Treasury Wine Estates Ltd (ASX: TWE) shares are climbing higher into the green in morning trade on Wednesday. 

At the time of writing, the shares are up around 0.5% and changing hands for $4.72 a piece.

The latest increase represents around a 39% rebound from a 12-year low recorded in late-March. It’s certainly a step in the right direction, but there is still some way before Treasury Wine Estates can recover losses shed through 2025.

For the year to date, the shares are down around 11% and are 41% lower than this time last year.

Why are Treasury Wine Estates shares rebounding?

After hitting the lowest trading value in over a decade in late-March, Treasury Wine Estates shares finally started rebounding after news that the company had begun trading below what its assets are worth. 

The update encouraged bargain-hunting investors to step in while the shares were trading below fair value.

The rebound picked up pace in late-April when the company announced it is transitioning to a new regional operating model to help improve efficiency.

The move is part of TWE Ascent, Treasury Wine’s global transformation program, which is intended to address the headwinds of recent years and position the business for sustainable growth.

The ASX 200 wine stock will switch to the new regional operating model as of the 1st of October. This will see the company operate four regional divisions. These include, the Americas, ANZ (Australia and New Zealand) combined with Europe, Greater China, and the emerging markets (Rest of Asia, Middle East, and Africa).

Treasury Wine Estates shares climbed even higher in early June. The increase followed an investor day update where the company unveiled its latest turnaround strategy. The transformation plan is expected to help simplify the business and help restore earnings growth.

Key updates included a sharper focus on Treasury Wine’s strongest brands, a review of its Americas business, and plans to target $100 million per year in cost reductions. These cost reductions are expected to be fully realised by FY29.

Management also confirmed FY26 EBITS guidance in the range of $480 million to $490 million.

For FY27, management then expects EBITS to be at least equivalent to FY26 while the company continues to rebalance customer inventory levels in China and the United States.

Investors have been thrilled with the company’s developments over the past three months. The renewed confidence has helped push the shares higher and higher.

What do brokers tip next? Can the shares keep climbing higher?

If broker sentiment is anything to go by, we could see a lot more from Treasury Wine Estates shares this year.

Market Index shows a buy consensus for the shares. And the average $5.20 target price implies a potential 11% upside, at the time of writing.

TradingView data shows that some are even more bullish. Out of 15 analysts, seven have a buy or strong buy rating. Another eight rate the ASX wine stock as a hold.

The average $5.34 target price implies a potential 15% upside ahead, at the time of writing. Meanwhile, the maximum $6.50 target price implies that the shares have the potential to jump another 40% higher over the next 12 months.

The post Treasury Wine Estates shares rebound 39% from 12-year low: Can they keep going? appeared first on The Motley Fool Australia.

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• These ASX shares could be top buys for FY27

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

ANZ Group Holdings Ltd (ASX: ANZ) shares are up around 0.3% in early morning trade on Wednesday, and changing hands for $36.21 a piece.

After a tough start to the year, the bank shares are down around 0.5% for the year-to-date, but they’re still nearly 20% higher than 12 months ago.

Despite ongoing global volatility, interest rate uncertainty, and a slowdown in lending, the banking giant’s shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2% for the year-to-date, and roughly 3% higher than 12 months ago.

Brokers are relatively optimistic about ANZ shares for FY27. TradingView data shows that 7 of 16 analysts have a hold rating on the stock. Another six have a buy or strong buy rating while three have a sell or strong sell rating.

The average $34.91 target price, however, implies a potential 4% downside at the time of writing.

Regardless of where ANZ shares will be in 12 months time, there are a few other reasons I think the ASX bank shares are a screaming buy right now.

Here are three of them

1. Cost saving initiatives are working

As part of the bank’s half-year FY26 financial update, it confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

ANZ has made significant progress reducing costs and simplifying operations, improving its cost-to-income ratio under its ANZ 2030 strategy. 

ANZ’s 2030 cost-saving strategy focuses on simplifying operations, eliminating duplication, and heavily reducing its physical and technological footprint. This includes job cuts, and integration of Suncorp Bank.

2. Earnings are stable and cash flow is growing 

As one of Australia’s major four banks, ANZ is generally considered to have stable earnings and predictable cash flow. The bank has a strong deposit base and a diversified portfolio that means it has defensive qualities.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares spiked higher following the announcement.

The update also followed ANZ’s impressive first-quarter cash profit in February. At the time, it revealed $1.94 billion, up a huge 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

3. The bank pays a great passive income

The bank’s strong performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

Earlier this month ANZ paid its shareholders an 83-cent per share interim dividend payment, franked at 75%. At the time of writing, this translates to a forward dividend yield of around 4.6%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout received an additional 5% franking (previously 70%).

Forecasts suggest that ANZ could pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing that translates to a forward dividend yield of 4.6% for each year.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post 3 reasons why ANZ shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Here’s the dividend forecast out to 2027 for ANZ shares

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 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.

Commonwealth Bank of Australia (ASX: CBA) shares have historically been viewed as a top pick for passive income due to the stability and growth they have delivered to investors.

The banking landscape has changed significantly over the past 10 years, with increasing numbers of borrowers using mortgage brokers and a rising challenge from Macquarie Group Ltd (ASX: MQG).

On the mortgage broker challenger, CBA has a large majority of mortgage flow of borrowers coming through proprietary channels. In other words, it doesn’t rely on mortgage brokers as much compared to other banks like Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

However, Macquarie could put a brake on Commonwealth Bank’s earnings growth, along with the Federal budget taxation changes. Let’s see what it could take to earn $10,000 of passive income from the ASX bank share in FY27.

Projected dividend for FY27

The independent forecast on Commsec suggests the major ASX bank share could hike its annual dividend per CBA share by 1% in FY27 compared to the projected payout for FY26. That possible annual payment could be $5.15 per share for FY27.

At the time of writing, that translates into a grossed-up dividend yield of 4.3%, including franking credits, or 3% excluding the franking credits.

If I were a shareholder, any growth would be better than none. However, 1% growth isn’t even enough to offset typical inflation in a normal year. Of course, a forecast is not guaranteed to come true. Hopefully the ASX bank share can deliver a better outcome than what’s currently projected.

How many CBA shares do I need to make $10,000 of passive income?

Long-term shareholders can be happy with the upcoming potential dividends because they still represent significantly larger payouts than 20 or 30 years ago.

If CBA does indeed pay an annual dividend per share of $5.15 in FY27, then an investor would need to own 1,942 CBA shares to receive $10,000 of passive income. If we’re including franking credits as part of the income goal, then an investor would only need to own 1,360 CBA shares to receive the desired level of passive income.

Is this a good time to buy into Commonwealth Bank? Expert analysts don’t think so. According to Commsec, currently there are 14 sell ratings, two hold ratings and no buy ratings on the ASX bank share. There are a lot of other ASX shares that could be better buys.

The post How many CBA shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200

Motley Fool contributor Tristan Harrison 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.