Author: openjargon

When it comes to investing in ASX shares, I try to be as optimistic as possible. That’s not just blind optimism. Statistically, it makes sense to be optimistic when investing in stocks or ASX exchange-traded funds (ETFs). The markets have historically gone up far more often than they go down. Plus, the S&P/ASX 200 Index (ASX: XJO) has never failed to exceed its previous all-time high, as we’ve seen many times in 2026.

Saying that, there are more than a few reasons to feel less-than-optimistic about the current state of the global economy. Inflation remains uncomfortably high across the world’s advanced economies. Interest rates have been ticking up and look likely to continue to do so. And adding literal fuel to the fire, oil prices have been surging higher over the past week, crossing US$100 a barrel. They could well hit US$110 a barrel if the current trajectory continues.

Now, if these factors result in a recession or stock market crash, my investing strategy won’t be changing. I’ll continue to buy high-quality companies at prices that make sense, and hold for the long term. But many investors don’t have that luxury. Many, particularly retirees and income investors, rely on their ASX shares and ETFs for their retirement income. These investors may struggle to cope, either psychologically or financially, if the markets take a tumble tomorrow.

If that’s you, you may wish to consider investing in what I think is one of the most defensive ETFs on the ASX. This ETF is none other than the iShares Global Consumer Staples ETF (ASX: IXI).

A defensive ASX ETF

This fund does pretty much what it says on the tin. It invests in an underlying portfolio of shares that are all leaders in the global consumer staples sector. Consumer staples are goods we tend to need to buy, rather than ones we purchase when we’re flush with cash or in the mood to splash out. They include food, drinks, and household essentials, as well as tobacco and alcohol products.

The beauty of these products as an investment comes from their very nature as staples. Even if times get tough and we have to collectively tighten our belts, we still need to eat, drink, and stock our households with life’s essentials. That makes the companies that manufacture and sell these goods very stable, predictable investments. Just consider some of the iShares Global Consumer Staples ETF’s holdings. They include Coca-Cola, Walmart, PepsiCo, Unilever, Costco Wholesale, Philip Morris International, Nestle, Monster Beverage, Colgate-Palmolive, and Procter & Gamble. Even our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are included.

These companies are some of the world’s most resilient, defensive businesses. They either manufacture goods that people will buy, rain, hail, or shine, or else provide an easy place to buy those goods. That makes them incredibly resistant to both economic slowdowns and inflation.

So if you’re an investor who is looking at the state of the global economy with concern, this might be an appropriate ASX ETF to consider for your portfolio.

The post This ASX ETF could help protect your portfolio appeared first on The Motley Fool Australia.

More reading

• WiseTech Global vs Xero: Which fallen ASX tech share is the better buy today?
• 2 ASX 200 shares tipped by brokers to return 73% and 83%
• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Santos shares slide from fresh multi-year high: What’s next for the ASX energy stock?
• Woodside shares up 38% in 2026: Here’s what brokers tip next

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, PepsiCo, Philip Morris International, Procter & Gamble, and Unilever. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive, Costco Wholesale, Monster Beverage, and Walmart. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé, Philip Morris International, and Unilever. 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.

It has been a brutal 12 months for DroneShield Ltd (ASX: DRO) shares.

The DroneShield share price is down another 1.09% to $1.59 today and is now sitting around its 52-week low.

The stock has fallen more than 50% over the past year and almost 49% in 2026.

But at this price, I think the risk-reward is becoming much more interesting.

I certainly wouldn’t make DroneShield one of my biggest holdings. But as part of a diversified portfolio, I’d be happy to buy some shares around these levels.

Here’s why.

The demand is there

The biggest reason I remain bullish is simple. Drones aren’t going away.

They are playing a bigger role in modern warfare, border security and the protection of critical infrastructure.

That means governments and defence customers need systems that can detect, track and stop them.

DroneShield is already turning that demand into revenue.

Its latest update showed FY26 committed revenue had reached $251 million, while another $46 million was committed for FY27 and beyond.

First-half revenue jumped 74% to $125.8 million, and recurring revenue climbed 229% to $11.5 million.

The company has also received its first order for the new RfRecon product from an existing Western European military customer.

To me, that is exactly what I want to see. If those orders keep building, I think the current share price could end up looking pretty cheap.

Could short sellers send the shares higher?

This is another part of the setup I find very interesting.

The latest short-selling data shows 15.46% of DroneShield shares are currently sold short, making it the second-most shorted stock on the ASX.

That’s a huge number of investors betting against the company.

Of course, short interest is there for a reason. DroneShield is still loss-making, with first-half underlying EBITDA of $12.4 million in the red and a statutory loss of $32.2 million.

But keep in mind, heavy short interest can work both ways.

If DroneShield announces a large new contract, some short sellers may decide they no longer want to stay in the trade.

Buying shares back to close those positions could add extra demand at the same time other investors are buying the news.

And with short interest this high, I think a genuinely good announcement could send the share price higher very quickly.

Would I buy today?

At $1.59, I would.

TipRanks shows 4 ranked analysts covering the stock, with 2 buys and 2 sells. The average 12-month price target is $1.98, about 25% above the current price.

Bell Potter sits at $2.40 and Canaccord Genuity at $2.60.

Yes, there are still plenty of risks, particularly around profitability, margins and execution.

That is why I’d keep the position relatively small.

But I think the potential upside makes the risk worthwhile.

The post DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today appeared first on The Motley Fool Australia.

More reading

• Are DroneShield shares a buy at their 52-week low?
• These are the 10 most shorted ASX shares
• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…
• DroneShield shares are down 75%. Could this huge short bet backfire?
• Should I buy DroneShield shares following today’s trading update?

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 positions in and has recommended DroneShield. 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.

Santos Ltd (ASX: STO) shares closed at a fresh multi-year high of $8.70 on Monday afternoon.

The shares have slid around 1.5% in lunchtime trade today, to $8.60 a piece. But even after today’s decline, they’re still up 40% for the year-to-date and are 12% higher than a year ago.

Why are Santos shares flying higher in 2026?

The ASX energy shares have jumped higher in 2026 off the back of ongoing conflict between the US and Iran. Volatility in the region has fuelled significant concerns about tighter global oil supply and rising prices.

Santos shares spiked in February and March, around the time news first broke that conflict had escalated between the two nations. The shares continued climbing in value as the war heated up.

They cooled again in June off the back of news that the two nations could soon reach a peace agreement, but strikes recently resumed, throwing the market back into chaos and creating a strong tailwind for Santos.

According to the latest update and data from Trading Economics, Saudi Arabia’s East-West pipeline, which provides an alternative oil shipping route to the Strait of Hormuz, continues to remain shut following recent drone attacks. 

Meanwhile, a meeting between Iran and the Gulf Arab states to discuss Hormuz has also been postponed.

The price of crude oil has now jumped to around US$103 per barrel at the time of writing, a 22% increase over the past months alone. 

And it looks like prices could keep climbing higher still. 

Investment bank Goldman Sachs said they think crude oil could rise above US$120 if production stays well below pre-conflict levels. The bank estimates average output next year could still be around 4 million barrels per day below pre-war levels.

If oil stays above US$100 a barrel, oil and gas giants like Santos could benefit from higher realised prices.

Santos’ share price rally has also been supported by its strong half-year FY26 results announcement, which it posted last month.

The company reported a 2% year-on-year increase in sales revenue and a 1.7% increase in production volumes. The company also generated free cash flow from operations, driven by strong base business performance.

Can Santos shares keep climbing higher?

The oil and gas business is well placed to keep increasing its production in the coming reporting periods, which could help boost its earnings for FY27.

The experts are bullish about the outlook for Santos shares over the next 12 months, too.

Market Index data shows that all brokers have a strong buy rating on the stock. But after the latest rally, the $8.57 average target price is practically flat against the $8.60 target price at the time of writing.

Sentiment is also very positive on TradingView. Out of 15 analysts, 13 have a buy/strong buy rating on Santos shares. Meanwhile, one analyst rates it a hold, and one rates the energy share a sell. 

The average $8.95 target price implies a potential 4% upside ahead, at the time of writing. But some expect the shares to jump around 25% to $10.68 within the next 12 months.

The post Santos shares slide from fresh multi-year high: What’s next for the ASX energy stock? appeared first on The Motley Fool Australia.

More reading

• Santos shares are up 40% in 2026. Here’s why I’d still buy them today
• Goldman Sachs says oil could surge past US$120. Could this be the next big market shock?
• Why I’d buy Santos and Woodside shares today
• 5 things to watch on the ASX 200 on Monday
• $10,000 invested in Santos and Woodside shares 3 years ago is now worth…

Motley Fool contributor Samantha Menzies 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.

Woodside Energy Group Ltd (ASX: WDS) shares have fallen into the red in Tuesday lunchtime trade.

At the time of writing the Australian petrol exploration and production company’s shares are down around 1% and are changing hands for $32.62 each.

But the increase barely dents the gains the shares have made recently. Even after today’s dip, the shares are still 38% higher for the year-to-date and 35% higher than 12 months ago.

Why are Woodside shares flying higher this year?

The oil and gas giant’s shares have enjoyed an incredible rally throughout most of 2026 so far.

Conflict in the Middle East and the consequential major oil supply concerns and ongoing volatility have been a key driver so far this year.

Every time the US and Iran show new signs of reaching a potential agreement, volatility reignites in the region and markets are thrown back into chaos. The situation is highly volatile, and the movement of oil from the area will continue to be uncertain until a final resolution is reached. 

Shipping disruptions and production cuts pushed crude oil prices to a multi-year high of around US$113 per barrel in April, according to Trading Economics data. While the price of oil softened in June and early July, it has now flown higher again, to around US$103 per barrel at the time of writing.

According to Trading Economics: “Saudi Arabia’s East-West pipeline, which provides an alternative route to the Strait of Hormuz, remains shut following drone attacks, with no clear indication of when operations will resume. A diplomatic meeting between Iran and the Gulf Arab states to discuss the situation in Hormuz was also abruptly postponed.”

Investment bank Goldman Sachs said they think crude oil could rise above US$120 if production stays well below pre-conflict levels.The bank estimates average output next year could still be around 4 million barrels per day below pre-war levels.

And what is bad news for markets is good news for ASX energy shares like Woodside. If oil stays above US$100 a barrel, Woodside could benefit from higher realised prices.

But it’s not only geopolitical tensions which have driven the company’s share price higher this year. Woodside has also posted strong results recently which has rallied even more investor attention.

What did the company report last month?

Woodside posted its first-half FY26 results in late-August, including a 13% increase in operating revenue, a 27% increase in NPAT, a 7% increase in underlying NPAT, and a huge increase in free cash flow to US$352 million.

The strong result saw management declare a fully-franked interim dividend of 57 US cents per share.

Woodside also reaffirmed its full-year FY26 production and capital expenditure guidance. The company expects to complete key projects, including Scarborough, Trion, and Louisiana LNG, in line with previously announced timelines.

Are Woodside shares a buy, sell or hold?

After the latest rally, it looks like the oil major’s shares are now trading around (or even above) fair value. 

Market Index data shows all brokers have a hold rating on Woodside shares. But the $28.51 average target price now implies a potential 12% downside ahead, at the time of writing.

TradingView data shows something similar. Out of 17 analysts, six have a buy/strong buy rating, eight have a hold rating, and three rate the stock as a sell.

But the average $33.25 target price implies a potential 2% upside, at the time of writing. 

But the difference between the maximum and minimum target price is huge. Some forecast the shares to climb about 36% to $44.28 over the next 12 months. But others think Woodside shares have the potential to fall up to 22% to $25.44, at the time of writing.

The post Woodside shares up 38% in 2026: Here’s what brokers tip next appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs says oil could surge past US$120. Could this be the next big market shock?
• Why I’d buy Santos and Woodside shares today
• If I buy $4,000 of Woodside shares, how much dividend income will I receive?
• 5 things to watch on the ASX 200 on Monday
• Energy shares rose while the ASX 200 slumped last week. Here’s why

Motley Fool contributor Samantha Menzies 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 S&P/ASX 200 Index (ASX: XJO) is heading lower again on Tuesday as the recent sell-off across the market continues.

At the time of writing, the benchmark index is down 0.91% to 8,669 points after touching an intraday low of 8,667 points.

That takes the ASX 200 to its lowest level in around 2 months and leaves it down almost 5% over the past month.

The index is now around 6.7% below its late August record high of 9,296 points, with selling picking up noticeably over the past week.

So, what is weighing on the market today?

A weak lead from Wall Street

Investors have had a negative lead to work with after US shares finished lower overnight.

The S&P 500 Index (SP: .INX) fell 0.48%, the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 0.56%, and the Dow Jones Industrial Average Index (DJX: .DJI) lost 0.29%.

Rising bond yields are another concern for markets.

The US 10-year Treasury yield briefly moved above 5% for the first time since 2023.

Investors are weighing higher inflation and the prospect of another interest rate rise from the US Fed Reserve.

A Reuters poll found 85% of economists expect the Fed to lift rates by 25 basis points this week.

Oil prices keep climbing

Oil is another thing investors are watching closely.

According to Trading Economics, Brent crude is trading around US$106 a barrel today as supply concerns remain in focus.

Saudi Arabia’s East-West pipeline is offline, while traffic through the Strait of Hormuz is still heavily disrupted.

The pipeline can carry around 4 million barrels per day, which is roughly 4% of global oil supply.

Commercial vessel traffic through the strait also fell to single digits over the weekend.

And with oil above US$100 a barrel again, investors will be watching what that could mean for inflation and interest rates.

Miners and banks under pressure

Closer to home, some of the ASX’s biggest companies are weighing on the index.

BHP Group Ltd (ASX: BHP) shares are down 2.34% to $59.18, while Rio Tinto Ltd (ASX: RIO) shares have fallen 2.69% to $163.67.

Northern Star Resources Ltd (ASX: NST) shares are down 2.96% to $21.96, and PLS Group Ltd (ASX: PLS) shares have dropped 3.52% to $4.26.

The banks are lower as well, with Commonwealth Bank of Australia (ASX: CBA) shares down 1.65% to $152.41.

Selling is fairly widespread across the market, with 110 of the top 200 shares lower, 81 higher and 9 unchanged in early afternoon trade.

The post ASX 200 drops again as selling continues appeared first on The Motley Fool Australia.

More reading

• Down 12%: Are CBA shares a buy, sell or hold now?
• Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares
• 3 ASX 200 shares tipped by experts to jump 30% to 62%
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• CSL shares have surged over 25%. Do brokers see more upside?

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An $800,000 superannuation balance sounds like a substantial amount of money.

But retirement could last for 20 or 30 years, and that money may need to cover everything from everyday expenses to travel and unexpected costs.

So, could $800,000 really be enough for a comfortable retirement?

What does a comfortable retirement cost?

One place I would start is the Association of Superannuation Funds of Australia’s Retirement Standard.

ASFA estimates that a single homeowner aged 65 to 84 needs roughly $56,000 a year for a comfortable retirement, while a couple needs around $79,000.

That budget is designed to cover more than the basics. It allows for things such as private health insurance, leisure activities, eating out, maintaining a car, household repairs, and occasional travel.

Of course, everyone’s spending will look different. Someone who enjoys frequent overseas trips with Qantas Airways Ltd (ASX: QAN) may want considerably more, while another retiree with relatively modest expenses could live comfortably on less.

How does $800,000 compare?

This is where I think an $800,000 balance starts to look encouraging.

ASFA estimates that a single homeowner retiring at age 67 needs around $630,000 in superannuation to fund a comfortable retirement. For a couple, the estimated combined balance is around $730,000.

On those benchmarks, $800,000 sits above both figures.

Importantly, those calculations do not assume someone simply lives off the investment income and leaves the original capital untouched forever.

Retirement savings are there to be used. ASFA’s modelling assumes retirees gradually draw down their superannuation and may also receive some Age Pension support as their balance declines.

That means an $800,000 balance does not necessarily need to produce the entire annual spending requirement through dividends or interest alone.

I would still keep investing

If I retired with $800,000, I would not suddenly move the whole balance into cash.

Retirement could still last 20 or 30 years, and inflation will continue increasing the cost of living throughout that period.

I would therefore want part of the portfolio invested in growth assets such as Australian and international shares or exchange-traded funds (ETFs).

The aim would be for investment returns to help replace some of the money being withdrawn and give the balance a better chance of supporting rising expenses over time.

I would also keep some more defensive assets available so I was not forced to sell shares after a major market fall.

That balance between growth and stability would become increasingly important once the portfolio was funding my lifestyle.

There are some important assumptions

Whether $800,000 is enough would depend heavily on personal circumstances.

Owning a home outright makes a substantial difference. A retiree still paying rent or a mortgage would generally need considerably more income.

Retirement age also matters. Someone stopping work at 60 needs their savings to support more years than someone retiring at 67.

Health costs, travel plans, family support, and other major expenses could also change the amount required.

For that reason, I would treat the $800,000 figure as part of the retirement plan rather than the whole plan.

Foolish takeaway

I think $800,000 in superannuation could provide a comfortable retirement for many Australians, particularly homeowners retiring around the traditional retirement age.

It is already above ASFA’s current comfortable retirement benchmarks for both singles and couples.

For me, the key would be making sure the money remained invested sensibly, withdrawals were sustainable, and there was enough flexibility to deal with whatever the next few decades brought.

The post Could I retire comfortably with $800,000 in superannuation? appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $10,000 into Qantas shares today
• Looking to bank the final Qantas dividend? You’d better hurry!
• How many Qantas shares do I need to buy for $5,000 of passive income in FY27?
• 33 ASX shares going ex-dividend next week
• Top 3 ASX 200 shares now below their 200-day moving average

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 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.

It has already been a huge year for Santos Ltd (ASX: STO) shares.

The Santos share price is down 1.72% to $8.58 at the time of writing, but the stock is still up almost 40% since the start of 2026.

Just yesterday, it traded as high as $8.75, a level not seen since late 2014.

Yes, buying after a run like that can feel uncomfortable. Nobody wants to turn up after most of the gains have already been made.

But despite the much higher share price, I’d still be happy buying Santos today.

Here’s why.

Production is about to step up

The biggest reason is that Santos is entering a very different stage of its growth phase.

After years of heavy spending, major projects such as Pikka in Alaska and Barossa are now producing and ramping up.

Pikka achieved first oil in May and has already reached around 40,000 barrels of gross production per day.

Santos is targeting roughly 80,000 barrels per day by the end of the third quarter.

Barossa is starting to contribute as well, giving the company another source of production growth.

Santos expects second-half production to be around 20% to 30% higher than the first half.

And that’s the part I really like.

The company has already done much of the expensive work.

Investors should now start to see greater benefits from those projects, including higher production and stronger cash flow.

The next project is already lined up

Pikka and Barossa aren’t the end of it either.

Santos recently agreed to increase its interest in the Papua LNG project by an additional 3.3% for approximately US$189 million.

That gives the company another sizeable growth project beyond those already contributing.

Papua LNG is still further down the track, but it adds another potential production source without Santos having to rely too heavily on Pikka and Barossa.

The company also has operations across Australia, Papua New Guinea and the United States, which gives it a decent spread of assets.

And with oil prices above US$100 a barrel, Santos is getting some help from higher energy prices as well.

Would I worry about the valuation?

TipRanks shows 9 ranked analysts covering Santos, with 7 buys and 2 holds.

The average 12-month price target is $8.64, which is nearly identical to the current share price.

But there are more bullish targets out there.

Bernstein sits at $10.10, while Citi has a $9.35 target and Macquarie recently lifted its target to $9.25.

So, I wouldn’t buy Santos expecting another 40% gain in the next few months.

My interest is more about what the business could look like over the next few years.

The post Santos shares are up 40% in 2026. Here’s why I’d still buy them today appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs says oil could surge past US$120. Could this be the next big market shock?
• Why I’d buy Santos and Woodside shares today
• 5 things to watch on the ASX 200 on Monday
• $10,000 invested in Santos and Woodside shares 3 years ago is now worth…
• 5 things to watch on the ASX 200 on Friday

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.

Commonwealth Bank of Australia (ASX: CBA) shares have tumbled further into the red in Tuesday’s trade.

At the time of writing, the shares are down by around another 1% and changing hands at $153 each. 

The latest decrease means the banking giant has now shed around 12% since it posted its FY26 results in mid-August. The shares are also now down around 5% year to date and 9% lower than 12 months ago.

Why are CBA shares still falling?

It’s been a tough month for ASX bank shares across the board as investor confidence continues to take a beating.

Growing concerns about higher-than-expected inflation, the prospect of further interest rate hikes, and fears of a rising cost of living have led many investors to shy away from ASX shares recently.

And all this came against a backdrop of falling mortgage demand, a weakening housing market, and tight competition squeezing margins.

The bank’s FY26 results, which it posted in mid-August, didn’t help spark investor confidence.

CBA posted a 7% increase in cash NPAT and an 8% increase in statutory NPAT. Operating income also increased by 6.2%. The bank announced a $2.70-per-share fully franked final dividend and a fully franked full-year dividend of $5.05, up 20 cents.

On a positive note, CBA said it is the first time it has reported growth at or above system in each of its five core domestic product categories: home lending, business lending, consumer finance, household deposits, and business deposits.

But going forward, CBA flagged a cautious outlook, with softer household spending and slower economic growth. This raised concerns about the bank’s earnings strength and its already-high valuation amid a weakening market.

Now the question is, are CBA shares approaching the bottom? Or is there more downside ahead?

Are the shares a buy, sell or hold now?

CBA shares have finally made their long-awaited correction, but I don’t think the end is in sight yet.

Market Index data shows all brokers still have a strong sell rating on the shares. The $125.20 average target price implies the shares could fall another 19% over the next 12 months, at the time of writing.

On TradingView data, the majority (14 out of 16) have a sell/strong sell rating on CBA. The average $127.86 target price implies a potential 16% downside, and the minimum $90 suggests the shares could fall another 41%, at the time of writing.

Shaw and Partners has named the Big Four bank as an ASX share to sell this week. The broker highlights that CBA shares continue to trade at a significant premium to peers despite its subdued earnings growth outlook and warns that there is limited scope for further earnings-driven upside.

Medallion Financial Group’s Stuart Bromley also has a sell recommendation on CBA shares. He agrees that the bank’s valuation is strengthened and that better valuation opportunities exist elsewhere. 

The post Down 12%: Are CBA shares a buy, sell or hold now? appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops again as selling continues
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• How much superannuation is needed to target $5,500 per month in passive income?
• My top ASX passive income stocks for the next 10 years

Motley Fool contributor Samantha Menzies 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.

Zip Co Ltd (ASX: ZIP) and New Hope Corp Ltd (ASX: NHC) shares don’t have much in common.

After all, one is an S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock while the other is an ASX 200 coal stock.

One thing they do have in common is their strong outperformance today.

In morning trade on Tuesday, the ASX 200 is down 0.5%.

New Hope shares, on the other hand, are up 2.9%, changing hands for $6.46 each. And Zip shares are soaring 4.3%, trading for $2.19 apiece.

Zip shares look to be getting a boost today after the company announced that, in line with its 20 August announcement, Zip commenced the on-market share buyback of up to $50 million worth of its shares on Monday.

As for New Hope, the coal miner released its FY 2026 results this morning.

New Hope reported a full year net profit after tax (NPAT) of $161 million. And management declared a fully franked final dividend of 30 cents per share, up from last year’s final passive income payout of 15 cents per share.

That’s this week’s price action.

Now, if you’d invested $10,000 in both ASX 200 stocks three years ago, here’s what you’d have today.

(As for our benchmark, the ASX 200 has gained 19.5% since 15 September 2023.)

New Hope share gains driven by dividends

Three years ago, New Hope shares were trading for $6.22 apiece.

So, for $10,000 you could have bought 1,607 shares in the ASX 200 coal miner.

At today’s $6.46, you could sell those same shares for $10,381.

While that’s not much of a capital gain over three years, we haven’t factored in the New Hope dividends yet.

We can’t count the 30 cent per share final dividend declared today, as you’d need to own the stock at market close this Friday to be eligible for that passive income payout.

But if you’d owned the coal miner for the past three years you would have received the past six fully franked dividend totalling $1.13 a share.

If we add that back in to today’s share price, then the accumulated value of the New Hope shares you bought for $10,000 three years ago is now worth $7.59 each.

And those 1,607 shares are worth an accumulated $12,197.

Zip shares strong rebound from post pandemic beating

Unlike New Hope shares, Zip shares were beaten down badly by 15 September 2023, trading for just 32 cents each.

For $10,000, then, you could have picked up 31,250 shares in the ASX 200 BNPL stock.

Now, Zip doesn’t pay any dividends.

But at today’s $2.19 share price, those 31,250 shares are worth a cool $68,438.

How about in 2026?

It’s a vastly different story in 2026.

Year to date Zip shares remain down 34% while New Hope shares have surged 61% and paid an interim dividend.

The post $10,000 invested in Zip and New Hope shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• New Hope shares near 52-week high. Here’s what stood out in the result
• New Hope reveals major 2026 coal resource increases
• These are the 10 most shorted ASX shares
• Energy shares rose while the ASX 200 slumped last week. Here’s why
• Zip shares crash another 11% this week: What is going on?

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.

Woolworths vs Coles shares: Which supermarket player deserves a place in your portfolio?

Both Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have become household names for Aussies when it comes to grocery shopping. If you’re considering these supermarket heavyweights for the dividend income they’re known for, you might be weighing up Woolworths vs Coles shares. Let’s unpack how these rivals stack up on yield, value, and recent performance.

The case for Woolworths Group

Woolworths Group stands as one of Australia’s largest retail companies, with a strong presence in the supermarket sector across Australia and New Zealand. The company also owns the Big W discount department store chain and several supermarket brands in New Zealand. Woolworths is known for its defensive qualities, as consumers continue to spend on essentials like food and toiletries even during economic downturns.

Looking at the numbers, Woolworths commands a massive market cap of $47.34 billion, making it the larger of the two by some margin. Its shares sport a price-to-earnings (P/E) ratio of 41.62 and an earnings per share (EPS) of $0.925. For income seekers, Woolworths is fully franked and has a current dividend yield of 2.52%. The group has shown robust YTD (year-to-date) returns of 34.34%.

On dividends, Woolworths has a reliable habit, paying fully franked dividends for decades. Its latest final dividend was $0.52 per share, paid in September 2026, and there was also a $0.45 interim earlier in the year.

The case for Coles Group

Coles Group is another major force in Aussie retail, providing groceries, household goods, liquor, and more — in-store and online. The business was previously part of Wesfarmers, but became its own ASX-listed company again in 2018. Coles operates over 900 supermarkets and also has Coles Express and Coles Liquor, though it sold off its fuel and convenience division to focus on core retailing.

Coles comes in with a $31.48 billion market cap, making it smaller than Woolworths but still a market leader by any measure. It trades at a lower P/E of 28.61 and offers a dividend yield of 3.36%, notably higher than Woolworths. Like its rival, Coles dividends are fully franked, and its current EPS is $0.812. The year-to-date return stands at 11.99%.

Dividend consistency is strong, with regular half-yearly payments. The latest final dividend was $0.37 per share (paid September 2026), with a $0.41 interim earlier in the year, all fully franked.

Valuation comparison

Here’s how some key stats line up side by side:

Metric	Woolworths	Coles
Market Cap	$47.34b	$31.48b
P/E Ratio	41.62	28.61
Dividend Yield	2.52%	3.36%
Earnings per Share	$0.925	$0.812
YTD Return	34.34%	11.99%
Franking	100%	100%

Woolworths is the much larger company, with stronger recent share price appreciation, but Coles stands out for its lower valuation and bigger dividend yield.

Recent share price performance

Please note: these prices reflect the close on 14 September 2026, not live data.

– Woolworths closed at $38.75, having rallied strongly throughout 2026. Its YTD return is an impressive 34.34%.
– Coles closed at $23.44, with a 2026 YTD return of 11.99%.

Over recent weeks, both shares have experienced typical market ups and downs, but Woolworths has shown more significant price momentum than Coles.

Which is the better buy?

If I had to pick between Woolworths and Coles right now, my nod goes to Coles. Here’s why: the dividend yield is meaningfully higher at 3.36% compared to Woolworths’s 2.52%, so if I’m chasing income, Coles is immediately more appealing — and both offer fully franked dividends, making income even sweeter for Aussie shareholders.

Coles also trades on a much lower P/E, hinting that Woolworths’s current valuation is pretty stretched, especially after that bumper 34% YTD gain. While Woolworths’s share price run is impressive, it leaves less room for error and less compelling value. Coles looks relatively steady and offers more bang for buck on the dividend front, which matters most to yield-focused investors.

Woolworths still boasts market leadership and a reputation for resilience, but today, I reckon Coles is the supermarket share with the greater value and income edge.

The post Woolworths vs Coles: Which supermarket giant is the better ASX buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares
• Worried about a recession? These ASX shares would be just fine
• Experts name CBA and these big-name ASX 200 shares as sells this week
• How to build a superannuation portfolio generating $50,000 a year
• Where to invest $5,000 into ASX dividend shares

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.