Author: openjargon

CSL Ltd (ASX: CSL) shares are climbing again on Monday, with the healthcare giant continuing its strong rebound.

The CSL share price is up 1.29% to $177.85 in early afternoon trade after reaching an intraday high of $178.42.

That puts the stock right back near an area I’ve been watching closely on the chart.

CSL shares have now almost doubled from their 2026 low of $90, so a lot of the recovery has already happened.

And from a technical point of view, I think the next few dollars could be harder to come by.

Why $180 is a big level

The first thing that jumps out to me on the chart is the resistance sitting just below $180.

CSL shares have pushed into this area a few times recently, but so far haven’t been able to break through it.

And momentum is starting to look pretty stretched as well.

The relative strength index (RSI) is currently at 68, which is getting close to the 70 level generally considered overbought.

It doesn’t mean the share price has to fall from here, but I wouldn’t be surprised to see some selling around $180.

I think CSL may need another positive announcement or a decent market rally to properly break through this level.

If it can, the next major resistance level I’m watching on the chart is around $230.

Another risk is coming next week

There’s also another reason I wouldn’t be surprised to see CSL shares struggle around these levels.

The RBA meets again on 29 September, and another interest rate increase is looking increasingly likely.

According to Reuters, markets are now implying a 93% chance that the cash rate will rise from 4.35% to 4.60% at next week’s meeting.

That follows 3 rate hikes already this year, while RBA Governor Michele Bullock said last week that some of the upside risks to inflation were starting to materialise.

If the RBA does lift rates again, I wouldn’t be surprised to see some pressure come back into the ASX.

And with CSL already trading right around resistance, that could make breaking through $180 even harder.

Foolish takeaway

If I were looking at CSL today, I wouldn’t be rushing to chase the shares at $178.

The stock has already done a lot of the heavy lifting, and I’d rather see what happens around $180 before getting too excited.

A clean break above that level would be a much better signal to me than buying right underneath it.

For now, I’ll happily wait and see whether a pullback gives me a better entry point.

The post CSL shares are back near $180. Here’s the level I’m watching appeared first on The Motley Fool Australia.

More reading

• Why brokers think CSL shares could be on track for $200
• Buy, hold, sell: Coles, NAB, CSL shares
• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• How much passive income could I make by investing $500 a month in ASX shares?
• Are BHP, CBA, and CSL shares top buys?

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

At age 59, you’re just one year from reaching preservation age, which means you can start drawing down on your superannuation if you’ve stopped working.

It’s one of the most important crossroads in life, and one where the decisions you’ll make over the next few years will determine the quality of life you have in retirement. 

But do you know what it costs to retire comfortably versus on a budget? And how much should you have in your super at age 59 to support yourself when the time comes?

Let’s take a look.

What does it cost to retire?

According to the Association of Superannuation Funds of Australia (ASFA) figures, there are two main options for your retirement. A comfortable retirement lifestyle, and a modest one.

A modest retirement means you’d need to live on a tight budget after you quit working. It assumes you can cover very basic needs and requirements, including basic food costs, enough to cover essential bills, low-tier health insurance, and minimal leisure activities or meals out. It assumes you own your home outright and that you’ll receive at least a partial Age Pension payment.

ASFA estimates this will cost single retirees around $36,434 per year, and closer to $52,473 for a couple combined. 

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, and regular leisure activities or meals out. It also includes a budget for an occasional holiday.

A comfortable retirement is estimated to cost single retirees around $55,923 per year or $78,566 for couples. Again, it assumes you’ll receive a part Age Pension and that you own your home in full. 

How much do I need in my superannuation to finance a comfortable retirement?

ASFA has calculated that single Australians will need around $630,000 in their superannuation, and couples will need around $730,000.

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

OK, so how much should I have in my superannuation at age 59 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 $434,500 by age 59. 

How does this compare to your own superannuation balance?

What if I want to retire a couple of years earlier at age 65? How much would I need to have today to be considered on track?

That’s very achievable, but you’d need to have enough in your superannuation at age 65 to fund those two extra years.

Your annual costs will be around the same: $55,923 per year for single Australians and $78,566 per year combined for a couple living together.

But, as I mentioned above, you’ll need to fund an additional two years above what ASFA accounts for.

That means, at age 65, singles will need to have around $742,000 in their superannuation, and couples will need a combined balance closer to $888,000 at the same age. 

To be considered on track for this amount at age 59, you’d need to have around $481,000 in your superannuation.

Is it possible to retire at age 60 and still live comfortably in retirement?

Yes. Again, this is very achievable if you have the funds to be able to support yourself for those additional seven years until age 67. 

At age 60, singles will need to have closer to $1 million in their superannuation. Meanwhile, couples will need a combined balance of around $1.3 million at the same age.

That means that at age 59, your superannuation balance should be very close to these levels. If not, you’d have just one year to make up the difference.

The post How much should I have in my superannuation at age 59? appeared first on The Motley Fool Australia.

More reading

• BHP shares are up 53%. Here are 5 reasons why they may not be done yet
• Why is this ASX gold share rocketing 7% on Monday?
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• Why I’d invest $10,000 in these strong Vanguard ETFs

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.

BHP Group Ltd (ASX: BHP) shares slipped fractionally to $60.78 during Monday afternoon trading. That follows a softer month, with the mining giant down around 7%.

But zoom out, and the picture flips completely: BHP shares have surged roughly 34% year to date and a stunning 53% over the past 12 months.

After a run like that, the obvious question is whether there’s anything left in the tank. Here are five reasons the answer might be yes.

1. BHP is quietly becoming a copper giant

Forget the old image of BHP shares as an iron ore miner with side hustles. Copper is now doing the heavy lifting. In FY 2026, copper contributed more than half of BHP’s underlying EBITDA for the first time ever, with production hitting roughly 2 million tonnes.

It gets bigger from here. BHP’s copper growth pipeline could lift attributable production by around 40% by FY 2035. That’s a full-throttle bet on a metal the company believes is set to ride the electrification, digitalisation, and power-demand supercycle.

2. Iron ore hasn’t gone anywhere

None of this means BHP is walking away from iron ore. WA Iron Ore delivered record production in FY 2026 and, according to BHP, remains the world’s lowest-cost major iron ore operation. The target now is production above 305 million tonnes a year.

That’s not a dying business propping up a new one. It’s a cash-printing machine that can bankroll the next growth chapter of BHP shares without forcing shareholders to gamble on unproven ventures.

3. A massive potash bet flying under the radar

BHP is about to add an entirely new commodity to its arsenal. The Jansen potash project in Canada was 84% complete at the end of FY 2026 and remains on track for first production in mid-2027 — with an expected operating life beyond 60 years.

That’s exposure to global food security and agricultural demand, sitting alongside BHP’s traditional commodity mix. It’s a diversification play most miners simply can’t match.

4. The cash machine just got louder

BHP generated US$9.8 billion of free cash flow in FY 2026 — an 83% jump. Net debt fell below US$9 billion, and the company handed shareholders US$8.7 billion in dividends, its biggest annual payout in four years.

For income investors in BHP shares, that’s not a footnote. That’s the headline.

5. Growth without losing the plot

Here’s the part that should reassure the sceptics: BHP isn’t just throwing cash at new mines and hoping for the best.

Management is squeezing productivity and technology out of existing operations, with unit costs running 6% lower on average across major assets in FY 2026 — despite inflation and rising diesel costs working against them.

Should investors keep watching BHP shares?

A 53% gain over 12 months means valuation and commodity price risk can’t be brushed aside. But the real story here isn’t the share price, it’s that BHP itself is changing shape.

This isn’t the old BHP shares wearing a higher price tag. It’s a copper-led growth business, propped up by a world-class iron ore operation, a brand-new potash division, and a cash engine running hotter than ever.

The real question for investors isn’t whether BHP has already run too far. It’s whether this reinvention can deliver another leg of growth, without BHP losing the shareholder return discipline that made it a market darling in the first place.

The post BHP shares are up 53%. Here are 5 reasons why they may not be done yet appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Orica, GQG Partners, BHP shares
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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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.

It has been a strong start to the week for Ramelius Resources Ltd (ASX: RMS) shares.

The gold miner is up 6.98% to $3.83 in midday trade on Monday after releasing its latest update to the market.

However, the stock is still down around 8% since the start of 2026.

So, what’s behind the sudden buying?

Gold output could triple by FY30

According to the release, Ramelius expects to produce between 205,000 and 225,000 ounces of gold in FY27.

All-in sustaining costs (AISC) are forecast at between $2,150 and $2,350 per ounce.

From there, though, production is expected to really start stepping up.

Ramelius is guiding for 250,000 to 300,000 ounces in FY28, before climbing again to 410,000 to 460,000 ounces in FY29.

By FY30, the company is targeting annual production of 560,000 to 610,000 ounces, with AISC of $2,100 to $2,400 per ounce.

That would be 11% above its previous FY30 production plan and around 205% higher than FY26 output.

A lot of that growth should come from Mt Magnet, which could produce 420,000 to 460,000 ounces in FY30.

Rebecca-Roe is expected to contribute another 140,000 to 150,000 ounces that year.

Ramelius is spending heavily to get there

Of course, getting production up to those levels won’t be cheap.

Ramelius expects growth capital expenditure of between $480 million and $570 million in FY27.

A large chunk of that is set to go towards Mt Magnet.

The cost of expanding the processing plant has now increased to around $280 million, up from the previous estimate of $223 million.

The company said the increase reflects higher costs, greater fixed-price coverage, and extra infrastructure work.

The expanded plant is targeted for completion in the December 2027 quarter and should lift total throughput to 4.3Mtpa.

Commercial production is expected to start in the March 2028 quarter.

Ramelius has plenty of firepower

The good news is Ramelius isn’t heading into this spending phase short on funding.

The company said its cash, gold, and investment holdings currently sit above $1 billion.

That includes proceeds from the recent Edna May hub sale, which brought in $210 million in cash and another $90 million worth of Forrestania Resources Ltd (ASX: FRS) shares.

Ramelius said the growth plan remains fully funded, which gives it a bit more breathing room while spending ramps up.

Management also expects the stronger production profile to start showing up in cash flow later in the decade.

By FY30, Ramelius is forecasting free cash flow of as much as $1.5 billion, based on a gold price of $5,500 per ounce.

The post Why is this ASX gold share rocketing 7% on Monday? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 gold stocks turning heads on big news today
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• 3 ASX 200 shares tipped by experts to jump 30% to 62%

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

Life360 Inc (ASX: 360) has been one of the standout ASX growth shares in recent years.

The company is still growing its user base, subscriptions, and advertising revenue at a strong rate.

With the shares trading around $18.72 on Monday, is Life360 still one of the best ASX growth shares to buy?

The growth story still has plenty of room

What I like about Life360 is that it has already built a huge global audience, but I do not think the business is close to reaching its full potential.

The company finished the second quarter with around 102.4 million monthly active users (MAUs), showing just how large the platform has already become.

I still think there is plenty of room to add to that number globally. Just over half of its MAUs are from the US market, which demonstrates its significant global opportunity. 

There is also an opportunity to make more from the users already on the platform. Despite increasing by 27% year on year to 3.2 million in the second quarter, Paying Circles still only represent 3.1% of its overall MAUs.

Advertising gives it another way to generate revenue from the much larger group of users who do not take out a subscription.

That is what I find interesting about the growth story. Life360 can keep adding users, convert more of them to paid memberships, and build advertising alongside that.

If it can keep making progress across those areas, I think the business could be considerably larger in a few years.

Life360 shares could become very cheap

This is probably the part of the investment case I find most interesting at the current Life360 share price.

Consensus forecasts point to earnings per share of 54.4 cents in FY26, rising to $1.16 in FY27 and $2.14 in FY28.

At $18.72, that puts the shares on a P/E ratio of roughly 34 times forecast FY26 earnings.

But the valuation falls quickly if Life360 delivers the earnings growth analysts are expecting.

The shares would be trading at around 16 times FY27 earnings and less than nine times FY28 earnings.

For a company that is still growing its user base, subscriptions, and advertising revenue at a strong rate, I think that would be dirt cheap.

Of course, those forecasts are far from guaranteed.

Life360 will need to keep growing revenue and translate more of that growth into profit. But if it gets anywhere close to the current expectations, I think today’s share price could eventually look very inexpensive.

What could go wrong?

The biggest risk for me is that the earnings forecasts prove too optimistic.

A lot needs to go right for earnings per share to increase from 54.4 cents in FY26 to $2.14 in FY28.

Growth could slow, advertising may take longer to develop, or the company could decide to invest more heavily than expected.

That could leave the shares looking much less cheap than the current forecasts suggest.

Foolish takeaway

I think Life360 is one of the ASX growth shares I would want to own.

The business continues to grow strongly, and there are several ways for it to make more from its huge global audience.

If Life360 comes close to delivering the profits currently expected over the next few years, I think today’s share price could prove to be a very good entry point.

The post Is Life360 one of the best ASX growth shares to buy? 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 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.

In what appears to be a delayed reaction to a bullish outlook in the company’s annual report released last week, Codan Ltd (ASX: CDA) shares have surged to another record high.

The stock hit an early high of $51.64 on Monday before settling slightly to be 2.7% higher at $51.43.

The company’s value has increased 71.6% over the past 12 months, and it is now worth $9.13 billion.

Both Codan divisions performing well

Codan’s major revenue-earning divisions are its Minelab metal detection business and its communications division, which includes technology used in unmanned systems.

The communications divisions last year achieved revenue of $506.2 million, up 22% on the previous year, beating the company’s guidance and “driven primarily by strong demand for unmanned radio systems”, the company said in its annual report released last week.

The company said:

Communications’ segment profit increased by 45% to $156.0 million with segment profit margins expanding to 31%, up from 26% in the pcp, reflecting favourable product sales mix and operating leverage. Pleasingly, the segment exceeded the achievement of 30% end of FY27 profit margin target by 18 months. Revenue from defence customers represented 58% of total Communications revenue (up from 38% in FY25), underscoring the increasing importance of this vertical to Codan and reflecting the global tailwinds of sovereignty and increased defence spending commitments.

Codan said revenue from the unmanned sector more than doubled to $215 million over FY26.

In the metal detection division, Codan said the result was “exceptional”, with revenue up 42% to $362 million and segment profit up 65% on FY25.

The company added:

Minelab successfully launched four new products in FY26 in the gold, recreational and countermine markets, including the new flagship GPZ8000 gold detector, the Gold Monster 2000, the Vanquish 60 and Countermine’s MDS-20 detector. These launches reflect Minelab’s global technology leadership across its detection portfolio.

On the outlook, Codan said it was entering FY27 with positive momentum.

The communications division is targeting full year revenue growth in the order of 20%, with the first half of the year to be “significantly” strong than the same period in FY26. Minelab is well positioned for FY27, with a full 12-month contribution from recently launched products. Early H1 FY27 market conditions have been positive, with strong demand in particular for the new GPZ8000 and Gold Monster 2000 detectors.

The company will provide a further update at its annual general meeting on 20 October.

The post Codan shares hit a new record high after the company predicts another strong year 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.

If I had $10,000 to invest in Vanguard exchange-traded funds (ETFs) today, these three would be on my shortlist.

Each offers a different way to invest for long-term growth. Here is why I like them.

Vanguard Global Technology Index ETF (ASX: VTEK)

The Vanguard Global Technology Index ETF would be my choice for investors wanting more exposure to global technology.

The fund invests in hundreds of technology stocks across developed and emerging markets.

That includes businesses involved in areas such as semiconductors, software, cloud computing, artificial intelligence (AI), and digital infrastructure.

I like this approach because technology is becoming increasingly important across almost every industry. Businesses are spending heavily on computing power, automation, cybersecurity, and digital services, and I expect that trend to continue for many years.

Of course, a technology-focused ETF can be volatile, particularly when valuations are high or growth expectations change.

But for money I could leave invested for the long term, I think the VTEK ETF offers an interesting way to back one of the strongest structural growth areas in the global economy.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

I would also consider the VAE ETF. This fund gives investors access to Asian markets outside Japan, including major economies such as China, India, Taiwan, and South Korea.

For me, that opens the door to a different set of long-term opportunities.

Asia is home to some of the world’s largest populations, rapidly developing consumer markets, and important businesses across technology, manufacturing, financial services, and other industries.

It can also complement a portfolio already heavily exposed to Australia or the United States.

There will be periods when Asian markets struggle, and political, regulatory, and economic risks can be higher in some countries.

Even so, I think the region has plenty of potential over the next decade, and the VAE ETF provides a simple way to gain diversified exposure.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF takes a different approach.

Rather than focusing on one region or sector, the fund combines a range of Australian and international investments in a single ETF.

Around 90% of the portfolio is generally allocated to growth assets such as shares, with the remainder in more defensive investments.

I think that makes the VDHG ETF particularly interesting for investors who want a broadly diversified portfolio without having to build and rebalance it themselves.

It could work as a major holding in a portfolio, or simply as another diversified investment alongside existing shares and ETFs.

The high allocation to shares means it can still fall sharply when markets struggle. But over a long timeframe, I like the balance between diversification and growth potential.

Foolish takeaway

I like all three of these Vanguard ETFs for the long term.

The VTEK ETF gives me exposure to global technology, the VAE ETF adds some of Asia’s biggest growth markets, while the VDHG ETF offers a much broader approach.

They are quite different investments, but I think each could have a place in a long-term portfolio.

The post Why I’d invest $10,000 in these strong Vanguard ETFs 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It hasn’t been a great start to the week for Wildcat Resources Ltd (ASX: WC8) shareholders.

The lithium stock has dropped 10.29% to 30.5 cents in morning trade after returning from a trading halt.

It hit as low as 29.25 cents during market open.

That leaves Wildcat shares down almost 13% over the past week and around 22% over the past month.

By comparison, the All Ords Index (ASX: XAO) is down just 0.34% on Monday.

So, let’s take a closer look at what exactly did Wildcat announce?

Why are the shares falling?

According to the release, Wildcat has received firm commitments to raise $60 million through an institutional placement.

The placement was supported by new and existing institutional investors, including specialist global resources funds.

Around 196.7 million new shares will be issued at 30.5 cents each.

That price represents a 10.3% discount to Wildcat’s last traded price of 34 cents and an 11.2% discount to its 5-day VWAP.

Wildcat currently has around 1.41 billion shares on issue, so the placement will increase the share count by roughly 14%.

What will the money be used for?

The cash is being directed towards Wildcat’s Tabba Tabba lithium project in Western Australia.

The company plans to use the money on early works, including process plant engineering, roads, village development and potentially ordering long-lead equipment.

Funds will also go towards regional exploration, site establishment and other work needed to get the project ready for construction.

Wildcat said it’s targeting completion of its Definitive Feasibility Study (DFS) during calendar 2026.

Wildcat is also in advanced discussions with commercial banks, specialist financiers, government funding agencies, strategic partners and potential Tier-1 customers.

How big is Tabba Tabba?

Tabba Tabba already has a maiden mineral resource of 74.1 million tonnes grading 1% lithium oxide.

That includes a probable ore reserve of 46.3 million tonnes at 0.99% lithium oxide.

The project is around 80 kilometres by road from Port Hedland and sits near two major Pilbara lithium operations, Pilgangoora and Wodgina.

Wildcat is continuing exploration across the area while it works through the development studies.

What happens next?

Most placement shares will be issued under Wildcat’s existing placement capacity, with settlement of the first tranche expected on Friday 25 September.

A smaller second tranche of around 13.1 million shares will require shareholder approval at a general meeting expected in November.

The first tranche shares are then expected to be allotted and begin trading on Monday 28 September.

The post Why is this ASX lithium stock crashing 10% on Monday? 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 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 ASX car stock is hovering near a 52-week low, and investors have plenty to digest. At $19.52 at the time of writing, Eagers Automotive Ltd (ASX: APE) shares are down around 14% over the past month and 26% over the past 12 months.

That’s a striking reaction for a company that just delivered record first-half revenue and underlying profit. So what exactly is spooking the market?

Eagers is getting bigger — fast

Eagers is Australia’s largest automotive retailer, sitting across a sprawling portfolio of brands including Toyota, Kia, Mercedes-Benz, Audi, Geely, and BYD. The $5 billion ASX car stock now represents more than 33 car brands and 11 truck and bus brands. And management shows zero signs of slowing down.

In April, Eagers completed its 65% investment in Canadian dealership giant CanadaOne Auto, effectively creating a much larger international automotive retail platform. On an FY25 pro-forma basis, the combined group would have generated $18.7 billion of revenue and $968.6 million of EBITDA. That’s a serious step-change in scale.

Then came Australia. Eagers agreed to invest 49% in Grand Motors Group, covering dealerships representing Toyota, BMW, MINI, Kia, Mazda, and Subaru, while also snapping up two Audi dealerships from Zagame. Together, those deals add roughly $630 million of annual revenue.

Now Eagers is going upmarket

The latest move might be the most eye-catching yet. Eagers has entered a non-binding agreement to acquire a 50% stake in Zagame Automotive Group, the Melbourne and Adelaide luxury-car retailer, via a joint venture with founder Bobby Zagame. The business pulled in about $600 million of revenue in the year to June 2026.

Zagame’s portfolio isn’t your average showroom. Think Ferrari, Lamborghini, and Rolls-Royce. That deal hands the ASX car stock considerably more exposure to the luxury and super-luxury end of the market, a segment it’s had relatively little presence in until now.

But bigger doesn’t automatically mean better

On paper, the business is firing. First-half FY26 revenue surged 24% to about $8.1 billion, while underlying profit before tax hit $250.4 million. Those are genuinely strong numbers.

The concern is what comes next. CanadaOne, Grand Motors, and Zagame all represent substantial additional capital commitments, plus real integration complexity across different countries, brands, and price points.

At the same time, investors are watching margins nervously as the automotive industry navigates a major transition. New brands are flooding the market, consumer preferences are shifitng, and pricing pressure shows no sign of easing.

Bull case vs bear case

The bull case for the ASX car stock is straightforward: Eagers is assembling a diversified global automotive retail powerhouse, spanning mainstream, luxury, and international markets, that could compound earnings for years.

The bear case is just as easy to make: Management is expanding aggressively at precisely the moment the economics of traditional car retail are becoming harder to predict, and each new acquisition adds another layer of execution risk.

The post This ASX car stock is tanking. Has it overreached? appeared first on The Motley Fool Australia.

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

Tabcorp Holdings Ltd (ASX: TAH) and National Australia Bank Ltd (ASX: NAB) shares are both outpacing the S&P/ASX 200 Index (ASX: XJO) in morning trade on Monday.

At time of writing the ASX 200 is down 0.2%.

Trading for 92 cents apiece, Tabcorp shares are up 1.1% at this same time, while NAB shares are just in the green, up 0.1% at $38.51 each.

Taking a step back, however, both stocks have underperformed the 0.1% losses posted by benchmark index in 2026.

Year to date, NAB shares have slipped 9.2% while the Tabcorp share price is down 8.1% this calendar year.

Although that’s not including the dividends both companies pay. Tabcorp trades on a 3.2% unfranked trailing dividend yield, while NAB trades on a fully franked 4.4% trailing dividend yield.

But, dividends or not, Catapult Wealth’s Dylan Evans expects that growing headwinds leading into 2027 put both of these popular ASX 200 stocks on the sell list (courtesy of The Bull).

Here’s why.

Time to exit NAB shares?

Evans noted NAB’s relatively strong Q3 performance.

“Revenue grew by 2 per cent in the third quarter of fiscal year 2026 when compared to the first half quarterly average. Cash earnings also increased by 2 per cent,” he said.

But the growth may not be sustainable in the coming quarters.

“In our view, the broader banking sector is facing several headwinds,” Evans added.

Summarising his sell recommendation on NAB shares, he said:

The Federal government announced changes to capital gains tax and negative gearing in the May Budget. Investment loan applications have slowed amid a cost of living crisis. While the NAB business is well managed and the balance sheet is solid, it’s difficult to identify any significant growth on the horizon.

Investors may want to consider taking some profits and explore superior earnings growth opportunities elsewhere.

Should you sell Tabcorp shares today?

Atop his bearish assessment for the outlook of NAB shares, Evans also issued a sell recommendation on Tabcorp shares.

“Tabcorp is the largest multi-channel wagering brand in Australia,” he said.

Looking at Tabcorp’s FY 2026 results, Evans said:

The company generated group revenue of $2.636 billion in full year 2026, up 0.8 per cent on the prior corresponding period. Group EBITDA [earnings before interest, taxes, depreciation and amortisation] of $431.7 million was up 10.3 per cent.

But, as with NAB, Tabcorp could be facing some mounting headwinds.

Commenting on his sell recommendation, Evans said:

In our view, a major challenge for Tabcorp is the highly competitive gambling industry and the underlying trend towards digital wagering amid the risk of potentially tighter regulations. The company expects domestic wagering turnover growth in fiscal year 2027 to be broadly consistent with fiscal year 2026, excluding the FIFA World Cup.

The shares have fallen from $1.17 on May 1 to trade at 90 cents on September 17. Other stocks appeal more at this stage of the cycle.

The post Sell alert! Why this expert is calling time on Tabcorp and NAB shares appeared first on The Motley Fool Australia.

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