Author: openjargon

The Centuria Capital Group (ASX: CNI) share price is in focus as the company announces a $300 million fully underwritten equity raising to support accelerated growth in its AI Factory pipeline and real estate funds management platforms.

What did Centuria Capital Group report?

• $300 million equity raising via $200 million institutional placement and $100 million entitlement offer
• New securities issued at $2.00 per security, a 6% discount to the adjusted last close of $2.18
• Approximately 150 million new securities to be issued, representing 17.6% of existing securities
• FY26 operating earnings per security guidance reaffirmed at 13.6 cents (up 11.5% from FY25)
• Proceeds to accelerate growth across ResetData (AI Factories) and real estate equity and credit funds

What else do investors need to know?

Centuria’s equity raising is designed to provide the flexibility needed for rapid expansion, particularly for its AI Factory projects through ResetData (of which Centuria owns 50%). Strong customer demand for AI capacity is driving the need to bring more AI Factories online and prepare for larger-scale GPU deployments.

A portion of the funds will also help originate and underwrite new real estate transactions and seed larger unlisted funds, in line with Centuria’s strategy to scale and diversify its platform. Growth initiatives targeting Centuria’s private credit funds will also receive support, aiming to increase market share in a sector growing around 13% annually.

What did Centuria Capital Group management say?

Joint CEOs John McBain and Jason Huljich said:

The Centuria and ResetData combination has created a differentiated NVIDIA neocloud partner with scalable sovereign AI Factories and access to Centuria’s real estate, land and potential 200MW+ power pipeline. ResetData is one of three Australian NVIDIA Cloud Partners and is uniquely placed to take advantage of an upswing in international demand for the establishment of Australian-based AI Factory capacity uptake. It is worth noting that comparable neocloud platforms in Australia have experienced rapid re-ratings as contracts and scale have emerged and we have this firmly in mind as we respond to increased AI demand and build out our capability in this area.

What’s next for Centuria Capital Group?

Centuria will use proceeds from this equity raising to accelerate expansion in both AI infrastructure and real estate funds management. Further investments are planned in customer onboarding and in scaling private credit funds, while continuing to develop larger real estate assets for future funds.

The company has reaffirmed guidance for operating earnings per security, highlighting confidence in its growth path. Investors can expect Centuria’s next phase to focus strongly on innovation in property and AI-driven platforms.

Centuria Capital Group share price snapshot

Over the past 12 months, Centuria Capital Group shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Centuria Capital Group launches $300m equity raising for AI Factory and real estate expansion 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 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. 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 S&P/ASX 200 Index (ASX: XJO) is having a subdued start to the week. In afternoon trade, the benchmark index is down almost 0.1% to 8,823 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Humm Group Ltd (ASX: HUM)

The Humm share price is down 20% to 46.7 cents. This follows news that a proposed takeover by Credit Corp Group Ltd (ASX: CCP) has collapsed. Credit Corp stated: “Following a period of commercial due diligence, Credit Corp raised a number of matters which it was unable to gain comfort on following further discussions with Humm. Consequently, it informed Humm on the evening of Friday 19 June that its bid was materially reduced relative to its non-binding indicative offer. Humm has confirmed over the weekend that a mutually acceptable transaction cannot be agreed between the two parties.”

Metcash Ltd (ASX: MTS)

The Metcash share price is down 2% to $3.11. Investors have been selling this wholesale distributor’s shares following the release of its FY 2026 results. For the 12 months ended 30 April, Metcash reported a modest 0.2% increase in revenue (excluding charge-through sales) to $17.35 billion and a 2.4% decline in underlying net profit after tax to $268.8 million. Metcash’s CEO, Doug Jones, said: “Our FY26 performance demonstrates the strength and resilience of the Metcash business model. Despite mixed trading conditions across our markets, we delivered solid earnings, strong cash generation and continued progress on our long-term strategic priorities. Our scale, our national supply chain, and our deep relationships with independent retailers remain powerful competitive advantages. We now support ~105,000 customers, ~6,300 bannered stores and reach ~95% of Australians – a unique platform that continues to generate resilient, high-quality cashflows.”

Pls Group Ltd (ASX: PLS)

The PLS share price is down 5% to $5.59. This is despite there being no news out of the lithium miner. However, it is worth noting that most lithium miners are falling on Monday. On Friday, Contemporary Amperex Technology shares tumbled around 4% on the Paris stock exchange.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 14% to $31.72. Investors have been rushing to the exits today following reports that the Australian Federal Police (AFP) is investigating founder Richard White over alleged trafficking matters. It has been claimed that White exploited a former cleaner’s immigration status and financial position and provided false information on a visa application. WiseTech has not responded to the reports.

The post Why Humm, Metcash, PLS, and WiseTech shares are sinking today appeared first on The Motley Fool Australia.

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

Shares in Renascor Resources Ltd (ASX: RNU) were trading 10% higher after the company said it had started processing graphite through its demonstration plant, in a major milestone for the critical minerals aspirant.

Value-added graphite targeted

The company is aiming to become a supplier to the global battery supply chain, mining graphite from its Siviour deposit on the Eyre Peninsula, then processing a “purified spherical graphite” product for export.

The critical minerals company said on Monday:

The introduction of graphite and reagents into the integrated purification flowsheet marks the commencement of graphite processing under operating conditions at the demonstration plant. These activities are intended to demonstrate the ability to produce battery-grade graphite using Renascor’s HF-free purification process, which is designed to achieve the purity requirements for lithium-ion battery anodes without the use of HF (hydrofluoric acid) while supporting a more environmentally sustainable and cost-competitive purification pathway. The campaign will also support the generation of qualification samples for prospective customers.

Renascor said all of the major process systems had now been operated at target operating parameters.

The company added:

Activities are progressing in line with schedule, with the current phase focused on validating operation of the integrated purification flowsheet under operating conditions. This phase is expected to continue into the next quarter before larger operating runs aimed at generating optimised operating data and larger-scale qualification samples for prospective customers.

Renascor Managing Director David Christensen said:

The commencement of graphite processing through our integrated purification flowsheet represents an important milestone for the PSG demonstration plant and the broader development of Renascor’s downstream battery materials strategy. For the first time, we are operating the process under production conditions with graphite and reagents, with the objective of demonstrating the production of battery-grade graphite and generating qualification material for prospective customers. The demonstration plant was built to validate our HF-free purification process, generate operating data and support customer qualification programs. The activities now underway are an important step in demonstrating that capability and progressing toward commercial-scale production.

Government-backed strategy

The demonstration plant was built with the aid of a $5 million grant from the Australian Government under its Critical Minerals Program.

Renascor said it believed its process “has the potential to provide a commercially competitive and more environmentally sustainable alternative to conventional purification methods through lower reagent consumption, reagent recycling and reduced environmental handling requirements”.

Renascor shares were up 10% to 5.5 cents on Monday. The company is valued at $127.3 million.

The post Why is this junior critical minerals company up 10%? 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.

Core Lithium Ltd (ASX: CXO) shares were moving around early on Monday before falling into the red.

This comes after the company released a new update from its Finniss Lithium Project in the Northern Territory.

At the time of writing, the Core Lithium share price is down 2.62% to 29.7 cents.

Despite today’s fall, the lithium stock is still up 8% since the start of 2026 and has rocketed 238% over the past 12 months.

Let’s take a closer look at what was in today’s announcement.

Underground work begins at BP33

In a statement to the ASX, Core Lithium said underground decline development has now started at the BP33 deposit.

This is a major step for Finniss, which sits about 88 kilometres by sealed road from Darwin Port.

The company said BP33 is expected to provide a long-life, low-cost underground production base, with a mine life of more than 10 years. It also remains open at depth, which means there could be room to extend the operation over time.

The underground development will run alongside the current open-pit mining at Grants.

Core Lithium expects Grants to deliver around 780,000 to 790,000 tonnes of ore and 130,000 to 140,000 tonnes of spodumene concentrate.

Ore from Grants is expected to be processed during the September quarter, with shipments to continue soon after and run through 2027.

First shipment leaves Darwin

The update also included some progress on shipments.

Core Lithium confirmed that its Finniss logistics chain is now fully operational after the first shipment of lithium fines and spodumene concentrate left Darwin Port.

The shipment included 20,000 tonnes of lithium fines and 5,000 tonnes of spodumene concentrate.

The company expects to receive payment before the end of the June quarter, giving it another cash inflow while activity at Finniss ramps up.

Managing Director Paul Brown said the start of underground development at BP33 was a major milestone for the company.

He also said the first shipment showed that Core Lithium’s port and logistics network was now operating as planned.

Core Lithium still has work to do

Core Lithium has had a difficult few years, along with much of the lithium sector, after spodumene prices dropped from their highs.

Today’s update is a step in the right direction, with BP33 moving underground and the first shipment leaving Darwin Port.

However, the company now needs to keep the momentum going at Finniss if the share price run is to continue.

The post This ASX lithium stock just reached a key milestone. Why is it down? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. At the time of writing, the benchmark index is down 0.1% to 8,818.5 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up over 1% to $6.78. Investors have been buying this infant formula company’s shares after it received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula (IMF) product registrations that were acquired in connection with the a2 Pokeno facility to a2 branded products. A2 Milk’s CEO, David Bortolussi, said: “SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.”

Lindian Resources Ltd (ASX: LIN)

The Lindian Resources share price is up almost 10% to 90.5 cents. This morning, this rare earths developer provided an update on construction progress at its Kangankunde Rare Earths Project in Malawi. Lindian Resources’ executive director, Zac Komur, commented: “Kangankunde is delivering outstanding progress, with construction, mining readiness, procurement, infrastructure and operational preparation all advancing strongly.”

Perenti Ltd (ASX: PRN)

The Perenti share price is up 5% to $2.40. This follows news that its Barminco business has been awarded the contract to provide underground mining services at Barrick Mining’s Fourmile Project in the United States. Management revealed that the contract has an estimated value of $275 million and a 45-month term. Work is due to commence in July. CEO Vanessa Torres said: “Securing the underground mining contract at Fourmile is an exciting development for our North America team. We look forward to expanding our relationship with Barrick through this project. This supports our strategy to expand operations in tier-one mining jurisdictions and continues our disciplined growth into the North American market with both Barminco and Swick.”

SGH Ltd (ASX: SGH)

The SGH share price is up 2.5% to $44.42. This morning, this diversified investment company announced plans to undertake a $500 million on-market share buy-back over the next 12 months. Management advised that it made the decision after a sustained period of strong operating cash flow and de-leveraging. It notes that its leverage has reduced below its through-the-cycle target of 2.0x.

The post Why A2 Milk, Lindian Resources, Perenti, and SGH shares are pushing higher today appeared first on The Motley Fool Australia.

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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.

Well, that was fast!

Last week, investors were assured by United States President Donald Trump that the Strait of Hormuz would fully reopen for oil shipments and other cargo vessels on Friday. But over the weekend, Iran claimed that the vital shipping route was once again closed for business.

The original reopening of the Strait of Hormuz – which was responsible for some 25% of global oil and gas shipments prior to the Middle East war – came following a tentative peace deal between the US and Iran.

But that deal looks to be fraying amid the ongoing conflict between Israel and Iran’s Hezbollah allies in Lebanon.

In response to Israeli strikes in Lebanon, Iran’s leaders said the US is in breach of its agreement to not only halt attacks on its own territory but also to stop the fighting in Lebanon.

Trump took a decidedly different approach. The US president wrote on social media:

Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!

Despite Iran’s claims, oil tankers were still reported to be moving through the contested shipping route over the weekend.

Negotiations, spearheaded by US Vice President JD Vance, remain ongoing, with the latest reports indicating the strait may remain open.

Or not…

What does the Strait of Hormuz closure mean for ASX shares?

So far, ASX investors appear to be taking the news in stride.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has climbed out of the red to be up 0.2%.

Technology stocks are having a tougher run of it, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) down 1% at this same time.

That’s likely because a breakdown of the peace deal and a renewed closure of the Strait of Hormuz will drive oil prices higher again. This, in turn, will stoke inflation and pressure central banks to raise interest rates.

ASX tech stocks are often more sensitive to interest rate moves, as they tend to be priced with future earnings in mind. And as rates go up, so too does the price of investing in those future earnings.

Gold shares also often take a hit amid concerns over rising inflation and rates. But most of the ASX gold stocks are bucking that historic trend today, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2% on Monday. This follows a 1.3% increase in the gold price to US$4,211 per ounce.

And while the Brent crude oil price is up 0.7% to US$81.10 per barrel (according to data from Bloomberg), the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.9% today as traders hedge their bets on the outcome of the ongoing negotiations.

The ASX 200 Energy Index remains up 14.4% year to date.

What should I do if I’m buying ASX shares?

If you’re a day trader, issues like the closure and potential reopening of the Strait of Hormuz present some great opportunities to make, or lose, a lot of money.

If you’re buying ASX shares for the long term, the best thing to do is to try to avoid changing your investment plans based on the daily and weekly news cycles.

Long-term investors would do well to continue to focus on buying quality companies at a good price. Also, to look for strong management teams, solid growth prospects, and sizeable moats in place to keep would-be competitors at bay.

The post The Strait of Hormuz is closed again! What does that mean if you’re buying ASX shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

S&P/ASX 200 Index (ASX: XJO) shares started the day in the red on Monday but are rising in mid-morning trading.

ASX 200 shares are currently up 0.1% to 8,840.3 points.

Among the 11 market sectors, the consumer discretionary sector is in the lead today, up 0.6%.

The tech sector is the laggard, down 0.7%.

Meanwhile, on The Bull this week, three experts give us their opinions and recommendations on three ASX 200 shares.

Let’s take a look.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $78.94, up 1.3% today and down 18% in the calendar year to date (YTD). 

Toby Grimm from Baker Young has a buy rating on this ASX 200 consumer discretionary share.

Grimm said: 

The share price of this consumer electronics giant has significantly fallen since August 2025 in response to cost of living and supply chain cost pressures and increasing interest rates.

Despite these issues, JBH is expected to deliver positive sales and underlying earnings growth during the next two years.

The outlook for consumer electronics remains structurally sound. Diminishing rate hike expectations is another positive.

The stock is trading on more appealing multiples compared to 2025 and was recently offering an attractive dividend yield above 5 per cent.

Following three interest rate rises already this year, some experts expect the Reserve Bank’s next move will be a cut due to low GDP growth, recent softer inflation data, and consumer sentiment falling to one of its weakest levels in 50 years.

Given the market looks 6 to 12 months ahead, it seems that value investors may be looking for opportunities in ASX 200 retail shares today.

Santos Ltd (ASX: STO)

Santos shares are $7.31 apiece, up 0.1% today and up 19% YTD. 

Niv Dagan from Peak Asset Management has a hold rating on this ASX 200 energy share. 

Dagan said much of the near-term upside for Santos shares depends on successful execution of major projects.

Barossa is online and ramping up, while the Pikka phase 1 in Alaska has started production, with both expected to materially increase free cash flow at plateau rates.

Management is also targeting at least 60 per cent of free cash flow for shareholder returns and a $2.5 billion reduction in net debt by 2030.

However, the investment case still relies on commodity prices, capital discipline and the delivery of a large multi-year development pipeline across Australia, Papua New Guinea and Alaska.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $35.03, up 0.1% today and down 10% YTD.

Christopher Watt from Bell Potter Securities has a sell rating on this ASX 200 bank share.

Watt explained: 

The business is improving on the metrics that matter, but the operating backdrop is weakening.

Mortgage applications since the Federal Budget in May are below the prior two quarters, pointing to a slowdown in housing credit growth into next year.

Proposed tax changes to capital gains tax and negative gearing have soured sentiment, and there’s no fresh financial guidance to lean on.

With Westpac’s stock trading near the top of its range amid a possible earnings downgrade, I see more downside than upside from here.

The Federal Government has proposed that the 50% capital gains tax (CGT) discount for assets held longer than 12 months be replaced by a cost base inflation indexation method from 1 July 2027. Additionally, a minimum 30% CGT rate will apply.

To incentivise new housing, investors in new residential properties will be able to choose between the two CGT methods when they sell.

Also, from 1 July 2027, investors will not be able to negatively gear established properties purchased for investment, but will be able to do so with new homes.

The post Buy, hold, sell: JB Hi-Fi, Westpac, Santos 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 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 S&P/ASX 300 Index (ASX: XKO) food stock came under heavy selling pressure on Monday. Inghams Group Ltd (ASX: ING) opened almost 13% lower after the poultry producer responded to Australia’s first mainland detection of the H5N1 bird flu strain.

During the first hour of trade, it managed to claw back some losses. At $1.98 per share just before midday, Inghams shares were down 5.6%, while the ASX 300 edged 0.1% higher.

Why are Inghams shares sinking?

Investors appear worried about what bird flu could mean for Australia’s poultry industry and the ASX 300 food stock in particular.

Before the market opened, Inghams announced it had moved to a state of high biosecurity vigilance following the detection of H5N1 avian influenza in wild birds in Western Australia.

Importantly, the virus has not been detected in poultry and Inghams has not reported any infections within its operations.

That wasn’t enough to calm investors.

Bird flu outbreaks have caused significant disruption to poultry industries overseas. They can lead to flock culls, production interruptions, higher costs, and supply chain disruptions. With those risks now on investors’ minds, many headed for the exits.

What is Inghams doing?

Inghams has moved quickly to strengthen protections across its operations.

The company is implementing enhanced biosecurity measures and working closely with government authorities and industry groups.

Its focus is on reducing the risk of infection entering its farming network and protecting its poultry assets.

For now, the response is precautionary. But investors appear concerned about what could happen if the virus spreads beyond wild bird populations.

A stock already under pressure

Monday’s sell-off comes on top of an already difficult year for shareholders.

Inghams shares have lost around 20% of their value in 2026.

The company has faced pressure from weaker earnings growth, operational challenges, and concerns over margins. Earlier this year, management cut guidance after reporting softer-than-expected profitability, disappointing investors and weighing on sentiment.

As a result, the stock entered Monday’s session with little room for further bad news.

What’s next?

The next phase will depend on whether the virus remains confined to wild birds.

At present, there is no evidence that commercial poultry operations have been affected. That’s an important distinction.

However, markets tend to look ahead rather than focus on current conditions. Investors are now assessing the potential risks to production, costs, and earnings should the situation escalate.

For Inghams, the latest update doesn’t change operations today. But it has introduced a fresh uncertainty at a time when investors were already questioning the company’s growth outlook.

That helps explain why the ASX 300 food stock suffered such a sharp reaction on Monday.

The post Guess which ASX 300 food stock is falling on bird flu fears? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Wesfarmers Ltd (ASX: WES) share price has jumped an impressive 15% in the past month, as the chart below shows. This has significantly outperformed the S&P/ASX 200 Index (ASX: XJO), which only increased by 2.4% in the last month.

Despite the big rise of Wesfarmers, the business could still deliver good long-term returns from here, in my view.

I think there are a few reasons why the business still looks attractive to me, despite its higher price/earnings (P/E) ratio.

Excellent businesses for the economic conditions

Wesfarmers is best known for owning a number of leading retailers including Bunnings, Kmart and Officeworks.

I view Bunnings and Kmart as two of the leaders of their respective areas of the retail world of hardware and general merchandising.

They have built a strong market share based on market-leading prices, offering great value. I think these businesses are well-positioned to continue serving Australian households during this period of higher inflation and elevated interest rates – just like they did a few years ago.

If there is an economic slowdown during FY27, Wesfarmers could benefit from a larger market share. The more scale Wesfarmers can achieve, the stronger its cost advantages will be for customers and the stronger its economic moat.

Its exposure to lithium mining could also be helpful following a large rise of the lithium price over the last year. Rising production from its lithium project should flow through to its earnings and cash flow.

Ongoing earnings diversification

Despite having a great earnings base already, the company is regularly looking for opportunities to expand the addressable markets of its businesses, which is helpful for a blue-chip to continue growing at a pleasing pace and not stagnate.

For example, Wesfarmers has opened five Anko stores in the Philippines and it plans to open five more Anko stores by the end of FY27.

Another example is that Bunnings has expanded its auto care and pet range, enabling to compete in two large retail categories.

A third example is how Kmart has opened a large K home store, which is a dedicated home and living products store with an expanded range. It could be a challenger to the IKEA model.

In the coming years, I expect the business to continue to add to its product ranges and even add entirely new businesses, which should be supportive over the long-term for the Wesfarmers share price.

Great margins

The margins of Kmart and Bunnings are extremely impressive and suggest to me how much money the business could generate on reinvested profit in the coming years.

In the FY26 half-year result, Wesfarmers reported that Bunnings Group generated a return on capital (ROC) of 70.8% and Kmart Group made a ROC of 69.8%. Considering the store networks of these businesses are growing, the future still looks very promising for Wesfarmers.

Its return on equity (ROE) is very good, in my opinion. In the HY26 result, the ROE excluding significant items was 32.7%, up from 31.2% in HY25. This means it’s making great use of retained shareholder funds and it’s becoming increasingly profitable.

Wesfarmers is a great business, though it’s not the only ASX share that I think is a buy right now.

The post 3 reasons why the Wesfarmers share price is a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares have come under significant pressure recently.

On Monday, the NAB share price is trading at $37.68. That leaves the banking giant only modestly above its 52-week low of $35.48 and a long way from its 52-week high of $49.45.

In fact, NAB shares are now down approximately 24% from that high.

Does this pullback mean NAB shares are now good value?

Why has the NAB share price pulled back?

NAB is one of Australia’s largest banks and remains a major dividend payer.

But the banking sector is facing a more complicated backdrop than it was a year ago.

Higher interest rates can put pressure on borrowers, slow credit growth, and increase the risk of bad debts. At the same time, intense competition for deposits and home loans can make it harder for banks to grow margins.

Proposed changes to negative gearing could also create uncertainty for property investors and the broader housing market.

This is important because Australian banks are deeply tied to housing, business lending, consumer confidence, and the health of the economy.

When investors become concerned about these areas, bank valuations can come under pressure quickly.

What are brokers saying?

Broker opinion on NAB is mixed.

Citi recently placed a neutral rating on the bank’s shares with a $36.75 price target. Based on the current share price, that suggests the broker sees the stock as trading close to fair value.

Macquarie Group Ltd (ASX: MQG) is also neutral, though its $39.00 price target sits slightly above the current share price and implies potential upside of around 3.5%.

Morgan Stanley is more negative. It has an underweight rating and $34.50 price target on NAB shares, which implies potential downside of approximately 8%.

Morgans has a trim rating and $36.10 price target, which points to modest downside from current levels.

But it isn’t all doom and gloom. The team at UBS has a buy rating and $48.50 price target on NAB shares. If that proves accurate, the bank’s shares could rise by almost 29% from where they trade today.

And then there are dividends.

The consensus estimate is for fully franked dividends of 170 cents per share in both FY 2026 and FY 2027. This is flat on FY 2025.

Based on the current NAB share price of $37.68, that represents a forward dividend yield of approximately 4.5%.

Time will tell which broker makes the right call. But if UBS is on the money with its recommendation, big returns could be on the cards for investors over the next 12 months.

The post Is the NAB share price good value after crashing 24%? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.