Tag: Stock pick

There are a lot of ASX dividend shares to choose from on the Australian share market.

But which ones could be buys for passive income? Let’s take a look at two that analysts at Bell Potter are bullish on right now:

Harvey Norman Holdings Ltd (ASX: HVN)

This leading household goods retailer could be an ASX dividend share to buy according to the broker.

It likes Harvey Norman due to its attractive valuation, global property portfolio, and good yield. It said:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

The broker expects this to underpin fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $6.28, this would mean dividend yields of 4.9% and 5.6%, respectively.

Bell Potter has a buy rating and $8.30 price target on its shares.

Rural Funds Group (ASX: RFF)

The broker also believes that Rural Funds could be an ASX dividend share to buy for passive income.

Rural Funds is an Australian agricultural property company with over 60 assets across five sectors. This includes vineyards, orchards, and cattle farms.

It currently boasts a weighted average lease expiry (WALE) of almost 14 years, which gives it great visibility on its future earnings and distributions. Despite this, Rural Funds’ shares are trading at a deep discount to their net asset value (NAV). Bell Potter said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

The broker is expecting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $2.12, this would mean dividend yields of 5.5% for both years.

Bell Potter currently has a buy rating and $2.50 price target on its shares.

The post 2 ASX dividend shares to buy for passive income appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy with $5,000
• Analysts say these ASX dividend shares are buys for income investors
• Which ASX 200 retail stock looks stronger: JB Hi-Fi or Harvey Norman?
• 3 top ASX dividend shares for income investors to buy now
• 3 defensive ASX dividend shares that analysts are tipping as top buys

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

These three ASX ETFs provide a relatively low-cost, diversified way to tap into China’s long-term growth story.

China’s economy remains the world’s second largest. And despite a choppy few years, it continues to grow at a pace that outstrips most developed markets. Policymakers are targeting consumption, advanced manufacturing, renewable energy and technology as the next engines of expansion.

For ASX investors wanting exposure to China without picking individual stocks, these three low-cost ASX ETFs offer a simple entry point.

iShares China Large-Cap ETF (ASX: IZZ)

This fund tracks the FTSE China 50 Index and provides exposure to 50 of the largest Chinese companies. Most of them are listed in Hong Kong.

Major holdings typically include Tencent Holdings Ltd (HKEX: 700), Alibaba Group Holding Ltd (HKEX: 9988) and China Construction Bank Corp. (SSE: 601939). These are dominant players in technology, e-commerce, financial services and consumer platforms.

The strength of IZZ lies in its focus on established giants that sit at the heart of China’s corporate landscape. Investors gain diversified exposure to market leaders with strong balance sheets and deep competitive advantages.

The flip side is concentration risk. Large technology and financial stocks can dominate returns, and regulatory crackdowns or geopolitical tensions can hit these names hard. Reporting standards and government influence also remain ongoing risks.

VanEck China New Economy ETF (ASX: CNEW)

This ASX ETF targets companies positioned to benefit from China’s shift toward innovation, healthcare, consumer brands and advanced technology.

Instead of old-economy state-owned banks and energy firms, investors gain access to areas such as biotech, electric vehicles, online services and premium consumer goods.

Holdings have included companies like BYD Company Ltd (SZSE: 002594), Contemporary Amperex Technology Co. (HKEX: 3750) and healthcare and technology innovators.

The key appeal of this ASX ETF is its alignment with structural growth themes. As China’s middle class expands and domestic consumption rises, these sectors could outpace traditional industries.

However, growth stocks can be volatile. Earnings expectations are often high, and policy changes affecting data security, gaming, education or healthcare can quickly dent valuations.

VanEck FTSE China A50 ETF (ASX: CETF)

A third fund worth a look is the VanEck FTSE China A50 ETF. This ASX ETF tracks the FTSE China A50 Index and invests in 50 of the largest companies listed on mainland exchanges in Shanghai and Shenzhen.

That means direct exposure to so-called A-shares. Top holdings commonly include Kweichow Moutai Co. Ltd (SSE: 600519), China Merchants Bank Co. Ltd (HKEX: 3968) and leading industrial or renewable energy names.

The advantage of CETF is its closer link to China’s domestic economy. A-shares often capture companies more focused on internal demand rather than offshore listings. This can provide diversification relative to Hong Kong-listed giants.

The risk, however, lies in sensitivity to domestic policy settings and liquidity conditions. Mainland markets can be more volatile, and foreign investor access rules can evolve over time.

Foolish Takeaway

All these ASX ETFs give investors the opportunity to enter China’s long-term growth story. Yet investors must factor in currency movements, regulatory shifts and geopolitical tensions before diving in.

For those comfortable with the risks, adding measured China exposure through an ASX-listed ETF could offer meaningful diversification and growth potential over the long haul.

The post 3 ASX ETFs to target China’s long-term growth appeared first on The Motley Fool Australia.

More reading

• 3 top ASX ETFs to buy and hold in an SMSF
• 3 exciting ASX ETFs to buy with $3,000 this month
• 3 ASX ETFs to buy and hold for 25 years
• 3 of the best ASX ETFs for Australian investors to buy now
• Should Aussie investors have exposure to Chinese equities in 2026? – Expert 

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in the red. The benchmark index fell 0.6% to 9,026 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 to rebound

The Australian share market looks set to rebound on Tuesday despite a poor start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 22 points or 0.25% higher. In late trade on Wall Street, the Dow Jones is down 1.7%, the S&P 500 is down 1.2%, and the Nasdaq is down 1.3%.

Oil prices slip

It could be a poor session for ASX 200 energy shares including Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.45% to US$66.18 a barrel and the Brent crude oil price is down 0.6% to US$71.35 a barrel. Traders were selling oil amid fresh US-Iran talks.

EOS shares named as a buy

The team at Bell Potter thinks Electro Optic Systems Holdings Ltd (ASX: EOS) shares are undervalued at current levels. This morning, in response to its results, the broker has retained its buy rating on the ASX defence stock with a reduced price target of $9.70. It said: “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.”

Gold price jumps

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price jumped overnight. According to CNBC, the gold futures price is up 3% to US$5,234.3 an ounce. This was driven by US tariff uncertainty.

Woodside results

Woodside Energy Group Ltd (ASX: WDS) shares will be on watch on Tuesday when the energy giant releases its full-year results. According to a note out of Macquarie, its analysts are expecting the company to report an underlying profit of US$2,693 million. This is expected to underpin a final dividend of 60 US cents per share.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Should you buy Digico, Magellan, and Ramelius shares?
• Metrics Master Income Trust reveals March 2026 unfranked distribution
• Why Clarity Pharmaceuticals, EOS, Nuix, and Reece shares are racing higher today
• Regis Resources lifts underground reserves at Tropicana Gold Mine

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

Guzman y Gomez Ltd (ASX: GYG) shares have been attracting plenty of broker attention over the past week. 

The fast food chain’s share price has slowly declined over the last 12 months, with international performance has dragging down sentiment despite positive domestic results. 

Last Friday, the company released its half-year result.

This included:

• Global network sales of $681.8 million, an increase of 18% on the prior corresponding period
• Revenue rose 23% to $261.2 million
• Underlying EBITDA increased 23.3% to $33 million
• Statutory net profit after tax (NPAT) of $10.6 million, up 44.9% from $7.3 million a year earlier.
• Underlying EBITDA for Australia increased 30% to $41.3 million
• An interim dividend per share of 7.4 cents. 

This sent investors running for the hills as Guzman y Gomez shares crashed 10% on Friday. 

During Friday’s trade, Guzman y Gomez shares hit an all-time low. 

Brokers quick to see upside

Following the company’s earnings results, experts were quick to point out the potential upside for Guzman y Gomez shares. 

In a note out of Macquarie, the broker reiterated its outperform rating, but trimmed its price target to $27.30. 

Yesterday, UBS also provided a positive outlook for the company. 

The broker has a price target of $21 on Guzman y Gomez shares. 

These targets indicate between 10% and 44% upside.

A consistent theme from analysts has been the conflicting success of the company in Australia compared to overseas.

Here in Australia, Guzman y Gomez is performing well, while results in the United States are lagging behind. 

That being said, the US quick service restaurant (QSR) market is the largest globally and therefore attractive, though execution risk is high.

Investors seemed to agree it was oversold last week, as Guzman y Gomez shares recovered more than 8% on Monday. 

It closed trading yesterday at $19.04. 

Morgans joins the party 

The team at Morgans have also weighed in on the future of the Mexican restaurant chain. 

Over the weekend, the broker said here in Australia, Guzman y Gomez continues to outperform the broader QSR industry both in terms of comp sales and network expansion. 

But it’s not just about Australia. GYG came to market with a strategy for global expansion that was breathtakingly ambitious. The first big opportunity was the US. Unfortunately, the pace of network expansion in the US so far has been pedestrian and the restaurants it has opened have lost more money than expected. 

It was a further step-up in US losses that disappointed investors most today and caused group EBITDA to fall 7% short of our forecast. We do believe global growth will click into gear at some point to complement a very healthy Australian business.

The broker has retained its buy recommendation on Guzman y Gomez shares, but trimmed its price target to $24.00. 

From yesterday’s closing price, that indicates an upside of 26%. 

GYG has a bit to prove, but we can be certain it is going to give it all it’s got to ultimately realise its growth ambitions.

The post Another broker puts a buy recommendation on Guzman y Gomez shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Why UBS just upgraded Guzman Y Gomez shares to a buy
• These are the 10 most shorted ASX shares
• Why Guzman Y Gomez, Inghams, Megaport, and Rio Tinto shares are tumbling today

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

Building wealth does not have to mean chasing speculative stocks or trying to time the market perfectly. In my opinion, it is usually about consistency, discipline, and unleashing the power of compounding.

If your goal was to build a $40,000 ASX share portfolio over five years, here is how I would think about it.

Focus on quality ASX shares

If I were building this portfolio, I’d focus on high-quality blue chip ASX shares with strong balance sheets, exposure to structural growth markets, and long runways. I’d also aim for a mix of sectors to reduce concentration risk.

For example, that might mean combining a major bank like Commonwealth Bank of Australia (ASX: CBA) or a diversified conglomerate like Wesfarmers Ltd (ASX: WES) with a leading healthcare name like ResMed Inc. (ASX: RMD) and a high-quality technology stock like Xero Ltd (ASX: XRO). You could also use a broad-based ASX exchange-traded fund (ETF) as a core holding and then add a few individual shares around it.

The goal is not to guess which stock will double next year. The goal is to own businesses that can grow earnings steadily and reinvest capital effectively over time.

Make it automatic

One of the best ways to remove emotion from investing is to automate it.

Investing every month regardless of headlines forces you to buy during both good and bad markets. When prices fall, your money buys more shares. When prices rise, your portfolio benefits from appreciation.

This approach, often called dollar-cost averaging, can smooth out volatility and reduce the temptation to try to time the market.

Reinvest dividends

If you are targeting strong annual returns, dividends can play a meaningful role.

Reinvesting dividends rather than spending them increases your compounding power. Over five years, that difference can be material, especially if you are consistently adding new capital each month.

Growing a $40,000 ASX share portfolio

Let’s assume you can invest $525 per month and you stay invested for five years.

At $525 per month, if your portfolio compounds at around 9% per year, those regular investments could grow to roughly $40,000 by the end of year five. 

But it is important to be realistic.

A 9% annual return is broadly in line with the long-term historical average of the Australian share market. But it is not guaranteed. Markets can deliver higher returns in some periods and lower, or even negative, returns in others.

Depending on how the market performs over those five years, you could reach $40,000 sooner than expected. Or it could take longer. Short-term volatility is part of investing.

The key is staying invested and sticking to the plan, provided your investment thesis for each holding remains intact.

Foolish takeaway

To build a $40,000 ASX share portfolio in five years, I would focus on three things: consistent monthly investing, high-quality shares, and patience.

At $525 per month and an average 9% return, the maths can work in your favour. But more important than the exact numbers is the habit. If you can commit to investing regularly and thinking long term, the results can take care of themselves over time.

The post How to build a $40,000 ASX share portfolio in 5 years appeared first on The Motley Fool Australia.

More reading

• Is Wesfarmers stock a post-earnings buy?
• How much could the CBA share price rise in the next year?
• Buy, hold, sell: Wesfarmers, Westpac, and Woolworths shares
• 4 reasons to buy Wesfarmers shares today
• 3 of the best Aussie stocks I would buy

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. 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.

The team at Ord Minnett has provided fresh guidance on ASX 200 companies CSL Ltd (ASX: CSL) and Macquarie Group Ltd (ASX: MQG). 

The investment services firm sees one as a clear buy, while the other, a hold. 

CSL shares endure a rough week

CSL shares have come under heavy scrutiny recently. 

Investors have been exiting their positions in the company following its half year earnings results.

As a result, CSL shares have now fallen 14% in 2026 and more than 40% over the last 12 months. 

A CEO exit and poor results have weighed heavily on sentiment. 

Ord Minnett said CSL’s first-half FY26 net profit fell short of market expectations, driven by weak revenue growth at its dominant Behring plasma products division that erased the benefits of better-than-expected revenue from its Seqirus vaccine and Vifor nephrology businesses. 

The soft result capped a horror couple of days for the beleaguered biotech – its shares slumped 4.6% after the result, taking its two-session slide since the bungled announcement of CEO Paul McKenzie’s exit to more than 9%.

The broker has maintained its hold recommendation on CSL shares. 

Post the result, we have cut our EPS estimates by 3.0%, 2.2% and 3.0% for FY26, FY27 and FY28, respectively, which, combined with currency effects, leading us to cut our target price to $198.00 from $217.00.  

Despite the apparent upside on offer, Ord Minnett said it will need more evidence of top-line growth and margin expansion before we can become more constructive on CSL.

CSL shares closed trading yesterday at $147.38. 

Plenty of upside for Macquarie shares

Meanwhile, Ord Minnett is more optimistic on Macquarie shares. 

The investment services firm has reiterated its buy recommendation and target price of $255.00 on Macquarie shares.

The company reported that net profit across three of its four divisions was substantially higher year-on-year in the December quarter, driven by strong performances in: 

• Macquarie Asset Management (including gains from divestments)
• Commodities and Global Markets (higher asset finance income)
• Macquarie Capital (asset realisations and private credit). 

Banking and Financial Services delivered only slight profit growth due to margin pressure, although its personal banking arm continued to gain market share, reaching about 7% of mortgages and 6% of household deposits. 

At current growth rates, Macquarie’s mortgage portfolio will reach $300 billion with three years, or circa 10% of outstanding home loans, which raises questions over capital levels. That growth rate would imply an additional $4 billion in regulatory capital at the common equity tier-one (CET1) level will be required.

Macquarie shares closed yesterday trading at $214.13. 

Based on the target from Ord Minnett, there is approximate upside of 19%. 

‍

The post Here’s Ord Minnett’s updated view on Macquarie and CSL shares appeared first on The Motley Fool Australia.

More reading

• Why I’d forget NAB shares and buy these top Aussie stocks
• If I had to build a defensive ASX share portfolio today, I’d start here
• Forget CSL shares, this ASX biotech stock could triple in value
• Qube reports record half-year result and higher dividend
• Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

Inghams Group Ltd (ASX: ING) shares have been making headlines over the past week after investors heavily sold the poultry producers shares following earnings results. 

Let’s quickly recap what happened. 

Share price tumbles on earnings results 

Inghams released interim FY26 results last Friday.

The company reported: 

• Revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year-on-year.
• EBITDA fell 33.8% to $139.2 million.
• Net profit after tax (NPAT) declined 64.9% to $18.1 million.
• On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period.
• Underlying NPAT (pre-AASB 16) fell 60.4% to $21.3 million.

Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.

Investors were seemingly left disappointed by these results, as Inghams shares crashed 13% on Friday. 

Some investors saw an opportunity to buy-low yesterday, as the share price recovered a little over 2%. 

Inghams shares are now close to a 5-year low, and fresh guidance out of Morgans indicates it could be an attractive entry point. 

Here’s what the broker had to say. 

Positive long term view 

In a note out of Morgans over the weekend, the broker said the 1H26 result was weak, but in line with guidance. 

It said as expected, gearing was above the Board’s target range and FY26 guidance was revised by 13-16%. 

Importantly, ING has now dealt with its excess inventory levels, core poultry volumes are back in growth, selling prices are higher than the pcp and normal production settings and improved network efficiency should result in a much stronger 2H26 vs 1H26.

The broker said the annualised benefit from these more normalised operating conditions should eventuate in FY27, resulting in a strong earnings recovery. 

After the severe share price weakness, we upgrade to a BUY rating.

What are other experts saying about Inghams shares?

Inghams shares closed trading yesterday at $2.16. 

It is down more than 14% year to date and roughly 37% over the last 12 months. 

While upside may be limited, analysts see the current price as undervalued. 

The average rating of 7 analysts via TradingView places a 1 year price target of $2.38 on Inghams shares. 

That indicates an upside of 10.38% from current levels. 

However, Inghams also just announced an interim dividend of 4 cents per share, which would translate to 3.75% yield over the year should it repeat. 

Including this yield in 12 month projections, this could push the total upside over 14%. 

The post Are Inghams shares a buy, hold or sell after last week’s crash? appeared first on The Motley Fool Australia.

More reading

• Why Guzman Y Gomez, Inghams, Megaport, and Rio Tinto shares are tumbling today
• Inghams shares plunge 13% as earnings slump and FY26 guidance cut

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

Although it hasn’t gotten as much attention as some other developments on the financial markets over the last few weeks (tariffs and record highs are undoubtedly more captivating for ASX investors), the recent rise of the Aussie dollar has been nothing short of extraordinary.

As recently as early December, one Aussie dollar was buying around 65 US cents. Today, that same dollar can buy more than 71 US cents. That might not seem like much to write home about, but it represents a change of about 10% against the greenback in just a few weeks.

What’s even more notable is that the Aussie dollar is sitting at a level investors haven’t seen for more than 3 years. Yep, you’d have to go back to January 2023 to see the last time you could get 71 US cents for one Australian dollar. And back to mid-2022 for the last time it was more than a fleeting moment.

A change in the value of our national currency of this magnitude has huge ramifications for both our economy and ASX investors.

Should ASX investors worry?

On the economic front, a rising dollar makes exports more expensive for foreign buyers and makes imports cheaper for Australians, in basic terms. You may have already noticed this effect when filling up your car.

Since Australia is a net importer of fuel and many other everyday goods, a higher dollar can help reduce inflation. As such, the Reserve Bank of Australia (RBA) and anybody with a mortgage, by extension, will be happy to see a higher dollar.

The ASX shares that will be cheering on a higher dollar are those companies that import most or all of the goods they sell to their Australian customers. These include Wesfarmers Ltd (ASX: WES), JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN), and Ampol Ltd (ASX: ALD).

Conversely, a higher dollar adversely impacts any ASX share that exports what it produces. For ASX investors, that mostly applies to mining companies such as BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), and Northern Star Resources Ltd (ASX: NST).

It will also negatively impact ASX investors in companies such as CSL Ltd (ASX: CSL) that report earnings in US dollars.

Similarly, it will negatively impact the value, in local terms, of any US dollar-denominated shares that ASX investors may own.

Foolish Takeaway

Movements in the Aussie dollar can have big implications for the economy and for ASX investors. However, they are a normal part of the healthy functioning of an economy.

As such, ASX investors may see some short-term pain from the Aussie dollar’s rise. But overall, it should make very little difference to the financial fortunes of long-term investors.

The post Should ASX investors worry about a rising Aussie dollar? appeared first on The Motley Fool Australia.

More reading

• Why I’d forget NAB shares and buy these top Aussie stocks
• Is Wesfarmers stock a post-earnings buy?
• Why I think these ASX 200 growth shares could beat the market
• Guess which ASX 300 share could rise ~100%
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares hit a record high yesterday. That kind of price action tells you one thing very clearly: the market is feeling confident.

And while I can understand why investors are drawn to banks, especially when they are performing well, I personally think NAB shares are now fully valued at these levels. Expectations are high, the sector is competitive, and after a strong run, I suspect a fair amount of good news is already reflected in the share price.

If I were putting fresh money to work today, I would be looking elsewhere. In particular, I would focus on a handful of high-quality Aussie blue chips that, in my view, offer stronger long-term upside from here.

Macquarie Group Ltd (ASX: MQG)

If I want exposure to financial services, I would look at Macquarie.

Macquarie is not just a lender. It is a global asset manager, infrastructure investor, and advisory powerhouse with diversified earnings streams. I think that flexibility matters. It allows the group to benefit from market volatility, capital markets activity, and structural trends like the energy transition.

Unlike NAB, Macquarie is less tied to the Australian housing market. That gives it a different risk profile and, in my view, a more attractive growth runway over time. When I think about long-term compounding, Macquarie stands out as a business with genuine global scale and ambition.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is no longer just a pharmaceutical wholesaler. With its merger with Chemist Warehouse, the investment case has fundamentally changed.

Instead of relying purely on wholesale margins, Sigma now has exposure to one of Australia’s most dominant pharmacy retail brands. Chemist Warehouse brings scale, brand power, and strong customer traffic, giving Sigma a much broader earnings base across both wholesale and retail.

I think that vertical integration is important. It strengthens bargaining power, improves supply chain efficiency, and gives the combined group greater influence across the pharmacy ecosystem. It also adds a growth layer that the old Sigma simply did not have.

For me, this makes Sigma a far more compelling long-term holding than it once was. It blends defensive healthcare demand with retail scale, which I believe gives it stronger earnings resilience and expansion potential than many investors may still appreciate.

Amcor plc (ASX: AMC)

Amcor has also reshaped its growth profile through its acquisition of Berry Global.

Packaging is already a defensive industry, but the addition of Berry Global expands Amcor’s global footprint, product range, and scale advantages. Greater scale in this sector matters. It can enhance pricing power, drive cost efficiencies, and deepen relationships with multinational customers.

To me, the enlarged Amcor looks even more like a global packaging heavyweight. It combines steady demand from food, beverage, healthcare, and consumer goods markets with increased operational leverage from integration benefits.

While NAB is trading at a record high and looks fully valued in my view, Amcor is well off its highs and offers global diversification, defensive revenue streams, and now even greater scale following the Berry deal. That balance appeals to me as a long-term compounding story.

Foolish Takeaway

NAB is a high-quality bank. I am not arguing otherwise. But at a record high, I think it now looks fully valued.

Rather than chase momentum, I would prefer to spread my capital across diversified leaders like Macquarie, Sigma Healthcare, and Amcor. In my view, they offer a better balance of growth, resilience, and long-term compounding potential from here.

The post Why I’d forget NAB shares and buy these top Aussie stocks appeared first on The Motley Fool Australia.

More reading

• 3 of the best Aussie stocks I would buy
• Buy, hold, sell: ANZ, CBA, NAB, and Westpac shares
• 16 ASX shares going ex-dividend next week
• Buy, hold, sell: NAB, Santos, and Suncorp shares
• Qube reports record half-year result and higher dividend

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Macquarie Group. 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) was one of the most prominent blue-chip ASX 200 shares to report its latest earnings last week. It was a disappointment, if the market’s reaction is to be believed. As it stands at the time of writing, Wesfarmers’ stock remains down by just over 7% compared to where it closed last Wednesday, just before Wesfarmers released its half-year report.

As we covered at the time, there were a lot of green numbers in said report. For the six months to 31 December, the Bunnings, Kmart, and OfficeWorks owner revealed revenue growth of 3.1% to $24.21 billion. Earnings before interest and tax (EBIT) were up 8.4% to $2.49 billion, while net profit after tax (NPAT) climbed 9.3% to $1.6 billion.

That enabled Wesfarmers to increase its interim dividend to $1.02 per share (fully franked, of course), a 7.4% increase over the interim dividend investors received last year.

So, given Wesfarmers’ solid numbers, as well as the negative stock price reaction for the market, many investors might be wondering whether now is a good time to buy into this ASX 200 blue-chip conglomerate.

Investors might have been surprised by the market’s reaction to these earnings, given their underlying resilience.

However, the cause of the sell-off we’ve seen over the last few days draws our attention to Wesfarmers’ valuation.

Is Wesfarmers stock cheap enough to buy yet?

Wesfarmers is unquestionably one of the highest-quality companies on the ASX. It has decades of history behind it as an ASX outperformer, with a long track record of delivering both capital growth and a rising dividend.

Further, its unique portfolio of assets, which range from the retailers mentioned above to pharmacies, chemical manufacturing, and mining, arguably makes Wesfarmers one of the most inherently diversified companies available to invest in on our market.

However, as the late, great Charlie Munger once said, “No matter how wonderful [a business] is, it’s not worth an infinite price”.

Sure, Wesfarmers has come off the boil, both over the past week, and since the stock hit a new record high of $95.18 a share back in mid-2025.

Even so, the company still trades on a price-to-earnings (P/E) ratio of 32.15. That’s pretty lofty for a company that is growing at single digits. For comparison, this earnings multiple makes Wesfarmers more expensive than Microsoft, Facebook-owner Meta Platforms, and Google-owner Alphabet right now.

I love Wesfarmers as a company. I already own shares, but would love to own far more than I currently do. Saying all that, I just don’t think the company is a good value at its current price, despite the recent sell-off. So I’ll be holding out for a better price for Wesfarmers stock. I might be waiting a while, but that’s the way it goes on the markets sometimes.

The post Is Wesfarmers stock a post-earnings buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Wesfarmers, Westpac, and Woolworths shares
• 4 reasons to buy Wesfarmers shares today
• 3 of the best Aussie stocks I would buy
• Here’s the earnings forecast out to 2030 for Wesfarmers shares
• 2 more ASX 200 blue chip stocks that increased dividends this week

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Meta Platforms, Microsoft, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Meta Platforms, Microsoft, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Meta Platforms, Microsoft, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.