I'm going to look at the return potential of EVT Ltd (ASX: EVT), which is one of the businesses that is liked by the investment team at the listed investment company (LIC) WAM Research Ltd (ASX: WAX).

WAM Research looks to invest in the most compelling undervalued growth opportunities in the Australian market and EVT was one of the top 20 holdings of the WAM Research portfolio at the end of March 2026.

The fund manager describes EVT as an Australian entertainment and hospitality company with operations spanning hotels, cinemas and travel experiences. It has around 100 hotels with more than 15,000 rooms, with cinemas across Australia, New Zealand and Germany.

Let's take a look at what could allow the business to provide capital growth of more than 20% in the next year.

What's to like about the ASX 300 share?

WAM Research pointed out that the company delivered a positive investment return during March, building on positive momentum from its FY26 half-year result released in February.

The HY26 result showed revenue growth of 5.4%, while net profit grew by 21.6%. It said that this result was supported by record performance in the hotels division and solid contributions from Thredbo and EVT's international operations.

In March, EVT completed a $750 million refinancing, extending debt maturities and improving covenant headroom.

WAM concluded its thoughts with the following:

This was broadly viewed by the market as enhancing financial flexibility to support future hotel expansion.

In terms of a trading update, the company is expecting the second half to show growth, subject to film performance and weather conditions.

The ASX 300 share's hotels division is expected to deliver another operating profit (EBITDA) record year. New growth is expected from previous growth initiatives.

In the entertainment division, the second is expected to show growth, while Thredbo visitation was impacted by regional bushfires, while the winter 2026 (the month of June) is subject to weather conditions.

What could the return be?

No-one can know what the returns are going to do, but analysts are optimistic about what could be next with the business.

According to CMC Invest, there are currently three buy ratings on the business, with an average price target of $16.85 between them, which implies a possible rise of 24% within the next year.

The lowest price target of $16.40, which would be a rise of over 20%. The highest price target is $17.31, which suggests a possible rise of 27%.

The post Why this ASX 300 share could rise by 24% according to experts appeared first on The Motley Fool Australia.

We all love a good dividend yield. Dividends represent real returns on an investment, and are a valuable source of passive income and investing cash flow. So logically, the higher the yield, the better, right? Well, usually not. The market always prices a share on a risk-reward spectrum. And when it comes to dividend shares, a good rule of thumb to use is 'the higher the dividend yield, the higher the potential risk'.

If an 8% dividend, for example, is viewed as secure and reliable, investors will seek it out, consequently increasing the price of that company's shares and lowering its dividend yield until the supply and demand balance out. If it is viewed as potentially unreliable, however, there will be fewer buyers, and thus, a higher yield will be on offer.

Let's check out a popular example of this phenomenon in action.

Shares of listed investment company (LIC) WAM Research Ltd (ASX: WAX) are currently trading on a dividend yield of 8.16% at the time of writing. At first glance, that yield checks out. WAM Research has funded two dividends over 2025. The first was the interim dividend worth 5 cents per share, paid out in April. The second was the 5 cents per share final dividend that we saw hit investors' pockets in October. Both payments came partially franked at 60%.

At today's WAM Research share price of $1.22, that 10 cents per share in annual payouts gives this ASX dividend share a trailing yield of 8.16%.

An ASX dividend share with an 8.16% yield?

But remember, an ASX dividend share's trailing yield reflects the past, not the future. No ASX share is guaranteed to pay the same level of dividends as it did in a previous year.

So let's check out why the market is pricing WAM Research with such a high dividend yield.

A few days ago, this ASX LIC released its latest monthly report. This revealed that the net tangible assets (before tax) of WAM Research's underlying investment portfolio came in at $1.04 per share as of 30 November.

That happens to be less than what the company had five years ago. Back in November 2020, WAM Research reported a pre-tax NTA of $1.13 per share. This means that this LIC's portfolio has lost value over a period that saw the S&P/ASX 200 Index (ASX: XJO) climb almost 30%. Over those five years, WAM Research has dutifully collected its management fee of 1% per annum (plus GST, of course), though.

We can see this reflected in the WAM Research share price. As it stands today, the company is a nasty 20.45% below where it was trading at five years ago today.

So clearly, WAM Research isn't actually growing its underlying holdings, yet paying out a large dividend every six months. The market arguably views this as unsustainable, which would explain this ASX dividend share's outsized 8% yield right now.

In my view, this is a classic income trap and should be avoided by anyone who wishes to protect their capital.

The post Income trap? Don't be fooled by this ASX dividend share's 8% yield appeared first on The Motley Fool Australia.

Following earnings season in August, scores of ASX companies are paying out millions in dividends to shareholders.

Those participating in dividend reinvestment plans (DRPs) are receiving their new shares, typically on the same day that cash dividends are paid out.

If you'd like to receive any of the dividend payments below, you need to buy these ASX shares before their ex-dividend dates.

Each time a company announces its next dividend, investors have a typically short time period to invest anew or top up their holdings to maximise their dividend income.

Here at The Fool, we do not recommend buying shares in a company you have not researched just to get the next dividend payment.

Our stock analysts say the decision to invest should be much more considered and strategic than that, and based on fundamentals.

Many investors employ a dollar-cost averaging strategy on ex-dividend dates to reduce the average cost of their holdings over time.

These investors already own stock in the company.

They target the ex-dividend date for further purchasing because the share price tends to fall on the ex-dividend day, potentially providing an attractive buy-the-dip opportunity.

Here are 16 ASX shares going ex-dividend next week.

16 ASX shares with ex-dividend dates next week

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

Australia is a great country, but there are other markets that could help deliver stronger growth and/or have bigger total addressable markets.

We're going to look at two ASX 300 shares that excite the investment team from the listed investment company (LIC) WAM Research Ltd (ASX: WAX). These stocks are already delivering strong revenue growth, and there's potential for plenty more.

Tuas Ltd (ASX: TUA)

Wilson Asset Management describes Tuas as a Singaporean mobile network and telecommunications services provider.

The fund manager pointed out that on 11 August 2025, the company announced a transformative acquisition: the purchase of telecommunications company M1 from global asset management company Keppel for S$1.43 billion.

This deal, which is pending regulatory approval by November, positions Tuas as a full-service telecommunications provider with a projected combined revenue of S$949 million and operating profit (EBITDA) of S$256 million.

WAM said that management highlighted "significant cost efficiencies through shared infrastructure and capital expenditure discipline".

The fund manager believes the market is significantly underestimating the size of the synergies available for the ASX 300 share.

WAM also believes that the proven track record of chair David Teoh and the opportunity to capture increased market share "underpin the company's earnings upgrades over the medium term", and S&P/ASX 200 Index (ASX: XJO) inclusion is a "key near-term catalyst".

Lovisa Holdings Ltd (ASX: LOV)

The other ASX 300 share that WAM highlighted was Lovisa, an international specialist fast fashion and jewellery retailer operating more than 1,000 stores across 50 countries.

WAM highlighted the company's FY25 result, which showed revenue growth of 14.2% to $798.1 million with net profit after tax (NPAT) rising 4.8% to $86.3 million. The gross profit margin increased to 82%.

The fund manager said that store expansion remained the "primary driver" of revenue growth, with 162 stores opened during the period, including new markets in Africa and the Americas.

The experts noted that early FY26 trading showed a 5.6% increase in comparable sales for the ASX 300 share. WAM believes this strong start to the 2026 financial year signals momentum for the company over the next year.

The investment team also believe that the recently-appointed CEO of John Cheston is "well positioned to execute on an acceleration in global store rollout, supported by one of the strongest retail executive teams on the ASX."

The post Why these are 2 of the most exciting ASX 300 shares to buy right now appeared first on The Motley Fool Australia.

The investment team in charge of the listed investment company (LIC) WAM Research Ltd (ASX: WAX) is looking for the most compelling undervalued growth opportunities in the Australian market.

The WAM Research portfolio is invested across a variety of sectors including healthcare, telecommunications, travel, discretionary retail and so on.

Both businesses that WAM highlighted in the WAM Research portfolio have a heavy tech element and are delivering strong growth. Let's take a look at these names.

Temple & Webster Group Ltd (ASX: TPW)

WAM describes Temple & Webster as Australia's leading online homewares and furniture platform.

The fund manager said that during July, the Temple & Webster share price rose thanks to "rising online retail confidence, improved consumer discretionary spending and supply logistics normalisation market optimism alongside improving sector and macroeconomic conditions."

WAM points out that the high-growth ASX share is reliant on its drop-shipping e-commerce business model, which has benefited considerably from structural growth in online furniture and homewares retail sales alongside easing supply chain constraints.

The fund manager explained why the outlook is positive for the business:

With disposable income stability supporting discretionary retail spending, Temple & Webster Group stands to benefit from further interest rate cuts and eventual recovery in the housing market.

Gentrack Group Ltd (ASX: GTK)

The other company that WAM highlighted was the utility and airport enterprise software business, Gentrack. It provides billing, customer and operations management software for businesses around the world.

WAM noted that the Gentrack share price declined in July (by 15%). This was mostly due to the loss of an Australian customer contract that the fund manager "understands was in part driven by management's decision to withdraw from the process given a deterioration in contract profitability."

While not important to the company's revenue in the coming financial years, the loss impacted the market's confidence about the company's competition and contract retention, according to WAM.

The fund manager pointed out Gentrack maintained its medium-term guidance, projecting revenue growth at a compound annual growth rate (CAGR) of more than 15%. The operating profit (EBITDA) margin is expected to be between 15% to 20% after expensing all development costs.

WAM concluded:

We believe the company is well positioned to secure a number of contract opportunities in the near-term which has the capacity to drive a re-rating. In other words, the fund manager is expecting the high-growth ASX share to recover.

The post 2 high-growth ASX shares this fund manager is bullish about appeared first on The Motley Fool Australia.

The investment team from Wilson Asset Management (WAM) have outlined two of the opportunities in the WAM Research Ltd (ASX: WAX) portfolio. This listed investment company (LIC) aims to find the most compelling undervalued growth opportunities on the ASX share market.

Let's take a look at the two compelling businesses that have been highlighted.

Collins Foods Ltd (ASX: CKF)

WAM describes this ASX share as the largest operator of KFC restaurants in Australia and a growing operator of fast-food restaurants in Europe

The fund manager pointed out that the Collins Foods' share price increased 17% after releasing its FY25 result last month and continued to rally over the rest of month.

WAM noted Collins Foods shares reported a record of $1.52 billion in revenue, strong net operating cash flows of $181.4 million and a reduction in net debt in $137.9 million.

The investment team explained that the key highlight was the better-than-expected profit margins in the second half of the financial year for KFC Australia, as cost deflation and productivity improvements shone through despite challenging market conditions.

Collins Foods' management commentary is underpinning WAM's confidence that there will be a return to earnings growth in FY26. A (potential) recovery in performance is attributed to improving sales growth momentum, continued restaurant expansion, marketing and product innovation and a second-half margin rebound as expected interest rate cuts drive improved consumer sentiment, according to WAM.

Austin Engineering Ltd (ASX: ANG)

This ASX share is a mining equipment specialist. The Austin Engineering share price dropped 16% after releasing a trading update at the start of the month, which saw the business downgrade its FY25 operating profit (EBIT) guidance to $41 million because of margin pressure on a large Chilean truck-body contract that necessitated higher ramp-up costs.

In that update, management lifted its FY25 revenue guidance to approximately $370 million, which is up approximately 18% year-over-year. However, margin pressure was a disappointment.

WAM noted the ASX share is implementing measures to improve the profit margin recovery, including temporarily relocating production to the site in Batam, whilst improving overall plant efficiency.

The WAM investment team believe this is a short-term setback which is reflective of "transitional challenges" that "should normalise" in FY26 as management drive operational improvements and margins recover across a larger revenue base.

The post Here are 2 exciting ASX shares rated as buys appeared first on The Motley Fool Australia.

In my mind, it's easier for a small business to double in size than it is for a large business to double in scale. There is only so much of an addressable market for companies to grow into. Eventually, they'll hit a market share growth ceiling.

The fund manager Wilson Asset Management (WAM) has picked out two compelling small ASX shares in the WAM Research Ltd (ASX: WAX) portfolio that could deliver good returns. Let's get into what the WAM investment team think of these two stocks.

Service Stream Ltd (ASX: SSM)

WAM describes Service Stream as a provider of essential network services to the telecommunications and utility sectors.

The investment team pointed out that the small ASX share delivered a strong FY25 half-year result, with revenue rising 7.9% year over year to $1.27 billion.

The fund manager noted that earnings growth was driven by "solid operational performance" across all divisions, with operating profit (EBITDA) up 16.4% and adjusted net profit after tax (NPAT) up nearly 50%.

WAM pointed out that the Service Stream share price performed well during April – it rose 6.9% compared to the 3.6% rise of the S&P/ASX 200 Index (ASX: XJO). This occurred amid broader market volatility because companies exposed to evolving tariff policies came under pressure.

The investment team then explained why they still like the business:

Service Stream's defensive earnings profile and long-term contracts reaffirms its position as a resilient, cash-generative operator.  

Maas Group Holdings Ltd (ASX: MGH)

The other small ASX share Wilson Asset Management highlighted in the WAM Research portfolio was Maas Group, a diversified construction materials, equipment, and services provider with exposure to civil infrastructure, mining, and real estate markets.

WAM said that the company continues to execute its growth strategy strongly, with construction materials remaining its key engine for organic expansion and strategic mergers and acquisitions.

In late March, the Maas Group founder and CEO, Wes Maas, increased his personal stake in the business, which demonstrates his confidence in the company's outlook.

The Maas share price rose by 9.1% in April 2025, which WAM believes reflected renewed investor interest in companies exposed to the domestic economy, benefiting from lower interest rates.

The investment team explained:            

We remain constructive on Maas Group Holding's outlook, underpinned by continued portfolio optimisation, a disciplined approach to growth and strong execution.

The post 2 small ASX shares to buy that have big potential appeared first on The Motley Fool Australia.

Pinnacle is an Australian investment business that invests in other fund managers and provides a range of asset management services. Some of its services include distribution and client services, seed funds under management (FUM) and working capital, middle office and fund administration, compliance, finance, legal, technology and other infrastructure, and an interface for outsourced services.

The investment team at Wilson Asset Management (WAM) have identified Pinnacle as an ASX 200 stock worth owning inside one of its listed investment companies (LICs), WAM Research Ltd (ASX: WAX). This LIC is targeting "the most compelling undervalued growth opportunities in the Australian market."

Why does WAM like the business? An important part of the thesis relates to recent acquisitions by Pinnacle.

Compelling acquisitions

WAM pointed out that in November, Pinnacle announced the acquisition of strategic interests in VSS Capital, a New York-headquartered private markets investment business, and Pacific Asset Management (PAM), a London-based asset management platform.

The ASX 200 stock also recently completed a $400 million institutional capital raising, the proceeds of which will be used to fund those strategic investments.

Pinnacle announced it will pay US$60.5 million for a 22.5% equity stake in VSS and £25.75 million for a 25% stake in Pacific Asset Management.

WAM noted that the capital raised would also help seed new strategies for its existing affiliate businesses and support new investments in its growth initiatives.

The company said that it continues to see strong momentum into FY25, with ongoing growth in private markets and other alternative strategies. It's seeking to further diversify across high-growth asset classes and expand internationally.

Both VSS and PAM are examples of Pinnacle's focus on international acquisitions with "substantial growth potential" where it thinks it can add value to accelerate growth.

Pinnacle is also continuing to support the growth of current affiliates, including through increased investment in distribution channels domestically and internationally.

At the time of the acquisition, Pinnacle Managing Director Ian Macoun said:

We have made great progress in exporting our unique multi-affiliate model globally. These transactions not only accelerate and enhance our international growth ambitions, but they also provide additional asset class diversification and support further growth of our platform.

WAM concluded its positive thoughts on the ASX 200 stock with the following:

We believe the capital raising will continue to support the business' future growth and are excited to see further investments in new affiliates.

ASX 200 stock valuation

According to the forecast on Commsec, the Pinnacle share price is valued at 42x FY25's estimated earnings.

The post Up 125% in 2024, why this rocketing ASX 200 stock can keep flying appeared first on The Motley Fool Australia.

Over the last few years, it has focused on increasing profitability, which has helped rebuild some investor confidence in the business.

But, one move by the department store business has excited the market, including fund manager Wilson Asset Management (WAM).

Myer is one of the biggest 20 positions in the WAM Research Limited (ASX: WAX) portfolio, with the listed investment company (LIC) looking for "the most compelling undervalued growth opportunities in the Australian market".

A recent announcement is one of the main reasons WAM is bullish.

A big acquisition for the ASX All Ords stock

WAM noted that in October, Myer announced a $864 million plan to buy the apparel business of Premier Investments Limited (ASX: PMV). That deal will add 719 stores to Myer's 56 department stores.

With the ASX All Ords stock's acquisition comes a number of brands including Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E, with those businesses separately catering for younger shoppers and older women.

The fund manager believes that Myer's new executive chair, Olivia Wirth's growth strategy is a "great outcome" for both Myer and Premier Investments shareholders.

For Myer and the apparel brands, WAM has estimated conservative synergies of $30 million and a growth strategy led by its customer loyalty program, Myer One. The fund manager noted that this merger was being conducted in a "very tough environment" for retail.

For Premier Investments, the analyst team believe the market can now "finally see the quality of the Smiggle and Peter Alexander businesses and the offshore growth strategy, which can drive a higher valuation over time".

What did Myer say about the deal?

Myer believes the acquisition will significantly enhance the scale and capabilities of the business to drive growth, operating leverage and greater capacity to invest in growth across the combined Myer business.

The ASX All Ords stock also said the combined business would be well-positioned to take advantage of capabilities in product development, design, sourcing and distribution to "realise the full potential of Myer's exclusive brands and private label portfolio and deliver improved margins for the group."

Myer calculated that before including the synergies benefits, in FY24, a combined business would have made $4 billion in sales, $1.65 billion in operating gross profit, and $250 million in operating profit (EBIT) from 783 stores.

The meeting for shareholders of the ASX All Ords stock to vote on approving this deal is expected to be held in late January. The transaction's completion is scheduled for early 2025.

The post Why one leading fund manager thinks this fallen ASX All Ords stock is a turnaround buy appeared first on The Motley Fool Australia.

A LIC invests in shares/assets that it believes can produce good returns for shareholders, and WAM Research Limited (ASX: WAX) has a deep research process to find such opportunities. It looks at factors like free cash flow, return on equity (ROE), meeting management, and a company's overall quality.

On paper, Sigma may not sound like a rapidly growing business. It describes itself as a leading Australian full-line wholesale and distribution business to pharmacies. It has retail pharmacy brands, including Amcal and Discount Drug Stores, as well as an independent offering called PriceSave.

But there's one key reason why WAM likes the ASX healthcare shares so much.

Potential merger with Chemist Warehouse

Sigma is currently attempting to merge with Chemist Warehouse, the biggest pharmacy business in Australia.

Combining the two companies would lead to significant scale, adding revenue and cost synergies. A combined business would have the potential to generate much bigger profits than if the two companies stayed separate.

The Australian Competition and Consumer Commission (ACCC) is considering this proposed merger carefully because it could reduce competition in the pharmacy space.

The ACCC said it had concerns, including "the potential harm to pharmacies currently supplied by Sigma and the potential for Chemist Warehouse to access these pharmacies' data in ways that damage competition".

However, Sigma recently offered a number of court-enforceable undertakings to attempt to allay the ACCC's fears.

WAM noted that despite the ongoing regulatory process, the market appeared more confident that the proposed merger with Chemist Warehouse would be approved.

The investment team said the Chemist Warehouse management remained confident in its ability to expand in Australia and overseas.

If the merger does get the go-ahead, the WAM team is "excited at the prospect of owning one of the country's best retailers with a global store roll-out on the horizon".

What will the ASX healthcare share do to get the deal across the line?

Sigma's undertakings include not preventing or hindering franchisees who entered into their franchising arrangements before 1 January 2024 from terminating their franchise agreements with Sigma for a period of three years.

Next, it would place restrictions on the collection, use and disclosure of confidential data and information from Sigma's wholesale customers and customers for a period of three years.

Finally, Sigma would also remain a participating pharmaceutical wholesale under the Commonwealth Government's Community Service Obligation (CSO) arrangements for at least five years.

The ACCC is seeking feedback about these moves to address competition concerns, and it continues to investigate the impact of the proposed acquisition.

Sigma Healthcare share price snapshot

The company's stock has climbed a hefty 85% since the start of 2024, as shown in the chart below.

The post Here's why a leading fund manager is excited by this ASX healthcare share appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 3% to 30 cents. This appears to have been driven by profit taking after the semiconductor company's shares rocketed higher in recent weeks. Even after today's pullback, Brainchip's shares are up approximately 90% since this time last month. This is despite there being no announcements released to the share market. It did unveil Akida Pico earlier this month on its website. It is a low power acceleration co-processor that enables the creation of very compact, ultra-low power, portable and intelligent devices for wearable and sensor integrated AI. Brainchip's next quarterly update is due to be released later this month.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down 2% to $2.76. This morning, the building materials company announced the completion of the retail entitlement offer component of its capital raising. Fletcher Building raised a total of NZ$700 million under the placement and entitlement offer. This includes gross proceeds of approximately NZ$587 million from institutional investors and approximately NZ$113 million under the retail entitlement offer. However, approximately 13 million new shares were not taken up under the retail entitlement offer and have been allocated to the underwriters. If they have decided to sell them on-market today, that could be weighing on its share price.

Neometals Ltd (ASX: NMT)

The Neometals share price is down almost 17% to 10 cents. This sustainable process technology developer's shares have come under pressure after it received firm commitments from sophisticated, professional, and institutional investors for a $4 million placement. These funds were raised at a discount of 9 cents per new share. Managing Director Chris Reed said: "The capital raising will reinforce commercialisation activities by Neometals' battery recycling plant building joint venture, Primobius, as it delivers its maiden plant for Mercedes-Benz."

WAM Research Limited (ASX: WAX)

The WAM Research share price is down 6% to $1.11. This has been driven by the investment company's shares going ex-dividend this morning for its final dividend of FY 2024. In August, WAM Research declared a partially franked final dividend of 5 cents per share. Eligible shareholders can look forward to receiving this payout later this month on 25 October.

The post Why Brainchip, Fletcher Building, Neometals, and WAM Research shares are tumbling today appeared first on The Motley Fool Australia.

From data infrastructure to healthcare and e-commerce, Osberg says companies embracing AI innovation are poised for growth and efficiency gains, which will make them attractive prospects for ASX investors.

"Across our investment portfolios, we are positioned to capitalise on AI developments and are focused on finding good quality companies run by strong management teams, with a catalyst to re-rate the share price," he says.

Largest technological change ever seen

Companies already positioned to use AI to accelerate revenue growth and/or reduce operational costs would benefit most from this rising trend, according to Osberg.

He added that there was much excitement in the business community as to how AI might impact company operations, commenting:

In the past year, our small-to-mid cap investment team has conducted over 5,000 company meetings, engaging with management teams to explore how artificial intelligence (AI) could potentially reshape their business, both positively and negatively.

While it is early days, the consensus among these discussions is overwhelmingly positive, with many seeing AI as the largest technological change they have seen.

Which 4 ASX shares stand to benefit from the AI revolution?

Osberg names four ASX shares that he says are well-positioned to benefit from artificial intelligence.

NextDC Ltd (ASX: NXT) stocks

Osberg manages the WAM Capital Ltd (ASX: WAM) and WAM Active Ltd (ASX: WAA) listed investment companies (LICs), which both invest in NextDC shares.

This ASX 200 tech share has risen 21% in the year to date and 48% over the past 12 months.

"The surge in AI is expected to drive increased data consumption, storage and connectivity demands," Osberg says.

"NextDC, a leading data centre operator, stands to capitalise on this trend, highlighted by its recent $1.3 billion capital raising to accelerate development of data centres in Sydney and Melbourne."

Megaport Ltd (ASX: MP1) shares

WAM Capital also invests in Megaport shares. The Megaport share price has risen 47% in the year to date and 150% over the past 12 months.

"Furthermore, Megaport, a provider of on-demand data connection services, is well-positioned to leverage AI-driven revenue growth in data connectivity," Osberg says.

Megaport reported a 785% improvement in EBITDA and a 43% jump in gross profit for the first half.

Pro Medicus (ASX: PME) stocks

This ASX 200 healthcare stock has risen 18% in the year to date and 88% over the past 12 months.

"Pro Medicus, a healthcare software provider, utilises AI to develop technology capable of assisting radiologists," Osberg says.

Goldman Sachs forecasts AI to comprise 9% of Pro Medicus' revenue by FY30.

The broker says:

PME is generating revenue from its Visage breast density AI algorithm … today, and we see the potential value for AI to be significant with adoption driven by improved accuracy and clinical outcomes.

Temple & Webster (ASX: TPW) stocks

Osberg also manages the WAM Research Ltd (ASX: WAX) LIC, which is invested in Temple & Webster shares. The ASX retail share has risen 34% in the year to date and 205% over the past 12 months.

"As AI gradually reduces human involvement in routine tasks, e-commerce companies such as Temple & Webster stand to benefit by reducing operational costs through AI-driven automation, particularly in customer service activities," Osberg says.

The post 4 ASX shares exposed to the 'largest technological change ever seen' 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 dropping:

Nuix Ltd (ASX: NXL)

The Nuix share price is down almost 2.5% to $1.15 despite there being no news out of the investigative analytics and intelligence software provider. Though, given that the Nuix share price is up over 80% year to date, it's possible that some investors are taking profit and switching into other areas of the market today.

Red 5 Limited (ASX: RED)

The Red 5 share price is down almost 3% to 17.5 cents. This is despite there being no news out of the gold miner today. However, with its shares surging higher last week following a strong production update, it looks like some investors could be taking a bit of profit off the table on Tuesday.

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake share price is down 2.5% to $1.24. Once again, this may have been driven by profit taking after some strong gains by the gold miner's shares in recent weeks. In addition, with investor sentiment improving, there may be some investors moving out of safe haven assets like gold shares and back into risk assets.

WAM Research Limited (ASX: WAX)

The WAM Research share price is down 5% to $1.26. This has been driven largely by the investment company's shares going ex-dividend this morning for its latest dividend. Eligible shareholders can now look forward to receiving this fully franked 5 cents per share interim dividend later this month on 21 April.

The post Why Nuix, Red 5, Silver Lake, and WAM Research shares are dropping today appeared first on The Motley Fool Australia.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that invests in the most 'compelling undervalued growth opportunities' in the Australian market.

The WAM Research portfolio has delivered gross returns (that's before fees, expenses, and taxes) of 13.6% per annum since the strategy changed in July 2010, which is superior to the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8% per annum.

These are the two ASX shares that WAM outlined in its most recent monthly update.

Myer Holdings Ltd (ASX: MYR)

Myer is a department store retailer that has 58 locations across Australia, as well as an online presence.

The fund manager pointed out that last month Myer announced its FY22 result, which showed total sales growth of 12.5% to almost $3 billion. There was also a year-on-year increase of net profit after tax (NPAT) of 103.8% to $60.2 million, after excluding JobKeeper. Its net cash position improved by $74 million to $186 million.

WAM pointed out that the second half was the ASX share's best second half in almost a decade thanks to "strong multi-channel execution", with the online segment beating expectations. The investment team also highlighted that the company's FY23 started strong.

The fund manager is "positive" on the outlook because "management continue to execute on their vision and deliver the turnaround".

APM Human Services International Ltd (ASX: APM)

The other business that was named as an opportunity in the WAM Research portfolio was this international human services provider, which has more than 1,000 locations across Australia, New Zealand, the UK, Europe, North America, and Asia.

Last month, APM announced the strategic acquisition of Equus Workforce Solutions, an employment services provider in the US. WAM explained this will allow the ASX share to "materially expand its existing footprint in the North American market".

The cash consideration for this acquisition is $225 million. In FY22, this business generated $47 million of earnings before interest, tax, depreciation and amortisation (EBITDA) which implies it would add low double-digits to APM's earnings.

WAM said:

The US is an attractive market for APM with funding increasing across most major government programs and the acquisition accelerating growth opportunities.

The post 2 undervalued ASX shares that are growth opportunities: fund manager 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 dropping into the red:

Cronos Australia Ltd (ASX: CAU)

The Cronos Australia share price is down 5% to 68.5 cents. This is despite there being no news out of the medicinal cannabis company. However, it is worth noting that even after today's decline, the Cronos Australia share price is up 25% since this time last month. This could mean that profit taking is weighing on its shares today.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down over 1% to 83 cents. This also appears to have been driven by profit taking from investors following a strong showing on Monday. The biotech company's shares jumped yesterday following the release of a promising update.

Sims Ltd (ASX: SGM)

The Sims share price is down over 1% to $13.05. This has been driven by the scrap metal company's shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving Sims' partially franked 50 cents per share dividend later this month on 19 October.

WAM Research Limited (ASX: WAX)

The WAM Research share price is down 6% to $1.34. This has also been driven largely by the fund manager's shares going ex-dividend this morning. WAM Research will be paying eligible shareholders a fully franked 5 cents per share dividend in a couple of weeks. That payment is scheduled to hit bank accounts on 17 October.

The post Why Cronos Australia, Mesoblast, Sims, and WAM Research are dropping appeared first on The Motley Fool Australia.

WAM runs a number of different listed investment companies (LICs) including WAM Capital Limited (ASX: WAM), WAM Active Limited (ASX: WAA), and WAM Research Limited (ASX: WAX).

The fund manager likes to look for compelling, undervalued growth opportunities on the ASX share market. The below companies are two investment ideas that WAM recently highlighted.

IPH Ltd (ASX: IPH)

WAM described IPH as Asia Pacific's leading intellectual property (IP) services group with a network of member firms and clients in more than 25 countries.

Last month, IPH announced that it was buying Canadian IP agency Smart & Biggar for a total of $387 million.

The fund manager noted the acquisition will extend IPH's international secondary markets network beyond the Asia Pacific region for the first time and lift IPH "towards being a global leading IP services group".

IPH expects that the transaction will result in adding to underlying earnings per share (EPS) of approximately 10% in the first year of ownership and deliver access to more growth opportunities.

August was also reporting season. Last month, the company announced its full-year result, revealing a 14% year-over-year increase of underlying net profit after tax (NPAT) to $86.7 million as well as an 11% rise in underlying earnings before interest, tax, depreciation and amortisation (EBITDA).

Here is what WAM had to say about the company:

We remain positive on IPH and believe the business has a strong runway for organic and acquisition-led growth over the medium term.

Capitol Health Ltd (ASX: CAJ)

Capitol Health is described by the fund manager as a diagnostic imaging provider to the Australian healthcare market.

Last month, the ASX share announced the full-year result for its 2022 financial year which was better than the market was expecting. It also included the acquisition of Future Medical Imaging Group, a diagnostic imaging services provider, for a total cost of $56.1 million.

WAM pointed out the acquisition is expected to add to EPS in the high single digits. The fund manager said:

With a strong balance sheet and continued investment in well-defined growth opportunities, we believe the outlook for Capitol Health remains strong as diagnostic imaging providers recover from the coronavirus pandemic.

The post 2 little-known ASX shares that this fund manager says have 'strong' outlooks appeared first on The Motley Fool Australia.

WAM operates a few different listed investment companies (LICs).

One of the LICs is called WAM Research, which looks at the smaller businesses on the ASX where there may be more hidden gems.

WAM describes WAM Research as an LIC that "invests in the most compelling undervalued growth opportunities in the Australian market".

The WAM Research portfolio has delivered gross returns (that's before fees, expenses, and taxes) of 15.1% per annum since its investment strategy changed in July 2010. This compares to the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 9.4% per annum.

These are the two undervalued ASX shares that WAM outlined in its most recent monthly update for WAM Research.

GUD Holdings Limited (ASX: GUD)

WAM describes GUD Holdings as a business that owns a portfolio of companies in the automotive aftermarket and water products sectors. The main two countries where it operates are Australia and New Zealand.

The fund manager noted that in a recent trading update, the ASX share said that its revenue had "rebounded strongly" in March as the disruptions caused in January 2022 by the Omicron variant of COVID-19 slowed.

GUD Holdings pointed to the historically high levels of dealer sales backlogs, which are expected to support revenue growth over the short term. Sales of new vehicles are expected to return to pre-COVID levels in the medium-term.

The ASX share said that it expects inflationary pressures in freight, supply, and material costs. GUD reaffirmed its previous guidance for FY22 for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $155 million to $160 million.

WAM says that its outlook for GUD Holdings remains strong and the fund manager is confident that the company will deliver on its FY22 guidance.

Viva Energy Group Ltd (ASX: VEA)

The fund manager describes Viva Energy as one of Australia's leading energy companies that supplies approximately 25% of the country's liquid fuel requirements.

Viva Energy owns and operates the Geelong Refinery in Victoria and operates bulk fuels, aviation, bitumen, marine, chemicals, and lubricants businesses.

In April, Viva Energy gave the market an update for the quarter for the three months to 31 March 2022. This update showed a 9% increase in total group volumes over the prior comparative period, driven by "strong" diesel sales.

WAM also noted that aviation sales volumes also increased 3% year on year, with 16% growth compared to the three months to 31 December 2021. This growth occurred after improved domestic aviation demand from leisure travel.

The fund manager said that as oil demand recovers globally, it continues to see upside for Viva Energy and expects refining margins to grow and beat earnings expectations.

Other investments

These aren't the only two names in the portfolio. At the end of April 2022, WAM Research also owned names like Lovisa Holdings Ltd (ASX: LOV), Treasury Wine Estates Ltd (ASX: TWE), and Brickworks Limited (ASX: BKW).

The post This top fund manager thinks these 2 ASX shares are buys appeared first on The Motley Fool Australia.

But if what the RBA had to say on Tuesday proves prescient, it may not be the last interest rate rise we see in 2022. In fact, we are almost certainly going to see another hike soon, seeing as the RBA governor said, "the Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time. This will require a further lift in interest rates over the period ahead".

Previously, the RBA has said that it sees interest rates at the "neutral" level of 2.5% in the future. So if that came to pass, could dividend shares still offer attractive yields?

If interest rates were to move to 2.5%, you could expect many 'safe' investments like savings accounts and term deposits to offer similar, if not slightly higher, rates of interest. That would be a big change from the present lay of the land, where it is still difficult to find a savings account with an interest rate above 1%.

So if rates did rise to 2.5%, would it still be worth chasing yield from ASX dividend shares?

3 ASX dividend shares that beat the piggybank

Well, here are three such shares that would still be the piggybank if rates did climb to 2.5%.

Coles Group Ltd (ASX: COL) is one such share. Coles has been ratcheting up its annual dividend for a few years now. 2019 saw this grocery giant fork out 35.5 cents per share in dividends. But last year had the company dole out 61 cents per share, fully franked of course. On current pricing, this gives Coles a trailing dividend yield of 3.31%. With the full franking, that grosses up to 4.73%.

WAM Research Ltd (ASX: WAX) is another share that has a good chance of being a piggybank-beater in the years ahead. This Listed Investment Company (LIC) has been increasing its annual dividend for more than 10 years now. Last year saw WAM Research pay out 9.9 cents per share, a pleasing rise from 2011's 6 cents per share. On current pricing, that gives this LIC a dividend yield of 6.12%, or 8.74% grossed up with the company's full franking.

Finally, there's Telstra Corporation Ltd (ASX: TLS) to consider as well. Telstra has had a reputation as a strong dividend payer for years. The telco has kept its 16 cents per share annual dividend payment steady for a while now. Even so, this gives Telstra shares a yield of 4% as it currently stands. Telstra also typically does out full franking credits with its dividends, so that payment grosses up to a current yield of 5.71%.

The post Could these 3 ASX dividend shares still beat the piggybank if rates hit 2.5%? appeared first on The Motley Fool Australia.

WAM operates a few different listed investment companies (LICs).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as an LIC that "invests in the most compelling undervalued growth opportunities in the Australian market".

The WAM Research portfolio has delivered gross returns (that's before fees, expenses, and taxes) of 15.3% per annum since the investment strategy changed in July 2010. This has been better than the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 9.6% per annum.

These are the two undervalued ASX shares that WAM outlined in its most recent monthly update for WAM Research.

Brickworks Limited (ASX: BKW)

WAM explained that Brickworks manufactures a diverse range of building products across Australia and North America. It has 2,500 staff around the world.

The fund manager noted that in March, Brickworks announced a record half-year statutory net profit after tax (NPAT) of $581 million. This represented a 720% increase from the previous corresponding period, which beat market expectations.

The ASX share's building material manufacturing division in Australia delivered a significant increase in earnings before interest and tax (EBIT) in the first half of FY22. It rose by 66% to $27 million. WAM said that sales momentum increased after COVID-19 lockdowns.

Wilson Asset Management believes the joint venture industrial property trust between Brickworks and Goodman Group (ASX: GMG) continues to be undervalued by the market "despite its sustained growth which has been fuelled by the accelerated industry trend towards e-commerce."

The fund manager is positive on Brickworks, with expectations that further sales of land into the property trust will lead to a significant uplift in rental income, which "will continue to support double-digit earnings growth in this division".

Johns Lyng Group Ltd (ASX: JLG)

The other ASX share that WAM named was the integrated building services business Johns Lyng, which has operations in Australia and the US. Its main businesses are based on rebuilding and restoring a variety of properties and contents after damage.

Last month, the business announced that it had been chosen to lead the New South Wales Government's $142 million recovery response to the February and March flood events across the Eastern seaboard.

WAM believes this contract win will provide a tailwind of future earnings growth in Australia for the company, which has already been underpinned by a better-than-expected FY22 interim result.

The fund manager is still positive on Johns Lyng as it continues to grow with acquisitions that add to earnings in both Australia and the US.

The post Top fund manager reveals 2 undervalued ASX shares to buy appeared first on The Motley Fool Australia.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

One of the LICs is called WAM Research, which looks at smaller businesses on the ASX.

WAM describes WAM Research as a LIC that "invests in the most compelling undervalued growth opportunities in the Australian market".

The WAM Research portfolio has delivered gross returns (that's before fees, expenses, and taxes) of 15.3% per annum since the investment strategy changed in July 2010, which is superior to the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 9% per annum.

These are the two compelling ASX shares that WAM outlined in its most recent monthly update for WAM Research.

Accent Group Ltd (ASX: AX1)

The fund manager described Accent Group as an Australian-based company that operates more than 700 stores, over 20 online platforms with 19 brands including Platypus, Vans, and Skechers, that are focused on the footwear sector.

WAM pointed out the company recently announced its FY22 half-year result that included earnings before interest and tax (EBIT) of $30.3 million which was in line with market expectations.

The fund manager noted that Accent Group highlighted in its result that trading in January and February 2022 was severely impacted by COVID-19-related disruptions in Australia and New Zealand, with deliveries from some external suppliers delayed.

Why is WAM particularly bullish on Accent? The fund manager said it believes Accent Group's trading will improve and the relaxation of restrictions should contribute to increased foot traffic across its store footprint.

Ardent Leisure Group Ltd (ASX: ALG)

Ardent Leisure is the other ASX share named in the WAM Research portfolio.

This company operates in Australia in the US. It may be best known for its theme parks, including Dreamworld and WhiteWater World.

Ardent Leisure was one of the better performers for the WAM Research portfolio last month after beating expectations in its half-year report with its "key" US business called Main Event Entertainment. What does Main Event do? It operates 45 bowling centres in 16 US states.

WAM noted that Main Event Entertainment continued to outperform 'constant centre revenue' expectations with growth of 20% in the financial year to date compared to pre-COVID levels in FY20.

The Ardent Leisure share price jumped 18% after investors got a look at the result.

The ASX share reported that its EBIT jumped 98.9% to a loss of $0.5 million. The net loss after tax improved 55.3% to $36.8 million.

WAM said Main Event Entertainment's growth pipeline remains "robust" with plans for three new centres to open in the second half of FY22.

The fund manager believes that as domestic and international border restrictions ease, momentum will return to the entertainment sector. It sees a strong outlook for both Main Event Entertainment and Dreamworld.

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