Author: openjargon

Zip Co Ltd (ASX: ZIP) shares have fallen more than 50% over the past year, but according to the analyst team at UBS, it could be time to buy the dip.

UBS has a buy rating on Zip shares and a very bullish share price target, which I’ll get to shortly.

First, let’s have a look at their most recent trading results to see how they’re doing.

Share falls depsite record trading results

Zip in mid-August reported total income of $1.35 billion, up 24.6% on FY25, and record cash EBTDA of $268.9 million, up 57.9%.

The company’s total transaction volume (TTV) increased 27.2% to $16.7 billion, while the volume in the US market grew 42.5%.

Net bad debts increased from 1.52% to 1.77% in line with management’s expectations.

Zip Chief Executive Officer Cynthia Scott said it was a strong result.

She added:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model. Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

Ms Scott said the company was targeting cash earnings of $340 million in FY27, which would be a 26% increase.

Importantly, in the US market, the company said that the majority of TTV “continued to be derived from predominantly non-discretionary expenditure, with health, education, auto and transport the fastest growing categories”.

Broker sees Zip shares as cheap

UBS said this was a key strength of the company.

As they said:

Whilst we are watching macro risk, we see these concerns overplayed given Zip’s exposure to non-discretionary spend in the US, and slowing macro potentially catalysing growth in the buy now pay later space as consumers consider non-traditional cash flow management tools over traditional credit.

UBS said they had made minimal adjustments to their outlook for the company, outside of a 1% reduction in expected cash earnings due to another likely interest rate increase in both Australia and the US.

The broker said Zip was trading on a forward price-to-earnings (P/E) ratio of 15 times, which set it up well to achieve a compound annual growth rate in the high teens.

UBS has a price target of $4.40 on Zip shares, compared with the current $2.24.

The post Down more than 50%, are Zip shares too cheap to ignore? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

Tuas Ltd vs Temple & Webster Group shares

If you’re weighing up Tuas Ltd (ASX: TUA) against Temple & Webster Group Ltd (ASX: TPW), you’re probably searching for deep value – after all, both shares have crashed over 65% year to date. While they live in entirely different industries (telecommunications for Tuas and online retail for Temple & Webster), this level of sell-off could have left one or both looking like bargains. Let’s compare their business models, recent results, and what stands out before I give my verdict on which might be the better value buy.

The case for Tuas

Tuas operates a mobile telecommunications network and provides mobile services, focusing on the Singaporean market. Headquartered in Sydney and founded in 2020, it’s a newer player, targeting SIM-only value plans in a highly competitive sector. Its lean operating footprint helps keep costs low.

Notably, Tuas:

• Has a market capitalisation of $907.60 million, the larger of the two companies in this comparison.
• Trades on a P/E ratio of 30.99 with earnings per share of $0.048.
• Has a 0% dividend yield, so you won’t get any income return at current prices.

The company appears growth-focused and is not aimed at income investors just yet.

The case for Temple & Webster

Temple & Webster is an online-only retailer specialising in furniture and homewares. Its huge web-based offering, including office furniture, lighting, and home décor, sets it apart from physical retailers. According to its most recent public description, the company offers a wide product range (over 200,000 items) and a strong online subscriber base, building scale since its 2011 founding.

For Temple & Webster:

• Market cap sits at $517.47 million – notably less than Tuas.
• Its shares command a hefty P/E ratio of 127.95, and earnings per share sit at $0.035.
• Like Tuas, Temple & Webster doesn’t currently pay a dividend.

Valuation comparison

Here’s how the fundamentals stack up side by side:

Metric	Tuas	Temple & Webster
Market Cap	$907.60 million	$517.47 million
P/E Ratio	30.99	127.95
Earnings per Share (EPS)	$0.048	$0.035
Dividend Yield	0.00%	0.00%
Year To Date Return	-76.59%	-67.54%

It stands out to me that Tuas now trades on a much lower P/E ratio than Temple & Webster – 30.99 vs 127.95. This suggests investors demand far more growth from Temple & Webster and are willing to pay up for its potential, despite both companies posting profits. Neither pays a dividend at present.

Recent share price momentum

Comparing recent share price performance up to 9 October 2026:

• Tuas closed at $1.66, essentially flat over its last two trading sessions, and down sharply over the year (YTD return: -76.6%).
• Temple & Webster closed at $4.44, having gained 4.5% on the day, but still deep in the red for 2026 (YTD return: -67.5%).

Which is the better buy?

If I’ve got to pick between two shares smashed more than 65% this year, my pick would be Tuas. There are a few reasons for this call. While both still look risky and could have question marks about their future growth, Tuas trades at a far lower P/E multiple than Temple & Webster. That means, for every dollar of earnings, you’re paying a lot less for Tuas than for Temple & Webster – and both have posted profits in the latest data. Neither stock is paying a dividend, so income-seekers won’t find a winner here.

Temple & Webster has that classic high-growth online retailer story, and sometimes those stories come with extreme valuations. Right now, that shows up as a P/E of nearly 128, versus about 31 for Tuas. Unless Temple & Webster can accelerate earnings growth sharply from here, I’m wary of buying at that kind of multiple after a big fall.

Both shares carry risk, but on valuation grounds, Tuas looks like better value right now. If I had to choose where to hunt for a deep-value rebound, I’d lean toward Tuas.

The post Tuas vs Temple & Webster: Which beaten-down ASX share offers better value? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Megaport Ltd (ASX: MP1) has quickly become one of the most exciting growth shares on the ASX.

Its expansion into artificial intelligence (AI) infrastructure has opened up an enormous new market, and recent contract wins suggest the opportunity could be much bigger than investors previously imagined.

But with the shares already enjoying a strong rally, how much upside could still be ahead?

Could a $10,000 investment in Megaport shares today realistically grow to $20,000 by 2030?

A business with much bigger ambitions

The first reason I think Megaport shares have the potential to double is how dramatically its business has changed.

Megaport originally made its name by helping businesses connect to cloud providers and data centres through its global network.

That remains a valuable business, particularly as companies continue moving more of their operations online and need reliable connections between different systems.

But the acquisition of Latitude.sh has taken Megaport into a much larger growth market.

Latitude.sh provides GPU and CPU computing infrastructure, along with networking and storage, allowing customers to run demanding AI workloads.

This gives Megaport direct exposure to the computing power required as artificial intelligence becomes more widely adopted.

And the early results have been impressive. Since April, Megaport has announced approximately $2.3 billion worth of strategic AI infrastructure contracts.

Those agreements have helped lift the company’s pro forma annual recurring revenue to around $1.1 billion, although not all of that revenue is being billed yet.

For me, this is an important development. Megaport has moved beyond demonstrating that demand exists. It now has substantial contracted business to deliver.

What could Megaport look like in 2030?

AI adoption is still developing, and the demand for computing infrastructure could grow substantially as more businesses put AI applications into everyday use.

Megaport is positioning itself to benefit from that spending through Latitude.sh, while its original connectivity business can continue expanding alongside the broader cloud computing market.

The combination could make Megaport a much larger digital infrastructure company by the end of the decade.

We are already seeing how quickly its financial outlook is changing. Following its latest contract wins, Megaport upgraded FY27 revenue guidance to between $720 million and $810 million, with an expected EBITDA margin of 42% to 44%.

If the company delivers on those expectations and maintains strong momentum into FY28, FY29, and FY30, I think its earnings could look significantly different in a few years.

That would provide a foundation for further share price growth.

Could $10,000 in Megaport shares really become $20,000?

Using the recent Megaport share price of approximately $19.69, the shares would need to reach $39.38 for a $10,000 investment to double, excluding costs.

That is an ambitious target, particularly after the company’s recent rally. But I do not think it is beyond reach by 2030.

For that to happen, Megaport would need to successfully convert its existing contracts into revenue and profits, continue winning new customers, and demonstrate that its AI infrastructure business can deliver attractive returns. I would also want to see strong growth continuing beyond the current wave of contracts.

There are risks here. Building AI infrastructure requires substantial capital investment. Megaport is planning to spend between $1.78 billion and $1.88 billion in FY27, reflecting the scale of its expansion.

It also faces rapidly changing technology, competition, and the possibility that AI infrastructure demand develops differently from current expectations.

With so much growth already anticipated, disappointing execution could have a significant impact on the share price.

Foolish takeaway

I think Megaport shares have a realistic chance of doubling by 2030, although I would not treat that outcome as a certainty.

The company has secured a significant foothold in AI infrastructure, and I believe the next few years could see the business grow considerably.

There is still plenty to prove, but if Megaport can turn its growing contract pipeline into sustained earnings and cash flow, I would not be surprised to see the shares trading near $40 before the decade is over.

The post Could $10,000 invested in Megaport shares double by 2030? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

This time last week, Firmus Technologies was gearing up to launch the biggest ASX initial public offering (IPO) in 30 years.

On the back of the artificial intelligence (AI) boom and Space X‘s Nasdaq listing earlier this year, it was being sold as the biggest ASX listing in a generation. With little opportunity to invest in the local market, ASX tech enthusiasts faced a rare opportunity.

Firmus’ broker syndicate had told prospective investors that early indications of interest were well above the offer size. They said that more than half the raise would likely go to existing investors. This implied that there would be very little left for retail investors to participate. In other words, most would miss out.

By Thursday morning, the narrative began to swiftly change.

First came news of repricing. As institutional enthusiasm began to dwindle, it was revealed that the offer price had been reduced. Initially from $11 to $9, then $8.25. According to the Australian Financial Review, a figure as low as $6 was considered. This represented a nearly 50% decline from the starting offer price in less than 24 hours.

Not long after, Bloomberg News broke the news that the IPO had been cancelled. Several other news organisations quickly confirmed it.

The blame game then began. What would happen to Firmus now? How could things go so wrong so quickly? 

Many echoed the sentiment of long-time Firmus backer David Paradice, Managing Director of Paradice Investment Management, who was puzzled as to how demand could evaporate so quickly.

According to the Australian Financial Review, he said:

We were told there were massive bids coming out of America, which clearly never eventuated. There was a big difference between what the underwriters were saying and the outcome.

At least two major groups of stakeholders will come off most bruised. Of course, the founders and existing investors who stood to book an enormous profit, should the IPO have gone ahead at $11. However, the broker syndicate will also have a lot to answer for. At the very least, there will be reputational damage and lost fees.

While plenty of stories will be written about the losers of the abandoned Firmus IPO, we should take a moment to mention the group of investors who have most certainly come out on top.

A victory for retail investors

When investing alongside insiders and institutional investors, retail investors often feel like they are at a disadvantage. Not just because they lack professional expertise, but also because they feel they have an information handicap. 

In the case of IPOs, this is often magnified. The Firmus listing was no exception. 

In fact, Ten Cap portfolio manager Jun Bei Liu described the Firmus IPO as “probably one of the most polarising IPOs [she has] ever seen”, and noted that “the lack of detail they disclose [was] unprecedented.”

Companies like Firmus, with little operating history, are difficult to value. Without adequate disclosure in other areas, it brings a whole other layer of challenge.

This makes it even harder for retail investors to decide whether to participate. 

According to the Australian Financial Review, Firmus’ targeted valuation of $43.7 billion on FY26 and its operating revenue of around $70 million implied a price-to-revenue of around 860 times!

For context, SpaceX listed at a price-to-revenue multiple of 94 times, which was widely considered as lofty.

By pulling the IPO, retail investors were spared from having to value Firmus and decide whether it was worth the hype. 

Saved from the winner’s curse

Behind this phenomenon is a theory known as the ‘winner’s curse’.

The winner’s curse suggests IPOs favour the well-connected with deep pockets. 

In an underpriced IPO, institutional investors act on their advantage to take up a large allocation, pricing retail investors out. 

When an IPO is overvalued, the opposite occurs. Institutional investors may bail after learning that it is overvalued. Retail investors then end up getting their full allocations. When the company lists, the valuation drops, and retail investors are left to watch their investment crater.

However, in Firmus’ case, this played out before it listed. Reports of an excessive valuation and a lack of interest were made public, leading to its cancellation. Retail investors were spared.

Retail investor JOMO (joy of missing out!)

Now that the IPO has been called off and the blame game has started, many will argue that Firmus’ IPO was always destined to fail. They will say they never would have invested. 

However, hindsight is a powerful thing, and the Firmus hype was real. The float was backed by some very big players, including Nvidia, Blackstone, and some of the world’s biggest investment banks.

It’s likely that many retail investors would have been caught up in the euphoria and invested in the ‘biggest IPO in a generation’ at the earliest opportunity.

There are certainly lessons to be learnt.

However, for now, retail investors should take the win.

Should the ASX IPO have proceeded at the original price of $11, Firmus’ banking syndicate stood to earn fees of around $215 million.

Instead, Firmus was forced to abandon the IPO and will have a lot to answer for. 

Retail investors walk away unscathed, free to allocate their capital to their next promising investment. 

The post The real winners of the Firmus fiasco appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Blackstone and Nvidia. The Motley Fool Australia has recommended Nvidia. 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 are up 0.4% to 8,749.7 points on Monday.

Among the 11 market sectors, information technology is in the lead today, up 2.3%.

The consumer staples sector is the laggard, down 1.4%.

Here are some new recommendations from the experts.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.02, up 0.8% today and down 29% over 12 months. 

Bell Potter has a buy rating with a 12-month price target of $4.45 on this ASX 200 healthcare share. 

Analyst John Hester said: 

The short term outlook for Mesoblast’s revenue growth remains highly attractive.

Pivotal events for valuation are approaching, including the interim readout on the adult GvHD study (1QCY27) and the headline data from the chronic lower back pain trial (CLBP) due mid CY27.

Both are substantially larger markets than paediatric GvHD, nevertheless the market remains cautious.

Australian biotech has had a difficult 12 months with several randomised clinical trials failing to meet clinical endpoints and we expect this has undermined investor confidence in the sector and is a contributing factor to the recent MSB share price.

While there is inherent risk in clinical trials, there is little to no read through from recent performance of others to MSB.

Transurban Group (ASX: TCL)

The Transurban share price is $13.15, down 0.8% today and down 8% over 12 months. 

Blake Halligan from Gray Perry Wealth Advisers has a hold rating on this ASX 200 industrials share. 

Halligan said (courtesy The Bull): 

Transurban owns and operates toll roads across Australia and North America, generating cash flows from essential transport infrastructure.

The company recently agreed to acquire additional interests in Sydney toll roads, which should support longer term earnings and cash flow growth.

No equity funding is required for the $4.5 billion deal.

However, in our view, the benefits are likely to be offset in the near term by increased funding requirements, elevated leverage and ongoing sensitivity to interest rates.

Dependable earnings is challenged by limited immediate upside.

NextDC Ltd (ASX: NXT)

The NextDC share price is $10.38, up 0.1% today and down 34% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a sell rating on this ASX 200 tech share. 

Fairchild said: 

NXT is riding the AI data centre boom. The company generated total revenue of $496.5 million in full year 2026, up 16 per cent on the prior corresponding period.

To fund capital expenditure of $3.397 billion in full year 2026, NXT raised $9.75 billion, much of it in senior debt, subordinated notes and hybrid securities.

The company’s $82.1 million statutory profit relied on a revaluation gain of $128.8 million.

In our view, rising interest costs could squeeze returns before new capacity starts paying its way.

The shares have fallen from $16.37 on June 4 to trade at $10.23 on October 8.

The post Buy, hold, sell: Mesoblast, Transurban, NextDC shares appeared first on The Motley Fool Australia.

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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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban 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 0.4% last week and are down almost 2% over 12 months.

Let’s start the new week with some fresh ratings from the experts (courtesy The Bull). 

ResMed Inc (ASX: RMD)

The Resmed share price is $32.85, up 0.8% today and down 21% over 12 months. 

Blake Halligan from Gray Perry Wealth Advisers has a buy rating on this ASX 200 healthcare share. 

Halligan said: 

ResMed is a global leader in treating sleep apnoea and in respiratory care devices, with a growing digital health ecosystem that supports long term recurring revenue.

Revenue increased 8 per cent in constant currency in full year 2026 when compared to the prior corresponding period.

Earnings per share were up 17 per cent.

ResMed continues to benefit from an under-penetrated market, with less than 20 per cent of US sleep apnoea sufferers diagnosed or treated amid growing demand for home-based health care solutions.

We believe concerns around GLP-1 weight loss drugs impacting ResMed are overstated.

Expanding patient support provides an attractive long term growth outlook.

Megaport Ltd (ASX: MP1)

The Megaport share price is $19.67, up 4.7% today and up 39% over 12 months. 

Philippe Bui from Medallion Financial Group has a hold rating on this ASX 200 tech share. 

Bui said: 

Megaport’s expansion into AI infrastructure is generating momentum, with about $979 million in new contracts supporting upgraded full year 2027 revenue guidance of between $720 million and $810 million.

Pre-payments from these contracts totalling about $322.6 million help fund deployment and strengthen the growth case.

Forecast capital expenditure of between $1.78 billion to $1.88 billion highlights the scale of its transformation.

We recommend holding while monitoring delivery, customer concentration and the returns generated from this substantial investment.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $37.23, up 0.1% today and up 3% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a sell rating on this ASX 200 bank share. 

Fairchild said: 

The bank faces headwinds as Australian house prices fall. After acquiring Suncorp Bank, ANZ is the country’s third largest home lender.

The bank noted a 12 per cent fall in home loan application values since the May budget and the end of July following the Federal Government’s proposed changes to negative gearing and capital gains tax.

Capital city house prices may fall more than 10 per cent from their peak, raising negative equity risks among recent low deposit buyers, which may pressure lending growth and credit quality.

Investors may want to consider cashing in some gains given the share price rise since June.

The post Buy, hold, sell: Resmed, Megaport, ANZ shares appeared first on The Motley Fool Australia.

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

The Summerset Group Holdings Ltd (ASX: SNZ) share price is in focus after the company reported 415 occupation right sales for the third quarter of FY26, with total sales up 10% year to date and resales jumping 27% compared to this time last year.

What did Summerset Group report?

• 415 occupation right sales in Q3 FY26, with 175 new sales and 240 resales
• Year-to-date total sales of 1,228, up 10% on the first nine months of FY25
• Resales up 36% year-on-year in Q3, and 27% higher year-to-date
• Strong performance in Canterbury region, with 63 sales in Q3 (15% of total)
• Deferred Management Fee (DMF) increased to 30% with no material impact on contracting

What else do investors need to know?

Summerset’s Q3 new sales were down from Q3 2025, reflecting broader economic uncertainty and some hesitancy among prospective residents. The company notes that activity levels improved after June, with sales contracts signed in Q3 rising 20% compared to the first two quarters of this year.

Despite a challenging housing market and external factors such as the Middle East conflict, demand for Summerset villages remained positive. The company credits recent independent consumer awards and strong brand recognition for underpinning prospective resident enquiry.

What did Summerset Group management say?

Chief Executive Scott Scoullar said:

Our resales performance was strong and we were pleased to see demand turning into sales across our established villages this quarter.

What’s next for Summerset Group?

Summerset enters Q4 with a healthy pipeline of potential contracts and continued buyer interest, although the timing of settlements remains tied to residents’ ability to sell their homes. The business is managing its development pipeline with discipline while focusing on sustaining sales momentum through market uncertainty.

The company remains confident, pointing to improved sales activity and ongoing trust in the Summerset brand, reaffirmed by recent industry awards for service and care.

Summerset Group share price snapshot

Over the past 12 months, Summerset Group shares have declined 49%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period

View Original Announcement

The post Summerset Group Q3 FY26 earnings: Sales up 10% on strong resales appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The GQG Partners Inc (ASX: GQG) share price is in focus after the company reported total funds under management (FUM) of US$149.2 billion as at 30 September 2026, with net outflows of US$2.3 billion offset by investment performance gains of US$2.4 billion for the month.

What did GQG Partners report?

• Total FUM as at 30 September 2026: US$149.2 billion
• Net outflows for September 2026: US$2.3 billion
• Investment performance gains for September 2026: US$2.4 billion
• Quarterly net outflows: US$11.1 billion
• Quarterly investment performance gains: US$4.4 billion
• All four core strategies delivered positive absolute and relative returns in September and Q3 2026

What else do investors need to know?

GQG Partners continues to focus on its four primary investment strategies, all of which delivered positive results in both absolute and relative terms during the month and quarter. The company noted double-digit annualised net returns over the three-year period ending 30 September 2026, in line with its investment objectives.

Most of GQG’s fee income comes from ongoing fees calculated as a percentage of assets rather than performance fees, providing stable and predictable revenue. The management team remains committed to daily portfolio reviews and prudent risk management aimed at compounding client capital over the long term.

What’s next for GQG Partners?

Looking ahead, GQG Partners will maintain its disciplined investment approach and regular portfolio reviews to manage risk and pursue growth for client funds. The next funds under management disclosure is set for 11 November 2026, with further updates scheduled monthly.

The team remains focused on generating consistent results across market cycles, closely aligning management interests with those of shareholders and clients for long-term business development.

GQG Partners share price snapshot

Over the past 12 months, GQG Partners shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post GQG Partners posts FUM of US$149.2bn in September 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Commonwealth Bank of Australia vs AMP shares

If you’re considering Commonwealth Bank of Australia (ASX: CBA) versus AMP Ltd (ASX: AMP) shares for passive income, you’re not alone. Both are well-known names in Aussie financial services, but they stand in very different corners of the market. Let’s break down where these two fit in the ASX ecosystem, how their dividends compare, and which might better suit a 40-year-old investor searching for reliable income.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia, or CBA, is the bank most Australians recognise. As one of the “big four” local banks, CBA offers everything from everyday banking to superannuation, insurance, funds management, and broking. Its huge customer base and geographic reach through Australia, New Zealand, Asia, and beyond make it a dominant force in Australian financial services.

What jumps out in the numbers? First, CBA has a massive market cap of $251.64 billion—this is financial muscle few can match on the ASX. Its dividend yield is 3.31%, and those dividends are fully franked at 100%, meaning investors benefit from the maximum tax credits. The trailing P/E ratio sits at 23.38, reflecting the bank’s premium status (and market confidence) but also suggesting investors pay up for its perceived stability.

The case for AMP

AMP, once one of the giants in Australian wealth management, is now a very different beast to CBA. AMP still delivers superannuation, insurance, and banking products, but in recent years has massively restructured—offloading large business units, entering joint ventures, and refocusing on its core services. AMP is aiming to restore its reputation and grow through a more focused wealth and banking platform.

What’s striking here is the smaller scale: AMP’s market cap is $6.13 billion, a small fraction of CBA’s. Yet, its shares have soared YTD, up 43.41%, likely helped by optimism around its ongoing turnaround. The dividend yield stands at 1.95%—lower than CBA—and dividends are only 20% franked, so the tax benefit for income-seekers is much lower. Its P/E ratio sits at 34.59, higher than CBA’s, which may reflect expectations for future growth, but could also indicate the market is willing to pay more for the turnaround story.

Valuation comparison

Here’s how the key numbers stack up side-by-side:

Metric	Commonwealth Bank of Australia	AMP
Market Cap	$251.64 billion	$6.13 billion
P/E Ratio	23.38	34.59
Dividend Yield	3.31%	1.95%
Dividend Franking	100%	20%
Dividend per Share (TTM)	$5.05	$0.05
Earnings per Share	6.517	0.074
Year To Date Return	-1.96%	43.41%

What stands out? CBA offers higher dividend yield and much fuller franking—critical if you’re relying on dividends for income in retirement or semi-retirement. AMP’s higher P/E and much lower dividend payouts, as well as only 20% franking, make it less attractive for passive income, at least on these numbers.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Commonwealth Bank of Australia closed at $150.37 on 7 Oct 2026, posting a -1.32% move that day and a YTD return of -1.96%.
• AMP closed at $2.54 on 7 Oct 2026, down 0.78% for the day but boasting a stellar YTD gain of 43.41%.

While AMP’s 2026 share performance has far outpaced CBA, its day-to-day volatility is also higher. CBA has delivered flat-to-slightly-negative returns YTD, but in the context of larger banks, that’s not unusual given macro conditions.

Which is the better buy?

If passive income is your goal—especially with franking credits to boost after-tax returns—I’d lean clearly toward Commonwealth Bank of Australia. The combination of a higher dividend yield (3.31% vs AMP’s 1.95%), fully franked payouts, and greater dividend reliability across many years all play in CBA’s favour. Its earnings, scale, and track record make it a mainstay for anyone seeking regular, tax-effective income.

AMP’s dramatic rebound in 2026 is eye-catching, but for passive income seekers, the thin yield, patchy franking, and the uncertainty of recent years don’t tick enough of the right boxes. AMP might suit those hunting for turnaround potential or capital gains. But for a 40-year-old after consistent, tax-friendly dividends—the sort that can help fund a comfortable lifestyle without too much risk—my pick would be Commonwealth Bank of Australia.

The post CBA vs AMP: Which is better for a 40-year-old investor seeking passive income? appeared first on The Motley Fool Australia.

More reading

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• CBA vs Coles shares: Which is the better buy at age 50?
• How many CBA shares do I need to buy for $10,000 of passive income?
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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The REA Group Ltd (ASX: REA) share price has been one of the ASX’s best shares over the last two decades, but the last few years have seen a lot of volatility. Experts have given their view on whether it’s great value and could deliver good returns.

As the chart below shows, the REA Group share price has dropped by around 30% in the past year.

When valuations fall that much, it could be an opportunity to invest. Is that the case with the REA Group share price?

High-quality economic moat remains

Investors should keep in mind that the company’s competitive advantages with realestate.com.au seem to remain.

In every result, the business tells the market how much ahead of its nearest rival it is.

For FY26, the company said that 12.7 million people visited per month on average, with around half of that total exclusively using realestate.com.au.

It achieved 146.4 million average monthly visits, which was 104.5 million more monthly visits than the nearest competitor on average.

REA Group also reported that 5.2 million unique properties were tracked by their owner on realestate.com.au, up 15% year over year. It also noted 2.5 million average monthly realestate.com.au buyer enquiries, up 8% year over year, as well as a 22% year-over-year increase in realestate.com.au leads.

For another important business that REA Group owns, realcommercial.com.au saw 2.9 million people visit per month on average, 1.8 million more people than the nearest competitor.

It’s with these competitive and numerical advantages that REA Group is able to sustain its leadership. Buyers want to go where the most property listings are, most sellers want to advertise on the property portal with the most buyers – a self-fulfilling circle.

The above market dynamic allows REA Group to generate revenue, regularly increase prices, and earn strong margins.

In FY26, the company reported that core revenue grew 7% (on flat listings growth), thanks to ‘buy yield’ growth of 13%, core operating profit (EBITDA) excluding associates rose 12%, and core net profit rose 15%.

What could the REA Group share price do in the next 12 months?

The company is currently in a tricky situation following tax changes affecting investment properties, and interest rates are considerably higher. Currently, new national buy listings are expected to be “flat to down low single-digits” in FY27.

But the company is targeting operational margin expansion with low-double-digit, controllable residential buy yield growth, driven by an 8% premiere+ price rise and growth in add-ons. Operating costs are expected to increase in the mid-single digits for Australia and mid-to-high single digits in FY27.

According to CMC Invest, there have been 10 ratings on the company in the last three months. The average price target is $187.40, suggesting a potential rise of around 20% over the next 12 months.

If that rise does happen, I think it would likely be an ASX market-beating return. So, at the current REA Group share price, it could be one to consider. However, there may be ASX shares that could produce even greater returns.

The post How much could the REA Group share price rise in the next year? 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 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.