Tag: Stock pick

The Australian share market has traditionally delivered an average annual return of around 10%.

While that is a great return, the team at Bell Potter thinks you could potentially double this return with the ASX 200 stock in this article.

Which ASX 200 stock?

The stock that Bell Potter is recommending to clients is ALS Ltd (ASX: ALQ).

It is a global testing, inspection, and certification (TIC) company, servicing clients across several industries.

Bell Potter notes that ALS commands a market-leading position in geochemical testing, leveraging its hub-and-spoke model, Laboratory Information Management System (LIMS) and innovative value-added capabilities.

In Life Sciences, it operates one of the largest global environmental testing businesses, with a footprint spanning 35+ countries.

It released its full-year results on Monday and delivered numbers that were largely in line with Bell Potter’s expectations. It said:

ALQ’s FY26 result was headlined by uEBIT of $599m, up 19.3% YoY and in line with BPe. Group uEBIT margin expanded 130bps to 18.0% (BPe 17.5%).

Key points: Operating result: Group organic revenue growth of +8.4% (BPe +9.1%), was led by Commodities (+18.1%; BPe +16.6%), with mixed performance reported at Life Sciences (+2.8%; BPe +4.8%). Expanding exploration activity in 2H across Junior, Intermediate and Major customers delivered an acceleration in sample volume growth and improved pricing dynamics, with lower-priced legacy contacts rolling off as guided.

It also notes that its guidance for FY 2027 was also in line with expectations. The broker adds:

Outlook commentary include: 1) FY27 Minerals organic revenue expected to rise 13.0-15.0% YoY (BPe old 14.5%), with 1H FY27 uEBIT margin to be consistent with 2H FY26 levels, then rising a further 30-50bps in 2H FY27; and 2) Life Sciences targeting mid-single digit organic revenue growth in FY27 (BPe old 4.6%), with incremental EBIT margin improvement of 30-50bps (BPe old 44bps).

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX 200 stock with a trimmed price target of $26.00 (from $28.00).

Based on its current share price of $21.83, this implies potential upside of 19% for investors over the next 12 months.

In addition, a partially franked 2.3% dividend yield is expected in FY 2027, boosting the total potential return to approximately 21%.

Commenting on its buy recommendation, Bell Potter said:

Our downgraded Target Price reflects a higher WACC of 8.3% (previously 7.8%). We view the FY27 Minerals revenue and EBIT margin outlook as conservative, with FY26 exit-rates and exploration market indicators suggesting Minerals could deliver organic revenue growth of >20.0% in FY27 (BPe new 14.9% – within guidance).

The post Buy this ASX 200 stock for a 21% return: Broker appeared first on The Motley Fool Australia.

More reading

• Why is this ASX industrials stock edging higher today?
• ALS reports record FY26 earnings and dividend uplift
• Why investors should buy the dip on this ASX industrials stock
• ALS reports cyber security incident impacting operations

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 Contact Energy Ltd (ASX: CEN) share price is in focus as the company delivered solid growth in both customer and wholesale electricity sales for April 2026, with mass market electricity and gas sales up to 372GWh from 284GWh a year ago, and wholesale contract volumes rising noticeably.

What did Contact Energy report?

• Mass market electricity and gas sales jumped to 372GWh (April 2025: 284GWh)
• Customer netback increased to $153.24/MWh (April 2025: $148.59/MWh)
• Contracted wholesale electricity sales rose to 898GWh (April 2025: 655GWh)
• Electricity and steam net revenue was $148.95/MWh (April 2025: $146.59/MWh)
• Unit generation cost decreased to $44.95/MWh (April 2025: $49.48/MWh)
• Electricity generated or acquired grew to 962GWh (April 2025: 722GWh)

What else do investors need to know?

Otahuhu’s ASX futures settlement price for Q3 2026 stood at $144/MWh as at 30 April, down from $189/MWh at 31 March. This highlights some recent wholesale price pressure, although market storage levels are robust, with South Island and North Island controlled storage at 107% and 179% of mean respectively as of mid-May.

Progress continues on Contact’s renewables pipeline, including the Kōwhai Park Solar project (expected online Q3 CY2026), Te Mihi Stage 2 geothermal (Q3 CY2027), and the Glenbrook-Ohurua Battery (Q1 CY2028). Contracted gas volumes for the next 12 months are 8.7PJ, providing supply flexibility.

New Zealand’s total electricity demand rose 3.6% year-on-year for April, aided by warmer temperatures and ongoing population growth. Retail customer connections edged up, with electricity and gas accounts reaching approximately 460,000 and 78,000 respectively.

What’s next for Contact Energy?

Contact Energy is ramping up its focus on renewable energy development, with several major projects scheduled for completion in the coming years. This investment supports Contact’s aim to lower generation costs and provide more sustainable options to customers.

Storage levels are currently above long-term averages, positioning the company well for winter and allowing for flexibility in managing energy supply and market risk. Watch for updates on project milestones and evolving wholesale price trends in the months ahead.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Contact Energy reports April 2026 earnings appeared first on The Motley Fool Australia.

More reading

• Technology One posts 17th consecutive record first-half profit, AI drives FY26 guidance
• 5 things to watch on the ASX 200 on Tuesday
• Why is the ASX 200 starting at a 7-week low today?
• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is sinking to a 7-week low today

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.

Elders Ltd (ASX: ELD) shares started the week in a very disappointing fashion.

On Monday, the ASX 200 share crashed 23% following the release of its half-year results.

Has this created a buying opportunity for investors? Let’s find out.

What is Bell Potter saying about this ASX 200 share?

The team at Bell Potter has been looking over the result. It highlights that Elders fell short of expectations with its results. It said:

ELD reported 1H26 underlying EBIT slightly below our forecasts at $76.6m (vs. BPe of $77.9m). Key operating statistics of the result included: Operating results: Operating revenue of $1,768m was up +25% YoY (vs. BPe $1,789m). EBIT of $76.6m was up +19% YoY (vs. BPe of $77.9m). Underlying NPAT of $38.0m was down -1% YoY (and BPe of $41.3m). Gross profit, up +22% YoY, was stronger than forecast, particularly in crop protection and ERS, however, operating costs are running higher than forecast, up +23% YoY and largely driven by a $15m YoY uplift in corporate services.

Speaking about its outlook, the broker adds:

Key outlook comments include: (1) ERS to benefit from margin optimisation program (SYSMOD) and strong livestock and wool prices; (2) Focus on procurement synergies from integration with Delta in Crop Protection ; (3) AIRR to continue positive momentum in 2H26; (4) Delta to have a stronger 2H26e contribution, with synergies weighted to 2H26; and (5) pressure on cost base to ease in 2H26.

Should you buy the dip?

According to the note, the broker remains positive on the ASX 200 share despite the earnings miss.

In response, Bell Potter has retained its buy rating on Elders’ shares with a reduced price target of $6.45 (from $9.00).

Based on its current share price of $5.55, this implies potential upside of 16% for investors over the next 12 months.

In addition, Bell Potter is forecasting fully franked dividend yields of 6.5% in FY 2026 and then 7.2% in FY 2027.

Commenting on its buy recommendation, Bell Potter said:

1H26 was a consensus miss on higher SYSMOD linked costs and to a degree reflects dual running costs that should reduce into FY27e. However, this was poorly communicated and largely mitigated the benefit of operating leverage. Delivering on the promise of Delta, backward integration and SYSMOD, while unwinding duplicate cost structures are central to EPS growth, but this needs to be done in a potentially more difficult 2HCY26 seasonal backdrop with a CEO transition.

The post Should you buy this ASX 200 share after it crashed 23%? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• Which ASX 200 share is crashing 22% on half-year results?
• Elders posts higher HY26 profit and holds interim dividend

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 Elders. 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 have fallen a long way from their highs.

At $71.26, the blue-chip share is trading just above its 52-week low of $70.80 and well below its 52-week high of $95.18.

That is a large pullback for one of the ASX’s highest-quality businesses.

I think it could also be a buying opportunity.

A better price for a quality business

Wesfarmers is rarely an obvious bargain.

The market usually gives the company a premium valuation because of the quality of its brands, its strong balance sheet, and its long record of creating shareholder value.

So when the share price falls this far, I think investors should pay attention.

Wesfarmers owns businesses that are deeply embedded in everyday Australian life.

Bunnings remains a leader in home improvement. Kmart has become one of the country’s strongest value retailers. Officeworks serves households, students, and businesses. Priceline gives the group exposure to health and beauty. WesCEF adds industrial earnings and a long-term lithium opportunity.

That is a useful mix. It gives Wesfarmers exposure to household spending, commercial customers, healthcare, industrial activity, and batteries. This makes it more diversified than many other blue-chip shares on the ASX.

Why I like the timing

The current environment is not easy.

Consumers are dealing with cost-of-living pressure, interest rates are rising, and confidence is under strain. Retailers need to work harder to win spending.

But I think Wesfarmers is better placed than most.

Its strongest retail brands have clear value credentials. Kmart’s low-price model can resonate when households are watching every dollar. Bunnings also has a powerful position because many customers still need products for repairs, maintenance, trade work, and smaller home projects even when larger renovations slow.

This is where Wesfarmers’ scale can help.

Large businesses with trusted brands, strong supplier relationships, and disciplined cost control can often manage tougher periods better than weaker competitors.

I also like the way Wesfarmers continues to invest in productivity, digital capability, data, and customer experience. These are not flashy growth stories, but they can improve efficiency and help the group stay relevant as shopping habits change.

More than retail

Another reason I like Wesfarmers shares is that the company has growth options beyond its core retail brands.

Its lithium exposure through Mt Holland gives the company a connection to batteries, electric vehicles, and energy storage. Lithium prices can be volatile, so I would not make this the only reason to buy the stock.

However, I like having that option inside a larger, profitable, diversified group.

Wesfarmers also has the financial flexibility to invest through the cycle. That can be a major advantage when competitors are under pressure or when new opportunities appear.

Foolish takeaway

Wesfarmers shares are not going to suit investors looking for a deep-value stock on a very low earnings multiple.

This is still a premium business. But after falling close to a 52-week low, I think the share price now offers a more attractive entry point into one of the ASX’s best blue chips.

The group has trusted brands, exposure to value-focused spending, a diversified earnings base, and long-term growth options in health, digital, and lithium.

For investors looking for a high-quality ASX share to buy and hold, Wesfarmers looks very interesting at these levels.

The post Why Wesfarmers could be one of the best blue-chip shares to buy appeared first on The Motley Fool Australia.

More reading

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• If I invest $8,000 in Wesfarmers shares, how much passive income will I receive in 2027?
• My simple investing strategy if I had to start over
• 3 ASX 200 shares I’d buy and hold through any market cycle
• How to build passive income with ASX shares in 3 easy steps

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

Block Inc (ASX: XYZ) shares closed on Monday trading for $97.65 apiece.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) company, which acquired Afterpay in January 2022, up 11.42% over 12 months.

That’s more than four times the 2.6% one-year gains delivered by the ASX 200.

And according to Andrew Dale, a partner and portfolio manager at ECP Asset Management, the BNPL giant still looks to be trading for a bargain (courtesy of The Australian Financial Review).

Should you buy Block shares today?

Asked which stock his fund holds that he believes is the most undervalued by the market, Dale pointed to Block shares.

According to Dale:

We believe Block – a financial technology company which owns Afterpay – is underappreciated and is a top position in the fund. In its most recent update, it demonstrated progress on its operational efficiency initiatives.

And unlike many tech focused company’s, Dale said that artificial intelligence systems are supporting the stock’s performance.

“The sustained focus on cost discipline and the deployment of AI-enhanced productivity tools supported margin expansion across both the Cash App and Square business units,” he noted.

Summarising his bullish outlook on Block shares, Dale concluded:

With the company executing towards its upgraded guidance and maintaining steady growth in gross sales, its medium-term earnings trajectory and improving product launch velocity paints a bullish picture.

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

Block reported its first-quarter (Q1 2026) results on 8 May.

Highlights include net quarterly revenue of US$6.06 billion, with the company achieving a gross profit of US$2.91 billion, up 27% from Q1 2025.

However, impacted by US$852 million in restructuring and legal costs, Block reported a Q1 operating loss of US$172 million.

Following the strong first-quarter performance, the company increased its full calendar year 2026 gross profit guidance to US$12.33 billion, up 19% from 2015. Block expects to achieve a full-year adjusted operating income margin of 27%.

As for the AI-enhanced productivity tools that Dale mentioned above, Block CEO Jack Dorsey said, “We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers.”

Dorsey noted:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers.

Block shares closed up 4.8% on the day of the results release.

The post Why Afterpay owner Block shares are looking undervalued appeared first on The Motley Fool Australia.

More reading

• Why these ASX tech stocks could be no-brainer buys
• Here are the top 10 ASX 200 shares today
• Why Block, News Corp, REA Group, and TechnologyOne shares are storming higher today
• Why QBE, Block and Macquarie shares are grabbing headlines on Friday
• Afterpay and Square owner Block shares jump 6% on strong results

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 Block. 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.

Term deposits are looking more attractive than they have for a long time.

With interest rates rising, investors can now earn a respectable return from cash without taking on share market risk. For income investors with a low risk tolerance, I think term deposits can make a lot of sense.

But they are not the only option.

For investors who can handle some risk, ASX income stocks may offer something more powerful: attractive dividends plus the potential for capital growth.

That is important when inflation is high. A term deposit may help preserve purchasing power, but it is unlikely to grow wealth meaningfully after inflation and tax. Quality dividend shares can offer income today and the chance of a higher portfolio value over time.

Three ASX income stocks I would consider are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the first ASX income stocks I would look at.

The telecommunications giant provides mobile, broadband, and network services that remain essential for households and businesses.

I like this defensive quality. Even when consumers are under pressure, most people will not cancel their mobile phone or internet connection. That gives Telstra a more resilient earnings base than many cyclical businesses.

The other attraction is its dividend profile.

Telstra has been working through a long period of simplification and network investment, and I think the business now looks better placed to deliver steady income growth for shareholders.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is another income option I like.

This property group owns convenience-based assets such as neighbourhood retail, large format retail, and health and services properties.

That mix is attractive to me because many of its tenants are linked to everyday needs rather than luxury spending.

The portfolio includes exposure to supermarkets, pharmacies, healthcare services, pet supplies, and other essential or regular-use categories. This can support rental income even when household budgets are stretched.

There are risks. REITs can be sensitive to interest rates, debt costs, and property valuations. But if rates eventually stabilise and demand for convenience-based retail property remains solid, I think the income and capital growth potential could be strong.

BWP Group (ASX: BWP)

BWP Group is another ASX income stock that could appeal to investors looking beyond term deposits.

It owns a portfolio of large-format retail properties, with a strong connection to Bunnings Warehouse sites.

That gives it exposure to a tenant base and property type that has historically been attractive for income investors.

I like the simplicity of the model. BWP owns properties and collects rent from tenants, with the aim of turning that rental income into distributions for investors.

The link to large-format retail can also provide some inflation protection if leases include rental increases over time.

BWP is also not risk-free. Property values can move, interest rates can affect sentiment, and tenant concentration needs to be considered. But for income investors willing to take on some market risk, I think it remains a quality ASX property income option.

Foolish takeaway

Term deposits are a good choice for investors who want certainty and have little tolerance for share market volatility.

But for those who can accept some ups and downs, ASX income stocks may offer a stronger long-term outcome.

Telstra, HomeCo Daily Needs REIT, and BWP Group all provide income potential from different parts of the market. They also offer something term deposits cannot: the chance for capital growth over time.

The post Why these ASX income stocks could be better than term deposits appeared first on The Motley Fool Australia.

More reading

• 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• How to generate $20,000 a year in passive income on the ASX
• How to build a passive income stream with ASX shares
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• CGT tax changes may encourage investors into ASX dividend shares: Expert

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX shares could have the potential to deliver significant returns according to analysts.

Brokers are always on the lookout for opportunities that could be substantially undervalued.

We’re going to look at two businesses that could be among the most compelling ideas right now, if analysts end up being right. But, price targets are not guarantees that positive returns will become reality.

Siteminder Ltd (ASX: SDR)

This ASX tech share provides software to hotels to help them operate and generate revenue.

Siteminder has generated significant revenue growth in the last few years and it continues to do so. Analysts have put exciting price targets on the business, which suggest it could deliver great returns in the year ahead.

According to CMC Invest, of 11 recent analyst ratings, the average price target is $5.99, implying a possible rise of 111% from the current level, at the time of writing.

The company is rolling out its smart platform to subscribers, who may see a significant rise in revenue and efficiencies if they sign up for certain tools, while Siteminder gains significantly more revenue.

In the FY26 half-year result, Siteminder said channels plus grew to around 7,000 hotels, with ongoing progress in inventory optimisation and expanding distribution use cases. Dynamic revenue plus saw accelerating adoption, with over 20,000 rooms now under management, while the smart distribution program “broadened its impact across distribution partners”.

On top of all of the above, along with its normal organic client wins, it saw annualised recurring revenue (ARR) grow 29.7% to $280.3 million.

The business is also seeing rising profit margins, which bodes very well for the future, in my view.

Xero Ltd (ASX: XRO)

Another ASX share I’ll highlight is Xero, an accounting software and business operations company.

It recently announced its FY26 half-year result, which included a 27% decline of net profit partly due to Melio acquisition costs.

Other metrics were positive, including 31% operating revenue growth, 37% annualised monthly recurring revenue (AMRR) growth and 24% growth of operating profit (EBITDA).

The ASX share is investing heavily in AI features for subscribers, which could be key for maintaining and winning additional customers to its subscriber base.

While it may take some time for Melio to be embedded into the business, it could be essential if Xero is to succeed in the US.

According to CMC Invest, there have been nine recent ratings on the business, with an average price target of $124.52. That implies a possible rise of around 60% within the next year, at the time of writing.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• How to generate $20,000 a year in passive income on the ASX
• What on earth’s going on with Xero shares?
• Could Xero shares really go that high? 3 brokers weigh in
• Top brokers name 3 ASX shares to buy next week
• 3 excellent ASX ETFs to buy and hold for 10 years

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

Last week was a tough week for GrainCorp Ltd (ASX: GNC) shares.

The agribusiness and grain handling giant saw its shares crash on Thursday following the release of its half-year results, extending its year-to-date decline.

The stock now sits well below where it traded this time last year.

So what went wrong, and is the damage done?

What the numbers showed

GrainCorp reported underlying EBITDA of $136 million for the six months to 31 March 2026, down 33% from $202 million in the prior corresponding period.

Underlying net profit after tax fell 52% to $33 million, while reported NPAT collapsed to just $5 million.

The Agribusiness division saw EBITDA drop 26% to $104 million, reflecting weaker conditions on Australia’s east coast.

Total grain handled came in at 26.5 million tonnes, down from 29.5 million tonnes a year ago, as a lower carry-in position and reduced grower selling activity weighed heavily on volumes and pushed export margins to multi-year lows.

The Nutrition and Energy segment also disappointed, with a $12 million EBITDA timing impact from derivative mark-to-markets dragging on the result, though management expects that to unwind in the second half.

What management said

GrainCorp CEO Robert Spurway did not sugarcoat the result.

He said:

GrainCorp’s 1H26 result reflects a disciplined performance in a challenging global grain market. Oversupply of grain and associated low pricing have compressed margins across the supply chain and reduced grower selling activity, limiting available volumes and increasing competition for grain brought to market. Against this backdrop, we are tightly focused on cost management, capital discipline and portfolio optimisation.

On a more positive note, Spurway confirmed minimal impact from the Middle East conflict, stating:

We have experienced minimal impact from the Middle East conflict to date, with our supply chain continuing to operate as normal.

What brokers think

Neither Bell Potter nor Morgans saw the result as a buying opportunity.

Bell Potter retained its hold rating and cut its price target to $5.90 from $6.80, warning that global production forecasts for 2026/27 remain elevated at around 2% above the five-year average, suggesting grain trading margins will stay tight.

Morgans also downgraded GrainCorp to a hold with a $5.62 price target, noting:

GNC’s 1H26 result was weak but broadly in line with consensus at the NPAT level. The era of special dividends now appears to be over.

Is there any good news?

GrainCorp reaffirmed its FY2026 earnings guidance of underlying EBITDA between $200 million and $240 million and underlying NPAT between $20 million and $50 million, implying a significantly stronger second half.

The board also declared a fully franked interim ordinary dividend of 14 cents per share, payable on 16 July 2026.

The balance sheet remains solid, with a core cash position of $163 million and an ongoing share buyback program that has deployed $38 million of its $75 million authorisation to date.

Weather across east coast Australia has been broadly supportive for the upcoming winter crop, with favourable soil moisture conditions across Victoria and southern New South Wales.

Foolish takeaway

GrainCorp is a cyclical business and this is clearly a down cycle.

With global grain oversupply showing little sign of easing and both major brokers sitting on hold ratings, investors may want to be patient.

However, patient investors with a contrarian mindset may see value at current prices for Graincorp shares.

The post Why GrainCorp shares sank 15% last week and what it means for investors appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares
• 5 ASX shares downgraded by brokers this week
• Down 30%: Is this ASX 200 stock a buy after its crash?
• 5 things to watch on the ASX 200 on Friday
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today

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 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 Technology One Ltd (ASX: TNE) share price is in focus after Australia’s largest SaaS ERP company delivered its 17th consecutive record first-half profit, with annual recurring revenue (ARR) jumping 17% and profit before tax up 9% for the half year ended 31 March 2026.

What did Technology One report?

• Profit before tax of $89.1 million, up 9% year-on-year
• Profit after tax of $66.8 million, up 6%
• Annual recurring revenue (ARR) of $598.0 million, up 17%
• Net revenue retention of 114%
• Record interim dividend of 8.0 cents per share, up 21%
• SaaS and recurring revenue of $299.2 million, up 13%

What else do investors need to know?

Technology One’s results reflect the strong momentum behind its SaaS+ strategy and recently launched AI products. The company saw significant growth in the UK (ARR up 23%) and strong wins across local government and education sectors, including major contracts with prominent Australian councils and universities.

Investment in research and development (R&D) increased 22% to $84.1 million, representing 26% of total income, as Technology One continues to innovate in AI and expand its product suite. Cash and investments rose 16% to $245.5 million, underpinning the company’s ongoing investment capability with no debt on the balance sheet.

What did Technology One management say?

Technology One CEO and Managing Director Ed Chung said:

There is huge momentum and confidence in the business today, in our strategy of SaaS+, which is fuelling the results we delivered today, and allows us to continue to invest into the future. Now with our AI strategy, the adoption of AI and the feedback we are receiving is surpassing our expectations. All of this also gives us confidence in our pipeline and we don’t guide up unless we see it day in and day out.

What’s next for Technology One?

The company reaffirmed upgraded FY26 guidance, targeting 18–20% profit growth and 16–18% ARR growth for the full year, with a goal of $1 billion+ ARR by FY30. Management confirmed guidance includes all current investments, such as AI, SaaS+ and new initiatives like Showcase.

With its transition to SaaS+ and continued rollout of next-generation AI ERP products, Technology One expects improved margins and sustained double-digit growth, focusing on expanding in both domestic and overseas markets, particularly local government and higher education.

Technology One share price snapshot

Over the past 12 months, Technology One shares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period. 

View Original Announcement

The post Technology One posts 17th consecutive record first-half profit, AI drives FY26 guidance appeared first on The Motley Fool Australia.

More reading

• Contact Energy reports April 2026 earnings
• 5 things to watch on the ASX 200 on Tuesday
• Why is the ASX 200 starting at a 7-week low today?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares

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 positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One. 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.

Exchange traded funds (ETFs) can be a simple way to invest in powerful global trends.

Instead of trying to choose the winning company in a fast-moving sector, investors can use ETFs to spread their money across a group of businesses operating in the same space.

Here are three ASX ETFs for smart investors to take a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the Betashares Global Cybersecurity ETF.

Cybersecurity has become one of the non-negotiable costs of doing business. Every company with customer data, cloud systems, online payments, or remote workers needs protection.

That makes this a spending category that is unlikely to disappear, even when economic conditions become more uncertain.

The Betashares Global Cybersecurity ETF provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Zscaler (NASDAQ: ZS), Check Point Software Technologies (NASDAQ: CHKP), and Gen Digital (NASDAQ: GEN).

For investors wanting exposure to a technology theme with a clear real-world need, it could be an ETF to watch.

Global X Artificial Intelligence ETF (ASX: GXAI)

Another ASX ETF that could be worth looking at is the Global X Artificial Intelligence ETF.

Artificial intelligence is no longer just a story about chatbots or chip demand. It is becoming a layer of technology that can be built into software, healthcare, finance, manufacturing, logistics, and customer service.

The Global X Artificial Intelligence ETF gives investors access to companies that could benefit from the development and use of AI across different industries.

Its holdings include SK Hynix (NYSE: JNSB), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

This gives the fund exposure to the hardware that supports AI workloads, as well as the broader ecosystem developing around data processing and automation.

Overall, the Global X Artificial Intelligence ETF provides smart investors with a basket of companies positioned around one of the biggest technology shifts of the decade. It was recently recommended by analysts at Global X.

Global X Semiconductor ETF (ASX: SEMI)

A third ASX ETF worth considering is the Global X Semiconductor ETF.

Semiconductors sit underneath almost every major technology trend. Smartphones, electric vehicles, cloud computing, automation, gaming, defence systems, and artificial intelligence all need chips to function.

The Global X Semiconductor ETF provides exposure to global companies involved in semiconductor design, manufacturing, equipment, and related supply chains.

Its holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), ASML Holding (NASDAQ: ASML), and Qualcomm (NASDAQ: QCOM).

This gives investors access to different parts of the chip industry rather than relying on a single company or one part of the supply chain.

Demand can be cyclical, and the sector can be volatile. But over the long term, the world is becoming more chip-intensive. The Global X Semiconductor ETF offers a direct way to invest in that shift through the ASX. It was also recently recommended by the team at Global X.

The post Here are 3 ASX ETFs for smart investors to buy appeared first on The Motley Fool Australia.

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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 ASML, Advanced Micro Devices, BetaShares Global Cybersecurity ETF, Broadcom, Check Point Software Technologies, Qualcomm, Taiwan Semiconductor Manufacturing, and Zscaler. The Motley Fool Australia has recommended ASML and Advanced Micro Devices. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.