Author: openjargon

Share prices change all the time, giving investors opportunities to buy and achieve strong returns. Experts have picked out some ASX shares that could deliver substantial returns.

Analysts tell investors what they think a business’ potential returns could be, along with a price target. The price target is the level analysts expect the share price to reach 12 months from the date of the investment rating.

Below are two ASX shares that experts think could deliver strong, potentially market-beating returns.

Regis Healthcare Ltd (ASX: REG)

Regis Healthcare is one of the largest aged care operators in Australia. It provides services to more than 10,000 older Australians through residential aged care homes, home care service hubs, day therapy, respite centres, and retirement villages.

According to CMC Invest, there have been six analyst ratings on the business within the last three months. The average price target is $6.08, implying that those six analysts collectively think the Regis Healthcare share price could rise by almost 40% over the next 12 months.

The Regis Healthcare share price has fallen around 30% since the end of August 2026 amid news that government funding is not going to rise as much as hoped in the year ahead, despite elevated inflation of costs.

To combat this, the ASX share is undertaking a range of initiatives to mitigate the margin pressures associated with government funding settings. Some of those ideas include increases to room prices, a rollout of higher everyday living fee (HELF) services, other revenue optimisation, and operational efficiency initiatives.

On top of that, there is the long-term tailwind of ageing demographics, which can increase the demand for aged care.

Based on the projection on CMC Invest, Regis Healthcare is currently priced at 18 times FY28’s estimated earnings at the time of writing.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The other ASX share I want to highlight is Pinnacle. It says that it’s growing a diverse family of investment businesses (which Pinnacle calls affiliates).

While holding a stake in affiliates, it provides seed funding, global institutional and retail distribution, and industrial grade middle office and infrastructure services. By providing affiliates with quality non-investment services, Pinnacle enables them to focus on generating investment returns for clients.  

Some of the affiliates it’s invested in include Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Coolabah, Pacific Asset Management, Life Cycle, and so on.

According to CMC Invest, there have been six analyst ratings on the business within the last six months. The average price target from those six analysts is $21.76, implying a potential 55% rise in the year ahead.

Volatility in the ASX share market and private credit sector may have impacted investor confidence, so a potential recovery in investor bullishness could help deliver a lot of the return. Time will tell how the uncertainty with private credit plays out for Pinnacle’s affiliate FUM.

According to CMC Invest, the business is valued at 16 times FY27’s estimated earnings.

The post 2 ASX shares tipped to grow up to 55% or more in the next 12 months appeared first on The Motley Fool Australia.

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• Pinnacle Investment Management reports FY26 profit and Metrics funds update
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• 1 ASX dividend stock down 49% I’d buy right now

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

Deciding which ASX 200 shares are buys and which ones are sells can be difficult. 

To help you work things out, let’s look at three shares that experts are tipping as sells this week, courtesy of The Bull. 

Here’s what they are recommending:

ANZ Group Holdings Ltd (ASX: ANZ)

The team at Lazarus Capital Partners has named ANZ shares as a sell this week.

It has concerns with how the weakening housing market could impact lending growth and credit quality. Lazarus 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.

Commonwealth Bank of Australia (ASX: CBA)

Over at Medallion Financial Group, it has named CBA shares as a sell.

Its team has concerns over the company’s valuation and thinks investors should be re-allocating capital to other areas of the market that offer more attractive potential returns. Medallion explains:

This bank delivered another strong result in full year 2026. The company posted cash profit of $10.982 billion in full year 2026, up 7 per cent on the prior corresponding period. The full year dividend of $5.05, fully franked, was up 4 per cent. CBA’s scale, customer franchise and technology investment underpin the company’s quality. 

Nevertheless, we believe the valuation leaves insufficient room for disappointment. Mortgage competition, operating costs and the potential for credit losses to normalise remain risks. We favour taking profits and re-allocating capital to other companies where earnings growth and income offer a more compelling prospective return.

Evolution Mining Ltd (ASX: EVN)

Gray Perry Wealth Advisers thinks that gold miner Evolution Mining could be an ASX 200 share to sell this week.

It thinks that recent share price strength means that there is limited room for operational setbacks or weaker metal prices. The wealth adviser explains:

Evolution Mining produces gold and copper from operations in Australia and Canada. The company delivered record cash generation, a net cash position and higher shareholder returns in full year 2026, supported by strong gold and copper prices. However, sustaining record earnings relies on gold and copper prices remaining high in a volatile world. 

Future performance depends on consistent delivery across major operations, disciplined investment and continuing replacement of mined reserves. After a recent and substantial share price recovery, the valuation leaves limited room for operational setbacks or weaker metal prices. Investors may want to consider taking profits at current levels.

The post Experts tip CBA and these ASX 200 shares as sells appeared first on The Motley Fool Australia.

More reading

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• CSL vs CBA: Which ASX share is best for SMSFs?
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• If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28?

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.

For a long time, growth at a reasonable price, or GARP, was probably the investment style I was most naturally drawn to.

This meant finding ASX shares capable of growing earnings at attractive rates, but avoiding paying a price that assumes too much of that growth in advance.

I still like that approach. But these days, I prefer quality at a reasonable price, or QARP.

With GARP, growth tends to be the starting point. With QARP, I start with the quality of the business.

I want ASX shares with strong competitive positions, attractive economics, healthy balance sheets, good cash generation, and the ability to keep reinvesting for years. Only then do I ask whether the valuation leaves enough room for an attractive return.

Why the shift? Because growth can disappear quickly. A fast-growing company can slow or lose market share. A genuinely high-quality business has a better chance of handling setbacks and continuing to create value.

That does not mean valuation becomes less important. A wonderful business can still be a poor investment if its share price already assumes a near-perfect future.

So, I recently screened the ASX 200 looking for shares offering both quality and a valuation I believe can still support attractive long-term returns.

Five stood out.

CAR Group Limited (ASX: CAR)

The first is CAR Group. I think this ASX share is a very good example of what I mean by QARP.

It operates leading automotive marketplaces across Australia and several international markets, giving it strong local economics and a longer runway offshore.

One of its biggest strengths is its network effects. Buyers gravitate towards marketplaces with the most listings, while sellers want to advertise where the buyers already are. Once that position is established, it becomes difficult for a new competitor to recreate the same audience.

CAR Group can then use that position to improve monetisation, launch new products, and grow internationally without requiring the physical capital many traditional businesses need.

I also like that the investment case is no longer resting on Australia alone. Its businesses in the United States, Brazil, and South Korea give the group several avenues for expansion.

Weaker economic conditions could reduce vehicle activity. But I think the strength of the platform, its cash generation, and its international opportunity make CAR Group a compelling long-term investment option.

And despite making my final five, it was not the opportunity that stood out most from the screen.

The remaining four include ASX shares where I think the market may be underestimating the quality or recovery potential, as well as one name that I believe currently offers the best overall QARP setup of the group.

CSL Ltd (ASX: CSL)

CSL is probably the clearest example here of a high-quality business that has fallen out of favour.

The biotechnology giant has disappointed investors in recent years. Execution has not always matched expectations and margins have faced pressure.

But I think the key question is whether those issues have permanently damaged the underlying business.

The good news is that I don’t believe they have.

CSL Behring has enormous scale in plasma collection and the manufacture of therapies used to treat serious and often rare diseases. It also has decades of expertise and a global collection network that would be extremely difficult to replicate.

Demand for many of its therapies is relatively resilient.

A recovery may not be immediate, but at a touch over 17 times estimated FY 2029 earnings, I think the share price now reflects far more caution than it once did.

If management can improve execution and margins while underlying demand keeps growing, CSL could offer strong returns from here.

Goodman Group (ASX: GMG)

Goodman Group is another ASX share that I think deserves its reputation for quality.

It is often described as an industrial property group, but that does not really cover the full opportunity.

Goodman specialises in securing land, power, planning approvals, and development opportunities in locations where major customers want logistics and digital infrastructure.

That has become incredibly valuable as demand for data centres has accelerated.

Artificial intelligence (AI) and cloud computing require enormous amounts of computing capacity, which is creating demand for sites with access to power and major population centres.

Goodman’s footprint and development expertise give it an advantage, while its partnership model allows it to keep recycling capital into new opportunities.

Its shares rarely look cheap and expectations around data centres are already high. But I think recent share price weakness has created an attractive entry point.

REA Group Ltd (ASX: REA)

REA Group is another ASX share that oozes quality.

Its realestate.com.au platform has an exceptionally strong position in the Australian property market.

Buyers want to search where the largest number of properties are listed, while agents and vendors want to advertise where the buyers are. That creates a powerful network effect and makes the platform difficult to displace.

REA also benefits from attractive economics. Advertising a property can represent a small percentage of a transaction’s value, yet reaching the largest pool of buyers is highly important to the seller. That gives the company significant pricing power.

Listings will still rise and fall with the housing cycle. And with interest rates rising, the cycle is certainly going through a tough stretch.

But for a long-term investor, I think the bigger consideration is whether REA will still be central to how Australians search for property in another decade.

I believe it will. That is why, despite a valuation that is unlikely to look conventionally cheap, I still think REA can fit within a QARP framework.

ResMed Inc (ASX: RMD)

The final ASX share is ResMed.

Of the five, I think this one currently offers the strongest combination of quality, valuation, and expected return.

ResMed is a global leader in devices, masks, and software used to treat sleep apnoea.

What I like most is that the company still has a huge market opportunity even after decades of growth. Sleep apnoea already affects a huge number of people, but the vast majority remain undiagnosed or untreated.

As diagnosis improves and treatment rates rise, ResMed stands to benefit from more patients entering the system.

There is also an attractive recurring element to the model. Masks and other consumables need replacing, creating ongoing demand.

At around 19 times estimated FY 2027 earnings, I think its valuation is compelling relative to the quality of the business and the runway ahead. That is what I want from a QARP investment.

Final word

I am not trying to find the cheapest shares on the ASX. 

I would much rather own a great business at a sensible price than an average one simply because its shares look inexpensive.

CAR Group, CSL, Goodman, REA, and ResMed all meet that test for me in different ways.

The post I screened the ASX for quality and value. These 5 shares stood out appeared first on The Motley Fool Australia.

More reading

• CSL vs CBA: Which ASX share is best for SMSFs?
• 3 ASX 200 shares I think could rise more than 10% in a year
• 4 ASX shares tipped by brokers to return 18% to 96%
• CAR Group vs Seek: Which ASX 200 stock is better value?
• 3 ASX shares to buy amid a volatile market: experts

Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, REA Group, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and ResMed. The Motley Fool Australia has positions in and has recommended Goodman Group and ResMed. The Motley Fool Australia has recommended CAR Group Ltd and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for outsized returns and have a higher than average risk tolerance, then it could be worth looking at the ASX stock in this article.

That’s because the team at Bell Potter believes it could deliver a return that is materially better than the market average.

Which ASX stock?

The stock that Bell Potter is recommending to clients is Electro Optic Systems Holdings Ltd (ASX: EOS).

It is an Australian defence manufacturer specialising in advanced weapon systems and satellite tracking technology.

Bell Potter notes that the company has secured its largest ever contract after entering into an agreement with the government of a Middle Eastern Gulf state. It commented:

EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS. EOS is acting as prime contractor and systems integrator, deploying a cellular nation-wide system with MARSS’ AI-enabled NIDAR C2 platform at its core. The scope includes third-party sensors (electro-optical, radar, sonar) to feed data into central command centres, as well as initial third-party effectors (hard-kill kinetic interceptors and soft-kill jammers). 

EOS expects over 80% of contract revenue to be earned over the initial 12-24 months after the contract becomes unconditional. ~20% of total contract value relates to ongoing support over a 4-year period. Conditions include: Provision of a £37m performance bond, secured by a £40.3m cash security deposit (posted by EOS in August 2026); EOS providing a £74m bank guarantee, matched by an advance payment paid by the customer to EOS; and obtaining relevant export licences for system components within two months of receiving necessary documentation from customer.

In response to this news, Bell Potter has boosted its earnings per share estimates materially. It adds:

EPS changes: +0%/+946%/+94% over CY26/27/28e reflecting: the $700m contract; higher working capital in 1H27, higher tax rate. We have also incorporated scripbased earnout payments in CY27, totalling 19m in shares. We have unwound our inflated EV / EBITDA multiple following the contract award.

And while the deal is subject to a number of conditions, Bell Potter feels confident it will go ahead. It explains:

We are not discouraged by the export licence terms and believe it is likely EOS will proceed to implementation of the contract in early CY27e. Beyond financial benefits, this contract: (1) likely gives further battlefield experience to the NIDAR C2 solution, strengthening its competitive advantage; (2) establishes EOS as a specialist C-UAS prime contractor; and (3) enables upselling of EOS effectors.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with an improved price target of $13.80 (from $12.60). 

Based on its current share price of $10.13, this implies potential upside of 36% for investors over the next 12 months.

Bell Potter concludes:

Given the security deposit posted in August 2026, we believe this contract award was somewhat priced in by the market, however, we are surprised by the market’s reaction and given upcoming catalysts, believe current levels represent an attractive entry point. Catalysts: >$300m Netherlands HELW production deal (Letter of Intent signed in September 2026); UAE HELW JV orders, >$500m additional MARSS orders, and a steady stream of Slinger product integration orders.

The post Why this rapidly growing ASX drone stock could rise 36% appeared first on The Motley Fool Australia.

More reading

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• Which ASX drone company is up more than 15% on big contract news?
• Could Europe become the next big market for EOS?
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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 Electro Optic Systems. 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.

Life360 Inc. (ASX: 360) shares have been having a tough year.

Despite delivering strong growth across key metrics, the location technology company’s shares are down almost 40% since the start of the year.

While that is disappointing, Bell Potter thinks it could be a compelling buying opportunity for investors.

What is the broker saying?

Bell Potter highlights that EBITDA margin expectations are already low for the third quarter of FY 2026 due to increased marketing spend.

The good news is the broker believes Life360 will achieve what is expected and even sees scope for it to exceed expectations. It said:

Life360 has already set the bar relatively low for 3Q2026 by flagging an adjusted EBITDA margin of around 18% which compares to 20% in the pcp and also the previous quarter. The reason for the lower margin is flagged higher marketing spend during the quarter and also the lack of a tariff refund which was received in 2Q2026. 

The likely decrease in margin is, therefore, nothing untoward and looks to be reasonably well anticipated with a VA consensus forecast of c.19%. We ourselves forecast a margin of 18.3% in Q3 and expect our forecast to at least be met if not exceeded. We note that the company guided to a low double digit adjusted EBITDA margin in 1Q2026 – which was later clarified as being close to 10% – and then reported a margin of 12% so the company has some form in guiding to a certain level and then slightly exceeding it.

And while the broker doesn’t expect a guidance upgrade with the results, it believes there is potential for user growth to be on track to achieve guidance in FY 2026. It adds:

Given the anticipated slightly weak adjusted EBITDA margin in Q3 we do not expect any upgrade to the 2026 guidance when the quarterly is released on 10th November and this perhaps partly or largely explains the weakness in the share price since the release of the Q2 result in August. But in the absence of any upgrade there may still be some positives such as MAU growth >5m and/or paying circle growth around 200k in Q3 which would increase the likelihood that at least the low end of the 17-20% MAU growth guidance range can be achieved.

Time to buy Life360 shares?

According to the note, Bell Potter has retained its buy rating on Life360 shares with a trimmed price target of $32.00 (from $33.00).

Based on its current share price of $20.34, this implies potential upside of 57% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore. We have also increased the WACC we apply in the DCF from 9.5% to 9.7% due to an increase in the risk-free rate from 4.5% to 4.75%. 

The net result is a 6% decrease in our TP to $32.00 which is still a material premium to the share price so we maintain our BUY recommendation. The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.

The post Down almost 40%, are Life360 shares a strong buy in October? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) remains the most shorted ASX share despite its short interest easing from 15.2% to 14.5%. Short sellers may still be concerned about the ASIC investigation into the counter-drone technology company’s previous market disclosures and share trading.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest climb from 13.3% to 14%. The uranium producer is working towards steady-state production at Kayelekera, but short sellers may be questioning how quickly it can achieve its targets and at what cost.
• Boss Energy Ltd (ASX: BOE) has short interest of 13.1%, which is largely unchanged week on week. Boss recently revised its long-term development plan for Honeymoon, and short sellers may be sceptical about the production and cost assumptions underpinning its outlook.
• PLS Group Ltd (ASX: PLS) has moved higher up the table, with 12.8% of its shares held short. Despite improving lithium market conditions, short sellers could be betting that the recovery in prices will be difficult to sustain.
• Zip Co Ltd (ASX: ZIP) has seen its short interest ease slightly to 12.6%. Short sellers may still be concerned that elevated interest rates could put pressure on the buy now pay later company’s customers and funding costs, potentially weighing on growth and profitability.
• IperionX Ltd (ASX: IPX) has short interest of 12.5%, down from 12.8%. The titanium producer continues to make technological progress, but short sellers may believe commercial-scale production and the earnings needed to justify its valuation remain some way off.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has 11.7% of its shares held short, down slightly week on week. Although its restructuring has improved franchisee profitability and cash flow, short sellers appear to doubt whether sales can recover quickly enough to support a sustained earnings turnaround.
• Lynas Rare Earths Ltd (ASX: LYC) has returned to the top ten with short interest of 11.5%. This could reflect concerns over the cost and execution risks associated with its proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest increase from 11% to 11.5%. With the production ramp-up at Langer Heinrich completed, short sellers may now be focusing on uranium price expectations and the costs associated with its future growth projects.
• 4DMedical Ltd (ASX: 4DX) has slipped to tenth place after its short interest fell from 11.9% to 11.1%. Despite increasing commercial adoption of its lung imaging technology, short sellers may believe its valuation is difficult to justify given its relatively modest revenue base.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

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• 6 ASX shares to buy in today’s weak market: experts

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Temple & Webster vs Harvey Norman shares

If you’re on the hunt for a value play in the battered Australian retail sector, Temple & Webster Group Ltd (ASX: TPW) and Harvey Norman Holdings Ltd (ASX: HVN) have both taken a hammering lately. But these are very different retailers. Should you bet on the nimble pure-play online player or the diversified retail giant with an eye-catching dividend yield? Here’s how I stack up Temple & Webster vs Harvey Norman shares for value investors, based on the latest available figures.

The case for Temple & Webster

Temple & Webster is Australia’s leading online-only furniture and homewares retailer. Since launching in 2011, its growth story has revolved around shaking up traditional home buying. According to its most recent company profile, the platform stocks over 200,000 products and counts more than 1 million subscribers. While numbers like these signal scale and reach, I’d note they come from profile info, not up-to-the-minute financials.

A few fundamentals catch my eye:

• Price-to-earnings (P/E) ratio is a hefty 123.05.
• No dividend paid – all earnings are being retained for growth or shoring up the business.
• Its year-to-date (YTD) share price return is a bruising -68.8%, showing how hard sentiment has turned against tech and online retail models recently.

This pure digital play grew quickly when lockdowns favoured online shopping, but with normality returning, the harsh downturn in its share price is a reminder that markets can turn fast for disruptors.

The case for Harvey Norman

Harvey Norman is an established household name and one of Australia’s largest retail conglomerates, spanning furniture, electronics, computers, and entertainment goods. Beyond its core stores, it also owns the Domayne and Joyce Mayne brands in Australia. According to its latest public profile, it operates more than 270 outlets across eight countries, plus a significant property portfolio, especially in Australia and New Zealand.

Key fundamentals I notice:

• Much more modest P/E ratio at 9.56.
• Temptingly high ~6.8% dividend yield, fully franked at 100%.
• YTD share price return of -37.7% shows Harvey Norman shares have still been hit hard, but not to the same extent as Temple & Webster.

Harvey Norman also has plenty of runs on the board when it comes to paying dependable, franked dividends. In tough markets, that’s a comfort for value investors.

Valuation comparison

There’s a dramatic contrast between these two on current valuation metrics. Here’s how they stack up side-by-side:

Metric	Temple & Webster	Harvey Norman
Market Cap	$504.7 million	$5.08 billion
P/E Ratio	123.05	9.56
Dividend Yield	0.00%	6.79% (100% franked)
Earnings Per Share (EPS)	$0.035	$0.424
YTD Return	-68.8%	-37.7%

Note: Temple & Webster’s high P/E ratio relative to its modest EPS reveals it’s priced for big expected growth, while Harvey Norman’s low P/E (for its sector) looks more classic value. Both have negative returns this year, but Temple & Webster’s losses have been far steeper. For income seekers, only Harvey Norman is paying a dividend—and a sizeable, franked one.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Temple & Webster closed at $4.33 on 7 October 2026, up 1.4% for the day but still deeply in the red year-to-date (-68.8%).
• Harvey Norman closed at $4.08 on 7 October 2026, gaining 0.7% for the session and sporting a year-to-date decline of -37.7%.
• Both companies have seen some choppy trading in the last fortnight, but the magnitude of Temple & Webster’s drawdown highlights the sharper fall from grace.

Which is the better buy?

Both of these retailers are bruised, but in my eyes, Harvey Norman stands out as the better bet for value investors right now. The reasons? Its underlying valuation looks far more attractive, with a P/E of 9.56 compared to Temple & Webster’s lofty 123—and it’s paying a substantial fully franked dividend. If I’m looking for value, I want some measure of income and downside protection.

Temple & Webster’s growth story is tantalising, but its sky-high valuation and the absence of a dividend make it more suited to growth investors willing to stomach big swings and back a post-punishment rebound. The negatives? That massive YTD fall signals sentiment could take a while to repair.

For my money, Harvey Norman’s long record of payouts, more defensive business model, and low P/E make it my pick of these two beaten-down retailers for a value-focused investor. If you’re hunting for bargains in a challenged sector, I’d lean toward Harvey Norman for its combination of income, value, and resilience.

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

More reading

• 10 ASX shares with ex-dividend dates next week
• Adairs vs Temple & Webster: Which ASX retail stock wins for October?
• Where I’d invest in ASX shares after the recent RBA rate rise
• Where to invest $20,000 in ASX dividend shares for passive income
• Temple & Webster vs Nick Scali: Which furniture share is better?

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 positions in and has recommended Harvey Norman. 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in a positive fashion. The benchmark index rose 0.65% to 8,716.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for a good start to the week following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher. In the United States, the Dow Jones was up 0.85%, the S&P 500 rose 0.6%, and the Nasdaq pushed 0.65% higher.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$91.85 a barrel and the Brent crude oil price was up 0.4% to US$104.72 a barrel. Rising tensions in the Middle East may be behind this rise.

Buy Life360 shares 

Life360 Inc. (ASX: 360) shares could be undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the location technology company’s shares with a trimmed price target of $32.00. It said: “We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore. […] The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.’

Gold price storms higher

It could be a strong start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.4% to US$4,216.3 an ounce. This may have been driven by bargain buying after the precious metal touched a two-month low earlier in the week.

Buy EOS shares

It could be a good time to buy Electro Optic Systems Holdings Ltd (ASX: EOS) shares. This morning, Bell Potter has retained its buy rating on the defence and space stock with an improved price target of $13.80. It said: “EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock HomeCo Daily Needs REIT (ASX: HDN) has fallen 35% (at the time of writing) from its peak around five years ago, and it’s down 15% from August, as the chart below shows.

It’s an Australian real estate investment trust (REIT) that invests in convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services. It aims to give investors consistent and growing distributions.

Its property portfolio is worth more than $5 billion of assets across 2.3 million square metres of land across Sydney, Melbourne, Brisbane, Perth, and Adelaide. It’s also a strategic investor in unlisted funds.

Potential passive income

Following a large decline of the share price, the yield on offer is boosted. For example, when a business with a 6% distribution yield falls 10%, the yield becomes 6.6%.

We’re talking about a larger decline with the HomeCo Daily Needs REIT unit price, and hence, the distribution yield is noticeably larger.

The business expects its net rental profit, or funds from operations (FFO), for the 2027 financial year to be 8.8 cents per security. The distribution per unit is forecast to be 8.6 cents per security, so the business expects to retain a little bit of its rental profit with a distribution payout ratio of 97.7%.

If those projections become reality, the FFO per unit will drop 2.2%, and the distribution will be maintained.

Excitingly, the forecast payout for FY27 will be a distribution yield of 8%. That’s significantly better than what term deposits offer.

While rising interest rates are a headwind for the business, stopping growth in FY27, the last few years did see slight distribution growth, showing it can deliver growth under normal economic conditions.

Large asset discount with the ASX dividend stock

One of the easiest ways to value the ASX dividend stock, or most REITs, is by looking at the net tangible assets (NTA) or net asset value (NAV). That figure includes the net figure with the value of the properties, loans, cash, and other assets and liabilities. It’s meant to reflect the true underlying value of the business at the time.

It reported NTA of $1.56 at 30 June 2026, so it’s trading at a 30% discount to this figure.

The ASX dividend stock reported 4% comparable property net operating income growth in FY26, along with 5.9% leasing spreads (5.9% rental growth for newly signed leases compared to the old rental rate). That shows that it’s producing solid underlying performance.

This period of higher interest rates is tough, but I think it has opened up a compelling buying opportunity.

The post 1 ASX dividend stock down 35% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• How much passive income can I make from a $100,000 ASX share portfolio?
• Here are the top 10 ASX 200 shares today
• 3 excellent ASX dividend shares with 5%+ yields
• How to build a $52,000 passive income with ASX shares
• 2 ASX real estate funds that could return 23% to 35%

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 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.

If someone had $10,000 to invest in ASX dividend shares, then they’re in luck. It’s a great time to buy with the dividend yields on offer in the stock market right now.

I’m going to outline three stocks that offer good yields and have a track record of underlying growth.

One business is a real estate investment trust (REIT), one is a leading supermarket business, and one is a quality exchange-traded fund (ETF) that provides a solid distribution yield.

I’d happily split $10,000 among the ASX dividend shares below.

Centuria Industrial REIT (ASX: CIP)

This business describes itself as Australia’s largest ASX-listed domestic pure-play industrial REIT. It has 83 assets worth around $4 billion across metropolitan locations nationwide.

Industrial properties have several demand drivers, including e-commerce adoption, data centres, the onshoring of supply chains, and refrigerated space requirements (for food and medicine). This is helping increase the value of industrial land.

In FY26, it grew net operating income (NOI) by 5.2%, and it expects to grow its funds from operations (FFO) by up to 5.5% in FY27.

The ASX dividend share grew its annual distribution per unit by 3% in FY26 and expects to increase it by another 3% to 17.3 cents per unit, yielding 6.2%.

Coles Group Ltd (ASX: COL)

Coles is one of the leading supermarket businesses in Australia, with hundreds of supermarkets around the country. It also has Coles Liquor and Liquorland stores within its liquor division.

The business has succeeded at providing customers with what they want over the last several years through the products it sells, the convenience of its store network, an improving online shopping offering, and other factors.

Coles has benefited from Australia’s growing population, and it has also invested significantly in huge distribution centres and customer fulfilment centres (CFCs). This has helped efficiencies, stock flow, and more.

The ASX dividend share has grown its payout every year for the last several years, and I expect that can continue as its store network expands and e-commerce sales grow.

Its FY26 payout translates into a grossed-up dividend yield of 4.75%, including franking credits.  

WCM Quality Global Growth Fund (ASX: WCMQ)

The final investment I want to highlight is this ETF.

WCM is a fund manager based in California, so it operates in quite a different environment to the analysts in Wall Street (New York).

The fund manager wants to invest in businesses with an expanding economic moat, measured with a rising return on invested capital (ROIC). WCM also wants to find businesses with a corporate culture that supports an expansion of the economic moat.

WCM believes that corporate culture is the biggest influence on a company’s ability to grow its economic moat, so it has analysts specifically focused on corporate culture.

The investment strategy seems to be working. Over the past three years, the ASX dividend share’s portfolio has delivered a net return of 22% and 14.9% per year since inception (in August 2018). It has outperformed the global share market over the past three years and since inception.

In terms of passive income, the ASX dividend stock aims to pay a minimum annualised cash distribution yield of 5%.

The post Where to invest $10,000 in ASX dividend shares today appeared first on The Motley Fool Australia.

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• CBA vs Coles shares: Which is the better buy at age 50?
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• My favourite ASX passive income shares for retirees
• How much do I need to retire on $85,000 a year at 50?

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.