The Commonwealth bank of Australia (ASX: CBA) share price has headed lower in the past couple of weeks, as the chart below shows. This is a good time to look at whether the ASX bank share is primed to deliver good returns for investors.

CBA recently released its FY26 results, and investors got a good look at the numbers. It wasn’t enough to support the CBA share price, and the drop in home loan applications could be challenging for earnings growth in the 2027 financial year.

But at this lower valuation, experts may feel more confident about the potential for capital growth from here. Let’s take a look at what a $15,000 investment in CBA shares could do, which could currently buy 90 CBA shares at the time of writing (with $150 change left over).

CBA share price projection

A share price target indicates where the analyst believes the share price could go over the next 12 months.

According to CMC Invest, there have been eight ratings on ASX bank share in the last three months. All of them were sell ratings.

The average price target across those eight ratings was $122.33, according to CMC Invest, suggesting a possible 26% decline (at the time of writing) over the next 12 months. The most optimistic price target suggests a 12% decline to $144.99, while the most pessimistic implies a 45% decline to $90.

Of course, share price targets are not guaranteed future movements of the valuation, but it certainly doesn’t suggest a rosy outlook for the business.

Analysts aren’t disputing the quality of the ASX Bank share. But there is a widespread view that the CBA share price trades at a relatively high price/earnings (P/E) ratio compared to its peers, ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB).

Therefore, the CBA shares could become worth around $11,000, a drop of almost $4,000.

Commonwealth Bank dividend

The main positive for CBA shareholders is that the business could pay a slightly larger annual dividend per share in FY27.

According to the independent on Commsec, the ASX bank share could pay an annual dividend per share of $5.15 in FY27. At the time of writing, that translates into a dividend yield of 3.1%, excluding franking credits.

With 90 Commonwealth Bank shares, an investor could receive $463.50.

Potential shareholder return

Overall, those analyst projections imply the business could deliver a negative total shareholder return (TSR) of around 23%.

In other words, the starting $15,000 could decline in value to around $11,000 of CBA shares, $463 of dividend cash, and $150 of money not invested at the start.

At the current CBA share price, there seem to be better ideas out there.

The post By August 2027, CBA shares could turn $15,000 into… appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and edged lower. The benchmark index fell 0.2% to 9,053.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rise

It looks set to be a good session for Australian investors on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.3% higher this morning. In the United States, the Dow Jones rose 0.2%, the S&P 500 climbed 0.2% and the Nasdaq pushed 0.15% higher.

ASX 200 result releases

Earnings season is going into overdrive on Thursday with a very large number of ASX 200 shares due to release their results. This includes Goodman Group (ASX: GMG), Medibank Private Ltd (ASX: MPL), Megaport Ltd (ASX: MP1), Super Retail Group Ltd (ASX: SUL), and Zip Co Ltd (ASX: ZIP).

Oil prices rise

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.85% to US$85.65 a barrel and the Brent crude oil price is up 0.5% to US$91.49 a barrel. This was driven by an escalation in Middle East tensions.

Buy Evolution Mining shares

Evolution Mining Ltd (ASX: EVN) shares are in the buy zone according to analysts at Bell Potter. This morning, in response to the gold miner’s record results, the broker has retained its buy rating with an improved price target of $15.55. It said: “EVN offers fully unhedged gold and copper exposure via a portfolio of high quality, long-life assets in Tier 1 jurisdictions, overseen by a high-quality management team. EVN has demonstrated its intention to increase shareholder returns and gold price exposure.”

Gold price jumps

It could be a very positive session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price jumped overnight. According to CNBC, the gold futures price is up 3.6% to US$4,581.1 an ounce. This was driven by a heavy decline in US bond yields and the US dollar.

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

More reading

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• 3 ASX growth shares brokers say could beat the market
• Why this ASX 200 stock is a buy after posting record results
• 3 ASX 200 shares I’d buy for the next decade
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Goodman Group, Megaport, and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Megaport, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The goal for most of us is to save enough in our superannuation such that we can fund a relatively comfortable retirement.

Whether that occurs at age 60, when we can access our superannuation, or later depends on various factors, but the amount of superannuation is, of course, important.

This begs the question: how much do you need to fund your retirement?

Australian superannuation amounts coming up short

It’s instructive to look at the statistics on how much superannuation Australians currently have.

At the moment, for men aged 60-64 the average amount is $395,852, while for women the amount comes in at $313,360.

For those aged 65-69 the numbers come in at $448,518 and $392, 274, with all of these figures calculated by the Association of Superannuation Funds of Australia (ASFA).

Meanwhile, ASFA has calculated that to have a comfortable retirement, using superannuation and a part pension, and assuming you own your own home, couples will need $730,000 in super while singles will need $630,000.

How much passive income will superannuation generate?

Now let’s look at what those aged 60-64 could expect to earn from their superannuation in passive income.

If a retiree had $395,852 in superannuation and earned 10% on their investments (a lofty sum to assume on a yearly basis), they would earn $39,585. This is well below the $55,923 per year which ASFA says would afford a comfortable retirement.

If they earned just 5%, this figure would drop to $19,792.

What this tells us is that many people do not have enough in their superannuation to sole-fund their lifestyle.

So, what can you do to prepare if you think your superannuation needs a top-up?

Strategies to boost your superannuation balance

Extra contributions can be made to superannuation in the form of concessional and non-concessional contributions.

Concessional contributions are taxed at just 15% and include money contributed by your employer, salary sacrifice contributions, and extra contributions you make up to a cap of $32,500.

If funds permit, and your superannuation balance was less than $500,000 in the last financial year, you can also carry forward any unused concessional contribution cap amounts from the previous five financial years.

The amount you are able to contribute in this way can be found in your myGov account.

A notice of intent to claim must be lodged with your super fund for concessional contributions so they know to deduct the 15% tax from the amount.

It is also possible to make non-concessional contributions up to an amount of $130,000, and it is also possible to contribute more than this amount using the bring forward rule.  

The post Does the average superannuation balance at 60 generate enough passive income? appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• CSL shares surge 18% as ‘reset year’ points to a return to growth

Motley Fool contributor Cameron England 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.