Category: Stock Market

If you have a high tolerance for risk, then it could be worth looking closely at Alpha HPA Ltd (ASX: A4N).

That’s because the team at Bell Potter believes this ASX 300 share could rise materially from current levels.

What is Alpha HPA?

Alpha HPA is the owner of the HPA First Project in Gladstone, Queensland, which is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery, and light emitting diode (LED) manufacturing sectors.

Bell Potter notes that the project’s proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.

The broker highlights that a recent update revealed letters of intent and commercial supply agreements. It said:

A4N’s positive marketing update points to product offtake Letters of Intent exceeding 12ktpa, further maturity in commercial supply agreements from Stage 1 production, adoption of HPA in semiconductor tooling, and product demand projections exceeding 50ktpa by 2030. Four new LOIs include: 324tpa for semiconductor thermal fillers (2 x LOIs to South Korea & Japan); 180tpa for catalyst applications; and up to 5,000tpa from a Tier-1 lithium-ion battery group which follows a multi-year cycle of product qualification.

Commercial supply agreements have been added with US and European semiconductor Chemical Mechanical Planarisation customers and with Japanese and South Korean semiconductor thermal filler customers. A4N’s modelling sees demand for key products HPA and High Purity ATH exceeding 50ktpa by 2030, including around 30ktpa from the semiconductor sector.

Bell Potter thinks this leaves the ASX 300 share well-placed to unlock its debt funding. It adds:

The update puts A4N in a strong position to meet Conditions Precedent to draw on its $400m debt funding from Export Finance Australia and the Northern Australia Infrastructure Facility. A key CP was 100% offtake coverage from Stage 2 (10ktpa). We expect that A4N will now be working with the lenders on the basis that a significant offtake threshold has been reached, to enable debt release in 2H 2026.

In the interim, A4N is well funded, with $212m cash at the end of the last quarter. A4N’s sales from its current smaller-scale Stage 1 facility are important market seeding to demonstrate the unmatched capability of A4N’s HPA First products. The demand modelling, in particular from the AI data centre-driven semiconductor sector, adds further confidence with respect to the debt CPs and future expansion potential.

Big potential returns for this ASX 300 share

According to the note, Bell Potter has retained its speculative buy rating and $1.50 price target on Alpha HPA’s shares.

Based on its current share price of 86 cents, this implies potential upside of approximately 75% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter concludes:

Over 2H 2026, we expect A4N to firm-up existing offtake LOI volumes and progress to sales contracts for Stage 2 capacity. A key catalyst will be drawing on the project’s committed NAIF and EFA debt facility, which we expect in 2H 2026. A4N’s recent commentary relating to potential volume expansions beyond Stage 2 give us further comfort on the long-term adoption of HPA by the semiconductor sector and therefore product demand. We have made no changes to our A4N valuation or positive outlook in this report.

The post Bell Potter says this ASX 300 share could rise 75% appeared first on The Motley Fool Australia.

More reading

• Got $10,000? I’d buy these ASX 200 shares right now
• Buy this ASX income stock for 18% upside and 8% dividend yield
• After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know
• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains

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.

If I had $10,000 to invest in S&P/ASX 200 Index (ASX: XJO) shares today, I would focus on quality rather than chasing the market’s most speculative names.

These are two ASX 200 shares I would consider buying right now.

ResMed Inc (ASX: RMD)

ResMed is an ASX 200 share I would consider buying today with part of the $10,000.

The company is a global leader in sleep apnoea treatment and connected care. Its devices help patients start therapy, while masks, accessories, software, and data tools support ongoing treatment.

What I like about ResMed is the combination of medical need and repeat use.

Sleep apnoea is not a one-off issue for many patients. Once someone is diagnosed and starts therapy, they tend to need ongoing support, replacement masks, accessories, monitoring, and software-linked care.

That can create a strong relationship between the company, clinicians, providers, and patients, as well as recurring revenue.

I also like that the market opportunity remains very large. Sleep health is still underdiagnosed in many places, and awareness should keep improving as healthcare systems focus more on chronic conditions, fatigue, cardiovascular risk, and quality of life.

ResMed is not immune to competition, pricing pressure, product cycles, or regulatory changes. Investors also need to watch how weight-loss drugs affect diagnosis and treatment behaviour over time.

But I think it has a strong global position in the healthcare market, which should remain important for decades to come.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX 200 share I would buy is the Commonwealth Bank of Australia.

CBA often looks expensive compared with the other major banks. That is a fair point, and valuation always needs to be considered.

But I think CBA’s premium reflects a genuinely strong franchise.

The bank has a central role in Australian financial life. It touches mortgages, deposits, everyday transaction accounts, credit cards, business banking, merchant services, payments, and digital banking.

That gives CBA scale, data, trust, and regular customer engagement.

I think the digital side is particularly important to the investment thesis. Banking is not just about branch networks anymore. Customers expect fast apps, simple payments, useful tools, and a reliable experience. CBA has invested heavily in that area, and I think it helps strengthen the customer relationship.

Bad debts, margins, funding costs, and regulation remain risks. But I believe CBA has the management team and franchise strength to navigate these risks over time and continue growing earnings and dividends.

Foolish Takeaway

A $10,000 investment can be split across businesses that do very different things.

I would want companies with strong positions, long-term relevance, and the ability to keep adapting as conditions change. These two shares will not be perfect in every market environment, but I think they offer a useful blend of quality, growth, income potential, and resilience.

That is why I would be happy to put money into them today.

The post Got $10,000? I’d buy these ASX 200 shares right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for a combination of major upside and a generous dividend yield, then read on!

That’s because Bell Potter has just picked out one ASX stock that it believes offers both.

Which ASX stock?

The stock that Bell Potter is positive on is Dexus Convenience Retail REIT (ASX: DXC).

It owns a portfolio of 91 service stations and convenience retail assets positioned alongside major roads on the Eastern Australian seaboard.

Bell Potter highlights that the Dexus Convenience Retail REIT is differentiated by the high-quality and long-term tenants that it leases these assets to, including Chevron, 7-Eleven, United, Mobil, and Ampol (ASX: ALD).

Commenting on the company, Bell Potter points out that buybacks are currently more attractive than developments. It explains:

Buyback currently more attractive than developments – With a 7.9% earnings yield and c. 6.3% marginal cost of debt, the buyback generates a +1.6% positive spread per dollar deployed. Glass House Mountains Stage 2 offers a 5-6% yield on cost – a negative spread to funding costs, albeit with +1% NTA uplift. We estimate +0.4% FFO/share accretion in FY27 on completion of the remaining buyback, representing upside risk to our forecasts.

The broker has also been looking at electric vehicle adoption and the impact this may have on its service station tenants. It adds:

Tenants resilient in face of EV headwinds. While EVs reached 20% share of new vehicle sales in May 2026, fuel volumes and margins remain above pre-COVID levels. Non-fuel gross profit per site continues to grow, with Viva Energy (21% of DXC income) reporting +1.4% gross margin improvement to 38.8% in Q1 CY26.

Big total returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with a trimmed price target of $3.15 (from $3.25).

Based on its current share price of $2.67, this implies potential upside of 18%.

In addition, Bell Potter is forecasting dividend yields of 7.9% in FY 2026, 7.7% in FY 2027, and then 8.2% in FY 2028.

Speaking about its investment thesis, the broker said:

We maintain our Buy rating on DXC and lower our target price to $3.15. The buyback and developments offer attractive long-term returns, despite the short-term headwinds from rising bond yields. With our revised forecasts DXC is yielding 7.9% vs. 6.4% passive REIT average which we think offers compelling risk adjusted value, and at an implied 8.21% cap rate, despite recent asset sales supporting book value.

The post Buy this ASX income stock for 18% upside and 8% dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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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.

Space Exploration Technologies Corp (NASDAQ: SPCX) listed last week at US$1.75 trillion.

It was the largest IPO in stock market history. And it is just the beginning.

Anthropic is targeting a December 2026 public debut at a forecast first-day market cap of approximately US$1.1 trillion, according to the most current forecasts.

OpenAI, which filed its own confidential S-1 earlier this month, is expected to follow in early 2027 at a comparable valuation.

Together, SpaceX, Anthropic, and OpenAI represent a combined public market value approaching US$4 trillion.

For Australian investors who cannot buy any of these stocks on the ASX, the question is what it means for the companies they can buy.

Why these IPOs matter for ASX investors

The most important consequence of trillion-dollar AI IPOs is not the immediate share price movement in SPCX, Anthropic, or OpenAI.

It is the reallocation of institutional capital that follows.

When capital flows into public AI companies at these valuations, attention and money flow toward every company in the AI infrastructure supply chain, including those listed on the ASX.

The AI thesis is being publicly validated at a scale never seen before.

Three ASX stocks sit directly in the path of that validation.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is already living proof of the thesis.

The fund launched at $14 per unit on 12 May 2026, well before SpaceX listed. It surged approximately 30% in the weeks leading up to the SpaceX IPO as anticipation built.

This served to demonstrate how powerfully public AI IPOs move adjacent listed markets.

RCKT holds 28 companies across the global space economy, with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX itself will take time to enter the index, but the attention the listing generates flows directly into RCKT’s holdings.

As Anthropic and OpenAI approach their own listings later this year and in 2027, the same dynamic will play out across AI infrastructure stocks globally.

For ASX investors, RCKT captures that excitement in a single trade.

NextDC Ltd (ASX: NXT)

NextDC is Australia’s largest independent data centre operator and has the most direct relationship with the AI IPO wave of any ASX company.

OpenAI is NextDC’s foundational customer for its US$7 billion AI data centre campus in Western Sydney.

When OpenAI lists publicly at close to US$1 trillion, that customer relationship may be permanently reframed.

NextDC has already raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Morgans carries a buy rating on NextDC with a $19 price target, implying upside of approximately 36% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology Group plays a different but equally important role.

Anthropic’s Claude platform is already being deployed by Australian government agencies and critical infrastructure operators who cannot use offshore AI infrastructure.

Anthropic’s annualised revenue reportedly crossed $47 billion in May 2026, and the company is on track to post its first operating profit in Q2 2026.

As Anthropic’s public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

Macquarie Technology is the primary beneficiary of that demand, backed by a $200 million National Reconstruction Fund investment and 20 consecutive half years of operating income growth.

Canaccord Genuity upgraded MAQ shares following the NRF investment, predicting significant upside from current levels.

The risks

History offers a clear warning about mega-cap IPOs.

According to Professor Jay Ritter’s updated long-run IPO statistics, the average newly listed company underperforms its peers by approximately 8% per year over the five years following its debut.

If Anthropic or OpenAI disappoint in their early trading sessions, the repricing could weigh on AI infrastructure stocks.

Foolish Takeaway

SpaceX has listed. Anthropic targets December. OpenAI follows in 2027.

For ASX investors seeking exposure to the AI IPO wave without buying US-listed stocks, RCKT, NXT, and MAQ each offers a distinct way to participate.

The post After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know appeared first on The Motley Fool Australia.

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• Which top ASX tech shares would I buy for FY27?
• SpaceX IPO: Should you buy an ASX space ETF to cash in?

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

The Growthpoint Properties Australia Ltd (ASX: GOZ) share price is in focus after the company announced office portfolio occupancy climbed to 96%, with funds from operations (FFO) guidance reaffirmed for FY26 at 23.0–23.6 cents per security.

What did Growthpoint Properties Australia report?

• Directly held portfolio occupancy increased to 96% as at 31 May 2026
• Weighted average lease expiry (WALE) is 5.7 years
• FY26 FFO guidance reaffirmed at 23.0–23.6 cents per security
• FY26 distribution guidance maintained at 18.4 cents per security
• Refinanced $495 million of debt and completed $16.7 million asset divestment
• 54,721 sqm of office leasing executed in FY26 to date, with terms agreed on an additional 27,602 sqm

What else do investors need to know?

Growthpoint has delivered strong leasing momentum, including major new long-term leases to Myer Group in Melbourne and John Holland Group in Brisbane. The company has also continued its active approach to capital management, refinancing $495 million of debt and extending maturities, which has helped strengthen its balance sheet.

There’s been a change in leadership, with Nathan Thomas brought in as Chief Investment Officer, joining a refreshed executive team. A recent asset sale at Brisbane Airport for $16.7 million underlines the ongoing portfolio optimisation.

What did Growthpoint Properties Australia management say?

CEO and Managing Director Ross Lees said:

Our focus on delivering for tenants has sustained leasing momentum from the first half. We have executed 54,721 sqm of directly held office leasing in FY26 to date and remain on track for a record year, with terms agreed on a further 27,602 sqm.

What’s next for Growthpoint Properties Australia?

Growthpoint remains confident in achieving its full-year guidance, backed by ongoing leasing wins and a resilient tenant base. The company will continue to focus on strategic leasing, disciplined capital management, and maintaining high office and industrial occupancy.

Despite some cautious signals in tenant decision-making and pressures from inflation and funding costs, Growthpoint is prioritising long-term stability and growth by investing in its people and properties.

Growthpoint Properties Australia share price snapshot

Over the past 12 months, Growthpoint shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance 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 recommended Myer. 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.

The Sims Ltd (ASX: SGM) share price is in focus today after the company upgraded its FY26 underlying EBIT forecast to $420–435 million, up from a previous range of $350–400 million.

What did Sims report?

• FY26 underlying Group EBIT expected between $420 million and $435 million (previously $350–400 million)
• Strong second-half earnings growth in North American Metals (NAM) and SA Recycling (SAR) divisions
• Sims Lifecycle Services (SLS) underlying EBIT forecast at $170–175 million for FY26
• Improved trading conditions for ferrous and non-ferrous metals globally
• Asian ferrous prices lifting, but ANZ ferrous environment remains subdued

What else do investors need to know?

The improved outlook is largely thanks to ongoing strength in non-ferrous markets and a rebound in ferrous trading conditions. Sims’ North American businesses, in particular, are on track to deliver significant earnings growth in the second half of FY26, thanks to solid operational results.

Sims Lifecycle Services continues to benefit from global demand for data centre recycling and decommissioning, although earnings distribution may vary depending on clients’ project timing. The company reminded shareholders that these estimates are unaudited, based on specific market assumptions, and more details will be revealed at the full-year results.

What’s next for Sims?

Looking ahead, Sims is well positioned to benefit from strong long-term industry trends, like the rise of data centres and the broader push towards decarbonisation and circular solutions. Management highlighted the potential for further growth, especially if current favourable conditions in non-ferrous and North American ferrous markets persist.

Investors should keep an eye on sector dynamics—particularly ANZ ferrous conditions and global steel trade flows—as these will influence Sims’ near-term performance.

Sims share price snapshot

Over the past 12 months, Sims shares have risen 89%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Sims lifts outlook as North American metals drive gains appeared first on The Motley Fool Australia.

More reading

• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday

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 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 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.

While most investors focus on the S&P/ASX 200 Index (ASX: XJO), there are also high-potential shares sitting outside the benchmark index and within the lesser followed ASX 300 Index.

To narrow things down, let’s look at three ASX 300 shares that analysts think could be buys now.

Catapult Sports Ltd (ASX: CAT)

The first ASX 300 share that is being tipped as a buy is Catapult.

It is a sports technology company that helps professional teams measure performance, workload, movement, and tactical data.

Its products are used by sporting teams that want better insight into how athletes train, recover, and perform. This is becoming increasingly important as elite sport becomes more data driven.

The interesting part of Catapult’s story is that it is not just selling hardware. The company is building a platform that can become more valuable as teams rely on its data and software across multiple parts of their operations.

That gives it a global growth opportunity in a specialist market where customers can be sticky if the product becomes part of their daily workflow.

Bell Potter is positive on the company and has a buy rating and $4.65 price target on its shares. This implies potential upside of approximately 52%.

Collins Foods Ltd (ASX: CKF)

Another ASX 300 share that brokers are bullish on is Collins Foods.

It is best known as a major KFC operator. It owns and operates restaurants across Australia and parts of Europe, giving it exposure to one of the world’s most recognisable quick-service restaurant brands.

The business has faced pressure from higher costs, softer consumer conditions, and margin challenges in recent times. But this is also a company with a proven operating model and exposure to a category that can remain resilient when consumers trade down from more expensive dining options.

Morgans sees a lot value at current levels and has a buy rating and $12.50 price target on its shares. This suggests potential upside of approximately 47%.

DigiCo Infrastructure REIT (ASX: DGT)

A third buy-rated ASX 300 share to consider is DigiCo Infrastructure REIT.

It gives investors exposure to data centre infrastructure. This is an area that has become increasingly important as artificial intelligence, cloud computing, and digital services require more computing capacity.

It is of course not risk-free. Data centres require significant capital, and property trusts can be sensitive to debt costs, interest rates, and investor sentiment.

But for investors wanting exposure to digital infrastructure outside the usual large-cap names, DigiCo is an option.

Bell Potter has a buy rating and $3.40 price target on its shares. This implies potential upside of approximately 33%.

The post 3 top ASX 300 shares tipped to jump 30% to 50% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’d call the ASX share Propel Funeral Partners Ltd (ASX: PFP) one of Australia’s top shares. Fortunately for investors, it’s currently trading at a great price given its long-term outlook.

As the name suggests, it’s a funeral operator – the second biggest in Australia and New Zealand. It also operates cremation facilities.

While it’s a morbid idea, it does provide an important service for the Australian community.

As the chart below shows, the Propel share price is down 33% since the start of the year. I think this is a great time to consider the business.

Let’s take a look at what makes it such an appealing option right now.

Long-term tailwinds

One of the main reasons why I think it’s one of Australia’s top shares is that the business has some of the clearest, long-term tailwinds on the ASX.

Sadly, the business is required to perform a certain number of funerals each year, giving the business very defensive earnings. As the saying goes, it’s one of the certain things in life.

The number of funerals is predicted to grow in the coming years because of Australia’s ageing and growing population.

Propel says that Australian death volumes are expected to increase by 2.9% per year from 2026 to 2035 and 2.4% per year from 2036 to 2045. In other words, there’s at least 20 years of an expanding addressable market for the funeral sector.

That may not sound like a strong growth rate by itself, but we should remember that the revenue growth from higher volumes can be combined with a rising funeral price over the long-term.

Between FY15 and the first half of FY26, its average revenue per funeral grew at a compound annual growth rate (CAGR) of 2.8%. When you combine mid-single-digit revenue growth, with the potential for rising profit margins from increased scale and solid dividend payments, I think that can translate into a pleasing average total shareholder return (TSR) annually over the long-term.

Valuation

Using the forecast on CMC Invest, the business is trading at 21x FY27’s estimated earnings with a possible grossed-up dividend yield of 5.7%, including franking credits.

The business is expected to grow earnings by another 7% in FY28 and pay a grossed-up dividend yield of 6.1%, including franking credits, at the time of writing. Those are pleasing statistics, in my view, for one of Australia’s top shares.

For a business that could continue to grow over time, I think the current valuation for such a defensive business is fair. Plus, whilst we own it over the long term, it can pay a pleasing level of passive income during the period and deliver ‘real returns’.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.

National Australia Bank Ltd (ASX: NAB) shares have pulled back meaningfully from their highs.

The bank’s shares are trading around $37.15 at the time of writing, well short of their 52-week high of $49.45.

That recent weakness is not hard to understand. The economic outlook is uncertain following several interest rate hikes and the property market is cooling in response to the Federal Budget.

But at today’s price, I think NAB shares are starting to look attractive for investors considering putting $5,000 to work.

The valuation looks reasonable

The first thing that stands out is the valuation. According to CommSec, NAB is expected to generate earnings per share of $2.43 in FY26 and $2.62 in FY27.

Based on the current share price, that puts the bank on roughly 15 times FY26 earnings and about 14 times FY27 earnings.

That does not look stretched to me for one of Australia’s largest banks.

The dividend outlook also looks appealing. CommSec has NAB paying dividends per share of $1.72 in FY26 and $1.78 in FY27. At the current share price, that implies dividend yields of about 4.6% and 4.8%, respectively.

Those dividends are expected to be fully franked, which could make the income even more attractive for some Australian investors.

Of course, yield alone is not enough. A bank still needs sound credit quality, disciplined lending, strong deposits, and enough capital to support the payout. But I think NAB delivers on all these.

A business bank, not just a mortgage stock

The housing market is clearly important for the major banks. If buyer demand weakens, transaction volumes slow, and mortgage growth becomes harder to find, that can weigh on sentiment toward the sector.

But NAB has an important point of difference: business banking. In its recent half-year update, Business and Private Banking generated $1.85 billion of cash earnings excluding large notable items. That was around half of the group’s cash earnings on the same basis.

That is a meaningful contribution. It means NAB is not simply dependent on the household mortgage cycle. The bank has large exposure to businesses that need loans, deposits, transaction banking, working capital, merchant services, and advice through changing conditions.

That does not remove risk. If the economy weakens, business customers can also come under pressure. But I think NAB’s business banking strength gives it a broader earnings base than investors may appreciate when the market is focused mainly on housing.

Foolish Takeaway

I think NAB shares are worth considering at current levels.

The housing market backdrop is not perfect, and investors should expect some uncertainty to continue. But the share price has already fallen a long way from its 52-week high, and the valuation now looks much more reasonable.

What makes NAB particularly interesting to me is the business banking exposure. If mortgage lending becomes more difficult, that part of the group could help support earnings and give the bank more than one path to growth.

So, would I invest $5,000 into NAB shares? At today’s price, I would be comfortable doing so as part of a diversified ASX share strategy.

The post Should I invest $5,000 into NAB shares? appeared first on The Motley Fool Australia.

More reading

• What does the RBA decision mean for the big four bank shares?
• What are the big four banks expecting at tomorrow’s RBA cash rate meeting?
• Buying ASX 200 bank stocks like Westpac and CBA shares? Here’s why these funds are betting against you
• How many NAB shares do I need to buy for $10,000 of passive income?
• NAB and ANZ shares: One I’d hold and one I’d sell

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.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus today after the company updated its FY26 profit guidance and announced a new $200 million on-market share buy-back. FLT now expects underlying profit before tax (UPBT) of $275 million to $295 million—roughly in line with last year’s $286 million result.

What did Flight Centre Travel Group report?

• FY26 UPBT guidance revised to $275m–$295m (FY25: $286m), down from the previous $310m–$345m target
• Conflict in the Middle East is expected to reduce Q4 leisure earnings by around $50m
• Corporate business remains strong, set for year-on-year profit growth
• Adverse FX impacts of $5m–$10m expected due to a stronger Australian dollar
• Up to $200 million on-market share buy-back to commence

What else do investors need to know?

Flight Centre says the downward revision is due to temporary, conflict-driven disruption—mainly hitting international leisure travel in the fourth quarter. The recently agreed Middle East peace deal should help conditions recover going into FY27, but it won’t have much impact on the current year given the timing.

The company’s global corporate division is less affected and continues to deliver strong profit growth. Cost-saving initiatives are underway, including discretionary spending cuts and a pause on non-essential hiring, balanced with ongoing investment in growth sectors like luxury, cruises, and tours.

What did Flight Centre Travel Group management say?

Managing director Graham Turner said:

The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year.

It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business. Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25. Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board’s decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.

What’s next for Flight Centre Travel Group?

Flight Centre is rolling out a number of AI-driven initiatives to boost productivity and enhance customer experience, including new corporate travel assistants and smarter leisure booking tools. The company is staying disciplined on costs while continuing to invest in high-potential areas like cruise, tours, and loyalty programs.

Looking ahead to FY27, management is optimistic, expecting a rebound as travel patterns normalise and peace returns to the Middle East. The newly announced share buy-back signals confidence in Flight Centre’s medium-term growth profile.

Flight Centre Travel Group share price snapshot

Over the past 12 months, the Flight Centre shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Flight Centre updates profit guidance; unveils $200m buy-back 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 recommended Flight Centre Travel Group. 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.