Tag: Stock pick

It’s been a lucrative month to own the BetaShares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO). Exactly one month ago, this exchange-traded fund (ETF) was asking $5.72 per unit. Today, those same units are fetching $7.47 each at the time of writing. That’s up 30.6% in four weeks.

It’s no secret why this oil-based ETF has fared so well.

A futures ETF?

The BetaShares Crude Oil ETF is a rather unique ASX fund. Rather than holding a portfolio of underlying stocks or bonds, as most ETFs do, it instead offers investors exposure to a portfolio of futures contracts. Futures contracts are derivatives that represent the value of a commodity, to be delivered in the future, at a price determined in the past or present. They are commonly used by both businesses and investors to mitigate risks associated with volatile commodities.

To illustrate, an oil-based futures contract might stipulate that 1,000 barrels of crude oil are to be delivered on 31 December 2026 at a price of US$60 per barrel. If the contract was made when oil prices were at US$60 a barrel, and the oil price rises to US$80 soon after, then that contract’s value just increased. Of course, it works the other way as well.

The OOO ETF holds a basket of these contracts. Given the sharp increase in the price of oil this week as a result of the new US-Iran war, it’s no surprise to see the value of OOO units rise rapidly in response.

We’ve also seen other energy-focused ASX ETFs react similarly on the ASX this week. One example is the BetaShares Global Energy Companies Currency Hedged ETF (ASX: FUEL). This ASX ETF doesn’t hold futures contracts. Instead, it opts for the traditional ETF model of holding an underlying portfolio of global energy stocks like Chevron, ConocoPhillips, Shell and ExxonMobil. FUEL units have risen by almost 6% over the past month.

Is it too late to buy funds like OOO and FUEL?

Investors might be looking at these gains and wondering whether it’s worth jumping on this train.

While it might be tempting to look at what’s going on with oil prices and conclude that either OOO or FUEL might be a good way to insulate your ASX share portfolios, I think that would be a mistake.

Oil is a highly volatile commodity at the best of times. But this volatility has reached unprecedented heights over the past week. On any given day now it seems, oil can move by double-digits in either direction. Whilst you might be able to time a trade perfectly to take advantage of one of these upswings, there’s just as likely a chance that you can be caught out by a downturn. You may as well go down to the casino and put it all on red.

Further, commodity-specific ETFs like OOO and FUEL tend to charge relatively high management fees and deliver low long-term gains. At least compared to market-wide index funds.

As such, I think ASX investors would be better off finding high-quality companies that compound their earnings every year and buying them at a good price over trying to take advantage of the whipsawing energy prices that we are seeing.

The post Up 30% in a month: Is it too late to buy the BetaShares Crude Oil ETF (OOO)? appeared first on The Motley Fool Australia.

More reading

• BHP and Woodside linked in CEO race as top executive emerges as contender
• Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback
• If you think global instability will persist, these ASX ETFs might be for you
• Oil tumbles after nearing US$120. Here’s why prices are pulling back
• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging

Motley Fool contributor Sebastian Bowen 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 Chevron. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ConocoPhillips. 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.

When I think about long-term investments, I usually look for companies that can benefit from powerful structural trends over many years.

For me, lithium sits right in the middle of one of those trends. The global shift toward electric vehicles, battery storage, and electrification more broadly is still in its early stages. While lithium prices can be volatile in the short term, the long-term demand outlook for battery materials remains compelling.

That’s why I think PLS Group Ltd (ASX: PLS) could be a share worth buying and holding for the next decade.

A world-class lithium asset

One of the biggest reasons I like PLS is the quality of its core asset.

The company owns the Pilgangoora operation in Western Australia, which is one of the largest independent hard-rock lithium operations in the world. Large-scale, long-life assets like this are incredibly valuable in the resources sector because they can generate strong cash flow across multiple commodity cycles.

PLS has also demonstrated that it can run this asset efficiently. In its recent interim results, production increased to 432.8k tonnes, and sales reached 446k tonnes for the half year, reflecting continued operational strength.

What stands out to me is that the company continues to improve its operating performance even as lithium markets fluctuate. Unit operating costs declined while realised prices improved significantly, highlighting the strength of the business when conditions turn favourable.

A balance sheet built for cycles

Commodity companies often struggle when prices fall, but PLS appears well-positioned to handle those periods.

The company ended the first half with roughly $954 million in cash and total liquidity of about $1.6 billion.

That financial strength matters in a cyclical industry like lithium. It gives management flexibility to continue investing through the cycle rather than being forced to cut spending when prices are weak.

In my view, that kind of balance sheet resilience is exactly what long-term investors want to see in a mining company.

A clever expansion into South America

Another reason I think PLS shares look attractive over the long term is the company’s expansion strategy.

About a year ago, the company acquired Latin Resources at what many would consider the bottom of the lithium cycle. That deal cost approximately $560 million and gave PLS exposure to the Colina lithium project in Brazil.

Timing matters enormously in the resources sector. When lithium prices were depressed, assets across the industry were being valued far more conservatively.

If the same acquisition had been attempted today, after the strong rebound in lithium prices, I suspect it would have cost significantly more.

For PLS, that acquisition creates a potential second growth engine in South America while the Pilgangoora operation continues generating cash.

A business tied to the energy transition

Over the next decade, global demand for lithium is expected to rise significantly as electric vehicle adoption grows and battery storage becomes more widespread.

No one can predict exactly how lithium prices will move from year to year. However, companies that control large, low-cost deposits are often best positioned to benefit from long-term demand growth.

PLS already has scale, established partnerships across the lithium supply chain, and a strong operational track record.

Foolish Takeaway

Lithium is not a low-risk industry. Prices will rise and fall, and sentiment can swing quickly.

But when I look beyond the short-term noise, PLS stands out as a company with world-class assets, a strong balance sheet, and growing global exposure.

If I were looking to buy and hold a lithium share for the next 10 years, PLS would be high on my list.

The post Why I’d buy and hold PLS shares for 10 years appeared first on The Motley Fool Australia.

More reading

• Australia’s next great ASX mining boom: Are we already in it?
• 3 shares dumped from the ASX 200 index (and 3 new additions)
• 1 beaten-down ASX share to consider buying today, and 5 I’m shunning for now
• If I’d bought 1,000 PLS shares a year ago, would I have made money?
• $5,000 to invest? Here’s how I’d split it across the ASX

Motley Fool contributor Grace Alvino 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.

Wesfarmers Ltd (ASX: WES) shares are edging lower today.

Shares in the diversified S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed yesterday trading for $75.46. During the Wednesday lunch hour, shares are swapping hands for $75.25 apiece, down 0.3%.

For some context, the ASX 200 is up 0.4% at this same time.

Taking a step back, Wesfarmers shares have gained 5.3% over the past 12 months, underperforming the 10.7% one-year gains posted by the benchmark index.

But that doesn’t include the passive income Wesfarmers delivered to shareholders during this time.

Over the past full year, the company paid out $2.53 a share in fully franked dividends. This sees Wesfarmers stock trading at a fully franked trailing dividend yield of 3.4%.

Which brings us back to our headline question.

With the ASX 200 stock achieving 9% half year profit growth, is the company a good buy today?

Should you buy Wesfarmers shares today?

Investor Pulse’s Mark Elzayed recently ran his slide rule over the stock (courtesy of The Bull).

Elzayed currently has a hold recommendation on Wesfarmers shares.

“Despite the recent market turbulence, we continue to hold this industrial conglomerate, reflecting group resilience amid consistency among its core retail divisions,” he said.

As for that $1.6 billion half year NPAT growth, Elzayed noted:

The recent first half result for fiscal year 2026 reinforced our view, with statutory net profit after tax of $1.603 billion up 9.3% on the prior corresponding period. Bunnings and Kmart Group sustained sales momentum by leaning into their low price positioning at a time when household budgets remain under pressure.

And, as you may be aware, Wesfarmers shares have exposure to far more than just the retail holdings.

According to Elzayed:

Wesfarmers chemicals, energy and fertiliser division has also become a more meaningful contributor, helped by firmer lithium prices and the ramp up of the Covalent Lithium refinery, which is now producing battery grade lithium hydroxide.

What’s the latest from the ASX 200 conglomerate?

Wesfarmers reported its half-year results on 19 February.

Atop the profit growth Elzayed mentioned up top, the company achieved a 3.1% year-on-year increase in revenue to $24.21 billion.

And earnings before interest and tax (EBIT) increased by 8.4% to $2.49 billion.

“Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF,” Wesfarmers managing director Rob Scott said.

Despite those solid results, Wesfarmers shares closed down 5.6% on the day of the release.

The post With half year profits up 9% to $1.6 billion, are Wesfarmers shares a buy? appeared first on The Motley Fool Australia.

More reading

• 3 Australian shares to buy if the ASX pulls back 10%
• Expert gives its verdict on 3 popular ASX 200 shares
• 3 high-quality ASX 200 shares I think Warren Buffett would probably love
• What I’d buy if the ASX share market crashes
• Here’s the dividend forecast out to 2030 for Wesfarmers shares

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

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Eagers Automotive Ltd (ASX: APE)

According to a note out of Bell Potter, its analysts have upgraded this automotive retailer’s shares to a buy rating with a trimmed price target of $28.50. The broker made the move on valuation grounds following a period of share price weakness. Bell Potter continues to believe that the company can achieve its guidance in FY 2026 despite a softer start to the year. It notes that the softer start to the year has been driven by Toyota supply chain issues, which are expected to be resolved in the near term. In light of this, at 20x earnings, Bell Potter thinks that the company’s shares are attractively priced at present. The Eagers Automotive share price is trading at $21.14 on Wednesday.

Qantas Airways Ltd (ASX: QAN)

A note out of Citi reveals that its analysts have retained their buy rating and $12.10 price target on this airline operator’s shares. The broker highlights that Qantas’ shares have fallen heavily since the start of the war in the Middle East. It believes this implies that the disruption will last far longer than the broker’s base case assumption. And while it concedes that there will be some impact to earnings from the conflict, Citi doesn’t believe it will be as bad as the market is making it out to be. As a result, the broker thinks investors should be buying the dip. The Qantas share price is fetching $8.72 at the time of writing.

Zip Co Ltd (ASX: ZIP)

Analysts at Macquarie have retained their buy rating and $3.35 price target on this buy now pay later provider’s shares. According to the note, the broker has been looking at Zip’s business model and remains confident. It thinks investors should look past its moderating operating leverage and focus on its medium-term growth outlook. Macquarie is expecting Zip’s U.S. net transaction margin to improve sequentially in both the March quarter and June quarter. And while loan losses are rising relative to total transaction value, Macquarie points out that this is because Zip is bringing on new users. The company can quickly remove defaulters, boosting its loan loss metrics. The Zip share price is trading at $1.72 this afternoon.

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

More reading

• Macquarie says this major fintech stock can rocket almost 100%
• Guess which ASX 200 stock was just upgraded by a leading broker
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Nosedive: Why did Qantas shares crash 9% today?

Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

Oil prices have fallen sharply after surging earlier this week as the Middle East war distressed global energy markets.

Just days ago, crude briefly spiked close to US$120 per barrel, triggering fears of a major supply shock.

Now prices are cooling quickly. According to TradingEconomics, West Texas Intermediate (WTI) crude is currently trading around US$83.15 per barrel.

The sudden reversal is also weighing on oil-linked investments, including the Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO).

At the time of writing, the OOO share price is $7.49, down 4.95% for the day.

Let’s take a closer look at what is happening.

Oil prices retreat after Middle East fears ease

The earlier surge in oil prices was driven by rising tensions in the Middle East and fears that global oil supply could be disrupted.

Markets were particularly focused on the Strait of Hormuz, one of the most important shipping routes for global energy.

Around 20% of the world’s oil supply moves through the Strait each day, making it one of the most critical choke points in the global energy system.

Several major Middle East producers, including Saudi Arabia, the UAE, Kuwait, and Iraq, rely heavily on this route to export crude to global markets.

However, traders are now reassessing the immediate risk to supply.

Reports also indicate the International Energy Agency (IEA) is considering a coordinated release of emergency oil reserves. Member nations collectively hold about 1.2 billion barrels in strategic stockpiles, along with roughly 600 million barrels of industry inventories.

If released, these reserves could help offset potential supply disruptions and ease pressure on global energy markets.

Why the Betashares Crude Oil ETF is falling

The pullback in oil prices is also dragging down the Betashares Crude Oil ETF.

The fund gives investors exposure to oil by tracking the S&P GSCI Crude Oil Index, which reflects movements in global crude futures. It also hedges currency exposure between the US dollar and the Australian dollar.

Because of this, the ETF typically moves in line with oil prices.

Crude surged earlier this week during the sharp rally, helping lift the value of the futures contracts tracked by the index. Now that prices have pulled back, the ETF has also come under pressure.

Despite recent volatility, the fund has still delivered strong returns this year, up about 46%.

What could happen next?

Oil markets remain highly sensitive to developments in the Middle East and the potential impact on global supply.

The market is closely monitoring shipping activity through the Strait of Hormuz, as well as any coordinated response from major energy agencies such as the IEA.

Further escalation in the region could quickly push crude prices higher again.

On the other hand, a coordinated release of strategic reserves or easing tensions in the region could lower oil prices.

The post Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback appeared first on The Motley Fool Australia.

More reading

• Oil tumbles after nearing US$120. Here’s why prices are pulling back
• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging

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.

The Reserve Bank of Australia (RBA) could be preparing to raise interest rates again as inflation pressures remain stubbornly high.

Several economists and market indicators now suggest a rate hike is becoming increasingly likely. The central bank’s next policy meeting will take place on 16th to 17th March.

If the RBA does move, it would lift the official cash rate from its current level of 3.85%. This would mark another step in the central bank’s effort to bring inflation back within its target range.

Here’s what investors need to know.

Markets are increasingly pricing in a rate hike

Financial markets have rapidly shifted their expectations in recent days.

According to ABC News, the probability of a rate hike at the next RBA meeting has climbed to around 67.5%. That figure has surged following recent comments from RBA deputy governor Andrew Hauser.

Hauser said the Australian economy currently has “limited spare capacity”, suggesting demand in the economy remains strong.

He also noted that inflation pressures could end up higher than the RBA previously expected.

Those comments have prompted investors to rethink the likelihood of near-term monetary tightening.

Some major banks and economic research groups have also changed their forecasts.

Economists at Capital Economics now expect the RBA to deliver a 25-basis point increase in March. Another potential rise in May could push the cash rate towards 4.35%.

UBS has also flagged the possibility of a rate hike arriving sooner than previously expected.

Inflation risks remain a key concern

One of the biggest reasons behind the renewed rate hike expectations is inflation.

Australia’s headline inflation rate recently sat around 3.8%, which remains above the RBA’s target band of 2% to 3%.

At the same time, the labour market remains tight. The unemployment rate is currently around 4.1%, indicating strong employment conditions across the economy.

Strong economic growth is also adding to inflation concerns. Recent figures showed the Australian economy expanded 2.6% over the past year, the fastest pace in roughly 3 years.

Some economists believe that overseas developments may also put further pressure on inflation.

The recent surge in oil prices linked to tensions in the Middle East has raised concerns that energy costs could push inflation higher in the months ahead.

If that happens, the RBA may feel the need to keep monetary policy tighter for longer.

What this could mean for investors

Higher interest rates can have mixed impacts on the share market, including the S&P/ASX 200 Index (ASX: XJO).

Banks and financial companies sometimes benefit from higher rates because they can earn more income on lending.

However, rate hikes can weigh on sectors that rely heavily on borrowing, including property companies and highly valued growth stocks.

For now, all eyes will be on the RBA’s upcoming policy meeting.

The post Why the RBA could lift interest rates again this month appeared first on The Motley Fool Australia.

More reading

• Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback
• Macquarie says this major fintech stock can rocket almost 100%
• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 3 excellent ASX shares I’d happily hold through the next market cycle
• 3 reasons to buy the big dip on WiseTech shares today

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.

The analyst team at Macquarie have run the ruler over Zip Co Ltd’s (ASX: ZIP) results and thinks there’s huge upside to be had from the fintech company.

Zip Co shares have been under pressure since the company reported its first half results in mid-February, but it’s fair to say Macquarie analysts think the negativity is overdone.

Underlying metrics looking good

So let’s have a look at what was reported.

Zip Co reported record cash EBTDA of $124.3 million, up 85.6% on the previous corresponding period, and record total transaction volume (TTV) of $8.4 billion, up 34.1%. Active customers also increased by 4.1% to 6.6 million.

Revenue came in at $658.1 million, while net profit from ordinary activities was up 128% at $52.4 million.

Zip managing director Cynthia Scott said regarding the result:

Zip continues to increase profitability at scale, driving cash earnings growth of 85.6% and significant operating margin expansion during the half. Momentum accelerated across both markets, underpinned by continued strategy execution, deeper customer engagement, strong holiday trading and expanded channel partnerships. We continue to execute strongly on our US growth opportunity, with TTV and revenue up 44.2% and 46.4% respectively (in USD), with active customers up 9.7% (407k) year on year. We also expanded our Pay-in-Z offering, giving customers greater flexibility for everyday purchases by making Pay-in-2 available to all customers in February 2026. In ANZ, we delivered a 138.0% year-on-year increase in cash earnings, supported by revenue and Australian receivables returning to growth with continued adoption of Zip Plus.

Ms Scott said bad debts were in line with targets and the company completed its $100 million share buyback during the half.

She added regarding the outlook:

We are well-positioned to continue executing against our FY26 strategic priorities and delivering profitable growth at scale. Following a strong first half, Zip has upgraded its FY26 guidance for operating margin and cash EBTDA as a % of TTV while reconfirming its other target ranges.

Zip Co shares look cheap

Macquarie analysts have had a look at the result and said in a research note to clients that the company was deeply undervalued.

The Macquarie team said they were forecasting improvement for Zip in both the third and fourth quarters of the year.

They added:

Despite the reset in earnings on the back of moderated operating leverage as Zip invests for growth, we expect medium-term growth supported by Zip’s attractive unit economics model.

Macquarie has a price target of $3.35 on Zip Co shares, compared with the current price of $1.69.

If achieved, that would constitute a 98.2% return. Zip Co was valued at $2.14 billion at the close of trade on Tuesday.

The post Macquarie says this major fintech stock can rocket almost 100% appeared first on The Motley Fool Australia.

More reading

• Here’s the earnings forecast out to 2030 for Zip shares
• Forget NAB shares, this ASX fintech stock could double in value
• How I’d invest $20,000 in the ASX share market right now
• 3 reasons to buy this oversold ASX growth stock today
• Here are the top 10 ASX 200 shares today

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.4% to 8,727.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Breville Group Ltd (ASX: BRG)

The Breville share price is down 2.5% to $28.60. This appears to have been driven by the appliance manufacturer’s shares going ex-dividend this morning for its latest payout. Last month, Breville released its half-year results and declared a fully franked dividend of 19 cents per share. This will be paid to eligible shareholders later this month on 27 March 2026.

Forrestania Resources Ltd (ASX: FRS)

The Forrestania Resources share price is down 3% to 61 cents. This morning, this gold explorer announced a deal to acquire a number of mining tenements within Western Australia’s Eastern Goldfields gold district. The company has agreed to pay $5 million for the package of tenements. Forrestania Resources’ chair, David Geraghty, commented: “This acquisition is aligned with Forrestania’s disciplined strategy of consolidating prospective tenure, with significant tenure now in the FRS Eastern Goldfields Hub. Importantly, the transaction structure aligns consideration with preserving capital which can be assigned to advancing Forrestania’s near term production ambitions across our portfolio of Western Australian gold assets.”

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 6% to $1.79. This follows the release of the fund manager’s latest funds under management (FUM) update. GQG Partners reported a 4.3% increase in FUM to US$172.9 billion during the month of February. However, this was entirely driven by investment performance, which offset net outflows of US$3.2 billion. The company’s net outflows were recorded across all strategies, with emerging markets leading the way. It reported net outflows of US$1.3 billion for emerging markets, followed by US$0.9 billion of net outflows from international strategies.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down over 3.5% to $49.18. This appears to have been driven by profit-taking from some investors following a strong rebound in recent weeks. For example, even after today’s weakness, the WiseTech Global share price is up a sizeable 14% since 24 February. However, it remains down heavily since the start of the year.

The post Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX shares I’d happily hold through the next market cycle
• 3 reasons to buy the big dip on WiseTech shares today
• Why this ASX 200 financials stock is crashing 7.6% today
• GQG Partners lifts FUM to US$172.9bn in February 2026
• 4 ASX tech shares tipped to jump up to 140% higher

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

Share markets rarely move in a straight line.

Over time there are rallies, pullbacks, and the occasional sharp sell-off. Trying to predict exactly when those moments will occur is extremely difficult, which is why I prefer focusing on ASX shares I would be comfortable holding through an entire market cycle.

Companies with strong competitive positions, reliable earnings, and long-term growth opportunities tend to be the ones that can navigate those ups and downs best.

Here are three ASX shares that stand out to me in that regard.

ResMed Inc (ASX: RMD)

Since its founding in 1989, ResMed has built one of the most dominant positions in global sleep healthcare.

The company develops devices and digital platforms for treating sleep apnoea and other respiratory conditions. These treatments address a huge and growing health problem, with millions of people worldwide still undiagnosed.

What makes ResMed particularly interesting is the ecosystem it has built around its products. Its devices generate valuable patient data that feeds into its digital health platforms, creating a connected system used by patients, clinicians, and healthcare providers.

Demand for sleep apnoea treatment continues to grow as awareness increases and populations age. That creates a long runway for the company to keep expanding.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global is an Australian technology company with a strong global presence.

Its CargoWise platform is used by logistics providers to manage complex international supply chains. Once embedded into a customer’s operations, this type of software becomes extremely difficult to replace.

The global logistics industry remains highly fragmented, providing WiseTech with an opportunity to continue expanding its customer base and adding new functionality to its platform.

The company has also been investing heavily in new products and integrations that aim to deepen its role in global trade.

If those initiatives continue to gain traction, WiseTech could remain one of the ASX’s more compelling long-term growth stories.

Woolworths Group Ltd (ASX: WOW)

Not every long-term investment needs to be a high-growth technology company.

Woolworths is a good example of a business that benefits from steady demand and a strong competitive position. As Australia’s largest supermarket operator, it sells products that households need regardless of the economic environment.

Its scale and supply chain advantages make it difficult for competitors to replicate its operational efficiency.

While Woolworths may not deliver explosive growth, its stability, cash flow, and ability to generate reliable earnings have made it a core holding for many long-term investors.

Foolish takeaway

Markets will always experience periods of volatility, but high-quality businesses often prove resilient over time.

ResMed, WiseTech Global, and Woolworths operate in very different industries, yet each has built a strong position in its respective market. Companies with those kinds of advantages can often continue to grow and generate returns even as the broader market moves through different cycles.

The post 3 excellent ASX shares I’d happily hold through the next market cycle appeared first on The Motley Fool Australia.

More reading

• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 3 reasons to buy the big dip on WiseTech shares today
• Four ASX healthcare stocks which are looking cheap
• 4 ASX tech shares tipped to jump up to 140% higher
• How to turn $20,000 into lifelong passive income with ASX shares

Motley Fool contributor Grace Alvino 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 ResMed and WiseTech Global. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares are taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed trading yesterday for $51.08. As we eye the Wednesday lunch hour, shares are changing hands for $49.05 apiece, down 4.0%.

For some context, the ASX 200 is up 0.8% at this same time.

With today’s intraday losses factored in, WiseTech shares are now down a sharp 43% since this time last year.

But looking to the year ahead, Red Leaf Securities’ John Athanasiou expects far better performance from the ASX 200 tech stock (courtesy of The Bull).

Here’s why.

Should you buy WiseTech shares today?

“WTC develops and provides software solutions to the global logistics industry,” said Athanasiou, who has a buy rating on the stock.

The first reason he’s bullish on the ASX 200 tech stock is the potential for AI to significantly reduce the company’s labour costs and increase overall productivity.

According to Athanasiou:

Artificial intelligence (AI) continues to be embedded across its software, which is likely to cut 2,000 jobs in fiscal years 2026 and 2027. AI enhances productivity across CargoWise logistics datasets and global integrations.

The second reason you might want to buy the dip on WiseTech shares is the strong earnings and revenue growth the company achieved in H1 FY 2026.

“First half revenue in fiscal year 2026 exceeded expectations. Synergies from e2open were delivered 18 months early, and customer retention remains about 99%,” Athanasiou said.

As for the third reason WiseTech shares could be set to outperform, Athanasiou concluded:

With dominant network effects across more than 190 countries, improving cost discipline and scalable growth opportunities, WiseTech offers a structurally de-risked path to margin expansion.

What’s the latest from the ASX 200 tech stock?

WiseTech reported its half-year results on 25 February.

As for that expectation beating revenue Athanasiou mentioned above, the company reported revenue of US$672 million, up 76% year on year. That figure includes the five-month revenue contributions from US supply-chain software company e2open, which WiseTech acquired in August. Half-year revenue was up 7% organically.

On the earnings front, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 31% from H1 FY 2025 to US$252.1 million. Organic EBITDA was up 7% to US$208.4 million.

“We continue on our deliberate AI transformation journey,” WiseTech CEO Zubin Appoo said.

Appoo added:

AI is strengthening our advantage, enabling significantly more automation and value for our customers, embedding our products more deeply into their daily operations, and unlocking levels of efficiency gains across WiseTech that were previously out of reach.

WiseTech shares closed up 11.1% on the day of the results release.

The post 3 reasons to buy the big dip on WiseTech shares today appeared first on The Motley Fool Australia.

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