Buy, hold, sell: Xero, South32, Woodside shares

S&P/ASX 200 Index (ASX: XJO) shares are down 2.2% over 12 months.

Last week, the benchmark index fell to a 15-week low amid expectations of an interest rate hike tomorrow.

Some experts say a fifth rate hike for 2026 may be required in November to sufficiently quell inflation.

Meanwhile, Michael Gable from Fairmont Equities reveals new ratings on three ASX 200 stocks (courtesy of The Bull). 

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 35% over 12 months. 

Gable has a buy rating on this ASX 200 energy share. 

He commented: 

We turned bullish on crude oil prior to the war in Iran due to a looming imbalance between supply and demand.

The war has interrupted supplies, which has led to higher prices. I believe crude oil prices are likely to move higher in the absence of a peaceful and sustained resolution in the Middle East.

I acknowledge some investors doubt crude oil prices will move higher. However, as the largest energy stock on the ASX, buying support should continue to grow for WDS.

South32 Ltd (ASX: S32)

The South32 share price has risen 86% over 12 months. 

Gable has a hold rating on this ASX 200 mining share. 

He explained: 

South32 is a diversified miner with exposure to copper, aluminium, manganese, zinc, silver and lead. The company should benefit as base metal prices continue to trend higher.

The outlook also appears bullish, with the stock recently breaking to new highs.

The company has announced the sale of its aluminium value chain assets to Alcoa for up to $US5.6 billion. This leaves the possibility of a higher capital return to shareholders.

Underlying EBITDA grew by 28 per cent in full year 2026 when compared to the prior corresponding period.

Xero Ltd (ASX: XRO)

The Xero share price has tumbled 64% over 12 months. 

Gable has a sell rating on this ASX 200 tech share. 

He said: 

In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent.

The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

The post Buy, hold, sell: Xero, South32, Woodside shares appeared first on The Motley Fool Australia.

Motley Fool contributor Bronwyn Allen 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.

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