Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL) shares are starting October from very different positions.

CBA shares are trading around $150.30 on Friday, not far from their 52-week low. Coles shares, meanwhile, are around $23.05 and much closer to their 52-week high.

Even so, I would be happy to buy both.

CBA shares

CBA has become more interesting to me as the share price has moved closer to the lower end of its recent range.

The shares are only slightly above their 52-week low of $146.97, which gives investors a much better starting point than they had earlier in the year.

I still would not call CBA cheap in an absolute sense. Consensus forecasts point to earnings per share (EPS) of $6.67 in FY27 and $6.86 in FY28, compared with $6.58 in FY26. That means investors are still paying a premium for fairly modest earnings growth.

But I think there are reasons the market consistently gives CBA that premium.

It is Australia’s largest bank, has a powerful deposit franchise, and remains a leader in digital banking. Those strengths have helped it build a highly profitable business that I would be comfortable owning through different economic conditions.

The dividend supports the buy thesis. CBA paid $5.05 per share in FY26, with consensus forecasts pointing to dividends of $5.15 in FY27 and $5.30 in FY28. This represents dividend yields of 3.4% and 3.5%, respectively.

For me, I like the combination of quality, resilience, and a gradually rising dividend at a share price much closer to the year’s lows.

Coles shares

Coles is a different story. Its shares are trading around $23.05, not far from their 52-week high of $24.59. Ordinarily, that might make me more cautious.

But I think the earnings outlook gives the share price some support.

Coles generated EPS of 81.3 cents in FY26. Consensus forecasts point to EPS of 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

That is a much stronger growth profile than CBA, with earnings expected to rise by more than 40% between FY26 and FY29.

I like that Coles combines this growth with the defensive qualities of supermarkets.

Australians still need groceries regardless of what is happening in the broader economy, while improvements in efficiency, supply chains, and operations can help Coles turn steady sales growth into stronger earnings.

The dividend is also expected to move higher, from 78 cents in FY26 to 83.5 cents in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

So while the shares are close to their highs, I think the business has the earnings growth to justify a higher valuation than it commanded a few years ago.

Foolish takeaway

I would be buying CBA and Coles shares for different reasons in October.

CBA appeals to me because the share price has come back towards its lows while the underlying business remains strong.

Coles is closer to its highs, but I think its earnings trajectory gives the shares room to keep progressing.

For me, both still deserve a place on the buy list.

The post Why I’d buy CBA and Coles shares in October appeared first on The Motley Fool Australia.

More reading

• If I invest $10,000 in ANZ shares, what passive income could I receive in FY27?
• Are ASX 200 bank stocks a buy in October?
• Commonwealth Bank vs BHP: Which ASX blue chip is the better buy in October?
• 5 leading ASX shares I’d buy and hold until 2040
• Commonwealth Bank vs ANZ: Which is better for passive income?

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.

The Lendlease Group (ASX: LLC) share price may be in focus after the company announced an update on the sale of its interest in the Milano Santa Giulia (MSG North) project in Milan, Italy. Key highlights include an extension of the deadline for the sale and potential future funding commitments.

What did Lendlease Group report?

• Update on sale of MSG North development rights to Bizzi & Partners S.p.A
• Original sale conditions not yet satisfied; deadline extended to 15 October 2026
• Transaction closing remains uncertain and may be further extended
• If sale falls through, Lendlease may need to fund approximately $160 million in project obligations in 1H FY27

What else do investors need to know?

Lendlease previously arranged to sell its stake in the MSG North project through its Heartbeat Fund to an investment group led by Bizzi & Partners S.p.A, a local Italian developer. However, as conditions precedent have not been met, both parties have agreed to push out the satisfaction deadline to 15 October 2026.

The ongoing uncertainty means the timeline for finalising the sale could move again. Should the transaction not complete, Lendlease stated it will likely be required to provide significant project funding, which could impact cash flow in the first half of FY27.

What’s next for Lendlease Group?

Lendlease will continue working with its transaction partner to try to fulfil the remaining conditions required for the sale. Investors should keep an eye on future updates about the transaction, particularly given the potential financial exposure if the sale does not go through.

Looking ahead, the group’s next steps with the MSG North project are highly dependent on whether the sale completes. Lendlease may have to reassess its funding priorities and capital allocation depending on the outcome.

Lendlease Group share price snapshot

Over the past 12 months, Lendlease shares have declined 55%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Lendlease Group extends MSG North sale deadline, outlines possible funding requirement appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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. 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.

Macquarie Group vs AMP shares: Which ASX financial stock stands out?

If you’re considering ASX financial stocks, Macquarie Group Ltd (ASX: MQG) and AMP Ltd (ASX: AMP) are both familiar names—though they play very different roles in Australia’s finance sector. Investors might be weighing up Macquarie Group vs AMP shares for solid income, growth potential, or pure exposure to the banking and investment space. Here’s how these two stack up right now.

The case for Macquarie

Macquarie Group is a global powerhouse in investment banking, asset management, and specialist advisory. While it is best known as Australia’s fifth-largest bank by market cap, its retail banking arm is just a slice of the wider business. Macquarie has footholds in 34 markets and, as of its company profile, is ranked among the top 50 global asset managers. Its expertise covers everything from infrastructure and commodities to renewable energy and resources.

In terms of key numbers, Macquarie is a true ASX heavyweight with a market cap of $94.41 billion. Its shares currently trade at a P/E ratio of 19.50, showing a more moderate valuation relative to the broader financial sector heavyweights. Dividend yield sits at 2.83%, franked to 35%. Earnings per share (EPS) come in at 12.669, so despite the generally cyclical nature of investment banking, profitability remains healthy.

For dividends, Macquarie has a solid history of regular payouts, albeit with some variability in franking percentages over time. Its most recent announced dividend was $4.20 with 35% franking.

The case for AMP

AMP Limited traces its roots back to 1849, giving it a uniquely deep history among ASX names. Today it operates across superannuation, life insurance, investment management, and some banking and wealth divisions. After demutualising in 1998, AMP has undergone serious transformation—shedding various assets, including the Collimate Capital business in 2022, and shifting its financial advice arm into a new joint venture in 2024, according to its most recent public description.

AMP’s fundamentals look quite different to Macquarie’s. Its market cap is $6.22 billion, making it much smaller in scale. The shares trade at a P/E ratio of 35.00—well above Macquarie’s—though the earnings per share are also much lower at just 0.074. The dividend yield now sits at 1.93% with 20% franking. Recent dividends have been modest—its last payment was 3 cents per share.

AMP’s story in recent years has been one of turnaround efforts and business refocus, with income investors seeing less predictability in dividend payments compared to Macquarie.

Valuation comparison

There are some clear valuation and size differences between these two:

Note: AMP’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

Recent share price performance

Comparing recent share price action up to 29 September 2026:

• As of 29 September 2026, Macquarie Group closed at $247.09, having delivered a 23.7% year-to-date return. Its share price has shown steady momentum with only modest pullbacks during the period.
• On the same date, AMP closed at $2.58, boasting a strong 45.1% year-to-date gain. Recent price movement has tilted higher, although its share price remains far lower in absolute dollar terms and tends to be more volatile day-to-day.

Which is the better buy?

Both Macquarie Group and AMP are established finance names, but I’d lean strongly towards Macquarie at current levels. Its size, diversified global earnings base, and history of resilient profitability set it apart. The P/E ratio is reasonable for a major financial, especially given its international footprint and wide range of fee-earning businesses. Dividends are higher and more consistent, with better franking.

AMP, by contrast, is still rebuilding investor trust after a string of restructures. Its higher P/E and much lower EPS signal either a recovery story not yet proven, or simply a more speculative bet. While the 45.1% year-to-date return for AMP is impressive, it comes after a drawn-out period of underperformance and heavy restructuring. Dividends are lower and only lightly franked.

Unless you are looking specifically for a speculative turnaround play or believe in AMP’s fresh growth strategy, my pick would be Macquarie Group for its overall blend of income, growth, and business quality.

The post Macquarie Group vs AMP: Which ASX financial stock is best? appeared first on The Motley Fool Australia.

More reading

• Are ASX 200 bank stocks a buy in October?
• 2 ASX shares highly recommended to buy: Experts
• How high could Macquarie shares go? RBC Capital Markets has its say
• Here are the top 10 ASX 200 shares today
• Soul Patts vs Macquarie Group: Best ASX dividend stock for retirees?

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 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. 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.