Commonwealth Bank of Australia (ASX: CBA) shares are back in the green on Wednesday after the banking giant announced a deal to settle a long-running class action.

At the time of writing, the CBA share price is up 0.92% to $158.47.

It has been a much tougher month for shareholders, with the stock down around 8% over that period. CBA shares are also roughly flat since the start of 2026 and remain around 15% below their 52-week high of $185.59.

Still, investors appear comfortable with today’s announcement, with shares moving higher in morning trade.

Let’s take a closer look at the release.

CBA reaches $249 million settlement

CBA said this morning that it has reached an in-principle agreement to settle a class action involving the bank, Colonial First State Investments and Avanteos Investments.

The proposed settlement is worth $249 million and still needs to be finalised and approved by the Federal Court of Australia.

The proceedings were launched in 2018 by Slater and Gordon on behalf of class members.

They relate to certain cash and deposit options issued by CBA and offered through Colonial First State superannuation and wrap products between November 2008 and September 2021.

However, CBA, Colonial First State Investments and Avanteos Investments deny the allegations and have made no admission of liability or wrongdoing.

If the court approves the deal, eligible class members could receive a share of the settlement after legal fees and other costs are deducted.

Why are CBA shares higher?

A $249 million settlement does sound sizeable, but there’s a key detail in the above announcement.

CBA said the proposed settlement is already covered by a provision recognised in an earlier period. 

That means investors aren’t looking at a new $249 million hit to current earnings, which likely helps explain why the share price has moved higher today.

The announcement also comes shortly after CBA reported another strong full-year result.

Cash net profit after tax rose 7% to $10.98 billion in FY26, while statutory profit increased 8% to $10.91 billion.

The bank also lifted its final dividend to $2.70 per share, taking the fully-franked full-year payout to $5.05 per share.

What next for CBA shares?

Today’s rise is welcome for shareholders, but CBA shares still have ground to recover after falling around 8% this month.

The bank is also trading much closer to its 52-week low of $146.98 than the record levels it reached earlier this year.

Even after that pullback, CBA shares are not exactly cheap, trading on a P/E ratio of around 24. That still leaves the bank at a fairly high valuation compared with the other major banks.

The focus now is on whether CBA shares can keep moving higher after a difficult few weeks.

The post CBA shares bounce after settling long-running class action appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

ASX retail stock Lovisa Holdings Ltd (ASX: LOV) is rocketing 19% to $29.22 on Wednesday morning, taking its monthly gain to 35%.

Despite the surge, the jewellery retailer remains 22% lower over the past 12 months, while the S&P/ASX 200 Index (ASX: XJO) has gained around 2%.

So, what’s driving today’s dramatic rebound?

Lovisa delivers another strong year

Investors are responding to a solid full-year result, with Lovisa delivering growth across its key financial metrics. Total revenue increased 17.6% to $938.8 million, while comparable-store sales rose 2.0%.

The ASX retail stock also lifted earnings before interest and tax (EBIT) by 14.1% to $158.2 million. Net profit after tax climbed 10.7% to $95.6 million.

Lovisa generated $294.5 million in operating cash flow, up 21.0%, demonstrating the company’s ability to fund its expansion while continuing to generate substantial cash.

Shareholders also received a boost, with the full-year dividend increasing 11.7% to 86 cents per share.

Global expansion remains a key growth driver

Lovisa continued its aggressive international expansion during the year, opening 160 new stores and finishing with 1,136 stores across more than 50 markets. Europe was the standout region for store growth, with 76 new locations added, including 34 in the UK and 20 in Germany.

However, management isn’t simply opening stores for the sake of growth. Lovisa closed 43 underperforming locations and relocated another 12, highlighting its focus on improving store profitability and optimising its global network.

The ASX retail stock also continued investing in technology, its supply chain, and global retail operations. Importantly, Lovisa said these investments were fully funded by existing cash flows.

What did Lovisa management say?

Lovisa Global Chief Executive Officer John Cheston said:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance.

What’s next for Lovisa shares?

The early signs from FY27 are encouraging. Lovisa reported total sales growth of 16.4% on a constant-currency basis during the first eight weeks, while comparable-store sales increased 3.0%.

The retailer plans to continue expanding its physical and digital presence, supported by its strong balance sheet and steady cash generation.

After a 22% decline over the past year, today’s 19% rally of the ASX retail stock suggests investors are reassessing Lovisa’s growth prospects.

Whether the recovery can continue, however, will depend on the company maintaining strong comparable-store growth while successfully scaling its rapidly expanding international footprint.

The post Why is this $3 billion ASX retail stock rocketing 19% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares have crashed into the red in Wednesday morning trade.

At the time of writing, the shares are down around 8.5% to $41.73 per share.

This means the shares are now down 39% for the year to date and are now 64% lower than trading levels seen this time last year.

Today’s decline follows the company’s FY26 results announcement, which it posted to the ASX ahead of the market open this morning.

It looks like the announcement spooked investors, with many rushing for the exit this morning.

What did WiseTech report this morning?

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

But WiseTech’s EBITDA beat the average analyst forecast of $599.9 million on an underlying basis. WiseTech reported a 56% jump in underlying EBITDA to $644.5 million at a 42% margin.

The company’s total revenue increased by 79% compared to the prior year, and its underlying NPAT increased by 29% due to organic growth from its e2open acquisition.

WiseTech said its cost-saving programs also delivered around US$115 million in annualised savings, including efficiencies from adopting AI in operations.

The company also raised its final dividend to 88 US cents per share, up from 77 US cents per share.

Looking ahead, WiseTech is guiding total revenue growth between 6% and 10% (US$1.48 billion to US$1.54 billion) for FY27, and underlying EBITDA growth between 12% and 21%, with a margin uplift to 49% to 51%. 

Where to now for WiseTech shares?

At the time of writing, the outlook for WiseTech shares is unchanged, although I expect some market experts could revise their outlook in the coming days following today’s results.

At the time of writing, brokers and analysts are still very bullish on where we’ll see the share price travel from here.

Market Index shows that the majority of brokers (three out of four) are very bullish on the ASX tech stock and hold a strong buy rating. The average $54.71 target price implies a potential 27% upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Of 12 analysts, 10 have a buy/strong buy rating, and the other two rate the shares as a hold.

The $60.63 average target price implies a potential 46% upside over the next 12 months, at the time of writing.

The post Why are WiseTech shares crashing 8.5% today? appeared first on The Motley Fool Australia.

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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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.