Zip Co Ltd (ASX: ZIP) has always been clear on its trajectory — grow first, make profit later. And for a while, investors were on board with the buy now, pay later (BNPL) company's pathway to profitability. Its cash burn was readily accepted as a means to fuel growth, and investors looked to user adoption and transaction volume as the primary measures of success.

However, with changing economic conditions, investors began asking more questions about execution and profitability.

What's happening at Zip Co?

While Zip Co shares saw circa 60% growth over the last twelve months, year to date, they have dropped roughly 40%.

Zip has been responding to changing investor sentiment for some time, reducing costs, improving margins, and narrowing losses. In February, it reported some impressive 1H26 results, including:

• A significant improvement in operating margin at 18.7%, up from 13% on the prior corresponding period (PCP)
• Record total transaction volume of $8.4 billion, a 34.1% increase on PCP
• A 4.1% increase in active customers on PCP
• 10.5% growth in merchants on the platform

But it is still asking investors to believe that the worst is behind it and the best is still worth waiting for. There is no denying that Zip is a company on the improve. The question is whether investors will be willing to back its next phase.

What is happening in the BNPL sector more broadly?

Looking at what is happening in the BNPL sector more broadly, it was flying in 2022. In Australia, according to Finder, 49% of Australians were actively using the service to fund purchases. And this looked set to grow. But things went the other way, dropping to 40% or 2 in 5 Australians by 2024. That said, more recent surveys have found high adoption rates amongst younger consumers and Australians remain one of the highest users of BNPL. In addition, with Gen Z eschewing the traditional credit card model, there is still room for user growth.

Of course, BNPL is irrevocably tied to consumer spending. And it is more widely used by younger consumers, who are also more likely to be affected by current conditions. On the flip side, given that it can fund a wide range of products and services, it may prove an interest-free lifeline on hard-to-delay purchases for some right now.

Whether you believe BNPL can pick up or not in the current climate is key to your investment decision as reaching profitability for Zip Co is highly sensitive to the broader economic backdrop. 

Are Zip Co shares a buy right now?

Many analysts certainly think so. And with the share price rallying 20% yesterday, it looks like investors are starting to agree.

Zip Co is a materially better business today than it was in 2022. Costs and losses are both trending in the right direction and its geographic footprint is more focused. User growth and transaction volume continue to grow, despite challenging market conditions.

But right now, Zip is sitting in an uncomfortable middle ground. It is no longer a high-growth disruptor that investors are willing to fund on belief alone, but it has not yet reached profitability. In calmer economic conditions, it could well have remained in investor favour.  

For me, Zip Co shares are a conditional buy. There is certainly potential upside at the current price. And it is making the right moves towards profitability. But you have to be comfortable with some volatility in the near-term and wholeheartedly believe in a cyclical recovery in consumer spending.

The post Are Zip Co shares a buy right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 it comes to set-and-forget investing, it's important to have a solid framework and ask yourself the right questions. Essentially, you are looking for ASX dividend shares that have a solid defensive moat, an understandable business model, a resilient balance sheet, a growth runway, and a fair price.

Here are three worth considering for your set-and-forget investing portfolio.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

While the name is often thought of in terms of the pharmacies, the company divested its last remaining interests in the retail chain in 2020. Today, it is an investment company that owns a portfolio designed to build wealth steadily over time.

In 2025, it completed a merger with building materials manufacturer Brickworks Limited, ending five decades of cross-shareholdings between the companies. The new arrangement created a $14 billion investment powerhouse, further improving liquidity and transparency.

Why is Washington H. Soul Pattinson a solid ASX dividend share?  

Soul Patts' diversification across multiple uncorrelated sectors is its defensive moat. Diversification on this scale smooths earnings, reduces volatility, and allows long-term capital allocation.

The model is a simple one – a long-running investment conglomerate that invests in high-quality businesses and compounds capital, and it is in a robust financial position. Soul Patts holds pre-tax net assets of $13.5 billion as at 1H26, up 14.6% on the prior corresponding period (PCP). And cash holdings of $427 million, providing resiliency if things go wrong. However, the scale of its diversification also gives it ample coverage here.

As for its growth runway, Soul Patts invests in both listed and unlisted businesses across the globe, providing almost limitless investment opportunity. And it remains a family-run enterprise, despite its scale, so management skin in the game is apparent too.

And when it comes to returns, Soul Patts comes through here too. It has paid dividends every year since it listed on the ASX over a century ago. And every year for the last 27 years, the dividend has grown year on year.

You will pay a premium, but the valuation is justified for set-and-forget investors given its solid track record and high-quality balance sheet.

Cochlear Ltd (ASX: COH)

Cochlear is a global leader in implantable hearing solutions, with a market share of around 60% in developed markets. It has solid recurring revenue streams too, with patients returning for upgrades or device accessories.

Why is Cochlear a solid ASX dividend share?

A quality, trusted healthcare product that makes meaningful change in people's lives creates customer stickiness — patients often stay in the Cochlear ecosystem. Its global reputation and position in a tightly regulated market give it a solid defensive moat, and its balance sheet remains resilient despite some challenges of late.

Its business model is easy to understand — we all know what Cochlear does. Today, more than 1 million people across the globe use a Cochlear device. And with an aging population, the demand for hearing devices is set to increase in the coming years, creating a growth runway. It is also a known innovator, consistently investing in Research & Development. As technology advances, I believe Cochlear will remain at the forefront.

However, it has faced some setbacks of late, which has seen the share price fall 37% in the last twelve months. Delays in transitioning patients to its new Nucleus Nexa device have contributed to underlying net profits falling 9%, missing analysts' expectations.

That said, it retains strong cash holdings, with operating cash flow increasing by $26.9 million to $136.8 million and free cash flow up by $24 million to $82.7 million in its 1H26 reporting.

It also recently announced a dividend of $2.15, flat against the prior corresponding period. While this has some worried that it might signal the end of steadily increasing dividends for the healthcare leader, I think it will bounce back in the second half as the Nucleus Nexa rollout regains momentum.

For me, recent conditions have created an opportunity for set-and-forget investors to get in on a market leader at an attractive price.

Brambles Ltd (ASX: BXB)

Brambles operates CHEP, the world's largest pallet-pooling network, providing reusable pallets, crates, and containers used across the globe. Its model creates a cost-effective and efficient circular logistics solution for manufacturers and retailers, and its service is widely considered the benchmark in pallet pooling.  

Why is Brambles a solid ASX dividend share?

Brambles has a classic defensive moat built on scale, network effect, and customer stickiness. The scale of its services means it is disruptive and difficult for customers to switch, and given the quality of its service, they have little incentive to consider a move.

While global logistics is complex, its business is relatively simple. Brambles rents shipping pallets to its customers, collects, repairs, reissues, and repeats. This circular model gives it largely predictable cash flows.

Brambles 1H26 reporting showed a resilient balance sheet with sales revenue and underlying profit increasing, and free cash holdings of US$481.7 million, up $52.5 million on 2025. It also reported an interim dividend of US$0.23 per share, up 21% on FY25.  

These results are particularly strong in the current global climate, with demand headwinds in some markets and increasing inflation-driven cost pressures. 

While it has a moderate to high price-to-earnings (P/E) ratio, I think you are paying for quality here. With solid dividends, a wide defensive moat, and a resilient balance sheet, the current share price represents fair value for set-and-forget investors, in my view.  

The post 3 reliable ASX dividend shares for set-and-forget investing appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Cochlear and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A direct stock set-and-forget portfolio can create a fantastic passive income stream as part of your retirement strategy. You aren't looking for aggressive outperformance compared to the market, just solid returns and strong dividends to create a relatively passive portfolio.

Here are my six rules to select set-and-forget investments.

1. How will this business win?

The first question you should ask yourself about any potential investment is why can this business win? It's not about why it's popular or what's trending now, it's about how it can keep competitors at bay over the long run.

Look for what is driving its defensive moat, such as:

• Scale/cost advantage
• Regulatory barriers
• Network effects
• High switching costs
• Brand strength

If you don't understand how it can win, you can't have true conviction that it will. Knowing how a company protects its profits is a must as quality set-and-forget investing is built on companies that have a strong line of defence.

2. Do I understand what I'm investing in?

Another simple filter is to ask yourself whether you understand how the company makes money. Observing the products and services you use in real life can help in investment decisions as you understand the customer and can explain the value proposition. Understanding where a company's money comes from – and is likely to continue coming from – is key to set-and-forget investing.

3. Can I see a growth runway?

Set-and-forget investing is less about what's happening today and more about what's going to happen. So, ask yourself how will the company continue to grow? You want companies with a credible pathway to expand earnings and adapt as the industry evolves.

If growth relies on a single project, commodity price or regulatory outcome, it's too narrow for a set-and-forget portfolio. 

4. What will happen if things go wrong?

Of course, you don't have a crystal ball, so you can never entirely answer this one. What you can do, however, is look for companies with solid cash holdings and low debt or a history of using debt to successfully grow the business as they are in the best position to weather changing circumstances.

A strong balance sheet is critical to dividend sustainability and optionality when external shocks and unexpected challenges arise. For me, companies that generate predictable cash flows, can fund growth internally and don't rely on regular capital raisings are non-negotiable in set-and-forget investing.

5. Does management have 'skin in the game'?

Much like I don't like the idea of flying in a plane with a remote pilot, I feel the same way about investing in a company when management hasn't invested. If they don't believe in the outcomes enough to invest, why should I?

When management is invested, I think incentives are more aligned, decision making improves and long-term thinking is more likely, because people behave differently when their own money is on the line.

6. Am I paying a fair price relative to the opportunity?

Valuation matters, of course. But conviction matters more in set-and-forget investing, in my view. A quality business can justify a higher multiple if it offers a solid defensive moat, robust cash flows, visible growth and a strong runway. That said, this comes with a disclaimer. Nothing is a buy at any price. Growth can only cover valuation sins to a point.

But in this type of investing, I care less about squeezing the last 5% of upside and more about investing in quality businesses and avoiding long-term mistakes.  

The bottom line

Of course, a direct stock portfolio will never be truly set-and-forget as you'll need to review your investments periodically to make sure they still fit your criteria. But investing in quality businesses with good defensive moats, strong cash flows and good dividends can create a relatively passive portfolio – as long as you set and stick to a well-considered investment framework.

The post 6 rules for set-and-forget investing to fund your retirement goals appeared first on The Motley Fool Australia.

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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.

Large-cap oil and gas stocks, Woodside Energy Group Ltd (ASX:WDS) and Santos Ltd (ASX:STO) are often spoken about in the same conversation. Both have a reasonably solid dividend track record, and are more heavily exposed to global energy prices rather than the local economy.

But there are differences in investor value, today and over the longer term. So, which one stacks up best for you?

Woodside Energy

A steady operator with a solid track record, but upside at current prices is in question for me.

Woodside is Australia's largest independent energy company, and it would be the clear winner if you were deciding based on business size and asset base alone. With over 30 locations across five continents, its scale and diversification are impressive. 

It's full year 2025 reporting showcased an uplift in production of 3% to 198.8 million barrels of oil equivalent (MMBOE) but a 24% decline in net profit after tax (NPAT) to $2.7 billion, driven by declining oil prices last year. The uplift in production should yield better results in the short term with the current inflated oil prices.

Given its wide exposure and today's rising gas and oil prices, Woodside should deliver a strong return in the first half of 2026, and continue its track record of reliable (if cyclical), fully franked dividends.

Of course, current oil prices are being driven by conflict in Middle Eastern oil producing regions, the duration of which is highly unpredictable. And the energy sector is always open to volatility, particularly as governments push toward renewable energy alternatives. In response, Woodside has positioned itself as a long-term supplier of LPG, leaning into gas as a transition fuel.

As it stands, when oil prices stabilise, Woodside's strong balance sheet and diversified cash flows should keep the ship steady. Amongst energy stocks, its risk profile sits at the lower end.

Where things get less exciting for me is share price growth. It's up 24% over the last month to the $33 mark on Thursday, largely driven by investor optimism with rising commodity prices. But I'm not sure this leaves a lot of room for growth in a sector that can be volatile. 

For me, right now, it's one for the watchlist. If prices fall back to the mid $20s, then it could become a worthwhile buy based on its robust operating model, solid dividends and relatively reliable cash flows.

Santos

A higher risk play with a more attractive share price  

Santos is a smaller, more concentrated oil and gas supplier. Its asset base is far more concentrated than Woodside's, with producing assets in Australia, Papua New Guinea and Timor-Leste.

This gives it less diversification, but also means fewer moving parts, so it can be the more agile of the two when it comes to growth opportunities. While this comes with some additional execution risk, it can also create pathway to share price growth for investors.

It has invested heavily in some new projects of late, included its joint venture Barossa LNG project, that saw its first shipment of gas in late January. In addition, it is expecting production to begin at its first US site, the Alaska-based Pikka Project, in the coming months.

All of that said, its dividends tend to be lower and not or only partially franked, so this may be a downside for some investors.

Santos' full year 2025 results reported production of 87.7 MMBOE (0.7% increase year-on-year) but a 25.2% year-on-year decline in underlying NPAT to $898 million due to declining commodity prices.

Its response to the push for renewables has been to invest in carbon capture and storage, a move to ensure its continued relevance in a decarbonising world. Its Moomba Carbon Capture and Storage project is Australia's first large-scale onshore facility and one of the lowest cost projects of its type globally.

For me, Santos is the stronger buy right now. Its share price has also jumped in the last month (15%) reaching $8 on Thursday with rising commodity prices. But I think there is still upside for investors in this energy stock, particularly given the growth potential of some of its newer projects.

The bottom line

In my opinion, Woodside remains a relatively reliable dividend vehicle in the energy sector, albeit with limited potential upside right now. It may still be a buy if you want a relatively predictable income stream to add to your portfolio.

Santos, on the other hand, is an energy stock that could see significant growth in coming years. It might be a slightly higher risk play, but in my opinion, patient investors are likely to be rewarded.

The post Woodside vs Santos: Which ASX energy stock is the best fit for your portfolio? appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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.

Debt gets a bad rap amongst ASX share investors and, to be fair, it's often deserved. High debt, when taken on for the wrong reasons can sink even quality businesses. But used well, debt can also be a powerful tool.

When considering company debt, look at it from a few angles:

• What is the debt funding?
• How predictable are the cash flows that support it?
• Does management use it as a crutch or a strategic tool?

Debt as a strategy

Debt can be built into a company's model and used to create leverage. Done well, debt can boost return on equity, manage tax liabilities and build future revenue streams.

There are plenty of examples of this, but the infrastructure assets sector is a good one to look at.

Take ASX share Transurban Group Ltd (ASX:TCL), for example. If you looked its balance sheet alone, debt is high. In FY25, its books showed group debt of $26.8 billion.

But when you step back and investigate, it makes sense. As a toll road provider, Transurban's projects are usually capital intensive with long delivery time frames and often, predictable demand. Once finished, these projects tend to deliver reliable cash flows, so taking on debt to complete the project is likely a rational move.

Used this way, company debt can create leverage without materially increasing business risk.

Debt as a tool

Debt can also be used as a tool to increase financial flexibility.

Essentially, company debt is used to accelerate growth and adapt with agility when interest rates rise or markets tighten, often via revolving credit facilities (RCFs).

ASX share Goodman Group Ltd (ASX:GMG)  is an example of a company that uses RCFs well. It maintains a strong liquidity buffer ($6.6 billion as at FY25) and keeps gearing relatively low. Usage of credit facilities is intermittent to manage cycles or act on strategic opportunities.

Debt as a crutch

This is the kind of debt investors should be more wary of. Debt can quickly become a liability when a company uses it to fund business as usual.

This type of company debt is more often seen in industries with tight margins and volatile conditions.

Perhaps one of the most cautionary tales from the sector is electronics retailer, Dick Smith. In the lead up to its much-publicised decline, the retailer continued to post relatively healthy revenue, but under the water it was paddling hard. Debt was being used to maintain the appearance of momentum, funding inventory and pulling future sales forward.

High debt isn't uncommon in retail – and it can be a pathway to turnaround, but it is one that carries significantly higher risk. As was the case for Dick Smith, when consumer demand softens, the company's balance sheet can't provide a defence, and the debt can go from manageable to fatal in a matter of weeks.

If debt is tied to short-term earnings and inventory, it's worth taking a deeper look at what's happening below the surface.

The bottom line

Of course, a company without debt is much less likely to go under, but in some sectors, particularly capital-intensive ones, debt can be a solid pathway to growth.

The most important question for ASX share investors to ask is how is the debt being used? Is it creating leverage to realise future revenue or providing a crutch to enable continued trading?

If it's the former, then it's a functional tool that can deliver positive outcomes for investors. If it's the latter, it's a potential red flag and only worth considering if you understand and trust in the levers the company can use to turn things around.

The post How to assess company debt as a new ASX share investor appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 and Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban 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.

Retail remains a challenging sector with Australian consumer sentiment falling in February 2026, largely driven by interest rate rises. With another rate rise potentially looming, how are these retailers faring?

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi delivered some solid 1H26 results, including:

• Sales revenue up 7.3% to $6.1 billion
• Net profit after tax up 7.1% to $305.8 million
• Earnings per share up 7.1%

While it experienced a slowdown in sales momentum in January, JB Hi Fi continues to thrive overall. And for me, its relative success in a difficult consumer spending climate comes down to the power of its brand. Its core value proposition has never wavered.

Customers know what to expect from JB Hi-Fi, and it continually delivers, with discounted prices, easy price matching and an interactive in-store experience. Its casual staff culture appeals to younger generations who typically spend more on technology than their older counterparts. Gen Z and Millennials drop a combined $9.2 billion a year on smart home tech alone, according to 2025 Pure Profile research conducted for Samsung.

And while this demographic is also much more likely to buy online, I believe JB Hi-Fi's in-store experience and the broader societal trend towards instant gratification position it well in this landscape.

JB Hi-Fi has indicated that it expects some further softening in consumer spending in the next quarter. But I believe the retailer is well-positioned to weather any potential challenges. Its balance sheet should provide enough cover, with low debt and cash reserves of $489.5 million as of 1H26.

From a share price perspective, it remains fair value, with a small upside for investors, in my opinion. It has dropped around 13% in the last year, perhaps driven by broader market weakness and investor concern about a consumer spending crunch.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman also delivered robust results for the half, including:

• Sales revenue up 6.9% to $5.16 billion
• Net profit after tax up 15.2% to $321.9 million
• Earnings per share up 20.8%

Regardless, its share price has fallen around 20% over the last month, most likely due to concerns about a consumer spending squeeze.

Harvey Norman is a decent business as it stands today. With a solid supplier network and the backing of its strong property portfolio, it's in a good position to stare down the immediate challenges of any contraction in consumer spending.

However, the value proposition for this retailer changes for me based on the time horizon.

According to Roy Morgan Research, almost 60% of Harvey Norman's customers were aged over 50 in 2019, highlighting its popularity amongst Baby Boomers and older Gen Xers. Given that its marketing appears to target the same audience in 2026, I think it's reasonable to assume that this hasn't materially changed. 

In a spending crunch, we tend to see older generations spending more than Millennials, who are in the thick of one of life's most expensive stages, from school fees to mortgages.

So, in the short term, an older customer base combined with a strong balance sheet will likely be an advantage for Harvey Norman.

Over the longer term, however, I don't love its brand positioning. There is a risk that it may compete solely on price to attract Millennial and Gen Z consumers. Harvey Norman will need to deliver a consistent, high-quality in-store experience to compete with lean online players and with competitors like JB Hi-Fi, which has already successfully attracted younger shoppers.

Would I buy it right now? Probably. I think there is some upside at current prices, and its recent results and balance sheet look good. Long-term, I think it may face challenges if it continues with its current brand positioning.

The bottom line

Both are reasonably good retail buys right now. In the short term, I think Harvey Norman has a slight edge. Its results are strong, its higher dividend yield is appealing, and I think there may be a little more upside at current prices. However, looking longer term, I think JB Hi-Fi will prove the stronger business, gaining real momentum from the investment it has made in its brand.

The post JB Hi-Fi vs. Harvey Norman: Which is the better retail buy? appeared first on The Motley Fool Australia.

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

Australia's ageing population is one of the most predictable long-term trends in our economic landscape. The Australian Bureau of Statistics predicts that older people will make up 21% to 23% of the population by 2066. This creates a powerful structural tailwind for these ASX healthcare stocks, if they can execute on the opportunity.

Here are two stocks that will give you exposure as Australia's median age rises.  

Regis Healthcare Ltd (ASX: REG)

Regis offers perhaps the most straightforward exposure to this demographic shift. One of Australia's largest healthcare providers, Regis delivers residential aged care, home care, day therapy, respite services, and retirement living to over 10,000 Australians.

Its share price hasn't seen massive growth of late, up around 2% over the last twelve months, but if you zoom out, there's more to the story. It is up over 200% in the last five years, reflecting sector recovery and improved operating conditions.

Its 1H26 reporting showcases its continued growth trajectory, with an 18% increase in service revenue, a 96% occupancy rate across its facilities, and a national expansion of 1,000 beds.

This growth is underpinned by a strong balance sheet and solid cash flows. And it seems to be positioning itself to realise the opportunity ahead, with ambitious plans for the coming years. It is targeting 10,000 quality beds by 2028, delivered through a mix of greenfield projects and acquisitions.

Of course, the aged care sector has seen its share of headwinds in recent times, and the regulatory environment will always present a risk.

The New Aged Care Act, which came into effect in July 2025, could change things for some incumbent residential care players. It's designed to keep more Australians living independently for longer with support at home, and it will take time to see whether it has achieved this aim. But because Regis plays in both home care and residential facilities, I think it's well placed to navigate any notable change in aged care trends. 

Is Regis Healthcare a buy right now?

For me, it's an attractive option right now with a share price that doesn't necessarily reflect its growth potential. If you're looking for stocks that give you exposure to this significant demographic shift, Regis is hard to go past.

Ramsay Health Care Ltd (ASX: RHC)

Ramsay is more of a generalist healthcare provider, operating more than 70 private hospitals across the country. Of course, demand for hospital services grows with an ageing population. But the areas that interest me most in this demographic shift are Ramsay's rehabilitation, allied care, and home-based care operations.

Its rehab at home program offers in-home support following hospitalisation for many common age-related conditions, including cardiac, joint replacements, and mobility/falls. Support includes allied health care, like physio and nursing, as well as at-home services such as meals and domestic help.

Currently, these programs only account for a small percentage of Ramsay's revenue, but I think this is an area that could have real growth momentum as the population ages.  

A condition requiring hospitalisation is a common trigger point for families considering aged care options for a loved one. And Ramsay's rehab, allied care, and at-home care services are well-positioned to help Australians stay independent at home for longer. By providing the hospital stay through to the rehab at home, Ramsay can service the market end-to-end.

Looking at its share price, Ramsay has seen a circa 22% uplift over the last 12 months. But the story is less positive if you zoom out, with a 33% decline over a 5-year period. This decline was likely driven by a number of factors, including squeezed margins, declining earnings per share, rising costs, and a slower-than-expected return to elective surgeries in the years following the COVID-19 pandemic.

Ramsay's current share price reflects a challenging period for the healthcare provider, but I think it is on the pathway to a full recovery. It's showing positive signs, with 1H26 reporting highlighting revenue growth of 9.3%, underlying EBITDA up 6.4%, and a 6.3% increase in the interim dividend to 42.5 cents per share.

Is Ramsay Healthcare a buy right now?

In my opinion, Ramsay is undervalued right now. As with Regis, regulatory risks remain. In addition, it is still working towards a full turnaround, but at the current share price, I believe there is attractive upside for investors if it can execute.

The post These ASX healthcare stocks are set to thrive as the population ages appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 it comes to ASX telco stocks, Telstra Corporation Ltd (ASX: TLS) is often the cautious investor's pick. It's large, familiar and pays a reliable dividend. But size and stability don't always deliver the best value.

Aussie Broadband Ltd (ASX: ABB) is a smaller and more speculative investment, but I think what it lacks in size, it makes up for in potential.

So, which is the better investment?

Telstra: A reliable investment with limited room for growth 

Let me couch what I am about to say ­­– Telstra is, by almost all metrics, a high-quality business and a relatively safe bet. It dominates the Australian telecommunications market, owns critical infrastructure, generates strong cash flows, and offers an attractive, fully franked dividend. All of this stability makes it a highly dependable investment.

But where it lacks appeal for me is growth potential. Telstra's core markets are mature. And while its management has shown a disciplined approach to cost control, revenue growth from ordinary activities remains on the modest side – 0.9% uplift in FY25 on the prior corresponding period. That's not necessarily a deal breaker in and of itself, but it does limit the potential upside for investors.

At current prices, you're paying for stability and income certainty rather than earnings growth. If you're a defensive investor, it's going to win hands down. For growth investors, I think there's more value to be had elsewhere in the sector.

Aussie Broadband: Strong fundamentals and well positioned to grow  

Aussie Broadband plays in the same markets as Telstra. But unlike Telstra, which is defending an established base, Aussie Broadband is carving new pathways for itself, particularly in government and corporate contracts. These contracts tend to offer good margins and customer stickiness, positioning Aussie Broadband for accelerated growth. In FY25, it saw an 18.7% revenue uplift to $1.19 billion.

And as it scales its customer base, its operating leverage has room to grow. Fixed networks and systems will spread across a growing revenue base, allowing margins to expand. Telstra, on the other hand, may have already exhausted much of this margin expansion potential.

But it is important to note that risks can be heightened for a smaller player like Aussie Broadband. Across the telco sector, competition is fierce, and pricing pressure can be intense. Of course, these risks still apply to Telstra. However, as a well-established player with significant brand equity and scale, they are less likely to bother investors in any meaningful way.

That said, Aussie Broadband doesn't carry the legacy cost base of its much bigger competitor. And its disciplined approach to growth, prioritising return on invested capital rather than expansion at all costs, adds to its appeal for me.

The bottom line

Both are solid telco stocks, so you probably can't go wrong. If your strategy is defensive, then Telstra remains the safest bet. But if you are looking for exposure to earnings growth and are comfortable with some share price volatility, Aussie Broadband is my pick. At current prices, I think it's an opportunity to get in on a quality business that has the hallmarks of further impressive growth to come.  

The post Aussie Broadband vs Telstra: Which telco stock deserves your dollar? appeared first on The Motley Fool Australia.

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

When you're looking at ASX stocks under $1, things can get a bit more speculative. But you can also come across those that have real potential for growth. Here are my top picks at the bargain end of the market this week. 

Hipages Group Holdings Ltd (ASX: HPG)

The share price of trade sales lead generator, Hipages, has dropped almost 20% over the last year to $0.84 at market close on Tuesday. Its primary service is connecting customers to tradespeople, a business that can be sensitive to interest rate hikes and weakened consumer spending. This might be driving some of the subdued investor sentiment. Also, it does not have a strong defensive moat with some investors concerned that it may be swamped by AI or generalist marketplaces.

But this is a business with strong underlying fundamentals. Even though revenue growth slowed in the first half of 2026, it has expanded its EBITDA margin, showing good operating leverage and discipline. A strong balance sheet with significant cash holdings further de-risks the investment.

Despite potential consumer spending concerns, Australians spent some $53.8 billion on renovations in FY25, the highest spend since 2022, suggesting the market for trades remains strong. Ongoing trade shortages may also fuel consumer demand for some time to come. The key for Hipages will be ensuring that it can continue to attract quality tradespeople in this climate. 

For me, at current prices, Hipages is a real contender. It's a quality business with a good balance sheet in a market where demand continues to grow.

OFX Group Ltd (ASX: OFX)

Australian international payments provider, OFX, has seen share price falls of more than 50% over the last year, closing at $0.58 on Tuesday. Investors had high expectations of this business a few years ago and although its results have been relatively solid, it seems investors have been wanting more. Weakening sentiment across the broader tech sector may also be driving the drop.

OFX is a profitable business with low debt and a global customer network, spanning APAC, North America, Europe and the Middle East. In its last full year results, it reported a 5.5% decline in net operating income and its growth has slowed of late, but its scalable business model remains attractive.

In early February 2026, it announced a strategic review, which could include a potential sale, with management reiterating it believes the business to be undervalued at the current share price.

And I tend to agree. Despite some decline in recent results, OFX has been performing in the longer term and has several potential avenues for growth. It's clearly at a crossroads and the outcome of the strategic review will be interesting, but I think now is the time to move for investors seeking a bargain.

Adore Beauty Group Ltd (ASX: ABY)

Specialty beauty e-commerce and retailer, Adore Beauty has had a tough ride on the share market, dropping some 50% in the last 12 months to $0.42 at market close on Tuesday. However, it continues to deliver positive, if small, revenue growth. That said, net profit has declined sharply (69.9%), which is likely why investor sentiment continues to weaken.

However, at current prices, I think it's worth considering because its revenue is rising, its brand equity is intact, and there are some positive indicators amongst the challenges:

• It has an established brand that has shown it can ride out challenging market conditions
• It's underlying EBITDA for HY26 was up 14.5% on the prior corresponding period, meaning it can generate operating leverage
• Customer growth remains solid
• It appears to be demonstrating disciplined inventory management, critical in such a fast-moving category

It's also worth noting that its profitability decline is likely largely driven by the step up in its omni-channel rollout, with the group opening 10 new stores since July.

This one might be a little more speculative and it's certainly a turnaround play — it will need to recover its margins. But if you are looking for something with hidden potential at the bargain end of the market, Adore Beauty is one to consider.

The post 3 quality ASX stocks under $1 a share appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Hipages Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has recommended Adore Beauty Group and Hipages Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's common knowledge that geographic diversification in your portfolio is critical. But one common misconception is that achieving it means investing on overseas exchanges. And historically, there was truth to that. Geographic location was a good indicator of a stock's primary market exposure. But today, using domicile alone can be deceiving.

Here's why earnings diversity is critical – and how you can achieve it without leaving the ASX.

It's likely your risks are already concentrated in Australia

Most Australian investors instinctively look to the ASX for their first and often biggest investments. It feels familiar, you're dealing in Australian dollars, you may avoid some additional tax filing requirements, and your money stays in Australia's highly regulated environment. And that's before we even get into the benefits of Australia's franking credits system. 

But Australia is a small pond. It makes up less than 2% of the global equity market and only 0.33% of the world's population, so you risk putting all your eggs in one very small basket. 

Additionally, it's likely that you're heavily exposed to the Australian economy before you start your portfolio. Your job, your salary, your house and most of your large assets probably sit here. And for most Australians, superannuation is tilted toward domestic shares. It means you're already flying in one weather system, and if a storm hits the Australian economy, you're exposed to it on many fronts.

The good news is that you can achieve global exposure without leaving the ASX.

Follow the money on the ASX

Where a company is located is largely irrelevant today. In fact, you could build a portfolio across the ASX, NASDAQ, Nikkei and FTSE, assuming you have achieved diversification, and still be disproportionately invested in one region because that's where your investments make most of their revenue.

Instead of looking for overseas-based companies to achieve this, you can follow the money and stay on the ASX, by considering:

• Where does the company earn most of its income?
• Where are the majority of its customers based?
• What currency does it transact in?

It's these factors that determine its exposure to economic, social, regulatory and geopolitical – and, therefore, your geographic diversification.

What ASX shares can I invest in to gain global exposure?

You can build geographic diversity on the ASX with some solid performers. Here are three that are worth a look to get you started:

• Amcor PLC (ASX: AMC) The packaging giant makes most of its money in the US (50%), followed by Western Europe (28%). In fact, Australia and New Zealand combined account for only 1% of its revenue.
• Codan Ltd (ASX: CDA):  Codan makes most of its communications technology and metal detecting equipment sales across North America (40%), Europe and the Middle East (29%) and Africa (18%).
• Brambles Ltd (ASX: BXB):  This large supply chain logistics player brings most of its sales revenue from the Americas (55%) and Europe and the Middle East (37%).

Foolish bottom line

When your income, assets and super are already tied to Australia, doubling down by investing purely in Australian‑centric companies can leave you over-exposed to one economic climate. By focusing on earnings geography rather than company location, you open your portfolio to the other 98% of global market opportunity, all without leaving the relative comfort of the ASX.

The post Diversification: Why earnings geography matters more than company location appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia's transport sector is a mixed bag right now. Some stocks are taking off, others are facing delays and one or two you might rather not board at all. Here's a look at three very different ASX transport plays and whether they are a buy right now.

Transurban Group (ASX: TCL)

Transurban, while arguably not the most exciting stock, is a consistent one. It owns and operates major toll roads. It also holds long-term government contracts to finance and build major roads, which also cover toll operations. This cash flow and revenue predictability has seen it become popular amongst investors.

It stands to benefit from some solid structural tailwinds too. With major roads playing a critical role as metro populations expand, Transurban is well positioned to deliver.

On the flipside, road projects often face delays and cost blow-outs. For example, Transurban delivered Melbourne's long awaited West Gate Tunnel in 2025 at a cost of $10.2 billion against a plan for 2022 delivery at $5.5 billion, with Transurban covering $2 billion of the additional cost. That said, Transurban has a history of disciplined cash flow management that has enabled it to wear one-off costs like this.

Its most recent results demonstrate why it's worth considering. It delivered $2.02 billion in proportional total revenue (up 6%) and $343 million in statutory profit after tax. In addition, its dividend guidance for 2026 is $0.69 per share, up 6.2% on 2025, which should keep investors content.

Is Transurban a buy?

For me, it is. At current prices, Transurban isn't likely to skyrocket your portfolio. Some analysts are predicting a small upside right now, but nothing to get excited about. However, it is likely to keep delivering stable returns and measured growth for long-term investors.

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon is a national rail-freight operator, hauling bulk commodities and freight for industries such as mining and manufacturing. It operates Australia's largest coal rail system, the 2,670km Central Queensland Coal Network. The network offers critical mine to port transportation to over 50 mines in the region.

Its significant footprint in the mining industry includes a partnership with BHP Copper SA to deliver an integrated rail, road, and port solution that will shift copper transport from road to rail along the Pimba to Port Adelaide corridor.

Aurizon delivered some stronger-than-expected results in HY26, including 16% growth in underlying net profit after tax and EBITDA growth across all its business units. Its bulk business saw the highest growth at 39%, largely driven by increased rail volumes and the first freight moved under the BHP Copper SA contract.

Where I'm caught on this one is valuation. With current share prices around the $4 mark and a price-to-earnings (P/E) ratio of circa 23, I think there is too much risk of downside. I'm also cautious about its heavy exposure to coal mining, while noting that it has begun to diversify in recent years.

Is Aurizon a buy?

Right now, it's a wait-and-watch story, in my opinion. I don't think it is delivering the returns to justify its present valuation. But I think it will keep delivering growth, so I'm adding it to the watchlist. If the share price falls, it could be a winner.

Virgin Australia Holdings Ltd (ASX: VGN)

Domestic and international carrier, Virgin Australia, returned to the ASX in June 2025, after delisting in 2020 amidst the COVID crisis. Its Q1 FY26 update reported domestic capacity uplift of 5% on the prior corresponding period. It also reaffirmed that revenue per available seat kilometre (RASK) should meet expected growth of 3% to 5% in HY26.

But there are potential pitfalls ahead. While Virgin Australia enjoys a duopoly on major domestic routes across Australia, it doesn't inoculate it from economic headwinds. Although Australians love to travel, as budgets continue to tighten, changes in discretionary spending could prove challenging. Additionally, the relatively thin margins in the airline industry leave it sensitive to operating cost changes, from fuel to labour.

As we await HY26 results on Friday, this one has me thinking. I'm uncomfortable with its more recent corporate history – multiple restructures, ownership changes, and strategic resets. And I am not sure even great results would be enough to convince me just yet.

Is Virgin Australia a buy?

For me, it's a not a buy right now. Some analysts have said they see upside at current prices, however, so I may be going against the grain on this one. But I think Virgin needs longer to show it has truly recovered from a challenging period.

The post Planes, trains and automobiles: Which of these ASX transport stocks has fuel in the tank? appeared first on The Motley Fool Australia.

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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 Transurban Group. 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.

Following the release of HY26 earnings last week, retailers JB Hi-Fi Ltd (ASX: JBH) and Wesfarmers Ltd (ASX: WES) traded roughly in line, with one rising and the other falling. Two retailers, with very different investment profiles. In a challenging market, which retail share is the better buy?

The case for JB Hi-Fi

JB Hi-Fi is a high-growth, lean retail business that has shown real momentum since the early 2000s, becoming one of Australia's largest and most successful specialty retailers.

Its HY26 results were impressive, including:

• Revenue up 7.3% on the prior corresponding period (pcp) to $6.1 billion
• Net profit after tax up 7.1% to $305.8 million
• 32% growth in its New Zealand business
• Dividends up 23.5% to $2.10

Its share price has experienced some volatility lately, perhaps driven by slower-than-expected growth in The Good Guys brand, softer January sales, and consumer spending headwinds.

Its January sales drop-off has been attributed to a combination of temporary stock shortages and the impact of Black Friday, which pulled sales forward to November. And this shift in peak season aligns with CommBank IQ retail data. The data shows that sales peaked over the 2-week Black Friday period, up 4.6% year on year and 19.5% on the fortnightly average for Australian retailers.

Many analysts are seeing upside at current prices, and I tend to agree.

Over the last six months, the JB Hi-Fi share price has dropped circa 28%, but if you zoom out, it is up some 92% over the last five years. I think this is a better indicator of the retailer's performance. While consumer spending decline is a risk for this business, its strong branding as a discount retailer will keep it top of mind for budget-conscious consumers

The case for Wesfarmers

Wesfarmers is one of Australia's largest and most diversified retailers. It may not have JB Hi-Fi's growth momentum, but it is a solid operator, demonstrating consistent earnings performance and disciplined capital management across multiple economic cycles.

This is reflected in its HY26 results, which showcased stability in a challenging retail climate, including:

• Revenue up 3.1% on pcp to $24.2 billion 
• EBIT up 8.4% to $2.49 billion 
• Net profit after tax up 9.3% to $1.6 billion
• Dividends (fully franked) up 7.4% to $1.02

The Wesfarmers share price has also experienced some volatility, likely off the back of a decline in consumer spending and pressure on its lower-performing Target and Officeworks brands. Retail leaders Kmart and Bunnings both pick up their share of the slack, with both showcasing strong growth in the first half of FY26.

It's notable that Wesfarmers has delivered consistent growth in revenue, profit, and dividends throughout the 2020s, a decade that is proving a challenge for retailers.

Wesfarmers is the parent company to over 35 brands that extend beyond the retail sector, too. This wide footprint gives it exposure to a range of markets and a defensive business mix. Its brands outside the retail sector include online healthcare provider, Instascripts, data powerhouse, FlyBuys, natural gas provider, Kleenheat, and lithium miner, Covalent Lithium (a 50/50 joint venture with Mt Holland Lithium Project).

As with JB Hi-Fi, it's worth looking at the bigger picture for Wesfarmers. Over the last six months, its share price has fallen some 12% but has grown 65% over a 5-year period. For a business of this quality and scale, I think current prices can be considered a short-term dip.

The verdict

Both are good options, so it really depends on what you want to achieve.

JB Hi Fi has significant upside right now. So, in my view, it's the one to buy if you're looking for a growth share with exciting momentum, and your risk appetite will allow for some temporary volatility.

Wesfarmers remains a compelling, if not a hugely exciting, buy. Its scale, defensive business mix, and track record of disciplined execution make it a reliable performer. Its fully-franked dividend is also appealing. So, for me, it's the one to buy if you want a steady investment to hold long term.

The post JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your portfolio? appeared first on The Motley Fool Australia.

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

Over the last 12 months, CAR Group Ltd (ASX: CAR) has seen its share price fall by over 30%. From cost-of-living pressures to emerging fears about generative AI, the online vehicle marketplace is facing some significant headwinds.

However, it delivered solid H126 results last week and is a company that has shown it can evolve. Here's what's happening and why I believe there is significant upside right now.

What is driving the CAR Group share price down?

CAR Group runs online vehicle marketplaces in Australia, South Korea, the USA, and Chile. It is also a majority shareholder in the Brazil-based webmotors. While it continued to deliver solid results in FY25 despite rising cost of living in its biggest markets, investors have remained cautious heading into 2026.

Partly, this is due to broader weak sentiment across the tech sector. Investor appetite for high-growth stocks has eased, amidst fears of overvaluation. In addition, the potential for a softening of the vehicle market and the easing of used car prices this year may be contributing to investor concerns.

But perhaps its biggest headwind is the fear that generative AI will soon replace online marketplaces. Generative AI is disrupting the established 'search and browse' model, and some investors are concerned that CAR Group will lose its footing as customers lean into personalised AI-driven shopping experiences.

Can CAR Group effectively respond to the growing threat of generative AI?

For me, it can.

Firstly, I believe vehicle sales will be insulated from the shift for longer than some other consumer products, due to the high cost and level of trust required in the transaction.

Secondly, CAR Group has a solid track record of responding to major shifts.  

In the 1990s, CAR Group (then known as Carsales.com) transformed the way Australians bought and sold cars with its digital marketplace, accelerating the shift from print classifieds. By the early 2000s, it was widely considered Australia's go-to online car marketplace.

Over its history, it has, by and large, demonstrated that it is an early mover, scales responsibly, and uses acquisitions to increase depth and complement its core business.

Notably, across the 2010s, it made a significant and successful move from a listing site to a sophisticated automotive marketplace, integrating a broad range of value-added services, including vehicle inspections, dealer analytics, and financing.

Now, with generative AI threatening another major shift, I believe it will once again respond with agility and discipline. It has shown that it is facing the challenge head-on by establishing a global AI hub.

Of the move, Managing Director and CEO, William Elliott, said:

We see AI as a critical enabler and we are embedding it into our products, platforms and operations. This capability will be further accelerated by the establishment of CG/lab, our global AI hub in Brazil, which is focused on developing core agentic technology that can be built once and scaled across the Group. Recent highlights include the introduction of voice-controlled vehicle search and AI companions that help guide consumers through the vehicle buying and selling journey.

And while it navigates this AI shift, CAR Group will likely still have the network effect on its side for some time. Buyers, sellers, and dealers alike are accustomed to using its sites, meaning each will go there to find the others. Obviously, that can and will change if CAR Group doesn't step up. But for me, it has an established history of success in evolving to meet its contemporary customers.

Of course, sceptics remain. But I'm still bullish on CAR Group because I believe it is making all the right moves in the present climate, supported by a consistent track record. For me, current prices present an attractive entry point for long-term investors who share my faith that it can once again evolve as AI disruption looms.

The post Why I am still bullish on CAR Group appeared first on The Motley Fool Australia.

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

Australia's education industry is undergoing a significant shift, shaped by policy change, cost-of-living pressure, and the acceleration of digitisation. These three players are all exposed to one or more of these factors in different ways. So, are they worth a look?   

Janison Education Group Ltd (ASX: JAN)

Janison is a provider of online assessment platforms and digital exams, including the national standardised NAPLAN and competitive ICAS tests. It also delivers the NSW Selective High School and Opportunity Class placement tests on a 5-year state government contract, secured in 2024.

It's a small-cap stock trading around $0.21. In December, it attracted some investor interest, hitting a 12-month high, on the back of announcing a significant contract with the NZ Ministry of Education. The 5-year deal will see Janison deliver New Zealand's new SMART online assessment tool to schools, at a value of $21 million.

In FY25, it did not reach profitability. However, it reported some positive indicators, including:

• 9% revenue growth over the prior corresponding period to $46.8 million
• Solid balance sheet with $11 million cash on hand and a 44% increase in operational cash flow
• EBIT improvement from $10.6 million loss to $7 million loss

The assessment market remains ripe for digitisation, and Janison has a track record of securing major contracts in the space. Based on its 2025 results, it's a bit of a speculative play right now. That said, I think it has real potential for growth in 2026, so it's going on my watchlist.  

G8 Education Ltd (ASX: GEM)

G8 is Australia's largest provider of childcare, running over 400 centres nationwide. Amidst challenging conditions for the sector, the company has been rolling out its 'network optimisation' strategy, which includes divesting underperforming centres, to improve operational efficiency and financial performance.

While its centres have seen an uptick in quality, with 96% of assessed centres meeting or exceeding the National Quality Standard as at HY25, occupancy rates have continued a downward trend.

In HY25, centre occupancy rates declined 3.7 percentage points on the prior corresponding period, most likely driven by cost-of-living pressures. In addition, expectations of a seasonal occupancy uplift in October 2025 were not realised.

On 10 February 2026, the company released an announcement regarding a goodwill non-cash impairment of $350 million to be recognised in its full-year results, as well as the suspension of its final dividend for the year. In the same announcement, G8 reported that EBIT guidance for CY25 has not changed, suggesting management believes fundamental operations remain steady.  

Its share price tumbled in the ensuing week, falling from $0.63 on 9 February to $0.48 on 16 February. It will be interesting to see what it reports in its full-year results, to be announced next Monday.

As it stands, this one is a little too risky for me. But if you're comfortable with a turnaround play and believe it can withstand significant headwinds, it may be cheap right now.   

IDP Education Ltd (ASX: IEL)

IDP Education is a leader in the international student market and co-owner and official provider of the IELTS English proficiency test.

IDP also delivers a range of international student services, from course advice to visa and accommodation support, to help students secure educational opportunities in Australia, Canada, Ireland, New Zealand, the UK, and the USA.

In FY25, IDP reported revenue of $888.2 million, a 14% year-on-year decline and a 29% decrease in student placements, likely driven by the tightening of policy in key markets, Australia and Canada.

The Australian Government initially proposed a hard international student cap of 270,000 for 2025, seeking to cut numbers by some 16% on 2023 figures. This was later replaced with a soft cap system, whereby educational institutions face penalties if they exceed allocations.

In Canada, the government plans to issue 408,000 study permits in 2026, with only 155,000 for newly arriving international students and the remainder for current and returning students. This represents a 7% drop from 2025 and a 16% drop from 2024.

Investors have naturally been cautious in this landscape, and IDP's share price has fallen some 60% in the past year. But IDP has shown operational resilience and disciplined cost management in challenging conditions.

It has a solid multi-year strategic transformation plan in progress, and I think this is a business that can bounce back. If you're comfortable with the prospect of continuing short-term volatility, I believe current prices present an attractive opportunity to invest in a quality business.

The post School's in: Are these ASX education shares making the grade? appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Janison Education Group. 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's been an interesting time for ASX mid-cap stocks of late. We're seeing some mid-caps outperform the broader market and with business spending predicted to continue picking up in 2026, many are poised for growth.

And it makes sense that this market is getting more attention. Mid-caps often have more resilience than their smaller counterparts and potentially more runway for growth than their larger ones.

Here are three that are worth adding to your watchlist.

Megaport Ltd (ASX:MP1)

Megaport may not be the most exciting name in AI tech right now, but it is a pivotal one. This Network-as-a-Service provider facilitates connectivity between data centres, cloud services and corporate networks with an on-demand model that allows business to access the bandwidth needed at any given point.

Its share price has been a little volatile of late, down over 10% in the last month, potentially due to some investor caution about its relatively high price-to-sales ratio and broader weakness in the tech sector.

However, Megaport delivered solid results in FY25 and has some strong, tailwinds, with the surge in AI usage driving demand for fast, low-latency interconnection.

In FY25, it reported 20% growth in Annual Recurring Revenue (ARR), 16% growth in total revenue ($227.1 million) and an 18% lift in large customers. And it is moving forward with a compute-as-a-service arm through the acquisition of Latitude.Sh, a play that will expand its global reach and capability.  

Although recent indicators are positive, right now, this might be a buy for investors with a slightly higher risk tolerance than me. But I do think there is potential value here. I'm adding it to my watchlist with a sneaking suspicion that it might be one I later regret not jumping on.

HUB24 Ltd (ASX: HUB)

While this stock has gained more attention recently, for me, it deserves still more of the spotlight. At current prices, I believe it's conservatively valued and poised for growth.

HUB24 is an Australian investment and superannuation platform, delivering technology solutions to the financial advice sector. It offers a range of cloud-based and platform products to accountants, wealth advisers and financial planners, from compliance to reporting.

It's been recognised as the overall market leader in platform functionality in successive Investment Trends annual benchmarking reports. And it is an industry favourite with rapidly growing funds under management, reporting record quarterly net inflows of $5.6 billion in Q2 FY26. 

The quality of its platform is fast creating a competitive moat for this local tech success story, particularly as the financial advice industry faces ever more complex regulation.  

In FY25, it posted revenue of $406.6 million, representing 24% year-on-year growth. In addition, it's underlying EBITDA margin grew to 39.9%, indicating solid operating leverage.

Its share price is sitting at $76.57, down from a 12-month high of $122.03, making now an attractive entry point for investors. 

Objective Corporation Ltd (ASX: OCL)

Objective is another player in the tech space that is perhaps not garnering as much attention as it deserves. It delivers mission-critical technologies to government and enterprise, everything from planning tech for local councils to disclosure management software for HUB24.

It has seen some share price decline over the last year, down circa 15%, driven by the broader pullback across the tech sector. Investors may also be cautious about its reliance on heavily regulated industries in the current climate.

That said, I think Objective is primed for growth.

In FY25, it reported:

• A 15.1% jump in ARR to $120 million
• Net profit after tax growth of 13% to $35.4 million
• Total dividends of 22 cents per share

It has a solid defensive moat, too, being embedded in large-scale government and defence clients. And it has demonstrated a commitment to constant innovation with a healthy investment in research and development in FY25.

Objective is attractively priced right now. And, in my opinion, it's one to consider for long-term investors who are prepared for the prospect of some shorter-term volatility.    

The post ASX tech mid-cap stocks to watch this earnings season appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Hub24, Megaport, and Objective. The Motley Fool Australia has positions in and has recommended Objective. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices of over $100 can feel daunting, particularly for new investors. But if the value is there, there is no reason not to consider owning fewer shares at a higher price point. Here are five ASX stocks currently priced at over $100 that remain good value.

CSL Ltd (ASX: CSL)

Australian-based multinational biopharma powerhouse, CSL, has long been an investor darling, known for its reliable returns and healthy dividends.

Twelve months ago, it was trading around the $270 mark. Today, it is sitting at around $180 per share. This swing is likely driven by its revenue downgrades for FY2026 in October, investor concerns about efficiencies as the company looks to restructure, and changes in vaccination behaviour in the US.

For me, this presents a rare opportunity for long-term investors. Despite some recent upheaval, CSL boasts a strong track record of consistent execution, solid earnings, a defensive moat, and a robust growth pipeline – excellent fundamentals that suggest this could be a short-term drop.

Macquarie Group Ltd (ASX: MQG)

Diversified financial services powerhouse, Macquarie Group, has been a solid performer for decades. And this is reflected in its share price performance, which is up 50% over the last five years. But in the last year, it has seen some small declines, down 6%, which may be your opportunity to buy into a quality investment.

Despite prices remaining above the $200 mark, I think upside remains. Macquarie Group offers a solid long-term growth outlook, an attractive dividend profile, and positioning as a market leader in several high-growth industries, including infrastructure and renewable energy.   

REA Group Ltd (ASX: REA)

Market leader, REA, is best known to consumers for the popular realestate.com.au property search website. It also offers commercial property search, mortgage broking, and property data services, with revenue streams in Australia and Asia.

Over the last year, it has experienced share price declines of around 35%, from around $270 in early February 2025 to below the $170 mark in early February 2026. The fall has been potentially spurred by several factors, including softer listing volume in 2025, earnings pressure, and investor concern about its high valuation.

That said, it continues to deliver solid results. Analysts can see the upside at current prices, as can the company itself, if recent buybacks are anything to go by.

If you're thinking about making a move on REA, you have an attractive entry point right now.

Cochlear Ltd (ASX: COH)

Implantable hearing device pioneer Cochlear has been leading the way in treating hearing loss for over 40 years. It is widely known for its disciplined approach, characterised by low debt, solid capital management, and consistent cash generation.

In the last 12 months, it too has seen some share price declines, dropping 18%. It's likely these were mostly driven by concerns about high valuations, given that Cochlear continues to deliver impressive results.

And conditions are ripe for this market leader to continue delivering in the long term. It already has robust global operations that generate the majority of its revenue, and that's likely to grow given the world's ageing population. In fact, the World Health Organization predicts that 1 in 10 people globally will require hearing intervention by 2050, up from 1 in 20 today.

For me, Cochlear's recent share price falls are likely short term and provide an excellent opportunity for investors looking to get in on a quality stock with a long-term runway for success.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a leading provider of radiology and imaging software to hospitals and imaging companies. Its dominant position in the market, capital-light SAAS model, and notable customer retention rates have all made it an investor favourite.

It has experienced significant share price volatility over the last 12 months, dropping from circa $285 a year ago to around $160 right now. This was likely driven by broader softening in the tech sector and overvaluation concerns amongst investors.

Right now, for me, it's a buy. It has exceptional financials, a positive long-term outlook, and is successfully growing its footprint in the lucrative US market. In an industry that is being reshaped by AI, Pro Medicus is poised to continue delivering.

The post 5 ASX stocks that are still good value at over $100 a share appeared first on The Motley Fool Australia.

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

Australians have an enduring obsession with home ownership. But with the median dwelling price sitting at 16 times median income in some areas, renovating a 'fixer upper' or improving an existing property rather than moving is becoming a more viable option for many.

In fact, as reported by Realestate.com.au in January 2026, Australians spent $53.8 billion on home improvements in FY25, the highest spend since 2022.

So how can investors get in on this trend? Here are the three stocks poised to ride the renovation wave.

Beacon Lighting Group Ltd (ASX: BLX)

Lighting is an important part of any property overhaul and plays a pivotal role in three of the most popular renovation categories – energy efficiency upgrades, kitchens, and bathrooms. And while local lighting and ceiling fan retailer Beacon Lighting has seen some share price volatility of late, it is well placed to capitalise on its trusted brand and broad product range.

Its share price has fallen around 30% in the last year, likely driven by weakening sentiment across the consumer discretionary retail sector. However, at the tail end of 2025, it hit the radar of some analysts, with Bell Potter putting a buy rating on it in December.

And at current prices, I tend to agree. Its FY25 results show solid growth, including record sales of $328.9 million and a gross margin of 69.1%. Also, Beacon Lighting recently highlighted that it remains on track to reach its target of 50% trade sales by FY28 – a strategy that essentially gives it two bites at the home renovations cherry.  

It has shown a disciplined approach thus far, with a healthy cash buffer and a relatively conservative balance sheet. In my opinion, it's a buy for long-term investors in the current climate.

Temple & Webster Group Ltd (ASX: TPW)

Furniture provides the finishing touch of every renovation, and Temple & Webster is in the box seat to deliver. The online retailer offers access to more than 200,000 items from thousands of suppliers through a scalable drop-shipping model. This agile model allows it to serve a wide market, offering everything from simple flat-pack solutions and on-trend, low-cost décor to premium, artisan, hand-finished furniture.

Its share price is down roughly 25% over the last 12 months. Despite posting strong FY25 results, it saw volatility in November following an update that missed consensus growth expectations. That said, the company says it remains on track to deliver on its mid-term goal of $1 billion in annual revenue.

Despite failing to meet expectations in the short term, I think it's worth considering at current prices. Its solid performance in market headwinds, strong brand, flexible model, and depth of product offering all create a solid runway for long-term growth.  

GWA Group Ltd (ASX: GWA)

As the owner of some of Australia's most recognised kitchen and bathroom brands, including Caroma, Methven, Dorf, and Clark, GWA is a pivotal player in the home improvement landscape.

While GWA is also affected by changes in consumer discretionary spending, its share price has fared better than many peers'. Over the last 12 months, it has seen a 4% rise in its share price and is tipped to continue delivering strong dividends to investors.

It reported solid results in FY25, despite a declining market. And its buybacks late last year indicate the company has confidence in its ability to continue delivering and believes its shares to be undervalued.  

GWA's ongoing success may be buoyed by continued consumer demand for water-efficient products. It is a frontrunner in the space with intelligent bathroom systems that deliver smarter water management solutions to consumers.

At current prices, GWA may still hold reasonable value for investors. It offers some of the go-to brands for consumers looking for quality and water efficiency. And it has shown it can perform and deliver healthy dividends, even in challenging market conditions.

The post 3 ASX stocks poised to ride Australia's renovation wave appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Temple & Webster Group. 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.

In FY25, beauty retailer Adore Beauty Group Ltd (ASX: ABY) displayed a controlled approach to inventory management, but in an industry so influenced by fast-moving TikTok trends, can it stay ahead of the game – and is it a buy right now?

Fast-moving cycles pose a challenge in the sector

Social media, particularly TikTok, has proved a phenomenon for beauty retailers, moving consumers from discovery to purchase in record time. And while this can be a tailwind, it can also lead to short-term aggressive cycles that put pressure on retailers.

They must respond lightning fast to meet demand, making quick inventory decisions that can make or break. Understocking can lead to lost revenue and impact the retailer's position in a customer's consideration set. Overstocking can be a pathway to carrying costs, markdowns, and wastage.

Short-cycle social media trends can be hard to predict. They may be based around a specific beauty ingredient, a whole category, or focused on one individual brand, making stock decisions even more complex.

How has Adore Beauty responded so far?

A few years ago, Adore Beauty made investments in AI-driven supply chain management technology to better manage these cycles. That foresight may well have paid off, with the company reporting strong results in FY25, including:

• Record gross margin of 35.3%
• EBITDA of $8.1 million, up 67.8% on the prior corresponding period (PCP)
• Revenue of $198.8 million, up 1.6% on PCP
• New customer growth up 4.9%
• A cash balance of $12.7 million with no debt

In FY25, it also made a move into brick-and-mortar retail. This saw the opening of seven new retail stores, with a reported goal of opening more than 25 stores across its Adore Beauty and IKOU brands.

While many sectors are moving away from physical retail and its heavy cost base, in many ways, it makes sense for Adore Beauty. This play allows it to compete with prominent local beauty retailer Mecca and international powerhouse Sephora by offering similar interactive in-person experiences.

In the last year, Adore Beauty demonstrated that it could perform under these challenging conditions. But as TikTok continues to compress and intensify demand cycles, it will need to remain vigilant and maintain its firm commitment to robust inventory management.

Is Adore Beauty a buy?

Adore Beauty has been on a wild ride since it listed on the ASX in 2020 with an IPO price of $6.75. Over the last five years, its share price has fallen by over 80%.

That said, it has made positive progress recently, and if it executes on its ambitious retail strategy, it could see impressive gains over the next few years. With the company set to release H1 FY26 results on 24 February, it will be interesting to see if its upward trajectory has continued thus far.

It's definitely one to watch in 2026. For investors with a higher risk tolerance, it may be worth considering now, as I believe it is undervalued at current prices.

The post From viral hit to margin threat: Is inventory a growing risk for Adore Beauty? appeared first on The Motley Fool Australia.

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

When thinking about geographic diversity, many investors still instinctively look at where a company is headquartered. But in a globalised market, where a company earns its money is often far more important than where it is domiciled. Here are three ASX stocks to increase your global exposure.

Codan Ltd (ASX: CDA): A global earnings powerhouse

Codan is an Australian technology company with a reputation for durable communications and electronics equipment for the government, corporate, NGO and consumer markets. Its metal detector brand, Minelabs, is widely considered to be the industry standard for both commercial and private prospecting.

It operates in more than 150 countries globally, across North America, Africa, Europe and Asia, offering exposure to diverse markets.

Codan's share price hit all-time high in late January 2026, off the back of strong growth and revenue results in both its communications and metal detector divisions. It's metal detector business grew 46% in H1 FY26, largely driven by sales in Africa.

While we may see some of that growth slow if the price of gold continues to drop, its exposure to defence spending and reputation for quality should maintain momentum across its communications division.

In addition, the company has low debt and a disciplined approach, creating a fertile environment for long-term growth. In my opinion, Codan is a solid investment for long-term investors seeking geographic diversity, even at current prices.  

Ramsay Health Care Ltd (ASX: RHC): A turnaround play in a resilient market

While Ramsay has a notable footprint in Australia, it's significant operations across Europe and the UK give it global revenue streams in the resilient healthcare market.  

Here in Australia, Ramsay is the largest private hospital operator. In the UK, it provides similar services on a smaller scale alongside mental health services via its Elysium Healthcare subsidiary. Ramsay also holds a controlling stake in European-based Ramsay Santé, which delivers healthcare services across France, Sweden, Norway, Denmark and Italy.

In terms of performance, Ramsay is a turnaround play right now. Its share price has fallen around 45% across five years, potentially indicating that investors have lost confidence. That said, it is up circa 9% over the last year, and some analysts have suggested it is undervalued based on its strong fundamentals, margin recovery and Q1 FY2026 revenue growth.

It's an option worth exploring if you are looking to diversify and want a value play in a market with long-term growth tailwinds.  

Cochlear Ltd (ASX: COH): Local success story with global reach

Cochlear is a primary example of an ASX-listed company with an extensive global footprint. This Australian invention is now a world leader in implantable hearing devices. And although it remains based in Sydney, it earns most of its revenue offshore.

Its most lucrative market is the Americas. This is followed by its Europe, Middle East and Africa and Asia Pacific operations, giving Cochlear diverse global revenue streams and fantastic earnings resilience.

In terms of share price, Cochlear has historically been a solid and dependable performer. In 2025, however, it saw some decline, starting the year at around $300 per share and ending it at around $260. While it continues to perform, investors may be losing patience with its relatively slow growth at such a high valuation.  

If you're looking for an ASX stock with global revenue streams, Cochlear remains an excellent option. Given its continued success and solid long-term outlook, current share price declines may present an opportunity to buy.  

The post 3 ASX stocks with global revenue to diversify your portfolio appeared first on The Motley Fool Australia.

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

Wistech Global (ASX:WTC), Xero Ltd (ASX:XRO) and Bapcor Ltd (ASX:BAP) have all dropped around 50% in the last 12 months. Investors must now decide if these falls are a sign of further difficulties ahead or a measure of short-term sentiment.

Is Wisetech stock priced to buy?

The Wisetech share price has fallen around 50% from its peak of almost $130 in early Feb 2025. Declines in 2025 were largely driven by market pressure on high growth high valuation stocks as well as investor caution around the integration risks of its US $2.1 billion acquisition of e2open.

Coming into 2026, continued weak sentiment in high valuation stocks and a period of decelerated growth for the company are continuing the trend.

However, despite these headwinds, its core business continues to prosper. Wisetech's global logistics and supply chain software, CargoWise, reports solid results and continued, if decelerating, growth. And some brokers remain bullish, buoyed by the software's defensive moat against AI.

The question for investors is whether the share price can return to its previous highs. While the current price may not amount to a universal buy signal, it could prove an attractive entry point for long-term investors, albeit with some higher risk attached.  

Is Xero stock priced to buy?

February 2025 saw Xero trading at around $180 per share but has recently dropped below the $100 mark. Still a hefty price tag, but is it a steal for one of our most high-profile tech growth stocks?

There is no single event driving the share price declines for Xero. A combination of sector headwinds, acquisition decisions and overvaluation concern in growth stocks have fuelled the sell-off.

In June 2025, Xero announced the acquisition of US-based bill pay platform, Melio, in a bid to expand its footprint in the lucrative US market. But the US $2.5 billion price tag and the decision to partly finance the purchase through the issue of new shares left some investors cold. In addition, some investors worried that the acquisition wouldn't produce results, given the more competitive US landscape.

That said, Xero continues to post revenue growth and strong cashflow. And the potential in the US market is significant, if it can execute. Given its track record of disciplined growth over the last few years, I believe it can.

For me, Xero remains a solid option for long-term investors. There is a valid question around whether it can return to the lofty valuations of early 2025. However, if it makes a successful play in the US market with Melio, I believe it will deliver some solid returns in years to come.

Is Bapcor stock priced to buy?

Aftermarket automotive parts provider, Bapcor, has experienced share price declines of over 50% in the last year, from highs above the $5 mark in February 2025. The drop has been driven by a combination of earnings downgrades, operational disruption and notable leadership movements. In addition, lower discretionary consumer spending has impacted its retail business.

In December 2025, Bapcor reported an expected net loss of $5-8 million for the first half of FY2026, down from a profit forecast of $3-7 million. This represented its second downgrade of the year, after initially anticipating $14-18 million in profit.

On the leadership front, the company announced the appointment of experienced CEO, Chris Wilesmith (ex Jaycar Electronics, Mitre 10 and Supercheap Auto) on 18 December 2025. Response to the move was positive, with the share price jumping 12%. But it has come on the tail of significant group leadership movement that has left some investors wary.

At this point, Bapcor is a turnaround play. The experienced hand of Wilesmith at the helm offers some reassurance. But there is a significant journey ahead.

For me, Bapcor is one for the watch list, for now. However, more risk-tolerant investors may see an opportunity at current prices.  

The post Down 50% from recent highs: Is it time to buy these ASX stocks? appeared first on The Motley Fool Australia.

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