On Monday, Reliance Worldwide Corp Ltd (ASX: RWC) leapt nearly 7%, while AMP Ltd (ASX: AMP) rose 4.2%. 

These were two of the best-performing stocks yesterday, in a day the S&P/ASX 200 Index (ASX: XJO) fell 0.4%.

Both had hovered close to yearly lows for some time. 

However, now could be the start of a long-term rebound. 

Why did these ASX shares suddenly jump higher?

Yesterday, investors were gobbling up Reliance Worldwide shares after the company announced that it will undertake a further on-market share buyback targeting $120 million.

The company said the new buyback was in addition to a US$15.3 million buyback announced on February 17. That buyback was part of its interim distribution, which included a US2 cents per share dividend.

The company's Chair, Russell Chenu, said: 

RWC has continued to generate strong cash flows over the past two years despite subdued end markets. This has enabled us to substantially reduce net debt. Consequently, RWC's leverage ratio has fallen below the bottom end of our target range of 1.5 time to 2.5 times net debt to EBITDA. Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy.

Meanwhile, AMP, a diversified financial services company, saw its share price rise more than 4% despite no price-sensitive news from the company. 

This was the first sign of relief for the company in 2026, after it had fallen more than 33% so far this year. 

Are these rebounding ASX shares a buy?

Reliance Worldwide shares closed yesterday at $3.12 each. 

Based on recent targets from brokers, it seems yesterday's rebound could be a sign of things to come. 

In February, Morgans released a research note to its clients on Reliance, with a price target of $3.50. 

Also in February, Macquarie had a price target of $4.75 on Reliance shares. 

From yesterday's closing price, these targets indicate an upside between 12% and 52%. 

It's a similar story for AMP shares. 

They closed yesterday at $1.22. 

Recent price targets suggest they could be undervalued after their rough start to the year. 

Morgan Stanley recently issued a buy rating and a $1.90 target price for the stock. 

Citi also has a buy rating and $1.80 target price.

Similarly, Jefferies has a buy rating and a $1.75 price target. 

Finally, Jarden and Ord Minnett have a buy rating and a $1.65 target price on the AMP share price.

These targets indicate an upside between 35% and 55%. 

The post Two ASX shares on the rebound appeared first on The Motley Fool Australia.

After bouncing around quite a bit in red territory this session, the ASX 200 ended up closing 0.39% lower by the time trading wrapped up today. That leaves the index at 8,583.4 points.

This rather gloomy start to the Australian trading week follows a similarly bearish end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early lead to finish down 0.26%.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 0.93%.

But let's get back to this week and the local markets now for a checkup on how today's tough trading conditions affected the different ASX sectors this session.

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

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Lifestyle Communities Ltd (ASX: LIC)

The Lifestyle Communities share price is up 2% to $5.43. This appears to have been driven by a broker note out of Citi. According to the note, the broker has upgraded the retirement communities company's shares to a buy rating with a $5.60 price target. The broker notes that Hometown Australia recently bought a 9.8% stake in the company. It highlights that the $58.46 million deal was undertaken at a premium to the prevailing share price. Citi suspects that this could lead to increased M&A speculation.

Perpetual Ltd (ASX: PPT)

The Perpetual share price is up almost 2.5% to $16.61. Investors have been bidding the financial services company's shares higher after it announced the sale of its Wealth Management business to Bain Capital for an upfront consideration of $500 million. Perpetual's CEO and managing director, Bernard Reilly, said: "Following a thorough sale process, we believe we have achieved the right outcome for our shareholders, clients and people, and one that reflects Wealth Management's longstanding reputation as a premium provider of high net worth advisory, fiduciary, philanthropic and not-for-profit offerings in the Australian market." Perpetual expects to use sale proceeds to pay down debt and fund further growth in its core Asset Management and Corporate Trust businesses.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is up 4.5% to $3.05. This morning, this plumbing parts company announced that it will undertake a further on-market share buy-back targeting $120 million. The company's chair, Russell Chenu, said: "RWC has continued to generate strong cash flows over the past two years despite subdued end markets. This has enabled us to substantially reduce net debt. Consequently, RWC's leverage ratio has fallen below the bottom end of our target range of 1.5 time to 2.5 times net debt to EBITDA. Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up over 2% to $31.77. This has been driven by a rise in oil prices due to supply disruptions caused by war in the Middle East. It isn't just Woodside that is rising today. The S&P/ASX 200 Energy index is up almost 1% at the time of writing.

The post Why Lifestyle Communities, Perpetual, Reliance Worldwide, and Woodside shares are rising today appeared first on The Motley Fool Australia.

The company said in a statement to the ASX that the new buyback was in addition to a US$15.3 million buyback announced on February 17, which was part of its interim distribution, which also included a US2 cents per share dividend.

Company performing well

Reliance Chair Russell Chenu said the buyback reflected the Board's confidence in the company's strategy and outlook.

He said further:

RWC has continued to generate strong cash flows over the past two years despite subdued end markets. This has enabled us to substantially reduce net debt. Consequently, RWC's leverage ratio has fallen below the bottom end of our target range of 1.5 time to 2.5 times net debt to EBITDA1. Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy. We expect to be comfortably within the leverage ratio target range at the conclusion of the $120 million buy-back.

Reliance in mid-February said it had had a challenging first half, with its results impacted by US tariffs and weaker demand in the US and the UK.

Sales revenue was 4% lower at US$645.4 million for the first half, while net profit was 34.9% lower at US$43.7 million.

The company added:

As foreshadowed in RWC's FY25 earnings announcement in August 2025, operating earnings for the period were adversely impacted by US tariffs. The expected full year net impact of tariffs in FY26 is in the range of US$25 million to US$30 million, with the impact weighted to the first half of FY26. The benefits from the transfer of product sourcing away from China to lower tariff countries, coupled with price adjustments and cost reduction measures, will continue to flow through in the second half of FY26.

Reliance Chief Executive Officer Heath Sharp said the first half had been "particularly challenging" due to the US tariffs and weak markets.

He added:

While residential remodelling and new construction markets remained subdued, we have made significant progress on a number of strategic initiatives. We commissioned our new assembly facility in Poland and finalised plans for a new facility in Mexico which will support activity in the Americas and lower the impact of associated tariffs. During the half we also launched new product ranges with key distributors in Germany, France and Italy, while SharkBite Max was launched nationwide across Australia.

Morgans in February released a research note to its clients on Reliance and has a price target of $3.50 on Reliance Worldwide shares, compared with $2.92 currently.

Reliance Worldwide was valued at $2.24 billion at the close of trade on Friday.

The post Which industrial company has just announced a $120 million buyback? appeared first on The Motley Fool Australia.

The market took a breather yesterday to assess the impact of the US and Israel attack on Iran, with energy the only sector to rise.

Meanwhile, the following three ASX 200 shares hit new 52-week lows yesterday.

Are they a buying opportunity?

Let's ask the experts.

3 ASX 200 shares at 52-week lows

Sigma Healthcare Ltd (ASX: SIG)

This ASX 200 healthcare share fell to a 52-week low of $2.70 on Tuesday.

The stock has come off by 7.5% after reaching heady levels last year due to the Chemist Warehouse merger.

Morgans thinks Sigma Healthcare shares are still worth buying, but cautiously.

The broker downgraded its rating from buy to accumulate after going through Sigma's 1H FY26 report.

In a note, Morgans said:

SIG posted a solid 1H26, which was in line with consensus.

The highlights included solid CW LFL sales growth (up 15%), revenue growth higher than cost growth by 4.5%, and synergy targets on track.

We move to an ACCUMULATE (was Buy) due to YTD share price strength.

Morgans reduced its 12-month price target from $3.39 to $3.36.

Reliance Worldwide Corp Ltd (ASX: RWC)

The Reliance Worldwide share price fell to a 52-week low of $3.13 on Tuesday.

The ASX 200 industrial share has pulled back 35% over the past 12 months.

Morgans maintained a hold rating on the stock after reviewing the company's 1H FY26 report.

The broker commented:

RWC's 1H26 result was below expectations, impacted by ongoing subdued housing conditions in all regions and higher costs, particularly in relation to US tariffs.

Management anticipates trading conditions in 2H26 to remain broadly consistent with 1H26, albeit US tariff mitigation strategies and the roll-off of some costs should see an uplift in margins.

Longer term, RWC aims to reduce its exposure to copper price volatility by substituting copper with alternative materials such as plastic and stainless steel.

The company's new operations in Poland and Mexico will also help lower costs and provide manufacturing flexibility.

Morgans said it prefers "to wait for clearer signs of an improvement in housing conditions before reconsidering our view".

The broker slashed its 12-month price target from $4.50 to $3.65.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

This ASX 200 communications share fell to a 52-week low of 99 cents yesterday.

That's a 40% fall over 12 months.

Following the media giant's 1H FY26 report, Morgan Stanley reiterated its buy rating on Nine Entertainment shares with a $1.40 target.

UBS kept its hold rating on the stock and lowered its price target from $1.22 to $1.13.

The post 3 ASX 200 shares at 52-week lows: Buy, hold, or sell? appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here is a sample of the large number of ASX All Ords shares with ex-dividend dates next week.

ASX All Ords shares about to go ex-dividend

Which companies will we hear from today?

The big one today is the half-yearly report from supermarket network Coles Group Ltd (ASX: COL).

Woolworths shares ripped this week after the ASX All Ords consumer staples giant reported a 16% profit lift to $859 million for 1H FY26.

We'll also hear from TPG Telecom Ltd (ASX: TPG), Michael Hill International Ltd (ASX: MHJ), and Pexa Group Ltd (ASX: PXA).

The latest report from The Star Entertainment Group Ltd (ASX: SGR) will also be interesting, as investors seek further news on the turnaround plan for the beleaguered casino operator.

Yesterday, Star Entertainment shares bounced on news of a debt refinancing deal, including extra liquidity to fund the turnaround plan.

The post 35 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

But that has, at least in the eyes of the team at Macquarie, created a buying opportunity for a company they see as fundamentally sound.

So let's have a look at the first-half results.

Falls across the board

Reliance said earlier this week that net sales fell 4.6% to US$645.4 million, while net profit fell 34.9% to US$34.7 million.

The plumbing supplies company also announced an interim dividend of US2 cents, down from US2.5 cents, and a buyback of US$15.3 million, which it said would be the equivalent of another US2 cents per share in value.

A lot of the negative impact during the half, the company said, was caused by US tariffs.

The company said:

The expected full year net impact of tariffs in FY26 is in the range of US$25 million to US$30 million, with the impact weighted to the first half of FY26. The benefits from the transfer of product sourcing away from China to lower tariff countries, coupled with price adjustments and cost reduction measures, will continue to flow through in the second half of FY26.

The company's Chief Executive, Heath Sharp, said it was a difficult start to the year.

He added:

The first half has been particularly challenging as we have dealt with the twin impacts of US tariffs and weak end markets. However, we are really pleased with the progress we have made with our key strategic initiatives, which have further strengthened the business and mean we are well placed to benefit from an upturn in volumes. While residential remodelling and new construction markets remained subdued, we have made significant progress on a number of strategic initiatives. We commissioned our new assembly facility in Poland and finalised plans for a new facility in Mexico which will support activity in the Americas and lower the impact of associated tariffs. During the half we also launched new product ranges with key distributors in Germany, France and Italy, while SharkBite Max was launched nationwide across Australia.

The company said it expected trading conditions for the second half of the year to be "broadly consistent" with the first half.

Shares looking cheap

The team at Macquarie have looked at the result and believes there's room for significant share price recovery.

They said the company looks well-positioned for volume recovery alongside improvements in pricing, "so we believe any indication of volume recovery will be positive for the stock''.

The Macquarie team added:

This was a disappointing result, with known issues lingering longer than expected. At its core, Reliance is still executing well in a tough context. We believe valuation remains attractive given the leverage to an improvement in the volume outlook.

Macquarie has a price target of $4.75 on Reliance shares compared with $3.50 currently. If the price target were achieved, it would represent a total shareholder return of 37% including dividends.

The post After being sold down on weak results, one broker thinks Reliance Worldwide is a good buy appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is down 8% to $3.54. This morning, this plumbing parts company released its half-year results and reported a 4.6% decline in revenue to US$645.4 million and a 34.9% decline in reported net profit after tax to US$43.7 million. Reliance revealed that it was impacted by increased US tariffs and weaker demand in the US and UK. Net sales in the Americas dropped by 7.2% and EMEA (Europe, Middle East and Africa) sales rose by 2.4%.

Santana Minerals Ltd (ASX: SMI)

The Santana Minerals share price is down 12% to 86.5 cents. This has been driven by news that the gold developer has received firm commitments from institutional and sophisticated investors to raise $130 million. These funds are being raised via a placement of approximately 144.4 million shares at 90 cents per new share. Commenting on the news, Santana Minerals' executive director and CEO, Damian Spring, said: "This is a strong show of support for Santana and its proposed development of the Bendigo-Ophir Gold Project. This placement essentially fills the equity component of funding for the development with discussions on the remaining debt funding advancing well."

Sims Ltd (ASX: SGM)

The Sims share price is down 5% to $20.26. This follows the release of the scrap metal company's half-year results. Sims reported a disappointing loss of $29.9 million for the half. This includes unrealised losses on derivative contracts as at the reporting date, together with a further sizeable, expected credit loss on the residual receivable from Unimetals in the UK. Despite this, the company still increased its interim dividend by 40% to 14 cents per share.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down a further 5% to $4.72. Investors have been selling this wine giant's shares this week in response to the release of its half-year results. It was a tough half for Treasury Wine, with profit falling materially from the prior corresponding period. This led to the Penfolds owner suspending its dividend. The company's CEO, Sam Fischer, said: "Today's results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth. Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term."

The post Why Reliance, Santana Minerals, Sims, and Treasury Wine shares are falling today appeared first on The Motley Fool Australia.

What did Reliance Worldwide report?

• Revenue from ordinary activities: US$645.4 million, down 4.6% on the prior period
• Reported net profit after tax (NPAT): US$43.7 million, down 34.9%
• Reported EBITDA: US$111.1 million, down 22.2%
• Interim unfranked dividend: US2.0 cents per share (paid as 2.8206 Australian cents per share)
• On-market share buy-back of approximately US$15.3 million announced
• Basic earnings per share: 5.7 US cents, down 33.7%

What else do investors need to know?

The half-year results were impacted by increased US tariffs and weaker demand in the US and UK. The company noted that net sales in the Americas dropped by 7.2%, while the Asia Pacific region saw a mild 0.7% decline. EMEA (Europe, Middle East and Africa) sales rose slightly by 2.4%.

Despite a challenging environment, RWC achieved cost savings of US$4.4 million through better sourcing, manufacturing efficiencies, and distribution improvements. The interim total shareholder distribution of US4.0 cents per share, split evenly between a cash dividend and a buy-back, is above the company's usual payout ratio due to lower NPAT this period.

What's next for Reliance Worldwide?

Management has reaffirmed its commitment to distributing 40–60% of annual NPAT via both dividends and buy-backs, highlighting confidence in the company's long-term strategy. The board continues to see value in returning capital to shareholders, particularly through buy-backs in the current share price environment.

The business is focusing on cost controls, and improving operational and manufacturing efficiency. The company remains alert to global economic pressures, and is ready to adjust as trading conditions shift across its major regions.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which haas risen 5% over the same period.

View Original Announcement

The post Reliance Worldwide half-year earnings: profit falls, dividend steady appeared first on The Motley Fool Australia.

Let's see what's sparked their runs.

Alcoa (ASX: AAI)

Alcoa is a vertically integrated U.S. based aluminium producer with a global footprint across bauxite mining, alumina refining, primary aluminium smelting and casting, and associated energy generation.

Like many mining stocks, it has enjoyed a strong start to the year. 

Gold, silver and other commodity shares are continuing on from 12 months of strong performance. 

Alcoa shares have risen more than 18% year to date already. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up just 0.67%. 

This ASX 200 stock is now up 64% over the last 12 months, and is sitting close to an all-time high. 

So is there any more upside?

Alcoa shares closed yesterday at $94.75 per share. 

However, it appears estimates from analysts believe it is now trading above fair value. 

TradingView has an average 12 month price target of $74.11. 

This is approximately 21.8% lower than its current share price. 

Reliance Worldwide Corporation Ltd (ASX: RWC)

Reliance is the world's largest supplier of push-to-connect (PTC) brass plumbing systems for water and central heating applications.

This ASX 200 stock is already up almost 9% so far in 2025. 

This marks a rebound from a tough 2025. 

Its share price remains down almost 16% from a year ago. 

It seems this year's bounce back could continue based on guidance from analysts. 

TradingView has an average one year price target of $4.59 which indicates more than a 9% upside. 

Online trading platform Selfwealth lists this ASX 200 stock as undervalued by 20%.

Ramelius Resources Ltd (ASX: RMS)

Ramelius Resources is another ASX 200 materials stock continuing its bull run. 

It has risen by almost 8% so far this year. 

It is a gold mining and production company with its primary production being focused on the Mt Magnet goldmine in Western Australia. 

Over the last 12 months its share price is now up just over 100%. 

In recent news out of the company, it is maintaining its FY26 gold production guidance and lifting its minimum dividend to two cents per year.

Despite its rapid rise, there appears to be modest upside for this ASX 200 stock, although it is approaching fair value estimates. 

TradingView has an average one year price target of $4.71. 

This indicates an upside of 7.3%. 

Selfwealth lists the stock as undervalued by roughly 12%. 

The post Red hot: These ASX 200 shares are off to a strong start in 2026 appeared first on The Motley Fool Australia.

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

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

The most recent rebalance of the ASX indices is set to take effect from December 22, with the additions and exclusions to each index important for funds that look to track those indices.

As such, an inclusion can be a boon for shareholders, while an exclusion can put downward pressure on a company's share price performance.

With Lynas and Soul Patts to be included in the ASX 50, two companies, Amcor Plc (ASX: AMC) and Mirvac Group (ASX: MGR), will be removed.

China moves spur interest in Lynas

Lynas shares have been trading between $13 and $16 for the past month or so, after surging to a 12-month high of $21.96 in mid-October at a time when China flagged extra export controls on key rare earths elements.

The shares are still well up on the 12-month lows of $6.16, and Macquarie recently issued a research note maintaining its outperform rating for the stock, with a 12-month price target of $17. The shares closed Friday's session at $14.14.

As for the S&P/ASX 100 Index (ASX: XTO), vehicle dealership owner Eagers Automotive Ltd (ASX: APE) will be included in the next rebalance, as will Capricorn Metals Ltd (ASX: CMM).

The $7.57 billion Eagers, in recent months, announced a major capital raise at $21 per share to help pay for its $1.04 billion 65% buyout of CanadaOne Auto Group, with the shares continuing to trade well above that level, last changing hands for $26.84.

Analysts have looked kindly on the CanadaOne purchase, with Macquarie in early November saying the "acquisition of CanadaOne provides a platform for further North American inorganic growth, in what is a highly fragmented market''.

At the time, Macquarie had a price target of $29.98 on Eagers stock.

As for Capricorn Metals, its shares are up more than 100% over the past 12 months, during which time it acquired its Mt Gibson gold project where it has grown the mineral resource estimate to 4.5 million ounces of contained gold.

The company also recently acquired Warriedar Resources for an equity value of $188 million.

To make way for Eagers and Capricorn, Reece Ltd (ASX: REH) and Reliance Worldwide Corporation Ltd (ASX: RWC) will be removed from the ASX 100.

There will be no changes to the S&P/ASX 20 Index (ASX: XTL) this time around.

The post See which companies have just been added to key ASX indices appeared first on The Motley Fool Australia.

This hasn't gone unnoticed by the team at Macquarie Group Ltd (ASX: MQG).

So much so, the broker has run its takeover screen to see if there are any takeover candidates in the current market.

Macquarie points out that after re-running its takeover screen from five years ago, it found that 46% of the 37 stocks it identified had some form of M&A. It feels that this gives its screening process some merit. It explains:

With the offer for AUB plus media reports of PE interest in DMP, we have re-run our takeover screen from 2020. Looking back at the original, there were 37 stocks on the list and 46% had some sort of M&A (9 completed takeovers, 6 failed or pending, and 2 strategic stakes acquired), so the screen has merit. In our view, we are in an environment conducive to deals as the market is near its highs, credit spreads are tight and confidence in the outlook is improving. Our FOMO Meter is back up to +0.98, marking the strength of equity sentiment.

Which ASX stocks could be takeover targets?

According to the note, Macquarie has identified 16 ASX stocks that it believes could be attractive options for private equity and other suitors.

And from these, there are 11 ASX stocks in particular that standout.

These are pizza chain operator Domino's Pizza Enterprises Ltd (ASX: DMP), pharmaceutical products distributor EBOS Group Ltd (ASX: EBO), Dan Murphy's owner Endeavour Group Ltd (ASX: EDV), language testing company IDP Education Ltd (ASX: IEL), poultry producer Inghams Group Ltd (ASX: ING), intellectual property services provider IPH Ltd (ASX: IPH), packaging company Orora Ltd (ASX: ORA), Smiggle owner Premier Investments Ltd (ASX: PMV), hospital operator Ramsay Health Care Ltd (ASX: RHC), plumping parts company Reliance Worldwide Corporation Ltd (ASX: RWC), and healthcare company Sonic Healthcare Ltd (ASX: SHL).

Other candidates are Australian Clinical Labs Ltd (ASX: ACL), James Hardie Industries plc (ASX: JHX), Reece Ltd (ASX: REH), Spark New Zealand Ltd (ASX: SPK), and Viva Energy Group Ltd (ASX: VEA).

Commenting on the stocks, the broker said:

The result is 16 stocks. Of these, the forward PE is >1 standard deviation below the 10-year average for 11 stocks. Ranked by how far they are below their highs, they are IEL, DMP, IPH, RHC, PMV, EDV, ING, ORA, EBO, SHL and RWC. Two (RHC, ORA) already had failed takeover offers in recent years, while others have been the subject of takeover speculation. Based on the performance of the takeover screen from 2020, we would be surprised if none of the stocks on the list is the subject of takeover interest in the next year.

The post Macquarie names 16 potential ASX takeover targets appeared first on The Motley Fool Australia.

The company's board of directors managed to survive a spill resolution this week, after the company notched up a second consecutive strike vote against its remuneration report.

And the managing director, Heath Sharp's, address to this week's annual general meeting wasn't particularly rosy on the outlook either.

Difficult times ahead

Mr Sharp said, as the company advised while releasing its full-year results in August, that the economic times were challenging for the company. And this had not changed, he said.

The guidance provided at that time in unchanged. For the first half of FY26 we are not anticipating any improvement in activity levels in any of our key markets. As such, we expect consolidated group sales for the first half to be broadly flat to down by low single digit percentage points.

In the America market, the outlook was for low single-digit falls in sales revenue, while in the Asia Pacific and Europe, sales were expected to be "broadly flat".

Mr Sharp said the company also expected its margins to be eroded by tariffs, although he added there were moves afoot to ameliorate this.

The tariff mitigation initiatives we have underway are phased progressively throughout FY26, as we move product sourcing out of China and implement price increases. We therefore expect to see a disproportionate impact from tariffs on operating earnings and margins in the Americas in the first half of FY26.

Shares still look cheap

But despite this admittedly gloomy update, the team at Macquarie have an outperform rating on Reliance shares.

As they wrote in a note to clients this week:

Fundamentally, the business is in good shape – tariff mitigation is on track, a growth orientation is in focus and the organisation is M&A ready. Our overall take-away from the investor day is that the business is in good shape, well positioned and systemically enabled to take hold of volume improvement, with channel and supplier relationships that underpin this. Management cohesion is strong too.

The Macquarie analysts said the company was ready for acquisitions, "with all Reliance's regions seeking bolt-on, typically family-owned operations that extend product positions or channel representation".

Macquarie has an unchanged price target of $5.30 per share on Reliance, compared with the $3.97 closing share price on Thursday.

And once dividends are factored in, they say the stock could return a total of 34.7% over the next 12 months.

The post Macquarie says this industrial stock could return more than 30% in a year appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday despite a relatively positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.5% lower this morning. In late trade in the United States, the Dow Jones is up 0.55% and the S&P 500 is up 0.1%, but the Nasdaq is down 0.1%.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.6% to US$57.86 a barrel and the Brent crude oil price is up 0.6% to US$61.38 a barrel. Traders appear to believe that oil prices have been oversold.

AGMs taking place

A number of annual general meetings will be taking place today and trading updates could be provided before them. Among the ASX 200 shares holding events today are APA Group (ASX: APA), Fletcher Building Ltd (ASX: FBU), National Storage REIT (ASX: NSR), and Reliance Worldwide Corporation Ltd (ASX: RWC).

Gold price crashes

It looks set to be a bad session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price crashed overnight. According to CNBC, the gold futures price is down 5.6% to US$4,116.3 an ounce. This appears to have been driven by profit taking after gold's record rally.

Buy Hub24 shares

Hub24 Ltd (ASX: HUB) shares can keep rising according to analysts at Bell Potter. On Tuesday, the investment platform provider's shares jumped 10% following the release of a strong first quarter update. In response, Bell Potter has retained its buy rating on its shares with an improved price target of $135.00 (from $125.00). It said: "The current environment feels like FY22 when HUB traded around 37x blended forward EBITDA and market inflows are increasing from record levels. To that end we also think there is underappreciation of the expanded growth runway, with an appetite to allocate more advised clients and capital on platform. Investors have continued to re-rate HUB when exceeding expectations and we see emerging upside risk to FY27 guidance. Buy."

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

That's because analysts at Macquarie Group Ltd (ASX: MQG) have just named them as its top picks in the industrials sector.

Here's what the broker is saying about them:

James Hardie Industries plc (ASX: JHX)

Macquarie thinks investors should be buying this building products company's shares following recent weakness. Especially given the potential for monetary policy support to give it a boost. The broker has put an outperform rating and $37.20 price target on them. It commented:

While JHX's balance sheet represents a material risk, we remain constructive on the investment thesis. The stock has corrected materially, and the earnings base is well below mid-cycle. Monetary policy support could prove a key catalyst, while alignment should improve from here.

Cleanaway Waste Management Ltd (ASX: CWY)

Another ASX stock that could be a buy according to Macquarie is waste management company Cleanaway. The broker thinks that its shares are good value based on its growth outlook. Macquarie has an outperform rating and $3.50 price target on its shares. It said:

We continue to find the valuation/growth trade-off attractive, with the stock trading at an ever-widening discount to US peers. Operational performance is lifting, and we expect improving returns and cash flow to aid the thesis.

BlueScope Steel Ltd (ASX: BSL)

Macquarie also thinks that steel producer could be an ASX stock to buy following earnings season. It has an outperform rating and $25.45 price target on its shares. Commenting on the company, it said:

Steel price trends are key. Near term has been softer, but BSL reinforced positive market commentary on demand and pointed to stabilisation in a US context. AU housing exposure should also gain from monetary policy support.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Finally, this plumbing parts company is being tipped as a buy by Macquarie. It believes the ASX stock is well-positioned for a market recovery following a difficult period. And given its attractive valuation, it has put an outperform rating and $5.30 price target on its shares. Macquarie commented:

Management are executing well against a complicated backdrop, positioning the business for any market recovery and settling in trade complexities. Valuation attraction is compounded by earnings recovery potential beyond tariff impacts.

The post Macquarie's top ASX stock picks after earnings season appeared first on The Motley Fool Australia.

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

To receive an ASX share's dividend, you must buy or already own the stock before its ex-dividend day.

Next week, a large number of ASX shares will go ex-dividend.

We provide a sample of those ASX shares below.

If you want to buy any of these ASX shares while they are still trading cum dividend, time is running out!

30 ASX shares about to go ex-dividend

The post 30 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

But there is one ASX 200 stock travelling in the opposite direction.

The Reliance Worldwide Corp Ltd (ASX: RWC) share price is in the red at the time of writing this morning, down 3.38% to $4.145.

It's a sharp 9.9% drop from where the share price was on Monday this week.

What has caused the decline?

The plumbing parts company revealed its FY25 results yesterday morning, posting a 5.5% lift in sales and a 13.5% rise in reported net profit after tax. Adjusted net profit after tax was just 0.5% higher. 

The company decided not to give an outlook on guidance for FY26 revenue or earnings expectation, citing "uncertainty around the immediate economic outlook in each of these key markets".

Investors are clearly concerned. By lunchtime yesterday, the company's share price had dropped 8%, and the trend has continued through to this morning.

Macquarie's stance on the ASX 200 stock

Despite the drop in investor confidence following RWC's financial results, Macquarie Group Ltd (ASX: MQG) is still positive about share price growth over the next 12 months.

In a note to investors today, the broker has confirmed its outperform rating on the stock. At the same time, it lowered its target price to $5.30, down from $5.50 in May.

Despite the lower valuation, the new target price still represents an impressive potential 27.9% upside for investors over the next 12 months.

"Valuation: We lower our SOTP-based TP to $5.30ps (from $5.55ps) on unchanged FY27E multiples (and discounting back to 12-months out). Our TP implies a 12.8x FY27E EV/EBIT vs an average ~14.4x NTM EBIT since listing," Macquarie said in its note.

"OP. A weak market context is not much of a surprise, but the stock corrected after a good run into results. We maintain that RWC is well positioned for eventual recovery and valuation is attractive – at 13.6x NTM EV/EBIT, a ~10% discount to RWC's nine-year average, ahead of a cyclical recovery."

What else did Macquarie say?

Macquarie explains that the business looks well-positioned for volume recovery and therefore the broker believes any indication of improving positions will be positive for the stock.

"Monetary policy could certainly help, but consumer confidence improvement seems a key pre-requisite for volume lifts in key end markets," it said.

Macquarie also points out that the business has cut costs, lifted its 2H FY26 cash conversion, and reiterated its mitigation outcomes on tariffs by FY27. 

"A guide for a lesser US$25-30m FY26 impact includes current tariff settings, including copper impost. A strategic approach with customers to the commercial complexities should stand RWC in good stead in the medium term."

The post Macquarie tips 28% upside for this ASX 200 stock after reviewing its FY25 result appeared first on The Motley Fool Australia.