Tag: Stock pick

The ARB Corporation Ltd (ASX: ARB) share price is in focus after the company reported a 1.0% decline in sales to $358 million for the first half of FY2026, with profit before tax down 18.8% to $57.1 million.

What did ARB Corporation report?

• Sales revenue: $358.0 million, down 1.0% over 1H FY2025
• Reported profit before tax: $57.1 million, down 18.8%
• Underlying profit before tax (excl. non-operating items): down 16.3%
• Profit after tax: $42.2 million, down 17.2%
• Earnings per share: 50.6 cents, down 17.9%
• Interim dividend: 34 cents per share, fully franked

What else do investors need to know?

Sales to the Australian Aftermarket, which make up nearly 57% of ARB’s business, slipped 1.7% in a soft new vehicle market. However, export sales increased 8.8%, with standout growth of 26.1% into the US on the back of strategic partnerships and expanding product range.

Original Equipment Manufacturer (OEM) sales fell 38.2% after a build-up of inventory in the prior half and lower global new vehicle sales. Cash holdings at 31 December were $59.4 million, reflecting robust operating cash inflows but impacted by special dividend payments.

What’s next for ARB Corporation?

Management expects sales margins in the second half to be broadly in line with the last period, helped by hedging the company’s Thai baht exposure. While market conditions remain challenging in Australia due to tight new vehicle supply and ongoing skilled labour shortages, ARB’s order book remains healthy and investment in new stores and e-commerce continues.

Export growth is expected to continue, particularly in the US. OEM sales may recover modestly in the second half as inventory levels normalise. Overall, ARB expects 2H FY2026 financial performance to pick up compared to the first half, with a long-term focus on building scale in Australia and international markets.

ARB Corporation share price snapshot

Over the past 12 months, ARB shares have declined 44%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

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The post ARB Corporation: Profit drops, but US growth accelerates appeared first on The Motley Fool Australia.

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• Woodside Energy Group posts record 2025 production and maintains dividend
• Scentre Group lifts profits and distributions with busy Westfield redevelopments

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 ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Ingenia Communities Group (ASX: INA) share price is in focus as the company reaffirmed guidance at the top of its range and reported a first-half statutory profit of $97.4 million, up 11% year-on-year.

What did Ingenia Communities report?

• Revenue: $257.3 million (1H25: $256.9 million)
• EBIT: $85.0 million, down 1%
• Underlying profit: $62.1 million, underlying EPS 15.2c (down 10%)
• Statutory profit: $97.4 million, up 11%
• New homes settled: 248 in 1H26
• Half-year distribution: 4.8 cents per stapled security, payable 26 March 2026

What else do investors need to know?

Ingenia maintained a pronounced second-half skew, with accelerating development settlements expected to support results in the remainder of FY26. The business is targeting FY26 EBIT between $180.5 and $188.7 million, aiming for delivery at the top of this guidance range.

The Group invested $88 million during the half in development projects, new site acquisitions, and growth, including expanding its development pipeline through a new site in Townsville and progressing seven further sites in due diligence.

Both the residential (Living) and Holidays arms saw solid momentum. Lifestyle Rental EBIT rose 6% to $25.7 million, and Holidays EBIT improved 10% to $31.5 million, reflecting resilient demand, higher occupancy, and rate growth, despite higher costs in marketing and utilities.

What’s next for Ingenia Communities?

Management reaffirmed that the Group is on track to deliver FY26 results at the top of the guidance range, aided by a strong pipeline and increased activity expected in the second half. Two new communities, including the expanded Latitude One, should contribute to settlements and earnings in FY26.

Industry demand drivers—like an ageing population and the housing shortage—continue to support Ingenia’s outlook. The company currently has 440 deposits and contracts in place and is commencing new projects, setting up a strong runway for growth heading into FY27.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia Communities shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Ingenia Communities affirms top-end guidance after first-half results appeared first on The Motley Fool Australia.

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• Scentre Group lifts profits and distributions with busy Westfield redevelopments

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The financial power of compounding can lead to wonderful results for investors with ASX shares.

As Albert Einstein once supposedly said about compounding:

Compound interest is the most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.

When I think about which S&P/ASX 300 Index (ASX: XKO) shares could grow the revenue and earnings the most over the next decade, the two below are ones that come to mind. That’s why I’m invested in them.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading homewares and furniture company. It sells hundreds of thousands of products, with a large majority of those shipped directly by suppliers, leading to the ASX share having a capital-light model and being able to offer a huge array of products.

In its FY26 half-year result, the company recorded $376 million of revenue, up 20% year-over-year. In the trading update for the second half to 9 February 2026, revenue was up another 20%.

I think that the trading update was particularly pleasing because it shows how the business is still growing at a strong pace. However, the company’s margins were a little weaker, particularly because it’s investing in starting up sales to New Zealand.

While investors may not like seeing margins fall in the shorter-term, I believe it’s the right call in the long-term. It’s very useful for the business to grow market share and this can provide operating leverage benefits.

In FY26, it still expects its delivered margin and contribution margin to rise. In the long-term, the operating profit (EBITDA) margin could reach more than 15%.

I’m also excited to see the company’s home improvement segment is growing at a rapid pace – in HY26, revenue grew 47% to $30 million. It’s quickly becoming a notable contributor to the overall financials and could become an important part of the business.

Additionally, its good balance sheet (of $160 million of cash) will allow the business to fund a pleasing share buyback during this uncertain period.

I think Temple & Webster has a very promising future and it’s a top ASX share to buy today after its decline. It’s rapidly soaring towards its medium-term goal of $1 billion of sales.

TechnologyOne Ltd (ASX: TNE)

The enterprise resource planning (ERP) software business recently pushed back against some AI-related negativity with a strong update at its annual general meeting (AGM).

The company has a goal of growing revenue from its existing client base each year by 15%, which means it doubles in size in five years. It’s managing to do that by selling more software modules to clients and investing around a quarter of its revenue into research and development R&D) in improving its software.

In the annual general meeting AGM update, the ASX share upgraded its guidance for both annual recurring revenue (ARR) and profit before tax (PBT). It said that ARR is now expected to grow by between 16% to 18% and PBT is projected to grow by between 18% to 20% in FY26.

While AI is certainly a legitimate worry, I think the update shows that businesses which could theoretically be affected can still very much succeed during this period. In-fact, TechnologyOne was even able to reveal promising progress on its own AI initiatives, including its AI showcase product launches.

If it continues growing revenue by more than 15% per year, it has a very promising future, with $1 billion by FY30 its current ARR goal.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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

City Chic Collective Ltd (ASX: CCX) has released its FY26 first-half results for the 6 months ended 28 December 2025 today.

In early morning trade, the City Chic share price is up 4.55% to 11.5 cents. Even with today’s gain, the stock remains down about 12% over the past month.

Let’s take a closer look at what the company reported.

Earnings rise as revenue holds steady

City Chic reported total revenue of $69.2 million for the half. This was down 0.4% compared with the prior corresponding period.

While sales were slightly lower, profitability improved. Underlying EBITDA came in at $6.5 million, up 86% on the prior period. The result reflects tighter cost control and improved gross margins.

Trading gross margin increased by 220 basis points to 62.2%. The company said this was supported by better product mix and more disciplined promotional activity.

Statutory net profit after tax (NPAT) remained a loss at $3.5 million. However, this was an improvement on the previous year.

Active customers across the group totalled about 503,000, broadly steady compared with the prior period.

ANZ grows while US sales fall

Performance differed across City Chic’s regions.

In Australia and New Zealand, revenue rose 7.4% compared with the prior period. The company pointed to stronger full price sales and disciplined trading through key promotional periods.

In the United States, revenue fell 31.7%. Management said this was due to a deliberate reduction in inventory in response to tariff related uncertainty and a focus on improving long-term profitability. Lower fresh inventory had the biggest impact on partner sales, which depend on new product launches.

Overall inventory was down almost 10% compared with June 2025 and more than 20% compared with the prior period.

Online sales were stable, while partner sales were weaker due to the inventory strategy.

Cash position improves

City Chic ended the half with net cash of $5.4 million. This was up 84% from June 2025.

During the period, the company repaid $5 million in borrowings. A $10 million debt facility remains in place and undrawn. The facility has been extended to 31 March 2028.

The board did not declare a dividend for the half. The company said it remains focused on restoring sustainable and profitable growth.

Early positive signs from the second-half

The company also provided an update on recent trading.

In the first 8 weeks of the second-half, ANZ revenue was up 9% compared with the prior period. Gross margin dollars in ANZ increased 17% over the same timeframe.

In the United States, new product has been ordered ahead of a planned fourth quarter relaunch. The company is also expanding its marketplace presence and adjusting its operating model to support long term profitability.

City Chic said it remains focused on disciplined cost management, inventory control and improving margins as it works to deliver sustainable earnings growth.

The post City Chic shares lift after first-half FY26 results appeared first on The Motley Fool Australia.

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• 2 top ASX shares to buy and hold for the next decade

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.

Steadfast Group Ltd (ASX: SDF) shares are under pressure on Tuesday.

In morning trade, the ASX 200 stock is down 1.5% to $4.37.

Why is this ASX 200 stock falling?

Investors have been hitting the sell button today after the insurance broker network company revealed that its long-serving founder-CEO, Robert Kelly AM, is stepping down.

Mr Kelly co-founded Steadfast in 1996 and led the company’s listing on the ASX in August 2013.

It notes that under his stewardship, Steadfast has transformed into Australasia’s largest general insurance broker network and group of underwriting agencies and expanded internationally.

According to the release, the leadership transition plan agreed by the board and Mr Kelly follows succession planning discussions which have been underway for some time and are designed to enable a smooth change of leadership.

The ASX 200 stock’s chair, Ms Vicki Allen, revealed that its search process for a replacement is progressing. She also advised that the Board has confidence in the capability and experience of Steadfast’s executive leadership team. As a result, internal candidates are being considered alongside external candidates as part of a thorough process.

As things stand, the Steadfast board expects to announce the appointment of its new CEO by the release of its FY 2026 results in August.

What’s next?

Importantly, this won’t necessarily be the end of Robert Kelly AM’s involvement with Steadfast.

The release notes that he will remain on the board after his retirement and transition to a non-executive director role.

The ASX 200 stock advised that it feels continuity of industry relationships and an orderly transition is in the interests of all shareholders. Mr Kelly will seek election as a non-executive director at the next annual general meeting.

Commenting on his exit, Robert Kelly AM said:

It has been a privilege to play a leadership role in the creation of Steadfast. I am extremely proud of the achievements of the Company; its strong track record clearly demonstrates the strength of the business model and positions the business to deliver sustainable value to our shareholders for many years to come.

Ms Vicki Allen adds:

In initiating and agreeing this transition plan with the Board, Robert has demonstrated his strong commitment and service to Steadfast. Robert’s contribution cannot be understated. His leadership has enabled Steadfast to grow into Australasia’s largest general insurance broker network and group of underwriting agencies with a strong track record of growth.

This comes at an unfortunate time for the company, with Steadfast shares recently sinking amid concerns that its business model could be disrupted and ultimately made redundant by artificial intelligence models.

The post Guess which ASX 200 stock is dropping on founder-CEO exit news 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 Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

All Ordinaries (ASX: XAO), or ASX All Ords, stocks may not get as much attention as larger businesses on the ASX. But, I view them as more likely to have strong growth potential.

It’s usually a lot easier growing a $500 million business into a $1 billion business than going from $50 billion to $100 billion.

The two businesses I want to highlight are both among the leaders in Australia at what they do and have plans for more long-term earnings growth.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting has a national store network that sells lighting to consumers. It also has a commercial segment and an international segment.

There were a few positives from the recent FY26 half-year result. Total sales rose by 3.2%, company store comparative sales increased by 0.4%, international sales increased 13.5% and trade sales grew 12.6%.

However, operating expenses increased by 4.3% and this meant operating profit (EBIT) declined 5.5% and net profit dropped 6%.

I think there is a strong outlook for the company, with a possible increase from 130 stores at the end of HY26 to up to 217 stores over the long-term. The ASX All Ords stock continues to grow its commercial sales and market share.

If international sales continue to grow faster than total sales, then that segment will become a larger and more influential segment of the business. The rest of the world is a large addressable market, so there is a long growth runway here.

In five years, I’m expecting the business to be a materially large and more profitable business. It could be smart to invest while economic conditions and investor confidence are low.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia. It has a very defensive set of earnings because, sadly, there is a certain level of demand for its services each year. It’s a morbid idea, but it provides an essential service.

Death volumes are expected to slowly but steadily rise over the next decade because of Australia’s ageing and growing population, giving the ASX All Ords stock a useful tailwind.

Additionally, its average revenue per funeral is growing at roughly the speed of inflation over the years. Again, that’s not an incredibly strong growth rate but it provides a decent growth boost for revenue.

A growing number of funerals combined with the average funeral delivering more revenue, should lead to a rising top line. Added to that, the business is occasionally making bolt-on acquisitions to boost its market share, geographic spread and scale.

In five years, I believe the business will be making more revenue, have a larger market share, generate more profit and pay a larger dividend. After dropping 10% in the last year, at the time of writing, I think this could be the right time to invest at the current Propel share price.

The post 2 excellent ASX All Ords stocks I’d buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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 Viva Energy Group Ltd (ASX: VEA) share price is in focus today after the company reported a 33% lift in second-half EBITDA to $396 million, with the highest ever Commercial & Industrial sales volumes and a fully franked final dividend of 3.94 cents per share declared.

What did Viva Energy Group report?

• Full year FY25 EBITDA (replacement cost) of $700.9 million, down 6.4% from FY24
• NPAT (replacement cost) fell 27.8% to $183.6 million
• Commercial & Industrial EBITDA of $460.5 million, near record levels
• Convenience & Mobility EBITDA of $197.4 million, following a strong second half
• Fully franked final dividend of 3.94 cents per share, with total dividends for FY25 at 6.77 cps
• Net debt increased to $2,074.8 million (vs $1,793.5 million at FY24)

What else do investors need to know?

Viva Energy completed its full acquisition of Liberty Convenience and opened 35 new OTR stores in 2025, expanding its retail footprint. The Group also upgraded its systems, implementing a new ERP platform to simplify operations and exit legacy Coles arrangements.

Operationally, the Geelong refinery benefited from the successful commissioning of the Ultra Low Sulphur Gasoline plant ahead of new regulatory requirements. During the year, the company refinanced its revolving credit facility, boosting liquidity.

What did Viva Energy Group management say?

CEO and Managing Director Scott Wyatt said:

I am pleased with the progress we have made on our strategic agenda and the results we delivered in the second half of the year of 2025. Earnings in this period were substantially up on both the first half and the same period last year. This reflected improved market conditions, the continued strength of our Commercial businesses, stronger refining margins in the 4QFY25, improved retail fuel margins, and a strengthening Convenience business as integration and consolidation progressed.

What’s next for Viva Energy Group?

Looking ahead, Viva Energy plans to complete its retail integration in FY26, targeting 40–60 new OTR store openings and improved supply chain efficiencies by exiting Coles product arrangements. With minor refinery maintenance planned and a shift to a more stable operational phase, the company expects to reduce its net debt-to-EBITDA ratio towards 2x by the end of 2027.

Management is also optimistic about sales and earnings momentum in FY26, supported by ongoing investment in its convenience, commercial and refinery businesses, and further benefits from recent integration.

Viva Energy Group share price snapshot

Over the past 12 months, the Viva Energy shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Viva Energy Group FY25 earnings: Higher second-half profit and dividend declared appeared first on The Motley Fool Australia.

More reading

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• Scentre Group lifts profits and distributions with busy Westfield redevelopments

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.

If you have room in your portfolio for some new additions, then the ASX All Ords stock in this article could be worth considering.

That’s because Bell Potter is bullish and is predicting strong returns for investors over the next 12 months.

Which ASX All Ords stock?

The stock in question is IPD Group Ltd (ASX: IPG). It is a leading Australian distributor of electrical equipment and industrial digital technologies operating nine distribution centres and servicing 4,200+ customers nationally.

Bell Potter notes that the company supplies products used in buildings, infrastructure, and process sectors that help to reduce energy use and reliance on the transmission network.

Bell Potter notes that the ASX All Ords stock delivered a half-year result that was slightly ahead of expectations. It said:

Revenue of $193m (BPe $188m), up 9% YoY, with 11% YoY growth delivered at the core IPD business, 2% YoY at CMI and 55% at Ex Engineering. Pleasingly, Data Centre revenue was 16% higher YoY to $32.8m (growth would have been 25% if a large order did not slip into early CY26). GM of 33.3% was broadly in line with our estimate, down from 35.2% in the PcP, as a greater volume of competitively won projects were delivered.

Opex as a % of revenue of 20.2% declined on the PcP (22.1%) and was in line with our estimate. As a result, EBITDA margin of 13.2% was consistent with our forecast and the PcP. Underlying EBITDA of $25.4m and EBIT of $21.7m were 2% ahead of expectations and were above the top-end of the company’s 1H FY26 guidance ranges. Underlying NPAT of $14.4m (BPe $14.3m) grew 8% YoY. A fully franked interim dividend of 6.8cps was declared (BPe 6.7cps).

The even better news is that its outlook commentary was positive and the second half has started strongly. The broker adds:

FY26 outlook comments include: 1) The strong momentum observed across the Group in 1H continued through to Feb’26, including at the recently acquired Platinum Cables business; and 2) IPG enters 2H with a healthy orderbook and a strong qualified opportunity pipeline to support sustainable earnings growth in the short-term.

Potential market-beating returns

According to the note, Bell Potter has reaffirmed its buy rating and $5.30 price target on the ASX All Ords stock.

Based on its current share price of $4.65, this implies potential upside of 14% for investors over the next 12 months.

In addition, the broker is expecting a 3.2% dividend yield over the period, which boosts the total potential return beyond 17%.

Commenting on its positive view of the stock, the broker said:

IPG is well positioned to capitalise on the Commercial construction market recovery currently underway and ongoing positive momentum in Data Centre and Infrastructure construction activity. IPG represents a relatively undervalued Industrials investment compared with the ASX300 Industrials index. Our $5.30/sh Target Price implies a NTM PE of 16.1x, a 22% discount to the Industrial Services peer group despite sharing a consistent NTM EPS growth outlook (16.6% IPG vs 17.5% peer group).

The post Why Bell Potter is bullish on this ASX All Ords stock appeared first on The Motley Fool Australia.

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• ARB Corporation: Profit drops, but US growth accelerates
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• 2 top ASX shares to buy and hold for the next decade

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares could be a great way to gain exposure to the counter-drone market.

That’s the view of analysts at Bell Potter, which remain positive on this ASX stock.

What is the broker saying?

Bell Potter notes that EOS released its FY 2025 results on Monday and delivered a mixed set of numbers. It said:

EOS reported a -27% YoY revenue decline to $128.5m above BPe of $126.6m, driven by -30% YoY decline in Defence (BPe -30%) and +17% YoY growth in Space (BPe -10%). EBIT was -$53m (-15% miss vs. BPe). CY26 gross margin was 63% (BPe 55%) reflecting finalisation of Middle East contract in 1H25 and stronger than expected 2H26 margin of 57%.

Looking ahead, Bell Potter was pleased to see that management is positive on its outlook. One slight disappointment, though, is that the deposit for the controversial US$80 million High Energy Laser Weapon (HELW) Korean contract has yet to be received. However, it is hopeful this will be settled next month, which should put an end to short seller concerns. It adds:

EOS says that market conditions remain supportive. The initial deposit and letter of credit has yet to be received for the US$80m High Energy Laser Weapon (HELW) Korean contract. EOS believes this could be concluded in March 2026. EOS has provided a detailed view of the sales opportunities, including: German and UAE HELW product demonstrations (potential 2027 order); next-gen RWS demonstration (+$500m) in the Middle East; and US Army follow-on Slinger opportunities. We view the German HELW demonstration as an important development given the potential size of this market and in the context of increased government scrutiny on the costs of the Rheinmetall/MBDA HELW Joint Venture.

Should you buy this ASX counter-drone stock?

According to the note, the broker has retained its buy rating on EOS shares with a reduced price target of $9.70 (from $12.00).

Based on its current share price of $7.75, this implies potential upside of 25% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We retain our Buy rating and lower our TP to $9.70 on lower CY27e earnings. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards.

The post Bell Potter says this ASX counter-drone stock could rise 25% 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 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.

These 2 ASX shares have been under severe pressure lately. CSL Ltd (ASX: CSL) has lost 43% in value over 12 months, while REA Group Ltd (ASX: REA) hasn’t fared much better with a 33% loss in the same period.

It’s not often investors get the chance to pick up two premium ASX shares at such a steep discount.

CSL: deep moat in life-saving medicines

CSL still sits among the world’s biotech heavyweights with a deep moat built on plasma-derived therapies, vaccines, and specialty treatments. Its global scale and entrenched position in life-saving medicines give it powerful pricing power and recurring revenue streams in markets that are hard for newcomers to crack.

Massive investment in R&D and strategic partnerships continues to feed its long-term pipeline, while diversified units like Behring, Seqirus, and Vifor spread risk across therapeutic areas.

But it’s not all smooth sailing for the ASX biotech share. Recent half-year results disappointed with earnings declines and leadership turmoil dragging sentiment. Competitive pressures, particularly in haemophilia and vaccines, also highlight execution risks.

Concentrated manufacturing capacity and dependence on plasma supply add operational vulnerabilities, and regulatory shifts or reimbursement changes can hit hard. Premium valuation also means the ASX share is sensitive to expectations.

Despite short-term volatility, there’s a value case emerging. The stock has pulled back sharply from peak levels, and management is leaning into cost discipline, buybacks, and refocusing on core strengths.

Ageing populations and rising chronic diseases are long-term tailwinds for plasma therapies and specialist medicines. After the recent share price reset, investors may have a rare chance to buy a world-class biotech at a more reasonable valuation.

If second-half earnings stabilise and growth catalysts return, sentiment could turn quickly.

Morgans recently retained a buy recommendation. However, it did trim forecasts and lowered its price target to $241.34, which still represents a massive 64% upside from current levels.

REA Group: market leader with sticky revenue

In digital real estate, scale wins. REA has it in spades. This ASX share owns realestate.com.au, Australia’s dominant online property marketplace. It also has realcommercial.com.au, PropTrack, flatmates.com.au, Mortgage Choice, and Indian and US real estate portal businesses.

The business generates powerful cash flow and consistently flexes its pricing power. Agents pay up for depth products, premium listings, and data insights because that’s where the buyers are. Even when listings soften, the ASX share has historically lifted yield per listing to keep revenue climbing.

The latest quarterly numbers reinforced the point: revenue and EBITDA rose, driven more by smarter pricing and product mix than raw volume. That’s what quality platforms do. REA’s moat is obvious, market leadership, network effects, and sticky, recurring agent services.

The ASX share has come under pressure as listing volumes softened, market sentiment turned cautious, and AI disruption fears crept in. But its grip on Australian online property advertising hasn’t loosened.

The company still commands pricing power, strong brand equity, and high-margin digital economics.

For long-term investors, a 33% pullback in a category leader doesn’t automatically signal trouble. It can signal opportunity. Most brokers seem to think so.

Following the half-year results, Bell Potter has maintained its buy rating on the ASX share but trimmed its price target to $211.00 from $244.00. With the shares currently trading at $159.02, that implies potential upside of nearly 33% over the next 12 months.

The post 2 ASX shares to buy today with $10,000 appeared first on The Motley Fool Australia.

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