Do you have $10,000 available to invest?

Exchange-traded funds (ETFs) can provide access to a wide range of companies in one ASX investment.

The right choice will depend on the exposure an investor wants. Whether the money is a first investment or an addition to a much larger portfolio, I think the three Vanguard ETFs below are worth considering.

Vanguard Global Technology Index ETF (ASX: VTEK)

The VTEK ETF offers a broad way to invest in the technology sector.

It tracks an index of approximately 300 large and mid-sized technology companies from developed and emerging markets. That provides exposure to semiconductors, software, computer hardware, and technology services.

I like that the opportunity extends beyond a handful of famous US companies. Technology is becoming more important across nearly every industry as businesses spend on artificial intelligence, automation, cybersecurity, cloud computing, and data.

The index also caps any single company at 20%, reducing the influence of one giant holding.

Technology shares can experience large swings when valuations or growth expectations change, but I think the long-term opportunity remains strong.

Vanguard Diversified All Growth Index ETF (ASX: VDAL)

The VDAL ETF provides exposure to more than 6,000 shares across around 50 markets.

It invests across Australian shares, developed international markets, emerging economies, and global small companies. Vanguard manages the mix and regularly rebalances the investments.

I think this makes the fund an attractive option for investors seeking broad share market exposure without selecting several separate ETFs.

The VDAL ETF targets a 100% allocation to growth assets, so it does not hold a defensive allocation to bonds.

That gives the fund greater exposure to long-term share market growth, although investors should expect some volatility during downturns.

Overall, I think the VDAL ETF stands out for the enormous range of companies and markets it places inside one investment.

Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)

Lastly, the VTS ETF provides easy access to almost the entire US share market.

Its holdings extend beyond the largest companies in the S&P 500 to include mid-sized and smaller businesses. I like this approach because it captures today's market leaders while also providing exposure to companies that could become much larger.

The United States is home to leading businesses across technology, healthcare, consumer products, financial services, and industrial markets.

This does mean the fund is exposed to single-country risk. But given the strong returns the US stock market has generated over the past century, I think the potential rewards outweigh this risk.

Foolish takeaway

These Vanguard ETFs offer three different approaches.

The VTEK ETF focuses on global technology, the VDAL ETF provides broad exposure across world share markets, and the VTS ETF covers the US market from its largest companies to much smaller ones.

I think all three deserve a closer look and could be great additions to a balanced portfolio.

The post 3 excellent Vanguard ETFs I would buy with $10,000 appeared first on The Motley Fool Australia.

More reading

• 3 Vanguard ETFs to buy with $30,000
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• Why I think these Vanguard ETFs are strong buys

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.

August is almost here, and if I could buy only one ASX share for the month, ResMed Inc. (ASX: RMD) would be it.

I have covered the sleep health leader plenty of times, but the size of the opportunity still surprises me.

Here is why ResMed remains my highest-conviction pick.

The market is still barely penetrated

ResMed is often described as a maker of sleep apnoea devices and masks. That is accurate, but it understates the opportunity.

The company estimates that more than 1 billion people worldwide live with sleep apnoea. Yet fewer than 20% of patients in the United States and fewer than 10% across the rest of the world are diagnosed or treated.

That leaves an enormous gap between the number of people who could benefit from treatment and the number currently receiving it.

ResMed expects the number of US adults with obstructive sleep apnoea to reach around 77 million by 2050, roughly 35% above 2020 levels.

Ageing populations, higher average body mass indexes, and rising prevalence among women could all contribute.

I think ResMed can grow for years simply by helping more people move from poor sleep and an undiagnosed condition into treatment.

More than an initial device sale

The economics become even more attractive after a patient begins therapy.

A device may stay in use for years, while masks and other components need regular replacement. ResMed expects the global device market to grow at a mid-single-digit rate and the mask market at a high-single-digit rate.

I particularly like the mask opportunity because it creates repeat demand and recurring revenue from a growing installed base.

ResMed also has connected technology that helps patients and healthcare providers monitor therapy. Better engagement can improve adherence and keep the company involved throughout the treatment journey.

This is why I see ResMed as a sleep health platform rather than a business relying on one product sale.

A new move into restless legs syndrome

ResMed is widening that platform through Noctrix and its Nidra therapy for refractory moderate-to-severe restless legs syndrome (RLS).

RLS affects around 7% of adults globally and is the third most common sleep disorder after sleep apnoea and insomnia. ResMed estimates an addressable population of around 17 million US adults, including approximately 1.7 million with refractory moderate-to-severe RLS.

I think this is a logical area for the ASX share to enter. It already understands sleep medicine, works with many relevant clinicians, and knows how to bring connected home-based therapy to patients.

Noctrix is expected to contribute around US$30 million of revenue in FY27 while reducing earnings per share slightly as it invests in growth.

I am comfortable with that near-term cost. I like that the company is using its financial strength to build another meaningful sleep health business.

Foolish takeaway

My conviction on this ASX share comes from looking beyond the next result. Most potential patients remain untreated, recurring mask demand can grow faster than devices, and adjacent sleep disorders create new paths forward.

I think the share market can still underestimate how much larger ResMed may become.

With August almost here, and its shares down around 33% from their high, I think now is a great time to invest.

The post My highest-conviction ASX share for August appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
• 5 ASX shares I'd buy with $5,000 in August
• My top ASX 200 stock picks for August
• 3 simple ways to build a $50,000 passive income from ASX shares
• Down 31%: Is there any chance of a rebound from ResMed shares?

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

Do you have $5,000 available to put to work in shares from the S&P/ASX 300 Index (ASX: XKO)?

If you do, I think Temple & Webster Group Ltd (ASX: TPW), Catapult Sports Ltd (ASX: CAT), and Web Travel Group Ltd (ASX: WEB) could be top picks.

This is why I would be happy to buy all three ASX 300 shares with the money.

Temple & Webster shares

I think Temple & Webster has become more interesting after its 77% share price decline over the past year.

The online furniture and homewares retailer offers an enormous selection of products without carrying the store network of a traditional retailer. Its supplier-led model also gives it freedom to add products quickly and learn what customers want.

Repeat purchases accounted for 62% of first-half orders, while exclusive products represented almost half of revenue.

That suggests to me that Temple & Webster is becoming somewhere people return to, rather than a website they visit once for a sofa.

Home improvement, trade customers, and the early New Zealand expansion give it additional ways to grow. Profit margins remain modest, but I think the shift towards buying household products online has much further to run.

Catapult Sports shares

Catapult is often described through its wearable devices, but I think that now misses much of the opportunity.

Professional teams make connected decisions about recruitment, tactics, training, injuries, and player development. This ASX 300 share is building software across more of that process.

Its recent launch of IMPECT Video Scouting is a good example. The product helps football clubs assess players and teams through video and performance data, taking Catapult further into recruiting and opposition analysis.

I like the possibility that different departments inside the same club could rely on Catapult products. A customer may begin with athlete monitoring and later add video, scouting, or strength-training technology.

That could lift revenue from existing teams while making the relationship harder to replace.

Catapult still needs to keep converting recurring revenue growth into cash and profit. I think its widening role inside professional sport makes the story more interesting than another discussion about wearable trackers.

Web Travel Group shares

Web Travel Group should not be confused with Webjet Group Ltd (ASX: WJL). Its WebBeds business operates a global marketplace connecting hotels with travel companies that need rooms for their customers.

I like the model because Web Travel does not need to own hotels or sell directly to holidaymakers. It becomes more valuable by adding accommodation supply, attracting more travel buyers, and helping both sides complete more bookings.

Its update this week gave me greater confidence. Management expects first-half revenue to rise by 11% to 15%, while transaction margins are forecast to improve.

The board also announced a share buyback of up to $90 million because it believes the market is undervaluing the company's trading performance and outlook.

Travel disruptions and currency movements can make results uneven. Even so, I think organic growth, improving margins, and strong cash conversion make Web Travel an attractive ASX 300 share.

Foolish takeaway

I think Temple & Webster, Catapult, and Web Travel are all at stages where strong execution could lead to much larger businesses over time.

There are likely to be setbacks along the way. However, I think their expanding markets and improving business models give patient investors plenty to be excited about.

For me, all three ASX 300 shares look like buys today.

The post 3 growing ASX 300 shares I'd buy with $5,000 appeared first on The Motley Fool Australia.

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• Web Travel Group flags higher first-half profits and $90m buy-back

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

The Australian share market offers plenty of good companies, but it represents only a small slice of the global investment opportunity.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) gives investors a simple way to look much further afield.

So, would I buy the VGS ETF today?

What does the VGS ETF own?

The VGS ETF holds around 1,250 companies from developed markets outside Australia.

The United States accounts for close to three-quarters of the fund, with smaller exposures to countries including Japan, the United Kingdom, Canada, France, Switzerland, and Germany.

Its largest holding is NVIDIA, which has become a key supplier of the advanced chips used for artificial intelligence.

Apple and Microsoft are also among the largest positions. These businesses give investors exposure to smartphones, personal computing, cloud services, software, cybersecurity, and artificial intelligence.

Amazon adds exposure to online retail and cloud computing, while Alphabet earns money from search advertising, YouTube, cloud services, and other digital products.

I like that one ASX investment can provide access to so many businesses that are difficult to find locally.

Why would I buy it?

I think the main attraction is that investors do not need to predict which company or industry will lead the market over the next decade.

The VGS ETF owns current giants such as Broadcom and Meta Platforms, but the portfolio will change as markets evolve.

Companies that grow in value can become larger holdings, while declining businesses gradually lose influence. New market leaders can enter the index without investors needing to identify them in advance.

That makes the fund a straightforward way to participate in global business growth.

The management fee is 0.18% per annum, which I think is reasonable for exposure to more than 1,000 international shares.

What should investors consider?

The VGS ETF is diversified across many companies, but its largest positions and heavy US exposure still influence returns.

Technology valuations are relatively high, and a sell-off involving NVIDIA, Apple, Microsoft, or other major holdings could pull the fund lower.

It also excludes Australian shares and emerging markets. Investors seeking exposure to China, India, Taiwan, or other developing economies would need to look elsewhere.

Currency movements can affect returns as well because the fund is not hedged to the Australian dollar. A rising Australian dollar can reduce the value of overseas investments when translated back into local currency, while a weaker dollar can provide a boost.

I would therefore expect periods of volatility in its performance, even though the fund owns hundreds of established businesses.

Foolish takeaway

Yes, I would buy the VGS ETF today with a long investment horizon.

It provides broad access to global companies including NVIDIA, Apple, Microsoft, Amazon, and Alphabet, while also owning hundreds of businesses beyond the familiar technology giants.

I particularly like that the portfolio can evolve as new companies rise and older market leaders fade.

The VGS ETF will still experience market falls, currency movements, and periods when its largest holdings look expensive. However, I think its diversification, low fee, and exposure to many of the world's strongest businesses make it an excellent buy-and-hold investment.

The post Should I buy the Vanguard MSCI Index International Shares (VGS) ETF today? 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 positions in and has recommended Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Treasury Wine Estates Ltd (ASX: TWE) shares have been through a painful period and seem to have found more sellers than buyers over the past few years.

This has left the wine giant trading around $4.97 today, which is a world away from its 2023 levels of close to $15.00.

Why have the shares fallen?

Treasury Wine owns some valuable brands, led by Penfolds, but brand strength has not protected the company from a difficult operating environment.

The business has been dealing with weaker demand, excess inventory, and distribution challenges across major markets including China and the United States.

Those problems have placed pressure on sales and profitability. They have also damaged investor confidence because Treasury Wine now needs to show that products are reaching consumers rather than simply moving into distributor warehouses.

Management is responding by reducing costs, simplifying the business, tightening control over inventory, and reshaping its American operations.

I think those changes are necessary, even though the recovery is unlikely to be quick or perfectly smooth. The company needs to rebuild confidence through several reporting periods rather than one encouraging announcement.

What does the valuation look like?

According to CommSec consensus estimates, earnings per share are expected to fall to 31.2 cents in FY26 before recovering to 38.1 cents in FY27 and 40 cents in FY28.

At $4.97, Treasury Wine shares trade on a PE ratio of approximately 15.9 times FY26 earnings, 13 times FY27 earnings, and 12.4 times FY28 earnings.

Those multiples look low for a company with Penfolds and a portfolio of established premium wine brands.

The valuation suggests the market doubts whether the forecast recovery will arrive. I can understand that caution after the recent setbacks, although I think investors are now being compensated for accepting the uncertainty.

If Treasury Wine returns to earning 40 cents per share and rebuilds momentum beyond FY28, I think today's price could look extremely attractive in hindsight.

What about the dividend?

Treasury Wine has suspended its dividend while it protects capital and works through its current problems.

Consensus estimates do not include a dividend across the forecast period provided. That would likely make the shares unsuitable for anyone who needs dependable income today.

However, I think the dividend could return earlier if earnings, cash generation, and the balance sheet recover more quickly than expected.

Are Treasury Wine shares dirt cheap?

I think the answer is yes, although this is a turnaround investment rather than an obvious bargain with nothing to worry about.

Penfolds remains a globally recognised luxury brand, and Treasury Wine still has distribution, winemaking expertise, vineyards, and customer relationships that would be difficult to recreate.

The challenge is converting those strengths into dependable earnings again.

Consumer preferences can change, premium wine demand may remain weak, and the clean-up across China and the United States could take longer than hoped. Further disappointments would probably create more volatility.

Foolish takeaway

At around 12 times forecast FY28 earnings, I think Treasury Wine shares are dirt cheap if the business returns to form.

The market is giving investors a chance to buy valuable brands while confidence is low and the recovery remains uncertain.

I would be prepared to accept that uncertainty because the current price offers considerable upside if management stabilises the business, restores earnings growth, and eventually reinstates the dividend.

The post Are Treasury Wine shares dirt cheap at under $5? 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 positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have long been popular with investors seeking passive income.

The mining giant regularly returns billions of dollars to shareholders through dividends, although the size of those payments can change considerably from year to year.

So, what income could a $100,000 investment produce at the current BHP share price?

Why income investors like BHP

BHP owns a collection of large mining operations that can generate enormous profits when commodity markets are favourable.

I think its scale is a major attraction. The company can invest in its operations, strengthen its balance sheet, fund new projects, and return surplus money to shareholders.

Dividends have been an important part of that capital allocation.

However, BHP is not the type of company I would expect to pay an identical dividend every year. Earnings are influenced by commodity prices, production volumes, operating costs, exchange rates, and demand from major economies.

That means the income can be generous during strong periods and lower when market conditions become less favourable.

As a result, I think investors need to accept that variability before buying BHP shares primarily for passive income.

What are analysts expecting?

BHP shares are currently trading around $59.15.

According to CommSec consensus estimates, the company is forecast to generate earnings per share of $3.49 in FY26 and $3.61 in FY27.

Those earnings are expected to support fully franked dividends per share of $2.17 in FY26 and $1.93 in FY27.

The forecasts imply dividend payout ratios of approximately 62% and 53%, respectively.

I like that the expected dividends leave some earnings inside the business. BHP still needs money to maintain its operations, develop future production, and protect the balance sheet through weaker commodity cycles.

How much passive income could $100,000 produce?

At $59.15 per share, a $100,000 investment could purchase approximately 1,690 BHP shares before brokerage.

Based on the FY26 dividend forecast of $2.17 per share, those shares could generate around $3,667 of annual passive income.

The forecast FY27 dividend of $1.93 per share would produce approximately $3,262.

That represents forward dividend yields of around 3.7% and 3.3%, respectively.

Both forecasts are fully franked, which could increase the value of the income for eligible Australian investors.

Should I buy BHP shares for passive income?

I think BHP could be a good income investment for someone comfortable with changing dividends.

The forecast dividend yields are not exceptionally high at the current share price. However, investors are also gaining exposure to a financially strong global miner with the ability to return substantial amounts of money when conditions allow.

Foolish takeaway

A $100,000 investment in BHP shares could generate approximately $3,667 in FY26 passive income, falling to around $3,262 in FY27 based on current forecasts.

That may not be enough for investors chasing the highest possible yield, but I think BHP offers more than the next dividend payment.

For investors prepared to accept a variable income stream, the mining giant could still be a strong long-term share to own.

The post How much passive income would $100,000 of BHP shares make? 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Coles Group Ltd (ASX: COL) share price is trading around $24.38, only slightly below its 52-week high of $24.59.

I can understand why investors have been willing to pay more for the supermarket giant. Coles offers defensive earnings, a growing dividend, and several opportunities to become a better retailer.

But does the current share price still represent good value?

Why I like Coles shares

Coles sells products Australians need every week, regardless of whether the economy is booming or household budgets are under pressure.

That recurring demand gives the business a level of stability that many other retailers cannot match.

I also think Coles has become more than a simple supermarket story.

Its investment in automated distribution centres should help improve the movement of products through the supply chain, reduce manual handling, and support better availability in stores.

Online grocery shopping is another important opportunity. Customers increasingly expect to shop through an app, collect an order, or have groceries delivered at a convenient time. Coles has the store network, customer relationships, and scale to keep improving that experience.

Flybuys also gives the company valuable insight into how customers shop. Coles can use that information to personalise offers, encourage repeat visits, and make promotions more relevant.

Private-label products could support growth as well. They allow Coles to offer shoppers lower-priced alternatives while potentially earning stronger margins than it would on some branded products.

I think these investments can help the company grow earnings even if supermarket sales only increase gradually.

Is the valuation getting expensive?

According to CommSec consensus estimates, Coles is forecast to generate earnings per share of 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

At a share price of $24.38, Coles shares trade on a PE ratio of approximately 27.1 times FY26 earnings, 25.2 times FY27 earnings, and 21.8 times FY28 earnings.

I would not describe those multiples as cheap for a supermarket business.

However, the valuation becomes easier to justify if Coles can deliver the expected earnings growth through improving efficiency, stronger online sales, and disciplined cost management.

The income outlook also adds something to the investment case.

CommSec consensus forecasts are for dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28. Those estimates imply forward dividend yields of approximately 3.1%, 3.4%, and 3.9%, respectively.

What could go wrong?

Supermarkets may appear simple, but they operate on thin profit margins.

Higher wages, transport expenses, energy costs, and investment in lower prices can quickly place pressure on earnings. Coles also faces competition from Woolworths Group Ltd (ASX: WOW), Aldi, Costco (NASDAQ: COST), and independent retailers.

If earnings growth falls short of expectations, the current valuation could leave the shares vulnerable to a pullback.

Foolish takeaway

I think the Coles share price is starting to look expensive at around $24.38.

The business remains attractive, and I would still consider it a reasonable option for buy-and-hold investors who value defensive demand, dividends, and gradual earnings growth.

However, the share price is close to its 52-week high and already reflects a fair amount of optimism.

I would be more enthusiastic about buying after a pullback. A lower entry price would provide a better dividend yield and more room for the company's long-term progress to translate into attractive returns.

The post Is the Coles share price good value or expensive? 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 positions in and has recommended Costco Wholesale. 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.

August is almost here, and I think the S&P/ASX 200 Index (ASX: XJO) is offering several attractive opportunities for long-term investors.

The three ASX 200 stocks below stand out to me because they have strong market positions and several ways to keep growing.

Here is why they are among my top picks for the month ahead.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat is becoming a much broader business than its traditional gaming machine operations may suggest.

The company now creates gaming content across land-based casinos, social casino apps, and regulated online real-money gaming. I think that gives Aristocrat more ways to use its technology, brands, and understanding of player preferences.

Its established gaming operations remain highly valuable. Aristocrat finished the first half with more than 77,200 machines in its North American installed base and an estimated 43% market share.

Those machines can generate recurring revenue while giving the company a large network through which to introduce new games.

I also like the potential for its digital businesses to improve over time. Product Madness can benefit from directing more customer spending through its own channels, while Aristocrat Interactive is expanding its content and online lottery capabilities.

Gaming regulation and changing player preferences are risks to consider, but Aristocrat's content, scale, and distribution make it one of my favourite ASX 200 growth shares.

REA Group Ltd (ASX: REA)

Property decisions usually begin long before someone speaks to an agent or applies for a mortgage. Australians may spend months watching prices, comparing homes, checking estimates, and researching suburbs through realestate.com.au.

I think those repeated visits are incredibly valuable. In fact, almost 13 million Australians use the platform on average each month according to its latest update. That enormous audience encourages agents and developers to advertise where buyers and sellers are already looking, strengthening REA's market position.

The company can then increase revenue through premium listings, seller leads, property data, automated valuations, and financial services.

I particularly like the opportunity to help consumers across more of the property journey rather than only displaying a listing. The ASX 200 stock already owns Mortgage Choice and PropTrack, giving it ways to connect its audience with finance and deeper property information.

As a result, I think REA's audience and data would be extremely difficult for a competitor to recreate, which could make it a great long-term investment.

ResMed Inc. (ASX: RMD)

A third ASX 200 stock I think is a top pick for August is ResMed.

This sleep technology company can begin earning revenue when a patient receives a device, but the relationship does not end there. Patients regularly need masks, replacement parts, monitoring, and support to continue their treatment. I think this ongoing relationship is a key strength of the business.

Masks and other product revenue increased by 15% in the latest quarter, while total revenue rose by 11%. Operating income grew by 17%, showing that ResMed is also turning higher sales into stronger profit growth.

Importantly, the longer-term opportunity remains substantial because sleep apnoea and other breathing disorders are widely underdiagnosed.

I think greater awareness and easier testing could bring more people into treatment, while ResMed's global distribution and connected technology should help it serve those patients over many years.

Overall, I think this means ResMed is well placed to keep growing over the next decade.

Foolish takeaway

Aristocrat, REA, and ResMed have each built advantages that took many years to develop.

I think those positions give them room to earn more from existing customers while continuing to reach new markets and users.

The shares may experience volatility, particularly where valuations reflect strong expectations. With a long holding period, I think all three are excellent ASX 200 stocks to consider buying in August.

The post My top ASX 200 stock picks for August appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
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• 3 simple ways to build a $50,000 passive income from ASX shares
• Down 31%: Is there any chance of a rebound from ResMed shares?

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

BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp (ASX: WBC) are all major Australian companies with plenty going for them.

For me, the difference comes down to the price investors are being asked to pay for their future earnings.

Here is my buy, hold, and sell verdict.

Buy: BHP shares

BHP is my buy at around $60.18.

Based on CommSec consensus estimates, the shares trade on a PE ratio of approximately 17.2 times FY26 earnings and 16.7 times FY27 earnings.

I think that is a reasonable price for a miner with BHP's scale, high-quality operations, and ability to generate substantial cash when commodity markets are favourable.

What I like is the range of options available to management when its cash flow is strong. BHP can invest in its existing operations, develop new sources of production, strengthen the balance sheet, or return excess cash to shareholders.

Speaking of which, CommSec consensus forecasts are for fully franked dividends per share of $2.17 in FY26 and $1.93 in FY27. Those estimates imply dividend yields of around 3.6% and 3.2%, which I think are attractive.

The earnings and dividends will remain sensitive to commodity prices. But at the current valuation, I think the potential return is attractive enough to justify buying.

Hold: Wesfarmers shares

Wesfarmers is an ASX share I would feel comfortable owning for many years.

Its strength extends beyond the key Bunnings and Kmart brands. I also like the company's culture, disciplined approach to capital allocation, and willingness to move away from investments that no longer offer attractive returns.

OnePass, customer data, digital channels, healthcare, and lithium could all support further growth.

My hesitation now is entirely to do with valuation. At approximately $90.61, Wesfarmers trades on around 35.5 times forecast FY26 earnings and 33.1 times FY27 earnings, according to CommSec consensus estimates.

I think Wesfarmers can continue growing, but the current share price already reflects considerable confidence in that outcome.

I would happily hold the shares if I already owned them. But I would wait for a more attractive entry point before adding substantially, making Wesfarmers a hold for me.

Sell: Westpac shares

Westpac remains a large and profitable bank with a strong customer base and fully franked dividends.

At around $37.94, I think investors are paying too much for the expected growth.

The shares trade on approximately 17.9 times FY26 earnings and 17.7 times FY27 earnings. Analysts expect earnings per share to increase only slightly from $2.12 to $2.14 across those years.

Forecast dividends of $1.54 and $1.55 per share imply yields of approximately 4.1%.

The income may still attract some investors, but Westpac faces a difficult environment. Higher interest rates can place more pressure on borrowers, while strong mortgage and deposit competition could restrict margins and earnings growth.

I do not think Westpac is a bad business. I simply think there are better combinations of growth, quality, and valuation available elsewhere.

Foolish takeaway

BHP offers the most attractive balance between valuation and long-term potential, making it my buy.

Wesfarmers remains an excellent company, although I think its premium valuation makes holding the better choice today.

Westpac still has positive qualities, but limited forecast earnings growth and a relatively full valuation make it my sell.

The post Buy, hold, sell: BHP, Wesfarmers, and Westpac shares appeared first on The Motley Fool Australia.

More reading

• Want a pay rise? These ASX dividend stocks could deliver one
• How to build an ASX dividend portfolio that pays you for life
• Chasing early retirement? These ASX shares and ETFs could help
• Are Wesfarmers shares a buy in August?
• How much could a $400,000 ASX share portfolio pay in dividends?

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

Pro Medicus Ltd (ASX: PME), WiseTech Global Ltd (ASX: WTC), and Netwealth Group Ltd (ASX: NWL) have all fallen heavily from their highs.

I think those declines have made their valuations far more attractive, even though each company still has something to prove.

Here is why I would buy all three ASX tech stocks before August.

Pro Medicus shares

Pro Medicus shares are trading around $163.94, roughly 50% below their high.

That decline gets my attention because I do not think the need for its Visage imaging software has weakened.

Hospitals are producing more scans, while radiologists are being asked to work through larger image files. Visage helps medical teams access those images quickly across healthcare networks.

I think the next stage could be just as exciting. Pro Medicus is expanding beyond radiology into cardiology and digital pathology, while cloud deployments make the system easier to use across multiple sites.

Its transaction-based contracts can also grow as customers perform more examinations. The company can therefore earn more from an existing hospital without constantly winning new customers.

This ASX tech stock is still not conventionally cheap, and another de-rating is possible. Even so, I think a 50% fall has made the valuation far more attractive.

WiseTech Global shares

WiseTech shares have fallen harder and are down around 70% from their 52-week high.

I won't pretend the story is tidy. The logistics software company faces questions around leadership, governance, customer migrations, its new commercial model, and artificial intelligence.

But, importantly, its CargoWise platform remains deeply embedded in the daily work of logistics companies. Customs, freight forwarding, warehousing, transport, and compliance all need to connect across countries.

Replacing software at the centre of those operations can be expensive and disruptive. I think that gives WiseTech time to improve CargoWise, add capabilities, and broaden its reach through e2open.

AI could also help customers automate paperwork and repetitive decisions inside a system they already use.

The uncertainty may keep the share price volatile. But at 70% below its high, I think the potential reward now justifies taking that risk.

Netwealth Group shares

Netwealth shares are trading around $21.84, down approximately 43% from their 52-week high.

The ASX tech stock provides technology that helps financial advisers administer investments, superannuation, retirement savings, and managed accounts.

I like that its software sits behind work advisers complete every day. As client portfolios become more complicated, advisers need systems that can reduce administration and give them a clearer view of household wealth.

That can make the relationship difficult to walk away from. Moving client records and investment structures to another provider is not a decision an advice firm would make casually.

Further, Netwealth can grow as existing advisers bring more client money onto the service and new firms adopt its technology. Its digital tools can also help advisers serve more clients without adding the same amount of administration.

The share price fall has reduced the premium investors once paid. I think this makes it a much more inviting entry point.

Foolish takeaway

Pro Medicus still carries a premium valuation, WiseTech faces execution and governance questions, and Netwealth operates in a competitive industry.

I am comfortable with those uncertainties because the prices now leave more room for them to surprise on the upside.

Because of this, before August arrives, I would be happy to buy all three ASX tech stocks and hold them through further volatility.

The post Down 40% to 70%. Why I'd buy these ASX tech stocks before August appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• WiseTech, Cochlear, CSL shares: Buy, sell or hold?
• A rare buying opportunity in 1 of Australia's top shares?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and WiseTech Global. 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 Netwealth Group and WiseTech Global. 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.

Woolworths Group Ltd (ASX: WOW) shares have had an excellent year.

The supermarket giant has climbed around 30% over the past 12 months and reached a new 52-week high this week.

That is great news for existing shareholders, but it also makes the decision to buy today more difficult.

Why investors have returned

I think Woolworths is beginning to regain some of the confidence it lost after a difficult period.

The company has been investing in lower prices, product availability, convenience, and the overall shopping experience. Those efforts appear to be helping it reconnect with customers and improve sales momentum.

Australian Food sales rose by 5.9% during the third quarter, while group online sales increased by more than 20%.

I like the online progress because it strengthens the relationship Woolworths has with customers. Shoppers can move between stores, home delivery, and click-and-collect depending on what suits them that week.

Everyday Rewards adds another layer by giving Woolworths a better understanding of customer behaviour. That data can help the company personalise offers, improve promotions, and encourage shoppers to return more often.

The automated distribution centres should also support the business over time. Moving products more efficiently through the supply chain could improve availability and reduce some of the costs involved in serving a large store network.

I think these investments can make Woolworths a stronger retailer, even if their full benefit takes time to appear.

What does the valuation look like?

At a share price of around $40.55, Woolworths trades on a price-to-earnings (PE) ratio of 31 times forecast FY26 earnings, based on the consensus estimate of $1.30 per share.

The valuation falls to roughly 27 times FY27 earnings and 25 times FY28 earnings, using consensus forecasts of $1.48 and $1.64 per share.

Those multiples are quite high for a mature supermarket business, but if its growth continues beyond this forecast period, today's valuation may become easier to justify.

The dividend could grow as well.

Consensus estimates point to dividends per share of 99.5 cents in FY26, $1.13 in FY27, and $1.28 in FY28. At the current price, those forecasts imply dividend yields of approximately 2.5%, 2.8%, and 3.15%.

What could disappoint investors?

The market now expects Woolworths to keep improving.

That leaves less room for weak sales, higher costs, or delays in the benefits from its supply chain investments.

Competition also remains intense. Coles Group Ltd (ASX: COL), Aldi, Costco, and independent retailers all give shoppers reasons to compare prices, while households remain highly focused on value.

Woolworths may need to keep investing heavily in prices to maintain its momentum, which could place pressure on margins.

Foolish takeaway

I still think Woolworths shares could be a buy for investors prepared to hold them for many years.

The company has defensive demand, a valuable loyalty program, a growing online operation, and opportunities to become more efficient.

The 30% rally means investors are paying a much fuller price for those qualities. I would therefore prefer to begin with a modest position or wait for a pullback before investing more heavily.

Nevertheless, Woolworths remains a business I would be happy to own. But at around $40.55, I think the shares are a long-term buy rather than an obvious bargain.

The post Up 30%, are Woolworths shares still a buy? appeared first on The Motley Fool Australia.

More reading

• 3 simple ways to build a $50,000 passive income from ASX shares
• How much could the Woolworths share price rise in the next year?
• Are Coles, Wesfarmers or Woolworths shares a better buy right now?
• Why I'd buy Woolworths, ResMed, and CBA shares
• How much is needed in superannuation to target a $3,000 monthly passive 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 positions in and has recommended Costco Wholesale. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is home to many blue-chips.

Among the most popular are shares in Goodman Group (ASX: GMG), Sigma Healthcare Ltd (ASX: SIG), and Qantas Airways Ltd (ASX: QAN).

But are they buys now? Here's why I think they are.

Goodman Group shares

Goodman's most valuable asset may no longer be the warehouse itself.

The industrial property company controls well-located sites with access to consumers, infrastructure, and large electricity connections. That last requirement has become especially important as artificial intelligence and cloud computing increase demand for data centres.

Land can be found, but securing enough power in a major city can take years. I think Goodman's work assembling both gives it an advantage that cannot be quickly copied.

The ASX 200 blue-chip share can also develop projects alongside capital partners, allowing it to earn management and development income while sharing the cost of new facilities.

Data centres now dominate its development pipeline, while logistics remains a valuable business serving retailers, manufacturers, and distributors.

The shares usually command a premium, and construction delays could create volatility. I still think Goodman is one of the strongest ways to invest in the physical infrastructure behind the digital economy.

Sigma Healthcare shares

Sigma has become a different business since combining with Chemist Warehouse.

The merged company brings together pharmacy retail brands, a large franchise network, and a national wholesale and distribution operation. I think that scale gives Sigma several ways to improve rather than relying only on opening more stores.

A larger group can negotiate across more products, spread technology and marketing costs over a wider network, and use its distribution infrastructure more efficiently. It can also develop private-label products and health services that deepen customer relationships.

Competition remains strong, and Sigma still needs to integrate the businesses smoothly while protecting the value proposition that made Chemist Warehouse successful.

Overall, I think the merger has created a healthcare platform with more potential than either company had alone.

Qantas Airways shares

Airlines are traditionally difficult investments. Fuel prices can change quickly, disruptions are expensive, and customers remember poor service. Qantas has all those risks, yet I think its collection of assets is difficult to recreate.

The group combines a leading domestic network, valuable airport slots, Qantas and Jetstar, a large loyalty program, and a recognised international brand.

The loyalty division particularly interests me because it keeps Qantas connected with customers even when they are not flying. Credit cards, retail partners, rewards, and frequent-flyer activity can produce earnings that are less directly tied to jet fuel.

Fleet renewal and Project Sunrise should also improve the customer experience and gradually replace older, less efficient aircraft.

I expect plenty of volatility, but I think Qantas has more resilience than a basic airline description suggests.

Foolish takeaway

When looking for ASX 200 blue-chip shares, I want advantages that have taken years to build and a credible reason for the business to become more valuable.

These three companies meet that test for me and are all worth owning for the long-term.

The post 3 ASX 200 blue-chip shares I'd buy now appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
• What do Microsoft's strong earnings mean for these ASX shares?
• Why this top broker expects Qantas shares to soar 25%
• Is the Qantas share price a buy for its 6% dividend yield?
• 5 ASX 200 shares I would buy and hold for 10 years

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

A $50,000 annual passive income from ASX shares could change the way someone lives.

It could cover everyday expenses, make retirement more comfortable, or provide the freedom to spend less time working.

Very few people will begin with enough money to generate that income straight away. I think the more realistic path is to build wealth first, give compounding time to work, and gradually turn that capital into a dependable income stream.

Here are three ways I would approach it.

Build capital from scratch

For investors starting with little or no money invested, I would initially focus on growing the value of the portfolio.

Regular contributions could be directed towards quality blue-chip shares and businesses capable of increasing earnings over many years.

Commonwealth Bank of Australia (ASX: CBA) could provide exposure to a leading bank with a strong deposit franchise, digital capabilities, and fully franked dividends.

Macquarie Group Ltd (ASX: MQG) could add long-term growth through its global operations across asset management, infrastructure, commodities, banking, and investment markets.

I would also consider healthcare companies such as ResMed Inc. (ASX: RMD), which has recurring demand for masks, accessories, and software alongside sales of sleep apnoea devices.

The early dividends could be reinvested to buy more shares, while regular contributions continue increasing the portfolio balance.

I think the main priority at this stage should be total return rather than chasing the highest income. Once the portfolio becomes large enough, some growth holdings could be retained while new money is gradually directed towards stronger dividend payers.

Focus on dependable dividend growth

If I already had a sizeable amount ready to invest, I would be drawn to established companies with dependable dividends and a good chance of increasing those payments over time.

A portfolio worth around $1.25 million with an average dividend yield of 4% could generate approximately $50,000 per year before tax.

CBA could again have a place in this approach, although its starting yield may be lower than other income shares.

Woolworths Group Ltd (ASX: WOW) could provide relatively defensive earnings because grocery demand continues through changing economic conditions. Its dividends may also grow if sales, margins, and cash generation improve over time.

I think accepting a lower starting yield can make sense when the underlying businesses are financially strong and capable of producing a larger income stream in future years.

Seek a higher starting income

A portfolio worth around $1 million and yielding 5% could also produce $50,000 annually.

National Australia Bank Ltd (ASX: NAB) could contribute fully franked dividends supported by its banking operations and leading position in business banking.

Telstra Group Ltd (ASX: TLS) may provide steadier demand because mobile and internet services remain part of everyday life for households and businesses.

APA Group (ASX: APA) could add income from energy infrastructure assets, while selected real estate investment trusts may offer another source of distributions.

I would still avoid choosing shares only because their yields look high. A large payout provides little comfort if earnings weaken and the dividend is later reduced.

The balance sheet, cash generation, and outlook for future payouts would guide my decisions.

Foolish takeaway

I think building a $50,000 passive income will look different depending on where an investor begins.

Someone starting from scratch may spend years concentrating on capital growth, regular contributions, and reinvested dividends before shifting towards income.

Investors with more capital already available may be able to focus immediately on dependable dividend shares or pursue a somewhat higher starting yield.

Whichever path is chosen, I think patience and dividend quality should be more important than reaching the goal as quickly as possible.

The post 3 simple ways to build a $50,000 passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
• Growth or yield? These tax rules are reshaping ASX portfolios
• Want a pay rise? These ASX dividend stocks could deliver one
• How to build an ASX dividend portfolio that pays you for life
• Chasing early retirement? These ASX shares and ETFs could help

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, and Telstra Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The DroneShield Ltd (ASX: DRO) share price suffered a sharp fall on Tuesday.

The counter-drone technology company sank 13% to $1.81, taking its decline over the past 12 months to around 40%.

Has that weakness created a buying opportunity?

Why did DroneShield shares fall?

The sell-off followed a trading update that contained plenty of growth, but also gave investors reasons to remain cautious.

DroneShield expects first-half revenue of $125.8 million, up 74% on the prior corresponding period. Its committed FY26 revenue has reached $206 million, equal to 95% of the revenue generated across all of FY25.

Management now expects FY26 revenue of between $250 million and $270 million, representing growth of 15% to 25%.

Those figures show the business is still expanding quickly. However, I think the market may have focused on the expected first-half gross margin of 60%, down from 65% a year earlier.

DroneShield attributed the decline to sales mix, currency movements, third-party hardware, and costs identified during its production relocation and new business system rollout.

I think investors may also have hoped for a stronger full-year outlook after the company's earlier growth. Expectations remain high, which can produce severe share price reactions when an update falls short of what the market imagined.

What caught my attention?

I think there was still plenty to like. DroneShield announced $23.2 million of European military contracts covering vehicle-mounted counter-drone systems, subscriptions, warranties, and services. Around $21 million is expected to contribute to FY26 committed revenue.

The company also introduced RfAI-3, the latest version of its radio frequency detection engine.

The technology is designed to identify emissions from drones that are not already included in existing signature libraries. I think that capability could become increasingly valuable as drones, signals, and tactics continue changing.

Initial next-generation hardware releases are expected during the second half of 2026, with further products planned for 2027.

I also like the recurring revenue opportunity. Software, subscriptions, and long-term services contributed an estimated $14.2 million during the first half. This represents 11.3% of total revenue. There is still work ahead before software becomes a much larger part of the business, but I feel the early progress is encouraging.

Is the share price good value?

At $1.81, DroneShield shares are cheaper, but they are not obviously cheap.

Based on current CommSec consensus estimates, the company is valued at approximately 70 times FY26 earnings, 42 times FY27 earnings, and 24 times FY28 earnings.

Those later multiples could prove attractive if DroneShield delivers the expected growth, protects margins, and turns its expanding hardware base into more subscription revenue.

Foolish takeaway

I think Tuesday's fall has created a buying opportunity for patient growth investors.

The latest update did not remove the risks, and I expect the DroneShield share price to remain highly volatile. However, revenue is growing, committed work is substantial, and the next product cycle could support further expansion.

At $1.81, I think the potential long-term return has improved enough to justify buying, provided investors keep the position size sensible and can tolerate further sharp falls.

The post Down 40%, is the DroneShield share price good value? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
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• Why these 3 ASX 200 stocks are crashing in this week's surging market
• $10,000 invested in DroneShield shares 5 years ago is now worth…
• 8 ASX 200 shares with strengthened buy ratings this week

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

This week, Morgans highlighted three ASX shares that it believes offer attractive upside.

The companies operate in funds management, uranium production, and wealth management, giving investors several different growth stories to consider.

Here is why the broker has buy ratings on all three.

Regal Partners Ltd (ASX: RPL)

Regal Partners is an alternative investment manager with exposure to strategies across private markets, credit, resources, and other specialist areas.

The company recently released its preliminary results for the first half of 2026, and Morgans described it as another good result.

Funds under management, performance fees, and net profit all increased during the period. However, the Regal Partners share price has fallen since the update.

Morgans believes the weakness may reflect slightly lower funds under management and management fee revenue than expected. However, the broker views that impact as relatively minor because fund performance is the more important indicator of future inflows and growth.

I think that distinction is important. Strong investment performance can attract new client money and increase performance fees, potentially supporting earnings over time.

The broker also believes the valuation remains relatively undemanding, with the shares trading on around nine times forecast 2027 earnings.

Morgans has retained its buy rating and reduced its price target from $4.20 to $4.00.

With Regal Partners shares trading around $2.68, the new target is approximately 49% above the current price.

Paladin Energy Ltd (ASX: PDN)

Paladin Energy received a positive response from Morgans after delivering a strong fourth quarter from its Langer Heinrich uranium mine.

Production was 6% ahead of both Morgans' forecast and market expectations. Sales also exceeded the broker's estimate by 16% and consensus expectations by 12%, while costs came in better than anticipated.

Paladin also exceeded its FY26 guidance targets for production, sales, and costs.

Morgans noted that the Langer Heinrich ramp-up is now formally complete, with full mining and processing operations achieved during the quarter.

I think reaching that point removes an important source of uncertainty. The investment case can now shift towards how consistently the mine performs and the cash flow it can generate as production settles into a more normal rhythm.

Uranium prices, operating performance, and contract terms will continue influencing results, so investors should still expect volatility.

But for now, Morgans has maintained its buy recommendation while lowering its price target from $13.05 to $12.50.

That target offers potential upside of approximately 37% from the current Paladin Energy share price of around $9.15.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group provides investment bonds and wealth management services, including through Evidentia.

Morgans viewed the company's fourth-quarter update as strong, with record investment bond sales among the highlights.

The broker was also encouraged that Evidentia exceeded expectations following several consecutive periods in which its performance had disappointed.

I think that improvement could help rebuild confidence in the broader growth story. Generation Development Group can benefit as more financial advisers use its services and increasing amounts of client money move onto its platforms.

Following the update, Morgans raised its earnings per share forecasts by between 1% and 5% across its forecast period. The upgrades reflect higher sales and funds under management expectations across both key divisions.

The broker increased its price target from $6.28 to $6.89 and retained its buy rating, pointing to more than 20% potential total shareholder return upside.

Foolish takeaway

I think these three Morgans recommendations offer different reasons for investors to take a closer look.

Regal Partners appears inexpensive if fund performance continues supporting growth, while Paladin Energy has completed an important operational ramp-up. Generation Development Group has delivered stronger sales and an encouraging improvement from Evidentia.

Each company still carries risks, and broker price targets are never guaranteed. Even so, Morgans believes all three ASX shares offer enough growth and valuation upside to justify buy ratings this week.

The post Why Morgans rates these ASX shares as buys this week appeared first on The Motley Fool Australia.

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• How to boost your superannuation income with these top ASX dividend stocks

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

WiseTech Global Ltd (ASX: WTC) shares have fallen dramatically over the past year.

At around $34.71, the share price sits much closer to its 52-week low of $28.76 than its high of $120.84.

Has the sell-off created a rare buying opportunity? I think the risk/reward looks compelling, although investors need to accept uncertainty.

Why I still like the business

WiseTech's CargoWise platform helps logistics companies manage customs, freight forwarding, warehousing, transport, compliance, and other parts of moving goods around the world.

I think its position inside those workflows remains a major strength. Large freight forwarders cannot easily replace systems connecting employees, customers, shipments, and regulatory requirements across countries.

That can make CargoWise deeply embedded and give WiseTech room to sell customers more products over time.

The company is also broadening its reach through e2open and investing in artificial intelligence. If WiseTech can bring more supply chain functions into one platform, I think it could become even more valuable to customers seeking better visibility and automation.

What could go wrong?

WiseTech is moving CargoWise customers towards a new commercial model offering broader product capabilities. I can see the long-term logic, but migrations can create customer pushback, revenue uncertainty, and extra work before the benefits appear.

The company also needs to integrate acquired technology and encourage customers to adopt more products.

Artificial intelligence creates another question. AI could automate paperwork, data entry, compliance checks, and other tasks handled by logistics software. Outside providers may become stronger competitors, although I think WiseTech can also build AI directly into workflows customers already use.

The controversies surrounding founder Richard White have added governance and key-person uncertainty.

These issues could potentially keep the WiseTech share price volatile even if the business continues growing.

Does the valuation make sense?

According to CommSec consensus estimates, WiseTech is forecast to generate earnings per share of 94.5 cents in FY26, $1.459 in FY27, and $2.234 in FY28.

At $34.71, that places the shares on forward price-to-earnings ratios of approximately 36.7 times, 23.8 times, and 15.5 times, respectively.

The FY26 valuation is not cheap. However, the multiple will fall rapidly if WiseTech delivers the expected earnings growth.

Analysts are forecasting earnings per share to rise by more than 50% in both FY27 and FY28. Paying around 15.5 times FY28 earnings could look remarkably inexpensive if the business is still expanding strongly by then.

Foolish takeaway

I think WiseTech shares could prove to be a once-in-a-decade bargain for growth investors will to be patient.

The decline reflects genuine concerns around execution, customer migration, AI, governance, and the changing commercial model. Further setbacks could lead to more sharp falls.

However, CargoWise remains deeply connected to global logistics operations, and the earnings forecasts suggest the current valuation could become very attractive if management delivers.

At around $34.71, I think the potential upside outweighs the uncertainties. I would buy the shares while keeping the position size sensible and allowing plenty of time for the investment case to unfold.

The post Are WiseTech shares a once-in-a-decade bargain? appeared first on The Motley Fool Australia.

More reading

• ASX 200 technology and healthcare shares continued their comeback last week
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Down 40% to 70%. Why I'd buy these ASX tech stocks before August
• WiseTech, Cochlear, CSL shares: Buy, sell or hold?

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

Exchange-traded funds (ETFs) can make investing much simpler for beginners.

Instead of researching and buying individual companies, one investment can provide exposure to dozens, hundreds, or even thousands of shares.

That said, here are five ASX ETFs I think are worth considering in August if you are starting out.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF provides exposure to 200 of the largest companies listed on the Australian share market.

This includes businesses from banking, mining, healthcare, retail, telecommunications, and other major industries.

I think it offers beginners a straightforward way to invest in Australian shares without needing to decide which individual companies will perform best.

The fund also pays distributions, although both the income and unit price can rise or fall over time.

Betashares Global Shares ETF (ASX: BGBL)

Australia represents only a small part of the global share market.

The BGBL ETF allows investors to spread their money across more than 1,000 companies from developed countries outside Australia, including the United States, Japan, and major European markets.

This gives beginners access to industries that are less prominent on the ASX, particularly global technology, healthcare, consumer brands, and industrial businesses.

I think the Betashares Global Shares ETF is a simple option for someone who wants broad international exposure rather than trying to select individual overseas shares.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The VDHG ETF is designed for investors who want several types of investments bundled together.

The fund holds Australian shares, international shares, emerging market shares, and smaller companies. It also keeps a modest allocation to defensive investments such as bonds.

Vanguard manages the mix and regularly brings it back towards its target allocations.

I think that removes several decisions that can overwhelm a beginner. Investors still need to accept share market volatility, but they do not have to choose and manage several different funds themselves.

iShares S&P 500 ETF (ASX: IVV)

The IVV ETF follows the S&P 500 Index, which contains 500 leading US companies.

These businesses operate across technology, healthcare, financial services, consumer products, communications, and many other parts of the economy.

The fund can give beginners exposure to companies such as Apple, Microsoft, and NVIDIA through one ASX investment.

I think the strength and adaptability of major US businesses make the iShares S&P 500 ETF an attractive long-term option, although currency movements will affect returns for Australian investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The NDQ ETF invests in 100 of the largest non-financial companies listed on the Nasdaq.

It has significant exposure to technology and businesses benefiting from cloud computing, artificial intelligence, semiconductors, software, and digital services.

I think the Betashares Nasdaq 100 ETF could suit beginners seeking stronger growth potential who are comfortable with larger price swings.

The NDQ ETF is more concentrated than a broad global fund, so I would expect greater volatility when technology shares fall out of favour. Its higher growth potential comes with more risk.

Foolish takeaway

There is no single ETF that will suit every beginner. The A200 ETF offers broad Australian exposure, while the BGBL and IVV ETFs provide different routes into international markets. The VDHG ETF handles much of the diversification work within one investment, while the NDQ ETF provides a more growth-focused choice.

I think the best starting point is the fund an investor understands and feels comfortable holding.

Each of these ETFs offers a simple way to begin investing in August, but I think beginners should consider their goals, time horizon, and tolerance for volatility before buying.

The post 5 top ASX ETFs for beginner investors in August 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 positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Macquarie Group Ltd (ASX: MQG) shares are currently trading around $257.93.

The company has just provided its first update for FY27 and announced an upcoming change of CEO.

So, do I think Macquarie shares are a standout buy today?

A solid start to FY27

Macquarie described trading conditions during the first quarter as satisfactory.

I think the individual business updates were more encouraging than that restrained description may suggest.

Banking and Financial Services increased its profit contribution compared with the same period last year. Deposits rose by 4% during the quarter, while home loans grew by 6% and business banking loans increased by 3%.

I like the progress in this division because it can give Macquarie a steadier source of earnings alongside its more market-sensitive operations.

Commodities and Global Markets also produced a substantially higher contribution. This was supported by increased activity in North American gas and power markets, as well as higher income from asset finance.

Macquarie Capital improved its contribution through stronger investment-related and brokerage income, although advisory fees were lower against a strong comparison period.

Macquarie Asset Management was the only division to report a lower contribution. This reflected the sale of its North American and European public investments business during FY26. However, assets under management increased by 4% during the quarter to $748 billion.

I think the update showed why Macquarie has been such a successful long-term investment. It has several businesses capable of finding opportunities across different market conditions.

What do I think of the CEO transition?

Shemara Wikramanayake will retire as managing director and CEO in November. Greg Ward, the current head of Banking and Financial Services, is set to succeed her, subject to the required approvals.

A leadership change of this size naturally creates some uncertainty, particularly after Wikramanayake's successful eight years as chief executive.

However, I think appointing Ward from within the company is a major positive.

Ward joined Macquarie in 1996 and served as its global chief financial officer for 14 years. He was later appointed deputy managing director before taking control of Banking and Financial Services in 2013.

I like that he already understands Macquarie's culture, approach to risk, and willingness to pursue opportunities that other financial institutions may overlook.

He has also led the repositioning of Banking and Financial Services into a much larger source of competition and innovation across personal banking, business banking, and wealth management.

I think that experience gives Macquarie a good chance of maintaining continuity while still entering its next stage of growth.

Do Macquarie shares offer value?

According to CommSec consensus estimates, Macquarie is forecast to generate earnings per share of $13.02 in FY27 and $13.38 in FY28.

At $257.93, this puts the shares on forward price-to-earnings (P/E) ratios of approximately 19.8 times and 19.3 times, respectively.

I would not call that cheap, particularly when analysts are expecting relatively modest earnings growth between the two years.

However, Macquarie's earnings can move considerably depending on transactions, asset sales, commodity markets, and investment activity. I do not think one or two years of consensus forecasts capture everything the company could achieve over a longer period.

CommSec also forecasts dividends per share of $7.60 in FY27 and $8 in FY28. That represents forward dividend yields of around 2.9% and 3.1%.

The dividend is a welcome part of the return, although I would mainly buy Macquarie for its long-term earnings and capital growth potential.

Foolish Takeaway

Yes, I think Macquarie shares are a standout buy for long-term investors.

The shares are not a bargain, and the current price leaves less room for disappointing results. I would still be comfortable buying because I think Macquarie has qualities that justify paying a higher valuation.

Its global reach, diverse businesses, financial strength, and ability to adapt have created opportunities across many different market cycles.

I am also encouraged by the decision to promote an experienced leader who has spent three decades inside the organisation.

At around $257.93, I think Macquarie remains one of the highest-quality ASX shares available to investors today.

The post Are Macquarie shares a standout buy? 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some of the most attractive Australian shares are businesses that have turned specialist expertise into strong market positions.

I think that can create years of growth when the opportunity ahead is still expanding.

Here are three Australian shares that fit that description for me.

Pro Medicus Ltd (ASX: PME)

Pro Medicus helps radiologists work through enormous volumes of medical images using its Visage imaging platform.

I think the opportunity is becoming more valuable as hospitals generate more scans and healthcare networks become larger and more connected. Clinicians need images to load quickly and remain accessible across different locations, devices, and departments.

Visage can bring those images into a single cloud-based environment, helping radiologists move between cases without relying on slower or disconnected systems.

The depth of that workflow is one of the main reasons I like Pro Medicus. Once a large hospital network has adopted the platform and trained its clinicians, replacing it could become highly disruptive.

Its contracts can also run for many years, giving Pro Medicus time to strengthen the relationship and benefit as imaging volumes increase.

The shares usually command a substantial valuation, so future returns will depend on the company continuing to win major contracts and delivering strong growth. But I think its technology, customer retention, and international opportunity justify paying close attention.

Hub24 Ltd (ASX: HUB)

Financial advisers are being asked to manage more investments, reporting requirements, tax information, and client expectations.

Hub24 provides the administration platform sitting behind much of that work.

Its technology allows advisers to hold and manage different investments through one system while giving clients clearer access to their portfolios. I think that can make the platform increasingly important as advisers search for ways to serve more people without creating an equally large increase in administration.

Hub24 has been attracting substantial inflows and taking market share from older platform providers. Each new adviser relationship can also bring many client accounts onto the platform over time.

I like the scalability of the business model. As funds under administration rise, this Australian share has the potential to grow revenue faster than the cost of operating the platform.

Share market falls can reduce asset values and affect revenue, while competition from other modern platforms remains strong. Even so, I think Hub24 has the technology and reputation to keep expanding within Australia's large wealth management market.

Cochlear Ltd (ASX: COH)

A cochlear implant can begin a relationship between Cochlear and a recipient that lasts for decades.

After receiving an implant, customers may later upgrade their sound processors, replace accessories, access support, and adopt newer technology. That installed base gives Cochlear an ongoing source of demand alongside sales to new recipients.

I think the market still has considerable room to grow. Hearing loss becomes more common as populations age, yet many people who could benefit from an implant have not received one. Greater awareness, improved clinical pathways, and expanding access to healthcare could gradually bring treatment to more patients.

Cochlear also invests heavily in research and development, helping it improve sound quality, connectivity, comfort, and the overall recipient experience.

Healthcare funding decisions and competition can affect growth, and the shares are rarely inexpensive. However, I think Cochlear's brand, global distribution, clinical relationships, and large installed base make it an outstanding long-term business.

Foolish takeaway

I want companies in my portfolio that can become more valuable by deepening existing customer relationships while continuing to reach new ones.

Pro Medicus, Hub24, and Cochlear each have that opportunity, supported by specialist technology and positions that competitors would struggle to recreate quickly.

I would still consider valuation carefully and build positions gradually where prices look demanding. But with a long holding period, I think all three Australian shares offer the quality and growth potential I would want in an investment.

The post 3 top Australian shares I'd buy for my portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Cochlear, Hub24, and Pro Medicus. 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 among the most popular investments on the ASX.

The bank has a leading customer franchise, a strong digital offering, and a long record of rewarding shareholders.

But how can investors tell whether they are getting value for money at the current share price?

I would look at several simple valuation measures rather than relying on only one.

Start with the price-to-earnings ratio

CBA shares are trading around $176.07.

According to CommSec consensus estimates, the bank is forecast to generate earnings per share of $6.54 in FY26 and $6.72 in FY27.

That puts the shares on forward price-to-earnings ratios of approximately 26.9 times and 26.2 times, respectively.

CommSec data show CBA traded at an average annual price-to-earnings ratio of around 17.3 times across the 10 financial years to FY25. Its highest annual average during that period was 24.7 times in FY25.

A forward ratio cannot be compared perfectly with an annual historical average, but the figures still make one point clear. CBA is trading well above the valuation investors have generally paid over the past decade.

Consider the earnings yield

The earnings yield is simply the inverse of the price-to-earnings ratio.

Based on the consensus forecasts, CBA has an earnings yield of approximately 3.7% in FY26 and 3.8% in FY27.

This means each $100 invested at the current price is supported by less than $4 of forecast annual earnings.

That may be acceptable for a high-quality company capable of dependable growth, but it leaves less room for disappointment than a higher earnings yield would.

Check the dividend yield

CommSec forecasts dividends per share of $5.10 in FY26 and $5.15 in FY27.

At $176.07, those estimates produce forward dividend yields of approximately 2.9% in both years, before any value from franking credits.

CBA's average annual dividend yield over the decade to FY25 was around 4.5%.

The lower current yield reflects how strongly the share price has risen. Income investors are now paying considerably more for each dollar of expected dividends than they have historically.

Look at the price-to-book ratio

Book value measures the accounting value of a company's net assets attributable to shareholders.

CBA currently has book value of approximately $47.12 per share. Dividing its share price by that figure produces a price-to-book ratio of around 3.7 times.

Investors are therefore paying roughly $3.70 for every $1 of book value, which is high by historic and industry standards.

Banks capable of earning high returns on shareholder equity can deserve substantial premiums to book value. CBA's deposit franchise, customer relationships, technology, and reputation help explain why the market values it more highly than many competitors.

Still, a price-to-book ratio approaching four times shows investors are already expecting the bank to maintain exceptional performance.

Foolish takeaway

I think it is fair to concede that none of these measures makes CBA shares look cheap.

The price-to-earnings ratio and price-to-book ratio are high by historical standards, while the earnings and dividend yields are relatively modest.

However, valuation should also reflect business quality. CBA has a leading banking franchise, millions of customer relationships, strong digital engagement, and a history of producing reliable profits and dividends.

I would still buy CBA shares at around $176.07, particularly with a long holding period. But I would limit the size of the position because the current price already assumes plenty of future success.

The post How should I value the CBA share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.