ANZ Group Holdings Ltd (ASX: ANZ) shares are almost flat in early morning trade on Tuesday, at $37.88 a piece.

The shares have now rebounded around 12% from an annual low, recorded in early June. 

The June share price dip was the result of a combination of macroeconomic headwinds, including geopolitical volatility, and a sharp crash in global commodity prices. 

Many investors became more concerned about the implications on Australia’s inflation rate, and any consequential interest rate increases. These concerns created market-wide selling pressure.

But thanks to the latest rebound, the shares are now up 4% year to date and 5% higher than this time last year.

Why are ANZ shares rebounding?

Again, it’s down to a combination of factors. 

The ASX bank shares have climbed higher off the back of a solid third-quarter FY26 result, progress of its Suncorp Bank Ltd (ASX: SUN) integration plans, and a general investor rotation away from other ASX bank shares.

As part of its latest trading update in mid-August, ANZ posted a $1.90 billion cash profit, up 1% compared to the first quarter of FY26.

Excluding a provision relating to a New Zealand class action, ANZ’s cash profit increased 5% to $1.98 billion for the quarter.

The company’s Business and Private Banking lending climbed an impressive 4% over the quarter, while net interest income from its core banking operations increased 2%.

Operating expenses also fell 3% (excluding the legal provisions), with management set on achieving a 5% reduction in annual costs.

At the time, ANZ also confirmed that its Suncorp integration is on track, with customer migration scheduled for completion by June 2027. ANZ said it expects the integration to deliver approximately $500 million in annual pre-tax cost savings by FY29.

Meanwhile, higher inflation, interest rate concerns, and a declining property market have put pressure on retail-mortgage-focused banks like Commonwealth Bank of Australia (ASX: CBA).

Of Australia’s big four major banks, ANZ has the smallest exposure to the Australian residential home loan market. Its skew towards business banking exposure means it is often viewed as an attractive alternative to some of its peers. 

The bank is structurally less sensitive to domestic property market headwinds, including higher inflation and interest rate increases. However, it isn’t completely immune. 

Are ANZ shares a buy, sell, or hold now?

It looks like sentiment about the outlook for ANZ shares is mixed.

On Market Index data, the majority of brokers have a hold rating on the bank shares. But the $36.05 target price now implies around a 5% downside ahead, at the time of writing.

Again on TradingView, the experts are divided. The majority (seven out of 16) have a hold rating on the shares, but another six rate the shares as a buy/strong buy, and three more rate the shares as a sell/strong sell.

The same $36.05 target price implies a downside of around 5%, at the time of writing.

However, the difference between the minimum and maximum target prices is huge. Some think the shares could climb 8% to $41 a piece over the next 12 months. Meanwhile, others tip the shares to fall by up to 35%, to just $24.82 apiece at the time of writing.

The post ANZ shares rebound 12% from a 52-week low: Buy, hold, or sell? appeared first on The Motley Fool Australia.

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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.

The Temple & Webster Group Ltd (ASX: TPW) share price has fallen by a huge amount, it’s down by around 80% in the past year, as the chart below shows. I think the opportunity on offer makes it one of Australia’s top shares.

It’s rare for a growing business to fall by that much. Temple & Webster’s revenue may not grow in FY27, but it has a long history of delivering growth.

The current economic environment is tough for households, but I think it’s a rare situation and the decline could be a great time to take advantage.

Let’s run through why I think it’s a strong long-term buy today.

Great revenue opportunity

In its FY26 presentation, the company highlighted that the Australian furniture and homewares market is approximately $19 billion.

Adoption of online shopping has grown significantly since 2019. Over time, I expect Australia’s e-commerce rate to increase towards what’s seen in the UK and the US, which could help Temple & Webster’s market share.

At the latest measurement, Temple & Webster’s market share in Australian furniture and homewares reached 2.9%.

The company sells hundreds of thousands of products and more than half of its revenue is from exclusive products, with 83% of the top 500 selling products in FY26 being exclusive.

Temple & Webster regularly expands its private label range, giving the company more scope to capture more of the value of the sale. Currently, most products ship directly from suppliers to customers, giving Temple & Webster a capital-light business model and, in my view, making it one of Australia’s top shares.

Higher profit margins expected

In the coming years, I’m expecting the business to deliver rising profit margins.

The company is targeting $33 million to $40 million of operating profit (EBITDA) in FY27, while retaining flexibility to use its ‘delivered margin’ and marketing “levers” to respond to market conditions and drive revenue growth.

FY26’s EBITDA margin was 3.3%. The company expects the EBITDA margin to rise to between 5% to 6% in FY27 and reach at least 15% in the long-term.

To achieve that higher profit margin in the longer-term, it expects to achieve a delivered margin of more than 33% (it was 30.2% in FY26), a delivered margin after marketing costs of more than 22% (15% in FY26) and a contribution margin of more than 20% (13.4% in FY26).

If margins keep climbing towards those numbers, I think the company will go some way to justifying itself as one of Australia’s top shares.

Initiatives that should help include a lower fixed cost as a percentage of revenue (thanks to revenue growth), a company-wide approach to AI adoption to boost revenue and lower costs, and an ongoing review of potential cost savings or improved efficiencies.

Additional growth avenues

The third reason to like this business as one of Australia’s top shares is because of the company has found ways to expand its growth potential with additional revenue streams from home improvement, trade and commercial, and New Zealand sales.

In FY26, its home improvement segment saw revenue growth of 39% to $59 million, trade and commercial grew revenue by 16% to $56 million and New Zealand delivered approximately $3 million of revenue in its first eight months (running at a contribution breakeven level).

I don’t know what FY27 holds for those three segments, but I think the long-term looks very promising, particularly for home improvement with how there isn’t a dominant player in that retail sector.

I think it looks cheap now after falling about 80% over the past year, at the time of writing. I’d be very happy to buy Temple & Webster shares.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The fund manager Wilson Asset Management (WAM) has named a couple of leading S&P/ASX 200 Index (ASX: XJO) share picks within the WAM Capital Ltd (ASX: WAM) portfolio.

WAM is looking for the most compelling undervalued growth opportunities in the Australian market. Typically, the investment team at WAM wants to find ideas with a catalyst that can boost the share price.

WAM Capital is a listed investment company (LIC) that is looking further down the market capitalisation list, rather than just the biggest names.

The Wilson Asset Management fund managers picked out a metal detection and communications company and a network-as-a-service provider, both of which contributed to portfolio outperformance during August 2026.

Let’s take a look at why the investment professionals like these businesses.  

Codan Ltd (ASX: CDA)

The first ASX 200 share highlighted by WAM was Codan, an Australian technology company that develops and manufactures metal detection and communications solutions.

The investment team highlighted that the Codan share price rose in September following a trading update in which the company upgraded its FY27 earnings expectations. Management noted stronger-than-expected demand across its communications segment.

Wilson Asset Management noted that conflict-affected regions were a major part of the uplift, accounting for approximately 50% of the FY27 first-half communications segment revenue, up from approximately 20% in the prior corresponding period.

WAM said the ASX 200 share’s metal detection segment also experienced a solid start to FY27, supported by recently launched products and a favourable gold price.

Wilson Asset Management’s investment team concluded its optimistic thoughts on the ASX share:

We remain confident in Codan’s medium-term growth outlook given its exposure to material spending tailwinds in defence globally.

Megaport Ltd (ASX: MP1)

The other ASX share that WAM highlighted was Megaport, a network-as-a-service provider focused on connectivity and compute infrastructure across global data centres.

The investment team noted that Megaport performed strongly amid several positive news stories in September.

Those developments included securing approximately $1 billion in new artificial intelligence (AI) infrastructure contracts and a subsequent upgrade to the guidance for the 2027 financial year.

The three new AI infrastructure agreements increased the company’s combined total strategic contract value to approximately $2.3 billion across the contracts announced since April 2026.

Wilson Asset Management said the company remains well-positioned to grow its customer base, supporting its strategy of reducing overall customer concentration risk.

The investment team concluded:               

We remain positive on the company’s ability to capitalise on growing demand for AI infrastructure.

The post A top fund manager is bullish on these ASX 200 shares appeared first on The Motley Fool Australia.

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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 Megaport. 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.