Woodside Energy Group Ltd (ASX: WDS) shares are rising on Wednesday following the release of a first-quarter update from the energy giant.

This was not necessarily a blowout quarter, but I think there were a few important takeaways that reinforce the longer-term investment case.

Here is how I see it.

Reliability remains a real strength

One of the standout aspects of the update was just how reliable Woodside's assets continue to be.

Key operations like Sangomar, Pluto LNG, and the North West Shelf all delivered reliability at or above 99% .

That might not sound exciting, but I think it matters more than it gets credit for.

In a business like energy, consistency drives cash flow. High reliability means assets are producing when they should, which supports earnings and helps smooth out volatility over time.

Even with some disruption from cyclones late in the quarter, the company was able to maintain strong operational performance overall.

For me, that reinforces the idea that Woodside's asset base is high quality.

Production dipped, but pricing improved

Production volumes came in at 45.2 million barrels of oil equivalent, down 8% from the previous quarter .

That was largely due to seasonal weather impacts, which I do not see as a structural issue.

At the same time, pricing moved in the opposite direction. Woodside achieved an average realised price of US$63 per barrel of oil equivalent, up 11% from the prior quarter .

I think this balance is important. Energy companies are always dealing with a mix of volume and price. In this case, lower production was partly offset by stronger pricing, which helps support overall revenue.

It also highlights how sensitive earnings can be to commodity prices. If pricing remains firm, that can do a lot of the heavy lifting.

Growth projects are progressing well

For me, this was probably the most important takeaway.

Woodside continues to make strong progress on its major growth projects, particularly Scarborough, which is now 96% complete and on track for first LNG in the fourth quarter of 2026 .

Other projects like Trion and Louisiana LNG are also advancing and remain on budget. I think this is important because it underpins future production and cash flow growth.

These are long-life assets that can generate returns for years once they come online. Seeing them progress on time and on budget reduces a lot of execution risk.

It also gives investors more confidence in the medium-term outlook.

Are Woodside shares a buy?

I think they are. This update does not change the core story for me.

Woodside continues to operate a portfolio of high-quality assets, benefits from strong commodity pricing, and is steadily bringing major growth projects closer to completion.

There will always be volatility in energy markets. Production can move around, and prices can change quickly.

But when I look at the bigger picture, I think the combination of reliable operations, improving pricing, and a clear pipeline of projects puts the company in a strong position over time.

For investors looking for income and exposure to global energy demand, I believe Woodside shares still look like a solid option.

The post 3 key takeaways from Woodside's first-quarter result appeared first on The Motley Fool Australia.

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• Why Ramelius, Liontown and Woodside shares are making waves on Wednesday
• Up 40% in 2026: Why are Woodside shares charging higher today?
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• 5 things to watch on the ASX 200 on Wednesday
• $5,000 invested in Woodside shares 12 months ago is now worth…

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

When I think about what drives long-term outperformance, I come back to a fairly simple idea. 

The businesses that tend to win over a decade are usually the ones with consistent demand, pricing power, and the ability to quietly grow earnings year after year.

That is why I think Woolworths Group Ltd (ASX: WOW) shares have a real chance to beat the market over the next 10 years.

A business built on everyday demand

Woolworths sits in one of the most resilient parts of the economy. People still need to buy groceries regardless of what interest rates are doing or how the broader market is performing.

That does not make it immune to short-term pressures. Margins can move around, and competition can pick up. But over long periods, this kind of demand tends to be stable and predictable.

That stability matters more than it might seem. It gives Woolworths a consistent base of revenue that can compound over time, even if growth is not explosive in any single year.

Scale that supports earnings growth

One of the key advantages Woolworths has is scale. It operates one of the largest supermarket networks in Australia, which gives it significant buying power and operational efficiency.

Over a 10-year period, even modest improvements in margins, combined with steady sales growth, can lead to meaningful earnings expansion.

A steady compounding profile

Woolworths is not the type of ASX share that typically delivers sudden, dramatic gains. But that is not really the point here.

What matters is consistency. If a business can grow earnings at a steady pace, reinvest into its network, and maintain strong market share, the compounding effect can become quite powerful over time.

It is also worth noting that Woolworths continues to be viewed as a high-quality defensive within portfolios, sitting alongside other stable names that can deliver dependable growth.

That kind of positioning tends to attract long-term capital, which can support valuation over time.

Why time is the key factor

Over shorter periods, Woolworths shares might lag the market. That can happen if growth stocks are leading or if defensive names fall out of favour.

But over a decade, the equation shifts. The combination of steady earnings, strong market position, and essential demand can add up in a way that is easy to underestimate.

For example, over the last 10 years, Woolworths shares have delivered an average total return of 9% per year.

This is not about trying to pick the fastest grower. It is about owning a business that can keep moving forward, year after year, with fewer surprises along the way.

Foolish takeaway

Woolworths is unlikely to be the most exciting share on the ASX. But over 10 years, it does not need to be.

If it continues to grow steadily, defend its market position, and benefit from its scale, I think it has a solid chance of delivering returns that quietly edge past the broader market.

The post Why I think Woolworths shares could beat the market over 10 years appeared first on The Motley Fool Australia.

More reading

• $250,000 to invest for passive income? Here's how I would build a portfolio
• Is it time for investors to turn back to defensive ASX shares?
• If I had to build a simple ASX portfolio today, this is what I'd do
• Nervous investors turn to ASX 200 defensives as global energy shock drags on
• 5 ASX dividend shares I'd buy for a second income

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

When it comes to companies operating in the gaming and poker machine spaces Australia has a couple of the world majors, with Aristocrat Leisure Ltd (ASX: ALL) being one.

New broker report

RBC Capital Markets has just initiated coverage of the stock, and they have an outperform rating on it, as well as a bullish share price target which we'll get to shortly.

Interestingly one of the characteristics of gaming spending over the past six weeks has been its resilience in the face of global uncertainty.

AS RBC's Mark Wilson says in his report on Aristocrat:

Notwithstanding the Iran conflict and cost of living pressures, global gaming markets remain resilient as evidenced by recent gaming expenditure data. In 1Q26, US commercial gaming revenue was up 5% on the previous corresponding period with land-based casino gross gaming revenue (GGR) up 3% and iGaming GGR up 18%.

Mr Wilson said Aristocrat still has room to grow, despite already holding a commanding position in the market.

As he said:

Aristocrat's recent game performance highlights that it is well-positioned to grow incremental market share, notwithstanding that it has a current 43% share of the North American Gaming Ops market and a 31% share of the Outright Sales market.

Mr Wilson said RBC believes there is upside risk to their earnings forecasts if the company's Aristocrat Interactive division can achieve its revenue target of US$1 billion by FY29.

He went on to say:

The iGaming market is growing in excess of 20% pa and Aristocrat has just a 3.5% share of the iCasino market, ahead of the launch of Lightning Link.

More broadly Mr Wilson said the company's balance sheet was in fine shape.

Given the strength of Aristocrat's recurring revenue businesses, we expect Aristocrat will be able to generate free cashflow in excess of $1.7 billion per annum, which has been one of the key drivers of Aristocrat's strong balance sheet. This provides the company the ability to seek acquisition opportunities as well as return surplus capital to shareholders via share buybacks. We expect these to be ongoing.

Capital management options

Mr Wilson's report says the company has just $234 million remaining under its current $1.5 billion buyback program which is scheduled to run until March 2027, raising the prospect that a new buyback could be launched.

RBC Capital Markets has a share price target of $58 on Aristocrat shares, compared with the current price of $47, implying potential upside of 23%.

Aristocrat is valued at $27.86 billion, and pays a dividend yield of 2%.

The post This ASX gaming company could deliver 20%+ returns: RBC Capital Markets appeared first on The Motley Fool Australia.

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• 6 ASX 200 shares with strengthened buy ratings this week
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• Down 50% in the past year, are these ASX 200 shares too cheap to ignore?
• Buy, hold, sell: Aristocrat, Lovisa, Bendigo Bank shares

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 a passive income portfolio is not about chasing the highest dividend yield. For me, it is about finding a balance between reliable income today and the ability for that income to grow over time.

If I had $250,000 to invest for passive income, I would focus on a mix of high-quality ASX dividend shares and a couple of income-focused ASX ETFs to keep things diversified and simple.

Here is how I would approach it.

Start with a core of reliable income stocks

I would anchor the portfolio with a handful of large, established ASX shares that have a track record of paying dividends through different market conditions.

Commonwealth Bank of Australia (ASX: CBA) would be one of my starting points. The major banks are not cheap right now, but they remain some of the most consistent dividend payers on the ASX. CBA, in particular, has shown an ability to deliver relatively stable income, supported by its strong market position.

Telstra Group Ltd (ASX: TLS) would also be on my list. Telstra offers a relatively attractive dividend yield and benefits from recurring revenue through its core telecommunications business. It is not a fast grower, but for income, consistency matters.

Woolworths Group Ltd (ASX: WOW) adds a different layer. Its dividend yield is typically lower than banks or telcos, but the business is defensive. People still need groceries regardless of economic conditions, which can help support more stable earnings and dividends over time.

Add infrastructure for steady cash flows

Transurban Group (ASX: TCL) is another name I would include.

Infrastructure assets like toll roads tend to generate predictable, long-duration cash flows. Many of Transurban's revenues are linked to traffic volumes and, in some cases, inflation, which can provide a degree of protection for income investors.

This type of exposure helps smooth out the portfolio, especially when more cyclical sectors become volatile.

Include resources for income and upside

BHP Group Ltd (ASX: BHP) would round out the core holdings.

Mining dividends can be more volatile because they depend on commodity prices. However, BHP has historically returned significant cash to shareholders during strong commodity cycles.

I would not rely on it for steady income every year, but it can provide a meaningful boost to portfolio income over time, along with exposure to global demand for resources.

Use ASX ETFs to diversify and simplify

To complement individual stocks, I would allocate part of the portfolio to income-focused exchange-traded funds (ETFs) like the Vanguard Australian Shares High Yield ETF (ASX: VHY) or the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

These ETFs provide exposure to a broader basket of dividend-paying companies, which can help reduce the risk of relying too heavily on any single stock.

They also make the portfolio easier to manage. Instead of needing to constantly adjust individual holdings, the ETF structure does some of that work in the background.

How I would split the $250,000

Rather than overcomplicating things, I would aim for a balanced allocation across these ideas.

Roughly speaking, I would divide the portfolio between core dividend stocks and ETFs. The individual holdings provide targeted exposure to high-quality businesses, while the ETFs add diversification and help smooth income.

The exact percentages would depend on personal preference, but the key idea is to avoid concentrating too much in any one sector, especially banks or resources.

Foolish takeaway

A $250,000 passive income portfolio does not need to be complicated to be effective.

By combining reliable dividend payers like Commonwealth Bank, Telstra, Woolworths, Transurban, and BHP with diversified ASX ETFs such as the VHY or HYLD ETFs, it is possible to build a portfolio that generates income today while still having room to grow over time.

The post $250,000 to invest for passive income? Here's how I would build a portfolio appeared first on The Motley Fool Australia.

More reading

• Why I think Woolworths shares could beat the market over 10 years
• $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth?
• Should you buy CBA shares for their 'consistent profitability'?
• Is it time for investors to turn back to defensive ASX shares?
• How to dollar-cost average your way to passive income with ETFs

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. 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 just released updated guidance on ASX 200 stock Aurizon Holdings Ltd (ASX: AZJ). 

The company is Australia's largest rail freight operator. It hauls bulk commodities, largely coal, as well as iron ore and agricultural products.

The company owns one of the world's largest coal rail networks. The network links around 50 mines to three major ports in Queensland.

The rail network, comprising 2,670 kilometres of lines under a 99-year lease from the Queensland government, accounts for the majority of Aurizon's earnings.

In 2026, this ASX 200 stock has raced ahead of the broader market. 

Since January, it has risen just over 15%, compared to a flat return for the S&P/ASX 200 Index (ASX: XJO). 

At the time of writing on Wednesday afternoon, shares are trading at $4.14 each. 

What is Ord Minnett's latest view?

In a note out of Ord Minnett, the broker seemed impressed by the half-year results. 

Aurizon Holdings posted a first-half FY26 net profit around 10% higher than market expectations, driven by lower-than-forecast unit costs and higher-than-anticipated yields from its above-rail coal operations, and launched another share buyback valued at $100 million.

The broker said the key positive from the result was an increase in its dividend payout ratio to 90% (previously 80%). 

Ord Minnett said this is a level the company aims to maintain into the future. 

FY guidance updated

Ord Minnett also highlighted that Aurizon reiterated guidance for FY26 group operating earnings (EBITDA) of $1.68–$1.75 billion, versus market expectation near the midpoint at $1.71 billion, with EBITDA from its network, coal and bulk divisions all "expected to be higher than FY25".

Dividend guidance for FY26 was also upgraded to $0.22–$0.23 per share from $0.19–$0.20. 

We highlight that incorporating the new dividend guidance and the $250 million in share buybacks already launched in the current fiscal year shows Aurizon is offering a total distribution yield, i.e.dividends plus share buybacks, of circa 7–8% in FY26.

For FY27, incorporating Ord Minnett's EPS estimates, a 90% dividend payout ratio, and our forecast for another $250 million share buyback given Aurizon has sufficient balance sheet capacity, the total distribution yield would rise to around 9–10%.

Hold recommendation on valuation grounds

Based on this guidance, Ord Minnett raised its earnings per share estimates by 2.7%, 3.5% and 0.9% for FY26, FY27 and FY28, respectively. 

These earnings upgrades led us to increase our target price on Aurizon to $3.50 from $3.10, although we maintained our Hold recommendation on valuation grounds.

Despite the target price increase, this ASX 200 stock is currently trading at $4.14 per share, which is 15% above Ord Minnett's target. 

The post Is this ASX 200 stock a buy, hold or sell after rising 15% year to date? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares 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.

If you are looking to gain exposure to the beaten down tech sector, then it could be worth considering the two stocks in this article.

That's because they have been named as buys and are tipped to rise strongly from current levels. Here's what is being recommended:

Pro Medicus Ltd (ASX: PME)

The first ASX 200 tech stock that could be a buy is Pro Medicus.

It is a healthcare technology company with a specialised focus. Its Visage imaging platform is used by hospitals to process and analyse medical images quickly and efficiently.

The company has built a strong position in the United States, where it continues to win long-term contracts with major healthcare providers. These agreements provide visibility over future revenue and support high margins.

Demand for more efficient medical imaging is growing, particularly as data volumes increase in healthcare systems and radiologist shortages persist.

With a proven product and expanding customer base, Pro Medicus continues to show how specialised software can scale globally.

Morgans recently put a buy rating and $210.00 price target on its shares. Based on its current share price of $134.84, this implies potential upside of more than 55% over the next 12 months.

Putting that in context, a $10,000 investment in Pro Medicus shares would become approximately $15,500 if Morgans' recommendation proves accurate.

Xero Ltd (ASX: XRO)

Another ASX 200 tech stock that could rise strongly is Xero.

It provides cloud-based accounting software to small and medium-sized businesses. Its platform sits at the centre of financial operations, making it a key tool for managing accounts, payroll, and payments.

The company's growth opportunity remains significant. There are still many businesses globally that have yet to adopt cloud accounting solutions, and Xero continues to expand its presence in markets such as the United States.

It is also building out additional services, including payments and financial insights, which can increase revenue per user over time.

With a large market opportunity and multiple ways to grow, Xero remains well placed to expand over the long term.

UBS is bullish on this ASX 200 tech stock. The broker recently put a buy rating and $127.00 price target on Xero's shares. Based on its current share price of $79.30, this implies potential upside of 60% for investors between now and this time next year.

To put that into context, a $10,000 investment would turn into approximately $16,000 if UBS is on the money with its recommendation.

The post These beaten down ASX 200 tech stocks could rise 55% to 60% appeared first on The Motley Fool Australia.

More reading

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

As May approaches, investors are no doubt looking for opportunities that reflect both recent market moves and longer-term trends.

Some areas have been sold off and could be setting up for a recovery. Others continue to benefit from structural growth or offer exposure to high-quality businesses.

Here are three ASX exchange traded funds (ETFs) that stand out for different reasons.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF to look at is the BetaShares S&P/ASX Australian Technology ETF.

It has been caught up in the broader weakness across technology shares this year. That has pushed valuations lower across a number of its holdings, despite their underlying businesses continuing to execute.

Its portfolio includes companies such as NextDC Ltd (ASX: NXT), Pro Medicus Ltd (ASX: PME), and REA Group Ltd (ASX: REA).

With sentiment around tech currently subdued, the BetaShares S&P/ASX Australian Technology ETF offers a way to gain exposure to a group of companies that are still tied to structural growth, but trading on lower multiples than a year ago. This fund was recently recommended by analysts at BetaShares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF worth looking at in May is the Betashares Global Cash Flow Kings ETF.

This fund focuses on companies that generate strong and consistent free cash flow. Rather than chasing emerging themes, it leans toward businesses with established earnings and the ability to reinvest over time.

Its holdings include companies such as Alphabet (NASDAQ: GOOG), Mastercard (NYSE: MA), and Palantir Technologies (NASDAQ: PLTR).

Alphabet is a good example of this approach. Its core search business produces significant cash flow, which supports continued investment in areas like artificial intelligence and cloud computing. That financial strength allows it to expand without needing to rely heavily on external funding. It was also recently recommended by analysts at BetaShares

BetaShares Global Cybersecurity ETF (ASX: HACK)

A third ASX ETF to consider in May is the BetaShares Global Cybersecurity ETF.

Cybersecurity has become a core requirement for businesses as more systems move online and digital threats become more sophisticated.

Its holdings include companies such as Cisco (NASDAQ: CSCO), Palo Alto Networks (NASDAQ: PANW), and Okta (NASDAQ: OKTA).

Okta is a good example of how the sector is evolving. It focuses on identity and access management, helping organisations control who can access systems and data. As businesses adopt more cloud-based tools, this type of service becomes increasingly important.

With demand for cybersecurity continuing to build, the future looks bright for the BetaShares Global Cybersecurity ETF and its holdings.

The post Why these ASX ETFs could be top picks in May appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc, Pro Medicus, and REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Global Cybersecurity ETF, Cisco Systems, Mastercard, Okta, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks and Pro Medicus. The Motley Fool Australia has recommended Alphabet, Mastercard, Okta, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's currently the season for quarterly reports, which tends to also be a good time to see what the brokers are saying about companies which have reported, or are just about to.

I've selected three reports from Macquarie on companies which fit the bill, two of which reported just in recent days.

So let's have a look what they're saying.

Whitehaven Coal Ltd (ASX: WHC)

This week, Whitehaven Coal released its quarterly report. The company revealed it had generated sales of 6.8 million tonnes of coal for the March quarter, broadly in line with the December quarter.

But while production was flat, the company received better prices for both its metallurgical and thermal coal. Given the continued troubles in the Middle East, this is expected to continue.

As the company said:

Long-term demand for seaborne high caloric value thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high caloric value thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity. This focus on energy security is expected to further support long-term demand for high-quality thermal coal. Disruptions are likely to continue to impact supply across the global energy complex for a period following cessation of Middle East tensions.

Macquarie has a price target of $9.75 on Whitehaven shares, compared with $8.28 currently.

Aurelia Metals Ltd (ASX: AMI)

Also this week, Aurelia Metals reported gold production of 13,000 ounces for the quarter, and that it had increased its cash balance from $85.6 million at the end of December to $94.7 million at the end of March.

Aurelia also increased its full-year production guidance, saying gold production was now expected to come in at 45,000 to 50,000 ounces, compared with the previous guidance of 35,000 to 40,000 ounces.

Forecast copper production, however, reduced from 3,000 to 4000 tonnes to 2.5-3000 tonnes.

Macquarie said in its research note on the company that gold production came in 17% higher than consensus estimates, although the company's base metals production was weak.

Macquarie maintained its price target of 40 cents on the company's shares. This is materially above its current share price of 31 cents, which increased 9.8% on Wednesday.

Amcor Ltd (ASX: AMC)

Amcor is yet to report its quarterly results, which are scheduled to come out on May 6, however Macquarie has put out a research note in advance.

The broker said they were expecting $200-$250 million in adverse working capital movements from an increase in raw materials costs, "which is likely to reduce AMC's $1.8-$1.9 billion full year free cash flow guidance''.

Macquarie has reduced their earnings per share assumptions and therefore reduced their price target on Amcor from $86.50 to $84.63, however this is still well above the current share price of $54.13.

The post Macquarie names 3 ASX shares to buy appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Should you buy Coronado Global and Whitehaven Coal shares?
• Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today
• What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say
• 2 brokers rate this ASX gold stock a buy, with 50% upside forecast

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

The S&P/ASX 200 Index (ASX: XJO) and many ASX shares endured yet another red session this hump day, its third in a row this week, and seventh in total. By the time trading wrapped up, the ASX 200 had slid another 0.27% lower, leaving the index below 8,700 points at a flat 8,687.

This rather woeful Wednesday for the local markets comes after a similarly downbeat night over on the American stock exchanges.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to snatch a loss from the jaws of victory, losing 0.053%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was more decisive, though, dropping 0.9%.

But let's get back to ASX shares and assess the damage from today's trading amongst the different ASX sectors.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Macquarie names 3 ASX shares to buy
• Should you buy Coronado Global and Whitehaven Coal shares?
• Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today
• Why is this ASX gold stock slipping despite new gold discoveries?
• Why did the ASX 200 just rebound following the hottest inflation print since 2023?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

APA Group (ASX: APA) shares have climbed another 0.6% to a three-year high of $10.18 at the time of writing. 

The latest increase means the shares are now 13% higher for the year-to-date, having rebounded nearly 19% since mid-January. APA shares are now also 22% higher than 12 months ago.

Why are APA shares climbing higher?

There is no price-sensitive news out of APA recently to explain the latest share price surge. The share price hike is likely the result of investors increasingly rotating into defensive income-generating shares during ongoing volatility.

APA is Australia's largest energy infrastructure company, owning and operating an extensive portfolio of gas, electricity, solar, and wind assets.

The company is also a major owner and operator of Australia's gas distribution network, including pipelines, gas-fired power stations, and storage facilities. It transports more than half the natural gas used in Australia. 

Since listing on the ASX in 2000, APA Group has substantially grown its energy assets. More recently, it has added solar farms to its portfolio. 

APA announced its latest expansion plans in February, around the same time it posted an impressive first-half FY26 result.

APA posted a 7.6% jump in underlying EBITDA to $1,092 million and upgraded its organic growth pipeline from $2.1 billion to around $3 billion for FY26 to FY28.

FY26 Underlying EBITDA guidance is unchanged at $2,120–$2,200 million, with expectation to exceed midpoint.

The company also said it is on track to achieve $50 million in full-year cost savings, helped by simplification efforts including the sale of its Networks business and pending divestment of its GDI stake.

It's this continued long-term revenue which means the company is able to pay a consistent passive income to its shareholders too.

APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward distribution yield of 5.7%, partially franked, at the time of writing.

Are the shares a buy, sell or hold now?

Despite the latest share price rally, and the company's attractive passive income, analysts aren't too optimistic about the outlook for APA shares over the next 12 months.

According to TradingView data, four out of nine analysts have a hold rating on the stock, three have a sell or strong sell rating. Others are more bullish with a buy or strong buy rating.

But, the average target price for APA shares is $8.96, which implies a potential 12% downside at the time of writing.

Even the best-case scenario $10.41 maximum target price implies a minor 3% upside from the current trading price. 

The post Are APA shares a buy after reaching a three-year high? appeared first on The Motley Fool Australia.

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• Want to build up a second income? These 2 top ASX shares are a buy
• 3 ASX dividend shares I'd hold through anything
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• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months

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

Two of the largest coal miners on the Australian share market have released updates this week.

Bell Potter has been running the rule over these updates from Coronado Global Resources Inc (ASX: CRN) and Whitehaven Coal Ltd (ASX: WHC). But has it seen enough to recommend either coal miner as a buy?

Let's see what the broker is saying about them:

Coronado Global Resources

Bell Potter notes that it was a challenging first quarter for Coronado, with production and sales down heavily quarter on quarter, and costs coming in higher than expected. It said:

CRN reported quarterly saleable coal production of 3.0Mt (down 30% QoQ; BPe 3.3Mt) and sales of 3.5Mt (down 20% QoQ; BPe 3.3Mt). Production was heavily impacted by a 6-week shutdown at Mammoth following a fatality; adverse weather and a planned 2-week CHPP shutdown at Curragh; and two longwall moves at Buchanan. Group mining costs were US$135/t produced (BPe US$113/t), up 41% QoQ. Group realised met coal pricing was US$165/t (70% realisation to the average HCC index). BP calculated quarterly group EBITDA was -US$88m (BPe US$8m) with unit mining costs elevated on lower sales.

In response, the broker has retained its speculative hold rating with a reduced price target of 30 cents.

Whitehaven Coal

Unlike Coronado Global, Bell Potter notes that Whitehaven Coal performed better than feared during the third quarter. It highlights that production and sales were ahead of expectations for the three months. The broker said:

WHC reported quarterly managed ROM production of 9.5Mt (BPe 9.6Mt), managed saleable production of 8.4Mt (BPe 7.8Mt) and equity coal sales of 6.9Mt (BPe 6.3Mt). Sales were supported by a stock drawdown with production impacted by heavy rainfall in Queensland and geotechnical issues at Narrabri. The next 8-week longwall changeout and maintenance period is scheduled for the December 2026 quarter. Group realised pricing was A$207/t, up 9% QoQ in line with higher met and thermal market prices. FY26 guidance was reiterated; ROM production and sales are tracking to the upper end and costs to the middle of the ranges provided.

According to the note, the broker has retained its hold rating and $8.10 price target on Whitehaven Coal's shares.

Bell Potter then concludes:

We maintain a Hold recommendation. In the medium term, WHC are positioned to capitalise when coal markets sustainably improve with a diversified portfolio of assets in Queensland and New South Wales and strong organic growth optionality. We have a positive long term met coal outlook, driven by constrained supply and increased demand from steel producers reliant on seaborne met coal (i.e. India).

The post Should you buy Coronado Global and Whitehaven Coal shares? appeared first on The Motley Fool Australia.

More reading

• Macquarie names 3 ASX shares to buy
• Here are the top 10 ASX 200 shares today
• What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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.

Vitrafy Life Sciences Ltd (ASX: VFY) shares have been strong performers this year.

During this time, the ASX stock has risen over 60%.

But if you thought you were late to the party, think again.

That's because Bell Potter believes the life sciences company's shares could continue to rise over the next 12 months.

What is this ASX stock?

Vitrafy is aiming to become a global leader in cryopreservation by significantly improving cell survival of biological materials.

The ASX stock has designed and developed an innovative solution for the advancement of cryopreservation which includes smart devices, a quality management software platform, and smart packaging solutions.

Bell Potter highlights that after 18 months as a listed company, Vitrafy is approaching an inflection point. It said:

It has been c.18 months since the IPO and VFY are now approaching the point where commercial revenues are within reach. The final report on the Phase II USAISR study is due to be released in 4Q26, with an understanding that the study has been successful and passed regulatory standards.

An update on commercial activity with USAISR is expected in 1H27. The market would be hoping for a final commercial agreement. This collaboration is understood to have created material inbound interest from the civilian blood products sector and follows a recent end-of-life announcement for a legacy technology. No details were provided but this event could be a catalyst for demand for VFY's liquid nitrogen free cryopreservation technology.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating on the ASX stock with a significantly improved price target of $3.00 (from $2.25).

Based on its current share price of $2.10, this implies potential upside of 42% for investors over the next 12 months.

While Bell Potter still has a speculative rating on the stock, it notes that it has removed a 10% risk rating in response to operational progress. It concludes:

We judge the progress VFY has made in blood products and animal production to be sufficient to remove the 10% risk rating we had applied to our revenue forecasts, lifting our FY27e/FY28e revenue estimates by c.11%. Subsequently, this lifts our DCF valuation by c.33% to $3.00/sh.

Since the post IPO low of $1.08 a year ago, VFY's share price has effectively doubled as confidence toward commercialisation has increased. Key catalysts relate to 1) securing commercial arrangements with USAISR and 2) FDA registration for the Guardion cryopreservation device.

The post Up 60%: Why this exciting ASX stock could keep rising appeared first on The Motley Fool Australia.

More reading

• What are brokers saying about these ASX shares hitting 52-week highs

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.

4DMedical Ltd (ASX: 4DX) shares are falling again on Wednesday, with the high-growth stock extending losses despite no new update.

At the time of writing, the 4DMedical share price is down a sizeable 9.34% to $4.27.

That follows a 5.23% drop yesterday and leaves the stock down more than 20% over the past week.

There has been no announcement to explain the move, which points to broader forces at play.

Let's take a closer look.

Selling builds after massive run

The recent pullback comes after an extraordinary run for the stock.

4DMedical shares are still up more than 1,300% over the past 12 months, even after this week's decline. The company's market capitalisation sits around $2.5 billion, and it remains in the S&P/ASX 200 Index (ASX: XJO).

That surge was driven by growing interest in its lung imaging platform, alongside regulatory wins and commercial progress in the United States.

But when a stock moves that far, that fast, it tends to attract a lot of short-term interest.

Day traders often pile in during the sharp rally. But when momentum fades, they can exit just as quickly to lock in profits.

And that can amplify the downside, especially when buying support is limited.

Tech sector weakness adds pressure

The broader backdrop is not helping.

The S&P/ASX All Technology Index (ASX: XIJ) is down 4.18% over the past week and has fallen roughly 20% over the past 12 months.

This shows that the selling is not limited to one stock.

Growth shares have been under pressure as investors rotate away from higher-valuation companies, which has been noticeable over the last few sessions.

The ASX 200 Index has also been drifting lower. It is down about 2.93% over the past week and is trading around 8,687 points today.

Valuation and expectations in focus

4DMedical is still in its growth phase.

It is building out its commercial footprint and pushing for wider adoption of its imaging technology. That includes contracts, regulatory approvals, and hospital rollouts.

The trade-off is that earnings remain limited. The company is not profitable yet, and that could take time as it continues to scale.

That leaves the share price closely tied to future expectations.

Foolish Takeaway

This week's pullback shows how quickly sentiment can shift with high-growth stocks.

4DMedical has clear potential, and its recent run shows how strong the upside can be. But it is still not profitable, which adds risk at current levels.

Personally, I would rather back a more established name like Pro Medicus Ltd (ASX: PME), which is already delivering consistent earnings.

4DMedical may have upside, but it comes with higher volatility and risk.

The post Why this ASX healthcare high-flyer just dropped another 9% today appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today
• What are experts saying about these red hot ASX 200 shares?

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Plenty of ASX shares are in the process of releasing quarterly updates and results. 

After more reports and key announcements this week, the team at Morgans have provided fresh guidance on these ASX shares. 

Let's see if Morgans sees these ASX shares as a buy, hold, or sell. 

6K Additive Inc (ASX: 6KA)

6K Additive is a US-based manufacturer, upcycling metal scrap into premium metal powders and alloying additives.

Yesterday, the company released its Quarterly Activities and Cash Flow Report. 

The team at Morgans said the company delivered a strong March quarter update, with revenue up 88% to US$6.2m. 

This implies an annualised run-rate of ~US$25m, up from ~US$22m in 4Q25, driven by solid demand from both new and existing customers. The run-rate is also ahead of our CY26 revenue forecast of US$22.8m, with the company capturing market share and improving operational metrics. B

oth the Powder (+100%) and Alloy (+70%) products divisions delivered strong revenue growth on the pcp, with a higher order backlog supporting sales momentum over coming months.

Based on this guidance, Morgans said it thinks the company is well-positioned to benefit from strong demand in metal additive manufacturing and US initiatives to reshore critical minerals, supported by its fully domestic powder production, which reduces reliance on foreign-controlled feedstock. 

The broker has retained its speculative buy rating and $1.30 price target on these ASX shares. 

This target is approximately a 71% upside from today's share price. 

Atlas Arteria Ltd (ASX: ALX)

This ASX company is a global owner, operator, and developer of toll roads. 

It received an unsolicited, off-market bid earlier this week from infrastructure investor IFM Investors.

This sent the stock price surging 14% higher on Monday. 

The team at Morgans said, given IFM's existing large (and growing) stake in ALX and the OTPP poison pill, we believe it is unlikely that a counter-bidder will emerge. 

Hence, our assessment is that risk at current prices is skewed to the downside ($4.22/share) rather than upside ($5.10/share). TRIM into current share price strength.

ALX shares are currently exchanging hands for $4.84. 

Imricor Medical Systems Inc (ASX: IMR)

Imricor is a medical device company that engages in the design, manufacture, and distribution of magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures.

The company just released a 1Q26 cash flow report.

Morgans said while sales remain modest, the underlying cash burn was higher than the previous quarter and expected to normalise around US$6m. 

During the quarter one-off costs related to the purchase of 40 generators which were part of an in-house transitioning process. Cash at the end of the quarter was US$32.9m, representing 5.5 quarters of underlying cash burn.

We have made no changes to forecasts. However, a higher risk-free rate (house view), sees our DCF valuation reduce to A$2.63 (was $2.71). We maintain our SPECULATIVE BUY recommendation with numerous catalysts approaching.

This indicates a 35% upside from today's stock price of $1.94. 

The post Are these ASX shares a buy, hold or sell according to Morgans after key updates? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why Atlas Arteria, Forrestania, Megaport, and WA1 shares are charging higher today
• Why the Atlas Arteria share price is rocketing 14% today
• Atlas Arteria receives a takeover offer
• This ASX dividend share could deliver a return of more than 25% Macquarie says

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.

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

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

Life360 Inc. (ASX: 360)

According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this location technology company's shares with an outperform rating and $32.20 price target. The broker believes that recent share price weakness has created an asymmetrical risk profile for investors. It highlights that Life360's shares are changing hands for only 23x estimated FY 2027 earnings. It thinks this is cheap for a company with such a strong revenue growth outlook, as well as operating leverage potential. The Life360 share price is trading at $20.31 on Wednesday afternoon.

Megaport Ltd (ASX: MP1)

A note out of Citi reveals its analysts have retained their buy rating on this network solutions company's shares with an improved price target of $15.00. This follows the release of an update which revealed that Megaport's Latitude business has won a significant contract. Megaport advised that it has secured a three-year compute and storage contract with a total value of approximately US$25.1 million (A$35.4 million). In response, the broker has upgraded its annual recurring revenue and EBITDA forecasts. And while it suspects that capital expenditure investment may have to increase, Citi isn't concerned due to the attractive returns and payback profiles. The Megaport share price is fetching $9.05 at the time of writing.

Newmont Corporation (ASX: NEM)

Analysts at Ord Minnett have retained their buy rating and $205.00 price target on this gold miner's shares. According to the note, the broker was impressed with Newmont's performance during the first quarter. It notes that the company's production came in ahead of expectations, which underpinned stronger than expected earnings and cash flow generation. The broker highlights that this has supported another increase in the gold miner's share buyback program. In response, the team at Ord Minnett has lifted its earnings forecasts for FY 2026 to reflect the stronger than expected performance. The Newmont share price is trading at $154.06 on Wednesday.

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

More reading

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• 6 ASX 200 shares with strengthened buy ratings this week
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and Megaport. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

IGO Ltd (ASX: IGO) shares are under pressure again on Wednesday, adding to what has already been a rough stretch for the lithium and nickel producer.

At the time of writing, the IGO share price is down 1.49% to $7.38.

Over the past week, the stock has fallen close to 20%, including a steep 17.92% drop last Friday after a disappointing quarterly update.

Now, investors have another update to process.

CFO exits less than a month into the job

Before the market opened today, IGO confirmed that Chief Financial Officer Johan van Vuuren had resigned, effective immediately.

That is a very quick turnaround, given he only stepped into the role on April 1.

According to the company, both parties agreed the position was not the right fit, with van Vuuren set to pursue other opportunities.

IGO said it has started arrangements for interim CFO cover and will begin the process of finding a permanent replacement.

There was no indication of broader changes to strategy or operations, though the timing stands out given what has just played out.

This comes straight after a weak quarter

The resignation lands just days after IGO's March quarter result, which triggered a sharp sell-off.

The company reported group sales revenue of $120 million, up 45%, with underlying EBITDA of $119 million and free cash flow of $36 million.

While Nova delivered solid production and cash flow, the same could not be said across the rest of the portfolio.

At Nova, nickel production rose 11% to 4,202 tonnes and copper lifted 7% to 1,907 tonnes, helping drive $52 million in free cash flow for the quarter.

Greenbushes was a key weak spot. Production came in flat at 351,000 tonnes, while lower grades, recoveries, and maintenance issues weighed on performance.

Costs also moved higher, with unit costs rising about 20% to $446 per tonne.

At the same time, IGO cut its full-year production guidance for Greenbushes to between 1.375 million and 1.425 million tonnes.

Furthermore, management noted that the lithium downstream business at Kwinana continues to struggle. Production came in at 3,047 tonnes, with the plant running at just 51% of nameplate capacity.

What investors are focusing on now

This latest management change gives the market something else to weigh up.

On its own, a CFO exit does not always move the dial. But the timing, just weeks into the role and straight after a weak result, raises some serious questions.

Nonetheless, the bigger focus is still on operations.

Greenbushes needs to stabilise, and Kwinana needs to lift utilisation and improve cost performance.

Until that happens, it is hard to see investor sentiment shifting much.

The post CFO quits within weeks as this ASX 200 stock keeps sliding. What on earth is going on? appeared first on The Motley Fool Australia.

More reading

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• IGO shares sink 14%. Here's what just spooked investors?

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.

Ampol Ltd (ASX: ALD) shares have climbed another 1.85% in Wednesday afternoon trading to a two-year high of $34.90.

The uptick also means the Australian petroleum company's shares are now 8.6% higher year to date and 50% higher than this time 12 months ago.

What is driving Ampol shares higher?

Ampol is the largest transport energy distributor and retailer in Australia, with more than 1,800 Ampol-branded service stations across the country as of June 2025. Its shares have rocketed higher on the back of conflict in the Middle East and concerns about global oil supply.

Ampol shares have jumped 24% higher since the war between the US and Iran ramped up in late February.

While news that the two nations could be reaching a peace deal temporarily dented Ampol's share price earlier this month, failure to agree on terms and reopen the Strait of Hormuz to allow oil supplies to flow back through saw demand spike back up again.

As of late April, the two nations are in a temporary, but unstable, ceasefire. The Strait of Hormuz is partially open, but supply continues to be very constrained and unpredictable. 

While news that increased supply has helped cool the price of WTI crude oil, it is still significantly higher than earlier this year. Trading Economics data shows WTI crude oil is currently around US$100 per barrel, up from around US$60 per barrel seen in late February.

Prices for Brent oil, gasoline, and heating oil have also cooled, but remain much higher than before the conflict situation escalated.

And it's not just fuel prices

Ampol shares have also been driven higher recently off the back of some good news announcements out of the company.

Last week, the Aussie fuel supplier said it has submitted a formal remedy offer with the Australian Competition and Consumer Commission (ACCC) about a proposed acquisition of fuel and convenience store operator EG Australia. Ampol revealed it is now offering 41 retail fuel sites for divestment, up from the previously proposed 37, in an effort to address competition concerns raised by the ACCC.

Also last week, Ampol posted its Q1 FY26 trading update, where it confirmed a 10% increase in refinery production, higher refiner margins, and increased production.

The company said it has locked in diesel and jet fuel supply through to the end of May, and gasoline supplies to the end of June, despite rising landed crude costs. 

It confirmed that demand from both consumers and commercial customers in Australia and New Zealand has remained stable despite recent price increases.

Are Ampol shares a buy, sell, or hold?

Analysts think there is still some upside left for Ampol shares this year. TradingView data shows that out of 10 analysts, seven have a buy or strong buy rating on the stock.

The average $36.77 target price implies a 5% upside over the next 12 months, at the time of writing. Whereas, the maximum $40.80 target pierce implies a potential 17% increase in value.

The post Ampol shares surge 50% to a two-year high: Buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

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• Ampol's final ACCC remedy brings EG Australia acquisition closer
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

It has been an interesting 12 months for the share market.

Income-focused shares, particularly banks and miners, have done a lot of the heavy lifting. At the same time, many growth names and technology stocks have struggled, with sentiment weighed down by valuation concerns and uncertainty around AI disruption.

That shift in leadership has had a clear impact on how different strategies have performed.

Why the Vanguard Australian Shares High Yield ETF has performed well

One ETF that has quietly benefited from this environment is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

The VHY ETF focuses on higher-yielding shares within the Australian market. That naturally leads it toward sectors like financials and resources, which have been among the stronger performers over the past year.

For example, companies such as Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP) have both delivered solid gains, supported by strong earnings.

I think this highlights an important point. Market returns are not evenly distributed. Leadership changes over time, and in the past year, income has been back in favour. The Vanguard Australian Shares High Yield ETF is designed to capture that.

The role of distributions

It is also worth remembering that returns from an ETF like this do not just come from the share price.

Distributions play a big role. Over the past 12 months, the VHY ETF has paid distributions of 81.14 cents, 65.83 cents, 109.69 cents, and 200.17 cents per unit.

That adds up to a meaningful income stream on top of any capital growth.

What is the investment in the VHY ETF worth now?

Putting it all together. If you had invested $10,000 into the Vanguard Australian Shares High Yield ETF a year ago at $71.63, you would have received around 139.6 units.

At today's price of $82.98, those units would now be worth approximately $11,580.

On top of that, the total distributions over the year come to approximately $4.56 per unit. Across 139.6 units, that equates to roughly $637 in income.

That brings the total value of the investment to around $12,217.

In other words, a $10,000 investment has grown by just over 22% in a year.

Foolish Takeaway

I think this is a good example of how different parts of the market can take the lead at different times.

The VHY ETF has benefited from strong performance in dividend-paying sectors, as well as the income those companies generate. That combination has worked well over the past year.

Looking ahead, I think it reinforces the value of diversification. Income strategies can have their moment, just as growth strategies do. The key is having exposure to both and staying invested for the long term.

The post $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth? appeared first on The Motley Fool Australia.

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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 recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $174.61. In afternoon trade on Wednesday, shares are changing hands for $172.29 apiece, down 1.3%.

For some context, the ASX 200 is down 0.3% at this same time.

Despite today's slip, CBA shares have materially outperformed the benchmark index in 2026, up 6.9% compared to the 0.4% year to date loss posted by the ASX 200.

For a more accurate picture, we should also include the $2.35 a share fully franked interim dividend CommBank paid out on 30 March. That passive income payout followed another half year of strong profitability.

So, if we add that interim dividend back in, then the cumulative value of CBA stock has gained 8.4% so far in 2026, despite the broader Aussie stock market decline.

Which returns us to the topic at hand.

CBA shares: Buy, hold or sell?

Morgans' Damien Nguyen recently analysed the outlook for Australia's biggest bank stock (courtesy of The Bull).

"CBA is Australia's strongest major bank, with a leading retail franchise and consistent profitability," he noted.

Despite that consistent profitability, Nguyen expressed concerns over the Big Four bank's current valuation.

According to Nguyen:

However, the market fully recognises these strengths. The shares were recently trading at a significant premium, leaving limited upside as interest rate benefits fade and competition increases.

CBA shares currently trade at a P/E ratio of around 28.

As for the other big four Aussie bank stocks, Westpac Banking Corp (ASX: WBC) shares trade on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of around 18 times; and National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of around 18 times.

Explaining his sell recommendation on CBA shares, Nguyen concluded:

While the business remains high quality, future returns are likely to be more modest, in our view. With the company's valuation pricing in a lot of good news, we see better value elsewhere, supporting a sell view.

Just how profitable is CommBank?

CBA reported its half year results (H1 FY 2026) on 11 February, and it was another profitable six months for the ASX 200 bank stock.

CBA shares closed up 6.8% on the day after the company reported a 6% year on year increase in its half year cash net profit after tax (NPAT) to $5.45 billion.

The post Should you buy CBA shares for their 'consistent profitability'? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Macquarie, Boss Energy, CBA shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Shares in Pathkey.AI Ltd (ASX: PKY) hit a new 12-month high on Wednesday after the company announced it would buy Singapore-based Chipforge, an AI-driven semiconductor hardware company.

Major share boost

Pathkey.AI shares traded as high as 7.1 cents before settling back to be changing hands for 5.7 cents around noon, up 39.02%.

The company said in its statement to the ASX that Chipforge was developing an Agentic AI platform, "that translates high-level design intent into verified, synthesisable hardware code, shortening chip development cycles that would otherwise take 12–24 months and multi-million-dollar expenditure''.

Pathkey.AI Chair Shannon Robinson said the Chipforge technology complemented the company's existing offering.

Mr Robinson added:

By adding this complementary AI chip‑design technology to our technology stack, we are materially strengthening our position as a leader in AI. According to a recent article by McKinsey & Company, The global semiconductor market is forecast to reach around US$1 trillion by 2030, driven by AI, data‑centre expansion, edge computing, defence and next‑generation compute workloads. Against that backdrop, owning chip design and verification IP is highly strategic. This transaction accelerates our roadmap, deepens our technical moat, and positions us to capture a far greater share of value as semiconductor spending scales globally.

Pahtkey.AI said Chipforge was developing a design platform for semiconductor engineering, which would "materially reduce the time and cost of designing custom chips, one of the most expensive and time-consuming processes in modern technology''.

Such custom chip design was expensive, the company said, relying as it does on a small global pool of highly specialised hardware engineers.

Pathkey.AI added:

The bottleneck sits in two stages. First, translating a design concept into the precise hardware code that defines how a chip will behave. Second, verifying that the design actually works as intended before it is committed to silicon. Verification alone routinely consumes more than half of a chip project's total budget and development timeline. Chipforge applies AI agents across the full design workflow.

Share-based deal

Under the terms of the deal, which is still subject to conditions, the owners of Chipforge will be issued 560 million new shares in Pathkey.AI as well as 150 million performance rights.

Pathkey.AI said it had $3.26 million in cash on hand at the end of March and expected to receive R&D rebates in the order of $840,000 over the next 12 months.

The company said it did not expect to carry out a capital raise in association with the new deal.

It added:

Based on its existing cash reserves and expected receipts, the Company considers that it is well funded to support the continued development of both the TrialKey and Chipforge platforms, together with its working capital requirements, over the next 12 months.

Pathkey.AI was valued at $24.9 million at the close of trade on Tuesday.

The post Which junior ASX AI company has rocketed almost 40% on a transformational deal? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.