Owning ANZ Group Holdings Ltd (ASX: ANZ) shares usually means getting a good level of passive income. But can it deliver earnings growth? That could be essential for whether the ANZ share price rises or not in the next year or two.

The ASX bank share has been working hard to reduce its cost base, be more efficient, and deliver good performance with its market share.

ANZ has a lot of competition in the banking space, who all want market share, including Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and so on.

A lot of competition may be a headwind for the bank in terms of both growing market share and a strong net interest margin (NIM). But that hasn’t stopped ANZ from generating strong profit growth in the near term.

FY26

The 2026 financial year has finished for many companies, but for ANZ, it doesn’t finish until 30 September 2026.

The latest update we’ve heard from the bank was very promising for what the FY26 result could reveal.

In HY26, compared to the second half of FY25, ANZ reported in cash profit terms that operating income grew 3% and operating expenses fell 22%, leading to profit before provisions jumping 51%. It also noted that the (loan) provision charge reduced 7% and the cash profit soared 70%.

However, some of those numbers received a large boost due to ‘significant items’. Excluding significant items, operating income was flat, operating expenses dropped 9%, profit before provisions grew 12%, and cash profit rose 14%. Customer deposits increased by 3%, while net loans and advances fell by 1%.

I think any of Australia’s domestic banks (excluding Macquarie) would be delighted to report double-digit net profit growth.

The bank is forecast to grow its earnings per share (EPS) in FY26, according to the projection on CommSec. The EPS could reach $2.559 in the 2026 financial year, putting the ASX bank share’s valuation at around 14 times FY26’s estimated earnings.

FY27

I think it’s a great sign to see a business grow earnings, as that’s what justifies higher share prices and larger dividends.

The bank is forecast to deliver earnings growth in the 2027 financial year. However, the current projection is not very exciting.

According to the estimate on CommSec, the ASX bank share is projected to very slightly increase its EPS to $2.561 in FY27. In other words, profit is forecast to be virtually flat. That would mean it’s trading at 14 times FY27’s estimated earnings as well.

The CommSec collation of analyst opinions on the business revealed there are currently two sell ratings, eight hold ratings, and six buy ratings. The experts are more positive than negative, though there could be even better opportunities out there.

The post Here’s the earnings forecast out to 2027 for ANZ 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 positions in and has recommended Macquarie Group. 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.

Xero Ltd (ASX: XRO) shares have skipped further into the red in Tuesday morning trade.

At the time of writing, the shares are down around another 2% to $68.58 a piece. At one point this morning, the shares were changing hands as low as $68.48 each. 

This morning’s losses extend yesterday’s 4.3% decline. 

It’s been a long line of share price declines for the ASX tech company over the past year. Since spiking to an all-time high of $193.77 a piece in June 2025, the shares have shed a huge 64% of their value.

They’re now down around 38% for the year to date and 59% lower than this time a year ago.

What happened to Xero shares?

Xero shares have faced several major headwinds over the past 12 months. 

The continually falling share price is mostly the result of a sector-wide sell-off of technology stocks. This followed rising concerns that AI could disrupt traditional software models. 

In late 2025 and early 2026, many investors were spooked by the idea that smarter, cheaper tools could reduce the need for subscription platforms like Xero. Sentiment for tech shares, including Xero, quickly turned south. 

At the same time, a sharp increase in the value of some ASX tech shares in 2025, including Xero, also sparked concerns that tech companies were overvalued and overdue for a price correction. 

The good news is that despite the continued stock sell-off, there is still enormous potential for Xero and its shares over the next 12 months.

Xero benefits from an incredibly sticky subscription base and high customer retention rates, which means its revenue is relatively stable. 

As a relatively small market player, it also has a lot of growth potential. Xero is working to expand its presence in the UK and the US. It is also focused on expanding its product suite, including payroll and workflow automation offerings. 

What do brokers tip for the ASX tech stock next?

Market Index data shows that the majority of brokers are very bullish on Xero shares and have a buy rating on the stock. The average target price of $145.69 implies an impressive 112% upside at the time of writing.

TradingView data shows something very similar. The majority of analysts have a strong buy rating on Xero shares. They have a slightly lower $130.12 average target price, but that still implies a potential 85% upside ahead.

Some are even more optimistic and forecast the shares to rocket another 237% to a maximum target price of $237.38.

Last month, Morgans upgraded the stock from hold to add and assigned a $215 price target. The broker cited improving sales momentum and disciplined cost management. 

The post Here’s what brokers tip for Xero shares over the next 12 months 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Steadfast Group Ltd (ASX: SDF) share price is back in the spotlight today, as the company announces a major update on a potential takeover bid, with a non-binding indicative proposal by a consortium now including global investor KKR alongside Amwins and Dragoneer. The offer stands at $6.00 per share in cash.

What did Steadfast Group report?

• Receipt of an updated non-binding, indicative proposal from a consortium now including KKR
• Indicative offer price: $6.00 per share in cash, less any dividends or distributions after 5 June 2026
• No change to the transaction timetable or process as a result of KKR’s involvement
• Current exclusivity and process deed remains in place with Amwins, Dragoneer, and now KKR
• There is no certainty a binding agreement will be reached

What else do investors need to know?

Amwins and Dragoneer confirmed that KKR’s addition to the consortium as co-lead investment partner will not affect the current timetable or process. The participation of KKR is not a condition for Amwins and Dragoneer to enter a binding deal with Steadfast.

Steadfast’s board reminds shareholders that there is no guarantee this proposal will progress to a binding agreement. No action is required by shareholders at this stage, and further updates will be provided as appropriate.

What’s next for Steadfast Group?

Steadfast will continue engagement with the consortium under the current process deed, maintaining strict confidentiality and assessing the proposal thoroughly. The board will update the market as soon as there are any material developments.

For now, the company remains focused on supporting its expansive broker and agency networks across Australia, New Zealand, Singapore, and the USA, and delivering long-term value for shareholders while talks progress.

Steadfast Group share price snapshot

Over the past 12 months, Steadfast shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Steadfast Group takeover bid update: KKR joins consortium appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.