Author: openjargon

The ARB Corporation Ltd (ASX: ARB) share price is in focus today after the 4×4 accessories manufacturer announced a 3.8% drop in FY26 sales revenue to $702.0 million, while net profit after tax slid 5.2% to $92.4 million.

What did ARB Corporation report?

• FY26 sales revenue: $702.0 million, down 3.8% year on year
• Net profit after tax (NPAT): $92.4 million, down 5.2%
• Basic earnings per share: $1.11, down 5.9%
• Fully franked interim dividend: 34 cents paid in April 2026
• Fully franked final dividend: 35 cents to be paid in October 2026 (unchanged)
• Net cash holdings: $47.9 million; zero debt as at 30 June 2026

What else do investors need to know?

Despite a challenging year for new vehicle sales and macroeconomic headwinds, ARB managed to hold margins firm and maintain its dividend. The most significant sales decline came from Original Equipment Manufacturer (OEM) customers, down 27.2%, reflecting a lull between new vehicle model cycles and supply constraints for major platforms like the Ford Ranger and Toyota HiLux.

International performance was mixed, with export sales slightly up by 0.5% to $268.4 million. North America and Asia showed growth, partly offsetting declines in the UK and New Zealand. ARB successfully launched operations in China and started direct wholesale operations in Africa, highlighting its push into emerging markets.

What’s next for ARB Corporation?

Looking ahead, ARB is betting on the ongoing recovery of new vehicle sales, particularly for Toyota and Ford platforms, to drive a return to growth. The company plans further investment in its retail network through the Preferred Partner Program and store expansions, as well as broadening its engineering and manufacturing capabilities.

Internationally, ARB aims to leverage new product launches, deeper partnerships with OEMs—especially in the US—and stronger distribution across emerging markets. With a strong cash position and no debt, management says ARB is well placed for long-term, sustainable growth as vehicle supply and consumer sentiment improve.

ARB Corporation share price snapshot

Over the past 12 months, ARB shares have declined 57%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 3% over the same period.

View Original Announcement

The post ARB posts profit and sales drop but holds dividend steady appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Bank of Queensland Ltd (BOQ) share price is in focus after the release of its FY26 results, which saw statutory net profit after tax surge 88% year on year to $250 million, while cash earnings after tax dipped 7% to $358 million.

What did Bank of Queensland report?

• Statutory net profit after tax: $250 million, up 88% on FY25
• Cash earnings after tax (excl. notable items): $358 million, down 7% on FY25
• Net interest margin: 1.70%, up 6 basis points on FY25
• 2H26 fully franked dividend: 20 cents per share
• Special dividend: 15 cents per share, paid in August 2026
• Common equity tier 1 (CET1) ratio: 11.64%, up 70 basis points on FY25

What else do investors need to know?

BOQ continued to simplify its operations, delivering 82% of its productivity program and successfully migrating all ME Bank customers onto its new digital platform. Notably, the partnership with Challenger Limited enabled a capital-light approach to equipment finance through a $3.6 billion whole-of-loan sale and forward flow arrangement, enhancing capital efficiency and allowing a special capital return to shareholders.

The group’s business banking arm delivered 16% commercial lending growth, focused on industries like health and agriculture, while home lending contracted 8%, reflecting transformation activity and competitive market pressures. BOQ’s cost discipline saw expenses rise just 2% (excluding notable items), and the cost-to-income ratio edged up to 65.4%.

What did Bank of Queensland management say?

Managing Director & Chief Executive Officer Rod Finch said:

FY26 was a year of consistent delivery for BOQ. We completed the ME migration, transitioned mortgage origination to digital channels, and continued to grow our Business Bank. All ME customers are experiencing an end-to-end digital banking proposition. These achievements reflect our progress in simplifying the bank, strengthening our risk foundations and investing in a scalable digital platform

We maintained disciplined cost management and further strengthened our capital position. Reflecting the Group’s resilient financial position and strong capital levels, we returned 55 cents per share to shareholders during the year, including a fully franked special dividend of 15 cents per share.

As we enter FY27, we are well positioned for a sustainable return to growth. While economic conditions remain uncertain, the foundations we have built give us confidence in our ability to deliver for our customers and shareholders.

What’s next for Bank of Queensland?

Looking ahead, BOQ is aiming for a return to growth in home lending in FY27, assisted by expanding its digital mortgage offering. Commercial lending is expected to grow at a pace similar to FY26, with a continued focus on selected industries and lending quality.

Management is targeting flat annual cost growth and expects asset quality to remain solid. The bank will keep its CET1 target range of 10.25–10.75% and maintain a dividend payout target of 60–75% of cash earnings, providing stability for shareholders. Further productivity and technology efficiencies are planned as the decommissioning of ME legacy systems and Capgemini partnership roll out in FY27.

Bank of Queensland share price snapshot

Over the past 12 months, Bank of Queensland shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

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The post Bank of Queensland earnings: FY26 profit up 88% as dividends stay steady appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Netwealth Group Ltd (ASX: NWL) share price is in focus after the company’s September 2026 quarterly update revealed funds under administration (FUA) rose to a record $139.2 billion, up 2.5% for the quarter and 15.2% on the prior year. Custodial inflows remained strong at $7.8 billion, while funds under management (FUM) climbed 24% to $36.6 billion.

What did Netwealth report?

• Total FUA increased by $3.4 billion for the quarter to $139.2 billion (up 15.2% year-on-year).
• Custodial inflows were $7.8 billion; net FUA flows totalled $3.6 billion (excluding pension payments and key outflows).
• FUM net flows reached a record $2.4 billion, lifting total FUM to $36.6 billion (up 24.0% year-on-year).
• Managed Account FUM increased 26.0% to $32.4 billion; Managed Funds rose 10.9% to $4.2 billion.
• Netwealth added 3,822 net new accounts (now totalling 186,098) and 21 new financial intermediary relationships (now 4,226).

What else do investors need to know?

Netwealth made further progress on its platform capabilities with the launch of Individual HIN and Netwealth Private, expanding into stockbroking and private wealth markets. The company also announced the acquisition of Paradino, an AI-powered adviser platform designed to boost adviser productivity, which is expected to close by October 2026.

Operational highlights included a major upgrade to the Managed Accounts platform, strengthening scalability and efficiency. Its virtual assistant Nova and the new Research Hub have supported advisers with tens of thousands of enquiries and investment research in the quarter. Regulatory-wise, Netwealth is defending a class action relating to First Guardian investments but says it continues to deliver on its RISE plan.

What did Netwealth management say?

Chief Financial Officer Hayden Stockdale said:

Our record flows and ongoing investment in technology reflect our focus on supporting adviser growth and client outcomes. Our strategic initiatives are well on track.

What’s next for Netwealth?

Looking ahead, Netwealth has updated its FY27 guidance (before Paradino) to target FUA net flows of $17–19 billion and maintain a strong EBITDA margin of approximately 47%. The company expects a low capital expenditure year with strong cash reserves and recurring revenue underpinning predictable results.

After finalising the Paradino deal, Netwealth expects a one-off EBITDA loss of around $3 million for the unit in FY27 and plans to invest a further $10 million over two years to accelerate product development. Paradino’s financials will be reported separately.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Netwealth reports record FUA and platform growth in September 2026 quarter appeared first on The Motley Fool Australia.

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

ASX growth shares can be some of the best investments to own because of how quickly they can compound in scale.

If revenue and potentially profit double in a relatively short amount of time, that could send the share price shooting higher.

There are plenty of businesses growing quickly, and the experts at Wilson Asset Management have picked out some specific names that could be compelling.

One of the businesses that could be a particularly attractive investment is Dxn Ltd (ASX: DXN). It’s a pick in the WAM Active Limited (ASX: WAA) portfolio, a listed investment company (LIC) that targets mispricing opportunities in the Australian market.

What makes this ASX growth share attractive?

DXN is a modular data centre manufacturer and operator with a presence across the Asia-Pacific region. It says it works with major government and blue-chip enterprise customers.

It recently established its first manufacturing footprint outside Australia, with a wholly owned manufacturing facility in Johor, Malaysia. The company said that current manufacturing expansion plans support future capacity growth.

The company has also established a non-binding joint venture with Super Sistem Indonesia (SSI), an existing customer and Indonesian critical digital infrastructure operator, to build a strategic footprint in a region observing rapid digital infrastructure growth.

Wilson Asset Management noted that the DXN share price rose by 53% in September as investors continued to respond positively to the company’s FY26 result, which was released at the end of August.

That result highlighted a record order backlog and growing demand for artificial intelligence (AI) related data centre infrastructure.

WAM said it remains positive on DXN’s outlook due to its growing exposure to the rapidly expanding AI data centre sector, supported by “strong contract momentum” and pipeline opportunities across Australia and the Asia-Pacific region.

The fund manager highlighted that speed to market is an increasingly critical factor in the sector. It’s rapidly expanding capacity throughout Australia and Asia, with delivery across multiple customers.

In the FY26 update, the company said that it secured its maiden high-performance computing (HPC) contract and established a pathway to campus-scale, indicatively valued at US$200 million, though it’s contingent on the successful delivery of the proof-of-concept module.

DXN also said in its FY26 results that it entered FY27 with growing demand across AI infrastructure markets, with its second AI HPC contract win valued at approximately $12.2 million. The ASX growth share said this demonstrates “repeatable demand for DXN’s AI-ready modular platform across markets”.

Overall, this company is tapping into an area of strong growth where a lot of real money is being spent.

The post This is an exciting ASX growth share that experts think is a buy appeared first on The Motley Fool Australia.

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

At age 60, you’ve reached your first major superannuation milestone.

Age 60 is the preservation age where you can start accessing your superannuation tax-free, provided you’ve permanently retired.

It’s the ultimate transitional year for both your super and your retirement. It triggers a shift between your accumulation phase to a partial or full pension phase, bridging the gap between your working years and your retirement years.

But not everyone is ready. 

If you’re not prepared to quit employment, or you’re worried you haven’t got enough saved away, you can hold off until you reach age 65. At this point, you have full access to your superannuation savings regardless of whether you’re still working or not.

At this point, you should have a retirement budget and a plan, and most importantly, know whether your superannuation is on track to meet your goals.

So, what does it cost to retire in Australia in FY27?

And how much superannuation should you have saved at age 60 to afford the retirement lifestyle you want?

Here’s a breakdown.

The cost of retirement in Australia

Non-profit advocacy bodies have spent years trying to calculate benchmarks for Aussies in retirement.

The Association of Superannuation Funds of Australia (ASFA) has created a retirement standard with two main options for retirement: a modest lifestyle and a comfortable one. Both calculations assume you own your home outright and that you’ll receive at least a partial Age Pension payment.

A modest retirement means you’d need to live on a tight budget in your retirement. It assumes you can cover very basic needs and requirements, including food costs, essential bills, low-tier health insurance, and minimal leisure activities or meals out.  ASFA estimates this will cost single retirees around $36,548 per year and around $52,690 for a couple. 

Then there is the comfortable retirement option. This is one that allows retirees to have a good standard of living well above the bare minimum. It allows Australians enough money to finance top-tier private health insurance, a reasonable grocery budget, home repairs, regular leisure activities, meals out, or some travel. It is expected to cost around $56,166 per year for singles or $78,998 for couples. 

But not every estimation is the same. 

SuperGuide uses a different, more straightforward calculation. It assumes that you’ll need around 70% of your annual working income to maintain your lifestyle in retirement (assuming you own your home outright and that you’ll retire at age 65).

So how much do I need in my superannuation to afford to retire?

Assuming you’re going for a comfortable retirement, using ASFA’s figures, single Australians will need around $630,000 in superannuation, or couples could use closer to $730,000.

The catch is that these figures assume you’ll retire at age 67 and need to fund around 10 to 15 years of retirement living.

SuperGuide’s calculation depends entirely on the pre-retirement income you’re happy to live off. 

For example, if you earn around $100,000 per year before you retire, you’ll need around $750,000 to $1.125 million in your super at retirement, assuming you need to fund the same 10 to 15 years.

How much should I have in my superannuation at age 60 to reach this goal?

I’ve crunched the numbers using ASFA’s online super detective tool and, assuming you have an income of around $100,000 per year, Australians should aim to have a superannuation balance of around $457,500 by age 60 to be on track for retirement at age 67.

Of course, some Aussies don’t want to wait that long. If you want to retire a couple of years earlier, around age 65, you’ll need to have closer to $505,000 saved by the time you’re 60.

To get SuperGuide’s $750,000 in your superannuation at age 65, you need approximately $534,000 to $588,000 at age 60. For the higher $1.125 million bracket, you’d need approximately $765,000 to $881,000 at age 60 to be considered on track.

How does this compare to your own superannuation balance?

The post How much should I have in my superannuation by age 60? appeared first on The Motley Fool Australia.

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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 Contact Energy Ltd (ASX: CEN) share price is in focus today as the company released its September 2026 Monthly Operating Report, revealing mass market electricity and gas sales rose to 484 GWh, up from 372 GWh a year ago, while the wholesale business saw total net revenue per MWh decline compared to last year.

What did Contact Energy report?

• Mass market electricity and gas sales were 484 GWh (September 2025: 372 GWh)
• Mass market netback was $145.99/MWh (September 2025: $150.12/MWh)
• Wholesale contracted electricity sales were 978 GWh (September 2025: 986 GWh)
• Electricity and steam net revenue was $147.46/MWh (September 2025: $162.48/MWh)
• Electricity generated or acquired for the month was 1,069 GWh (September 2025: 1,106 GWh)
• Unit generation cost (including acquired generation) fell to $37.83/MWh (September 2025: $48.79/MWh)

What else do investors need to know?

Contact Energy is progressing major renewable projects, with the Te Mihi Stage 2 geothermal plant expected online in Q3 of calendar 2027 at a project cost of $712 million, and the Glenbrook-Ohurua Battery 2 and Glorit Solar projects following in 2028. The company’s contracted gas volume for the next 12 months is 8.5 petajoules, while hydro storage levels in the South Island remain well above historical averages at 135% of mean.

New Zealand’s national electricity demand for September 2026 was down 0.5% against last year, despite the average temperature being higher than usual. Contact Energy saw growth in customer numbers and continued its strong focus on sustainability, reporting a drop in greenhouse gas emissions intensity.

What’s next for Contact Energy?

Contact Energy is actively building out its renewable generation capacity, with three large projects under way to support New Zealand’s low-carbon future. The company’s focus remains on maintaining reliable supply, managing costs, and progressing its environmental initiatives while meeting community and customer needs.

The ongoing investment in geothermal, battery, and solar capacity is expected to underpin future earnings growth. Contact Energy will keep monitoring market conditions and energy demand as it delivers on its development pipeline.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Contact Energy: September 2026 monthly operating results appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Recent weakness in the uranium industry could have created a buying opportunity for investors.

That’s the view of analysts at Bell Potter, who believe that Paladin Energy Ltd (ASX: PDN) shares could offer significant upside.

What is the broker saying?

Bell Potter was a touch disappointed with Paladin Energy’s quarterly update, highlighting that production was lower than expected. 

However, sales volumes were ahead of estimates and average realised pricing was up strongly quarter on quarter. It said:

PDN reported quarterly U3O8 production of 1.0Mlb, below our 1.3Mlb estimate with a planned one-week plant shutdown and lower quality ore feed as mining focused on J pit development. Recoveries were 85% (4Q FY27 90%) and unit costs of production were up 19% QoQ to US$62/lb. Sales were 1.2Mlb (BPe 1.1Mlb) at an average realised price of US$79/lb (up 12% QoQ), reflecting stronger uranium prices and a higher portion of sales into market-linked contracts. 

PDN closed the quarter with U3O8 inventory of 2.0Mlb. At 30 September 2026, PDN had cash and investments of US$209m, net cash (excluding leases) of US$181m and available liquidity of US$279m (30 June 2026 net cash US$233m and available liquidity US$335m).

Looking ahead, the broker points out that management has reaffirmed its guidance for FY 2027. It adds:

PDN reiterated FY27 guidance (production 5.1-5.6Mlb (BPe 5.1Mlb); sales 4.8-5.3Mlb (BPe 4.9Mlb); and unit cost of production US$44-48/lb (BPe US$48/lb) with output 2H weighted following a scheduled plant shutdown in the current quarter. Recoveries are expected to trend higher as ore quality improves in the lower, southern benches of J pit, with unit costs to trend lower.

Paladin Energy shares tipped to rocket

According to the note, in response to its quarterly update, Bell Potter has retained its buy rating on Paladin Energy’s shares with a trimmed price target of $13.80 (from $14.50).

Based on its current share price of $7.28, this implies potential upside of 90% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has ~54% exposure to market prices out to 2030. Production at LH should improve with higher-grade mined ore feeding the processing plant. PDN continues to derisk its key growth project at PLS in Canada’s Athabasca Basin.

The post Could Paladin Energy shares return 90% in 12 months? appeared first on The Motley Fool Australia.

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

Megaport Ltd (ASX: MP1) shares have been on fire this year.

Since the start of the year, the cloud infrastructure provider’s shares have risen almost 50%.

That is despite the company’s shares pulling back 25% from their 52-week high.

The good news is that the team at Bell Potter doesn’t believe it is too late to climb on board the Megaport train.

In fact, the broker believes there’s potential for big returns over the next 12 months.

What is Bell Potter saying?

Bell Potter notes that in its recent initiation note it underestimated Megaport’s growth potential and has upgraded its estimates to account for its recent contracts update. It said:

We have reviewed our forecasts for Megaport post our recent initiation and also the contracts update in late September and decided we were too low, particularly in FY28. The key rationale is we estimate the annual underlying EBITDA from the GPU pool to be around $200m when fully utilised and, given this will ramp up in 1HFY28, we expect the EBITDA contribution in FY28 to be around $100m. 

This will add to the underlying EBITDA of the core business which Megaport said in its recent contracts update will have an exit run-rate of >$650m in FY27. The total underlying EBITDA in FY28, therefore, should be >$750m and this is before any growth in the Network Services business which recently has been growing its top line in the mid to high teens and is expected to continue doing so for at least the short to medium term. All this makes our original underlying EBITDA forecast of $726m look too low and suggests a total figure of up around $770m looks more appropriate.

Big potential returns

Although Bell Potter has trimmed its valuation to reflect changes in peer multiples, it still sees potential for big returns between now and this time next year.

According to the note, the broker has retained its buy rating on Megaport shares with a price target of $26.00 (from $27.00). 

Based on its current share price of $17.39, this implies potential upside of approximately 50%.

Commenting on its view of the stock, Bell Potter said:

We have reduced the multiple we apply in our EV/EBITDA valuation from 10x to 9x and increased the WACC we apply in the DCF from 10.1% to 10.3% given the recent weakness in the share prices of both the domestic and offshore comps. The net result is a 4% decrease in our target price to $26.00 which is still a material premium to the share price so we maintain our BUY recommendation. 

We continue to have a positive view on the stock due to valuation (FY28 EV/EBITDA of only 6x), strong forecast growth (which is fully funded), track record of execution, high visibility of earnings, AI exposure and differentiated business model (distributed inference).

The post Could high-flying Megaport shares rise another 50%? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

ASX small-cap shares don’t get a lot of attention, but they could be among the best investment opportunities given how much they could grow.

Small businesses are usually much earlier on with their growth journeys than ASX blue-chip shares. This means the shares could have a lot of capital growth potential ahead, which is obviously compelling.

But, on top of that, many ASX small-cap shares aren’t priced for how much growth they could achieve in the long term. In other words, they can be significantly undervalued for their growth outlook.

One small business to consider is COG Financial Services Ltd (ASX: COG), according to the investment team at Wilson Asset Management (WAM). It’s one of the holdings in the listed investment company (LIC) WAM Research Ltd (ASX: WAX) portfolio, which targets the most compelling undervalued growth opportunities in the Australian market.

Compelling ASX small-cap share

WAM describes COG Financial Services as a business that’s Australia’s leading aggregator of finance brokers and equipment leasing brokers. Its net assets financed (NAF) were $9 billion in FY26. It also operates in the salary packaging sector, including novated leases.

In FY26, total salary packaging customers were 31% higher year over year, to 68,510, and novated lease customers increased by 98%, to 22,281.

WAM highlighted that the COG Financial Services share price rose 22% in September, following a stronger-than-expected FY26 full-year result and expectations of further earnings upgrades.

The investment team noted that the ASX small-cap share’s management is targeting at least 10% earnings growth in FY27, supported by momentum in its salary packaging business and contributions from recent acquisitions.

Wilson Asset Management believes the COG Financial Services share price remains attractive and could improve as salary packaging becomes a larger part of group earnings.

The positive outlook for the business is also supported by opportunities for further acquisitions and earnings upgrades.

Over the medium term, improvement in the broader economic environment could benefit the company’s broking and aggregation business, which has a significant presence in the small and medium-sized enterprise (SME) asset finance market.

How much is the COG Financial Services share price undervalued?

Other experts are also optimistic about the potential for this ASX small-cap share to deliver good returns.

According to CMC Invest, there have been three analyst ratings on the business within the last three months, all of which were buy ratings.

The average price target from those three analysts is $2.10, implying a possible 18% rise over the next year from its level at the time of writing. In other words, it could be one to watch.

The post This ASX small-cap share is predicted to deliver market-beating returns appeared first on The Motley Fool Australia.

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped into the red. The benchmark index fell 0.65% to 8,727.9 points.

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

ASX 200 expected to fall

It looks set to be a subdued session for Australian investors following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% lower this morning. In the United States, the Dow Jones fell 0.1%, the S&P 500 dropped 1.1%, and the Nasdaq sank 1.9%.

Annual general meetings

A number of ASX 200 shares are holding their annual general meetings on Thursday and could provide trading updates. This includes 4×4 parts company ARB Corporation Ltd (ASX: ARB), mining giant South32 Ltd (ASX: S32), and wine leader Treasury Wine Estates Ltd (ASX: TWE).

Oil prices rise

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS)and Santos Ltd (ASX: STO) could have a good session following a positive night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.1% to US$95.15 a barrel and the Brent crude oil price is up 0.4% to US$106.09 a barrel. This follows news of the sinking of a container ship in the Strait of Hormuz.

Buy Megaport shares

Megaport Ltd (ASX: MP1) shares could have major upside potential according to Bell Potter. This morning, the broker has retained its buy rating on the cloud infrastructure provider’s shares with a trimmed price target of $26.00. It said: “We continue to have a positive view on the stock due to valuation (FY28 EV/EBITDA of only 6x), strong forecast growth (which is fully funded), track record of execution, high visibility of earnings, AI exposure and differentiated business model (distributed inference).”

Gold price drops

It could be a tough session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.35% to US$4,120.8 an ounce. A hotter than expected US inflation reading has sparked rate hike fears.

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

More reading

• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• Here are the top 10 ASX 200 shares today
• Santos share price jumps to fresh multi-year high: Here’s what brokers tip next
• Woodside, New Hope, Flight Centre shares: Buy, hold, or sell?
• I searched for the next great ASX compounder. These shares deserve attention

Motley Fool contributor James Mickleboro has positions in Megaport, Treasury Wine Estates, and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Megaport, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.