Category: Stock Market

JB Hi-Fi Ltd (ASX: JBH) shares had a tough time on Wednesday.

The retail giant’s shares ended the day 7% lower following the release of a trading update.

This means its shares are now down 40% from their 52-week high of $121.00.

Does this make JB Hi-Fi shares a bargain buy? Let’s see what Bell Potter is saying.

Are JB Hi-Fi shares a bargain buy?

Bell Potter notes that JB Hi-Fi’s trading update suggests that the key JB Hi-Fi Australia business is performing in line with its expectations in FY 2026.

The same cannot be said for The Good Guys business, which “saw some easing in growth at 2.5% and came in slightly below BPe.”

In response, the broker has made some small revisions to its revenue and earnings expectations. It explains:

We make changes to our revenue assumptions factoring in the GG and e&s performance in the trading update and accounting for some easing within our JBH Aus comparable sales in meeting the current challenging 4Q26 comps. The key division would cycle +8.2% comparable sales during the seasonal quarter and our revised estimates see +1.8% for 4Q26e and +2% for 2H26e and +3% thereafter.

We also apply some conservatism through our FY27/28e forecasts to see market share retention offset by some investment in gross margins, hovering around the 22% level for the overall business and a broadly flat CODB % of sales, with operating margins improving from a low point in FY27e. The net result sees our NPAT forecasts -1%/- 3%/-3% for FY26/27/28e.

Should you invest?

Bell Potter continues to see value in JB Hi-Fi shares at current levels.

It has responded to the update by retaining its buy rating on the retailer’s shares with a trimmed price target of $87.00 (from $90.00).

Based on its current share price of $72.98, this implies potential upside of 19% for investors over the next 12 months.

In addition, the broker expects dividend yields of 4.5% in FY 2026, 4.6% in FY 2027, and 4.9% in FY 2028. This stretches the total potential return beyond 23%.

Bell Potter thinks JB Hi-Fi shares are good value at 17x estimated FY 2026 earnings. It said:

Our PT decreases by ~3% to $87.00 (prev. $90.00) driven by our modest earnings revisions (BPe below Cons), skewed to FY27/28e. While we expect the overall Consumer Discretionary sector to remain challenged through CY26, our preference for JBH is supported by our view as semi-discretionary characteristics seen in the name and ability to maintain market share over a longer-term vs smaller competitors as short term product challenges are mitigated through 4Q26. Trading at ~17x FY26/27e P/E (BPe), we see valuation support and maintain our BUY rating.

The post Down 40%: Are JB Hi-Fi shares a bargain buy? appeared first on The Motley Fool Australia.

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• Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have been on my radar for a while. I have been waiting for the right entry point — ideally below $70 — before pulling the trigger.

If you had invested $10,000 in Xero shares just three weeks ago, you’d already be sitting on a surprisingly strong gain.

Of course, this is a volatile tech stock. It could just as easily pull back again or continue pushing toward its previous highs of $196 reached in mid-2025. But for now, the recent bounce has been hard to ignore.

Serious short-term gain

Back on 13 April, Xero shares were trading at around $70.42, not far from my target entry level. Fast forward to today, and they’re changing hands for $85.82 at the time of writing. That’s a gain of nearly 22% in just three weeks.

Put that into dollar terms, and it gets interesting. A $10,000 investment at $70.42 would have bought roughly 142 shares. At today’s price, those shares would now be worth about $12,186.

That’s more than $2,000 in capital gains in a very short period.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped around 1% over the same timeframe, highlighting just how strong Xero’s rebound has been.

So, what’s driving the turnaround?

Part of the story is broader market sentiment. Between late August and the end of March, fears around artificial intelligence disrupting software companies weighed heavily on tech stocks like Xero shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) fell around 48% over that period.

Since late March, however, sentiment has shifted. The tech sector has staged a recovery, with the index rebounding roughly 20% as investors regain confidence in long-term growth prospects.

Recurring revenue, global footprint

Xero shares have benefited from that shift, but the company also has its own strengths. It is a leading provider of cloud-based accounting software for small and medium-sized businesses. Its subscription-based model generates recurring revenue, while its expanding ecosystem of integrations helps improve customer retention.

As more businesses move their financial operations to the cloud, Xero remains well-positioned to capture that demand. Its global footprint and continued investment in product development also support long-term growth.

That said, risks remain. Tech stocks can be highly sensitive to changes in interest rates, valuation multiples, and investor sentiment. Competition in the accounting software space is also intense, particularly from global players.

So what’s next for Xero shares?

According to Morgan Stanley, there could still be plenty of upside. The broker recently reiterated its buy rating on Xero shares with a $130 price target, implying potential gains of around 52% from current levels.

The bottom line is that while short-term gains like this are impressive, they also highlight the volatility that comes with growth stocks.

For investors willing to ride out the ups and downs, Xero remains a company with strong long-term potential. But as missing this rally shows me, timing can make a big difference.

The post $10,000 invested in Xero shares 3 weeks ago is now worth… appeared first on The Motley Fool Australia.

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• Down 50%, why Xero shares look like a rare ASX opportunity to me

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

The Generation Development Group Ltd (ASX: GDG) share price is in focus today after the company finalised the migration of $1.8 billion in Xplore Wealth managed account portfolios, boosting Implemented Portfolios’ total funds under management to more than $4 billion.

What did Generation Development Group report?

• Completed migration of $1.8bn Xplore Wealth managed discretionary account (MDA) portfolios
• Implemented Portfolios’ total funds under management (FUM) now exceeds $4bn
• Reinforced position as Australia’s largest independent MDA provider
• Expanded partnership with HUB24 platform broadens access to leading investment admin solutions

What else do investors need to know?

The integration with the HUB24 Ltd (ASX: HUB) platform allows Evidentia Group’s Implemented Portfolios to offer its services across more investment administration platforms. This supports greater distribution and improved capability for its managed account clients.

A managed discretionary account (MDA) lets an investment manager make buy and sell decisions for clients, within agreed strategies, without seeking approval for each transaction. This migration cements Implemented Portfolios’ reputation for scale in this rapidly growing sector.

What’s next for Generation Development Group?

Looking ahead, Generation Development Group appears set to benefit from expanded reach via its integration with HUB24 and increased FUM. These developments may support continued market leadership in the independent MDA provider space.

The company is likely to keep investing in new administration capabilities, positioning itself to capture more of the growing demand for managed account services.

Generation Development Group share price snapshot

Over the past 12 months, Generation Development Group shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Generation Development Group completes $1.8bn client migration appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Generation Development Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Owning BHP Group Ltd (ASX: BHP) shares usually means receiving a good level of passive income and this year looks like it will be the same. It’s a blue-chip ASX dividend share.

But, I also note that BHP’s share price is up 45% in the past year, as the chart below shows.

I become more cautious about businesses in cyclical industries when their share prices soar because the good times usually don’t last forever. A much higher valuation means a lower dividend yield.

At some point in the medium-term, we could see both resource prices reduce and the BHP share price fall. There’s no rush in buying ASX resource shares – I expect another shift in the supply and demand cycle to help investors buy at a cheaper price.

Until then, there are a few other ASX dividend shares I’d rather buy.

Universal Store Holdings Ltd (ASX: UNI)

This company aims to sell to fashion-focused customers through its premium apparel brands, with its principal businesses operating under the Universal Store and Perfect Stranger retail banners.

Discretionary retail may usually be a very cyclical industry, but this ASX dividend share has managed to increase its payout every year since it started paying a dividend in 2021. That’s thanks to very pleasing sales and net profit growth over that period, despite the high inflation.

We can’t be sure what the near-term holds, but the ASX dividend share’s sales growth remains pleasing.

In the first 17 weeks of the second half of FY26, Universal Store banner sales achieved 8.1% like-for-like sales growth, while Perfect Stranger achieved 10% LFL sales growth.

Excitingly, the company is expecting FY26 sales to grow by approximately 11.5%, while underlying operating profit is expected to rise by 15.4%.

According to the forecast on Commsec, the business could pay a grossed-up dividend yield of 8.4% in FY26.

Centuria Industrial REIT (ASX: CIP)

I like this as an alternative to BHP shares because it receives consistent rental earnings due to demand for industrial space.

Positive demand trends like online shopping adoption, data centres, refrigerated space and onshoring of supply chains are helping increase the rental potential of industrial properties.

In the first half of FY26, the business reported a strong level of rental progress – net operating income (NOI) grew by 5.1%. This is a great tailwind for the rental profits and distribution.

According to the REIT, its portfolio is, on average, 20% under-rented. This provides future earnings growth potential as contracts come up for renewal in the future.

The ASX dividend share expects to grow its annual distribution by 3% in FY26 to 16.8 cents, translating into a distribution yield of 5.6%, at the time of writing.

Jesse Curtis, head of funds management at Centuria Capital Group (ASX: CNI), said:

Australia’s industrial sector continues to demonstrate strong structural demand momentum, supported by resilient population growth, sustained public infrastructure investment and a rebound in tenant activity. Additionally, national long-term supply remains constrained driving the increased portfolio occupancy and reinforcing resilient demand for the style of industrial assets that CIP owns in urban infill markets.

I think the future looks very promising for this ASX dividend share for both reliability and growth.

The post Forget BHP shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

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

The Amcor CDI (ASX: AMC) share price is in focus today as the global packaging leader reported net sales up 77% to US$5.91 billion for the March quarter, driven by the Berry acquisition, and an 87% jump in adjusted EBITDA to US$892 million.

What did Amcor preport?

• Net sales of US$5,914 million for the March quarter, up 77% year-on-year
• GAAP net income of US$278 million and diluted EPS of US$0.60
• Adjusted EBITDA up 87% to US$892 million; adjusted EBIT up 79% to US$687 million
• Quarterly dividend lifted to 65.0 US cents per share (91.0 Australian cents for ASX CDIs)
• Acquisition synergies of US$77 million realised during the quarter
• Year-to-date adjusted EPS climbed 11% to US$2.79

What else do investors need to know?

The standout increase in Amcor’s sales and earnings stems from the completed acquisition of Berry Global, marking the first full fiscal year since integration. Both the Flexible and Rigid Packaging divisions delivered strong gains thanks to synergy benefits and productivity initiatives, though overall volumes were about 1.5% lower versus combined legacy businesses.

The company’s previously announced portfolio optimisation is progressing, with six divestiture agreements reached so far this year. Cash flow remained steady, with a free cash outflow of US$39 million for the quarter after absorbing around US$78 million in one-off transaction and integration costs.

The board’s confidence in long-term growth is underlined by a higher quarterly dividend, up from the prior year even as inventory levels remain elevated to secure customer needs amid ongoing geopolitical uncertainty.

What did Amcor management say?

Amcor CEO Peter Konieczny commented:

Third quarter results were in line with expectations and reflect the resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor. Over the past year, we have executed a smooth integration, built a strong leadership structure, and made meaningful progress on synergy delivery and portfolio optimization. While we continue to operate in a challenging market environment, our global scale, diversified portfolio, and strong customer and supplier partnerships position us well. We remain focused on what we can control—ensuring reliable supply, managing costs and pricing responsibly to offset inflation, and supporting our customers. With clear visibility to additional synergy benefits and a proven ability to navigate volatility, we are confident in our outlook and the continued strength of our business.

What’s next for Amcor?

Looking ahead, Amcor expects full-year adjusted EPS of US$3.98 to US$4.03, representing around 12% growth at the midpoint, and free cash flow between US$1.5 and US$1.6 billion. This outlook includes full-year benefits from the Berry integration and reflects the company’s efforts to maintain service levels in the face of supply chain disruptions and Middle East conflict impacts.

Management will continue pursuing portfolio optimisation, cost synergies and productivity gains, though actual results could vary given ongoing geopolitical uncertainties. Investors can expect further clarity on progress at the next scheduled update.

Amcor share price snapshot

Over the past 12 months, Amcor shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the sme period.

View Original Announcement

The post Amcor earnings surge on Berry acquisition appeared first on The Motley Fool Australia.

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

If you are looking for both exposure to the booming data centre market and an attractive dividend yield, then it could be worth looking at the ASX stock in this article.

That’s because Bell Potter believes it could rise strongly and provide a 4.1% yield over the next 12 months.

Which ASX data centre stock?

The stock that Bell Potter is bullish on is DigiCo Infrastructure REIT (ASX: DGT).

Bell Potter notes that the company has announced the sale of its CHI1 data centre in Chicago for US$750 million. This represents a 5% premium to its purchase price.

In addition, it reiterated its FY 2026 guidance for A$125 million EBITDA.

The broker was pleased with the news and highlights three key positives. It said:

(1) Overhang removed, balance sheet scope – Following completion in 1QFY27, gearing will reduce to 17% on a pro-forma basis (was 36%) with proceeds used to pay down debt (net debt reduced by c.$1bn down to $0.5bn).

(2) Potential for capital return – DGT intends to explore capital management initiatives including distributing excess capital through “enhanced distributions in the short term above FFO. We assume upon completion in FY27.

(3) SYD1 update and plans – Reached practical completion for the first 15mw of the 20mw upgrade with remaining 5mw to be delivered prior to 30 Jun 26. We see an improved outlook for SYD1 acceleration given associated balance sheet scope and optionality post completion.

Should you invest?

According to the note, despite the ASX data centre stock rising 25% on Wednesday, Bell Potter sees potential for its shares to keep rising.

In response to the update, the broker has retained its buy rating with an improved price target of $3.40.

Based on its current share price of $2.95, this implies potential upside of 15% for investors over the next 12 months.

And, as mentioned at the top, Bell Potter is expecting a 4.1% dividend yield in FY 2026. It then expects yields of 6.8% in FY 2027 and 6.3% in FY 2028.

Commenting on its recommendation, the broker said:

Today’s announcement is a clear positive for DGT in removing balance sheet overhang given the substantial level of debt on foot, risk from increasing marginal cost of debt, and ability to fund its SYD1 development expansion which is its best use of capital given company-stated 15% incremental yield on cost.

While it is a deviation from potential capital partnering plans (ie partial asset stakes vs. 100% disposal), and should LAX be disposed (BPe end 1QFY27), leaves US operations as sub-scale (Dallas and Kansas remaining), we think the deeply discounted trading price was mostly a reflection of balance sheet concern. Subject to completion, and LAX asset disposals (US$71m book value) which are a drag on the balance sheet (non yielding), the pay down of debt, and usage into SYD1 improves the forward earnings profile which could see upside given the lack of Aus market supply short term.

The post Bell Potter says this ASX data centre stock has 15% upside and a 4% yield appeared first on The Motley Fool Australia.

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

Now could be an opportune time to buy Life360 Inc. (ASX: 360) shares.

That’s the view of analysts at Bell Potter, who believe the location technology company could release a strong quarterly update later this month.

What is the broker saying?

Bell Potter believes that there is “more upside than downside risk to Q1 result” and sees potential for Life360 to exceed expectations. It said:

Life360 will report its 1Q2026 result next Tuesday, 12th May and we expect the company to meet if not slightly exceed its flagged expectations for the quarter of y-o-y MAU growth <20%, adjusted EBITDA margin in the “low double digits”, device revenue down 50% on pcp and a negative hardware GM. Our key forecasts for Q1 are global MAUs of 98.4m (equates to a q-o-q increase of 2.6m or y-o-y growth of 17.6%), total paying circles of 2.93m (q-o-q increase of 99k), revenue of US$137.5m (y-o-y growth of 33%) and adjusted EBITDA of US$14.5m (equates to a margin of 10.5%).

Our view is that our Q1 forecasts are consistent with or slightly below the market so importantly both we and the market are at a level where there is probably now more upside than downside risk to the result. But Q1 is still expected to be a relatively soft quarter so we only expect the company to reiterate the full year guidance and if anything we see some downside risk to the forecast y-o-y MAU growth of 20% (we forecast 17.5%).

Big potential returns

According to the note, the broker has retained its buy rating and $35.50 price target on Life360’s shares.

Based on its current share price of $19.84, this implies potential upside of approximately 80% over the next 12 months.

Commenting on its recommendation, Bell Potter said:

There is no change in our target price of $35.50 which we only updated last month. The key assumptions we apply in the valuations we use to determine the target price are a 35x multiple in the EV/EBITDA and a 9.5% WACC in the DCF. This TP is still a significant premium to the share price so we maintain our BUY recommendation.

Potential catalysts include the upcoming Q1 where, as mentioned, we see reasonable chance of a small beat but little prospect of an upgrade to the 2026 guidance. A larger potential catalyst, however, is the Q2 result in August if the company can show strong MAU growth and support the full year guidance of 20% growth. The Q2 result is probably also the earliest the company could upgrade the full year guidance though, given the H2 skew this year, this is perhaps more likely at the Q3 result.

The post Why Life360 shares are a strong buy this week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. 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.

Superannuation is one of the best places to invest for passive income given how tax effective it is. For some older investors, the tax cost may be zero.

For a full-time working Australian, holding higher-yielding investments in their own name does have negatives because the tax rate could be well over 30%. At least capital gains aren’t taxed until they’re sold.

So, if someone did have $5,000 (or materially more) to invest in superannuation, where would be a good place to invest it?

There are a few names that really stand out to me. I want to highlight two that I’ve put my own family’s money into.

MFF Capital Investments Ltd (ASX: MFF)

MFF is best known as a listed investment company (LIC) that invests in a high-quality portfolio of global shares from across the world, including regions such as North America and Europe. It only invests in those stocks on “satisfactory or better terms”.

LICs are appealing because they have diversified portfolios and can deliver a good level of passive income to investors, since the board of directors decide on size of the dividend payments each year.

LICs can build up investment returns as retained profit and pay a growing dividend from those profits. This is great for superannuation investors.

MFF has grown its regular annual dividend per share each year since 2018 and it’s expecting to increase its annual dividend per share to 21 cents. That translates into a grossed-up dividend yield of 5.3%, including franking credits, at the time of writing.

Impressively, over the past five years, MFF shares have delivered an average return per year of 15.3%, showing both passive income and capital growth. Past performance is not a guarantee of future returns, though.

L1 Long Short Fund Ltd (ASX: LSF)

This business is another LIC that I’m also very optimistic about.

It invests in a mixture of both ASX shares and global shares, giving the portfolio significant diversification. Additionally, L1 Long Short Fund utilises short-selling to bet on those share prices declining.

Therefore, it can generate returns whether the market is going up or down. Over the five years to 31 March 2026, its portfolio returned an average of 16.1% per year, which is strong enough to fund passive income and achieve good capital growth.

It has a steadily growing dividend, which has increased each year since 2021. I think the regularity of the hikes make it a very appealing option for passive income in superannuation.

I like how the business provides investors with exposure to a high-performing portfolio, and does so by identifying in sectors that are sometimes unloved by the market. I like its willingness to invest with a contrarian attitude.

I expect the company’s next four quarterly dividends to amount to a grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.

The post How to invest $5,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and Mff Capital Investments. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Woodside Energy Group Ltd (ASX: WDS) share price has been an incredible performer amid the significant increase in energy prices.

As the chart below shows, the Woodside share price has soared by 60% in the past year.

The ASX oil and gas share doesn’t have much control over energy prices, but it has significant operating leverage when resource prices do increase.

It costs Woodside roughly the same to produce each ‘barrel’ of its resources month to month, but when revenue rises that largely adds to net profit (aside from paying more to the government).

Investors usually value a business based on how much earnings it’s expected to generate, so the recent increase in potential profitability has been great news for owners of Woodside shares.

How many Woodside shares we can buy with $10,000

A year ago, we would have been able to buy 501 Woodside shares – the world has changed a lot since then.

A $10,000 investment a year ago would have turned into around $16,000 today, plus a couple of solid dividend payments.

As I mentioned above, the Woodside share price has risen close to 60%. These days, an investment with $10,000 would only buy 312 Woodside shares.

It’s important to ask whether it’s good value today or not because it has already risen. Is it more likely to rise or fall from here? The US certainly wants the normal global fuel supply to return to normal.

Is the ASX oil and gas share a buy?

Analysts are currently mixed on the business. According to CMC Invest, there have been nine recent ratings with only two of those being a buy. Five of the ratings were hold and two were a sell.

The average price target of those nine ratings was $31.48, suggesting (at the time of writing) a slight decline for the Woodside share price over the next year.

The most optimistic price target is $36.50, suggesting it could rise 14% over the next 12 months. However, the most negative price target is $24.75, suggesting it could fall more than 20%.

If investors are thinking about buying Woodside shares, I’d suggest it’s important to consider how long energy prices are going to stay elevated. I’m not expecting it to go much higher in the foreseeable future, meaning I think there are better opportunities out there.

The post 5 years ago, $10,000 bought 501 Woodside shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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

Australia’s two largest supermarket giants have released updates recently.

Do these updates make them buys for investors looking for blue-chip ASX shares? Let’s see what analysts are saying about them:

Coles Group Ltd (ASX: COL)

In response to Coles’ third-quarter update, Bell Potter has downgraded Coles shares to a hold rating with an improved price target of $22.80.

Bell Potter highlights that competition is increasing in the supermarket industry and that the liquor market remains challenged. And while Coles shares are trading at a discount, the broker thinks there are better value opportunities elsewhere in the consumer staples space. It explains:

We downgrade our rating from Buy to Hold. The shortfall between retail shelf price inflation and underlying food inflation in both WOW and COL has widened in the recent quarter. The competitive backdrop appears to be lifting and liquor remains challenged in a rising cost environment.

Trading a discount to WOW, there is a relative value argument to be made, particularly given the more limited exposure to discretionary channels in the near term, however we see more compelling GARP opportunities elsewhere in the consumer staples space at this juncture.

Woolworths Group Ltd (ASX: WOW)

Over at Morgans, its analysts note that Woolworths released a mixed trading update.

However, due to recent share price weakness, the broker has upgraded Woolworths shares to an accumulate rating with an unchanged price target of $37.30.

Commenting on the quarter, the broker said:

WOW’s 3Q26 sales trading update was mixed. Strong sales growth was offset by softer FY26 earnings guidance for Australian Food and NZ Food, as management chose to absorb higher fuel costs and invest in pricing. Management noted that value is becoming increasingly important, as customers become more cautious amid rising cost-of-living pressures. We reduce group FY26-28F underlying EBIT marginally by 1%. Our target price remains unchanged at $37.30. With a 12-month forecast TSR of 12%, we upgrade our rating to ACCUMULATE (from HOLD).

While absorbing higher costs and investing in pricing will weigh on margins in the near term, we believe this is the right strategy in the long-term as WOW works to improve its value perception with customers. These are levers within management’s control, and improving sales and volume momentum indicates the strategy is resonating. In an uncertain macro environment with soft consumer sentiment, WOW’s dominant market position and relatively defensive characteristics should support steady and resilient earnings growth.

The post Buy, hold, sell: Coles and Woolworths shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.