Author: openjargon

If you are looking for S&P/ASX 200 index (ASX: XJO) shares to buy (and sell), then it could be worth hearing what one expert is saying, courtesy of The Bull.

Here are two ASX 200 shares they are tipping as buys and one share that they think is a sell:

Coles Group Ltd (ASX: COL)

The team at Catapult Wealth is positive on supermarket giant Coles. 

It highlights the company’s attractive and reliable dividend yield and defensive earnings as reasons to buy. It said:

The supermarket industry structure remains favourable, with Coles and competitor Woolworths dominating market share. Coles posted group sales revenue of $45.580 billion in full year 2026, up 2.8 per cent on the prior corresponding period. Excluding significant items, group earnings before interest and tax of $2.322 billion was up 9.9 per cent. 

Supermarket eCommerce sales was a highlight, growing 26.4 per cent. Coles offers a reliable dividend yield, backed by defensive earnings. Catalysts for growth include online expansion, population growth and supply chain automation.

National Australia Bank Ltd (ASX: NAB)

Catapult Wealth isn’t as positive on NAB and has named it as an ASX 200 share to sell this week.

It believes that growth will be challenging for the banking giant in the near term and thinks investors could get better value for money elsewhere in the market. Catapult Wealth explains:

Revenue grew by 2 per cent in the third quarter of fiscal year 2026 when compared to the first half quarterly average. Cash earnings also increased by 2 per cent. In our view, the broader banking sector is facing several headwinds. The Federal Government announced changes to capital gains tax and negative gearing in the May Budget. 

Investment loan applications have slowed amid a cost of living crisis. While the NAB business is well managed and the balance sheet is solid, it’s difficult to identify any significant growth on the horizon. Investors may want to consider taking some profits and explore superior earnings growth opportunities elsewhere.

Netwealth Group Ltd (ASX: NWL)

The wealth management firm has named Netwealth as an ASX 200 share to buy.

It believes the investment management platform provider’s shares are trading at an attractive level following recent weakness. Catapult Wealth said:

Netwealth operates a leading investment management platform used by financial advisers in Australia. The company’s full year 2026 results continued to deliver strong growth, with the platform’s funds under administration increasing 20.3 per cent to $135.7 billion and earnings per share growing 16 per cent to 55.2 cents. 

Despite these strong results, the share price has fallen significantly, most likely and partially in response to a compensation payout of about $101 million to members in the collapsed First Guardian Master Fund. Share price weakness presents an opportunity, as Netwealth still holds a net cash position and is poised to generate strong revenue growth moving forward.

The post 2 ASX 200 shares to buy and 1 to sell now appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Coles, NAB, CSL shares
• Down 15% and paying record dividends: Are CBA shares now a good buy for passive income?
• Here’s the dividend forecast out to 2029 for Coles shares
• Telstra vs NAB: Which ASX blue chip is the better buy?
• 6 ASX 200 shares boosted by brokers this week

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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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

• Lotus Resources Ltd (ASX: LOT) remains at the top of the table with short interest of 17%, up from 15.9% last week. The uranium producer continues to attract short sellers, possibly due to concerns over its ability to ramp up production at Kayelekera and deliver the expected financial benefits.
• DroneShield Ltd (ASX: DRO) has seen its short interest rise to 16.2%. Short sellers may be questioning whether the counter-drone technology company’s growth can justify its valuation, particularly with the ASIC investigation still creating uncertainty.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is up slightly week on week. Despite encouraging progress with its US commercial rollout, short sellers may believe its current revenue base is too small to support its market valuation.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 12%. The pizza chain operator remains under pressure as it works to improve store profitability and restore earnings growth following a difficult period.
• IperionX Ltd (ASX: IPX) has jumped to fifth with short interest of 11.7%, up from 10.6% last week. Short sellers may have concerns over the titanium company’s valuation and how quickly it can turn its growing production capacity into meaningful earnings.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 11.4%. The Penfolds owner continues to face challenging conditions in the Americas, with short sellers potentially questioning how quickly its restructuring efforts will improve profitability.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is broadly unchanged since last week. Uncertainty over the timing of a sustained lithium price recovery may be keeping short sellers interested in the miner.
• Telix Pharmaceuticals Ltd (ASX: TLX) has returned to the top ten with short interest of 11%. Despite recently securing US FDA approval for Pixclara, short sellers may still be questioning how quickly its expanding product portfolio can drive earnings growth.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 11%. Short sellers may remain wary of disruption to international travel and whether the company can deliver a meaningful improvement in margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 10.9%, which is broadly flat week on week. The uranium producer continues to attract short sellers, possibly due to doubts over its ability to meet production expectations and keep operating costs under control.

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

More reading

• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• Here are the top 10 ASX 200 shares today
• 4DMedical shares are rocketing 11% today. Is a short squeeze starting?
• Could this evolving development smash ASX lithium shares like Liontown, Mineral Resources and PLS?
• 3 ASX 200 shares forecast to fly 30% to 40% higher

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with the smallest of declines. The benchmark index fell slightly to 8,731.2 points.

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

ASX 200 expected to fall

The Australian share market looks set for a poor start to the week following a mixed session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.65% lower. In the United States, the Dow Jones was down 0.2%, the S&P 500 rose 0.15%, and the Nasdaq pushed 0.4% higher.

Oil prices drop

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a soft start to the week after oil prices pulled back on Friday night. According to Bloomberg, the WTI crude oil price was down 1.6% to US$100.30 a barrel and the Brent crude oil price was down 0.9% to US$103.87 a barrel. This was driven by optimism over Saudi Arabian oil flows.

Buy Nickel Industries shares

Nickel Industries Ltd (ASX: NIC) shares could be worth a look according to Bell Potter. This morning, the broker has retained its buy rating and $1.45 price target on the nickel producer’s shares. It said: “NIC is one of the world’s largest listed nickel producers and offers exposure across a range of nickel products and markets. It has a track record of maintaining margins through low nickel prices, benefitting from its diversified product suite and margin exposure across an integrated value chain. We retain our Buy recommendation and TP$1.45/sh.”

Gold price rises

It could be a positive start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose on Friday night. According to CNBC, the gold futures price was up 0.55% to US$4,424.9 an ounce. Easing oil prices gave the precious metal a boost.

New Hope shares downgraded

New Hope Corporation Ltd (ASX: NHC) shares are overvalued according to Bell Potter. This morning, the broker has downgraded the coal miner’s shares to a sell rating with a $5.00 price target. It said: “We have downgraded our NHC recommendation to Sell on recent share price appreciation. Our $5.00/sh Target Price already incorporates a 14% premium to our sum-of-the-parts valuation, reflecting NHC’s leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. Beyond the ramp-up of New Acland Stage 3, NHC has a limited organic production growth pipeline, and we expect earnings will peak in FY27. We expect NHC may participate in further industry consolidation as an acquirer.”

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

More reading

• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• Here are the top 10 ASX 200 shares today
• Santos vs Woodside: Which ASX energy share is better value?
• Here’s the earnings forecast out to 2028 for Woodside shares
• ASX 200 slips into the red after a positive start. Here’s why

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Metcash vs Wesfarmers shares: which is better for income investors?

If you’re looking for steady, reliable income from shares, Metcash Ltd (ASX: MTS) and Wesfarmers Ltd (ASX: WES) will both be on your radar. Both companies are big names in the world of Aussie retail and distribution, famous for supporting some of our most familiar brands. But which is the better choice for income-focused investors when you cut through the headlines to the fundamentals? Let’s take a closer look at how Metcash vs Wesfarmers shares stack up.

The case for Metcash

Metcash is Australia’s leading wholesale distributor for independent food retailers (think IGA and Foodland supermarkets), as well as a major supplier for bottle shops (like The Bottle-O and Cellarbrations) and hardware stores (Mitre 10, Home Timber & Hardware, and Total Tools). According to its most recent public description, Metcash supports more than 1600 independent supermarkets and has a significant footprint in liquor and hardware too.

The standout attraction for income investors is Metcash’s dividend yield. The current yield is an attractive 6.34%, with dividends fully franked at 100%. This is backed by a price-to-earnings (P/E) ratio of 11.23, making Metcash look relatively cheap vs. the broader market. The company’s year-to-date (YTD) return is -11.06%, showing its share price has come under some pressure, but for those focused on cash flow, the consistent dividends (see below) are arguably more important.

Metcash has a long track record of paying fully-franked dividends, with recent annual payouts split between interim and final dividends – all 100% franked.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest conglomerates, with major retail brands under its belt. Its stable of businesses includes Bunnings Warehouse, Kmart, Officeworks, Priceline, and more. The company also has significant interests in chemicals, energy, and fertilisers, and recently entered the pharmacy sector through acquiring Australian Pharmaceutical Industries. What started as a farmers’ co-op in 1914 has become a juggernaut of Australian retail and industrial activity.

For income investors, Wesfarmers offers a current dividend yield of 3.07%, lower than Metcash, but with a much higher absolute dividend per share ($2.22 vs Metcash’s $0.19), reflecting its larger share price. Like Metcash, its dividends are fully franked (100%). Wesfarmers has a long history of paying reliable, fully-franked dividends, and often surprises with special dividends on top of regular payouts.

Wesfarmers carries a significantly higher market cap ($82.68 billion) than Metcash, offering scale, diversification and resilience. However, its P/E ratio is 28.53, much higher than Metcash, suggesting the market is pricing in more growth and possibly less underlying value for income-seekers right now.

Valuation comparison

Here’s how the core fundamentals for income investors compare:

	Metcash	Wesfarmers
Market Cap	$3.12 billion	$82.68 billion
P/E Ratio	11.23	28.53
Dividend Yield	6.34%	3.07%
Dividend per Share	$0.19	$2.22
Franking	100%	100%
Earnings per Share	$0.253	$2.534

Metcash trades at a much lower P/E ratio and delivers a notably higher dividend yield. Wesfarmers is far larger and distributes more in dollar terms per share, but that comes alongside a much higher price per share and a lower yield.

Recent share price performance

Looking at recent share price data (as of 17 September 2026 for both stocks), both Metcash and Wesfarmers have seen negative returns year-to-date.

Metcash’s YTD return stands at -11.06%. Over the last few weeks (25 August to 17 September 2026), its share price drifted from $2.98 down to $2.84, a modest decline, including several small daily ups and downs. This suggests a relatively stable (if underwhelming) recent period.

Wesfarmers’ YTD return is -8.11%. Over the same period (25 August to 17 September 2026), the Wesfarmers share price dropped from $82.69 to $72.86. That is a steeper drop in absolute dollar terms and a larger percentage move over these weeks compared to Metcash, including some big daily swings.

Which is the better buy?

For income-focused investors, I think Metcash stands out as the stronger choice right now. Its 6.34% fully-franked dividend yield is far higher than Wesfarmers’ 3.07%, and its lower P/E ratio could signal better value. While Wesfarmers offers unmatched scale and sector diversification, its yield is notably lower, and the shares are much more expensive relative to earnings.

If you’re seeking dividend income my pick would be Metcash. The income is higher, the franking is full, and you’re not paying a premium P/E multiple. Wesfarmers might appeal if you want stability, brand breadth and potentially more capital growth in the long term, but for pure income, Metcash wins it for me.

The post Metcash vs Wesfarmers: Which Is Better for Income Investors? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to target this week for lifelong income
• How much passive income could I make by investing $500 a month in ASX shares?
• ASX retail shares are down 13% in 2026. Here’s what Morgan Stanley is worried about
• 3 ASX shares I’d buy for income and growth in retirement
• Down 22%: Are Wesfarmers shares now a good buy for passive income?

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 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. 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.

With the S&P/ASX 200 Index (ASX: XJO) providing sluggish growth in 2026, many investors are turning their attention towards ASX dividend shares. 

A changing environment 

Research from Betashares shows that the economic climate is shifting in favour of income instead of growth.

Elevated valuations, a shifting interest rate environment and recent tax changes are all impacting the potential of growth investing.

ASX dividend shares could be a strategic play in this current landscape. 

They provide investors with regular income even when the broader ASX 200 is experiencing weaker price performance. 

They may also offer greater exposure to established, cash-generative businesses. 

Importantly, investing in ASX dividend shares doesn’t mean just chasing the highest yield. 

For long-term investors, finding companies with a consistent track record of dependable payments is vital. 

Here are three options that could provide consistent cash flow for dividend investors to consider. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a diversified company with broad retail operations in home improvement and outdoor living, apparel, general merchandise, office supplies, and health and wellbeing, alongside a chemicals, energy and fertilisers business.

It is the company behind household-name retailers like Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

It is ideal for dividend investors because it owns established, cash-generative businesses. 

Wesfarmers is one of the true, blue-chip ASX companies and has a well-established record of regular, fully franked dividends extending back decades, including occasional special payouts.

Transurban Group (ASX: TCL)

Another strong option amongst ASX dividend shares is Transurban Group. 

It is one of the world’s largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

Its toll-road assets generate recurring cash flows that, at the time of writing, translate into a yield of roughly 5%. 

Right now, its shares are looking attractively valued after falling 15% from yearly highs. 

This could provide investors with passive income and capital growth. 

Betashares Australian Dividend Harvester Fund (ASX: HVST)

In addition to individual ASX dividend shares, ASX ETFs focused on high yields can be a great vehicle for consistent long-term income. 

This Betashares dividend harvester fund is worth considering.

It aims to provide franked income that exceeds the broad Australian share market’s net income yield, along with exposure to a diversified portfolio of Australian shares.

Importantly, it pays distributions monthly, providing a more consistent income stream than many individual stocks. 

At the time of writing it offers a yield over 5%. 

The post 3 top ASX dividend shares to target this week for lifelong income appeared first on The Motley Fool Australia.

More reading

• How much passive income could I make by investing $500 a month in ASX shares?
• ASX retail shares are down 13% in 2026. Here’s what Morgan Stanley is worried about
• Which ASX dividend shares are buys for passive income?
• 3 ASX shares I’d buy for income and growth in retirement
• Transurban posts 3.4% August traffic growth

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Transurban Group. 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.

Xero Ltd (ASX: XRO) shares have had a brutal run. Over the past 12 months, the ASX tech stock has swung between a low of $61.45 and a high of $166.00. At the time of writing, Xero shares sit at $62.78, hovering just above that 52-week low and a full 62% below the year’s record high.

The recent trend hasn’t been kind either. Xero shares finished the week as one of the big losers with a loss of 4% on Friday. The stock is down 9% over the past five trading days, 24% over the past month, and a painful 45% so far in 2026.

And yet, through all of that, brokers remain stubbornly bullish. Here’s why.

Betting bigger than just accounting software

Xero isn’t just trying to sell more accounting subscriptions anymore. The team at Macquarie Group Ltd (ASX: MQG) has flagged US growth and AI monetisation as key catalysts for Xero shares to watch.

The company estimates the US small-business payments market alone represents a US$29 billion opportunity. The acquisition of Melio has dramatically expanded what Xero can chase. The ambition now is bigger than bookkeeping. Xero wants to put accounting, payments, payroll and expenses under a single roof.

It effectively tries to become the financial operating system for millions of US small businesses. Xero says the Melio deal delivered an approximately threefold increase in North American revenue from day one.

It’s also stretching its reach beyond small businesses into self-employed customers and medium-sized businesses too. With Melio, pro forma FY26 US revenue reached NZ$530 million, up 50%, and pro forma gross profit rose 36% to NZ$186 million.

Melio supplies the payments engine, Xero adds payroll and other financial tools, and a new US leadership structure is being built specifically to accelerate customer acquisition and integrate the two businesses.

Enter Artificial Intelligence

Layer artificial intelligence on top, and the strategy gets considerably more interesting. Xero is developing JAX, its agentic AI platform, aiming to move beyond simply reporting financial information toward actually automating financial work.

AI-powered analytics are also being embedded across the platform, with the long-term goal of shifting Xero from a system of record into a system of action.

Put it together, and the bull case for Xero shares becomes a simple formula: win more US customers, sell more products to each one, grab a slice of a massive payments market, and use AI to make the whole platform more valuable.

If Xero pulls this off, the upside case stops being about accounting software altogether. It becomes about owning a much bigger slice of the small-business financial stack.

What are brokers saying?

Despite the carnage in the share price, broker’s sentiment hasn’t cracked.

TradingView’s poll of the past three months shows a buy consensus. There are 6 buy or strong buy ratings, just 1 hold, and zero sells on Xero shares. The average 12-month target sits at $111.24. That suggest roughly 76% upside from current levels. The most bullish target implies potential upside of 130%.

Individual calls back that up. Citi has reiterated its buy call with a $113.60 target, implying around 81% upside. Morgan Stanley sees $130, and UBS sits at $127.

Ord Minnett and Morgans are more conservative at $110 and $111, while RBC Capital and Jefferies bring up the cautious end at $85 and $77. Even so, these targets imply upside of 35% and 23%, respectively, from the current share price.

The post Why brokers think Xero shares could surge 130% from here appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy and hold for a decade
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Forget Xero shares! Broker tips this top ASX tech stock for 24% gains
• Why Macquarie’s $321 million Shield problem is back in court
• 5 ASX shares I’d recommend to beginners

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 positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

The S&P/ASX 200 Index (ASX: XJO) has endured a flat year in 2026, and has been outpaced by many international markets. 

Australia’s benchmark index has been weighed down by high interest rates, inflation and fears around global conflict. 

These have hit sectors like finance/banking, which represent a strong portion of the ASX 200. 

Despite the disappointing performance, this has created value opportunities for quality companies. 

One such ASX 200 stock firmly in my sights is SGH Ltd (ASX: SGH). 

Company overview 

SGH is a diversified industrial and investment group, with interests in heavy-equipment sales, service and equipment hire, media and broadcasting, oil and gas, and developable property. 

The ASX 200 company has seen its share price fall more than 20% year to date. 

Despite this, the underlying fundamentals look relatively strong. 

In its full-year results released in August, the company reported a net profit of $689.2 million, up 31.8%, even as revenue slipped 1.4% to $10.59 billion.

Revenue was broadly in line with the prior year. Underlying NPAT of $920 million and underlying EPS of $2.26 were broadly flat. Statutory NPAT of $655 million was up 35%.

SGH MD & CEO Ryan Stokes, said: 

FY26 was a year of disciplined delivery in variable market conditions. We grew earnings in line with guidance, expanded margin again, and converted 99% of EBITDA to cash. That result is a credit to our people across every business, and their commitment to serving our customers and running our operations well every day.

Morgans sees upside for this ASX 200 stock

Recent share price weakness has now pushed this ASX 200 stock firmly into value territory. 

In a recent note from Morgan’s, the broker slightly lowered its price target but maintained a positive long-term view on the company. 

Following the FY26 results season we have reviewed our forecast assumptions for SGH’s 30% share in BPT, flowing through the lower earnings detailed in our FY26 BPT results note (Link). With our sum-of-the-parts (SOTP) valuation tied to our BPT price target and the Crux valuation, an NPV of future cashflows, our SGH valuation declines modestly to $48/sh (previously $50/sh), whilst retaining our BUY recommendation.

Based on this target, Morgans anticipates up to 30% growth for this ASX 200 stock. 

This expectation is consistent with other brokers. 

Based on 12 analyst targets via TradingView, the average 12 month target is $48.71. 

The post Why this ASX 200 stock is a compelling buy with 30% upside appeared first on The Motley Fool Australia.

More reading

• 40 ASX shares with ex-dividend dates next week

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Codan vs Pro Medicus shares: which growth stock offers better value?

Keen on growth shares but not sure whether Codan Ltd (ASX: CDA) or Pro Medicus Ltd (ASX: PME) is the smarter buy? Both names have built reputations as high-performing Aussie tech businesses, but dig deeper and you’ll quickly notice some big contrasts. Let’s break down what sets Codan and Pro Medicus apart when it comes to value, growth, and recent momentum.

The case for Codan

Codan is a global technology player, best known for high-tech communications, metal detection, and mining solutions. Through segments like Codan Communications, Minelab, Minetec, and Defence Electronics, the company serves government, military, and commercial customers in dozens of countries. According to its company profile, Codan controls its own products end-to-end, with manufacturing plants in Australia and Malaysia, and a sales footprint concentrated in North America.

What stands out for Codan right now is just how quickly it’s compounded shareholder value. Its year-to-date return sits at a jaw-dropping 73.85%, which is rare in any market. The company’s P/E ratio is on the higher side at 51.03, suggesting it’s priced as a growth stock with high expectations. A dividend yield of 0.99% (fully franked, no less) won’t turn heads for income buffs, but it’s at least ahead of most tech or high-growth names. And with a market cap of $8.86 billion, Codan is a sizeable mid-cap player with room to grow.

The case for Pro Medicus

Pro Medicus sits at the cutting edge of digital healthcare, supplying advanced radiology and medical imaging systems across the globe. Hospitals and specialists use its solutions for everything from clinic scheduling to storing and analysing gigantic medical images. As per its most recent public description, the majority of Pro Medicus’s success story has played out in the US, where many prestigious hospitals have adopted its technology.

This is a genuine tech darling with a reputation for growth. But currently, it’s sporting an even loftier P/E ratio of 65.19 — a premium reserved for companies where investors expect mammoth expansion. The market cap, at $17.68 billion, puts Pro Medicus in a different league to Codan. It does pay a dividend (0.42% yield, fully franked), so there’s at least a nod to returning cash, but it’s definitely a token amount. What’s more, the company’s shares are actually down year to date by 24.84%, a reminder that even the best growth stories can be hit by buyer fatigue or lofty expectations.

Valuation comparison

There are clear valuation and size gaps between the two. Here’s a quick look at the most relevant numbers:

Metric	Codan	Pro Medicus
Market Cap	$8.86 billion	$17.68 billion
P/E Ratio	51.03	65.19
Dividend Yield	0.99% (100% franked)	0.42% (100% franked)
Year To Date Return	+73.85%	-24.84%
Earnings per Share	0.705	2.536

Codan looks much cheaper on P/E, yields more, and has sharply outperformed on share price this year. Pro Medicus, meanwhile, is the market’s clear growth favourite over the long haul, but carries a heavier price tag and steeper expectations.

Recent share price performance

Let’s take a look at how these stocks have fared in recent weeks.

Codan’s share price moved from $43.48 on 19 August 2026 up to $48.59 on 17 September 2026, a gain of around 12%. There were a few volatile days — most notably, a 12.42% jump on 20 August — but the overall momentum stayed very strong.

Pro Medicus tells a very different story. Its shares fell from $198.85 on 19 August 2026 to $169.22 on 17 September 2026 — a drop of about 15%. The ride included a few sharp single-day rallies, including a massive 11.88% spike on 18 August. But the prevailing trend these past weeks has been downward.

Which is the better buy?

If I have to call it between Codan and Pro Medicus right now, I’d lean toward Codan as the better value growth pick. Codan’s recent outperformance has been eye-catching, especially when set against Pro Medicus’s pullback this year. The valuation gap is clear, with Codan’s P/E notably lower and its dividend yield higher (while still fully franked).

Pro Medicus has enormous long-term potential and should remain high on the watchlist, but at a P/E over 65 and negative returns year to date, I think it’s priced too rich for my liking just now — especially when Codan is delivering growth and market-beating returns today. For me, Codan ticks more of the right boxes for Aussie investors after a rare combination of momentum and value in the growth space.

The post Codan vs Pro Medicus: Which ASX growth stock is better value? appeared first on The Motley Fool Australia.

More reading

• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• Here are the top 10 ASX 200 shares today
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?
• Codan vs Droneshield shares: Which is the better buy?
• 3 ASX 200 shares tipped by experts to jump 30% to 62%

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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.

Westpac Banking Corp (ASX: WBC) and the other major banks are popular choices with Australian income investors.

But there are plenty of other ASX shares that can provide attractive income.

These three would be on my shortlist.

APA Group (ASX: APA)

APA would be one of my first choices outside the banking sector.

The company owns and operates energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and other infrastructure.

I like the type of cash flow these assets can produce.

Much of APA’s revenue is supported by long-term contracts, which can give the company reasonable visibility over future earnings and distributions.

APA is also continuing to invest in new infrastructure as Australia’s energy system develops. If those projects earn attractive returns, they could help the business grow while its existing assets continue generating cash.

Debt and funding costs are important risks to watch with an infrastructure company like APA. Even so, I think its essential assets and regular distributions make it a strong long-term income option.

BWP Trust (ASX: BWP)

BWP Trust gives investors a different source of income through commercial property.

The real estate investment trust (REIT) owns a portfolio of large-format retail properties, with Bunnings a major tenant.

I like that because the quality of the tenant can be just as important as the property itself.

Bunnings has a strong position in Australian home improvement, and long leases can provide BWP with relatively predictable rental income.

Over time, rent reviews and changes across the property portfolio can also help increase income.

Like most property investments, BWP can be sensitive to interest rates and changes in property valuations. I would also keep an eye on its tenant concentration.

But for an income investor, I think the combination of established properties, a strong major tenant, and regular distributions is worth considering.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties would be my third income pick. The company earns royalties from mining operations rather than operating the mines itself.

Its most important asset is the royalty over the Mining Area C iron ore operations in Western Australia, which are operated by BHP Group Ltd (ASX: BHP).

I like that model for income because Deterra receives a share of revenue linked to production without having to fund the enormous operating and development costs that come with running a mine.

That can allow a large proportion of cash generated by the business to flow through to shareholders.

The trade-off is that Deterra’s income can still move with commodity prices and production volumes, while the business has historically been heavily dependent on one major royalty asset.

Even with those risks, I think the royalty model gives income investors an interesting way to gain exposure to resources.

Foolish takeaway

I would not feel the need to rely on bank dividends alone for ASX income.

APA, BWP Trust, and Deterra Royalties generate cash in very different ways, through energy infrastructure, property rents, and mining royalties.

For me, that makes all three worth considering when looking beyond the major banks for long-term income.

The post 3 ASX income shares I’d buy outside Westpac and the major banks appeared first on The Motley Fool Australia.

More reading

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• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
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• How to make $26,000 of passive income from ASX shares

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

How much you can earn in wages and/or investment income while remaining eligible for the age pension increases today.

The changes reflect indexation adjustments, which are made twice per year, to factor in inflation.

Let’s find out what’s changing today.

When can you get the age pension?

If you were born on or after 1 January 1957, you can apply for the pension when you turn 67 years old, whether retired or not.

To be eligible for either a full pension or part-payment, you have to clear the means testing.

That means testing comes in the form of assets and income tests.

Today, the rules for both tests change.

In this article, we’re focusing on the income test changes. (Go here for the assets test changes.)

What’s changing with the age pension income test today?

Under today’s indexation changes, the upper thresholds for the income test are going up.

Currently, singles who earn less than the lower threshold of $226 per fortnight are eligible for the full age pension.

Under today’s changes, singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight qualify for a part-payment.

Part-payments are calculated by reducing the pension by 50 cents for each dollar earned above $226.

As for couples, those who earn less than the lower threshold of $396 per fortnight (combined) are eligible for the full age pension.

Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight qualify for a part-payment.

A couple’s pension is reduced by 25 cents per person for each dollar they earn above $396.

What is the Work Bonus?

The Work Bonus cuts the amount of income that counts in a pensioner’s fortnightly income test.

Every fortnight, $300 credit is added to your Work Bonus balance, up to a maximum of $11,800.

When you work and declare that income, your Work Bonus balance offsets those earnings.

That may mean you receive your normal pension payment, despite your work earnings, for that fortnight.

If your earnings are greater than your Work Bonus balance, the excess counts toward your income test for that fortnight.

This may mean you receive a lower pension payment for that fortnight.

What about investment income?

Pensioners do not need to declare the exact income from each of their financial investments, with one exception.

The exception is investment properties. Rental income is assessed separately, and you need to declare the actual amount.

For everything else, deeming rates determine your investment income for the purposes of the pension income test.

Deeming rates are going up today, but they are still generously low.

The lower deeming rate is now 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.

Everything above these amounts will be deemed to have earned the new upper deeming rate of interest, which is 3.75%.

Right now, that rate is still below what you’d actually earn if invested in plain old cash or ASX dividend shares. 

Cash in savings accounts is earning more than 5% these days.

As for dividend shares, the ASX 200 provided an average 4.23% dividend yield in FY26. (Check out which sectors paid the most here.)

Assuming full franking, that grosses up to a total of 6% earnings.

The post How much income can you earn and still get the age pension under new rules starting today? appeared first on The Motley Fool Australia.

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• Age pension rises $37 per fortnight today

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.