Author: openjargon

Building a passive income stream from the share market isn’t as hard as you think.

Rather than relying on a handful of dividend-paying ASX stocks, many investors use exchange traded funds (ETFs) to access a broader pool of income-generating companies.

This can help smooth out returns and reduce the impact of any single company cutting its payout.

Here are two ASX ETFs that offer different approaches to generating income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF for income investors to look at is the Vanguard Australian Shares High Yield ETF.

This popular fund focuses on Australian shares with higher forecast dividend yields. It provides exposure across sectors, while applying limits to reduce concentration in any single industry or company.

Its holdings include shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS).

Commonwealth Bank highlights the type of income this ETF targets. As Australia’s largest bank, it has a long history of paying dividends and benefits from a dominant position in the domestic market.

By combining multiple high-yielding companies in one portfolio, this fund offers a diversified source of income that can be easier to manage than holding individual shares.

At present, the Vanguard Australian Shares High Yield ETF offers an attractive trailing dividend yield of 4.15%.

BetaShares Global Royalties ETF (ASX: ROYL)

Another ASX ETF worth considering for a passive income portfolio is the BetaShares Global Royalties ETF.

This fund takes a different approach by focusing on companies that earn revenue through royalties rather than traditional operations.

Because royalty-based businesses often have lower capital requirements, they are able to return more of their earnings to shareholders than other companies.

The BetaShares Global Royalties ETF’s holdings currently include companies such as Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

Franco-Nevada provides a useful example of the type of holding you will get with this fund. It earns royalties from mining operations, giving it exposure to commodity production without the same level of operational risk as miners themselves. This can support more stable cash flows over time.

The BetaShares Global Royalties ETF currently trades with a generous trailing dividend yield of 5.4%.

The post The best ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

More reading

• Almost ready to retire? I’d buy cheap ASX dividend shares for passive income
• The easy way to buy ASX dividend shares and build passive income
• How to build a second income from ASX shares without taking big risks
• Why this is the best income ASX ETF for retirees
• Vanguard ETF dividends to be paid today

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to retirement, one of the most common assumptions is that couples need far more superannuation than singles.

After all, two people means double the expenses, right?

Not quite.

The reality is more nuanced, and understanding the difference can have a big impact on how you plan for retirement.

What the benchmarks say

According to the Association of Superannuation Funds of Australia, the amount of super required for a comfortable retirement is around $630,000 for a single person and around $730,000 for a couple combined.

At first glance, that might seem surprising. A couple only needs $100,000 more than a single person, not double.

That’s because many costs in retirement are shared.

Why couples need less superannuation per person

Retirement spending doesn’t scale linearly.

Housing is the clearest example. Whether one person lives in a home or two, many costs remain the same. Rates, maintenance, and utilities don’t double just because another person is there.

The same applies to a range of other expenses. Things like internet, streaming services, insurance policies, and even groceries benefit from economies of scale.

This means couples can spread costs across two people, making retirement more efficient on a per-person basis.

Income needs tell the same story

This dynamic is also reflected in annual spending estimates.

A comfortable retirement currently requires around $54,000 per year for singles and about $76,000 for couples. Again, the couple doesn’t need twice as much, they need only about 40% more.

That difference highlights how shared living reduces financial pressure.

Where singles face challenges

For singles, the lack of shared costs creates a tougher financial equation.

Every expense, from housing to utilities to everyday living, must be covered by one income source. There is less flexibility and fewer opportunities to reduce costs without impacting lifestyle.

This means singles often need a higher super balance relative to their situation, even if the absolute number is lower.

There is also less margin for error. Unexpected expenses or market downturns can have a more immediate impact when there is only one income stream to rely on.

Where couples have an advantage

Couples benefit from both shared costs and shared resources.

They often have two super balances, two potential income streams, and more flexibility in how they manage spending and drawdowns.

Even if one partner has a smaller balance, the combined pool can still support a comfortable lifestyle.

In many cases, couples are also better positioned to continue part-time work or adjust their retirement timing, which can further strengthen their financial position.

But it’s not always straightforward

Of course, not all couples are financially equal.

Differences in age, health, spending habits, and super balances can all influence outcomes. In some cases, one partner may carry most of the financial weight.

Similarly, singles who own their home outright and have modest spending needs may find they can retire comfortably on less than expected.

The real takeaway

So, who needs more superannuation to retire?

In absolute terms, couples need more, but only slightly.

In practical terms, singles often face the greater challenge because they don’t benefit from shared costs and flexibility.

Foolish takeaway

Retirement isn’t just about how much super you have, it is about how your life is structured.

Couples can stretch their savings further thanks to shared expenses, while singles need to be more self-reliant.

Understanding that difference can help you set more realistic goals and plan a retirement that works for your situation, not just the averages.

The post Australian couples vs singles: who needs more superannuation to retire? appeared first on The Motley Fool Australia.

More reading

• Nervous investors turn to ASX 200 defensives as global energy shock drags on
• The superannuation balance you actually need at 65 to retire without the Age Pension
• 5 years ago, $10,000 bought 111 CBA shares. But how many would it buy now?
• Here are the top 10 ASX 200 shares today
• ASX 200 drops again. This is what’s starting to worry investors

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.

Cochlear Ltd (ASX: COH) shares just had a week to forget.

Despite closing up 2.47% on Friday to end the day at $97.35 a share, the S&P/ASX 200 Index (ASX: XJO) hearing solutions company ended the week down almost 43%.

That’s far worse than the almost 2% loss posted by the benchmark index this week.

We’ll take a look at why this week’s fall could see Cochlear shares trading at a long-term bargain below.

But first…

What on Earth happened to Cochlear shares this week?

The bulk of the losses for the ASX 200 healthcare stock came on Wednesday.

Cochlear shares closed the day down a very painful 40.7% following a decidedly disappointing trading update.

Investors were overheating their sell buttons after the company slashed its full-year FY 2026 profit guidance and flagged slumping demand for its implants in developed markets.

Atop the softer trading conditions in developed markets, Cochlear also said that it could be impacted by cancelled orders and delayed deliveries to its Middle East markets amid the ongoing conflict.

On the profit front, Cochlear slashed its FY 2026 underlying net profit guidance to between $290 million and $330 million. That’s a sharp decline from prior guidance of $435 million to $460 million.

Despite the current woes, Cochlear CEO Dig Howitt was optimistic about the company’s outlook.

Howitt said:

We remain confident of our market leadership. We have seen strong adoption of the Nucleus System across the developed markets, with very positive customer feedback and a strong interest in exploring the system’s potential to further improve hearing outcomes.

Why this ASX 200 stock could be set to bounce

Following this week’s selling, Filip Tortevski, senior analyst at Wealth Within, said that Cochlear shares may now present ASX investors with “the best bargain of the year”.

“Cochlear Limited has just delivered one of the sharpest selloffs in ASX history,” he noted.

According to Tortevski:

That sounds alarming, but the drivers are largely cyclical and external, including US Medicaid funding changes, hospital capacity constraints in Europe, and currency headwinds, not a breakdown in the company’s core business.

The stock was already down more than 30% over the past year, meaning much of the risk had been building. Historically, Cochlear has recovered from similar earnings resets as demand normalises, suggesting this could be one of the most compelling valuation resets on the ASX today.

Tortevski concluded, “Watch around the $100 level [for Cochlear shares] like a hawk as there are many technical reasons why this stock could bounce from here.”

The post Down 43% this week, are Cochlear shares now the best bargain buy of the year? appeared first on The Motley Fool Australia.

More reading

• After falling 43% in a week, are Cochlear shares now a buy?
• Buy, hold, sell: Cochlear, CSL, and DroneShield shares
• How high could Cochlear shares bounce back? Brokers disagree
• 3 ASX 200 shares too cheap to ignore after sell-offs
• Could these ASX stocks really be set to double after crashing this week?

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

For many Australians, retirement planning starts with a simple question: how much income will be enough?

If the goal is to replace the median salary, that benchmark currently sits around $74,000 per year or $6,166 per month. Generating that level of income from a self-managed super fund (SMSF) could allow investors to maintain a similar standard of living without relying on employment.

That raises an important question. How much capital is needed to produce that level of passive income?

Working backwards from the income goal

The simplest way to approach this is to start with the income target and apply a realistic dividend yield.

If a portfolio is generating a 5% dividend yield, an annual income of $74,000 would require an SMSF balance of approximately $1.48 million.

Of course, yields can vary over time and across different investments. But this provides a useful benchmark when setting long-term goals.

Building toward the target

Reaching a $1.48 million SMSF balance is not usually the result of a single investment. It is typically built over many years through a combination of contributions and investment returns.

Regular contributions play an important role. Employer contributions, salary sacrifice, and personal contributions can steadily increase the balance over time.

The earlier this process starts, the more time the fund has to compound. Even small contributions can grow meaningfully when combined with consistent investment returns.

Focusing on growth and income

In the early stages, the priority is often growth rather than income.

A portfolio tilted toward growth assets like ResMed Inc. (ASX: RMD) and TechnologyOne Ltd (ASX: TNE) could help increase the overall balance more quickly. As the fund grows closer to its target, the focus can gradually shift toward income-generating investments.

This transition allows the portfolio to move from accumulation to income production in a more controlled way.

Managing risk along the way

While aiming for a specific income level, it is important to consider risk.

A diversified portfolio is important and can help reduce the impact of market volatility and protect against unexpected changes in income. This can include a mix of sectors, asset types, and income sources.

It also helps to avoid relying too heavily on a small number of investments.

Foolish takeaway

A $6,166 monthly income is a clear and tangible goal.

Understanding the capital required to reach it can help shape investment decisions and set realistic expectations.

From there, the focus shifts to building the balance steadily over time and positioning the portfolio to deliver consistent income.

The post How much is needed in an SMSF to target a $6,166 monthly passive income? appeared first on The Motley Fool Australia.

More reading

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• 6 ASX 200 shares downgraded by brokers this week
• Where I’d invest my first $500 into ASX shares
• How to invest in ASX shares when the market feels uncertain
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Motley Fool contributor James Mickleboro has positions in ResMed and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX 200 consumer staples and utilities led the market sectors last week, rising 2.73% and 1.92%, respectively.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 1.79% to finish the week at 8,786.5 points.

ASX investors are feeling increasingly pessimistic that the war in Iran will end anytime soon.

This was likely a factor behind the support for ASX 200 consumer staples and utilities shares last week.

Consumer staples and utilities are among the most defensive of the 11 market sectors during economic upheaval.

This is because staples and utilities companies have reliable income streams, given they sell essential goods and services.

Another sector considered somewhat defensive is real estate investment trusts (REITs), which lifted 0.14% last week.

The glaring exception among defensives last week was healthcare, a sector that continues to face multiple headwinds.

A 42% dive in Cochlear Ltd (ASX: COH) shares pushed the S&P/ASX 200 Health Care Index (ASX: XHJ) to a 6-year low last week.

Technology also finished just inside the green, as the sector continues its rebound from a prolonged downturn.

Iran war drags on

Oil and gas prices spiked 15% to 18% and ASX 200 shares spent four consecutive days in the red last week.

The world is anxiously awaiting news of when a second round of US-Iran peace talks will begin.

Lucinda Jerogin, Associate Economist at CBA, said:

… fundamentally the situation has not changed; no talks, no fighting and no ships passing through the Strait of Hormuz.

Iran has stated it will neither reopen the Strait nor engage in negotiations until the US lifts its naval blockade.

The longer the Strait remains closed, the greater the costs to the world economy through higher energy prices and supply chain disruptions.

The International Monetary Fund (IMF) has warned of a global recession given the long-tail impact of energy shocks.

In Australia, expectations of higher inflation and more interest rate rises do not bode well for the economy.

The market is factoring in a 69% chance of a rate rise next month. Meanwhile, consumer confidence has tanked.

The Westpac-Melbourne Institute Consumer Sentiment Index recorded its biggest fall in five years this month.

All of these broader macroeconomic concerns likely contributed to support for ASX 200 defensive sectors last week.

Consumer staple shares led the ASX sectors last week

The sector’s largest stock, Woolworths Group Ltd (ASX: WOW), gained 2.99% to finish at $37.89 per share on Friday.

The Coles Group Ltd (ASX: COL) share price rose 2.31% to $23.06.

IGA network owner Metcash Ltd (ASX: MTS) fell 2.76% to $2.82 per share.

Endeavour Group Ltd (ASX: EDV) shares rose 7.36% to $3.50.

The A2 Milk Company Ltd (ASX: A2M) share price edged 0.94% lower to $7.40.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) lifted 12.22% to $4.50 on news of a revised operating model.

Inghams Group Ltd (ASX: ING) shares fell 0.5% to close at $1.98 on Friday.

Bega Cheese Ltd (ASX: BGA) shares eased 0.51% to $5.87.

Almond food producer Select Harvests Ltd (ASX: SHV) rose 0.54% to $3.75 per share.

Cobram Estate Olives Ltd (ASX: CBO) shares lifted 1.69% to $3.61.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) increased 0.79% to $6.40.

The Elders Ltd (ASX: ELD) share price fell 2.13% to $7.35.

Stock feed producer Ridley Corporation Ltd (ASX: RIC) lifted 4.46% to $2.81.

The Australian Agricultural Company Ltd (ASX: AAC) lost 2.24% to finish the week at $1.31.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Staples (ASX: XSJ)	2.73%
Utilities (ASX: XUJ)	1.92%
A-REIT (ASX: XPJ)	0.14%
Consumer Discretionary (ASX: XDJ)	0.11%
Information Technology (ASX: XIJ)	0.02%
Industrials (ASX: XNJ)	(0.07%)
Communication (ASX: XTJ)	(0.10%)
Energy (ASX: XEJ)	(0.19%)
Materials (ASX: XMJ)	(2.08%)
Financials (ASX: XFJ)	(2.92%)
Healthcare (ASX: XHJ)	(6.54%)

The post Nervous investors turn to ASX 200 defensives as global energy shock drags on appeared first on The Motley Fool Australia.

More reading

• The superannuation balance you actually need at 65 to retire without the Age Pension
• 5 years ago, $10,000 bought 111 CBA shares. But how many would it buy now?
• 1 ASX dividend stock down 50% I’d buy
• Bell Potter names the best ASX dividend shares to buy
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and Woolworths Group. 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.

Turning an investment into a million dollars is rarely about a single decision. It is usually the result of backing businesses that can grow consistently over many years.

That often means focusing on Australian shares with scalable models, strong competitive positions, and exposure to long-term trends.

Here are three ASX shares that could fit that profile.

Life360 Inc (ASX: 360)

One Australian share building momentum through scale is Life360 Inc.

This technology company has developed a global platform centred on family connectivity and safety. Its app sits on users’ phones and becomes part of their daily routine, which helps drive engagement over time.

Another positive is how the company is expanding beyond its core offering. It is layering in additional services such as driver protection and emergency assistance, creating more opportunities to increase revenue per user.

The size of its user base provides a foundation for this strategy. As more users join the platform, even small improvements in monetisation can have a meaningful impact on earnings.

With engagement already established and additional services being rolled out, Life360 shares offer exposure to a business that is still early in its monetisation journey.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is approaching growth from a different angle.

Instead of relying on a single market, the company is steadily building a global retail footprint. Its store network continues to expand across regions, supported by a fast product cycle that keeps ranges aligned with current trends.

A key part of the model is its ability to execute consistently. New stores are opened at a steady pace, and the company has shown it can translate that expansion into sales growth.

This rollout strategy means growth does not depend on one breakthrough moment. It comes from repeating a model that has already proven effective across multiple markets.

As long as store expansion continues at pace, Lovisa remains closely tied to a strategy that can drive earnings higher over time.

Megaport Ltd (ASX: MP1)

Megaport is an Australian share that offers exposure to the infrastructure behind cloud computing and AI.

Its platform allows businesses to connect to cloud providers and data centres on demand, creating flexibility compared to traditional network solutions.

The company benefits from the ongoing shift toward cloud-based services. As more businesses move workloads online, the need for efficient connectivity continues to grow.

In addition, it recently completed the acquisition of Latitude.sh, which expands its addressable market beyond connectivity into compute.

As cloud adoption continues to build globally, Megaport is positioned to benefit from that increasing demand.

The post What are the best Australian shares to buy now to try and make a million? appeared first on The Motley Fool Australia.

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The amount of money you need in your superannuation to retire at age 65 depends nearly entirely on the type of retirement lifestyle you want to live, how long you live beyond retirement, and whether or not you own your home outright.

The ultimate goal for any soon-to-be retiree is to live a comfortable lifestyle after they stop working.

That’s one where you can maintain a good standard of living, including top-level private health insurance and regular leisure activities. It would also allow you to own a reasonable car, have funds set aside for home repairs, and the occasional meal out. An annual domestic trip could also be on the cards.

How much does a comfortable retirement cost?

Thanks to rising inflation and the cost of living, the Association of Superannuation Funds of Australia (ASFA) raised the benchmarks for both a modest and a comfortable retirement earlier this year. 

The increase serves as a stark reminder that long-term returns from markets like the S&P/ASX 200 Index (ASX: XJO) play an important role in building retirement savings.

To live a comfortable retirement lifestyle at age 65, individuals can expect to spend around $54,840 a year, and couples can expect closer to $77,375 a year. 

How much do I need in my superannuation to fund that retirement lifestyle?

To fund the level of spending needed to live comfortably, you’ll need a superannuation balance of around $630,000 for a single person, or $730,000 for a couple.

But these figures assume you retire at age 67 and will need to fund around 11.5 years of retirement for a single person or 9.5 years for a couple.

They also assume that you own your home outright, that Australians will draw down all their capital at retirement, and that they will receive a part Age Pension.

The problem is, this isn’t a reliable figure for Australians who want to retire two years earlier (at age 65) or those who aren’t eligible for the Age Pension.

What if I want to retire at age 65, rather than age 67?

If you want to retire two years earlier, you’ll need to fund an extra two years (or more) of retirement.

Using the figures above, that means a single person would need a superannuation balance of around $740,340, and a couple would need around $890,000.

And also remove the Age Pension payment. What do I need then?

ASFA’s calculation assumes retirees will receive a part Age Pension. It’s quite difficult to calculate exactly what that would be here because it varies so wildly depending on your income and the value of your assets.

So let’s calculate this using the maximum basic rate for the Age Pension as an example. 

As of the 20th of March this year, the Age Pension has a maximum basic rate of $1,100.30 per fortnight for singles and $1,658.80 combined for a couple. 

That totals $28,607.80 for singles over the course of a year, and $43,128.80 for couples.

Assuming you need to fund 11.5 years and 9.5 years of retirement, respectively, this would add a total of $328,989 for singles and just shy of $410,000 for couples over and above the figures we calculated above.

So the answer is…

The superannuation balance you actually need at 65 to retire without the age pension is around $1.07 million for singles, and $1.3 million combined for couples.

The post The superannuation balance you actually need at 65 to retire without the Age Pension appeared first on The Motley Fool Australia.

More reading

• 5 years ago, $10,000 bought 111 CBA shares. But how many would it buy now?
• Here are the top 10 ASX 200 shares today
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• NEXTDC launches $750m wholesale notes to boost growth funding

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.

Global Lithium Resources Ltd (ASX: GL1) this week announced a major funding deal with a Chinese company, which has the analyst team at Shaw and Partners taking notice.

Shaw and Partners this week reiterated its buy rating on the ASX lithium stock, albeit with a high-risk rating, and also reiterated its share price target, which we’ll get to shortly.

Firstly, let’s have a look at what the company announced.

Major Chinese deal

Global Lithium Resources said in its statement to the ASX that it had struck a “transformational” funding deal with Chinese company Jiangsu Lopal Tech. Group Co., which is a battery materials producer listed on the Shanghai and Hong Kong stock exchanges.

Lopal has agreed to make a $7.32 million equity investment in the company, as well as providing an offtake prepayment of US$75 million, “which will accelerate the development of the 100% owned Manna Lithium Project in Western Australia”.

Global Lithium Resources also agreed to sell its interest in the Marble Bar Lithium Project to Lopal for $14.85 million.

Global Lithium Resources Managing Director Dr Dianmin Chen said the arrangements with Lopal represented “a pivotal advancement in the Manna Lithium Project toward a final investment decision on its development”.

He added:

The arrangements with Lopal provide a robust initial contribution to fund Manna’s future development, securing critical long-term customer relationships and validating the demand for Manna’s substantial and high-quality lithium resource.

Under the agreement, Lopal will take 40% of the Manna Lithium Project’s annual production, which is expected to be about 70,000 tonnes of spodumene per annum.

Combined with an existing offtake agreement with Canmax Technologies Co., 70% of the project’s production is now accounted for.

The investments are not subject to approval by the Foreign Investment Review Board, the company said.

Shares looking cheap

Shaw and Partners said in its note to clients that the deal was a positive for the company.

We continue to forecast EV demand catalysed by the Iran War as a decisive factor underpinning a shift in the lithium market from surplus to deficit by the end of this year. Despite rising prices, lithium supply growth will remain constrained, and this is very positive for both the lithium price and lithium equities. Global Lithium remains one of our preferred lithium developers in a market that is getting tighter by the day. We reiterate our Buy recommendation and discounted cash flow-based $1.50 price target.

Shaw and Partners noted the company would have $137 million in cash following the conclusion of the new agreement.

Global Lithium Resources shares were changing hands for 57.5 cents on Friday, well below Shaw’s $1.50 target price.

The company is valued at $149.9 million.

The post This ASX lithium company could more than double in value one broker says, after a “transformational” funding deal appeared first on The Motley Fool Australia.

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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 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.

Although they outperformed the S&P/ASX 200 Index (ASX: XJO) this week, Wesfarmers Ltd (ASX: WES) shares have been struggling in 2026.

Shares in the diversified ASX 200 conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Friday trading for $73.71.

That saw the stock close the week up 1.2%, outpacing the 2.2% losses posted by the benchmark index over this same time.

Still, Wesfarmers shares remain down 9.8% year to date, trailing the 0.3% gains delivered by the ASX 200 so far this calendar year.

Although that underperformance will have been partly mitigated by the $1.02 a share in fully franked dividends the company paid to eligible stockholders on 31 March. Wesfarmers stock trades on a 3.4% fully franked trailing dividend yield.

But with the ASX 200 stock coming under pressure this year, is Wesfarmers now trading for a bargain, or could it have further to fall?

Should you buy Wesfarmers shares today?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Wesfarmers stock (courtesy of The Bull).

“Wesfarmers is a diversified industrial conglomerate,” he said. “Major retail brands include Bunnings, Kmart, Target and Officeworks.”

However, Athanasiou sees headwinds building for Wesfarmers shares.

“Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment,” he said.

Summarising his sell recommendation, Athanasiou concluded:

With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.

What’s the latest from the ASX 200 conglomerate?

The last price sensitive news for Wesfarmers shares was the company’s half year results release (H1 FY 2026) on 19 February.

Highlights included a 3.1% year-on-year increase in revenue to $24.21 billion. And earnings before interest and tax (EBIT) of $2.49 billion were up 8.4% from H1 FY 2025.

On the bottom line, the company reported a net profit after tax (NPAT) of $1.60 billion, up 9.3%.

Commenting on the results, Wesfarmers managing Director Rob Scott said:

During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions…

The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Amid high market expectations, and taking note of those ‘cost pressures’, Wesfarmers shares closed down 5.6% on the day of the results release.

The post Wesfarmers shares: Buy, hold or sell? 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cochlear Ltd (ASX: COH) shares have been hit hard this week, with one of the biggest sell-offs seen in the ASX healthcare sector in recent years.

At Friday’s close, Cochlear shares finished at $97.35, down roughly 43% over the past week. That move has pulled the stock back to levels last seen in early 2016.

The question now is whether this is a reset that creates opportunity, or a signal that something more fundamental has changed.

Here’s what investors are weighing up.

What triggered the sell-off

The decline follows a major downgrade to its FY26 earnings guidance.

Cochlear now expects underlying net profit to be $290 million to $330 million. That is well below its previous guidance range of $435 million to $460 million.

The downgrade reflects weaker conditions across developed markets.

Management flagged softer demand for cochlear implants, driven by hospital capacity constraints and lower referral activity. Consumer sentiment has also weakened, particularly in key markets like the United States.

There are also operational pressures. Industrial action in parts of Europe has delayed procedures, while some regions are seeing longer waiting lists for surgery.

Is this a short-term issue or something deeper?

This is where the debate sits.

On one hand, many of these pressures look cyclical rather than structural. Hospital capacity and referral volumes can recover over time. Consumer sentiment also tends to move in cycles.

Cochlear’s long-term drivers are still in place. The business operates in a global market supported by ageing populations and increasing diagnosis rates. It also has a strong competitive position, with high switching costs and a large installed base that generates recurring revenue over time.

That is why, even after the recent volatility, the company is still widely viewed as a high-quality healthcare name.

But on the other hand, the latest update challenges one key area.

Demand in developed markets now appears more sensitive to economic conditions than previously thought. That adds uncertainty to earnings and makes forecasting harder.

It also raises questions about how much of Cochlear’s premium valuation can be justified if growth remains uneven.

What the market is pricing in now

The speed of the sell-off suggests investors have moved quickly to price in weaker growth and lower confidence.

At current levels, the valuation has shrunk significantly from where it sat earlier this year.

That changes the risk-reward profile.

After a sharp correction, the balance is no longer about paying up for quality. It is about whether earnings stabilise and recover from here.

We have seen similar setups across the market recently, where heavy selling has created potential opportunities even as the underlying businesses remain strong.

Foolish takeaway

Cochlear’s share price fall shows a clear change in earnings expectations and confidence.

The long-term drivers remain, but near-term visibility is weaker, and demand looks more cyclical than before.

At these levels, the stock may start to attract interest from long-term investors.

But much of the next move will depend on whether conditions in key markets can begin to stabilise.

The post After falling 43% in a week, are Cochlear shares now a buy? appeared first on The Motley Fool Australia.

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