The Universal Store Holdings Ltd (ASX: UNI) share price has seen plenty of volatility over the past year, as the chart below shows. I think it has already demonstrated it’s one of Australia’s top retail shares, and it still has significant growth potential.

Universal Store is not one of the most famous retailers on the ASX, but it’s quickly growing into an impressive force in the space.

It owns a portfolio of premium youth fashion brands, including Universal Store and Perfect Stranger and CTC (trading under THRILLS and Worship). The company operates 121 physical stores across Australia.

There are a few reasons why it looks like one of Australia’s top shares to consider for the next few years.

Solid revenue growth with great outlook

The last few years have been a tough retail environment for many operators, but Universal Store has managed to deliver strong top-line growth over the past five years.

FY26 looks like another year of strong growth for the business, particularly for its two core brands.

Its latest trading update showed group retail sales in the first 43 weeks of FY26 grew 14%, with Universal Store sales growth of 11.8% and Perfect Stranger sales growth of 39.8%. Universal Store’s like-for-like sales growth was 8.5%, and Perfect Stranger’s LFL sales growth was 12.9%.

The LFL sales growth shows the existing store network is performing strongly, while new stores are also adding significant growth for the brands. For example, Perfect Stranger currently has a store network of 26 locations and has opened seven new stores in FY26.

To be counted as one of Australia’s top shares, I think a business needs to demonstrate solid revenue growth. It ticks this box.

Rising profit margins

The business has a strong track record of growing profit margins, meaning its bottom line is rising faster than the top line. Net profit growth is essential because it’s what investors usually value a business on, and profit generation funds dividends.

For example, in the FY26 half-year results, group sales grew 14.2%, the gross profit margin increased by 150 basis points (1.50%) to 62.1%, and the underlying net profit grew by 22%.

Profit margins are expected to rise again in FY26, according to the company’s guidance. Based on the midpoint of its guidance, FY26 sales are projected to rise 11.5%, and underlying operating profit (EBITA) could grow by 15.4%.

I think rising profit margins are a key factor that helps an ASX share deliver strong shareholder returns.

Compelling shareholder metrics

The investor metrics the company trades at remain very attractive, in my opinion.

According to the projections on CMC Invest, the Universal Store is trading at less than 15x FY26’s estimated earnings, with a potential grossed-up dividend yield of 7.8%, including franking credits.

In my view, the business is undervalued and it could be a very good buy after dropping 18% since March 2026, making it one of Australia’s top shares.

The post A rare buying opportunity in 1 of Australia’s top shares? 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 recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Westpac Banking Corp (ASX: WBC) shares has been a typical ASX blue-chip share pick for investors seeking passive income.

The ASX bank share typically trades on a relatively low price/earnings (P/E) ratio valuation and has a fairly generous dividend payout ratio.

Westpac has a lot of competition in the banking space. There are numerous ASX-listed competitors, and plenty more not listed on the ASX. Some of the largest ASX-listed banking competitors are Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), MyState Ltd (ASX: MYS), Bendigo and Adelaide Bank Ltd (ASX: BEN) and Pepper Money Ltd (ASX: PPM).

Even though there is all of that competition, the bank still makes billions of net profit each year, which helps fund the company’s solid dividend.

For an investor who wants $10,000 of annual passive income, let’s take a look at what level of passive income Westpac is projected to pay in FY26.

ASX bank share dividend forecast

Westpac’s financial year ends in September, so we have just passed the three-quarters mark of the 2026 financial year. It will be a few months until the annual report is revealed and show what the profit figures are.

Until we know for sure what the numbers are, we can refer to what analysts have forecast the ASX bank share may be able to deliver.

According to the projection on Commsec, the ASX bank share could pay an annual dividend per Westpac share of $1.54 in FY26.

At the time of writing, that translates into a dividend yield of 4.3%, excluding franking credits.

That means, to generate $10,000 of annual passive income from Westpac in FY26, an investor would need 6,494 Westpac shares to receive that much in dividends.

Excitingly for shareholders, the bank is projected to see a 0.6% rise in its dividend per share to $1.55 in FY27.

If we focus on the forecast amount, an investor would only need 6,452 Westpac shares for $10,000 of annual passive income, excluding franking credits.

Is this a good time to invest in Westpac shares?

There are a lot of competitors that want to take market share from Westpac. It’s normal to see margins under pressure when there are challengers wanting to grow, such as Macquarie. It’s possible that Westpac’s margins could decrease in the coming years, as well as its market share, given how rapidly Macquarie is growing.

According to Commsec’s collation of analyst opinions on the business, there are currently no buy ratings, seven hold ratings and nine sell ratings.

It seems analysts are pessimistic about the ASX bank share’s future prospects right now, but I think there are opportunities out there today that could grow earnings over the the long-term.

The post How many Westpac shares do I need to buy for $10,000 of passive income? 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

History is on the side of ASX shares right now.

July ranks as the second-best month for ASX shares, rising approximately 72% of the time since 1980. Both July and August historically form the strongest two-month period of the entire calendar year.

The first week of FY27 has already reflected that pattern.

ASX shares are marginally up as gold stocks surged and new financial year institutional flows rotated into beaten-down FY26 laggards. Healthcare, discretionary, and materials all led the charge.

The question for investors is whether that momentum can continue, and which specific stocks are best positioned to carry it.

Why July tends to deliver for ASX shares

The July seasonality effect has a few drivers.

Tax-loss selling in May and June pushes weaker stocks lower ahead of the financial year-end, as investors crystallise capital losses to offset gains made elsewhere.

Once the new financial year begins, that selling pressure on ASX shares evaporates and often reverses, as institutional investors rebalance their portfolios and rotate into undervalued names.

AMP chief economist Dr Shane Oliver has confirmed that the typical pattern is for ASX shares to strengthen from October through to July, followed by weakness through September.

That seasonal pattern has been borne out in the first week of FY27. Healthcare and materials are already rebounding sharply from their FY26 lows.

BHP: the materials recovery story

BHP Group Ltd (ASX: BHP) was one of the ASX’s great FY26 performers, skyrocketing 62% to close FY26 at $59.40 and hitting a record high of $65.98 in June.

Morgan Stanley renewed its buy rating on BHP this week with a 12-month price target of $67.50, implying more than 10% upside from current levels into FY27.

The copper supercycle thesis that drove BHP’s FY26 outperformance has not changed heading into FY27.

AI data centre construction, electric vehicle adoption, and grid infrastructure investment continue to drive copper demand at a pace that supply cannot easily match.

CSL: the FY26 dog becoming FY27’s darling

CSL Ltd (ASX: CSL) was one of FY26’s most painful stories, falling 52% to finish the year at $114.74.

However, the first weeks of July have been more positive.

CSL has rallied more than 30% off its 3 June low. The stock has recovered the entirety of its May selloff in this reversal.

The buying looks increasingly like institutional reallocation at the start of FY27, with investors rotating into so-called FY26 “dog” names in the expectation they become FY27’s darlings.

CSL’s FY26 full-year result, due 19 August 2026, will be the real test of whether the recovery has genuine earnings support or is purely sentiment-driven.

Morgans retains a buy rating with a price target of $147.59, implying significant further upside even after the recent bounce.

Goodman Group: the AI infrastructure compounder

Goodman Group (ASX: GMG) offers a different angle on the July thesis.

While BHP captures the materials recovery and CSL captures the healthcare rotation, Goodman captures the structural, multi-year AI infrastructure buildout.

Data centres now make up 73% of Goodman’s development pipeline. This development pipeline is on track to reach $18 billion by June 2026, with a 6.4 gigawatt global power bank that competitors cannot easily replicate.

Both Morgans and UBS carry price targets around $36, implying meaningful upside from current levels.

The risk: seasonality is a guide, not a guarantee

AMP’s Dr Shane Oliver has cautioned that seasonal patterns can be overwhelmed by contrary fundamental forces when they are strong enough.

The RBA’s signalling of further rate hikes remains a potential headwind for rate-sensitive names including Goodman.

CSL’s recovery depends on the August result delivering earnings support, not just sentiment reversal.

And BHP’s copper thesis could be tested if Chinese industrial demand data disappoints through the month.

Foolish takeaway for ASX shares

July is historically the ASX’s second-best month, rising 72% of the time since 1980.

The first week of FY27 has already reflected that seasonal pattern, with healthcare, materials, and discretionary all surging.

BHP, CSL, and Goodman each offer a different and complementary way to participate in what the seasonal data, the early FY27 evidence, suggests could be a strong month for Australian shares.

The post July is historically one of the best months for ASX shares. Can July FY27 deliver? appeared first on The Motley Fool Australia.

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• How should I invest my money in FY27?

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