Coles Group Ltd (ASX: COL) is one of those ASX shares that can be easy to overlook because the underlying business is so familiar.

Australians keep turning up for groceries each week, while Coles has spent years investing in how those groceries are moved, picked, and delivered.

With the shares trading around $23.17 on Thursday, does the current price still offer good value?

The shares carry a premium

According to CommSec, consensus earnings per share estimates stand at 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

At the current share price, that puts Coles on a PE ratio of roughly 26 times forecast FY26 earnings.

I would certainly describe that as a premium valuation for a supermarket operator.

But I think looking only at the FY26 multiple misses an important part of the story.

Analysts are expecting earnings per share to increase by around 7% in FY27 before accelerating further in FY28. By then, forecast earnings would be almost 25% higher than in FY26.

If Coles delivers that growth, today’s valuation begins to look considerably more reasonable.

Using consensus estimates, its PE ratio would fall to 24 times in FY27 and around 21 times in FY28.

Where could that growth come from?

One reason I am comfortable with the forecasts is that Coles has already spent heavily on improving its operations.

Its automated distribution centres are designed to make replenishing stores more efficient, while its automated customer fulfilment centres are helping the company handle online grocery orders at greater scale.

These investments are now moving beyond the expensive implementation stage. Coles said at its half-year result that supermarket earnings benefited from the annualised contribution from its automated distribution centre program as well as the absence of major implementation and transition costs.

I think Coles is now in a better position to reap the benefits of that spending.

Coles does not need dramatic growth in grocery demand to increase earnings. Making an enormous existing business more efficient can have a meaningful impact when those improvements are spread across its store and supply chain network.

Online shopping provides another avenue. The investments Coles has made in fulfilment should allow it to serve more customers in the way they want to shop while improving the economics of that channel over time.

Dividends could grow as well

The consensus dividend forecasts are also moving in the right direction.

The market expects dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28.

At the current price, these payouts represent dividend yields of 3.2%, 3.5%, and 4.1%.

I like that progression because it gives shareholders another way to benefit if the expected earnings growth comes through.

One thing to keep in mind

Investors will not have to wait long for an important update.

Coles is scheduled to release its FY26 results on 25 August.

That result could change analyst forecasts and therefore the valuation calculations above. I would pay particular attention to what management says about the benefits from automation, costs, consumer behaviour, and the outlook for the year ahead.

Foolish takeaway

I think the Coles share price offers reasonable value at around $23.17.

The shares are clearly priced at a premium, but I believe the expected earnings growth helps justify it. If earnings per share reach around $1.12 in FY28, the multiple investors are paying today comes down significantly without requiring the share price to do anything.

With a major result only days away, there could be some short-term movement ahead. But for investors looking several years into the future, I think Coles remains a share worth buying.

The post Is the Coles share price good value? appeared first on The Motley Fool Australia.

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

The ASX reporting season continued in full swing on Thursday, with many more businesses posting their FY26 results. Among some of the biggest names are Zip Co Ltd (ASX: ZIP), APA Group Ltd (ASX: APA) and Dexus (ASX: DXS).

Let’s recap how the shares are tracking today and whether brokers rate them a buy, sell or hold.

Buy Zip shares

Zip posted a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.

The company expects its cash EBTDA to climb even higher in FY27, by around 26% thanks to strong growth and greater scale across the business.

The announcement has been well received by investors who are rushing to snap up the buy now, pay later (BNPL) provider’s shares this morning.

At the time of writing, Zip shares are up a huge 17% and changing hands for $3.02 a piece. Today’s increase means the shares are now just 10% lower for the year-to-date and are just 0.5% below trading levels seen this time last year.

Experts are incredibly bullish about the outlook for Zip shares too. 

TradingView data shows all 13 analysts have a buy/strong buy rating on the shares. The average $4.19 target price implies a 40% upside ahead, at the time of writing. Although some are confident that Zip shares can climb another 88% to $5.59 within the next 12 months.

Hold APA shares

APA reported an 8.3% increase in underlying EBITDA as part of its FY26 results this morning, surpassing guidance. 

The company also announced a 3.2% increase in its free cash flow and 1.9% uplift in statutory revenue (excluding pass-through), and a 81.4% jump in statutory net profit.

APA is also guiding a higher underlying EBITDA of between $2,260 million and $2,340 million for FY27.

The news seems to have sat well with investors, but there isn’t a significant shift in the share price at the time of writing. APA shares are up around 1% for the day so far, and trading at $10.18 a piece. The shares are now around 13% higher for the year-to-date and 16% higher than a year ago.

It looks like the shares could now be around fair value, however. 

TradingView data shows sentiment is split between a hold and sell rating on APA shares. The average $9.45 target price implies a potential 7% downside at the time of writing.

Buy Dexus shares

Dexus reported adjusted funds from operations (AFFO) of $483.9 million and distributions of 37.0 cents per security, both matching previous guidance, as part of its FY26 results this morning.

Statutory net profit after tax was $482.2 million, and gearing remained at the lower end of the group’s target range.

For FY27, Dexus expects reduced earnings due to lower performance fees, an immaterial contribution from trading profits, and a smaller contribution from funds under review.

It looks like investors are disappointed with the results. At the time of writing, Dexus shares are down around 2.5% and changing hands for $5.66 a piece.

The shares are now down 19% for the year-to-date and are 24% lower than this time last year.

At the time of writing, the experts are still bullish that we could see a rebound from Dexus shares this year. But it’s possible that some may revisit their positions over the coming days following the company’s results announcement.

TradingView data shows that the majority currently have a buy/strong buy stance on Dexus shares. The average $6.55 target price implies a potential 15% upside at the time of writing.

The post Buy, sell, hold: Dexus, APA, Zip shares appeared first on The Motley Fool Australia.

More reading

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• Dexus delivers steady FY26 results, maintains distributions, and advances strategy
• Zip Co reports record FY26 earnings and outlines growth strategy
• APA Group FY26 delivers strong earnings, pipeline expansion, and 22nd annual dividend increase
• 5 things to watch on the ASX 200 on Thursday

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

Stockland Corporation Ltd (ASX: SGP) shares are climbing higher into the green on Thursday.

At the time of writing, the shares are up around 2% and changing hands at $4.64 a piece. 

Today’s increase means the shares have now risen over 14% since the company posted its FY26 results ahead of the ASX open on Wednesday morning.

The property group reported a statutory profit up 20.2% to $994 million for FY26, and a 10.4% increase in post-tax Funds From Operations (FFO) to $892 million, hitting the top end of its guidance range.

Stockland announced a full-year dividend distribution steady at 25.2 cents per security, at a payout ratio of 69%. For FY27, the company expects to maintain the same 25.2 cents per security, dividend payment.  

Investors are clearly thrilled with the result and many rushed to buy the shares following the announcement yesterday. The rally has continued this morning, with many more buying into the stock, sending the share price higher again.

There is still a long way to go before Stockland shares can recoup the losses it shed in late-2025 and early-2026, but its certainly a step in the right direction.

Stockland shares are now down around 19% for the year-to-date and 24% lower than 12 months ago.

The question now is, can the shares keep climbing higher. Or has the property group’s shares now reached fair value?

Here’s what the experts think.

Analysts forecasts for Stockland shares over the next 12 months

If analysts’ predictions are anything to go buy, it looks like Stockland shares could be approaching fair value.

Market Index data shows that brokers are split between a buy and hold rating on the shares. But the $4.69 average target price implies a potential 1% upside at the time of writing.

Sentiment is a little more positive according to TradingView data. The majority (seven out of 10) have a buy/strong buy rating on Stockland shares, and another two rate the stock a hold. There is one sell rating.

The average 5.10 target price implies a potential 10% upside at the time of writing. But some are even more bullish and forecast the shares to climb another 26% to $5.80 over the next 12 months.

Ahead of the results announcement, the team at Shaw and Partners confirmed their hold rating on the ASX 200 property shares. They said the business is well positioned to benefit from Australia’s long term population growth and housing supply constraints, while its development pipeline supports future earnings growth.

The broker added that higher interest rates have created some short term headwinds across the property sector. However, Stockland’s robust balance sheet and quality asset portfolio provide resilience.

The post Are Stockland shares a buy after its FY26 results announcement? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Rate rises have finally caught house prices. What does that means for ASX property shares?
• Stockland profit up 20% as development surges: FY26 results and outlook
• Buy, hold, sell: Newmont, Stockland, NAB shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies 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.