We’re now a week into the 2027 financial year, though it’s much the same as FY26 so far. Investors may be asking themselves: where should I invest my money in FY27?

The attractiveness of some investments may have changed in the last few months following the Federal budget. Property investors who buy an established residential property can no longer benefit from negative gearing (the losses are carried forward until the property makes a profit), though buyers of new builds can still make use of negative gearing.

The outlook for sizeable capital gains for residential property looks challenging in the short to medium term.

In my view, there are three areas that still make a lot of sense for investors.

Commercial property

Residential properties may have been impacted, but commercial property looks as attractive as ever to me. Commercial properties are normally positively geared, which is great for investor cash flow.

However, I’m not looking to become a property manager. Instead, I believe that high-quality real estate investment trusts (REITs) are a great option to invest my money because I can buy a stake in a portfolio of properties in a single transaction.

Names like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF) offer exposure to quality property portfolios and good distribution yields. As a bonus, they are all trading at large discounts to their last reported net tangible assets (NTA).

High-quality exchange-traded funds

Another area that I think is well worth investing in is exchange-traded funds (ETFs) and listed investment companies (LICs) because of the diversification and returns they can provide over the long-term.

I’d rather invest in international shares than local shares because I’m not sure that ASX blue-chip shares are going to grow earnings materially in the near-term. Major ASX bank shares face headwinds from the property taxation changes, as well as a challenge from Macquarie Group Ltd (ASX: MQG), while African iron ore from new projects could be a headwind for earnings from BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).

In my view, something like the Vanguard MSCI Index International Shares ETF (ASX: VGS) makes a lot of sense because it provides exposure to well over 1,000 shares from the global share market.

But, given the uncertainty of how various intriguing investment trends will play out – AI, data centres, private credit, the lack of fuel and other resources flowing out of the Middle East, and inflation – I think high-quality businesses are best-suited to these conditions.

Over the long-term, I believe ideas such as VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Global Quality Leaders ETF (ASX: QLTY) can outperform the wider global share market, so that could be a great place to invest my money.

ASX shares that can grow earnings

The final place that could be a good area to invest is good ASX shares with solid earnings growth potential.

There are plenty of businesses that could deliver pleasing returns over the long-term as they grow their earnings. The ASX is more than just the largest businesses.

I’m thinking of names like Temple & Webster Group Ltd (ASX: TPW), Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), TechnologyOne Ltd (ASX: TNE), Siteminder Ltd (ASX: SDR), L1 Group Ltd (ASX: L1G), Lovisa Holdings Ltd (ASX: LOV), Wesfarmers Ltd (ASX: WES) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

These aren’t the only names I’d buy to invest my money for my portfolio, there are plenty of exciting options!

The post How should I invest my money in FY27? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Breville Group, Rural Funds Group, SiteMinder, Technology One, Temple & Webster Group, VanEck Msci International Quality ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Macquarie Group, SiteMinder, Technology One, Temple & Webster Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, SiteMinder, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Lovisa, Macquarie Group, Technology One, Temple & Webster Group, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cochlear Ltd (ASX: COH) shares are mounting an impressive comeback.

The hearing implant leader has climbed 11% over the past five trading sessions to $127.86, at the time of writing. That takes its gain over the past month to an impressive 32%. Even so, the healthcare stock remains down 51% year to date after one of the biggest sell-offs seen on the ASX this year.

So, has the worst passed, or is this simply a relief rally?

What do brokers think?

Broker sentiment remains cautious, but few analysts appear ready to give up on Cochlear. According to TradingView data, most brokers currently rate Cochlear shares as a hold. The average 12-month price target sits at $127.33, only slightly below the current share price, suggesting analysts see limited upside in the near term.

Of the 18 brokers covering the company, six rate the stock as either a buy or strong buy. The most optimistic analyst expects the shares to climb another 33% over the next year. At the other end of the spectrum, two brokers recommend selling the stock. The lowest price target sits at $95, implying downside of around 25%.

Bell Potter is among those taking a balanced approach. The broker continues to recommend holding Cochlear shares, arguing the company’s long-term outlook remains attractive thanks to its dominant market position, significant growth opportunity and continued product innovation.

Why did Cochlear shares crash?

To understand the recent rebound, it’s important to remember what caused the sell-off in the first place. On 22 April, Cochlear shocked the market with a disappointing trading update that sparked one of the largest one-day declines on the ASX this year.

Management reported weaker-than-expected demand for hearing implants across developed markets. At the same time, ongoing conflict in the Middle East led to order cancellations and shipment delays, adding further pressure to earnings.

The company also slashed its FY26 underlying net profit guidance to between $290 million and $330 million, well below its previous forecast of $435 million to $460 million. Investors responded swiftly, sending Cochlear shares tumbling by more than 40% in a single session.

Since then, the market has been trying to answer one question: was this a temporary disruption or a sign of a more structural slowdown?

Is the long-term growth story still intact?

Despite the earnings downgrade, Cochlear’s competitive position remains difficult to challenge.

The company controls around half of the global cochlear implant market, giving it a leadership position built on decades of research, innovation and close relationships with surgeons and healthcare providers. Its products are deeply embedded within healthcare systems around the world, creating significant barriers for competitors.

The long-term growth opportunity also remains substantial. More than six million people across developed markets are estimated to be eligible for cochlear implants, yet only around 3% currently receive one. As awareness improves, diagnosis rates increase and technology advances, that penetration rate has considerable room to grow.

An ageing global population is expected to provide another powerful tailwind over the coming decades.

The post Cochlear shares are flying. Is this just the start? 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 positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Endeavour Group Ltd (ASX: EDV) and PLS Group Ltd (ASX: PLS) shares just earned sell ratings from two top stock market analysts.

Now the two S&P/ASX 200 Index (ASX: XJO) stocks have delivered widely different returns over the past year, which leads to different reasoning behind those sell recommendations.

For example, ASX 200 lithium stock PLS– formerly known as Pilbara Minerals – has been on a tear amid surging global lithium prices.

On Monday afternoon, PLS shares were trading for $5.15 apiece. That sees the share price up an eye-popping 254.8% over 12 months.

As for Endeavour, shares in the ASX 200 liquor outlets, hotels and gaming venue owner and operator were changing hands for $3.34 each on Monday. This puts the Endeavour share price down 19.7% over 12 months.

Now I should note that Endeavour did pay 17.1 cents a share in fully franked dividends over the past year. Endeavour shares trade on a fully franked trailing dividend yield of 3.3%.

But that’s not keeping the ASX 200 stock from joining PLS shares on the chopping block.

Time to sell PLS shares?

Catapult Wealth’s Blake Halligan recently analysed the outlook for the ASX lithium producer (courtesy of The Bull).

“PLS Group is a leading Australian lithium producer focused on spodumene concentrate,” he said.

Commenting on the recent strong run higher in PLS shares, Halligan noted:

Over the past three months, sentiment has been driven by a sharp rebound in spot spodumene prices and improving earnings expectations. Stronger spodumene prices are triggering global supply re-starts and expansions.

But following on the big share price gains, Halligan believes investors would do well to take profits on the lithium stock.

He concluded, “The company’s valuation already reflects elevated prices amid supply growth potentially adding pressure on margins.”

Which brings us to…

Time to exit Endeavour shares?

Atop selling PLS shares investors also might want to consider unloading Endeavour shares.

That’s according to Shaw and Partners James Bills.

“Endeavour operates liquor outlets, hotels and gaming facilities,” Bills said.

“It’s navigating a more challenging consumer environment amid cost pressures in fiercely competitive sectors.,” he noted.

Summarising his sell recommendation on Endeavour shares, Bills concluded:

While the company has a strong asset base and market position, we believe near term performance is likely to remain subdued. With limited catalysts for a re-rating, the stock lacks appeal at this stage of the cycle, in our view. The shares have fallen from $4.04 on March 2 to trade at $3.375 on July 2.

The post Sell alert! Why these experts are calling time on Endeavour and PLS shares appeared first on The Motley Fool Australia.

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• Why did ASX 200 lithium stocks like PLS, Liontown and Mineral Resources shares get smashed in June?
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Motley Fool contributor Bernd Struben 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.