S&P/ASX 200 Index (ASX: XJO) shares are up 0.27% to 9,086.2 points as earnings season continues on Monday.

Among the 11 market sectors, materials and miners are in the lead today, up 1.7%.

The sector pushed higher amid BHP Group Ltd (ASX: BHP) shares reaching a new record of $67.72, up 3.9%, in early trading.

The financials sector is the laggard today, down 1%.

Let’s check out some new expert ratings on three ASX 200 sector heavyweights.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $191.56, down 0.02% today and down 37% over 12 months. 

Pro Medicus shares jumped 7.1% last week after the company released its FY26 results.

The Pro Medicus share price is up 20% since the downtrodden healthcare sector pivoted on 3 June. 

Morgans maintained its accumulate rating on Pro Medicus shares after the report.

Analyst Iain Wilkie said: 

FY26 confirms PME is executing at an even higher level than the market gave it credit for. EBIT margin of 74.9% and constant currency EBIT growth of 30.6% both beat expectations comfortably, with the FX-driven softness in headline revenue a currency story, not a demand or execution one.

Momentum remains broad-based, implementations are ahead of schedule, renewals are a clean sweep, and the pipeline is opening up in new segments rather than just deepening in existing ones.

Looking ahead, FY27 is shaping as a genuine standout year. With four Trinity cohorts and 15 other implementations already banked rather than still ramping, the P&L gets the full run-rate benefit without needing fresh signings just to stand still.

Nothing in the result gives us any pause for change versus our positive view.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $18.08, up 1.8% today and down 10% over 12 months. 

Morgans has a hold rating on this ASX 200 mining share following the company’s FY26 report last week.

Analyst Adrian Prendergast said: 

A mixed FY26 result from FMG, with higher revenue helping to offset cost increases and elevated admin/R&D to help keep underlying earnings flat.

With the focus on FY27 guidance, Iron Bridge remained a key issue, with the magnetite operation struggling through ramp up and with elevated costs.

Plans for a green steel plant was big news, although difficult to quantify.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $155.24, down 1.7% today and down 9% over 12 months. 

CBA reported a 7% increase in its cash net profit after tax (NPAT) to $11 billion for FY26.

John Athanasiou from Red Leaf Securities has a sell rating on this ASX 200 bank share. 

He explained (courtesy The Bull):

CBA shares deserves to trade at a premium given its dominant retail franchise, strong technology platform, solid deposit base and consistent execution.

However, Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth.

At a premium valuation, investors are paying a higher price for quality, leaving little room for disappointment.

After a substantial re-rating, investors may be better served taking some profits and reallocating capital towards businesses offering stronger growth at more reasonable valuations.

The post Buy, hold, sell: Pro Medicus, Fortescue, CBA shares appeared first on The Motley Fool Australia.

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• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus
• 5 things Warren Buffett looks for before buying ASX shares

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended BHP Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares have continued sliding since the bank’s latest quarterly update.

A new 52-week low naturally makes the shares look more tempting.

But has the investment case improved enough for me to buy?

The valuation has come down

Westpac shares touched a 52-week low of $33.46 on Monday, well below their 52-week high of $43.32.

That represents a decline of almost 23% from the peak and has taken some of the heat out of the valuation.

According to CommSec, analysts currently expect earnings per share of $2.08 in FY26 and $2.15 in FY27. At $33.46, Westpac is trading at around 16 times FY26 earnings and approximately 15.6 times FY27 earnings.

Those numbers look considerably more reasonable to me than they did when the shares were above $40.

Consensus forecasts also point to fully franked dividends of $1.54 per share in FY26 and $1.55 in FY27, so investors are still being offered a healthy stream of income while they wait.

But a cheaper share price alone is not enough to make me change my view.

My main concern hasn’t gone away

I wrote negatively about Westpac earlier this month after its third-quarter update, and the issue that bothered me then is still important today.

Mortgage applications have slowed.

Westpac reported average monthly mortgage applications of around 29,000 during the third quarter, while the run rate following the federal budget had fallen further to approximately 26,000.

That catches my attention because home lending remains a huge part of Westpac’s business. Its Australian mortgage portfolio stood at $529.1 billion at the end of June.

The bank also expects Australian housing credit growth to slow from 6.8% in FY26 to 4.7% in FY27.

Westpac is still profitable and its third-quarter update contained positives, including growth in business lending and deposits. But I would like to see clearer evidence that the bank can generate stronger growth outside its enormous mortgage business before becoming more positive.

The consensus numbers do not give me much reason to rush either. Earnings per share are currently expected to rise only modestly between FY26 and FY27, while the dividend forecast is almost unchanged.

I’d rather own CBA or NAB

If I wanted to buy an Australian bank today, I would still look elsewhere.

Commonwealth Bank of Australia (ASX: CBA) remains my preferred high-quality banking business.

I like its enormous customer franchise, strong digital capabilities, and ability to grow relationships across personal banking, home lending, business banking, and other financial services.

National Australia Bank Ltd (ASX: NAB) also interests me more than Westpac.

NAB’s strong position in business banking gives it exposure to an area I find attractive, particularly when competition and slower growth can make Australian home lending more challenging.

Westpac is working to strengthen its own business banking operations, including adding more regional bankers. That could help over time.

For now, though, I think CBA and NAB give me stronger reasons to invest.

Foolish takeaway

The new 52-week low has made Westpac shares more reasonably priced, but I am still not a buyer.

I would want more than a falling share price to change my mind. The slowdown in mortgage applications remains a concern, while current forecasts suggest earnings growth could be fairly subdued in the near term.

Westpac could certainly recover from here, and its dividend may attract income investors.

For my own money, though, I would rather put it behind CBA or NAB and wait for stronger evidence before reconsidering Westpac.

The post Are Westpac shares a buy at their new 52-week low? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CSL, BHP, Westpac shares
• Experts name CBA and these ASX shares as sells today
• How much do you need invested in ASX dividend shares to replace a $90,000 salary?
• 5 things Warren Buffett looks for before buying ASX shares
• 3 reasons to buy CBA shares following its results

Motley Fool contributor Grace Alvino 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.

Shares in automotive repairer AMA Group Ltd (ASX: AMA) have fallen almost 50% over the past 12 months, but the analyst team at Bell Potter thinks the company is worth another look.

Solid profit result posted

The company last week reported its full-year results, with revenue coming in at $1.04 billion and EBITDA tipping the scales at $68 million, up 8.6%.

Managing Director Ray Smith-Roberts said the company had delivered positive results despite a challenging operating environment.

He said:

AMA is increasingly becoming a vertically integrated business that combines vehicle repair services with automotive parts sourcing and supply, enabling greater control over repair quality, turnaround times and costs. Being vertically integrated, with multiple income streams, provides us with a key competitive advantage. Strong performances from our ACM, Mechanical and ADAS businesses demonstrate the value of complementary capabilities across the vehicle repair lifecycle and position the Group to respond to evolving customer and industry needs.

The company opened three new sites during the year, in South Australia, New South Wales, and Tasmania.

The company also declared a dividend of 0.5 cents per share – its first since 2019.

On the outlook for FY27, AMA Group said it expected EBITDA to be in the range of $75 to $80 million, “subject to ordinary trading conditions”.

Shares looking cheap, broker says

Bell Potter has a positive outlook on the company despite the earnings results missing consensus estimates.

They said:

The result … missed the guidance of $70-75m and was largely driven by a lower-than-anticipated uplift in repair volumes during Q4 as a result of higher fuel prices and public transport concessions. A highlight of the result was the positive free cash flow of $2.5m – we had forecast around breakeven – and the lower than expected year end net debt level of $18.4m. Positive surprise of the result was a final dividend of 0.5c fully franked where we had not forecast any.  

Bell Potter slightly downgraded its earnings expectations for AMA Group, with its EBITDA forecast now $76.7 million, which is towards the lower end of the company’s own forecast.

This flowed through into a lower price target for the company, down from $1 to 90 cents, but still well above the current share price of 49.5 cents.

Bell Potter said one of the main risks to the company was customer concentration.

They said:

The car insurance market in Australia is heavily concentrated and a significant proportion of AMA’s revenue is derived from the top two insurers, Suncorp and IAG. Any breakdown in the relationship with one or both of these insurers could have a material adverse impact on AMA’s revenue and profitability.

The post Bell Potter says this ASX small cap could almost double in value appeared first on The Motley Fool Australia.

More reading

• Are Westpac shares a buy at their new 52-week low?
• 3 ASX shares I’d buy for their global growth potential
• Two ASX data centre stocks rated a buy
• Buy, hold, sell: CSL, BHP, Westpac shares
• 3 ASX shares I’d buy if I were a beginner today

Motley Fool contributor Cameron England 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.