• Could CBA shares reach $180 in 2027?

    A man in a suit smiles at the yellow piggy bank he holds in his hand.

    Commonwealth Bank of Australia (ASX: CBA) shares are trading around $152.43 on Monday.

    That is much closer to their 52-week low of $146.97 than their high of $185.59.

    So, could the CBA share price return to $180 in 2027?

    Could CBA shares reach $180?

    I think they could.

    From $152.43, the CBA share price would need to rise around 18% to reach $180.

    That is a decent gain, but it does not look unrealistic to me. After all, CBA shares have already traded above $180 during the past year.

    I also remain positive on the business.

    CBA is my preferred major Australian bank. It has strong positions across home loans, deposits, business banking, and everyday financial services.

    I particularly like its digital offering. The CommBank app has become an important part of how many customers manage their finances, helping CBA build deeper relationships across multiple products.

    The bank’s size is another advantage. It has millions of customers and a large deposit base, giving it a strong platform to keep generating profits.

    If CBA continues performing well, I think investors could become more positive on the shares again and push them back towards their previous highs.

    Would $180 be too expensive?

    This is where I would pay closer attention.

    CBA has rarely looked cheap in recent years, and a share price of $180 would once again put it on a high valuation.

    Consensus forecasts suggest earnings per share of $6.67 in FY27 and $6.86 in FY28.

    At $180, that would put CBA shares on a price-to-earnings (P/E) ratio of roughly 27 times FY27 earnings and 26 times FY28 earnings.

    That is a substantial premium for a bank.

    Still, I think CBA deserves to trade at a higher valuation than its major rivals.

    In my view, it is the strongest banking business in Australia, with a powerful customer franchise, leading digital capabilities, and a track record of producing substantial profits.

    So, if the business continues delivering, I think a valuation around that level could be justified.

    What about the dividend?

    CBA also remains an attractive income stock.

    Consensus estimates point to fully-franked dividends of $5.15 per share in FY27 and $5.30 per share in FY28.

    At today’s share price, the FY27 forecast represents a dividend yield of around 3.4%, before including any benefit from franking credits.

    That is not the highest yield available from the major banks, but income is only part of the reason I like CBA.

    I think the combination of a growing dividend and the potential for the share price to recover makes the overall investment case more interesting.

    Foolish takeaway

    For me, $180 does not look like a stretch for CBA.

    The shares have come back a fair way, but I still think the business is in good shape and remains the major bank I would most want to own.

    At today’s price, I would be happy to buy and give CBA time to work its way back towards those previous highs.

    The post Could CBA shares reach $180 in 2027? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you buy Commonwealth Bank Of Australia shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

  • Coal is still the king of global power. Here’s why

    a coal miner in hard hat with a light on it kisses a large lump of coal that he is holding in his hand.

    Coal prices have been back in focus over the past few weeks, and to be frank, the move has been pretty hard to miss.

    According to Trading Economics, coal finished last week at around US$144 per tonne.

    That leaves the commodity almost 11% higher over the past month and around 39% above where it was a year ago.

    The other thing worth looking at is demand.

    Global coal consumption is heading for another record in 2026, despite huge amounts of money being spent on renewable energy around the world.

    And coal still generates more electricity than any other individual source.

    So, why is it having such a strong run again?

    Why are coal prices climbing again?

    A lot of it comes back to what’s happening in global energy markets.

    The war in the Middle East has disrupted LNG shipments through the Strait of Hormuz and pushed gas prices higher.

    Virtually no coal travels through Hormuz, but that hasn’t stopped coal from benefiting.

    This is because when gas gets too expensive, some power generators will use more coal instead.

    According to the IEA, demand has picked up across China, Japan, South Korea, and parts of Europe.

    Supply has tightened a bit as well, with China stepping up mine safety checks and Indonesia cutting its 2026 production target.

    The world is burning more coal than ever

    The demand numbers are pretty eye-opening as well.

    The IEA now expects global coal consumption to rise 1.2% to a record 8.94 billion tonnes in 2026.

    That’s quite a turnaround, considering it was previously expecting demand to fall this year.

    China is still by far the biggest user, with demand expected to come in at around 5 billion tonnes.

    India isn’t exactly slowing down either.

    Coal consumption there is forecast to rise 4.2% to around 1.35 billion tonnes this year.

    Between them, China and India will consume more than 70% of the world’s coal.

    Coal is still important

    This is probably the part that gets overlooked the most.

    In 2025, coal provided around 34% of global electricity generation, making it the largest individual source of power worldwide.

    Natural gas was a distant second at around 21%.

    Yes, renewables are growing quickly and are expected to overtake coal-fired generation during 2026.

    But coal isn’t disappearing anytime soon.

    The IEA still expects it to remain the world’s largest single source of electricity through 2030.

    At the same time, worldwide electricity demand is forecast to grow 3.6% this year and another 3.8% in 2027.

    The post Coal is still the king of global power. Here’s why appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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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.

  • Down more than 18% in a month with a 7% yield, are Sonic Healthcare shares too cheap to ignore?

    two hands wearing medical gloves make the shape of a heart, indicating the best healthcare shares on the ASX market

    The Sonic Healthcare Ltd (ASX: SHL) share price has fallen by more than 18% since 19 August 2026, which is a hefty drop for an ASX healthcare share in a short time. When businesses fall that much, it’s worthwhile considering an investment.

    Sonic Healthcare is a global pathology business with a presence across a number of countries, including Australia, Germany, the US, the UK, Switzerland, and New Zealand.

    Let’s take a look at whether this is a good time to buy or not.

    Defensive earnings

    There’s a lot of uncertainty for the global economy at the moment, with rising interest rates, stronger inflation, AI uncertainties, and so on.

    Healthcare is one of those industries, in my view, that have defensive earnings. We don’t choose when to get sick, so there’s fairly consistent demand year to year. Most people also place their health as a high priority compared to many other spending categories.

    But higher interest rates are a headwind for most share prices, including defensive names. Still, I believe Sonic Healthcare’s financials can continue growing.

    In FY26, revenue rose 13% to $10.9 billion, underlying operating profit (EBITDA) grew 11% to $1.9 billion, operating profit (EBITDA) rose 9% to $1.88 billion, underlying net profit rose 17% to $621 million, and statutory net profit grew 18% to $608 million.

    Statutory earnings per share (EPS) grew 15% to $1.23.

    Assuming the same exchange rate as FY26, EBITDA is predicted to grow to between $1.95 billion and $2.03 billion, excluding back office IT systems transformation costs of around A$30 million.

    In the longer term, according to CommSec, analysts think earnings in FY28 and FY29 could grow.

    With a mixture of organic growth (from tailwinds like an ageing population) and the occasional bolt-on acquisition, the future looks promising for profit growth.

    The dividend yield

    Sonic Healthcare has an impressive history of dividends. There have only been a couple of times over the last 35 years when the business didn’t increase its payout (it was maintained instead), and I expect that to continue in the years ahead.

    The FY26 annual dividend was increased by 0.9% to $1.08. Future earnings growth is expected to support achieving of the target dividend payout ratio of between 70% to 80% of net profit.

    The FY26 payout translates into a 7.2% dividend yield, including franking credits, at the time of writing. That’s a very attractive yield, in my view.

    Is the Sonic Healthcare share price cheap?

    At the time of writing, the Sonic Healthcare share price is trading on a price-earnings (P/E) ratio of less than 16.

    I think this is a great time to invest in the business, as I don’t expect the outlook to remain as uncertain forever. Therefore, a temporary sell-off could be a long-term opportunity. Even if the P/E ratio doesn’t increase, future earnings growth (and large dividends) can help drive shareholder returns.

    The post Down more than 18% in a month with a 7% yield, are Sonic Healthcare shares too cheap to ignore? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Sonic Healthcare right now?

    Before you buy Sonic Healthcare shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sonic Healthcare wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.