On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and edged higher. The benchmark index rose 0.9% to 8,789.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a poor start to the month for Australian investors following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.55% lower this morning. In the United States, the Dow Jones fell 0.85%, the S&P 500 dropped 0.25%, but the Nasdaq rose 0.25%.

ASX 200 shares paying dividends

A number of ASX 200 shares are rewarding their shareholders with dividends on Thursday. This includes diversified food company Bega Cheese Ltd (ASX: BGA), appliance manufacturer Breville Group Ltd (ASX: BRG), drinks giant Endeavour Group Ltd (ASX: EDV), and job listings leader Seek Ltd (ASX: SEK). The latter is paying 25 cents per share to shareholders.

Oil prices rise

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a decent session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$90.35 a barrel and the Brent crude oil price is up 0.9% to US$103.50 a barrel. Doubts over US-Iran peace talks were behind the rise.

Buy Liontown shares

Liontown Ltd (ASX: LTR) shares are undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the lithium miner’s shares with a trimmed price target of $1.70. It said: “LTR’s EV is lagging the recent recovery in lithium markets and expected tight supplydemand fundamentals. When LTR was trading at its current EV in October 2025, SC6 prices were US$820/t and net debt was $274m. Since then, the Kathleen Valley underground ramp-up has been further de-risked and spot SC6 prices are above US$1,700/t. While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction.”

Gold price edges higher

It could be a positive day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.2% to US$4,189.5 an ounce. Cooler inflation data boosted the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why has the ASX 200 jumped to its highest level in 3 weeks?
• Why are Northern Star shares rocketing 8% on Wednesday?
• Expert names Woodside and CSL shares as top buys today
• Liontown Resources approves $389m Kathleen Valley lithium expansion

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Woodside Energy Group Ltd. 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.

Adairs vs Temple & Webster Group shares: Which retailer is better in October?

Australians shopping for homewares and furniture are often choosing between Adairs Ltd (ASX: ADH) and Temple & Webster Group Ltd (ASX: TPW). That makes their shares equally interesting for investors keen on the retail sector, especially as both names are now staples in bedding, furniture, and décor. So, if you’re weighing up Adairs vs Temple & Webster Group shares right now, let’s unpack their standout differences to see which might be the pick heading into October.

The case for Adairs

Adairs is a well-known bricks-and-mortar and online homewares retailer in Australia and New Zealand. With a presence in more than 170 stores (as suggested by its company profile) plus a solid e-commerce platform, Adairs offers everything from bedding and towels to lighting, furniture, nursery gear, and pet products. Its brands — Adairs, Mocka, and Focus on Furniture — give it a broad reach across budget and mid-market segments.

What’s striking about Adairs in this snapshot is its dividend profile. The company’s dividend yield sits at 8.91%, and all its dividends are fully franked — an appealing feature for Aussie investors who prefer those tax credits. Notably, the dividend per share for the most recent period was $0.12, with payments historically consistent and fully franked.

However, Adairs shows an earnings per share (EPS) of -0.222, putting it in negative earnings territory based on the figures provided. Its market cap stands at $229.52 million, with a P/E ratio of 14.33 (though with negative EPS, this may reflect alternative earnings metrics).

Year to date, Adairs’ shares are down 20.4%, which suggests a softer period for sentiment or profit, but could also potentially offer value for turnaround seekers.

The case for Temple & Webster

Temple & Webster is Australia’s leading online-only destination for furniture and homewares — it doesn’t operate physical stores. With a whopping range of over 200,000 products and “more than a million” Aussie subscribers (according to its most recent company profile), Temple & Webster has carved out a reputation for variety and e-commerce convenience. Its private label, Milan Direct, sits alongside curated branded pieces that cover office, living, lighting, wall art, and more.

Temple & Webster’s fundamentals show a market cap of $490.66 million, making it more than twice the size of Adairs by that measure. It is solidly profitable per the supplied EPS of 0.064. It’s worth noting, though, that Temple & Webster pays no dividend and has no franking, meaning investors are relying purely on share price appreciation for returns.

However, the P/E ratio is an eye-popping 121.04 — a figure that jumps off the page, and seems based on positive underlying earnings, though it may factor in forward or adjusted metrics given the EPS. Year to date, the company has suffered a very sharp fall of 69.3%, suggesting the market is penalising it for stalling growth or stretched valuation.

Valuation comparison

Here’s how the two line up on the most relevant valuation and shareholder return data:

Metric	Adairs	Temple & Webster
Market Cap	$229.52 million	$490.66 million
P/E Ratio	14.33	121.04
Earnings per Share	-0.222	0.064
Dividend Yield	8.91%	0.00%
Dividend Franking	100%	–
Year to Date Return	-20.4%	-69.3%

Note: Adairs Ltd’s P/E ratio is positive despite a negative EPS, which suggests the reported ratio may be based on an underlying or forecasted earnings figure not directly shown here.

Temple & Webster’s P/E, on the other hand, is exceptionally high, typical of fast-growth tech or online retailers — but only justifiable if growth resumes.

Recent share price performance

Comparing recent share price action up to September 2026:

• Adairs closed at $1.29 on 28 Sep 2026, down 0.78% for the day, and sunk 20.4% for the year to date.
• Temple & Webster Group closed at $4.21 on 28 Sep 2026, up a modest 0.24% for the day, but a whopping 69.3% lower year to date.

Both retailers have copped a battering, but Temple & Webster’s share price decline has been far steeper over 2026 so far.

Which is the better buy?

Both these retailers face tough market conditions, but if I had to choose in October, my pick would be Adairs. Here’s why:

Adairs offers a substantial, fully franked dividend yield near 9%, which softens the blow of recent price falls and provides steady income. Even as its share price has slipped this year, that yield looks enticing, especially compared with Temple & Webster’s zero dividend.

Temple & Webster still promises online growth and is much larger by market cap, but its P/E ratio is well over 120 — a level I can’t justify based on its current growth and the fact its shares have cratered nearly 70% this year. The lack of a dividend and severe negative momentum make it hard to see an immediate turnaround.

Both may recover if consumer sentiment improves, but for now, I’d lean towards Adairs as a better income and relative value play for October, especially if you’re after returns you can bank on regardless of what the share price does next.

The post Adairs vs Temple & Webster: Which ASX retail stock wins for October? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest in ASX shares after the recent RBA rate rise
• This ASX retail stock is sliding today after a surprise CEO exit
• Temple & Webster vs Nick Scali: Which furniture share is better?
• Treasury Wine Estates vs Temple & Webster: Which beaten down ASX stock is better value?
• 3 ASX shares down 40% to 80% I’d buy on the cheap

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 Adairs and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Temple & Webster 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.

ASX shares have slid lower this week as investors digest the latest interest rate hike and inflation data remains stubbornly high.

But, while the outlook looks bleak for some S&P/ASX 200 Index (ASX: XKO) shares, there are some which are tipped to drag the index higher over the next 12 months.

Here are three of them.

Life360 Inc (ASX: 360)

Life360 has tumbled lower over the past week after persistent inflation and September’s interest rate increase dragged down growth shares like Life360.

At the same time, investors may still be digesting the company’s second-quarter FY26 update released last month. Life360 announced a 38% increase in revenue and a 53% hike in EBITDA. It also said it expects FY26 revenue growth to accelerate from 33% to 40% year-on-year.

But it wasn’t enough to impress investors, who may have expected another upward revision in full-year guidance. 

The latest slump also follows multiple headwinds over the past year, including a tech-sector-wide sell off, loss in confidence for AI-related stocks and a general investor rotation away from growth shares.

But it looks like the shares are finally considered to be trading below fair value. Market Index shows that all brokers have a strong buy rating on the ASX shares. The $31.72 target price implies a potential 67% upside at the time of writing.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk shares have been relatively resilient over the past week after investors flocked to defensive assets like ASX consumer staple stocks, ahead of the Reserve Bank announcement on Tuesday. Shares like A2 Milk are considered defensive because their products aren’t discretionary.

It’s good news for the company after it suffered a difficult start to the year. The shares crashed to a multi-year low in June but rebounded quickly and have stayed relatively stable since. However, the share price still has a long way to go to recover to 2025 levels.

The company’s FY26 results last month weren’t as bad as many were expecting. It reported a 12.4% increase in revenue but a 2.5% decline in full-year statutory EBITDA and a 5.8% drop in statutory NPAT. The announcement didn’t have much impact on A2 Milk’s shares.

The shares still look well below fair value, though. Market Index data shows most brokers rate the shares a buy. The $8.04 average target price implies a potential 21% upside at the time of writing.

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband shares are around flat for the week so far, again likely supported by the company’s defensive qualities at a time when investors are flocking to less risk-averse assets.

The ASX telecommunications and internet retail service provider’s shares crashed in August after it posted its FY26 results. The company posted a 19.6% increase in underlying EBITDA and a 9.2% increase in revenue. But investors quickly sold off, possibly due to concerns about the company’s momentum and outlook.

The shares dropped to an annual low in mid-September but have since rebounded around 6%.

It looks like they could keep climbing higher. Market Index data shows all brokers rate the telco’s shares a strong buy. The $5.73 average target price implies a potential upside of around 36% at the time of writing.

The post Brokers tip up to 67% for these 3 ASX shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Woodside, Life360, Ramsay Health Care shares
• Sell alert! Why this expert is calling time on Life360 and Xero shares
• TechnologyOne vs Life360: Which ASX tech share has more upside?
• Investors get defensive as ASX 200 drifts to a 15-week low
• 5 best ASX shares to buy in October

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 Aussie Broadband and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.