Coles Group Ltd (ASX: COL) shares were in fine form on Tuesday.

Following the release of the supermarket giant’s FY 2026 results, its shares were bid almost 5% higher, closing the session at $23.75.

This leaves Coles shares trading close to their record high of $24.59.

Can they keep climbing? Let’s see what Bell Potter is saying about the company and its shares.

What is the broker saying?

Bell Potter highlights that Coles delivered a profit slightly ahead of expectations in FY 2026. It said:

Revenue of $45,580m was up +2.8% YoY (vs. BPe $45,698m and VA $45,602m). EBITDA of $4,220m was up +7.1% YoY (vs. BPe of $4,220m and VA $4,244m). Underlying NPAT of $1,255m was up +13.7% YoY (vs. BPe of $1,195m and VA $1,241m).

The broker also highlights that Coles plans to make a significant investment in its store network, which will include the opening of 45+ new stores and the refurbishment of many more. It said:

COL has unveiled a material investment in its business, in: (1) Network investment of $300m over FY27-28e, covering new stores (+45 new Supermarkets) and refurbishments (1500 renewals); (2) $880m investment in VIC ADC ($190m spent to date and $300m in FY27e) with commissioning in FY30e; and (3) Strategic partnership with Accenture to generate >$100m in benefits by endFY29e (requiring an upfront $190m investment to be booked as an NRI).

Bell Potter has boosted its net profit estimates by 11% in FY 2027 and FY 2028, reflecting lower depreciation charges and the benefits of accelerated store opening program.

Should you buy Coles shares?

According to the note, Bell Potter has retained its hold rating on Coles shares with an improved price target of $24.40 (from $22.80).

This implies modest potential upside of 2.7% before dividends. Including them, Bell Potter expects a total return of just over 6%.

Commenting on its recommendation, the broker said:

The major acceleration in business investment creates a reasonably attractive growth profile through to FY29e, with a reasonable dividend yield. Staples remain in favour and COL is a beneficiary of this dynamic.

In determining our target price we have considered a sum of the parts and ROIC model. Major features of these approaches are: (1) Sum of the parts: We have incorporated multiple of 9.5x EBITDA for Supermarkets and 8.0x EBITDA for the liquor business, modest discounts to its peers; and (2) ROIC based approach : Which is predicated on a WACC of 8.1%, deriving an implied EV/EBITDA is ~9.3-9.5x FY27- 28e.

The post Are Coles shares a buy after its results? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

It seems strange to think about now, but it really wasn’t that long ago that bank stock Commonwealth Bank of Australia (ASX: CBA) was the largest share on the S&P/ASX 200 Index (ASX: XJO).

CBA held this crown for a long time, but it was usurped back in January by none other than BHP Group Ltd (ASX: BHP). The mining giant only held on to said crown for a few weeks, returning it to CBA in February. By March, though, BHP was back on top, and has been there ever since.

Today, the gap looks almost insurmountable. As we speak, BHP rules the ASX 200 roost with its market capitalisation of just over $344 billion. CBA comes in a distant second at a value of $262.75 billion.

In an ASX 200 index fund, this means that BHP commands about a 12% weighting, with CBA taking up 9.6%.

Given that just a few months ago, these two titans of the ASX were in lockstep, it is worth asking the question: ‘Will CBA shareholders take back the crown that it relinquished to BHP many moons ago?’

Well, the theoretical answer is of course yes. The ASX has seen many swings and roundabouts in the makeup of its top echelons over many decades. If CBA has supplanted BHP before, there’s no reason it cannot do so again. And vice versa.

So let’s look at what it took to get where we are today.

CBA vs BHP shares: The race to the top of the ASX 200

CBA shares have really had a year to forget in 2026. The stock is down about 2.5% year to date. It has had a lacklustre 12 months too, with the bank last hitting a record high of $192 a share back in June of 2025. Today, at $157.01, it is down more than 18% from that all-time high. An arguably stretched valuation, as well as concerns over housing and financial markets in Australia, are the likely culprits for this drop.

Meanwhile, BHP has been firing on all cylinders. The ‘Big Australian’s bet on copper has paid off handsomely, with roaring prices pushing BHP stock to reset its own record highs several times over 2026 to date. The most recent record came just yesterday, seeing the miner hit $68.22 a share.

Year to date, BHP has now lifted an astonishing 47.88%.

So we can see how the disparity between BHP and CBA shares has established itself.

But all it would take for the gap to narrow, or even invert, would be a change in economic conditions. BHP is a resources stock, and thus highly sensitive to commodity prices. If prices came off the boil, you can bet that BHP’s shares would follow, and sharply.

If CBA held its own or even attracted buyers looking for a safe haven (the company has benefited from this before), we could well see Commonwealth Bank regain its ASX 200 crown. It’s entirely possible. But whether it happens next month, next year or next decade is the $80 billion question.

The post Will CBA shares ever get back to the top of the ASX 200? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares are trading in the green this week. The ASX lithium stock has gained 21% over the past month and nearly 140% over the last 12 months, at the time of writing.

The question for investors is whether the rally can continue after PLS Group delivered a remarkably strong FY2026 result.

The latest earnings report, released on Monday, showed just how dramatically the lithium market has improved.

Profit and revenue surge

Higher lithium prices and stronger market confidence provided a major boost to PLS’ financial performance.

The company’s realised selling price jumped 121% to US$1,488 per tonne. That helped revenue surge 152% to $1.9 billion, while net profit after tax (NPAT) exploded 369% higher to $528 million.

The company also improved its underlying operations. Unit operating costs (FOB) fell 9% to $569 per tonne, while sales volumes reached a record level. PLS Group also strengthened its balance sheet, helped by a successful US$600 million bond issue.

Management of PLS shares says the business enters FY2027 “larger, lower cost” and with significantly stronger finances and greater flexibility.

From defense to growth

The company plans to build on that position by progressing growth projects including P2000 and Colina, while ramping up production at Ngungaju.

During the year, the improving lithium environment allowed Pilbara Minerals to shift from defensive positioning towards growth. It restarted the Ngungaju processing plant and updated timelines for the P2000 and Colina projects.

The P2000 and Colina feasibility studies have also progressed, with the company approving approximately $175 million of pre-FID capital expenditure for P2000 in June.

There won’t be many ASX companies with a market capitalisation above $10 billion delivering this level of growth during the current reporting season.

Are PLS shares still a buy?

Despite the impressive numbers, investors may need to be more selective after such a huge share-price rally.

Bell Potter believes PLS shares may have peaked for now. The broker retained its hold rating on Tuesday morning but increased its price target from $4.70 to $5.20. With PLS shares currently trading at $5.15, this suggests they are near fair value.

TradingView data shows a divided analyst community. Nine of 18 brokers rate the stock a buy or strong buy, while the average price target is $5.36, slightly above the current share price.

The most bullish forecast sees PLS shares climbing 28% to $7.00. At the other end of the spectrum, the most pessimistic forecast points to a potential 40% decline.

So, while PLS Group’s fundamentals have improved dramatically, the share price may already reflect much of that optimism. After a 140% gain over 12 months, investors should weigh the company’s strong growth prospects against lithium price volatility and valuation.

The post Up nearly 140%, are PLS shares still a buy after exploding profit growth? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.