Lovisa vs Universal Store shares: Which retail growth stock stands out?

For Aussie investors interested in retail growth shares, Lovisa Holdings Ltd (ASX: LOV) and Universal Store Holdings Ltd (ASX: UNI) are both eye-catching. Each is a big name in its space, with global ambitions and strong domestic roots. But if you’re looking for the better buy between Lovisa and Universal Store shares, it’s worth digging into how they compare on business focus, dividends, valuation, and recent returns.

The case for Lovisa

Lovisa is a specialist in fast-fashion jewellery and accessories, founded in Sydney in 2010. According to its most recent public description, Lovisa has rapidly expanded to more than 1,136 stores across more than 50 countries, with an online presence in several markets. The brand is known for its affordable, on-trend products and a highly scalable, vertically integrated retail model that lets it design and source all its own stock.

Three fundamentals stand out for me:

• Market cap: At $2.5 billion, Lovisa is the larger business here, reflecting its much broader global footprint.
• Dividend yield: The current yield is 3.8%, with dividends being partially franked (recently 50%). Lovisa pays regular dividends, but the franking level varies, which can affect after-tax returns for Aussie shareholders.
• P/E ratio: With a price-to-earnings ratio of 26.21, investors are paying up for Lovisa’s proven global growth and scale. EPS sits at $0.792 according to the latest snapshot provided.

Lovisa’s growth mindset, agile product cycles, and far-reaching network have allowed it to punch well above its weight in fashion jewellery. Dividends have been consistently paid and generally trending upward, though payout franking levels do fluctuate.

The case for Universal Store

Universal Store Holdings is a leading Australian specialty fashion retailer, mainly targeting younger customers with casual apparel, footwear, and accessories. The business, which started in 1998, operates both brick-and-mortar outlets and e-commerce, but has a much smaller network than Lovisa, with 123 stores.

Notable points for Universal Store:

• Dividend yield: At 6.06%, the yield is considerably higher than Lovisa’s, and importantly, fully franked – giving Aussie investors the advantage of maximum tax credit.
• P/E ratio: The price-to-earnings ratio is a bit higher at 30.04, implying growth expectations are also being priced in. Reported EPS is $0.236.
• Market cap: Universal Store is valued at $544 million – much smaller than Lovisa, reflecting its more concentrated operations and different stage of growth.

Dividend history shows steadily rising, fully franked payouts, suggesting a focus on rewarding shareholders from current profits. Universal Store may lack Lovisa’s scale, but its combination of niche focus and strong dividend credentials is appealing.

Valuation comparison

Here’s a clear side-by-side of the key numbers that matter:

Metric	Lovisa	Universal Store
Market cap	$2.50 billion	$543.95 million
P/E ratio	26.21	30.04
Dividend yield	3.8% (partially franked, 50%)	6.06% (fully franked)
Dividend per share	$0.86	$0.43
Earnings per share	$0.792	$0.236
Year to date (YTD) return	-19.9%	-6.0%

Note: Universal Store’s P/E ratio is based on a lower absolute EPS, which may reflect its stage in the growth cycle; Lovisa delivers more earnings per share for each dollar you pay at current prices. Also, Lovisa’s reported P/E ratio and EPS are mathematically consistent, and the same holds for Universal Store.

Recent share price performance

Comparing the period from 24 August to 18 September 2026:

• Lovisa saw a negative trend, dropping from $23.30 on 24 August to $22.62 on 18 September. Its YTD return stands at -19.9%, signalling the stock has struggled in 2026 so far.
• Universal Store also faced a dip, from $8.56 on 24 August to $7.09 on 18 September, but its YTD return is -6.0% – a softer fall compared to Lovisa over the same period.

It’s clear both stocks have had a tough year to date, with Universal Store holding up better overall.

Which is the better buy?

If I had to pick between Lovisa Holdings and Universal Store shares right now, my vote goes to Universal Store. The deciding factors are the much stronger, fully franked dividend yield (6.06% vs 3.8%), and the more modest share price slide so far in 2026. While Lovisa is the bigger and more global growth play, its yield is lower and only partly franked. Universal Store’s P/E is slightly higher, but not by a massive margin given growth expectations in specialty retail.

While neither stock has set the market on fire this year, Universal Store’s high, well-franked yield looks like a solid reward for riding out what could be a transitional year. If seeking both income and a steady hand amid volatility, I think Universal Store edges out Lovisa right now. Of course, long-term growth investors wanting global scale may still prefer Lovisa, but for me, the balance tips in favour of Universal Store today.

The post Lovisa vs Universal Store shares: Which ASX retail stock is the better buy today? 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 Lovisa. The Motley Fool Australia has recommended Lovisa and Universal Store. 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 draft. 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.

ASX shares have trended higher on Tuesday afternoon as falling oil prices help ease some inflation concerns.

Here are four ASX shares that brokers are forecasting could help drive the index higher over the next 12 months.

And one of them is tipped to soar up to 125%.

Silex Systems Ltd (ASX: SLX)

Silex Systems develops and commercialises laser technology to sort and separate different types of isotopes to prepare uranium for nuclear power plants.

At the time of writing on Tuesday afternoon, the ASX uranium company’s shares are up around 4% to $4.61 a piece. The increase is great news for investors after the beaten-down stock tumbled 16% over the past month, and is down 48% for the year-to-date.

The latest increase follows a recent announcement that Global Laser Enrichment (GLE), which is 51%-owned by Silex, has signed an exclusive Offtake Agreement with major partner Cameco Corporation. Under the agreement Cameco will buy all of the future production of GLE’s planned Paducah Laser Enrichment Facility (PLEF), in Kentucky.

A recent uptick in uranium prices has also likely supported Silex shares. Trading Economics data shows that the metal is trading around US$90 per pound, close to a six-month high.

Market Index data shows brokers are very bullish on the outlook for the stock. All brokers have a strong buy rating and the $10.33 average target price implies an upside of around 125% at the time of writing.

Zip Co Ltd (ASX: ZIP)

Zip shares are also climbing around 1% higher on Tuesday, to $2.26 at the time of writing. It’s been a volatile ride for the buy now, pay later provider after the shares reached a mutli-year high in October last year, then tumbled to an annual low in March. The ASX shares started rebounding again but the sell off accelerated again after it posted its FY26 results last month. They’re now down around 52% compared to a year ago.

Zip posted a record result, including a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26. For FY27 Zip is targeting a cash EBTDA of $340 million, up another 26%.

While the results were positive on the surface, many were underwhelmed by the company’s growth outlook. 

But the news hasn’t deterred brokers who still hold a unanimous strong buy rating, according to Market Index data. The $3.95 average target price also implies an upside of around 74% at the time of writing.

Deep Yellow Ltd (ASX: DYL)

Deep Yellow is an ASX uranium development company with a portfolio of Australian and global projects. Like Selix, its shares are also climbing much higher on Tuesday afternoon off the back of a stronger uranium price and renewed investor confidence in uranium stocks.

At the time of writing, Deep Yellow shares are up around 4% and are changing hands at $1.39. The current share price represents a 29% decline for the year-to-date and a 31% drop from 12 months ago.

Late last month, the company announced the completion of two major milestones at its flagship Tumas Project in Namibia. These included a long-term water supply agreement and finalisation of local ownership arrangements. The company is now focused on successfully progressing its Tumas Project towards a Final Investment Decision in Q4 2026.

Brokers are also bullish that the ASX shares can climb even higher over the next 12 months. Market Index data shows the majority have a strong buy rating, and the $2.28 average target price implies an upside of around 64% at the time of writing.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Media giant Nine Entertainment posted its FY26 results late last month, including a 3% increase in revenue, a 17% increase in EBITDA, and a 7% increase in NPAT.

The result comes after the company underwent a strategic reshape of its business during the first half of FY26. Nine Entertainment sold its stake in Nine Radio and property platform Domain, restructured its NBN and Darwin TV operations, and acquired QMS Media. The strategy shifts the company’s focus toward growth areas like streaming, outdoor and digital publishing.

But it looks like investors weren’t happy with the result. On the day of the announcement, the Nine Entertainment share price spiked around 7%. But then it was soon followed by a selloff. 

The shares have now fallen around 29% to just 75 cents at the time of writing. The latest crash means the ASX shares are now 36% lower than 12 months ago.

But it looks like brokers are still bullish that the company can recover this year. Market Index data shows the majority have a strong buy stance on the ASX shares. The $1.21 average target price implies a potential 63% upside ahead.

The post 4 ASX shares tipped by brokers to return 63% to 125% 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Transurban Group Ltd (ASX: TCL) shares have fallen around 0.5% in Tuesday lunchtime trade to a 52-week low of just $13.21.

At one point this morning, the shares were trading as low as $13.18.

Today’s decline means the shares have also now shed around 13% of their value since reaching a 16-year high of $15.61 in mid-June.

What caused Transurban shares to fall to an annual low?

The toll road operator’s share price decline accelerated after the company posted its FY26 results and distribution guidance in mid-August. 

Transurban reported a 7.5% increase in its proportional operating EBITDA and a 6.7% increase in its proportional toll revenue growth. The company’s EBITDA margin also increased to 75.7%, up from 74.9% in FY25.

Management declared a FY26 dividend of 69 cents per share, up 6.2% from FY25.

Management also gave guidance for a higher distribution of 72 cents per share in FY27, but warned that free cash coverage is expected to fall slightly below their targeted 95% to 105% range.

But investors seem concerned about Transurban’s rising debt-servicing costs, prompting questions about whether it is trading at a stretched valuation.

News in late-August that Transurban has been selected to deliver Tennessee’s I-24 Choice Lanes project, in partnership with Ferrovial and Tikehau Star Infra, hasn’t helped boost confidence either.

The 26-mile project has an estimated construction value of US$9.2 billion and a total concession value of around US$24.8 billion.

Again, Transurban’s August traffic growth report didn’t bring more investors back into the stock. The company reported groupwide average daily traffic (ADT) growth of 3.4% in August year-on-year. It noted particularly strong results in North America and continued momentum in Sydney and Melbourne.

Can the share price rebound?

It looks like brokers are also reserved about the company’s outlook.

TradingView data shows that the majority (11 out of 14) have a hold rating on Transurban shares. But after the latest share price decline, there could still be some upside ahead. The $13.87 average target price implies around a 5% upside ahead, at the time of writing.

Morgans confirmed its trim rating on Transurban shares after the company posted its FY26 results last month. The broker now has a $12.53 target price on the shares, implying some more downside ahead.

It noted that the company’s free cash flow guidance suggests Transurban is a slower-growth stock than its trading yield implies.

“If TCL were repriced to APA Group’s yield the share price would trade down towards our $12.53 target price,” Morgans said.

The post Can Transurban shares rebound from a 52-week low? 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.