Author: openjargon

Xero Ltd (ASX: XRO) shares have had a brutal run. Over the past 12 months, the ASX tech stock has swung between a low of $61.45 and a high of $166.00. At the time of writing, Xero shares sit at $62.78, hovering just above that 52-week low and a full 62% below the year’s record high.

The recent trend hasn’t been kind either. Xero shares finished the week as one of the big losers with a loss of 4% on Friday. The stock is down 9% over the past five trading days, 24% over the past month, and a painful 45% so far in 2026.

And yet, through all of that, brokers remain stubbornly bullish. Here’s why.

Betting bigger than just accounting software

Xero isn’t just trying to sell more accounting subscriptions anymore. The team at Macquarie Group Ltd (ASX: MQG) has flagged US growth and AI monetisation as key catalysts for Xero shares to watch.

The company estimates the US small-business payments market alone represents a US$29 billion opportunity. The acquisition of Melio has dramatically expanded what Xero can chase. The ambition now is bigger than bookkeeping. Xero wants to put accounting, payments, payroll and expenses under a single roof.

It effectively tries to become the financial operating system for millions of US small businesses. Xero says the Melio deal delivered an approximately threefold increase in North American revenue from day one.

It’s also stretching its reach beyond small businesses into self-employed customers and medium-sized businesses too. With Melio, pro forma FY26 US revenue reached NZ$530 million, up 50%, and pro forma gross profit rose 36% to NZ$186 million.

Melio supplies the payments engine, Xero adds payroll and other financial tools, and a new US leadership structure is being built specifically to accelerate customer acquisition and integrate the two businesses.

Enter Artificial Intelligence

Layer artificial intelligence on top, and the strategy gets considerably more interesting. Xero is developing JAX, its agentic AI platform, aiming to move beyond simply reporting financial information toward actually automating financial work.

AI-powered analytics are also being embedded across the platform, with the long-term goal of shifting Xero from a system of record into a system of action.

Put it together, and the bull case for Xero shares becomes a simple formula: win more US customers, sell more products to each one, grab a slice of a massive payments market, and use AI to make the whole platform more valuable.

If Xero pulls this off, the upside case stops being about accounting software altogether. It becomes about owning a much bigger slice of the small-business financial stack.

What are brokers saying?

Despite the carnage in the share price, broker’s sentiment hasn’t cracked.

TradingView’s poll of the past three months shows a buy consensus. There are 6 buy or strong buy ratings, just 1 hold, and zero sells on Xero shares. The average 12-month target sits at $111.24. That suggest roughly 76% upside from current levels. The most bullish target implies potential upside of 130%.

Individual calls back that up. Citi has reiterated its buy call with a $113.60 target, implying around 81% upside. Morgan Stanley sees $130, and UBS sits at $127.

Ord Minnett and Morgans are more conservative at $110 and $111, while RBC Capital and Jefferies bring up the cautious end at $85 and $77. Even so, these targets imply upside of 35% and 23%, respectively, from the current share price.

The post Why brokers think Xero shares could surge 130% from here appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy and hold for a decade
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Forget Xero shares! Broker tips this top ASX tech stock for 24% gains
• Why Macquarie’s $321 million Shield problem is back in court
• 5 ASX shares I’d recommend to beginners

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

The S&P/ASX 200 Index (ASX: XJO) has endured a flat year in 2026, and has been outpaced by many international markets. 

Australia’s benchmark index has been weighed down by high interest rates, inflation and fears around global conflict. 

These have hit sectors like finance/banking, which represent a strong portion of the ASX 200. 

Despite the disappointing performance, this has created value opportunities for quality companies. 

One such ASX 200 stock firmly in my sights is SGH Ltd (ASX: SGH). 

Company overview 

SGH is a diversified industrial and investment group, with interests in heavy-equipment sales, service and equipment hire, media and broadcasting, oil and gas, and developable property. 

The ASX 200 company has seen its share price fall more than 20% year to date. 

Despite this, the underlying fundamentals look relatively strong. 

In its full-year results released in August, the company reported a net profit of $689.2 million, up 31.8%, even as revenue slipped 1.4% to $10.59 billion.

Revenue was broadly in line with the prior year. Underlying NPAT of $920 million and underlying EPS of $2.26 were broadly flat. Statutory NPAT of $655 million was up 35%.

SGH MD & CEO Ryan Stokes, said: 

FY26 was a year of disciplined delivery in variable market conditions. We grew earnings in line with guidance, expanded margin again, and converted 99% of EBITDA to cash. That result is a credit to our people across every business, and their commitment to serving our customers and running our operations well every day.

Morgans sees upside for this ASX 200 stock

Recent share price weakness has now pushed this ASX 200 stock firmly into value territory. 

In a recent note from Morgan’s, the broker slightly lowered its price target but maintained a positive long-term view on the company. 

Following the FY26 results season we have reviewed our forecast assumptions for SGH’s 30% share in BPT, flowing through the lower earnings detailed in our FY26 BPT results note (Link). With our sum-of-the-parts (SOTP) valuation tied to our BPT price target and the Crux valuation, an NPV of future cashflows, our SGH valuation declines modestly to $48/sh (previously $50/sh), whilst retaining our BUY recommendation.

Based on this target, Morgans anticipates up to 30% growth for this ASX 200 stock. 

This expectation is consistent with other brokers. 

Based on 12 analyst targets via TradingView, the average 12 month target is $48.71. 

The post Why this ASX 200 stock is a compelling buy with 30% upside appeared first on The Motley Fool Australia.

More reading

• 40 ASX shares with ex-dividend dates next 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.

Codan vs Pro Medicus shares: which growth stock offers better value?

Keen on growth shares but not sure whether Codan Ltd (ASX: CDA) or Pro Medicus Ltd (ASX: PME) is the smarter buy? Both names have built reputations as high-performing Aussie tech businesses, but dig deeper and you’ll quickly notice some big contrasts. Let’s break down what sets Codan and Pro Medicus apart when it comes to value, growth, and recent momentum.

The case for Codan

Codan is a global technology player, best known for high-tech communications, metal detection, and mining solutions. Through segments like Codan Communications, Minelab, Minetec, and Defence Electronics, the company serves government, military, and commercial customers in dozens of countries. According to its company profile, Codan controls its own products end-to-end, with manufacturing plants in Australia and Malaysia, and a sales footprint concentrated in North America.

What stands out for Codan right now is just how quickly it’s compounded shareholder value. Its year-to-date return sits at a jaw-dropping 73.85%, which is rare in any market. The company’s P/E ratio is on the higher side at 51.03, suggesting it’s priced as a growth stock with high expectations. A dividend yield of 0.99% (fully franked, no less) won’t turn heads for income buffs, but it’s at least ahead of most tech or high-growth names. And with a market cap of $8.86 billion, Codan is a sizeable mid-cap player with room to grow.

The case for Pro Medicus

Pro Medicus sits at the cutting edge of digital healthcare, supplying advanced radiology and medical imaging systems across the globe. Hospitals and specialists use its solutions for everything from clinic scheduling to storing and analysing gigantic medical images. As per its most recent public description, the majority of Pro Medicus’s success story has played out in the US, where many prestigious hospitals have adopted its technology.

This is a genuine tech darling with a reputation for growth. But currently, it’s sporting an even loftier P/E ratio of 65.19 — a premium reserved for companies where investors expect mammoth expansion. The market cap, at $17.68 billion, puts Pro Medicus in a different league to Codan. It does pay a dividend (0.42% yield, fully franked), so there’s at least a nod to returning cash, but it’s definitely a token amount. What’s more, the company’s shares are actually down year to date by 24.84%, a reminder that even the best growth stories can be hit by buyer fatigue or lofty expectations.

Valuation comparison

There are clear valuation and size gaps between the two. Here’s a quick look at the most relevant numbers:

Metric	Codan	Pro Medicus
Market Cap	$8.86 billion	$17.68 billion
P/E Ratio	51.03	65.19
Dividend Yield	0.99% (100% franked)	0.42% (100% franked)
Year To Date Return	+73.85%	-24.84%
Earnings per Share	0.705	2.536

Codan looks much cheaper on P/E, yields more, and has sharply outperformed on share price this year. Pro Medicus, meanwhile, is the market’s clear growth favourite over the long haul, but carries a heavier price tag and steeper expectations.

Recent share price performance

Let’s take a look at how these stocks have fared in recent weeks.

Codan’s share price moved from $43.48 on 19 August 2026 up to $48.59 on 17 September 2026, a gain of around 12%. There were a few volatile days — most notably, a 12.42% jump on 20 August — but the overall momentum stayed very strong.

Pro Medicus tells a very different story. Its shares fell from $198.85 on 19 August 2026 to $169.22 on 17 September 2026 — a drop of about 15%. The ride included a few sharp single-day rallies, including a massive 11.88% spike on 18 August. But the prevailing trend these past weeks has been downward.

Which is the better buy?

If I have to call it between Codan and Pro Medicus right now, I’d lean toward Codan as the better value growth pick. Codan’s recent outperformance has been eye-catching, especially when set against Pro Medicus’s pullback this year. The valuation gap is clear, with Codan’s P/E notably lower and its dividend yield higher (while still fully franked).

Pro Medicus has enormous long-term potential and should remain high on the watchlist, but at a P/E over 65 and negative returns year to date, I think it’s priced too rich for my liking just now — especially when Codan is delivering growth and market-beating returns today. For me, Codan ticks more of the right boxes for Aussie investors after a rare combination of momentum and value in the growth space.

The post Codan vs Pro Medicus: Which ASX growth stock is better value? appeared first on The Motley Fool Australia.

More reading

• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• Here are the top 10 ASX 200 shares today
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?
• Codan vs Droneshield shares: Which is the better buy?
• 3 ASX 200 shares tipped by experts to jump 30% to 62%

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

Westpac Banking Corp (ASX: WBC) and the other major banks are popular choices with Australian income investors.

But there are plenty of other ASX shares that can provide attractive income.

These three would be on my shortlist.

APA Group (ASX: APA)

APA would be one of my first choices outside the banking sector.

The company owns and operates energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and other infrastructure.

I like the type of cash flow these assets can produce.

Much of APA’s revenue is supported by long-term contracts, which can give the company reasonable visibility over future earnings and distributions.

APA is also continuing to invest in new infrastructure as Australia’s energy system develops. If those projects earn attractive returns, they could help the business grow while its existing assets continue generating cash.

Debt and funding costs are important risks to watch with an infrastructure company like APA. Even so, I think its essential assets and regular distributions make it a strong long-term income option.

BWP Trust (ASX: BWP)

BWP Trust gives investors a different source of income through commercial property.

The real estate investment trust (REIT) owns a portfolio of large-format retail properties, with Bunnings a major tenant.

I like that because the quality of the tenant can be just as important as the property itself.

Bunnings has a strong position in Australian home improvement, and long leases can provide BWP with relatively predictable rental income.

Over time, rent reviews and changes across the property portfolio can also help increase income.

Like most property investments, BWP can be sensitive to interest rates and changes in property valuations. I would also keep an eye on its tenant concentration.

But for an income investor, I think the combination of established properties, a strong major tenant, and regular distributions is worth considering.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties would be my third income pick. The company earns royalties from mining operations rather than operating the mines itself.

Its most important asset is the royalty over the Mining Area C iron ore operations in Western Australia, which are operated by BHP Group Ltd (ASX: BHP).

I like that model for income because Deterra receives a share of revenue linked to production without having to fund the enormous operating and development costs that come with running a mine.

That can allow a large proportion of cash generated by the business to flow through to shareholders.

The trade-off is that Deterra’s income can still move with commodity prices and production volumes, while the business has historically been heavily dependent on one major royalty asset.

Even with those risks, I think the royalty model gives income investors an interesting way to gain exposure to resources.

Foolish takeaway

I would not feel the need to rely on bank dividends alone for ASX income.

APA, BWP Trust, and Deterra Royalties generate cash in very different ways, through energy infrastructure, property rents, and mining royalties.

For me, that makes all three worth considering when looking beyond the major banks for long-term income.

The post 3 ASX income shares I’d buy outside Westpac and the major banks appeared first on The Motley Fool Australia.

More reading

• Rio Tinto vs APA Group: Which is better for passive income?
• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• 2 ASX dividend shares raising dividends like clockwork
• How much do I need in superannuation to receive $1,000 passive income per week?
• How to make $26,000 of passive income from ASX shares

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 positions in and has recommended Apa Group. 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.

How much you can earn in wages and/or investment income while remaining eligible for the age pension increases today.

The changes reflect indexation adjustments, which are made twice per year, to factor in inflation.

Let’s find out what’s changing today.

When can you get the age pension?

If you were born on or after 1 January 1957, you can apply for the pension when you turn 67 years old, whether retired or not.

To be eligible for either a full pension or part-payment, you have to clear the means testing.

That means testing comes in the form of assets and income tests.

Today, the rules for both tests change.

In this article, we’re focusing on the income test changes. (Go here for the assets test changes.)

What’s changing with the age pension income test today?

Under today’s indexation changes, the upper thresholds for the income test are going up.

Currently, singles who earn less than the lower threshold of $226 per fortnight are eligible for the full age pension.

Under today’s changes, singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight qualify for a part-payment.

Part-payments are calculated by reducing the pension by 50 cents for each dollar earned above $226.

As for couples, those who earn less than the lower threshold of $396 per fortnight (combined) are eligible for the full age pension.

Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight qualify for a part-payment.

A couple’s pension is reduced by 25 cents per person for each dollar they earn above $396.

What is the Work Bonus?

The Work Bonus cuts the amount of income that counts in a pensioner’s fortnightly income test.

Every fortnight, $300 credit is added to your Work Bonus balance, up to a maximum of $11,800.

When you work and declare that income, your Work Bonus balance offsets those earnings.

That may mean you receive your normal pension payment, despite your work earnings, for that fortnight.

If your earnings are greater than your Work Bonus balance, the excess counts toward your income test for that fortnight.

This may mean you receive a lower pension payment for that fortnight.

What about investment income?

Pensioners do not need to declare the exact income from each of their financial investments, with one exception.

The exception is investment properties. Rental income is assessed separately, and you need to declare the actual amount.

For everything else, deeming rates determine your investment income for the purposes of the pension income test.

Deeming rates are going up today, but they are still generously low.

The lower deeming rate is now 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.

Everything above these amounts will be deemed to have earned the new upper deeming rate of interest, which is 3.75%.

Right now, that rate is still below what you’d actually earn if invested in plain old cash or ASX dividend shares. 

Cash in savings accounts is earning more than 5% these days.

As for dividend shares, the ASX 200 provided an average 4.23% dividend yield in FY26. (Check out which sectors paid the most here.)

Assuming full franking, that grosses up to a total of 6% earnings.

The post How much income can you earn and still get the age pension under new rules starting today? appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs to buy and hold for 10 years
• REA Group vs CAR Group: Which is best for income investors?
• ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike
• Top brokers name 3 ASX shares to buy next week
• Age pension rises $37 per fortnight 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 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.

I think buy and hold investing can be a great way to build wealth over the long term.

And ASX exchange traded funds (ETFs) can be particularly helpful because they make it easy to invest in a collection of companies in one trade.

But which ones could be top buy and hold candidates? Here are three that could be worth considering:

Global X AI Infrastructure ETF (AUD) (ASX: AINF)

The Global X AI Infrastructure ETF could be a strong option for investors that are wanting exposure to the buildout behind artificial intelligence (AI).

This fund focuses on the companies providing the physical infrastructure needed to support AI.

That includes semiconductor businesses, data centre equipment providers, networking companies, power infrastructure, cooling systems, and other businesses involved in keeping increasingly powerful computing systems running.

The long-term opportunity here is easy to understand. AI requires enormous amounts of computing power, and that means more chips, more data centres, more electricity, and more supporting infrastructure.

Rather than trying to identify which AI application will ultimately become the biggest winner, the Global X AI Infrastructure ETF gives investors exposure to the companies helping make the entire industry possible.

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

Another ASX ETF to consider for the next decade is the Vanguard FTSE Asia ex Japan Shares Index ETF.

This fund gives investors exposure to companies across major Asian markets outside Japan. This includes businesses from countries such as China, Taiwan, South Korea, India, and Singapore.

Having this sort of exposure could be a very good thing. The region is home to enormous populations, rising incomes, major manufacturing hubs, leading technology companies, and increasingly important consumer markets.

Over the next decade, growing wealth across Asia could support demand for financial services, healthcare, technology, consumer products, travel, and many other industries. This bodes well for the holdings in the Vanguard FTSE Asia ex Japan Shares Index ETF.

VanEck Video Gaming and Esports AUD ETF (ASX: ESPO)

A final ASX ETF for investors to look at is the VanEck Video Gaming and Esports ETF.

Video games have grown from a relatively niche hobby into a huge global entertainment industry competing with film, television, music, and social media for people’s time and money.

The industry has also changed significantly. Games can now generate revenue for years through downloadable content, subscriptions, in-game purchases, online communities, and recurring updates.

VanEck Video Gaming and Esports ETF gives investors exposure to companies involved in developing games, publishing them, creating gaming hardware, and supporting the wider industry. This includes giants such as Nintendo, Tencent, and Take-Two Interactive.

The post 3 amazing ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• How much could $10,000 invested in these AI focussed ETFs be worth in a year?
• 2 Vanguard ETFs I’d buy and hold for a decade

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 positions in and has recommended Take-Two Interactive Software. 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.

REA Group vs CAR Group shares: Which is better for income?

Comparing REA Group Ltd (ASX: REA) and CAR Group Ltd (ASX: CAR) might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively. But for income-focused investors, there are some clear differences between REA and CAR shares worth digging into. If you’re searching for franked dividends, capital growth or just a reliable yield, here’s how these two stack up.

The case for REA Group

REA Group runs the dominant realestate.com.au platform in Australia, a go-to site for property buyers, sellers, and renters. The company also has exposure to complementary businesses such as mortgage broking and property data, adding some diversification to its earnings.

Looking at the fundamentals, REA is a $20.84 billion business with a P/E ratio of 30.98, making it a premium-priced market leader. Its 1.88% dividend yield won’t knock your socks off, but it’s underpinned by 100% franking—perfect for Aussie investors who can use those tax credits. REA’s earnings per share (EPS) sits at $5.106, and dividend history shows steady growth over recent years, with payments fully franked as far back as the records go.

REA’s business is solid, especially with its dominant market position in online property listings and services. According to its most recent public description, it’s got a stronghold over the residential and commercial property websites sector in Australia and growing reach overseas.

The case for CAR Group

CAR Group, most familiar to Aussies as the owner of carsales.com.au, is a leader in online automotive classifieds. But CAR has expanded beyond Australian shores, with stakes in major auto marketplaces across South Korea, the US, Chile and Brazil. This international reach gives it multiple growth levers that don’t depend solely on the local market.

Fundamentally, CAR Group has a $9.09 billion market cap—smaller than REA but still substantial. Its P/E ratio is 29.01, a touch lower than REA’s, and its dividend yield is a standout at 3.58%. The shares come with only partial franking (recent dividends ranged from 30–50%), so the after-tax yield for Australian shareholders isn’t quite as attractive as a fully-franked payout, but the grossed-up yield still compares favourably. The latest annual dividend per share is $0.87, and the company has lifted dividends steadily in recent years.

CAR Group’s diverse earnings base across multiple countries and digital marketplaces adds some resilience in case the Australian car or job market slows.

Valuation comparison

Here’s a side-by-side of the key numbers:

Metric	REA Group	CAR Group
Market Cap	$20.84b	$9.09b
P/E Ratio	30.98	29.01
Dividend Yield	1.88% (100% franked)	3.58% (30–50% franked)
Dividend per Share	$3.46	$0.87
Earnings Yield	3.23%	3.45%
Year-to-date Return	-12.11%	-19.12%

REA is pricier on most measures, but CAR delivers a higher headline yield. However, REA’s fully franked dividends make it more tax effective for some income-driven investors.

Recent share price performance

Both companies have seen share price declines in 2026 so far, but REA has held up a bit better.

REA’s share price history (18 August–17 September 2026) shows a drop from $178.62 (on 18 August) to $159.22 (17 September): a fall of about 11%.

CAR Group’s price history (same 18 August–17 September 2026 period) starts at $29.10 and ends at $23.97, a decline of roughly 18%.

So over this snapshot, both have tracked down with the broader market, but CAR Group has seen a steeper fall.

Which is the better buy?

For income investors, I’m leaning towards CAR Group. While REA Group’s fully franked dividends are gold for some—especially for retirees or those keen to maximise franked income—the yield is modest at 1.88%. With CAR now offering a 3.58% yield (albeit with only partial franking), the gross cash return is much stronger.

That said, if you place a high value on franking credits, or you want the perceived safety that comes with REA’s virtual monopoly on real estate listings (and you don’t require much income), REA is hard to beat in terms of stability and after-tax benefit.

But if income is truly the goal and you can live with 30–50% franking, my pick would be CAR Group for its significantly higher yield and solid record of dividend growth.

The post REA Group vs CAR Group: Which is best for income investors? appeared first on The Motley Fool Australia.

More reading

• Why this expert believes it’s time to exit positions in REA Group shares
• Buy, hold, sell: James Hardie, REA Group, and Ramelius shares
• 5 things to watch on the ASX 200 on Friday
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares
• 3 ASX 200 shares forecast to fly 30% to 40% higher

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

ASX 200 healthcare shares led the 11 market sectors last week with a 3.76% gain over the five trading days.

The broader S&P/ASX 200 Index (ASX: XJO) slipped 0.11% over the week to 8,731.2 points on Friday.

The market was volatile on increased bets of another interest rate hike due to persistently high inflation.

The market is pricing an 82% chance that the Reserve Bank will lift rates by another 0.25% at the end of the month.

Last week, the US Fed raised rates for the first time in three years, and Japan also increased rates to a 30-year high.

Elevated oil prices due to the US-Iran conflict continue to contribute to stubborn inflation worldwide.

Last week, eight of the 11 market sectors finished in the red.

Let’s review.

Healthcare led the market sectors last week

Healthcare is continuing its rapid rebound following a 29% slump over the 12 months to early June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low on 3 June.

Healthcare shares have ripped 43% since then compared to a 0.6% fall for the ASX 200.

The CSL Ltd (ASX: CSL) share price popped 5.08% to $175.59 last week, and it’s up 90% since 3 June. 

Resmed CDI (ASX: RMD) shares rose 5.15% to $31.87, and are 23% higher since 3 June. 

Pro Medicus Ltd (ASX: PME) shares jumped 3.18% to $169.57 on Friday, and are up 6% since 3 June. 

The Ramsay Health Care Ltd (ASX: RHC) share price lifted 3.44% to $55.39, and is up 52% since 3 June. 

Sonic Healthcare Ltd (ASX: SHL) shares edged 1.26% higher to $19.24, and are up 2% since 3 June.

Telix Pharmaceuticals Ltd (ASX: TLX) shares jumped 13.91% to $17.85 on Friday, and are up 46% since 3 June.

The 4DMedical Ltd (ASX: 4DX) share price leapt 28.27% to $4.31, and is up 14% since 3 June. 

Chemist warehouse owner Sigma Healthcare Ltd (ASX: SIG) bucked the trend last week.

Sigma Healthcare shares fell 3.04% to $2.55, and are 12% lower since 3 June. 

The Cochlear Ltd (ASX: COH) share price also fell 0.18% to $133.90 last week.

Cochlear shares have recovered 41% since 3 June. 

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
Healthcare (ASX: XHJ)	3.76%
Utilities (ASX: XUJ)	0.5%
Communication (ASX: XTJ)	0.03%
Industrials (ASX: XNJ)	(0.02%)
Consumer Discretionary (ASX: XDJ)	(0.14%)
Financials (ASX: XFJ)	(0.21%)
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The post ASX 200 healthcare shares lead a weaker market amid 82% chance of a rate hike appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL, Cochlear, Pro Medicus, Sonic Healthcare, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Morgans, its analysts have upgraded this quick service restaurant operator’s shares to a buy rating with a $31.00 price target. The broker has been looking at recent industry data and notes that consumer spending has been soft, particularly at the low income side of the market. And with interest rates potentially heading higher from here, the broker concedes that the industry outlook is challenging. Nevertheless, it feels that this is more than priced into Guzman Y Gomez shares at current levels following recent weakness. As a result, the broker feels now could be an opportune time to invest. The Guzman Y Gomez share price ended the week at $25.61.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Bell Potter reveals that its analysts have upgraded this fashion jewellery retailer’s shares to a buy rating with a $27.00 price target. Bell Potter has been looking ahead to the company’s annual general meeting in November. The broker highlights its belief that Lovisa will experience relatively easier comparables and retain most of the growth reported at the start of FY 2027 when it provides its trading update. It notes that this will be supported by the fact that around 80% of revenue occurs outside Australia. The exit of a key competitor should also provide further support and offset risks in the local market. In light of this and recent share price weakness, the broker sees the current valuation as attractive. The Lovisa share price was fetching $22.62 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Citi have retained their buy rating and $24.60 price target on this network solutions company’s shares. According to the note, the broker believes Megaport is well-placed to continue benefiting from increased spending on artificial intelligence inference. In fact, Citi believes the only risk is executing on its strong compute pipeline. And with its strong balance sheet and attractive contract economics, the broker believes Megaport is positioned to pursue further contract wins. Though, it concedes that significant contracts could require another equity raising to fund. The Megaport share price was trading at $18.54 at the end of the week.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• These 2 ASX fast food companies could jump 23% to 33%
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares
• Lovisa vs Temple & Webster: Which ASX retailer is the better growth stock today?
• Nextdc vs Megaport: Which ASX tech growth share comes out on top?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Lovisa and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Megaport. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Single pensioners will get an extra $36.80 per fortnight under inflation adjustments to the age pension effective today.

This raises the full pension payment to $1,237.70 per fortnight.

Couples on the full pension will receive an extra $27.80 per partner, per fortnight, or $55.60 combined per fortnight, from today.

This increases the full pension to $933 per partner, per fortnight, or $1,866 combined per fortnight.

Is the pension enough to fund your retirement?

No, it’s not.

Annually, the newly adjusted full age pension totals $32,180.20 for singles and $48,516 for couples.

The ASFA Retirement Standard, which is considered Australia’s benchmark retirement budgeting tool, lays out the costs of living today.

AFSA says a comfortable retirement costs $56,166 per year for single homeowners and $78,998 per year for couple homeowners.

A modest retirement costs $36,548 per year for single homeowners and $52,690 per year for couple homeowners.

For renters, a modest lifestyle costs $51,418 per year for singles and $69,376 for couples.

ASFA does not provide a cost estimate for a comfortable retirement for renters.

These figures are in today’s dollars, and ASFA adjusts them quarterly to account for inflation.

ASFA lays out exactly what it means by a ‘comfortable’ retirement and a ‘modest’ lifestyle here.

What’s the gap?

For a comfortable retirement, single homeowners receiving the full age pension need to plug a $23,985.80 hole every year.

Couple homeowners aiming for a comfortable retirement need to find $30,482 per year to cover the gap.

For a modest retirement, single homeowners receiving the full pension need another $4,367.80 to cover their living costs.

Couple homeowners getting the full pension need to find $4,174 per year to fund a modest retirement lifestyle.

Single renters on a full pension face a gap of $19,237.80 per year to fund a modest retirement.

Couple renters on a full age pension need to find $20,860 per year to fund their costs of living.

So, how do you find that extra money?

The most obvious way, of course, is superannuation.

When people retire, they typically transfer their superannuation from the accumulation phase into an account-based pension.

This moves their super into what’s known as the retirement phase, where investment earnings are generally tax-free.

Pension payments from your superannuation are also generally tax-free once you’re aged 60 or over.

But there’s a catch…

If you have a large amount of money in superannuation, you’re unlikely to be eligible for the full age pension from Centrelink.

However, as you draw down your super throughout retirement, you may eventually become eligible for the full payment, depending on the value of all your assets combined.

The pension is means tested using an assets test and an income test.

Assessable assets include your superannuation, ASX shares, bonds, investment properties, cash, and home contents.

Under the assets test, single homeowners whose assets are worth less than $333,000 qualify for the full age pension.

Single homeowners whose assets are worth between $333,001 and $745,750 are eligible for a part-payment.

Couple homeowners whose assets are worth less than $499,000 qualify for the full age pension.

Couple homeowners who have between $499,001 and $1,121,000 in assets are eligible for a part-payment.

The post Age pension rises $37 per fortnight today appeared first on The Motley Fool Australia.

More reading

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• I’m planning to retire with $1 million in superannuation. How much passive income can I earn? 
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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 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.