estimated at $3.1–3.3 billion, more than double previous expectations.
• Group International RASK (unit revenue) growth for 2H26 is forecast at 4–6%, double prior guidance.
• Group Domestic RASK growth for 2H26 expected at approximately 5%.
• FY26 capital expenditure to be at or below $4.1 billion, the bottom end of guidance.
• Net debt now expected at or above the midpoint, but within Qantas’ target range by 30 June 2026.
• The $300 million interim dividend (19.8 cents per share) will be paid on 15 April 2026; $150 million buyback remains on hold.

What else do investors need to know?

Qantas has implemented a range of measures to mitigate rising fuel costs and the impact of Middle East conflict, including network changes, reduced domestic capacity in the current quarter, and fare increases. The company remains exposed to fluctuating jet refining margins, despite hedging most of its crude oil needs for the half-year.

Demand for international travel, especially to Europe, remains robust. Qantas is redeploying resources from the US and domestic operations to offer additional flights to Paris and Rome. Affected domestic customers are being offered alternative flights or refunds after a 5 percentage point reduction in 4Q26 capacity.

What’s next for Qantas Airways?

Qantas will keep monitoring external conditions and holds flexibility to adjust its response to volatile fuel prices. The company says it is working closely with government and fuel suppliers to ensure fuel availability, while continuing to manage capacity and pricing in response to evolving demand.

The group will provide a formal update on its FY27 outlook once there is more certainty on geopolitical and economic developments impacting its operations.

Qantas Airways share price snapshot

Over the past 12 months, Qantas shares have risen 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Qantas Airways flags higher fuel costs and capacity changes in FY26 update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) stock Temple & Webster Group Ltd (ASX: TPW) is one of the most exciting Australian businesses to buy, in my eyes.

It has suffered a huge decline in recent times, dropping by around 70% over the past six months, as the chart below shows.

I can see why some of the decline has occurred for the online furniture and homewares retailer – revenue growth has somewhat slowed, margins have decreased and it’s pursuing growth in New Zealand.

There are three key reasons why I’d invest in the business – let’s look at those.

Great tailwinds

One of the key reasons to like the business is because it is exposed to a strong, supportive tailwind.

Over time, the business is benefiting from ongoing online shopping adoption by households. All the business needs to do is maintain its market share of online shopping to see very pleasing growth for the foreseeable future.

Temple & Webster notes that online penetration for furniture and homewares in Australia and New Zealand trails global peers. In Australia, it’s around 20%, compared to 29% in the UK and 35% in the US.

The ASX 300 stock suggested that Australia and New Zealand lag the UK and US by between five to seven years.

So, online penetration could rise from 20% in Australia right now to 30% over the next several years, which bodes well for Temple & Webster.

Temple & Webster also has a small but growing home improvement segment, where online penetration is only in the region of 5% to 10%.

Strong revenue growth

It’s important to recognise that while the market has severely punished the ASX 300 stock, it continues to grow at a very good pace.

The most recent numbers were the trading update that was released with the FY26 half-year result.

Revenue for the period 1 January 2026 to 9 February 2026 was up 20% year-over-year, driven by both an acceleration of new customers and continued growth of repeat customers.

It also said its focus for the second half is to grow revenue and take market share as fast as it can, while delivering on its stated margin objectives with an operating profit (EBITDA) margin of between 3% to 5%.

The business is aiming for a medium-term goal of at least $1 billion in annual revenue, which will bring scale benefits on its own.

I think the company is on track to reach its $1 billion goal thanks to two growth initiatives.

Firstly, it recently launched in New Zealand, expanding the company’s total addressable market by 10%, and it has enabled the majority of its catalogue for New Zealand customers.

Secondly, home improvement revenue is soaring – in HY26 it grew by 47% to $30 million, with private label penetration increasing to 25% (up from 18% in the first half of FY25). While it’s only a small part of total revenue, that growth rate could help home improvement become an important slice of the pie in the coming years.

The ASX 300 stock could achieve compelling profit margins

In the short-term, the business is sacrificing some margin to continue to deliver growth.

But, in the longer-term, I think its profit margins will increase and the market is underestimating this.

Increasing in size alone will help some margins, particularly as fixed costs become a smaller percentage of revenue. In the long-term, fixed costs are expected by the business to be less than 6% of revenue (it was 10.6% in FY25).

Marketing costs are also expected to reduce to less than 11% of revenue in the long-term, down from 16.3% in FY25.

Ultimately, the business is aiming for an EBITDA margin of more than 15%, up from 3.1% in FY25.

According to the projection on CMC Invest, the business is projected to generate 22.8 cents of earnings per share (EPS) in FY28, which puts the Temple & Webster share price (at the time of writing) at 31x FY28’s estimated earnings.

The post This could be the best ASX 300 stock buy today! appeared first on The Motley Fool Australia.

More reading

• Where to invest $10,000 in ASX shares in April
• 3 beaten-down ASX shares that I think could rebound strongly
• How to invest during an ASX share bear market when you’re worried about prices falling more
• Here are the top 10 ASX 200 shares today
• Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade

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

ASX materials stocks have shown resilience this year amidst broader market softness. 

The S&P/ASX 200 Materials (ASX: XMJ) index has climbed over 10% in 2026. 

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up just over 2% year to date, and one such ASX materials stock that has climbed this year is Imdex Ltd (ASX: IMD). 

It is an Australian mining equipment and technology company operating globally.

Its technology includes drilling optimisation products, cloud-connected rock knowledge sensors and data and analytics. These aim to improve the process of identifying and extracting mineral resources.

The Imdex share price has moved largely in line with the broader sector this year, rising 10.7%.

Yesterday the team at Bell Potter issued updated guidance on this ASX materials stock, indicating the rise could continue. 

Here’s what the broker had to say. 

Exploration market outlook remains robust

Bell Potter noted that spending on exploration by major and intermediate mining companies is expected to rise by about 24% in 2026. 

This is a strong increase, similar to the growth seen in 2021–2022. Importantly, these larger companies usually make up around 80–85% of Imdex’s revenue. 

In 2021 and 2022, their exploration spending grew by 26% and 29%. Subsequently, this helped drive revenue growth of 31% and 21% in those years.

According to Bell Potter, based on this pattern, the current forecast of 21% revenue growth for 2026 looks conservative. 

Imdex is also better positioned now because it offers more products and services after expanding its technology over the past three years.

IMD’s greater share of wallet in this cycle, following the integration of several hardware and digital products acquired and internally developed over the past 3 years, positions the company well in an expanding market.

Buy rating unchanged for this ASX materials stock

Based on this guidance, the team at Bell Potter have reiterated a buy recommendation for Imdex shares. 

Furthermore, the broker has a $4.60 price target, which indicates a 20% upside from yesterday’s closing price of $3.83. 

Additionally, Bell Potter said is is encouraged by the significant expansion in CY26 gold and copper major and intermediate exploration budgets, suggesting robust uptake of IMD drilling products, tools and software in the short-term. 

Together, with greater junior exploration activity, as a record wave of recently raised equity is deployed, IMD is well positioned to deliver strong revenue growth and operating leverage over the next twelve months. Notwithstanding these tailwinds, we express caution regarding first and second order impacts from the Iran war.

The post This ASX materials stock could rise 20% according to this broker appeared first on The Motley Fool Australia.

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