Commonwealth Bank of Australia (ASX: CBA) shares remain one of the most widely held investments on the ASX.

The bank last traded around $161.14, which places it around the middle of its 52-week range of $146.98 to $185.59. That means investors are currently looking at a share price that is below recent highs, but still far from distressed levels.

So the question is simple: should investors buy, hold, or sell CBA shares in July?

My view is that CBA is a buy.

Why I still like CBA

CBA continues to stand out as the highest-quality bank in Australia, in my view.

It has a dominant retail franchise, a very large and stable deposit base, and a strong digital banking platform that supports customer retention and efficiency. These are not new advantages, but they are the kind that tend to compound over long periods.

Banking is a competitive industry, but scale and trust still matter. I think CBA has both in abundance.

Even in a more uncertain economic environment, customers still need mortgages, transaction accounts, savings products, credit cards, and business banking services. CBA sits at the centre of that system.

Earnings and valuation

According to CommSec consensus estimates, CBA is expected to generate earnings per share of $6.54 in FY26 and $6.72 in FY27.

Based on the current share price of $161.14, that puts the bank on a price-to-earnings ratio of around 25 times FY26 earnings and 24 times FY27 earnings.

That is not a cheap valuation. However, I think it is important to separate valuation from quality. CBA consistently trades at a premium because investors are willing to pay for stability, profitability, and lower risk compared to other banks.

In that context, I think the valuation is justified rather than extreme.

Income appeal

CBA also remains attractive for income-focused investors.

While its dividend yield is not the highest in the banking sector, CBA’s dividends are typically supported by strong earnings and a conservative approach to capital management.

That combination of income and safety is a key reason many investors continue to hold the stock even after strong share price performance in recent years.

Key risks

No investment is without risk, and CBA is no exception.

The biggest risks remain around housing market conditions, credit quality, regulatory pressure, and the broader economic cycle. If unemployment were to rise significantly or property prices were to weaken materially, bank earnings would likely come under pressure.

There is also the risk that investors are already paying a premium for quality, which could limit near-term capital upside.

Foolish takeaway

I think CBA shares are a buy in July.

The valuation is not cheap, but I think it is fair for the quality of the business. CBA remains the dominant banking franchise in Australia, with strong earnings power, a reliable deposit base, and a long track record of navigating different economic cycles.

For long-term investors, I think it remains one of the most dependable ASX shares to own.

The post Should I buy, hold, or sell CBA shares in July? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

CSL Ltd (ASX: CSL) has endured one of the most turbulent periods in its recent history. CSL shares are up around 25% over the past month, but still sit roughly 51% lower over the past 12 months.

That sharp rebound raises an obvious question: is this the start of a recovery—or just a temporary relief rally in a longer downtrend?

How did we get here?

Not long ago, CSL shares were viewed as one of the most reliable compounders on the ASX. It built its reputation on steady earnings growth, dominant global positions in plasma-derived therapies, and a track record of rewarding long-term shareholders.

But sentiment has shifted sharply. A combination of earnings downgrades, leadership transition, and roughly US$5 billion in non-cash impairments tied to the CSL Vifor acquisition has weighed heavily on confidence.

The result has been a share price collapse of more than 50% over the past year.

A strong business under pressure

Despite the price weakness of CSL shares, the underlying business remains highly defensive.

CSL is still the world’s second-largest plasma-derived therapies company. It operates in an industry with high barriers to entry, strict regulatory requirements, and long-established supply chains. These structural advantages are not easily replicated, even by well-funded competitors.

CSL’s latest update offered a clearer picture of current conditions. The company now expects FY26 revenue of approximately US$15.2 billion and underlying net profit after tax and amortisation (NPATA) of around US$3.1 billion, on a constant currency basis.

While these figures reflect continued growth, they also highlight near-term margin pressure and execution challenges.

The key pressure point

The biggest issue remains the US immunoglobulin business within CSL Behring. Demand continues to grow at a healthy mid-to-high single-digit rate, which is broadly in line with expectations.

However, supply constraints and pricing dynamics mean the healthcare company is not fully capturing that demand growth in real time. That timing mismatch has weighed on earnings momentum and investor sentiment on CSL shares.

What do analysts think?

Broker views are split. Morgans remains constructive on CSL shares, retaining a buy rating with a price target of $147.59, implying around 25% upside from current levels.

The team at Macquarie Group Ltd (ASX: MQG), however, is more cautious. It has a lower price target of $114 and maintains a neutral stance, citing uncertainty across CSL’s core plasma and albumin businesses, as well as ongoing competitive pressures.

Foolish takeaway

The debate now centres on timing rather than business quality. CSL remains a dominant global healthcare franchise with long-term structural advantages. But near-term earnings visibility is unclear, and investors may need patience before a sustained recovery takes hold.

Management has pointed to FY27 as a key inflection point. This is supported by leadership changes and expected improvements in the Behring division. For now, CSL sits in an awkward middle ground: a high-quality business going through a difficult reset.

Whether the recent rally of CSL shares marks the beginning of recovery—or just another bounce in a downtrend—will likely depend on what FY27 delivers.

The post CSL shares are up 25%: is it time to buy, hold or sell? 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 CSL and Macquarie Group. The Motley Fool Australia has recommended CSL and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and delivered total returns, including dividends, of 7% in FY26. 

The benchmark index hit a record 9,202.9 points on 26 February before finishing the year at 8,778.7 points on 30 June.

There are 11 market sectors within the ASX 200.

In this article, we name the top-performing shares by capital growth in each market sector. 

No. 1 shares of the ASX 200 market sectors 

These were the No.1 shares of each market sector based on 12-month share price growth (excluding dividends).

We have listed the sectors from strongest to weakest.

Six of the 11 sectors declined in value last year. 

Materials

The ASX 200 materials sector was the best performer by far. 

The S&P/ASX 200 Materials Index (ASX: XMJ) soared 47.48% and produced total returns of 52.11% in FY26. 

Australia is in the midst of a new mining boom with five key factors driving a new commodities supercycle.

The green energy transition, artificial intelligence (AI) build-out, and central banks diversifying their reserves with gold drove strong commodity price rises in FY26.

The best performing share within the ASX 200 materials sector was gold explorer, Minerals 260 Ltd (ASX: MI6).

The Minerals 260 share price ripped 508% to finish at 73 cents per share on 30 June. 

Consumer Staples

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) rose 10.09% and delivered total returns of 13.72%. 

Woolworths Group Ltd (ASX: WOW) was the top-performing consumer staples share of the year.

The Woolworths share price rose 28.67% to $40.03 in FY26.

Energy

The S&P/ASX 200 Energy Index (ASX: XEJ) rose 9.37% and delivered total gross returns of 14.51%.

ASX 200 coal  producer New Hope Corporation Ltd (ASX: NHC) recorded the strongest share price growth.

New Hope Corporation shares increased 44.32% to finish the year at $5.34 per share.

Utilities

The S&P/ASX 200 Utilities Index (ASX: XUJ) rose 5.89% and delivered a total return of 11.87%.

Energy infrastructure company APA Group (ASX: APA) was the best performer of the utilities sector. 

The APA Group share price ascended 24.11% to finish FY26 at $10.14.  

Industrials

The S&P/ASX 200 Industrials Index (ASX: XNJ) edged 1.69% higher and produced total returns of 5.24%.

ASX 200 defence share Electro Optic Systems Holdings Ltd (ASX: EOS) recorded the highest capital growth.

The Electro Optic Systems share price soared 261% to finish the year at $10.30. 

Financials

The S&P/ASX 200 Financials Index (ASX: XFJ) fell 1.89% in value, but dividends lifted the total return into the green at 1.69%. 

New Zealand-based infrastructure investment company, Infratil Ltd (ASX: IFT) was the best performer of the financials sector.

The Infratil share price lifted 28.8% to finish the year at $12.61.

Consumer discretionary

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) fell 3.56% and produced a total negative return of 1.21%.

The Eagers Automotive Ltd (ASX: APE) share price experienced the most growth in the consumer discretionary sector. 

The Eagers Automotive share price rose 21.83% to finish the year at $21.26. 

Real estate & REITs

The S&P/ASX 200 Real Estate Index (ASX: XPJ) dropped 5.32% and delivered a total negative return of 2.24%.

Property fund manager Charter Hall Group (ASX: CHC) outshone its property sector peers.

The ASX real estate investment trust (REIT) rose 19.12% to $22.66 on 30 June. 

Communications

The S&P/ASX 200 Communications Index (ASX: XTJ) tanked 12.4% and delivered a negative total return of 9.41%.

Telco stock Aussie Broadband Ltd (ASX: ABB) rose the most in FY26. 

The Aussie Broadband share price ripped 26.09% to $4.93 on 30 June.

Technology

The S&P/ASX 200 Information Technology Index (ASX: XIJ) dove 37.22%, with a total negative return of 36.97% in FY26. 

Codan Ltd (ASX: CDA) shares outperformed in the technology sector last year.

The Codan share price screamed 119.49% higher to $44.14 on 30 June.

Healthcare

Healthcare was the worst-performing sector of FY26.

The S&P/ASX 200 Health Care Index (ASX: XHJ) tumbled 37.4% and delivered a negative total return of 36.15%.

The 4DMedical Ltd (ASX: 4DX) share price was absolutely unstoppable in FY26. 

Shares in 4DMedical skyrocketed 1,786% to $4.53 on 30 June. 

The respiratory imaging tech company was not only the shining star of the healthcare sector.

It was also the No. 1 stock for capital growth overall in FY26.

 

The post Top ASX 200 share of each market sector in FY26 appeared first on The Motley Fool Australia.

More reading

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• How to get started with a portfolio delivering $500 a week in passive income
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• 5 best-performing ASX 200 shares of FY26

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