Goodman Group (ASX: GMG) has become one of the clearest ASX ways to invest in the infrastructure behind artificial intelligence and cloud computing.

The opportunity is substantial, although investors are already paying a premium for it.

So, would I put $5,000 into Goodman shares today?

What would $5,000 buy?

Goodman shares are trading around $29.55. That means a $5,000 investment would buy approximately 169 shares before brokerage.

According to consensus estimates, Goodman is expected to generate earnings per share of $1.28 in FY26 and $1.37 in FY27.

That puts the shares on a price-to-earnings ratio of around 23.1 times FY26 earnings and 21.6 times FY27 earnings.

I would not call that cheap for a property group. However, Goodman has moved well beyond the traditional model of owning warehouses and collecting rent.

Its data centre pipeline gives the company a much stronger growth outlook than most ASX property shares.

Why the data centre opportunity stands out

Data centres are the physical foundation of the digital economy.

Artificial intelligence, cloud computing, streaming, cybersecurity, digital payments, and online services all depend on buildings filled with computing equipment.

Developing those facilities is far more complicated than putting up a warehouse.

A site needs access to enormous amounts of electricity, fibre connections, cooling, planning approvals, suitable land, and proximity to major customers. In large cities, assembling those pieces can take years.

Goodman has already spent a long time securing land and power in markets where technology companies want to operate. Its global power bank reached 6.4 gigawatts (GW) at the end of March, with 3.6 GW secured and 2.8 GW in advanced stages of procurement

Data centres also represented 73% of its $14.5 billion development work in progress.

That gives Goodman a strong position as demand for computing capacity continues growing.

Growth backed by financial strength

Large developments require substantial capital, particularly when Goodman is building facilities with complex electrical and cooling requirements.

I like that the company has several ways to fund its expansion.

Goodman works with major institutional investors through its capital partnerships, allowing it to pursue a larger development program than it could support alone. The group also finished the first half with low gearing and considerable liquidity.

That financial flexibility gives Goodman room to invest while keeping its balance sheet in good shape.

Investors still need to watch development costs, power delays, construction schedules, and customer commitments. The current valuation also assumes that management will continue executing well.

A slowdown in data centre demand or delays across major projects could weigh heavily on the share price.

Would I invest?

My answer is yes. Goodman shares are not a bargain, and I would be comfortable beginning with a measured position rather than investing aggressively at once.

However, the company has spent years building the land portfolio, power access, customer relationships, and development expertise needed to capture the data centre opportunity.

Those advantages cannot be recreated quickly.

Foolish takeaway

I would invest $5,000 into Goodman shares with the intention of holding them for many years.

The current valuation already reflects plenty of optimism, so I would expect periods when the share price becomes volatile.

Even so, I think Goodman has one of the strongest growth runways in the ASX property sector. Its logistics portfolio provides an established earnings base, while data centres could become a much larger part of the business over the decade ahead.

For investors who can accept a modest income yield and focus on long-term growth, I think Goodman shares remain worth buying.

The post Should I invest $5,000 into Goodman Group shares? appeared first on The Motley Fool Australia.

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

Commonwealth Bank of Australia (ASX: CBA) shares have staged a strong comeback, rising around 10% over the past month.

This rally has firmly caught the market’s attention.

After a weak start to 2026, Australia’s largest bank is attracting buyers again.

The question now is whether that recovery has further to run.

As one of the largest companies on the ASX, every twist in CBA’s share price makes headlines.

Why CBA shares are rising again

CBA is one of the largest companies listed on the ASX.

The company dominates Australian retail banking, with a huge deposit base and a market-leading digital platform.

For much of early 2026, its shares were firmly out of favour with investors, and the stock hit a one-year-plus low of $147.22 back in January before the tide turned.

Since then, CBA shares have rebounded strongly to around $171.

Investors now appear willing to look past this year’s housing and budget worries, and cooling fears around mortgage growth and negative gearing changes have helped usher in renewed optimism.

Recent earnings and the road ahead

The rebound has been supported by a solid profit performance.

CBA posted third-quarter cash profit of $2.7 billion, up 4% on the prior year. Lending and deposits both continued to grow despite a softer economy, and home loan funding remained strong, with around $45 billion written in the quarter.

The bank’s capital position remains among the strongest in the sector.

CBA’s next major update is its FY26 full-year result, due in August, a report that will be watched very closely.

Investors want firm proof that earnings can keep growing from here.

Guidance on net interest margins and bad debts will likely be in as much focus as the headline profit number.

What do the numbers say?

Even after this rally, the debate over CBA shares comes down to price.

The stock trades on roughly 26 times forecast FY26 earnings, which is a remarkable multiple for a mature, slow-growing bank.

It is also far above the ratings applied to rivals like Westpac and ANZ.

CBA recently paid a fully franked interim dividend of $2.35, for a trailing yield of around 3.0%. That yield is modest next to several of its big-four peers.

As such, for value-focused investors, CBA’s valuation is the core of the problem.

Are CBA shares still a buy?

Brokers remain deeply cautious on the answer.

In one recent review, all eight analysts covering the stock rated it a sell, with an average price target implying downside of close to 30%.

The bull case rests on CBA’s unmatched quality and its defensive, dividend-paying nature. On the flipside, the bear case points squarely at the stretched valuation.

Both views have real merit at today’s price.

Much will depend on your own time horizon and your appetite for paying a premium.

Foolish takeaway

CBA shares have rallied hard, yet they remain expensive by almost any measure.

The business itself is arguably the highest-quality bank in the country, although the August FY26 result will be an important test for the company.

Income-focused investors can still find far higher yields elsewhere on the ASX, but quality-focused investors may appreciate CBA’s reputation and track record of earnings growth.

As always, it pays to focus on the long term rather than the last month’s move.

The post CBA shares have risen 10% in a month, are they still a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.

The Mercury NZ Ltd (ASX: MCY) share price is in focus after reporting a robust fourth quarter, with trading margin up 33% to $390 million and higher renewable generation volumes compared to the prior corresponding period.

What did Mercury NZ report?

• Trading margin for Q4 was $390 million, up 33% on the same quarter last year.
• Year-to-date (YTD) trading margin rose $269 million to $1,421 million.
• Q4 generation volume climbed 339GWh to 2,344GWh; YTD up 1,163GWh to 9,070GWh.
• Hydrological inflows for Q4 were at the 61st percentile, slightly lower than 79th percentile PCP (YTD: 83rd percentile, up from 12th PCP).
• All turbines at the Kaiwera Downs Stage 2 Wind Farm are now installed, with reliability testing underway.
• Fast-track consent was granted for Puke Kapo Hau Wind Farm, strengthening Mercury’s renewable pipeline.

What else do investors need to know?

Mercury highlighted continued momentum in renewable developments and asset renewals. Notably, the Kaiwaikawe Wind Farm remains on schedule, starting first generation from six installed turbines in July.

The company also launched Flex Rates, a new time-of-use electricity plan, giving retail customers more control over their energy bills. Mercury’s May Geothermal Investor Day showcased its geothermal platform, with more than 1 TWh entering feasibility and $75 million committed to appraisal drilling.

What’s next for Mercury NZ?

Looking ahead, Mercury expects all turbines at Kaiwera Downs Stage 2 Wind Farm to be handed over by the end of August, with the Kaiwaikawe Wind Farm fully operational in the first half of FY27. The company’s wind platform is designed to deliver projects at scale, on time and within budget.

Mercury also plans to continue investing in renewable generation projects and asset renewals, strengthening its position as a leader in 100% renewable energy production across hydro, geothermal, and wind.

Mercury NZ share price snapshot

Over the past 12 months, Mercury NZ shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post Mercury NZ trading margin jumps 33% as renewables drive Q4 result 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 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.