Tag: Stock pick

S&P/ASX 200 Index (ASX: XJO) shares are down 1.4% to 8,502 points on Tuesday.

On The Bull this week, Damien Nguyen from Morgans lets us in on what he thinks of these 3 ASX 200 shares.

Coles Group Ltd (ASX: COL)

The Coles share price is $22.50, up 1.3% today and up 4.5% over the past month.

Nguyen has a buy rating on this ASX 200 consumer staples share. 

He explains: 

Demand for consumer staples remains stable through economic cycles, and Coles benefits from pricing discipline across a duopolistic market structure.

Recent share price weakness, driven partly by broader cost-of-living and regulatory scrutiny concerns, has created a more attractive entry point for long term investors.

The company also offers a solid dividend yield and improving operational leverage.

BHP Group Ltd (ASX: BHP)

The BHP share price is $59.48, down 3% today and up 30% in the calendar year to date (YTD). 

BHP shares rose to a new record of $65.04 last Wednesday before diving alongside other ASX 200 iron ore miners after a major production increase at Simandou.

The giant Simandou project in Africa contains the world’s largest undeveloped iron ore deposit.

The mine began producing in November. Its output is expected to significantly impact supply/demand, and thus, the iron ore price.

The iron ore price has fallen 9.3% over the past month to US$101.50 per tonne on Tuesday.

Nguyen has a hold rating on the ASX 200’s largest mining share. 

He comments:

The global miner offers broad diversification across iron ore, copper and potash, underpinned by a fortress balance sheet and a disciplined approach to capital returns.

Copper provides meaningful long term exposure to the global electrification and energy transition theme, while iron ore remains the dominant near term earnings driver.

However, the macro backdrop remains uncertain, with Chinese steel demand facing structural headwinds and global growth indicators sending mixed signals.

The valuation at current levels appears broadly fair, with commodity price assumptions already reflecting a reasonable medium term outlook.

BHP remains a core holding for resource oriented portfolios, but with limited near term re-rating catalysts, we retain a hold recommendation.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares are $159.68, down 0.7% today and down 8% over the past month.

Nguyen has a sell rating on the ASX 200’s biggest bank share. 

The analyst said: 

CBA is Australia’s highest quality retail bank, with a leading market position, strong digital platform and reliable earnings generation.

However, quality alone doesn’t justify the recent valuation, which stands at a significant premium to domestic and global banking peers.

Credit quality remains sound, but should be monitored in a higher-for-longer interest rate environment.

The market has long rewarded CBA with a premium multiple. But at recent levels, the shares appear to price in a near perfect outcome with little room for disappointment.

The post Buy, hold, sell: Coles, BHP, CBA shares appeared first on The Motley Fool Australia.

More reading

• Why Coles and Woodside shares are being tipped as buys
• 3 top ASX mining shares for investors right now
• How to start investing in ASX shares with just $500
• Buy, hold, sell: Megaport, Bendigo Bank, BHP shares
• BHP, CBA, and Westpac shares are sells this week: experts

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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.

I’m sure many investors dream of turning $20,000 into $200,000.

The good news is that this has been possible historically with the share market.

However, it is worth noting that it doesn’t happen overnight. Investors need patience, consistency, quality assets, and time to get there.

That means avoiding the temptation to chase speculative ASX shares and instead building a sensible plan around time, diversification, and regular investing.

Where to begin

A $20,000 starting investment gives an investor a solid foundation to build from.

It could be spread across a handful of high-quality ASX shares, a few diversified exchange traded funds (ETFs), or a combination of both. The key is avoiding too much reliance on one company or sector at the beginning.

An investor might look for exposure to businesses with strong brands, recurring revenue, defensive earnings, or long growth runways. They could also use ASX ETFs to gain instant diversification across Australia, the United States, or global markets. For example, the Vanguard MSCI Index International Shares ETF (ASX: VGS) offers exposure to a broad portfolio of international shares.

The goal at the beginning is simple: get the money working in quality assets.

Add more ASX shares regularly

The next step is to keep adding capital to your ASX share portfolio.

If an investor starts with $20,000 and contributes $500 a month, the portfolio will grow much faster than it would from just investment returns.

Assuming the portfolio earns an average annual return of 10%, which is broadly in line with long-term share market averages, making it a fair target (but not guaranteed), it would take around 12 years to build a $20,000 portfolio to $200,000.

It is worth remembering that the market rarely moves upwards consistently. Some years the market will be strong, others it may go sideways, and there will also be darker periods when it goes backwards.

Without the monthly contributions, the same $20,000 would take much longer to reach the target. In fact, it would take almost 25 years to get there based on the same target return.

Stay invested through volatility

As mentioned above, the market will not move up in a straight line.

Share prices will move around, bad headlines will appear, and some holdings will disappoint. But selling in panic can interrupt the compounding process.

During these periods, an investor would be better to review the quality of their investments, not just the share price. If the long-term investment case remains intact, it could be wise to hold and perhaps even wiser to buy more at cheaper prices.

Overall, turning $20,000 into $200,000 is about building good habits, staying diversified, and giving the market enough time to work. By doing this, investors give themselves a great chance to build significant wealth in the share market.

The post How to turn $20,000 into $200,000 with ASX shares appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when you don’t know what to buy
• Looking to FIRE? Here are 2 ASX ETFs to get your portfolio started
• Where to invest $5,000 in Vanguard ETFs in June
• 3 ASX ETFs to diversify away from a flat Aussie market
• 3 reasons why this ASX ETF could be an incredible buy-and-hold forever idea

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.

James Hardie Industries Plc (ASX: JHX) has given investors another reason to pause after a rough 12 months for the stock.

The building products giant is back in the red on Tuesday, with its shares down 2.24% to $31.37 at the time of writing.

Today’s weakness comes after a better few weeks for the stock.

James Hardie shares have climbed around 10% over the past month, giving shareholders some relief after a difficult stretch.

But the rebound hasn’t gone close to repairing the damage from the past year.

The stock is still down around 22% over 12 months, and today’s announcement has put another issue back in front of investors.

Let’s take a closer look.

James Hardie responds to class action

In a statement to the ASX, James Hardie said it has been served with a group proceeding filed in the Supreme Court of Victoria.

James Hardie said the proceeding includes allegations that it breached the Corporations Act, the ASIC Act, and Australian Consumer Law.

The claim also includes allegations relating to continuous disclosure obligations and statements made about expected financial performance.

But the company has pushed back strongly.

James Hardie said it considers that it has complied with its disclosure obligations at all times.

It also said it denies any liability and will “vigorously defend” the proceedings.

Still, the company’s denial has not stopped investors from selling the stock today.

Why investors are watching this closely

The class action follows a difficult period for James Hardie shareholders last year.

The company’s shares dropped 34% across 2 days after its first-quarter results and downgrade to full-year guidance.

The stock fell from $44.34 to $28.98 after the update.

At the time, James Hardie reported a 29% fall in adjusted net profit to US$126.9 million for the June quarter.

That result was around 20% below expectations, with weak North American fibre cement sales putting pressure on the numbers.

The class action will look at whether investors were properly informed about adverse conditions affecting that North American fibre cement business before the downgrade.

Those issues included customer destocking, inventory management problems, and softer demand.

It will also consider whether James Hardie should have corrected or withdrawn its FY26 earnings guidance earlier.

Foolish Takeaway

James Hardie has made it clear it will fight the class action.

But investors are dealing with another uncertainty after a difficult year for the stock.

The stock had bounced over the past month, but today’s fall shows the market is still sensitive to bad news.

The next test is whether James Hardie can improve its operating performance while this legal process plays out in the background.

The post James Hardie shares sink as investors face another setback appeared first on The Motley Fool Australia.

More reading

• Why these ASX 200 shares could shoot 20% and 50% higher
• James Hardie shares rebound 19%: Is it time to buy?
• Here are the top 10 ASX 200 shares today
• Australia is 180,000 homes short of its 2029 target. Here’s 3 ASX shares that could benefit
• 4 ASX 200 stocks rocketing higher this week

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.

At the end of last week, S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices.

This will see five ASX shares kicked out of the S&P/ASX 200 Index (ASX: XJO) prior to the open of trading on 22 June. You can read about those shares here.

Replacing them in the benchmark index are the five ASX shares named below. Here’s what you need to know:

Electro Optic Systems Holdings Ltd (ASX: EOS)

Defence and space company Electro Optic Systems will be joining the ASX 200 index later this month. EOS shares have been on fire over the past 12 months as demand for its defence solutions surges. During this time, the company’s share price has risen approximately 350%, boosting its market capitalisation to approximately $2.3 billion.

Elevra Lithium Ltd (ASX: ELV)

Another ASX share that has more than quadrupled in value since this time last year is Elevra Lithium. It is the lithium miner that was created when Piedmont Lithium and Sayona Mining merged last year. Its key asset is the North American Lithium (NAL) project. It also has a portfolio of mineral exploration assets in Australia, Canada, Ghana, and the United States.

Firefly Metals Ltd (ASX: FFM)

Firefly Metals is joining the ASX 200 index after its shares doubled in value over the past 12 months, lifting its market capitalisation to $1.5 billion. Firefly Metals owns the Green Bay Copper-Gold Project in Newfoundland and Labrador, Canada. It recently revealed a mineral resource estimate (MRE) of 50.4Mt @ 2.0% copper equivalent in the measured & indicated (M&I) categories. This leaves it well-placed to potentially benefit from increasing demand for copper.

Kingsgate Consolidated Ltd (ASX: KCN)

Another addition to the index is Kingsgate Consolidated. This gold miner joins after a 120% annual gain took its market capitalisation to $1.3 billion. Kingsgate Consolidated owns the Chatree Gold Mine in Thailand. During the last quarter, Chatree produced 21,036 ounces of gold. This was the fifth consecutive quarter of over 20,000 ounces of gold.

Minerals 260 Ltd (ASX: MI6)

A final ASX share that is being added to the ASX 200 index at the quarterly rebalance is Minerals 260. It is another gold stock that has rocketed over the past 12 months. During this time, excitement around the Bullabulling Gold Project has led to its shares rising over 400%, which has taken its market capitalisation to almost $1.7 billion.

The post EOS and these ASX shares are joining the ASX 200 index this month appeared first on The Motley Fool Australia.

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• Iran war impact on ASX defence shares and ETFs
• If you own this ASX 200 stock, here’s how to make a quick 38% return next week
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• These ASX stocks have hit the ground running in June – can they keep rising?
• 3 top ASX shares at 52-week highs I’d still buy

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 Electro Optic Systems. 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 All Ordinaries Index (ASX: XAO) has lost 1% over the past 12 months, but that hasn’t held back this rocketing ASX All Ords gold stock.

The high-flying miner in question is Medallion Metals Ltd (ASX: MM8).

Medallion Metals shares closed on Friday trading for 43 cents. In early morning trade today (the ASX was closed on Monday for King’s Birthday), shares are changing hands for 41 cents apiece, down 4.7%.

For some context, the All Ords is down 1.5% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a steep 6.7%, as investors mull over the implications of renewed Iranian and Israeli attacks over the weekend.

Despite today’s retrace, the Medallion Metals share price remains up 57.7% since this time last year.

Here’s what’s catching investor interest today.

ASX All Ords gold stock on track for processing centre

This morning Medallion Metals announced that GR Engineering Services Ltd (ASX: GNG) has completed the Front End Engineering and Design (FEED) for the refurbishment and modification of its Cosmic Boy Concentrator (CBC).

The Cosmic Boy Concentrator is a former nickel processing plant that Medallion is working to repurpose into a gold-processing centre to process its Ravensthorpe Gold Project (RGP) ore in Western Australia.

The ASX All Ords gold stock said completion of the FEED confirms the Feasibility Study capital estimates for the refurbishment and modification of the CBC.

FEED is the final stage of engineering before moving forward with the Engineering Procurement and Construction (EPC) contract. Importantly, it provides the miner with the basis for EPC pricing and project execution planning.

Medallion Metals has now executed a $7.6 million Early Works Agreement with GR Engineering Services to advance the project’s delivery.

The gold miner expects the EPC contract to be finalised in July.

With early works underway and long-lead equipment fabrication said to be “well advanced” ahead of planned treatment of RGP ore, the miner reported that CBC commissioning on RGP ore remains on track for the second quarter of calendar year 2027.

What did Medallion Metals management say?

Commenting on the ASX All Ords gold stock’s CBC progress, Medallion Metals managing director Paul Bennett said, “It’s a great credit to our technical team and our engineering partners that the detailed engineering phase has confirmed plant capital costs broadly in line with the Feasibility Study estimates.”

Bennett added:

This provides the company with the confidence to commence early works ahead of finalisation of the EPC contract while maintaining the project schedule. With major lead items such as the secondary ball mill approaching completion and site preparation activities well advanced, we continue to build confidence in both the project budget and delivery timetable.

The post Up 58% in a year, ASX All Ords gold stock announces major WA milestones appeared first on The Motley Fool Australia.

More reading

• Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher
• Guess which ASX All Ords gold stock is leaping higher today on more high-grade results
• Record high: This ASX stock is surging on new project wins
• Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher
• Up 75% in a year, this ASX stock just landed a $229 million contract

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.

Australian share markets have been volatile throughout the first half of 2026, with ASX stocks fluctuating wildly in value.

Ongoing geopolitical tensions, concerns about further interest rate hikes, stubbornly high inflation, and a tech-sector-wide sell-off have all weighed heavily on investor sentiment and raised anxiety about a potential sharemarket crash.

But as the Oracle of Omaha, Warren Buffett, once said, “Be fearful when others are greedy and greedy when others are fearful”. In other words, a sharemarket crash might be the best time to buy ASX stocks.

Here are three ASX stocks I’d add to my portfolio in a sharemarket crash.

Xero Ltd (ASX: XRO)

Xero has reliable, sticky subscription revenue. The nature of its business means its customers are likely to keep paying for its services and products over a long time.

At the same time, the ASX tech stock still has a relatively small market position, suggesting there is potential to unlock significant growth. The company is actively expanding its product suites, such as payroll and workflow automation, and also its global presence in the UK and the US.

The company’s latest FY26 result was impressive too. In mid-May, Xero reported a 31% increase in operating revenue, and its adjusted EBITDA is up 18%.

I see most technology shares as undervalued right now after the latest panic that AI could disrupt traditional software models. A further sharemarket crash could create an even greater opportunity for long-term investors to buy a high-quality stock primed for strong growth. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a different category than Xero. Rather than a high-growth ASX tech stock, Wesfarmers is a leading Australian blue-chip company. 

It’s this stability and consistent long-term net profit growth that make the company a classic defensive stock. The retail conglomerate is able to provide investors with stability during an ASX sharemarket crash. 

Its stability also means it is able to pay its shareholders a consistent passive income. For FY26, the ASX defensive stock is expected to pay a total $2.13 dividend per unit, which translates to a forward dividend yield of around 2.7% at the time of writing.

iShares S&P 500 ETF (ASX: IVV)

IVV is another excellent investment for long-term investors to make during a sharemarket crash.

Rather than investing in just one ASX stock, IVV gives its shareholders exposure to around 500 of the largest companies listed in the US, including global brands, businesses with large customer bases and those with strong balance sheets. For example, the ETF has major names like Nvidia, Apple, and Amazon in its portfolio. 

The benefit of investing in an ETF rather than a single stock is that if one company suffers a share price fall, it would have a limited impact on the overall ETF. 

Buying IVV during a sharemarket crash is generally a lower risk investment than trying to pick individual winners. Instead of betting on one company, investors are effectively buying a slice of the largest US businesses all at once.

The post 3 ASX stocks I’d buy during a sharemarket crash appeared first on The Motley Fool Australia.

More reading

• Why Xero shares could be the best tech pick on the ASX right now
• Forget SpaceX shares and buy these ASX tech stocks
• ASX 200 tech stocks led the market with big share price gains last week
• Are Wesfarmers, Xero and this ASX 200 share buys in June?
• Why 30 June is the most important date for your superannuation this year

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 Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Wesfarmers 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.

Sustainable or ESG investing involves incorporating environmental, social and governance (ESG) factors into the investment process alongside traditional financial analysis. 

ESG strategies seek to identify companies that demonstrate responsible business practices, effective governance, and sustainable long-term growth prospects, while managing exposure to risks associated with environmental and social issues.

A changing narrative

ESG or climate-focused investing boomed around 2021, as investors aimed to target climate-positive solutions alongside increased government investment in a more sustainable future. 

Research estimates that sustainable investment funds attracted a record US$645 billion in net inflows globally in 2021. 

Asset managers rushed to wrap products in ESG language. 

Ahead of the COP26 climate summit, governments competed to announce increasingly ambitious net-zero commitments. 

During this period, sustainability looked less like an investment theme than the future of finance itself.

However, the mood has since changed.

According to VanEck, ESG investing has become heavily scrutinised and politicised. 

Fund inflows quickly turned into outflows as greenwashing claims multiplied, and the acronym itself became a liability for some money managers.

Yet the investment questions ESG was designed to answer have not disappeared. Despite all the back and forth, ESG investing still offers investors a useful framework for understanding risk, governance and long-term business quality.

How to target ESG principles using ASX ETFs

Thanks to the rise of thematic investing, there are plenty of ESG and ethical ASX ETFs for investors to choose from. 

More importantly, there are funds that are vastly outperforming benchmark indexes, proving that sustainable and ethical investing doesn’t mean sacrificing returns. 

According to VanEck, ESG investing is often associated with managing risk. But it can also help investors identify opportunities.

Consider the energy transition – according to the International Energy Agency, global investment in clean energy technologies and infrastructure now exceeds US$2 trillion annually.

Whatever one’s views on ESG, that is a significant flow of capital and investors pay attention when capital is moving at that scale.

ASX ETFs to consider

There are plenty of ASX ETFs that sustainably focused investors can consider. 

However, two in particular have stood out in 2026. 

The first is the VanEck Global Clean Energy ETF (ASX: CLNE). 

It gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production, associated technology, and clean energy equipment globally.

In simple terms, it focuses on companies involved in clean energy production and related technologies.

Year to date, this fund has risen by an impressive 34%, far outpacing benchmark indexes like the S&P/ASX 200 Index (ASX: XJO). 

Another option to consider is the Betashares Capital – Betashares Climate Change Innovation ETF (ASX: ERTH). 

It offers a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help address climate change and other environmental problems by reducing or avoiding CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

The fund has risen by almost 13% year to date. 

The post How to invest sustainably and still generate big returns with ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Why this ASX ETF could be the simplest way to play the global clean energy boom
• 3 of the hottest thematic ASX ETFs for investors to target this week 
• These ASX ETFs are smashing record highs 

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.

Value investing has been back in focus recently as several headwinds have pushed many equities below fair value. 

A new report from VanEck has highlighted why this is likely to continue. 

Investors have been rotating away from high-priced growth stocks and focusing on tangible cash flows, robust balance sheets, and reasonable valuations – companies known as “value” companies.

The core focus of value investing centres on targeting companies perceived to be trading at bargain prices relative to their underlying business performance. 

Often, they have been unfairly punished by the market because of recent negative publicity, a one-off lousy result, or they just operate in a less popular sector of the economy.

Therefore, value shares possess more robust fundamentals than their current share prices would otherwise indicate. 

In simple terms, these shares are trading on the stock market for less than their intrinsic value.

Value has been outperforming

According to VanEck, in May, the VanEck MSCI International Value ETF (ASX: VLUE) returned +15.08%. 

This outperformed the MSCI World ex Australia Index by 10.55%. 

Over the 12 months to 31 May 2026, VLUE returned +25.26%, outperforming the benchmark by 22.88%.

The report from VanEck also reinforced why this could continue. 

Inflation pressure to persist

According to the report, value companies have historically been better placed in periods where inflation and interest rates remain elevated. 

The ongoing oil crisis, alongside other factors such as historically high global government debt, could sustain inflationary pressures.

While markets have priced in a quick resolution to the US-Iran conflict, oil prices remain up around 56% from six months ago. Elevated oil and commodity prices have typically been a leading indicator of higher inflation.

US economic growth outlook still resilient

VanEck also reinforced that despite a number of growing pains, including mounting fiscal debt, tariff disruption, a shrinking labour force following immigration policy pivot, and an ongoing war with Iran, the US economy still looks resilient with a consensus forecast real growth at ~2% for 2026 and 2027.

In combination, somewhat resilient growth with growing long-term risk and persistent inflation pressure paints a stagflationary picture over the coming months, which is a potentially favourable environment for value companies.

Value outperformed in four of the last five stagflation periods.

Valuations remain compelling

Finally, VanEck believes that even after strong recent performance, value companies are not trading at stretched levels. 

Value (based on the MSCI World ex Australia Enhanced Value Top 250 Select Index) is trading at levels close to its 10-year average. 

From a relative value perspective, valuations are also at a multi-year low relative to broader equities.

The recent US earnings season has also confirmed that value fundamentals are meaningfully improving.

The past three quarterly results have seen value companies report more net beats than the benchmark. As of 31 May 2026, Q2 has been the strongest out of the past five quarters, with sell-side analysts forecasting higher year-on-year EPS growth than the broader market over the next two years.

ASX ETFs to target value

A simple way for investors to focus on value shares is with ASX ETFs.

Two options to consider include: 

• VanEck MSCI International Value ETF (ASX: VLUE) – gives investors a diversified portfolio of 250 international developed market large and mid-cap companies, with high value scores as calculated by MSCI at each rebalance
• Vaneck MSCI International Value (AUD Hedged) ETF (ASX: HVLU) – tracks the same international value strategy as VLUE but adds currency hedging back to Australian dollars

More information on the pros and cons of currency hedging can be found here.

The post 3 reasons to prioritise value investing right now: Expert  appeared first on The Motley Fool Australia.

More reading

• We’re back in a value market: Here’s 3 ASX ETFs to target
• 3 of the hottest thematic ASX ETFs for investors to target this week 

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.

ASX consumer discretionary stocks have been battered so far in 2026. 

The sector relies heavily on consumer confidence and everyday Australians having the disposable income to buy non-essential goods and services. 

High inflation and rising interest rates have put pressure on these purchases, subsequently hurting consumer discretionary spending. 

However, this downward pressure has also created value opportunities in the sector. 

Two consumer discretionary shares have received buy ratings from the team at Bell Potter. 

Here’s what the broker is tipping for the next 12 months. 

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners is an Australian-based company that provides death care services in Australia and New Zealand. The company owns funeral homes, cremation facilities, cemeteries, and related infrastructure in almost every Australian state and New Zealand.

Its share price has fallen almost 35% year to date. 

However, it now presents as a value play.

The company just released updated FY26 guidance.

Propel Funeral Partners expects FY26 revenue of $225 to $230 million and operating EBITDA of $54.5 to $56.5 million.

The guidance was slightly weaker than the market expected. Revenue is 3% to 4% below analyst and market forecasts.

Profit (EBITDA) is approximately 7% below market expectations and 4% below Bell Potter’s own forecast.

The main issue is lower funeral volumes (fewer funerals than expected).

Bell Potter had expected funeral volumes to grow in the second half of FY26, but the guidance implies volumes could actually fall by around 1%.

On the positive side, the amount of revenue earned per funeral (ARPF) is still increasing, up about 2% on a comparable basis.

Based on this guidance, Bell Potter retained its buy recommendation on the consumer discretionary stock, but lowered its price target to $3.80 (previously $5.90). 

Despite lowering its price target, the broker still projects 12% upside in the next 12 months. 

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive is the largest automotive retailing group in the Australian market.

Its share price has fallen 15% year to date. 

However, Bell Potter recently placed a $28 price target on this ASX consumer discretionary stock, indicating 34% upside from current levels. 

The broker said the stock looks reasonably valued on its P/E ratio. 

Back in early May, Eagers Automotive announced the completion of its strategic investment in CanadaOne Auto, one of Canada’s largest dealership groups, through the acquisition of 65% of the shares in its holding company.

Bell Potter’s view on the CanadaOne deal appears to be cautiously positive long term, but more conservative on near-term profitability than before.

We also see the recent trading update at the AGM as effectively “cleansing” the market as the H1 result has now been largely flagged – so there should be no surprises – and the sell-side has downgraded 2026 forecasts for higher bailment charges and the negative forex impact from CanadaOne.

The post Bell Potter just tipped 12% to 34% upside for these consumer discretionary stocks appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Brokers name 3 ASX shares poised for 52% to 78% gains
• Here are the top 10 ASX 200 shares today
• Why is this ASX 300 stock crashing 14% today?
• 2 ASX shares that I rate as buys today for both growth and dividends

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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Here is a question worth sitting on.

What would you call a software company that just delivered 31% revenue growth, added 110,000 new customers in the United States in a single year, partnered with Anthropic to embed AI into its platform, and authorised a $550 million share buyback?

Most investors would call it a buy. The market has called Xero Ltd (ASX: XRO) a sell.

Xero shares are down approximately 60% from their peak of $196.52 and are trading near $79.27 today. As a result, Xero has been one of the most punished large-cap technology stocks on the ASX.

Yet the business underneath has rarely looked more exciting. The market could be misunderstanding the opportunity set for Xero

Why Xero shares fell and why the market may be wrong

The sell-off has two primary causes.

First, the broader rotation out of high-multiple software stocks that has defined ASX technology investing in 2025 and 2026 hit Xero hard.

These investors have been particularly worried about the risk AI poses to Xero’s business model.

Second, Xero’s FY 2026 full-year result on 14 May showed a 27% decline in statutory net profit, which spooked short-term investors.

What those investors may have missed is that the profit decline was driven entirely by $45 million in one-off Melio acquisition costs.

Strip those costs out, and Xero delivered operating revenue growth of 31% to $2.8 billion, adjusted EBITDA growth of 18% to $757 million, and free cash flow of $554 million.

Those are, on the surface, quite exceptional numbers.

The US breakthrough that shows the way forward

For years, the US was Xero’s great unproven market. FY 2026 may have changed that in dramatic fashion.

US revenue surged 240% as Melio’s bill pay functionality was integrated into the Xero platform. This gives American small businesses a payments and accounting combination that Intuit’s QuickBooks does not natively offer at the same level.

Perhaps as a result, Xero added 110,000 US customers in FY 2026, its strongest-ever subscriber addition in that market.

The opportunity set is huge. The US is the world’s largest small business accounting software market, and Intuit controls approximately 80% of it.

Xero does not need to win the whole market to create extraordinary value for shareholders. The company just needs to keep taking share at its current pace.

CEO Sukhinder Singh Cassidy said:

Our strong full year results demonstrate Xero’s disciplined execution and macro-resilience. Our […] strategy is hitting its stride, demonstrated by accelerating US growth.

Two million subscribers are already using Xero’s AI

This is the part of the Xero story that many investors are misunderstanding.

Over two million Xero subscribers are now actively using AI features, with 300,000 specifically using new generative AI tools.

What’s more, Xero has partnered with Anthropic to integrate Claude AI directly into its platform. The company has launched XeroForce, a natural language AI agent that allows business owners to query their finances conversationally.

Smart document capture and automated reconciliation are live and driving measurable improvements in customer engagement.

These product updates make Xero’s platform more valuable and stickier for its existing user base.

Why AI is an opportunity, not a threat

The most persistent bear argument against Xero shares is that AI will make accounting software obsolete.

These fears may have been misplaced.

Rather than replacing platforms like Xero, AI agents depend on them. Every automated workflow needs a clean, structured, real-time data layer to function reliably, and businesses will pay a premium for software that provides it.

Xero has positioned itself to capture that value through higher-tier subscriptions, expanded product attach rates, and deeper customer lock-in.

With over two million subscribers already using Xero’s AI features, the more AI is embedded into the platform, the harder it becomes for customers to leave.

What Goldman Sachs and Morgans are saying about Xero shares

The broker community has been far more constructive on Xero shares than the market.

Goldman Sachs retained its buy rating and lifted its price target to $205. The broker described the US performance as an important data point that gives confidence to Xero’s American strategy.

At today’s Xero share price, that $205 target implies upside of approximately 160%.

Another broker, Morgans, upgraded Xero from hold to add with a $215 price target, noting improved sales traction and cost discipline as key positives.

Foolish Takeaway

Xero shares are down 60% from their peak.

The business just delivered 31% revenue growth, a US breakthrough, two million AI users, and a $550 million buyback.

What’s more, Goldman Sachs sees 160% upside.

For investors who can look past twelve months of share price pain, Xero could be the best tech stock on the ASX right now.

The post Why Xero shares could be the best tech pick on the ASX right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 Goldman Sachs Group, Intuit, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.