Author: openjargon

Commonwealth Bank of Australia (ASX: CBA) shares have long been a favourite with passive income investors.

And it is easy to see why. The banking giant generates billions of dollars in profit each year from mortgages, business lending, credit cards, deposits, and other financial services.

But rather than keeping all those profits inside the business, CBA returns a large portion to shareholders through dividends.

Better still, those dividends are fully franked, which can make them particularly attractive to Australian investors.

So, how much would you need to invest in CBA shares to generate $10,000 of passive income each year?

Let’s take a look.

CBA’s dividend outlook

The market is currently expecting the company to deliver earnings per share of $6.67 in FY 2027, followed by $6.86 in FY 2028.

These earnings are expected to support fully franked dividends of $5.15 per share in FY 2027 and $5.30 per share in FY 2028.

At the current CBA share price of $155.25. this represents dividend yields of approximately 3.3% and 3.4%, respectively.

Those are admittedly not the biggest yields available on the Australian share market, but they are no doubt attractive in the current environment.

How many CBA shares would I need?

Let’s use the FY 2027 dividend forecast of $5.15 per share.

To receive $10,000 in cash dividends, an investor would need approximately 1,942 CBA shares.

At the current share price of $155.25, buying that many CBA shares would set you back approximately $301,496.

The fully franked nature of those dividends is worth remembering as well. Assuming an investor can make full use of the franking credits, $10,000 of cash dividends would come with approximately $4,286 of franking credits.

That would give the income a grossed-up value of roughly $14,286 before personal tax. Not bad!

What about in FY 2028?

The numbers improve slightly if CBA’s dividend grows as expected.

Using the forecast FY 2028 dividend of $5.30 per share, an investor would need around 1,887 shares to generate $10,000 of annual cash income.

That would require an investment of approximately $292,957.

Of course, CBA’s share price will almost certainly be different by then and dividends are never guaranteed. But based on current forecasts, the numbers give us a good indication of the scale required.

All in all, for someone wanting $10,000 a year in passive income from CBA shares alone, they will need roughly $300,000 invested at current levels.

The post How much do I need to invest in CBA shares for $10,000 of passive income? appeared first on The Motley Fool Australia.

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• How much passive income can I earn off a $550,000 superannuation balance?
• $10,000 invested in BHP and CBA shares three years ago is now worth…
• Buy, hold, sell: BHP, CSL, CBA shares
• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?

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.

BHP Group Ltd (ASX: BHP) shares have had a stellar year.

As have the miner’s shareholders.

In Wednesday afternoon trade, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant were changing hands for $64.13 apiece.

That sees the share price up 56.5% over 12 months, smashing the 1.0% gains posted by the benchmark index over this same period.

And if you’re wondering why that figure doesn’t match up with the headline number, that’s because we haven’t factored in the BHP dividends yet.

Over the last 12 months BHP has paid – or shortly will pay – two fully franked dividends totalling (a rounded) $2.42 a share. The stock traded ex-dividend last Thursday.

So, if we add that back into the recent share price, then the accumulated value of BHP shares has gained an impressive 62.4% since market close on 9 September 2025.

That remarkable run saw BHP retake the crown of biggest ASX stock from Commonwealth Bank of Australia (ASX: CBA) earlier this year.

At the recent share price, BHP has a market cap of around $327 billion.

But after that kind of strong run, is the Aussie mining giant still a good buy today?

Should I buy BHP shares today?

Gray Perry Wealth Advisers’ Blake Halligan recently ran his slide rule over the ASX miner (courtesy of The Bull).

“BHP remains a high-quality diversified miner with large, low-cost assets and increasing exposure to copper,” he said.

Commenting on BHP’s FY 2026 results, reported on 18 August, Halligan said:

The company’s fiscal year 2026 result was strong, with it generating attributable profit of $US9.8 billion, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. Rising copper demand from electrification and data centres support the longer-term outlook, while iron ore operations remain highly competitive.

Explaining his hold recommendation on BHP shares, Halligan concluded, “Commodity-price sensitivity and project execution risks support retaining BHP rather than increasing exposure.”

One ASX 200 stock to buy now

While Hannigan issued a hold recommendation on BHP shares, he had a more bullish outlook on Seek Ltd (ASX: SEK).

“Seek operates a leading online employment marketplace, with a dominant position in Australia and established operations across Asia,” he said.

Summarising his buy recommendation on Seek shares, Halligan said:

Its scalable model, strong margins and international expansion provide attractive long-term growth potential. Despite softer job-ad volumes, fiscal year 2026 net revenue rose 10 per cent and EBITDA increased 15 per cent, demonstrating pricing power and operational resilience. We’re forecasting earnings to grow about 9.5 per cent annually in the next two years.

An improving return on equity and a healthy dividend further support the investment case.

The post Up 62% in a year are BHP shares now a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why I’d buy BHP and these ASX shares with $5,000
• How much passive income can I earn off a $550,000 superannuation balance?
• Copper prices just hit a record high. What does this mean for ASX copper shares?
• $10,000 invested in BHP and CBA shares three years ago is now worth…

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 recommended BHP Group. 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 subdued session and dropped into the red. The benchmark index fell 0.1% to 8,911.4 points.

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

ASX 200 expected to tumble

It looks set to be a poor session for Australian investors on Thursday following a tough night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 88 points or 1% lower this morning. In the United States, the Dow Jones fell 0.75%, the S&P 500 dropped 0.5%, and the Nasdaq was 0.65% lower.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), fund manager Perpetual Ltd (ASX: PPT), copper producer Sandfire Resources Ltd (ASX: SFR), and telco Spark New Zealand Ltd (ASX: SPK).

Oil prices jump again

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have another positive session after oil prices jumped again overnight. According to Bloomberg, the WTI crude oil price is up 3.9% to US$96.67 a barrel and the Brent crude oil price is up 3.8% to US$101.67 a barrel. Traders bid oil prices to a four-month high after fighting escalated in the Persian Gulf.

Elders downgraded

Elders Ltd (ASX: ELD) shares are close to being fully valued according to analysts at Bell Potter. This morning, the broker downgraded the agribusiness company’s shares to a hold rating (from buy) with an improved price target of $6.70. It said: “Following the recent recovery in the share price we are moving our rating from Buy to Hold. Investments in Delta and SYSMOD are the largest drivers of near term growth, however, we see the large livestock tailwinds the agency business has benefited from the past two years facing more difficult comparisons moving forward.”

Gold price rises

It could be a decent day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.2% to US$4,447.2 an ounce. This was driven by a softening US dollar.

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

More reading

• CSL shares are up 90%. How much higher can they go?
• Here are the top 10 ASX 200 shares today
• The ASX 200 is down nearly 4% in a month. Is the sell-off getting serious?
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock L1 Global Long Short Fund Ltd (ASX: GLS) could be one of the best options for investors wanting a good level of passive income. I’d rather invest in this ASX share rather than rely on the Age Pension.

L1 Global Long Short Fund Ltd is a listed investment company (LIC) which is relatively new to the ASX.

It follows the same investment strategy as the L1 Long Short Fund Ltd (ASX: LSF), which has been listed for more than eight years, but it has a global share focus rather than looking largely evenly at ASX shares and global shares.

For multiple reasons, I think the L1 Global Long Short Fund Ltd is a top pick for retirement (and wealth building).

Good passive dividend income potential

L1 Global Long Short Fund doesn’t yet have a long dividend record, but its sibling LIC has demonstrated its desire and ability to grow dividend payouts at a pleasing pace over the last few years, since 2021.

The ASX dividend stock has recently provided guidance that it’s going to significantly increase its dividend payouts in FY27, which will help boost the dividend yield.

The LIC has indicated it will increase its annual dividend per share to “at least” 8 cents in the 2027 financial year. That translates to a grossed-up dividend yield of 5.4% at the time of writing, including franking credits.

Impressively, that guided payout represents significant year-over-year growth, and I believe the dividend could grow by another 10% (or more) in FY28 compared to the guided payout in FY27.  

Effective investment strategy

The investment team in charge of this LIC combines valuation (primarily discounted cash flow) with qualitative considerations such as management quality, long-term industry and company structure and business trends to identify attractive investment opportunities.

The fund managers and analysts in charge of this LIC have several thousand company meetings a year, including one-on-one visits with company management, listed and unlisted competitors, customers, suppliers, operational personnel, regulators, consultants, unions and other parties that can help provide a deeper insight.

It’s also willing to use short selling, where it bets on share prices going down. That means it can make returns on certain stocks if the share price goes down.

At the end of July 2026, the ASX dividend stock reported that it had delivered a total return of 17.8% since its inception, beating the global share market return of 11.1% in that same timeframe since November 2025.

Since the inception of the specific global long-short strategy, which started in January 2025 and is unlisted, it has returned 58.1% compared to the global share market return of 20.1% in the same time period. Of course, past performance is not a reliable indicator of future returns.

Producing good investment returns can help fund good passive income and capital growth, which is something that the Age Pension can’t do.

Diversification

L1 Global Long Short Fund offers investors pleasing diversification.

Its portfolio typically has between 40 to 80 positions across a wide range of sectors and themes, allowing it to make returns in a variety of ways.

The company also provides effective geographic diversification across North America, Europe and Asia Pacific.

While diversification doesn’t automatically mean great returns, it can help lower the risk of being too exposed to one particular area. The global investment mandate also means that the ASX dividend stock can search far and wide for opportunities.

How many shares would it take to equal the Age Pension?

The maximum annualised Age Pension that Australians can receive right now is approximately $32,200.

To receive that level of income from L1 Global Long Short Fund, it’d take 402,500 shares if we exclude franking credits and 281,750 shares if we include the franking credits as part of the dividends.

Overall, I’d be excited to own that many shares, though I also think it’s a good idea to receive dividends from different sources.

The post 281,750 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• 2 great ASX dividend share buys for passive income in September

Motley Fool contributor Tristan Harrison has positions in L1 Global Long Short Fund Ltd and L1 Long Short Fund. 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 ASX shares most attractive to own are usually cheapest at the moment the market is least comfortable.

The S&P/ASX 200 Index (ASX: XJO) has slipped from an August peak of 9,282 points to around 8,901.

That is a fall of roughly 4% in a month.

Around 120 companies in the index were in the red on Wednesday, creating opportunities for investors looking to get in cheap.

Why the sell-off has created opportunities in ASX shares

The cause is relatively simple: Macquarie now expects the Reserve Bank to lift the cash rate by 25 basis points later this month.

The broker noted that trimmed mean inflation has spent 17 of the last 20 quarters above the target band.

The cash rate already sits at 4.35% after three increases this year.

Higher rates compress the multiple investors will pay for future earnings, although they may not automatically damage the earnings themselves.

With that in mind, here are three ASX shares that look a lot cheaper now that the broader market has sold off.

1. Judo Capital Holdings Ltd (ASX: JDO)

Judo Capital closed Wednesday at 99.5 cents, down almost 40% over twelve months.

Shares crashed 46% in a single session in June after the bank flagged three problem exposures and cut guidance.

The result that followed was better than the recent share price moves suggest, although increases in credit delinquencies have been a drag for the company.

FY26 statutory net profit rose 29% to $111.1 million.

Profit before tax climbed 34% to $168.1 million.

Gross loans and advances grew 18% to $14.7 billion while deposits jumped 24% to $12.2 billion.

The net interest margin widened 20 basis points to 3.13%.

Chief executive Chris Bayliss did reference particular credit issues in his speech:

FY26 has been another year of genuine momentum for Judo. While the increase in specific provisions late in the year was disappointing, the underlying performance of the Bank has remained strong, with record revenue, continued operating leverage, strong deposit growth and lending at the top end of guidance.

FY27 guidance calls for profit before tax of $210 million to $220 million, whereas the average broker target of $1.51 implies roughly 50% upside.

2. South32 Ltd (ASX: S32)

South32 is the odd one out here.

The company’s shares hit a fresh 52-week high of $5.32 on Wednesday and are up 103% over twelve months.

Not every holding bought during a sell-off has to be a bargain.

South32 earns US dollars from copper, zinc and silver, which is a completely different driver to the domestic rate cycle.

FY26 underlying earnings rose 55% to US$1.03 billion and underlying EBITDA grew 28% to US$2.46 billion. Meanwhile, total dividends lifted 55% to 9.3 US cents per share, fully franked.

Chief executive Matt Daley explained where the business is heading.

The sale of our aluminium value chain assets to Alcoa will simplify and strengthen our portfolio, positioning South32 as a leading base metals focused company with high-margin assets and a pipeline of compelling growth options in copper, zinc and silver.

3. Life360 Inc (ASX: 360)

Life360 closed at $19.64 and are down 60.6% over twelve months.

On the positive side, second quarter revenue rose 38% to US$159.0 million and adjusted EBITDA increased 53% to US$31.1 million. Monthly active users passed 102.4 million and advertising revenue reached US$22 million.

The company holds US$467.7 million in cash and guides FY26 revenue to US$650 million to US$685 million.

The shares fell anyway, because investors had priced in a bigger guidance upgrade.

Foolish takeaway

A 4% pullback is not a crash.

But what this pullback has done is separate the multiple from the earnings across much of the market at once.

All three of these ASX shares grew earnings materially in FY26, and two have been sold down heavily regardless.

For ASX investors, this could be a unique buying opportunity.

The post Top 3 ASX shares I’d buy after the most recent sell-off appeared first on The Motley Fool Australia.

More reading

• Life360 shares are 60% below broker targets. Here’s why
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• South32 shares reach fresh 52-week high: Can they keep climbing?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Medibank Private, Ansell, South32 shares

Motley Fool contributor Mark Verhoeven 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Knowing whether you have enough superannuation can be difficult.

Retirement could last for decades, living costs will change, and everyone’s idea of a comfortable lifestyle is different.

Still, there are some useful benchmarks that can give Australians an idea of what they may want to aim for.

What does a comfortable retirement cost?

The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard to estimate the spending required for different retirement lifestyles.

For Australians aged 65 to 84, ASFA currently estimates that a single person needs around $55,923 a year for a comfortable retirement. A couple needs approximately $78,566 annually.

That comfortable budget allows for things such as private health insurance, regular leisure activities, occasional restaurant meals, maintaining a reasonable car, home repairs, and some travel.

The figures are a lot lower for what ASFA describes as a modest retirement.

A single homeowner needs an estimated $36,434 annually, while a couple needs $52,473. Private renters face a higher hurdle, with estimated annual spending of $51,164 for a single person and $69,002 for a couple.

That difference shows why the amount of superannuation someone needs can vary so much depending on their circumstances.

So, how much superannuation is enough?

ASFA has helpfully provided its estimate for the superannuation balances required at age 67 to fund those lifestyles.

For a comfortable retirement, it estimates that a single person needs around $630,000, while a couple needs approximately $730,000 between them.

It is important to point out that this does not assume retirees will live entirely from investment income while preserving their original balance forever.

ASFA’s calculations assume retirees draw down their capital over retirement and receive a part Age Pension.

For a modest retirement, ASFA estimates required balances of $110,000 for a single homeowner and $120,000 for a couple.

Private renters need more. ASFA puts the required balance at around $340,000 for a single renter and $385,000 for a couple.

I would treat these as a starting point

I do not think there is one superannuation number that every Australian should aim for.

Someone who owns their home outright, has relatively low expenses, and qualifies for the Age Pension could need considerably less than someone paying rent or wanting to travel regularly.

Retirement age also makes a difference. The ASFA balance estimates are based on retiring at 67, so someone hoping to finish work much earlier may need to fund more years before or during retirement.

I would also want some room for unexpected expenses rather than planning around the minimum amount required to make the numbers work.

Foolish takeaway

ASFA’s latest benchmark suggests a single Australian needs around $630,000 in superannuation at age 67 for a comfortable retirement, while a couple needs around $730,000.

That gives investors something tangible to work towards, but I would not treat it as a universal target.

The amount I would want would ultimately depend on when I planned to retire, whether I owned my home, the lifestyle I wanted, and how much flexibility I wanted once regular employment income stopped.

The post How much superannuation do Australian retirees actually need? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares I’d buy after the most recent sell-off
• EchoIQ shares just crashed 48%. What happens now?
• Life360 shares are 60% below broker targets. Here’s why
• Why I think these are the best ASX shares to buy and hold
• Brokers are confident in the outlook for this uranium stock tipping 34% upside

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.

EchoIQ Ltd (ASX: EIQ) shares crashed 48% on Wednesday morning and closed at 64 cents.

The medical technology company told the market that the United States Food and Drug Administration had issued a Not Substantially Equivalent determination for EchoSolv HF.

EchoSolv HF is its heart failure decision support software.

Company shares traded as low as 47 cents during the session.

More than 53 million changed hands, against a one-month average of under 2.9 million.

Why EIQ shares fell so hard

The company applied through the 510(k) pathway.

That route requires a company to show its device is substantially equivalent to one already on the market.

A Not Substantially Equivalent determination means the FDA did not accept that argument.

Morgans had made EIQ’s dependence on getting this approval explicit only a week earlier.

The broker retained a speculative buy rating and a $1.85 price target at the time.

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

What the company has actually said

Echo IQ has not abandoned the application.

Upon receipt of the FDA’s determination, Echo IQ, together with its US regulatory and legal advisors, its study partners, and independent statistical experts, has commenced a detailed review of the regulatory matters raised. The Company believes there is a pathway forward for clearance under the 510(k) route and intends to engage with the FDA to further clarify the matters identified in the determination and assess all administrative and regulatory options available to Echo IQ.

Managing director Dustin Haines was measured about the setback.

Our immediate priority is to understand the matters raised in full and determine the most efficient pathway forward. We remain confident in the underlying technology, the clinical rationale for EchoSolv HF and the significant opportunity to improve the identification of patients at risk of heart failure.

Two things soften the blow.

The company holds more than $105 million in cash, so it is unlikely to run out of cash any time soon.

What’s more, the company possesses a separate EchoSolv AS platform that detects aortic stenosis.

This product is already FDA-cleared, and its commercialisation is unaffected.

What this does to the Pro Medicus deal

Here is the detail that matters most.

In June, Pro Medicus Ltd (ASX: PME) agreed to invest an initial $10 million through secured convertible notes.

It also took the right to subscribe for a further $10 million once EchoSolv HF was cleared.

As such, that second tranche is now tied to an approval that has just been refused.

However, the reseller arrangement still stands.

This agreement gives Echo IQ access to Pro Medicus customers across US health systems, and it applies to the cleared product.

Where EIQ shares go from here

Context is worth keeping in mind.

Even after halving, EIQ shares are up 124% over twelve months. They remain 392% higher for the calendar year.

Investors who bought over a year ago would still be very happy.

Foolish takeaway for EchoIQ shares

The pathway forward is a regulatory one.

EchoIQ as a company now operates somewhere between a cleared aortic stenosis business and a heart failure product with no approval date.

Before investigating further, I would want to see the company’s opinion of the FDA’s specific objections.

The post EchoIQ shares just crashed 48%. What happens now? appeared first on The Motley Fool Australia.

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

Life360 Inc (ASX: 360) shares are trading about 60% below where brokers think they should be, and the difference has a very specific cause.

The stock closed Wednesday at $19.64, whereas the average analyst target price is $31.72. Every broker covering the company rates it a buy or strong buy.

Why Life360 shares fell so far

The de-rating started well before the latest result.

The shares peaked at $55.44 in early October and then fell to an annual low of $17.91 by mid-April.

Most of that was sector-wide, as investors sold high-multiple technology names on fears that artificial intelligence could erode software business models.

ASX tech stocks then rallied through June and early August on a strong first quarter.

The second quarter update in mid-August ended that recovery, and the shares shed 30% of their value in the weeks that followed.

What the second quarter showed

Despite this pullback, second quarter numbers were at a record high.

Total revenue rose 38% year-on-year to US$159.0 million, and adjusted EBITDA increased 53% to US$31.1 million.

Annualised monthly revenue grew 29% to US$537.2 million and paying circles jumped 27% to 3.2 million.

Advertising revenue reached a record US$22 million, up 315%, while operating cash flow grew 79% to US$23.8 million.

Global monthly active users rose 4.6 million in the quarter to approximately 102.4 million.

Chief executive Lauren Antonoff framed the quarter around the user gowth milestone.

This quarter, Life360 crossed 100 million monthly active users—proof of the trust millions of families place in us to stay connected, coordinated, and safe. Disciplined execution drove strong Paying Circle growth and put MAU back on the growth trajectory we outlined last quarter.

However, operating expenses also rose 43% to US$127 million, largely on growth and integration costs from the Nativo acquisition.

The two details that sank the result

The first is guidance.

Life360 left FY26 revenue guidance at US$650 million to US$685 million and adjusted EBITDA at US$130 million to US$140 million.

Shareholders had grown used to upgrades, but received a reiteration instead.

The second is the quality of the earnings beat.

Bell Potter noted that paying circles grew by 185,000 against its 155,000 forecast and consensus of 136,000, and that adjusted EBITDA comfortably beat its US$25.7 million estimate.

Roughly US$4 million of that beat, however, came from a tariff refund.

Underlying adjusted EBITDA was therefore closer to US$27 million.

What brokers say Life360 shares are worth

Bell Potter kept its buy rating and trimmed its target slightly.

The net impact on our target price is a 3% decrease to $34.00 which has all been driven by the DCF due to modest downgrades and changes in working capital assumptions. We retain our BUY recommendation and note we expect the buyback to be more active this quarter after only modestly commencing last quarter.

Every analyst covering the company currently holds a buy or strong buy rating.

The $31.72 average target implies about 60% upside, and the most bullish sits above $40.

Foolish takeaway

The bull case for Life360 shares is that a company growing revenue at 38% should not trade on 25 times earnings.

The bear case is that the market no longer believes guidance will be beaten, and a tariff refund flatters the results.

I tend to agree more with the brokers than the share price, because paying circles and advertising are both compounding faster than the cost base.

In the short-term, however, Life360 shares will stay volatile until management either upgrades guidance or explains why it cannot.

The post Life360 shares are 60% below broker targets. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares I’d buy after the most recent sell-off
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• How to build a winning ASX share portfolio and create wealth
• Down 55%: Should I buy Life360 shares in September?
• Are these ASX tech stocks finally a buy again?

Motley Fool contributor Mark Verhoeven 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying an ASX share is easy. Finding one I would be comfortable leaving alone for many years is much harder.

For a genuine buy-and-hold investment, I want a strong business today with plenty of opportunity still ahead.

These three could be best buys for me.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX share that has already grown enormously, but I still think its best years could be ahead.

The healthcare technology company develops the Visage imaging platform used by hospitals and radiology groups to view and manage medical images.

Despite winning contracts with some of the United States’ largest hospital networks, management has previously estimated that Pro Medicus still holds only around 11% of the market.

That leaves a substantial number of hospitals still available to win.

There is also more to the opportunity than radiology. Pro Medicus is expanding further into cardiology and broader enterprise imaging, potentially allowing its software to become more deeply embedded across hospital systems.

Winning major healthcare customers can take time, but once the platform becomes central to clinical workflows, I think those relationships can be extremely valuable.

That makes Pro Medicus the type of business I would be comfortable holding through short-term share price volatility.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne could also be one of the best ASX shares for a long holding period.

Its enterprise software is used by councils, universities, government organisations, and other large institutions to manage important day-to-day operations.

These customers generally do not change core software systems lightly. Moving financial, payroll, property, or other critical processes to another provider can be expensive and disruptive. That helps TechnologyOne build long customer relationships and recurring revenue.

I also like that the business still has opportunities outside Australia. Its expansion in the United Kingdom gives TechnologyOne another sizeable market to pursue, while continued investment in cloud software and artificial intelligence could increase the value of its products for existing customers.

Overall, I think TechnologyOne has many of the qualities I want from an ASX share I would own for a decade or longer.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be comfortable owning for the long term.

Its realestate.com.au platform has become deeply embedded in how Australians search for property, giving the company a very strong position with both buyers and sellers.

That large audience is a major advantage. Property agents want to advertise where buyers are already looking, while buyers keep returning because that is where the listings are. I think that creates a network effect that is difficult for competitors to replicate.

The Australian housing market will always move through stronger and weaker periods, so listings activity can fluctuate.

But over a long timeframe, I think REA Group’s dominant position and ability to earn more from its audience give the business plenty of room to keep growing.

Foolish takeaway

I would not necessarily expect these ASX shares to outperform every year.

What I like is that each company has a strong position today and a clear opportunity to become much larger over the next decade.

If I could buy Pro Medicus, TechnologyOne, and REA Group at sensible valuations, I would be happy to hold them for years and give those growth stories time to develop.

The post Why I think these are the best ASX shares to buy and hold appeared first on The Motley Fool Australia.

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

Uranium stocks have made headlines this week, with global tailwinds providing long-term upside for producers. 

In particular, Paladin Energy Ltd (ASX: PDN) has drawn significant attention from brokers.

Why the increased attention for uranium stocks?

As reported by my colleague Mark Verhoeven earlier this week, the spot price of uranium is hovering near US$90 a pound. 

However, more importantly, the long-term contract price is US$97 a pound, its highest level in more than eighteen years.

This is being driven by expectations of a gap between supply and demand. 

On the supply side, some of the world’s biggest uranium producers are facing production challenges and delays, making it harder to increase supply. 

At the same time, demand for uranium is expected to rise significantly as more countries build and rely on nuclear power. 

Utilities companies are already locking in uranium supplies years in advance because they want to make sure they have enough fuel for their reactors. 

If demand keeps growing while supply remains tight, uranium prices could stay strong or rise, which could benefit companies that produce or develop uranium projects. 

This is why investors are paying more attention to ASX-listed uranium stocks.

Why Paladin is a winner 

This is positive for Paladin Energy because it is already producing uranium through its Langer Heinrich mine in Namibia. 

If global uranium demand continues to rise while supply remains tight, uranium prices could increase, allowing the uranium stock to potentially generate more revenue and profits. 

In simple terms, it benefits if uranium becomes more valuable because it is already a producer and can sell into that stronger market.

Brokers tipping big upside 

Thanks to these emerging tailwinds, brokers are tipping healthy gains over the next 12 months for this ASX uranium stock. 

It closed trading yesterday at $11.73 per share. 

The team at Canaccord Genuity has a buy call on Paladin Energy shares with a $15.80 target.

This indicates a 34% upside from current levels. 

Elsewhere, Morgans has an accumulate rating and $13.30 price target, indicating 13% upside. 

The current Patterson Lake South (PLS) resource may only represent part of the story – The mine plan supports ~9Mlbpa over nine years, yet mineralisation remains open at depth and along strike, drilling density declines materially below 350m. We expect the resource and mine life to increase materially in time. Simply simple – PLS is one of the highest-grade undeveloped uranium projects globally, but its development plan is surprisingly conventional, with a TBM decline, proven mining methods, a standard Athabasca processing flowsheet and uncomplicated tailings storage reducing technical risk.

The post Brokers are confident in the outlook for this uranium stock tipping 34% upside appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX shares tipped by brokers to rise 34% to 88%
• Uranium is back. Three ASX shares that give you exposure
• These are the 10 most shorted ASX shares
• 9 ASX shares downgraded by experts post-results this week

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