Author: openjargon

Westpac Banking Corp (ASX: WBC) shares have had a solid start to the year.

The banking giant is up around 4% year to date and hit a record high last week. That kind of momentum tends to attract attention, but it can also raise questions about how much upside is left.

With bank earnings growth expected to remain modest and valuations stretched relative to history, I think investors looking for outperformance in 2026 may want to look elsewhere on the ASX 200.

One name that stands out to me is Breville Group Ltd (ASX: BRG).

A record half in a challenging backdrop

Breville delivered a record first-half result for FY 2026, with revenue climbing 10.1% to $1.1 billion. That marks a doubling of revenue over the past six years, which is no small achievement for a consumer products company.

Importantly, this growth came despite a difficult tariff backdrop in the US. Gross margins dipped to 35.4% due to US tariffs, but the company successfully mitigated much of the impact through manufacturing diversification, pricing actions, and distribution mix optimisation.

By December, 80% of US gross profit was generated from products manufactured outside of China. That shows management is not standing still in the face of geopolitical risk.

Coffee continues to power growth

One of the most attractive parts of the Breville story is coffee.

According to the result, coffee delivered strong double-digit revenue growth, supported by premium new product launches such as the Oracle Dual Boiler and Encore Esp Pro. In the Americas, coffee growth was again in double digits, with very strong demand for flagship machines like the Barista Express.

Coffee is not just a category for Breville. It is a global lifestyle trend. Premium at-home coffee has proven resilient, and Breville has positioned itself at the higher end of the market, where brand and performance matter more than price alone.

That premium positioning is important. It allows Breville to protect margins and maintain pricing power, even when broader consumer spending softens.

Geographic expansion and AI transformation

Beyond coffee, Breville’s growth story is increasingly global.

Direct markets such as China, Korea, Mexico, and the Middle East collectively grew over 50% in the half. While these markets are still relatively small, they represent meaningful long-term optionality.

Management is also leaning into an enterprise-wide AI transformation, embedding artificial intelligence across operations rather than treating it as a one-off pilot. That kind of structural investment could improve efficiency and sharpen decision-making over time.

Why this ASX 200 share could beat Westpac

Westpac is a solid business, but its earnings growth profile is likely to be incremental rather than explosive. With the share price at record highs and trading on a premium, expectations are elevated.

Breville, by contrast, is delivering double-digit revenue growth, expanding globally, investing in innovation, and riding a powerful coffee tailwind. It also remains conservatively leveraged, with net debt improving during the half.

For investors seeking growth rather than yield, I believe Breville has a chance of outperforming Westpac shares in 2026.

The post Here’s an ASX 200 share that I think could beat Westpac in 2026 appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Westpac shares hit new record high on Q1 update
• Westpac posts $1.9bn profit in 1Q26 as digital push and lending gains continue
• What’s going on with ASX bank stocks this week?
• 7 ASX 200 large-cap shares hitting multi-year highs today

Motley Fool contributor James Mickleboro 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.

Income investors don’t have to pick individual shares to tap into Australia’s generous dividend culture.

A handful of ASX ETFs now bundle the market’s biggest dividend payers into a single trade. They offer instant diversification and regular income.

Three ASX ETFs stand out for investors chasing yield without abandoning long-term growth potential.

Let’s take a closer look.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Vanguard Australian Shares High Yield ETF has become a go-to option for dividend hunters. The ASX ETF targets Australian companies with above-average forecast yields, which naturally tilts it toward banks, miners and energy giants.

Heavyweights like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) tend to sit near the top of the portfolio.

That concentration explains why distributions can look very attractive in strong commodity or banking cycles. The yield is typically well above the broader S&P/ASX 200 Index (ASX: XJO) and often boosted by franking credits. At the current share price of $82.65, the yield is 9%.

Growth isn’t the main attraction, but over time capital returns have tracked the performance of Australia’s largest blue chips. This makes it a classic income-first ETF with some upside attached. In the past 12 months, VHY ETF has grown by 8% at the time of writing.

Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)

This smaller ASX ETF takes a slightly different approach. Instead of reaching deep into the market for yield, it stays closer to the ASX 200 and selects companies with strong dividend characteristics.

Banks still dominate, but infrastructure stocks, telcos and established industrials also feature prominently. That tends to smooth volatility compared with more aggressive high-yield strategies. Just 1.3% of the fund is invested in companies in the US and Europe.

The dividend yield is usually lower than the pure high-yield ETFs – 5.6% at current price levels – but investors get broader exposure to the market and a better balance between income and growth. For those who want dividends without drifting too far from the benchmark, this ETF sits in the middle ground.

iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)

The iShares S&P/ASX Dividend Opportunities ESG Screened ETF adds a sustainability filter to the income equation. This $364 million ASX ETF focuses on a smaller group of higher-yielding Australian companies while excluding businesses that don’t meet ESG criteria.

The result is a portfolio that still leans toward banks and established dividend payers, but with different sector weights to traditional high-yield funds. The dividend yield is generally more modest, offering 4.9% at the time of writing. Yet distributions are still competitive, and long-term returns aim to combine steady income with moderate capital growth.

This option appeals to investors who want attractive dividends without chasing the highest-yield. This ASX ETF was the best performing of the three ASX ETFs over the past 12 months, gaining 15% in value.

Foolish Takeaway

Together, these 3 ASX ETFs show there’s more than one way to invest for income on the ASX.

Whether the priority is maximum yield, balance, or a blend of dividends and sustainability, dividend ASX ETFs can play a useful role in building passive income over time.

The post 3 ASX ETFs for investors chasing yield and growth appeared first on The Motley Fool Australia.

More reading

• How I would build an income portfolio that lasts a lifetime
• Recap: Winners and losers from earnings season week 2
• Brokers re-rate CBA and ANZ shares after banks stun the market
• ASX shares with ex-dividend dates next week
• Mining Mammoths: Are Whitehaven Coal, Rio Tinto or BHP shares a buy ahead of earnings results?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An ASX income portfolio should not just generate cash today. It should still be producing income decades from now.

That means focusing on businesses built to last, not simply those offering the highest yield at a single point in time. Diversification also matters. Relying on one sector or one earnings stream can leave income vulnerable when conditions change.

If I were building an income portfolio designed to last a lifetime, here is how I would approach it.

Start with leaders

The foundation for me would be high-quality Australian shares with strong market positions and long operating histories.

Commonwealth Bank of Australia (ASX: CBA) would play a central role. It has consistently delivered strong returns on equity and remains one of the most profitable banks in the country. While bank earnings can fluctuate with economic conditions, CBA’s scale and execution provide a level of confidence in its long-term dividend-paying ability.

BHP Group Ltd (ASX: BHP) shares would add exposure to global commodities and fully franked income. Dividends can vary depending on commodity prices, but BHP’s balance sheet strength and asset quality support meaningful shareholder returns over the cycle.

Add essential services income

I think reliable cash flow businesses also deserve a place in a long-term income portfolio.

Telstra Group Ltd (ASX: TLS) provides exposure to essential telecommunications infrastructure. Demand for connectivity is ongoing, and Telstra’s scale and network advantage support relatively steady earnings and dividends.

Include dividend growth

An income portfolio built to last should not rely solely on mature higher-yield shares. It also needs businesses capable of growing dividends over time.

TechnologyOne Ltd (ASX: TNE) shares fit that role, in my opinion. The company has transitioned to a SaaS model, generating recurring revenue and expanding margins. After a sharp pullback, it offers exposure to long-term growth with the potential for rising dividends as earnings continue to expand.

Similarly, Macquarie Group Ltd (ASX: MQG) adds diversified financial exposure. Macquarie’s earnings can be more variable than those of a traditional bank, but its global operations and capital discipline have supported meaningful dividends over time.

Support the portfolio with broad exposure

Even the strongest companies face unexpected challenges. That is why I would include a broad market ETF to support the portfolio.

Vanguard Australian Shares Index ETF (ASX: VAS) provides exposure to the top 300 Australian shares across multiple sectors. It helps reduce reliance on any single stock while still delivering franked dividend income from the broader market.

The ETF acts as a stabiliser. If one company underperforms, the broader exposure can help smooth overall income.

Why diversification matters

No company, no matter how strong, is immune to change.

By combining banking, resources, telecommunications, software, diversified financial services, and a broad index ETF, this portfolio spreads risk across industries and earnings drivers. That diversification supports income durability over the long term.

Foolish takeaway

An ASX income portfolio that lasts a lifetime is built on quality, diversification, and patience.

Commonwealth Bank, BHP, Telstra, TechnologyOne, Macquarie Group, and the Vanguard Australian Shares Index ETF each serve a different purpose. Together, I think they create a mix of steady income, dividend growth potential, and structural resilience.

The post How I would build an income portfolio that lasts a lifetime appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for investors chasing yield and growth
• Recap: Winners and losers from earnings season week 2
• Buy, hold, sell: Evolution Mining, HomeCo, and Macquarie shares
• Brokers re-rate CBA and ANZ shares after banks stun the market
• 13 ASX 200 shares hit multi-year lows as the market takes a breather

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended BHP Group and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There was plenty to digest last week during the second week of earnings season. 

As always, there were a few surprises, both good and bad, as investors reacted to fresh results. 

Here are some of the important headlines from last week. 

Banks the surprise winner

One of the biggest jumps this earnings season came from ANZ Group Holdings Ltd (ASX: ANZ). 

ANZ reported its 2026 First Quarter Trading Update on Thursday February 12. 

The update included a first-quarter cash profit of $1.94 billion and a statutory profit of $1.87 billion. 

Cash profit jumped 75% compared to the second-half 2025 quarterly average, driven largely by lower expenses and stronger revenue.

This led to an 8% share price jump as investors reacted positively to the news. 

It also prompted several brokers to re-rate ANZ shares. 

It closed last week trading at $40.89, a 52 week high.

Its share price is now up almost 31% over the last 12 months, representing the biggest gain of the big four bank shares.

Commonwealth Bank of Australia (ASX: CBA) also surprised pundits with its 2026 Half Year Results last Wednesday. 

Its share price climbed almost 7% higher on the back of earnings season results. 

It reclaimed its title as Australia’s largest company, and posted statutory net profit after tax of $5.41 billion. 

Cash net profit came in at $5.45 billion,  up 6% on the prior corresponding period.

Overall it rose more than 10% last week. 

Healthcare woes continue

Whilst banks enjoyed a strong week, two of Australia’s largest healthcare stocks crashed on the back of earnings results. 

CSL Ltd (ASX: CSL) posted Half Year Results last Wednesday, which led to a 17% crash by week’s end. 

Things appear to be going from bad to worse for the ASX 200 company. 

A CEO exit and poor results headlined a horror week. 

The company posted an underlying NPATA of US$1.9 billion, which was down 7% on the prior corresponding period. 

Its share price is now down 41% in the last 12 months. 

It was a similar story for Pro Medicus Ltd (ASX: PME) shares. 

Following its HY26 Results last Thursday, its share price retreated 22%. 

For the six months ended 31 December, Pro Medicus reported a 28.4% increase in revenue to $124.8 million. 

Pro Medicus’ underlying EBIT margin increased to 73% from 72% the year prior. 

It’s share price is down 57% in the last 12 months which has attracted some buy-low attention from brokers. 

Another big miss 

Finally, another ASX large-cap company that had a week to forget was Nick Scali Ltd (ASX: NCK). 

It released 1H FY26 results on Friday. 

This sent investors running for the exit, as the share price fell 22% in a single day. 

Many financial results looked solid, however investors may have been reacting negatively to UK business losses.

The post Recap: Winners and losers from earnings season week 2 appeared first on The Motley Fool Australia.

More reading

• Bell Potter names 3 sold-off ASX 200 shares to buy today
• The earnings were awful, but here’s why I’m still holding my CSL shares
• Brokers re-rate CBA and ANZ shares after banks stun the market
• Brokers name 3 ASX shares to buy today
• Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today

Motley Fool contributor Aaron Bell 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Nick Scali, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wanting to take advantage of the recent selloff in pockets of the share market?

Well, Bell Potter thinks the three ASX 200 shares in this article could be in the buy zone after heavy declines. Here’s what it is recommending:

Light & Wonder Inc (ASX: LNW)

Bell Potter continues to rate this gaming technology company as an ASX 200 share to buy.

It highlights that the company has a compelling growth-at-a-reasonable price (GARP) profile relative to peers. It said:

We rate LNW a Buy due to a compelling GARP profile relative to the ASX 100 and ALL (15% discount to EV / EBITA). We expect a continuation in the re-rate observed since the ASX sole listing in November 2025, as long as the company executes on market share gains in its respective markets. We believe LNW’s heightened investment in R&D will drive continued growth, particularly in the Premium leased market.

Bell Potter has retained its buy rating with an improved price target of $230.00 (from $176.00).

Pro Medicus Ltd (ASX: PME)

Another ASX 200 share that Bell Potter rates highly is health imaging technology company Pro Medicus.

Although it fell a touch short with its half-year results, it remains positive and is recommending investors buy the dip. It said:

The ongoing implementation of several major projects is expected to conclude by October 2026 inclusive of an estimated $29m boost to annual recurring revenues from the very large Trinity contract. For this reason we remain confident regarding the ongoing outlook for revenue and earnings growth. Target price is reduced by 25% to $240 following this downgrade and the re-rating now applied to software providers. Retain Buy rating. We believe the current price is an attractive entry point.

Bell Potter has retained its buy rating with a reduced price target of $240.00 (from $320.00).

Temple & Webster Group Ltd (ASX: TPW)

Finally, this online furniture and homewares retailer’s shares are being tipped as a buy.

Although its time as an ASX 200 share could be limited, the broker remains positive. It said:

Our views are unchanged of TPW’s ability to outperform over the long term as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash). Trading at ~1.2x EV/Sales post today’s correction in the share price, we see TPW reverting back to valuation levels in Oct-23 at which time the company was growing revenue at sub20% and see some downside risk priced in the name, however potential for removal from the S&P/ASX 200 Index at the next rebalance in March remains.

Bell Potter now has a buy rating and $13.00 price target (from $19.50) on its shares.

The post Bell Potter names 3 sold-off ASX 200 shares to buy today appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• 13 ASX 200 shares hit multi-year lows as the market takes a breather
• Are Temple & Webster shares a buy after falling 32% yesterday following earnings results?
• 5 things to watch on the ASX 200 on Friday
• Why Pro Medicus shares could rebound over 100%

Motley Fool contributor James Mickleboro has positions in Pro Medicus and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Light & Wonder Inc, Pro Medicus, and 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

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• 3 ASX 200 stocks smashing the benchmark this week
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• GQG shares rise 4% as resilient earnings ease fund outflow concerns
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Motley Fool contributor Sebastian Bowen 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 and Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are wanting some exposure to the smaller side of the market, then it could be worth considering the ASX All Ords stock in this article.

That’s the view of analysts at Bell Potter, who have just slapped a buy rating on its shares.

Which ASX All Ords stock?

The stock that the broker is bullish on is Cogstate Ltd (ASX: CGS).

Bell Potter highlights that this ASX All Ords stock is a highly specialised and leading service provider to over 100 global biopharma customers in the clinical trials industry.

Its core offerings include digital endpoint assessments, clinician training, and central monitoring solutions. The company operates predominantly in Central Nervous System (CNS) conditions, where trial endpoints are more subjective than other disease areas such as oncology.

What is the broker saying?

Bell Potter was pleased with Cogstate’s performance during the first half of FY 2026 and highlights its sizeable revenue backlog.

The good news is that the broker believes there are a number of positive thematics supporting this momentum in the coming years. It explains:

The strong increase in 1H26 new contract sales ($41.7m) resulted in a +$16.0m increase to CGS’s revenue backlog (now $92.3m). We see several positive thematics supporting this momentum in the years ahead, driving our forecasts of 11%/10% revenue growth in FY26/27 and EPS growth of ~21% in FY27.

These thematics include: (1) the number of Alzheimer’s disease clinical trials is expected to continue growing over the coming years; (2) CGS diversifying revenue across a variety of CNS indications beyond Alzheimer’s; (3) leveraging the Medidata strategic collaboration to drive new sales opportunities; and (4) remaining one of few fully independent providers not tied to a global CRO following recent M&A activity in the sector.

Big potential returns

According to the note, the broker has initiated coverage on the ASX All Ords stock with a buy rating and $2.90 price target.

Based on its current share price of $2.17, this implies potential upside of 34% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We re-initiate coverage of CGS with a BUY recommendation and $2.90 PT. Cogstate is a highly profitable company (~19% NPAT margin) trading on attractive multiples relative to domestic and global peers. The forward EV/EBITDA of ~11x is well below the domestic peer average of >20x and below the global CRO avg of ~14x, notwithstanding its attractive growth outlook.

Our PT is comfortably supported by the DCF valuation (9.0% WACC, 3.0% TGR). Considering the recent pull back across software and speculative healthcare names, CGS provides a compelling investment case by virtue of its existing profitable business, attractive valuation, and multiple positive thematics.

The post Bell Potter just initiated coverage on this exciting ASX All Ords stock with a buy rating appeared first on The Motley Fool Australia.

More reading

• Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher

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

Are you hunting more investment ideas? If you are, it could be worth checking out what Morgans is saying about these popular ASX shares.

Let’s see if the broker thinks they are buys, holds, or sells right now:

Evolution Mining Ltd (ASX: EVN)

This gold miner has been given a hold rating and $14.50 price target by Morgans following its half-year results.

The broker highlights that a slightly softer profit was offset by a larger than expected dividend. It explains:

1H26 result: no major earnings surprises with a small underlying NPAT miss more than offset by a strong dividend beat of 20cps (+6%/+17% vs MorgansF/consensus). Key positives: dividend beat and approval of major projects and studies at Northparkes and Ernest Henry, which are expected to underpin production and throughput across both assets in the medium-to-long-term. Key negatives: there weren’t any. Our adjusted EBITDA forecasts for FY26/FY27/FY28 are -2%/+1%/+1%, respectively. We Maintain a HOLD rating with a A$14.50ps target price.

HomeCo Daily Needs REIT (ASX: HDN)

Morgans was pleased with this REIT’s performance during the first half of FY 2026.

So, with its shares trading at a deep discount to net tangible assets (NTA) and offering a big dividend yield, it has retained its accumulate rating (between hold and buy) with a $1.40 price target. It said:

HDN delivered a consistent set of results, with property fundamentals seeing NOI growth at +4.6% (vs pcp) and NTA growth of 5.4% (vs Jun-25). However, higher rates and increased debt saw FFO growing a more modest 2.8% – a trend we expect to continue as the business navigates potentially higher rates. Given HDN is trading at a 17% discount to NTA, with a 6.7% distribution yield (FY26), there is cause to see value. However, it appears FFO growth greater than inflation may remain elusive for the medium term. On this basis, we retain our Accumulate rating with a $1.40/sh price target.

Macquarie Group Ltd (ASX: MQG)

This investment bank released its third-quarter update this week and Morgans felt it was a solid report.

However, it hasn’t seen enough to change its recommendation. It has maintained its hold rating on Macquarie’s shares with an improved price target of $223.00. The broker said:

MQG has hosted its annual operational briefing, together with releasing its 3Q26 update. On the 3Q26 update, we saw this as a solid performance overall, benefitting from market-facing businesses (CGM and Macquarie Capital) seeing results “substantially up” on the pcp. Additionally, there was an underlying upgrade to CGM guidance, albeit this has been offset, to some degree, by an expected higher FY26 tax rate. We lift our MQG FY26F/FY27F EPS by +2%/+4% reflecting the more positive CGM commentary, blunted somewhat by higher expected tax. Our target price rises to ~$223 (from A$214). We maintain our HOLD recommendation.

The post Buy, hold, sell: Evolution Mining, HomeCo, and Macquarie shares appeared first on The Motley Fool Australia.

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• Invest $20,000 in these 4 ASX shares and get $1,000 passive income
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the most controversial earnings reports we have seen so far this season has been from ASX 200 healthcare share and former market darling CSL Ltd (ASX: CSL). CSL dropped its latest earnings, covering the six months to 31 December 2025, on Wednesday of this week. And boy, did they disappoint.

It’s not hard to see why. CSL reported revenues of US$8.3 billion, a drop of 4% over the same period last year. Reported net profits after tax (NPAT) tanked by a horrid 81% to US$401 million, while underlying profits fell 7% to US$1.9 billion. The company maintained its interim dividend at US$1.30 per share. Investors were not encouraged by the sudden resignation of now-former CSL CEO Dr Paul McKenzie the night before these results came out.

All in all, it was a disastrous earnings report for CSL. The company’s shares have now crashed 16.7% since Monday’s close. The $150-levels we are now seeing represent more than a 50% dive from CSL’s all-time 2020 highs of over $340 per share, and are the lowest the stock has traded at since early 2018.

CSL shares plunge, but is all hope lost?

I, perhaps unfortunately in hindsight, own CSL shares myself. I am obviously not too impressed with the company’s recent performance. Saying that, I am not selling out of my holdings yet. In fact, I think these earnings were not as disastrous as the market is assuming.

Yes, CSL is certainly in the midst of a rough patch. However, I think the headwinds it is facing are temporary. For example, the company is being hurt by the current US administration’s negative views on vaccines. Yet this may pass after the next American presidential elections in 2028. CSL remains one of the world’s largest and most dominant healthcare companies and possesses a wide economic moat. I don’t see any long-term threats to its blood plasma medicines business.

Additionally, the company’s balance sheet and cash flow remain strong. This is evidenced by its decision this week to extend its share buyback scheme from US$500 million to US$750 million. Given that CSL shares are currently at an eight-year low, this should provide significant value for existing investors going forward.

Foolish takeaway

I am not pleased with CSL’s recent performance, and the tenure of former CEO Paul McKenzie was a disaster. However, I think CSL is not permanently damaged and can work its way back to its former glory. I have still put the company on notice in my own portfolio, and am prepared to sell out if CSL continues to make missteps. But I think its restructing and ongoing share buybacks going forward will prove to be a turning point in hindsight. Let’s see how the rest of 2026 treats this ASX 200 healthcare stock.

The post The earnings were awful, but here’s why I’m still holding my CSL shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: James Hardie, CSL, and CBA shares
• Why CSL shares could be trading at a 94% discount today
• Here’s an ASX 200 share that I think could beat CSL in 2026
• Why AMP, CSL, Pro Medicus, and Temple & Webster shares are crashing today
• Are CSL shares a buy after this week’s brutal selloff?

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

Several top brokers have re-rated Commonwealth Bank of Australia (ASX: CBA) and ANZ Group Holdings Ltd (ASX: ANZ) shares after the major banks stunned the market with their earnings reports this week.

On Friday, CBA shares continue to ride the momentum generated by the bank’s 1H FY26 report, released on Wednesday.

The CBA share price lifted 0.29% to an intraday high of $179.27 apiece this morning.

But the stock reversed course this afternoon, with CBA shares currently 1.9% lower for the day at $175.42.

ANZ shares have had a topsy-turvy day, rising 1.5% to a record $40.95 this morning before pulling back to $40.75 currently, up 1%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 1.4% to 8,914.30 points as the rest of the market takes a breather.

Let’s find out what the brokers thought of these banks‘ reports, and how their ratings and 12-month share price targets have changed.

CBA shares: How are they rated now?

CBA surprised analysts and investors alike with a 6% increase in cash profit to $5.45 billion for 1H FY26.

The bank declared a fully-franked interim dividend of $2.35 per share, up 4% from 1H FY25.

CBA’s net interest margin (NIM) was 2.04%, steady on an underlying basis, and return on equity (ROE) was 13.8%, up 0.1%.

The results led to CBA reclaiming its title as the No. 1 ASX 200 share by market cap from BHP Group Ltd (ASX: BHP) on Thursday.

CBA shares took the title from BHP in July 2024, and BHP shares snatched it back last month.

CBA CEO Matt Comyn said:

Our balance sheet settings remain resilient with strong levels of capital, deposit funding and provisioning given the economic backdrop and geopolitical issues.

Our financial position enables us to support lending growth, continue investing to accelerate our technology modernisation agenda and enhance our GenAI capability, and help combat fraud, scams, cyber threats and financial crime.

We continue to watch the competitive intensity and its implications across the financial system.

We are well placed to compete effectively and will continue to adjust our settings as appropriate.

Here at The Fool, we reviewed the ratings of seven analysts tracking CBA shares on Friday.

They have all reiterated their sell ratings on CBA shares.

Some have lifted their 12-month price targets, but those targets are nowhere near where CBA shares are trading today.

Jeffries raised its price target from $139.60 to $143. Citi lifted its target from $137 to $140.

Morgan Stanley raised its price target from $131 to $140. UBS raised its target from $125 to $130.

Ord Minnett has a target of $120, while Macquarie’s is $124.

Morgans raised its CBA share price target from $99.81 to $124.26.

In a note, the broker said:

CBA delivered a meaningful beat of 1H26 earnings expectations.

We have materially upgraded our EPS forecasts after factoring in continuation of higher loan growth and benign credit loss environments.

What about ANZ shares?

ANZ also surprised the market by announcing a $1.94 billion cash profit for 1Q FY26 yesterday.

That was 75% higher than the 2H FY25 quarterly average, indicating that new CEO Nuno Matos is doing something right.

The strong profit was driven by higher revenue and lower expenses.

The operating income was $5.7 billion, up 4% on the 2H FY25 quarterly average, while operating expenses fell 21% to $2.8 billion.

Matos said:

The quarterly result highlights the early progress we are making in executing our ANZ 2030 strategy.

Our productivity program aimed at removing duplication and simplifying the bank is well underway, delivering a significant reduction in expenses while growing revenue.

Looking ahead, we continue to be fully engaged in executing our ANZ 2030 strategy.

This is the beginning of our five-year journey to become the best bank for customers and shareholders in Australia and New Zealand.

We found a mixed bag of ratings from seven analysts covering ANZ shares on Friday.

Morgan Stanley upgraded its rating on ANZ shares to a buy with a 12-month target of $36.30.

Morgans downgraded its rating from trim to sell and increased its target slightly from $32.57 to $32.65.

The broker said:

On face of it, the 1Q26 trading update suggested ANZ was tracking ahead of 1H26 growth expectations.

However, the beat was driven mostly by the speed of cost-out and will unlikely affect consensus expectations as ANZ retained its FY26 cost guidance of c.$11.5bn.

We estimate ANZ is trading on 1.8x P:TBV, 16x PER, and 4.1% cash yield (partly franked), all stretched against historical trading ranges.

The remaining analysts reiterated their previous ratings, with some adjustments to price targets.

Citi maintained a buy rating on ANZ with a share price target of $40.30.

Ord Minnett has a sell rating with a price target of $33.

UBS is also sell-rated but lifted its target from $35 to $36.50.

Jefferies kept its hold rating on ANZ shares with a price target of $34.55.

Macquarie also recommends holding the ASX 200 bank share with a price target of $37.

Despite the increases on some price targets, ANZ shares are trading ahead of even the most optimistic valuations.

The post Brokers re-rate CBA and ANZ shares after banks stun the market appeared first on The Motley Fool Australia.

More reading

• ASX shares with ex-dividend dates next week
• Buy, hold, sell: James Hardie, CSL, and CBA shares
• What’s going on with ASX bank stocks this week?
• Here are the top 10 ASX 200 shares today
• 7 ASX 200 large-cap shares hitting multi-year highs today

Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has positions in and 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.