Author: openjargon

Australian supermarket rivals Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have been in close competition for decades. The two supermarket shares dominate the Australian supermarket sector, and account for around 70% of market share combined.

They compete closely for grocery prices, customers, and supplier terms.

Here’s the latest out of the two retailers, and what is expected next. 

In my view, one is a buy and one is a sell.

I’d buy Coles shares

Coles shares have climbed higher so far in 2026 off the back of stronger financial results, execution of its turnaround strategy, and higher sales figures. 

At the time of writing, the shares are up around 12% for the year-to-date and are trading at $23.85 a piece.

The company posted its FY26 results last month, which included a 2.8% increase in its group sales revenue, a 9.9% increase in its EBIT excluding significant items, and a 13.7% increase in its NPAT excluding significant items.

Management also declared a fully-franked total dividend of 78 cents per share for FY26, an increase of 13%.

It looks like investors are pleased that the company’s efforts have started to translate in better earnings.

And there are also more growth plans in the works.

Coles said it is ramping up its investment in new stores, renewals, and technology, including accelerated eCommerce and supply chain automation.

Most experts are positive about the outlook for Coles shares over the next 12 months.

According to TradingView, the majority of analysts (eight out of 17) have a buy/strong buy rating on Coles shares, and another seven rate Coles shares as a hold. Two experts have a sell/strong sell rating.

The average $24.46 target price implies a potential 3% upside over the next 12 months, at the time of writing. 

I’d sell Woolworths shares

Woolworths shares have had a more stable run this year, versus Coles. The supermarket shares have mostly trended upwards and at the time of writing, are around 34% higher for the year-to-date.

It looks like the increase is mostly driven by investor confidence that the turnaround is coming to fruition. There is renewed investor confidence that the retailer’s earnings are recovering after a difficult period in late 2025.

The ASX consumer staples stock gathered more attention after it posted its FY26 results last month. 

The supermarket giant reported a 3.6% year-on-year boost in sales to $71.54 billion. And EBITDA (before significant items) increased by 6.7% to $6.09 billion. On the bottom line, Woolworths achieved a NPAT (before significant items) of $1.60 billion, up 15.4%.

The bumper results meant management was able to increase the final fully franked dividend by 15.6% from last year’s final payout of 52 cents per share.

Investors were clearly pleased with the result, and the shares rallied to a new multi-year high shortly afterwards.

But it looks like the shares are now fully priced with little room for more upside. 

Market experts agree. TradingView data shows the majority of analysts (nine out of 17) have a hold rating on Woolworths shares. But another six rate the shares as a sell/strong sell.

The average $39.71 target price implies a potential 1% upside over the next 12 months, at the time of writing.

The post Coles vs Woolworths shares: One I’d buy and one I’d sell appeared first on The Motley Fool Australia.

More reading

• How I’d use ASX shares to build wealth outside my superannuation
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Own BHP, Woodside or Coles shares? Here’s what investors should know
• 5 things to watch on the ASX 200 on Thursday

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.

Shaw and Partners has released research notes on two ASX small caps that it believes can deliver substantial returns over the next year.

Let’s have a look at who they like.

Objective Corp Ltd (ASX: OCL)

The Objective Corp share price fell sharply on the release of the company’s FY26 results, but Shaw and Partners believes this was an over-reaction.

The company reported revenue of $134.7 million, up 9%, and adjusted EBITDA of $51.5 million, up 11%.

It also increased its dividend from 22 cents per share to 26 cents.

The company said regarding its results:

During FY2026, 100% of our software revenue was contracted under a subscription model and recurring revenue represented 86% of total revenue from customers. The Annualised Recurring Revenue (ARR) balance at 30 June 2026 decreased by 2% to $117.3 million ($120.2 million at 30 June 2025). Information Intelligence ARR decreased by 5% to $81.0 million (FY2025: $85.1 million); Regulatory Solutions ARR increased by 4% to $17.6 million (FY2025: $16.9 million); Planning and Building ARR increased by 3% to $18.7 million (FY2025: $18.2 million).

The company said it had a strong balance sheet, which “provides significant capacity to further pursue investment opportunities that enhance returns for stakeholders”.

Shaw and Partners said Objective Corp delivered solid underlying growth despite the loss of a defence contract.

They said the company was now poised for growth:

Strategically, years of R&D investment have delivered a mature product portfolio, with the focus now shifting toward sales and monetisation. FY27 establishes a new earnings base, with sales execution key to re-accelerating growth. Reiterate Buy.

Shaw and Partners has a price target of $9.50 for Objective Corp, compared with $6.40 at the time of writing.

Humm Group Ltd (ASX: HUM)

This finance and credit card company’s shares have been on a slide in recent months, and are now down 35% over the past 12 months.

Humm Group’s full-year net profit fell from $39.6 million to $15.7 million, but Shaw and Partners said this was largely due to one-off costs associated with corporate activity.

They said they expected net profit to “materially recover” this financial year, and noted that the company was trading at a substantial discount to the small-cap financial sector.

The company itself said re the outlook:

Humm Group enters FY27 with a clear focus on disciplined execution, with the final stages of platform transformation expected to create a shift in focus from building foundations, to realising benefits. This focus will enable meaningful and cost-effective scale in the consumer portfolios, accelerate AI adoption, simplify and automate processes and deliver better experiences for customers, merchants and employees.

Shaw and Partners has a price target of 80 cents on Humm Group shares compared to 42.25 cents at the time of writing.

The post 2 ASX small caps which could deliver 50% to 90% returns appeared first on The Motley Fool Australia.

More reading

• 5 things reporting season taught ASX investors about FY27
• 2 ASX shares tipped to grow 60% or more in the next 12 months
• 5 ASX 200 shares with 33% to 61% upside post-results: experts
• Morgans names 3 ASX tech stocks to buy
• Objective Corporation share price crashes 18% on FY26 earnings

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

Australia’s community of ASX shares investors is getting bigger and younger, according to new research from CommSec.

CommSec recorded 11.5% growth in active customers over FY26, with trading volumes up 27%, and traded value up 33%.

Millennials were the dominant investor group in FY26, representing 37% of active trading accounts.

Young investors were more proactive, with the total trade value among clients under 40 years increasing 55% in FY26.

By comparison, trade value among customers aged over 40 years rose 30%.

Gen Z (born 1997-2012) accounts for just 1.6% of the wealth held by CommSec investors, but they were the most active traders.

Gen Z represented 19% of active market participants in FY26.

CommSec said Gen Z was turning to ASX shares to build wealth because they were priced out of Australia’s property market:

Where 40 years ago, Baby Boomers and Gen Xers could buy a typical first home in Sydney or Melbourne for around 3-4 times the average salary of the time, Gen Zers face a price ratio of up to 14 times their average salary, following several decades of property values far outpacing average wage growth.

Consequently, investing in the stock market to generate capital has become an appealing alternative to property for many Gen Zers…

First-time ASX shares investors

First-time investor activity in FY26 was strongest amongst clients aged under 40 years at 66%, up from 63% in FY24.

Female investors accounted for 42% of first-time investors, up from 36% two years ago.

Overall, 66% of active investors on CommSec in FY26 were men and 34% were women.

Gillian Bowen, Head of Media and Markets at CommSec, said:

Australians are investing in greater numbers than ever before, but the path they’re taking increasingly reflects their life stage, priorities and financial circumstances.

Younger investors are entering the market earlier and are highly engaged, while older generations continue to hold significant pools of wealth built over decades.

Young Australians’ portfolios were primarily full of ASX shares.

The most traded ASX shares among Millennials were: Droneshield Ltd (ASX: DRO), PLS Group Ltd (ASX: PLS), Zip Co Ltd (ASX: ZIP), and CSL Ltd (ASX: CSL).

The most traded among Gen Z were: Droneshield, PLS Group, Zip, and Commonwealth Bank of Australia (ASX: CBA) shares.

While younger investors retained the home bias of previous generations, they were increasingly engaged in overseas markets.

Younger investors more open to international shares

Younger Australians were increasingly focusing on international shares, the research showed.

About 10% of Gen X (born 1965-1980), Millennials (1981-1996), and Gen Z portfolios on CommSec contained international shares.

That compared to 5% for Baby Boomer (born 1946-1964) portfolios.

CommSec said global tech shares featured prominently among the most traded shares for all investor groups in FY26.

The most traded US stocks among Millennials were: Tesla, Nvidia, Super Micro Computer, and Space X.

The most traded among Gen Z were: Tesla, Nvidia, ProShares UltraPro QQQ, and Direxion Daily TSLA Bull 2X ETF.

More than two-thirds of Gen Z investors held exchange-traded funds (ETFs), the largest proportion of any generation.  

The most traded ASX ETFs among Gen Z investors were: BetaShares Nasdaq 100 ETF (ASX: NDQ), iShares Global 100 ETF (ASX: IOO), iShares S&P 500 ETF (ASX: IVV), and Vanguard Australian Shares Index ETF (ASX: VAS).

Average value of portfolios

The average Gen Z shares portfolio on CommSec was worth about $20,000.

Millennials’ portfolios were worth an average $66,000.

The average Gen X shares portfolio was worth $233,000.

Baby boomers held the most wealth, with the average portfolio worth $541,000.

The average number of shares held within a portfolio was surprisingly small.

Gen Z portfolios had, on average, three stocks or ETFs.

Baby boomers had an average of eight shares in their portfolios.

The post ASX shares investors are getting younger and trading more often: CBA report appeared first on The Motley Fool Australia.

More reading

• 11 ASX 200 shares with reaffirmed buy ratings post-results
• How CSL shares skyrocketed 39% in August
• Westpac shares are under pressure: Is it time to buy the dip?
• Why Zip shares took investors on a wild ride in August
• Buy, hold, sell: PLS Group, Catalyst Metals, Sandfire Resources shares

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, CSL, DroneShield, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended CSL, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is an important part of building long-term wealth, but the money is generally locked away until retirement.

That is why I also like the idea of building a separate ASX share portfolio that can grow alongside it.

Here is how I would approach it.

I would make regular investing part of the plan

I would start by deciding how much money I could comfortably invest on a regular basis.

It might be $500 a month, $1,000 a month, or simply whatever is left after other financial commitments.

The important thing for me would be consistency. I would rather steadily build positions in good businesses than spend months waiting for the perfect time to enter the market.

Share prices will inevitably fluctuate, but regular investing means I can keep adding during both strong and weak periods.

I would focus on businesses that can keep growing

For a portfolio designed to build wealth outside superannuation, I would want companies with opportunities that extend well beyond the next year or two.

Xero Ltd (ASX: XRO) is the type of business I have in mind. It already serves millions of small businesses, but its potential global market is far larger. Xero can keep adding customers while expanding the financial tools available through its platform.

I would also consider businesses such as ResMed Inc. (ASX: RMD), where long-term demand could benefit from more people being diagnosed and treated for sleep apnoea.

I would not expect every investment to rocket higher. I would simply want a collection of quality businesses capable of increasing earnings and becoming more valuable over many years.

I would keep the portfolio diversified

Owning ASX shares outside superannuation also gives me the freedom to build the portfolio around my own preferences.

I could combine growth companies with more established businesses, such as big four bank National Australia Bank Ltd (ASX: NAB) or supermarket operator Coles Group Ltd (ASX: COL).

An exchange-traded fund (ETF) could make diversification even easier. The Vanguard MSCI Index International Shares ETF (ASX: VGS), for example, would give me exposure to a large collection of global companies alongside my Australian holdings.

I think that mix would make me less dependent on any one company, sector, or even the Australian economy.

I would give the portfolio a purpose

One reason I like building wealth outside superannuation is flexibility.

The portfolio could eventually help fund an earlier retirement, reduce working hours, pay for travel, or simply provide another financial asset that is accessible before preservation age.

During the building stage, I would generally reinvest dividends and leave successful investments alone.

But knowing the money is accessible gives the portfolio a different role from superannuation.

Foolish takeaway

I see an ASX share portfolio outside superannuation as something I could build quietly over many years.

Regular investing, quality businesses, and sensible diversification would form the foundation.

Over time, the goal would be to create another meaningful pool of wealth that gives me more choices well before traditional retirement arrives.

The post How I’d use ASX shares to build wealth outside my superannuation appeared first on The Motley Fool Australia.

More reading

• 11 ASX 200 shares with reaffirmed buy ratings post-results
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Xero shares jump 33% from a 7-year low: Buy, sell or hold?
• Own BHP, Woodside or Coles shares? Here’s what investors should know
• Are these ASX tech stocks finally a buy again?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telix Pharmaceuticals Ltd (ASX: TLX) shares jumped another 5% to $16.44 in Thursday afternoon trading, taking the ASX healthcare stock close to double its value since early February.

After such a stunning run, the obvious question is: where do brokers see Telix shares going over the next 12 months?

A powerful moat

Telix operates in one of the most specialised corners of healthcare: radiopharmaceuticals. These products combine radioactive isotopes with targeted therapies and diagnostics, helping doctors detect and treat diseases such as cancer with greater precision.

Importantly, this isn’t an industry where newcomers can simply walk in and compete overnight. Telix has built specialised capabilities, commercial infrastructure and a growing portfolio of products.

Turning a corner

Telix shares really turned a corner in February following a series of positive announcements from the company.

In August, Telix reported a 22% year-on-year increase in revenue to US$477 million, tracking towards the upper end of its FY26 guidance. Gross margin improved to 55%, while its Precision Medicine segment delivered an impressive 65% margin.

Adjusted EBITDA jumped 146% to US$52 million, while profit after tax reached US$38 million. That included a US$40 million payment from Regeneron.

Telix also reaffirmed its FY26 revenue and other income guidance of more than US$1 billion, with research and development expenditure expected to be between US$230 million and US$270 million.

That’s a powerful combination for Telix shares: revenue growth, expanding margins and improving profitability.

Can Telix shares keep climbing?

According to TradingView data, the analyst community remains remarkably bullish.

Fourteen of 17 analysts rate Telix shares a buy or strong buy, while the remaining three have a hold rating. The average price target sits at $25.05, implying potential upside of roughly 53% from $16.44 at the time of writing.

But there is a dissenting voice worth considering.

Bell Potter was pleased with Telix’s first-half performance but warned that competition could weigh on revenue later in the year. The broker now believes Telix shares are approaching fair value.

As a result, Bell Potter downgraded the stock from buy to hold while retaining its $19 price target.

That target still represents potential upside of roughly 16% from $16.44. However, the downgrade raises an important question after Telix’s extraordinary gains: how much of the good news is already priced in?

Foolish takeaway?

For investors, the bull case remains compelling. Telix is growing rapidly in a specialised market, profitability is improving, and most brokers still see substantial upside. But after a 98% surge, expectations are inevitably higher.

Telix shares may have plenty more room to run, but investors are no longer buying an undiscovered biotech. They’re buying a rapidly growing healthcare company with a much higher valuation and much higher expectations.

The post Telix shares are up 98%: Is there more upside to come? appeared first on The Motley Fool Australia.

More reading

• Telix shares are tumbling. Is the stock finally at fair value?
• Why were Telix shares just downgraded?
• 5 things to watch on the ASX 200 on Friday
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Telix Pharmaceuticals delivers robust half-year earnings and pipeline progress

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

S&P/ASX 200 Index (ASX: XJO) shares are up 0.55% at 9,027.8 points on Thursday.

Following the August reporting season, brokers have reviewed their ratings and 12-month price targets on hundreds of ASX stocks.

Here are some companies that scored reaffirmed buy ratings following their latest financial reports.

CSL Ltd (ASX: CSL)

The CSL share price is $175.12, up 0.7% today.

Over the past month, this ASX 200 healthcare share has ripped 41% higher.

Morgans renewed its buy rating on CSL shares with a 12-month price target of $187.71.

This suggests a potential 7% upside ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $63.69, up 2.5% today.

This ASX 200 mining share has ascended 10% over the past month.

RBC Capital reiterated its buy rating on Mineral Resources shares with a price target of $80.

This implies a potential 25% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $8.26, up 7.4% today.

This ASX 200 energy share has increased 8% over the past month.

Citi renewed its buy rating on Santos shares.

The broker raised its 12-month price target from $8.30 to $9.

This suggests a potential 9% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $64.01, down 1% today after going ex-dividend.

Over the past month, this ASX 200 copper share has risen 5%.

Morgan Stanley reaffirmed its buy rating on BHP shares.

The broker raised its 12-month target from $67.50 to $68.

This suggests a potential 6% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is $15.46, up 2.3% today.

This ASX 200 mining share has leapt 10% over the past month.

JP Morgan reiterated its buy rating on Lynas shares with a price target of $19.10.

This implies a potential 23% upside ahead.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is 97 cents, up 1% today.

Over the past month, this ASX 200 communications share has fallen 2%.

Morgan Stanley reaffirmed its buy rating on Nine shares with a 12-month target of $1.40.

This suggests a potential 42% upside ahead.

Coles Group Ltd (ASX: COL)

The Coles share price is $23.58, up 0.3% today.

Over the past month, this ASX 200 consumer staples share has fallen 3%.

Morgan Stanley reiterated its buy rating on Coles shares.

The broker increased its price target from $25 to $25.80.

This implies potential capital gains of 9% ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $9.35, up 1.3% today.

This ASX 200 travel share has fallen 9% over the past month.

Morgan Stanley renewed its buy rating on Qantas shares with a $12.80 target.

This implies potential capital growth of 36% over the next year.

NextDC Ltd (ASX: NXT)

The NextDC share price is $12.70, down 0.2% today.

Over the past month, this ASX 200 tech share has fallen 6%.

UBS renewed its buy rating on NextDC shares with a $23.45 target.

This suggests a potential 85% upside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.31, up 1.8% today.

Over the past month, this ASX 200 uranium share has soared 20%.

Canaccord Genuity renewed its buy rating on Paladin Energy shares.

The broker raised its 12-month price target from $15.40 to $15.80.

This suggests a potential 40% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.52, down 0.3% today.

Over the past month, this ASX 200 travel share has fallen 13%.

JP Morgan renewed its buy rating on Flight Centre shares with a $15.30 target.

This suggests a potential 32% upside ahead.

The post 11 ASX 200 shares with reaffirmed buy ratings post-results appeared first on The Motley Fool Australia.

More reading

• How CSL shares skyrocketed 39% in August
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Own BHP, Woodside or Coles shares? Here’s what investors should know
• Buying Santos shares? Here’s why the company is celebrating this production milestone
• How to invest in quantum computing on the ASX

Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group, CSL, Flight Centre Travel Group, and Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

August was a great month for CSL Ltd (ASX: CSL) shares.

Not to mention the company’s shareholders.

In the month just past, the S&P/ASX 200 Index (ASX: XJO) gained a respectable 1.1%.

But the Aussie biotech giant left those gains in the dust.

Indeed, on 31 July, you could have bought CSL shares at market close for $123.06. When the closing bell sounded on 31 August, those shares were swapping hands for $171.57 apiece.

This put the ASX 200 biotech stock up a whopping 39.4% in August.

And this isn’t some microcap stock we’re talking about here. CSL commands a market cap of nearly $84 billion.

What sent CSL shares soaring in August?

At the beginning of August, the CSL share price was down more than 53% over the previous 12 months.

With investors seemingly sensing that the company’s ‘reset’ process is gaining traction, bargain hunters sent shares in the ASX 200 biotech up 9.4% by market close on 17 August.

Then, on 18 August, CSL announced its FY 2026 results.

Now, full year revenue of US$15.8 billion was down 1% from FY 2025. However, that significantly beat the company’s revised guidance (issued in May) of US$15.2 billion.

And CSL also operated at a loss, with reported net profit after tax (NPAT) coming in at a loss of US$2.6 billion.

Still, management declared an unfranked final dividend of $2.277 a share, down 7% from last year’s final dividend in Aussie dollar terms.

That passive income payout is still up for grabs, by the way. If you want to bank the final CSL dividend, you’ll need to own shares at market close on 8 September. You can then expect to get paid on 2 October.

So, why did CSL shares surge 17.3% on the day of the results release?

That looks to have been driven by expectations of a stronger year (and years) ahead.

“FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth,” CSL interim CEO Gordon Naylor said.

The ASX 200 biotech stock forecasts steady revenue in FY 2027, while it expects underlying NPAT to grow by around 5%.

Is it too late to buy the ASX 200 biotech stock today?

Despite the big surge in CSL shares in recent months, Morgans’ Damien Nguyen believes the ASX 200 biotech stock remains an appealing investment (courtesy of The Bull).

According to Nguyen, who issued a buy recommendation on CSL:

CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines. Demand for its products remain largely independent of economic conditions.

Nguyen added:

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

The post How CSL shares skyrocketed 39% in August appeared first on The Motley Fool Australia.

More reading

• 11 ASX 200 shares with reaffirmed buy ratings post-results
• CSL shares rebound 86%: Is the ASX biotech stock a buy, sell or hold for September?
• The 5 best ASX 200 stocks to buy and hold in August revealed
• Top 3 ASX shares to buy in September 2026
• CSL shares are up more than 40% in a month. What just happened in the US?

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

James Hardie Industries Plc (ASX: JHX) shares are edging higher on Thursday.

At the time of writing, the building products stock is up 1.15% to $40.38, while the S&P/ASX 200 Index (ASX: XJO) is flat at 8,983 points.

It has already been a strong year for shareholders, with James Hardie shares up around 30% since the start of 2026.

The stock traded above $43 in August before giving back some ground over the past few weeks.

So, is there still some upside left?

Why Morgan Stanley is bullish

Morgan Stanley appears to think so.

According to The Australian, analyst Joseph Michael has James Hardie among the broker’s top Australian industrial picks following reporting season.

He believes the company can keep growing faster than the broader market, helped by the AZEK acquisition, cost savings, and stronger cash flow.

Morgan Stanley estimates James Hardie could deliver around 19% more earnings than current market expectations by 2029.

And yes, that’s a pretty bullish call, particularly while the US housing market remains soft.

The latest result also gave investors some reasons to be positive. First-quarter FY27 sales jumped 64% to US$1.47 billion, while adjusted EBITDA rose 79% to US$422 million.

On a pro-forma basis, which includes AZEK in the comparison period, sales still increased 12%.

Management also lifted its FY27 outlook and now expects pro-forma adjusted EBITDA growth of 7.4% to 13.7%.

Cash flow is heading higher

The balance sheet has been one of the key concerns since the AZEK acquisition.

But there were some encouraging signs in the last quarter.

Free cash flow more than doubled to US$254 million, and the company is still targeting at least US$500 million across FY27.

The planned $840 million Euro sale of Fermacell should also give the balance sheet a boost. Around US$600 million of the proceeds is expected to go towards paying down debt, which should help bring net leverage below 2 times.

James Hardie also announced a US$250 million share buyback alongside the sale.

Would I buy at $40?

I still like the look of James Hardie shares at these levels.

The stock has already had a strong run this year, so I would not expect another easy 30% gain from here.

In addition, broker sentiment is also positive. TipRanks shows 7 buy ratings and 4 holds, with an average price target of $44.84.

That’s around 11% above the current share price.

And if the company keeps delivering on its growth plans, I think there could be more upside over the longer term.

The post This ASX 200 stock is up 30% in 2026. Here’s why I’d still buy it appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $20,000 in ASX shares this spring
• ASX 200 mining shares outperform in final week of earnings season
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday
• James Hardie sells European business, launches share buyback
• Here are the top 10 ASX 200 shares today

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.

Westpac Banking Corp (ASX: WBC) shares have been under pressure, falling around 9% over the past 12 months. At the current share price of $34.91, the $117 billion ASX bank stock is trading close to its 52-week low.

The pullback has made the valuation more appealing, but is it enough to make Westpac shares a buy? Let’s see what the experts think.

Solid financial results, but…

Westpac is certainly not a bad bank. It has millions of customers, a huge deposit base, and is one of Australia’s largest mortgage businesses. It is also investing in improving its technology and strengthening areas such as business banking.

The latest quarterly profit itself was reasonably solid. Westpac shares reported $1.8 billion of net profit excluding notable items, up 2% compared with the first-half quarterly average. Net interest margin was also steady at 1.89%.

However, there are some warning signs beneath the surface. Mortgage application volumes declined as competition intensified and borrowers continued to navigate interest-rate uncertainty. Westpac also expects margins to come under further pressure in the near term.

For a major bank whose profitability is heavily influenced by lending margins, that’s not exactly music to shareholders’ ears.

Westpac’s investor presentation showed mortgage applications slowing noticeably. Average monthly applications were around 29,000 during the third quarter, with the post-budget run rate dropping further to approximately 26,000.

That’s important because home lending is a huge part of Westpac’s business.

Concerns about the growth outlook

There is an upside for investors, though. Westpac shares trade at a lower price-to-earnings ratio than Commonwealth Bank of Australia (ASX: CBA) and offer a higher dividend yield. That could appeal to investors who prioritise income or want to pay a lower multiple for a major Australian bank.

The market’s hesitation appears to centre on the growth outlook. The key question is whether slowing lending growth and margin pressure can be offset by continued cost discipline and strong credit quality.

Westpac expects the operating environment to remain highly competitive, particularly in mortgages. Management will also be watching consumer spending, credit risks and regulatory changes closely.

What do analysts think?

TradingView data shows nine of 16 brokers rate Westpac shares as sell or strong sell, while six have a hold rating and just one has a strong buy rating. The average price target is $33.38, below the current share price.

The team at Red Leaf recently named Westpac shares as a sell. It highlights the increasingly competitive environment as a reason for caution, particularly given Westpac’s valuation. Red Leaf commented:

The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive. Mortgage pricing is aggressive, deposit competition remains intense and the scope for sustained margin expansion appears limited. Westpac’s dividend remains attractive, but investors should also consider opportunity cost. We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.

Foolish takeaway

For income-focused investors, Westpac’s dividend and lower valuation could make the recent weakness in the share price interesting.

But with mortgage competition intensifying and margins under pressure, the case for buying the dip isn’t quite as clear-cut as the cheaper share price might suggest.

The post Westpac shares are under pressure: Is it time to buy the dip? 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.

If you’re buying Zip Co Ltd (ASX: ZIP) shares, you’re likely aware that the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock is well-known for its significant volatility.

And that volatility was on clear display in August.

Zip shares closed on 31 July trading for $2.55. When the closing bell rang on 31 August, shares were changing hands for $2.50 apiece.

This put the share price down 2.0% over the month just past, underperforming the 1.1% gains posted by the ASX 200.

Now, I know a 2% monthly decline doesn’t sound particularly volatile.

But here’s the thing.

On 20 August, Zip stock rocketed 18.2%.

The following day, shares crashed 15.7% as profit-taking looks to have taken the lead.

It’s enough to have you reaching for your Dramamine.

Here’s what’s been happening.

What’s been sending Zip shares on a wild ride?

August saw a few headwinds pick up for the ASX 200 BNPL stock.

Among these were rising expectations that inflation in its two dominant markets, Australia and the United States, may take longer than hoped to bring down within those countries’ central bank target ranges.

That’s led to higher prospects of interest rate hikes from both the US Fed and the RBA. And BNPL stocks like Zip shares have proven highly sensitive to interest rate moves.

Investors also have high growth expectations for the company. Which Zip delivered on when it reported its FY 2026 results on 20 August.

What did Zip report for FY 2026?

If you’ve been paying attention, you’ll have noted that 20 August was the day that Zip shares surged 18.2%, closing the day at $3.05 apiece.

Investors were overheating their buy buttons after the company achieved some record-breaking results.

Over the 12 months, Zip increased its active customers by 3.7% from FY 2025, up to 6.5 million. And the company saw a 27.2% lift in its total transaction volume (TTV) to $16.7 billion, driving a 24.7% increase in full-year revenue to $1.34 billion.

Zip also achieved record cash earnings before taxes, depreciation and amortisation (EBTDA) of $268.9 million, up 57.9% year on year.

And with the BNPL stock’s operating margin increasing by 4.2% to 20% in FY 2026, Zip posted a net profit after tax (NPAT) of $116.4 million, up 45.7% from the prior year.

The company also expects to deliver more earnings growth in the current financial year, targeting cash EBTDA of $340 million in FY 2027, representing a 26% increase from FY 2026.

Commenting on the results that sent Zip shares flying on the day, CEO Cynthia Scott said:

Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale.

In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

The post Why Zip shares took investors on a wild ride in August 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.