Tag: Stock pick

Market crashes are uncomfortable, but they are also one of the few times when high-quality businesses can go on sale.

While no one can predict when a sell-off will occur, it is worth knowing in advance which S&P/ASX 200 Index (ASX: XJO) shares you would be happy to buy if sentiment suddenly turned negative.

If markets crashed tomorrow, I would not be looking for turnaround stories or speculative rebounds. I would focus on quality companies with strong market positions and long-term relevance. These are three ASX shares I would be ready to buy in that scenario.

Commonwealth Bank of Australia (ASX: CBA)

CBA would be high on my list in a market crash.

The bank has consistently delivered stronger returns on equity than its peers, supported by disciplined cost control, a high-quality loan book, and leading digital capabilities. That operational strength matters most when conditions become more challenging.

CBA shares often hold up better than other banks during periods of stress, which means any broad market sell-off that drags them lower can create an opportunity. While the bank typically trades at a premium, a market crash is one of the few situations where that premium can narrow meaningfully.

If markets fell sharply, I would be comfortable increasing exposure to CBA as a long-term core holding.

Cochlear Ltd (ASX: COH)

Cochlear is the kind of business I would like to buy at a discount.

The company operates in hearing implants, a market driven by medical need and ageing demographics rather than economic cycles. Demand does not disappear during tough times, and Cochlear’s technology, brand, and clinical relationships create high barriers to entry.

Share price volatility does not change the underlying need for hearing solutions. If a market crash pushed Cochlear shares lower alongside unrelated sectors, I would see that as an opportunity to buy a high-quality healthcare business at a more attractive valuation.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX 200 share I would definitely look to add during a sell-off.

The company provides enterprise medical imaging software that is deeply embedded in hospital workflows. Once installed, the platform becomes mission-critical, with long contracts and high switching costs.

Growth stocks like Pro Medicus can be hit hard during market crashes, even when the underlying business continues to perform well. That disconnect between share price and fundamentals can create compelling entry points.

If markets crashed tomorrow, I would be comfortable buying Pro Medicus shares with the intention of holding them for many years, rather than worrying about short-term volatility.

Foolish Takeaway

Market crashes are never pleasant, but they can reward preparation.

Commonwealth Bank, Cochlear, and Pro Medicus operate in very different areas, yet they share important traits. They have strong competitive positions, resilient demand, and management teams that have proven they can execute over time.

If markets fell sharply tomorrow, these are ASX 200 shares I would be confident loading up on and holding as conditions eventually normalise.

The post 3 ASX 200 shares I’d load up on if markets crashed tomorrow appeared first on The Motley Fool Australia.

More reading

• The 3 best undervalued ASX shares I’d pick up in January
• 3 reasons some brokers think it’s time to sell CBA shares
• Why a smaller dividend yield can lead to more passive income
• Here is the average Australian superannuation balance at 60 in 2026
• Forget CBA and buy these ASX dividend shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Cochlear and Pro Medicus. 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 are edging higher on Tuesday.

On Tuesday morning, the mining giant’s shares are up slightly to $49.06.

This follows the release of its first half production update.

How did BHP perform during the first half?

For the six months ended 31 December, BHP reported copper production of 984.1kt. This was flat on a prior corresponding period. Escondida delivered steady production, Copper South Australia recorded a 2% increase in production, and Antamina posted an 8% increase in production. This offset production declines at Pampa Norte (Spence) and Carajas.

BHP’s iron ore production increased 2% during the first half to 133.8Mt. This reflects modest production growth at WAIO and a large jump from the Samarco operation.

Elsewhere, steelmaking coal production lifted 2% and energy coal production increased 10%.

Guidance updates

In light of its solid first half performance, management has upgraded parts of its FY 2026 guidance.

Its production guidance has increased for group copper, Escondida, and Antamina. Whereas NSWEC and Samarco are also now guiding to the upper half of their ranges, while BMA is now guiding to the lower half due to ongoing geotechnical challenges at Broadmeadow.

FY 2026 unit cost guidance remains unchanged for all assets, with Escondida now guiding to the bottom end and BMA guiding to the upper half of their respective ranges.

Management notes that the increase in its copper production guidance enables BHP to further capitalise on record copper prices. The strong copper price is being driven by healthy demand and supply disruptions at a number of competitors.

Commenting on the half, BHP’s CEO, Mike Henry, said:

BHP delivered another half of very strong performance with operational records at our copper and iron ore assets. This was achieved safely and in a positive commodity price environment, with copper prices up 32% and iron ore prices 4% higher year on year. We have increased FY26 group copper production guidance off the back of stronger delivery across our assets. Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the FY26 production guidance range. Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output.

In iron ore, WAIO achieved record first half production and shipments, positioning us well ahead of the typically wet third quarter. Volumes from Samarco rose as a result of strong operational performance at the second concentrator following its restart at the end of H1 FY25.

Henry also provided an update on its potash plans, revealing that the Jansen potash project in Canada should be up and running next year. He adds:

The Jansen potash project in Canada is on track to begin production in mid-2027. Jansen will be a long life, low cost and scalable asset that will add a new, future facing commodity to BHP’s portfolio, which we expect will generate value for shareholders over many decades. We have separately provided an updated cost estimate for Jansen Stage 1 today.

Outlook

BHP’s leader spoke positively about the miner’s outlook. Henry is expecting robust demand from China and growing demand from India. He concludes:

China’s commodity demand remains resilient, supported by targeted policy measures and solid exports. Momentum moderated in H2 CY25, notably in construction, manufacturing and infrastructure investments. India is emerging as a key engine of demand, with strong domestic activity sustaining steel and rising copper needs. Forecast global growth in 2026 is around 3%, creating a positive backdrop for commodity demand. BHP enters the second half of FY26 with strong operating momentum. We’re investing for the decade ahead, with a significant copper growth pipeline and a pathway to ~2 Mt of attributable copper production in the 2030s.

The post BHP shares rise on solid half and copper upgrade appeared first on The Motley Fool Australia.

More reading

• BHP lifts copper guidance after record half-year output
• 5 things to watch on the ASX 200 on Tuesday
• BHP shares at 52-week high: Here’s why I’m not buying
• ASX 200 materials sector outperforms as mining shares continue their ascent
• BHP vs. Fortescue shares: Goldman Sachs says 1 will rip and 1 will dip

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 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 Summerset Group Holdings Ltd (ASX: SUM) share price is in focus today after the company reported a record 1,560 occupation right sales for FY25, up 26% on FY24, with new sales rising 16% and strong momentum continuing into Q4.

What did Summerset Group report?

• FY25 total occupation right sales: 1,560 (up 26% from FY24)
• FY25 new sales (excluding care bed conversions): 680 (up 16% on FY24)
• Q4 FY25 total sales: 448 (207 new sales, 241 resales)
• 125 care bed conversions included in FY25 results
• 637 new units delivered in New Zealand and 56 in Australia during FY25
• Resale stock uncontracted reduced to 2.7% (down from 3.0% at FY24)

What else do investors need to know?

Summerset’s full year sales included a mix of new homes and resales across its New Zealand and Australian villages. The company highlighted especially strong performances from large metro villages in Boulcott and St Johns as new apartment blocks reached completion.

Presales at Chirnside Park in Australia are off to a solid start, with 50% of the 28 new homes already presold since late 2025. Summerset continues its measured growth strategy in the Australian market, delivering homes in line with targets.

The company reduced its uncontracted resale stock and ended the year with a 31% increase in contracted new sale stock over the past year, showing strong future sales momentum.

What did Summerset Group management say?

Chief Executive Officer Scott Scoullar said:

This is a positive result reflecting our hard work throughout the business to bring new residents into our villages and to improve profitability of care at Summerset – it’s pleasing to achieve both a record quarter and full year in this challenging market.

What’s next for Summerset Group?

Summerset expects to enter FY26 with a strong pipeline of committed sales contracts. The company is aiming to keep delivering new and resale stock in line with recent performance, and sees opportunities as it continues its selective Australian expansion.

Investors can look out for further details when the company releases its full FY25 annual report on 27 February 2026.

Summerset Group share price snapshot

Over the past 12 months, Summerset Group shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Summerset Group Holdings FY25 results: record sales and growth momentum 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.

Bank of Queensland Ltd (ASX: BOQ) stock has taken a bit of a dive over the last six months, falling by more than 15%, as the chart below shows. Investors may like to know that the ASX bank share is predicted to pay a large dividend in the coming year.

Dividends shouldn’t be seen as the sole source of returns, but they can form an important part of total shareholder returns, particularly for banks.

As one of the smaller challenger banks, BOQ usually trades on a lower price/earnings (P/E) ratio than its major peers, making its dividend yield look particularly appealing for yield hunters.

Let’s take a look at how large the dividend payout could be for investors in FY26 and the outlook for better payments in future years.

Potential payout in FY26

Analyst projections are not guarantees of what dividends a business will pay, but I think the estimates are a useful guide of what the payout could be. Some companies decide on their payout size based on a particular dividend payout ratio.

The analysts from UBS think the bank could deliver a payout that equates to a dividend yield of 6.3%, or around 9%, including franking credits, in FY26. That’d be a very pleasing level of passive income from the bank.

The payout could be similar in FY27, with another grossed-up dividend yield of around 9%.

UBS forecasts that BOQ’s grossed-up dividend yield could be around 10% in FY28 and 10.4% in FY29.

If those payouts do occur, then owners of BOQ shares could be in line for a lot of passive income in the next few years.

Is Bank of Queensland stock a buy?

The broker notes that management is focused on tilting the business towards commercial lending, with strong growth over the past 12 months, growing at 1.5x the speed of the overall loan system.

UBS said that BOQ’s underlying cost growth is projected to be below inflation. On top of that, BOQ’s franchise network conversion into a corporate-owned proprietary channel which aims to streamline distribution and drive new business through its own channels.

Currently, 60% of BOQ’s business flow is through broker channels, predominantly from ME Bank.

However, deposit competition is increasing as system loan growth is stronger than expecting, which may be disadvantaging smaller banks.

Digital growth remains a priority for the bank, with 44% of retail customers now using the digital banking platform.

BOQ is proactively resizing its cost base and exiting loan costs, that are below the cost of equity which are on the balance sheet, to reset its economics.

The broker said that the ASX bank share re-entering the mortgage market in FY26 and FY27 will be a “litmus test, especially around growth and pricing in proprietary distribution.”

UBS currently has a sell rating on Bank of Queensland stock, though the price target of $6.75 implies a slight rise during 2026, at the time of writing. The bank is trading at 11x FY26’s estimated earnings.

The post Is Bank of Queensland stock a buy for its 9% dividend yield? appeared first on The Motley Fool Australia.

More reading

• AMP shares sliding today on big leadership news
• 3 ASX 200 shares I’d load up on if markets crashed tomorrow
• BHP shares rise on solid half and copper upgrade
• Summerset Group Holdings FY25 results: record sales and growth momentum
• Hub24 shares jump 8% on record-breaking performance

Motley Fool contributor Tristan Harrison 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.

Hub24 Ltd (ASX: HUB) shares are rising on Tuesday after the wealth management platform delivered another record-breaking quarterly update.

At the time of writing, the ASX 200 tech stock is up 8% to $106.71.

What did Hub24 report?

Before the market open, Hub24 revealed that its platform achieved record net inflows of $5.6 billion in the second quarter of FY 2026. This helped lift total funds under administration (FUA) to a new high of $152.3 billion at 31 December 2025.

The standout metric from the update was quarterly platform net inflows of $5.6 billion, which were up 2% on the prior corresponding period or up 42% when excluding large migrations. This contributed to record half-year platform net inflows of $10.7 billion, representing a 13% year-on-year increase.

As a result, platform FUA climbed 29% year on year to $127.9 billion, while Portfolio, Administration and Reporting Services (PARS) FUA increased 11% to $24.4 billion. Combined, total FUA rose 26% year on year, reinforcing HUB24’s position as one of the fastest-growing platforms in the Australian wealth market.

According to the latest Plan for Life data, Hub24 ranked first for both quarterly and annual net inflows. This marks its eighth consecutive quarter in the top spot. Its market share now stands at 9.3% as at September 2025, up from 7.9% a year earlier.

Adviser growth

Hub24’s growth is being supported by increasing adviser adoption. During the quarter, it signed 34 new distribution agreements, while the number of advisers using the platform rose to 5,277. This is up 8% year on year.

Management highlighted that demand from both new and existing licensees continues to provide a strong pipeline of opportunities, with momentum carrying through into the second half of FY 2026.

Commenting on the half, the company said:

Strong momentum in 1HFY26 reflects continued opportunities for growth driven by ongoing demand for professional advice in addition to industry transformation. HUB24 remains committed to investing to deliver our strategy to capitalise on these opportunities and further enhance our market leading proposition.

Product innovation

Beyond flows, investors appear encouraged by Hub24’s ongoing investment in product innovation.

During the quarter, the ASX 200 tech stock announced the development of an Innovative Lifetime Retirement Solution (IRIS) in partnership with TAL, which is scheduled to launch in the second half of FY 2026. The solution is designed to provide income for life while retaining the flexibility of an account-based pension.

It also showcased a prototype of myhub, which is an AI-enabled ecosystem aimed at improving productivity for advice practices. A pilot program is planned for the first half of FY 2027.

The post Hub24 shares jump 8% on record-breaking performance appeared first on The Motley Fool Australia.

More reading

• HUB24 posts record inflows in Q2 FY26 earnings
• 5 ASX 200 shares I think could beat the market in 2026
• 3 unstoppable ASX growth stocks to buy even if there’s a stock market sell-off in 2026
• 3 ASX All Ords shares tipped to rise 30% to 80% in 2026
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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 positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Telix Pharmaceuticals Ltd (ASX: TLX) are trading higher after the company announced good news out of China for its prostate cancer imaging compound, Illuccix.

The company said in a statement to the ASX on Tuesday that China’s National Medical Products Administration (NMPA) Center for Drug Evaluation (CDE) has accepted a new drug application (NDA) for Illuccix, which is Telix’s lead prostate cancer imaging agent.

The company said further:

The NDA was submitted with Telix’s strategic partner for the Greater China region, Grand Pharmaceutical Group Limited. Seeking a broad label that reflects clinical utility at multiple stages of prostate cancer care, the submission includes data from the Illuccix China Pivotal Phase 3 Registration study1, which reported positive top-line results in December 2025.

Telix said the China study met its primary endpoint, “with an overall patient-level positive predictive value of 94.8% for the detection of tumours in patients with biochemical recurrence of prostate cancer”.

This confirmed, the company said, that the compound worked in a comparable way in Chinese patients and non-Chinese patients.

Telix said the high predictive value was demonstrated even in patients with very low prostate-specific antigen readings “and across differing metastatic locations”.

More than two-thirds (67.2%) of patients experienced a change in their treatment plan as a consequence of (Illuccix) imaging compared with the initial plan at baseline, demonstrating a major impact on clinical decision-making in Chinese patients.

Major step forward

Telix Chief Executive Officer, Precision Medicine, Kevin Richardson, said it was a significant outcome for the company.

Submitting this New Drug Application for (Illuccix), the first for any of our products in China, is a major milestone for Telix and our partner Grand Pharma. Geographic expansion is core to the growth strategy for our precision medicine business, and China represents a strategically important market for Telix. We look forward to progressing regulatory approvals together with Grand Pharma and subject to NMPA approval, bringing our lead commercial imaging product to market in China to serve the needs of men living with prostate cancer.

Telix said more than 134,000 men were diagnosed with prostate cancer in China in 2022, with that number increasing by about 6% each year.

The company said that in line with Chinese government policy supporting wider geographic access to nuclear medicine, the number of cameras used in the Illuccix imaging process was expected to have surpassed 1600 by the end of 2025, up from 133 in 2010.

Illuccix has already been approved by the US Food and Drug Administration, Australia’s Therapeutic Goods Administration, the United Kingdom Medicines and Healthcare Products Regulatory Agency, and in 19 countries within the European Economic Area.

Telix shares were 3.7% higher at $11.70 in early trade.

Telix was valued at $3.82 billion at the close of trade on Monday.

The post Good news out of China has this drug company’s shares higher appeared first on The Motley Fool Australia.

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

Northern Star Resources Ltd (ASX: NST) shares are on the move on Tuesday.

In morning trade, the gold miner’s shares are up over 1% to a new record high of $28.05.

Why are Northern Star shares rising?

At the start of this month, Northern Star released an operational update which revealed that production would be well short of expectations due to a number of isolated negative events coinciding late in December.

This saw the gold miner downgrade its FY 2026 annual production guidance to between 1,600k ounces and 1,700k ounces from between 1,700k ounces and 1,850k ounces.

Negative events that impacted production include a primary crusher failure, recovery works taking longer than planned, and lower mined grades.

At the time, management warned that “lower gold sales across each of the three production centres are expected to impact cost performance.” However, it wasn’t in a position to update its cost guidance at that point. Until now.

Cost guidance update

This morning, Northern Star shares are rising after the company finally unveiled its updated cost guidance for FY 2026.

And judging by the share price reaction, it seems that the update was not as bad as the market was expecting.

Though, a strong rise in the gold price overnight amid increased demand for safe haven assets could be supporting its shares.

During the first quarter of FY 2026, Northern Star achieved an all-in sustaining cost (AISC) of A$2,522 per ounce. But due to the aforementioned issues in the second quarter, its AISC increased to A$2,937 per ounce. This brought its first half AISC to A$2,720 per ounce.

In light of this, according to the release, Northern Star’s FY 2026 full-year AISC guidance has been revised to A$2,600 to A$2,800 per ounce. This is up from A$2,300 to A$2,700 per ounce.

Management notes that this has been driven predominantly by lower gold sales and higher royalties from elevated gold prices. With respect to the latter, there will be an additional ~A$40 per ounce in royalties compared to previous expectations.

The company’s FY 2026 sustaining capital guidance of ~A$750 million remains unchanged. This corresponds to ~A$450 per ounce.

Despite its troubles in FY 2026, this hasn’t stopped Northern Star shares from rising almsot 65% over the past 12 months.

The post Northern Star shares hit record high on cost guidance update appeared first on The Motley Fool Australia.

More reading

• Northern Star Resources revises FY26 cost guidance after lower gold sales
• Gold, silver hit new highs as US punishes Europe with tariffs over Greenland stance
• 5 things to watch on the ASX 200 on Monday
• ASX 200 materials sector outperforms as mining shares continue their ascent
• Why I think ASX 200 gold shares like Newmont and Northern Star will keep surging higher in 2026

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.

The Fletcher Building Ltd (ASX: FBU) share price is in focus today after the company announced the sale of its Construction Division to VINCI Construction for $315.6 million, with a possible increase to $334.1 million pending contract outcomes.

What did Fletcher Building report?

• Sale of Construction Division for $315.6 million, with additional contingent consideration of up to $18.5 million
• Transaction includes Higgins, Brian Perry Civil, and Fletcher Construction Major Projects
• Approximately 2,300 employees to transfer to VINCI Construction
• Fletcher Building to retain legacy project responsibilities and set aside provisions of $55 million to $65 million for future claims
• Completion subject to regulatory approvals, with expected finish before end of calendar 2026

What else do investors need to know?

The transaction marks a strategic shift for Fletcher Building, narrowing its focus to its core building products manufacturing and distribution businesses. The move is designed to simplify its portfolio, lower debt, and aim for better returns to shareholders.

Fletcher Building will continue to handle responsibilities tied to legacy construction projects, notably the New Zealand International Convention Centre, and operations in the South Pacific, which are part of a separate review. Provisions for future claims highlight ongoing obligations related to past contracts.

What did Fletcher Building management say?

Managing Director and CEO Andrew Reding said:

Over the past year we have been clear that Fletcher Building’s future lies in being a focused building products manufacturer and distributor, supported by a strong balance sheet and disciplined capital allocation. The sale of Fletcher Construction is a significant step forward in delivering that strategy, while continuing the work underway to simplify the portfolio, lower debt and improve shareholder returns.

What’s next for Fletcher Building?

Fletcher Building expects the sale to be completed before the end of calendar 2026, after receiving regulatory and other key approvals. The company will look to redeploy proceeds into its core operations and further strengthen its financial position.

The board’s ongoing review of South Pacific operations and continued management of historic legal and project responsibilities will also be in focus. Investors can watch for updates as Fletcher Building executes its simplified strategy in the coming year.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have risen 24%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Fletcher Building sells Construction Division to VINCI for $315.6 million appeared first on The Motley Fool Australia.

More reading

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• Origin Energy to keep Eraring Power Station running until 2029
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• HUB24 posts record inflows in Q2 FY26 earnings
• AMP appoints Blair Vernon as CEO, Alexis George to retire

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.

This S&P/ASX 200 Index (ASX: XJO) stock has seen sharp volatility over the past year, with the share price swinging between $1.52 and $3.35.

Despite this, Mesoblast Ltd (ASX: MSB) shares are up 15% over the past 6 months, but down 9.9% over the past month. At the time of writing, the ASX 200 healthcare share is trading hands for 2.54% apiece, starting the week with a 3.8% loss.

That has pushed the stock to a two-month low, despite signs of progress with the US Food and Drug Administration (FDA).

So, has Mesoblast already peaked, or is there more upside ahead?

One step closer to breakthrough

After years in the doldrums, the ASX 200 healthcare stock surged back into favour in 2025. Investors powered the rally on renewed confidence in Mesoblast’s lead therapy, remestemcel-L, which targets inflammatory and immune-mediated diseases.

Mesoblast has spent more than a decade building a regenerative medicine platform aimed at severe conditions with few effective treatments. Now, the big bet on Mesoblast is if the ASX 200 stock is closing in on its first major commercial breakthrough.

Reduced opioid use

Mesoblast said on Monday that the US Food and Drug Administration has acknowledged positive results for its lead therapy. According to the release, the FDA indicated that the treatment reduced pain in patients suffering from chronic lower back pain caused by degenerative disc disease.

Regulators also noted that significant reductions in opioid use seen in at least one major trial could potentially feature on the product label. Mesoblast said many patients cut back or stopped opioid use for extended periods after treatment.

History of FDA setbacks

Despite the positive update, the ASX 200 stock fell. The shares have retreated to a two-month low, suggesting technical pressure and profit-taking after a strong rally late last year. Sentiment may also have been dented by the recent sale of about 640,000 shares by Executive Director Dr Eric Rose.

Despite Mesoblast’s positive FDA update, risks remain elevated. Mesoblast has consumed significant capital over its lengthy development path, repeatedly returning to markets to fund prolonged trials and regulatory work.

Its history of FDA setbacks has also tested investor patience. Even with approval, the company must still commercialise its therapy, scale sales, and compete in an increasingly crowded cell-therapy market.

Broker sentiment still bullish

Brokers, however, remain upbeat. The average 12-month price target for the ASX 200 stock stands at $4.14, suggesting 63% upside from current levels.

TradingView data shows that all covering analysts rate the stock a strong buy. Their targets range from $5.24, a potential gain of 106%, to $3.09, a possible gain of 21%.

The post This rising ASX 200 stock isn’t done yet – or is it? appeared first on The Motley Fool Australia.

More reading

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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.

There are not many ASX shares I’d trust as much as the two I’m about to talk about owning for decades.

There are many benefits to owning investments for a long time, including the power of compounding and avoiding paying taxes on capital gains.

I’ve already owned the businesses below for around a decade, and I expect they’ll be in my portfolio for many decades to come.

Rural Funds Group (ASX: RFF)

Food is one of the most important aspects of human life, so farms are an essential part of society. I think that will be the case for a very long time to come.

Rural Funds owns a portfolio of farms through its real estate investment trust (REIT) structure.

Its diversification strategy is proving effective for providing various sources of rental earnings. It’s invested in almonds, macadamias, cattle, vineyards and cropping.

It’s not likely to shoot the lights out, but it does have rental growth built into its tenancy agreements, with either fixed annual increases or inflation-linked increases.

The steady drum of rental growth can help increase the value of the farms and help fund higher distributions over time.

It’s currently trading at a large discount to its adjusted net asset value (NAV), which was above $3 in in FY25.

The ASX share is expecting to pay a distribution that equates to a yield of 5.6% in FY26. It seems to me like it will be a strong income pick for many years to come based on its history of passive income so far.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The investment house is another ASX share name I’m planning to be in my portfolio for many years to come.

The business has already displayed excellent longevity – it has been listed for more than 120 years. It’s one of the ASX’s oldest companies.

It has managed to deliver impressive long-term returns thanks to its diversified portfolio. The business has built its asset base to be defensive and deliver good cash flow.

If a business is steadily growing its cash flow then it can increase its underlying value and fund larger dividends. That’s exactly what’s happening with Soul Patts over time.

Each year it adjusts and builds its portfolio, giving it more long-term earnings potential and adding diversification without reducing the potential.

It currently has a lot invested in resources, telecommunications, industrial properties, building products, swimming schools, electrification and agriculture. In 20 years, the ASX share’s portfolio may be quite different, but I imagine the appeal of the business will be just as high.

I’m particularly happy to own this business because of its steadily rising dividend payouts. It has increased its annual payout every year for the last 28 years. It currently has a grossed-up dividend yield of 3.8%, including franking credits, at the time of writing.

The post 2 ASX shares I’m planning to own until I’m 100 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.