Stock Pick

Category: Stock Market

  • 2 top ASX blue-chip shares to buy according to experts

    Two colleagues looking at a graph and comparing share prices.

    Fund managers are always on the hunt for ASX blue-chip shares or smaller stocks that could produce good returns. Sometimes, those experts pick out a very compelling idea.

    We’re going to look at two picks from the portfolio of WAM Leaders Ltd (ASX: WLE) that look like strong ideas today.

    WAM Leaders is a listed investment company (LIC) that actively invests in Australian stocks at the larger end of the ASX’s market capitalisation list.

    Let’s look at the two ASX blue-chip shares that WAM Leaders recently highlighted.

    Ramsay Health Care Ltd (ASX: RHC)

    The fund manager highlighted that last month, the Ramsay Health Care share price rose by 8.6% as investors responded positively to improving momentum in its Australian hospitals business and the progress on the proposed separation of Ramsay Sante, its European operations.

    WAM Leaders said that the proposed separation of Ramsay Sante is expected to simplify the group and increase management’s focus on the core Australian business.

    The investment team said Ramsay’s operational improvement initiatives continue to gain traction, supported by growth in activity, improved operating theatre utilisation, and ongoing cost efficiencies.

    In September 2026, Ramsay Health Care also completed the acquisition of National Capital Private Hospital and submitted proposals to the Federal Government advocating for broader reform of the private hospital sector.

    The investment team maintains a constructive outlook towards Ramsay Health Care as improving operating performance supports further margin recovery and earnings growth.  

    Ansell Ltd (ASX: ANN)

    Ansell is the other ASX blue-chip share that WAM Leaders highlighted from the LIC portfolio.

    The investment team said that Ansell continued to “re-rate” – the price-earnings (P/E) ratio rose – last month. In September, the Ansell share price rose 11%.

    The company has risen significantly since its August FY26 results, which revealed earnings and FY27 guidance ahead of market expectations.

    WAM said healthcare was the key driver of this result, underpinned by strong growth in the Cleanroom business, although performance benefited in part from customer stocking and the timing of price increases.

    The investment team believe Ansell has managed cost headwinds effectively, including the impact of US tariffs and the Middle East conflict, through disciplined pricing and flexible commercial arrangements.

    In terms of the outlook, management remains focused on its core markets, customers, and brands, particularly in the US. WAM thinks this supports the potential for stronger organic growth and further margin improvement.

    The ASX blue-chip share’s balance sheet also remains in a strong position, according to WAM, providing flexibility for capital management and further investment.

    WAM concluded:               

    Ansell remains a core holding in the investment portfolio, with its improving business mix, robust cost management and balance sheet capacity expected to support the company’s earnings outlook.

    The post 2 top ASX blue-chip shares to buy according to experts 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 Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 2 ASX shares with dividend yields above 9%

    Man holding out $50 and $100 notes in his hands, symbolising ex dividend.

    The ASX dividend share space is full of a lot of interesting potential ideas for passive income, including ones with huge dividend yields.

    But, the higher the dividend yield goes, the more careful I am about the choices.

    Some dividend yields are just a mirage. A dividend cut may be coming because profit generation has been affected.

    So, I’m going to talk about two ASX dividend shares that have incredibly high yields but have also displayed reliability.

    Hearts and Minds Investments Ltd (ASX: HM1)

    Listed investment companies (LICs) can be a great option for dividends because they can turn investment returns from a portfolio into dividend payments to shareholders.

    Hearts and Minds is a very different type of LIC to most others. All of the investment professionals involved don’t charge any management fees.

    Each year, Hearts and Minds donates to Australian medical organisations to help fund research, which is a great initiative.

    In terms of the investments, there are two ways that picks are chosen for the portfolio. First, a majority of the portfolio is chosen by a permanent group of fund managers.

    Second, at an annual investment conference, the stock picks are chosen by a number of investment professionals for a minority of the portfolio.

    Overall, it’s a portfolio of best ideas from all of these experts. The portfolio is largely an international stock portfolio, which gives Australians a pleasing level of diversification.

    In terms of the dividend, the last two payments came to 19.5 cents per share. That’s a grossed-up dividend yield of 9.4%, including franking credits, at the time of writing.

    It has steadily increased its payout each year since 2023, which is pleasing amid rising interest rates.

    Shaver Shop Group Ltd (ASX: SSG)

    Shaver Shop is an intriguing ASX dividend share because of its position as an Australian and New Zealand specialty retailer of male and female personal grooming products. It wants to be the market leader in all things related to hair removal.

    There are currently 127 Shaver Shop stores across Australia and New Zealand, selling a wide range of quality brands. It has a number of exclusive products with suppliers.

    Its longer-term growth over the last several years has enabled the business to pay a steady and regularly growing dividend. Since it started paying a dividend in 2017, it has grown its payout most years (with no cuts), though that’s not guaranteed to continue forever.

    In FY26, it maintained its annual dividend per share of 10.3 cents following a 3% rise of sales to $225.1 million and operating profit (EBIT) growth of 1.3% to $22.8 million.

    At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 11.4% (including franking credits), which is a huge yield, but the company trades on a relatively low price-earnings (P/E) ratio.

    If it can expand its store network, sell more exclusive brand products, grow its private brand, and sell more online, the ASX dividend share has a very promising future.

    The post 2 ASX shares with dividend yields above 9% appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison has positions in Hearts And Minds 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 Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027?

    Three business people stand on platforms in the desert and look out through telescopes.

    Owning Fortescue Ltd (ASX: FMG) shares typically means receiving a solid level of dividend income each year, so we’re going to look at what it could mean for investors in 2027.

    Fortescue is one of the world’s largest iron ore miners and its dividend yield can be high because of the company’s low price/earnings ratio (P/E) ratio and a relatively high dividend payout ratio.

    The ASX mining share recently gave an update that sent the Fortescue share price lower, so let’s remind ourselves of what was said.

    Difficult start to FY27

    In an ASX announcement, Fortescue said that in the three months to September 2026, total iron ore shipments were 46.8 million tonnes (mt), which was 6% lower year-over-year (despite including 2.5mt from Iron Bridge).

    The realised/sold price for its hematite (iron ore) was US$80 per dry metric tonne (dmt), lower than US$90.70 it experienced during FY26.

    Fortescue noted that iron ore shipments were affected by maintenance during the quarter. Iron ore sales of 42.9mt were below shipments because of the impact of ongoing negotiations with China Mineral Resources Group (CMRG), a key Chinese buyer of iron ore.

    So, there’s potential for FY27 to be stronger or weaker, depending on what happens with the iron ore price and negotiations with CMRG.

    FY27 payout prediction

    Analysts currently project that Fortescue’s earnings per share (EPS) could fall to $1.34 in the 2027 financial year, according to Commsec, which could then see a drop in the dividend per share.

    The projection on Commsec currently suggests that owners of Fortescue shares could receive an annual dividend per share of 85.8 cents.

    At the time of writing, the forecast payout translates into a dividend yield of 5.6% excluding franking credits and 8% including franking credits.

    For most businesses, that’d be a solid yield. However, it does represent a large decline of the dividend per share. It’s only due to the large decline of the Fortescue share price that the yield is still attractive.

    What it would take for $1,000 of passive income in 2027

    If the analyst predictions do become reality, then we can work out how many Fortescue shares they’d need to own to make $1,000 of passive dividend income from the current financial year.

    Excluding franking credits, an investor would need to own 1,166 Fortescue shares to generate $1,000 of passive income.

    Including franking credits, an Australian would only need to own 816 Fortescue shares for the desired dividends.

    But, with the current uncertainty hanging over Fortescue, I could understand investors wanting to look at other ASX shares for returns.

    The post How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027? 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.

  • Down 30%: Why a top broker just upgraded PLS shares

    A man holding a cup of coffee puts his thumb up and smiles with a laptop open.

    It has been a tough period for PLS Group Ltd (ASX: PLS) shares.

    A heavy decline on Tuesday in response to falling Chinese lithium prices means the mining giant’s shares are down almost 30% year to date.

    While that is disappointing and weakening lithium prices are a concern, Bell Potter believes the selling has gone too far.

    What is the broker saying?

    Bell Potter notes that lithium prices have been weaker than it was expecting. As a result, it has trimmed its estimates for the medium term to reflect this. It said:

    We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t). 

    Our estimates of US$1,625/t in FY29 and US$1,500/t long term are unchanged. Lower lithium prices have corresponded with weaker market sentiment in China and commodity agencies pointing to a modest market surplus in 2027. China’s SC imports reached a record in August 2026 (spglobal.com) with a surge in volume from Africa; lithium carbonate imports have also rebounded. However, articles suggest that China’s downstream inventories remain lean and that underlying demand fundamentals are strong.

    The good news is that despite this weakness, the broker believes PLS will continue to deliver strong profit growth. It is forecasting a net profit of $698 million in FY 2027 (up from $526 million), then an increase to $784 million in FY 2028.

    PLS shares upgraded

    In response to the above, Bell Potter has upgraded PLS shares to a buy rating with a reduced price target of $4.40 (from $5.20).

    Based on its current share price of $3.08, this implies potential upside of approximately 43% for investors over the next 12 months.

    No dividends are forecast over the near term by the broker.

    Commenting on the upgrade, Bell Potter said:

    We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

    The post Down 30%: Why a top broker just upgraded PLS shares 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.

  • [Gated article] I searched for the next great ASX compounder. These shares deserve attention

    Man smiling ahead while working on his MacBook.

    The ASX has produced some incredible long-term wealth creators.

    Think about shares such as REA Group Ltd (ASX: REA), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE). 

    They have demonstrated how rewarding it can be when a company keeps growing earnings over many years, delivering average total returns of over 15% per annum over the past 15 years.

    For example, a $10,000 investment growing at an average of 15% a year would have become approximately $80,000 over 15 years, without another dollar being invested.

    Of course, returns like that are far from guaranteed. But it demonstrates why finding a business capable of growing for decades can be so rewarding.

    The biggest challenge is recognising one before most of its growth has happened.

    The good news is that I’ve identified three ASX shares that I believe deserve attention.

    Life360 Inc (ASX: 360)

    The first is Life360, which has built a family safety platform offering location sharing, driving reports, crash detection, and other services.

    What I like about the ASX tech share is the size of the audience it has already built and how much more valuable that audience could become.

    At the end of June, the company had 102.4 million monthly active users globally. Around 54 million were in the United States, with another 48.4 million elsewhere.

    I see little reason why Life360’s international business couldn’t eventually become significantly larger than its US operations, particularly as awareness of the platform increases globally.

    And because most people use the service for free, there is plenty of room to increase revenue through paid memberships, advertising, and additional services as the audience grows.

    There is still a lot of work to do, particularly when it comes to generating more revenue from international users. But if Life360 can keep expanding its audience while converting more users into paying customers, I think it could be a significantly larger and more profitable business in another decade.

    However, Life360 isn’t the only business that caught my attention.

    The next company has recently secured billions of dollars in contracts, potentially transforming its growth outlook. The third has an entirely different opportunity that could allow it to keep growing for many years.

    Megaport Ltd (ASX: MP1)

    Another ASX share that I think has the potential to become a great compounder is Megaport.

    It originally made its name helping businesses connect quickly and easily to cloud providers and data centres.

    That is still an attractive market to operate in. As companies use more cloud services and move increasing amounts of data around the world, demand for flexible connectivity should continue growing.

    But Megaport’s acquisition of Latitude.sh has been a game-changer and opened up a much larger opportunity.

    The company can now provide computing capacity alongside its existing networking services, giving it exposure to the enormous investment taking place in artificial intelligence (AI) infrastructure.

    And it hasn’t taken long for this strategy to start producing results. Since April, Megaport has announced approximately $2.3 billion in strategic AI infrastructure contracts.

    Those agreements have already prompted management to upgrade its FY 2027 revenue guidance to between $720 million and $810 million.

    That’s more than double the $312.2 million it recorded in FY 2026.

    It is worth remembering that building and operating AI infrastructure requires substantial investment, with Megaport expecting capital expenditure of approximately $1.8 billion in FY 2027.

    It also needs to deliver the projects successfully and generate attractive returns on that investment.

    But if Megaport can demonstrate that its expanding infrastructure business is capable of generating strong and sustainable cash flows, the opportunity could be enormous.

    Netwealth Group Ltd (ASX: NWL)

    A final ASX share that I think deserves attention is Netwealth.

    It operates in a market that most Australians are already familiar with. That is superannuation and investing.

    The company provides the technology and administration services used by financial advisers to manage their clients’ wealth.

    And I think it has an excellent opportunity to keep taking market share from older investment platforms.

    One reason is that advisers increasingly want sophisticated systems that make it easier to manage portfolios, produce reports, and offer clients a wide range of investments.

    Netwealth has invested heavily in its technology to meet those needs.

    Once advisers move their clients onto the platform, those relationships can also be difficult to replace. Switching providers can involve significant work, particularly when large numbers of client accounts are involved.

    This gives Netwealth an opportunity to keep growing alongside its existing customers while attracting new advisers.

    The company’s recent performance shows how well the strategy has been working. At the end of June, Netwealth had $135.7 billion in funds under administration, representing growth of approximately 20% over the previous year.

    Management is now targeting net inflows of between $18 billion and $20 billion in FY 2027 and has an ambition to double funds under administration over four years. 

    If it can achieve anything close to that, I think earnings could grow very strongly.

    There are risks, of course. Weaker financial markets could reduce the value of assets on the platform, while competition remains strong.

    Netwealth is also defending a class action relating to First Guardian investment options. I wouldn’t dismiss that issue lightly, particularly when trust is so important in financial services.

    Nevertheless, I believe Netwealth has a significant opportunity to keep growing as Australians build their retirement savings and advisers seek better technology.

    The post [Gated article] I searched for the next great ASX compounder. These shares deserve attention appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360, Megaport, Pro Medicus, REA Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Megaport, and Netwealth Group. 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 Life360 and Netwealth Group. 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.

  • 2 ASX shares highly recommended to buy: Experts

    Buy now written on a red key with a shopping trolley on an Apple keyboard.

    I think it’s very interesting when numerous analysts are positive about an ASX share with buy ratings.

    It’s not just one investment professional that’s excited about a business, there’s multiple analysts that are calling the business a buy.

    It could indicate that there’s a clear opportunity on offer.

    CAR Group Ltd (ASX: CAR)

    CAR Group describes itself as a global digital marketplace business, with a goal of being the global leader in online vehicle marketplaces. It operates in a number of vehicle categories – automotive, commercial, industrial and leisure.

    It operates in several countries, including Australia (Carsales), South Korea (Encar), the US (Trader Interactive), Chile (Chileautos) and Brazil (it’s the majority shareholder of Webmotors).

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most positively rated ASX shares right now.

    The business had a solid FY26, reporting revenue growth of 6% to $1.25 billion, net profit growth of 14% to $314 million and full-year dividend growth of 8% to 86 cents per share.

    CAR Group expects to deliver solid growth in FY27. In the 2027 financial year, in constant currency terms, revenue is expected to grow between 11% and 14%, while adjusted operating profit (EBITDA) is expected to grow between 10% and 13%, and adjusted net profit is guided to grow between 9% and 12%.

    In Australia, the business is expecting high single-digit revenue growth. Meanwhile, in North America and Latin America, revenue is expected to grow by double digits. Australia and Latin America are expected to see operating leverage, while other markets are expected to see a lower EBITDA margin as they invest for growth.

    Integral Diagnostics Ltd (ASX: IDX)

    Another highly rated ASX share is Integral Diagnostics. It’s a leading provider of medical imaging services across Australia and New Zealand.

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most highly rated ASX shares.

    The company delivered strong revenue growth and improving profit margins. In FY26, revenue grew 25.6% to $788.7 million, operating profit (EBITDA) grew 30.3% to $164.8 million (with a margin of 20.9%), and operating net profit increased 50.1% to $47.4 million.

    The ASX share said that it’s focused on network expansion, sustainable revenue growth, EBITDA margin improvement to more than 21%, increased productivity and capacity, and lowering debt levels.

    According to the projection on Commsec, it’s trading at 16x FY27’s estimated earnings, with further growth expected in both FY28 and FY29.

    The post 2 ASX shares highly recommended to buy: Experts 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 CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Wednesday

    Broker looking at the share price.

    On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day with the smallest of gains. The benchmark index rose a fraction to 8,783.9 points

    Will the market be able to build on this on Wednesday? Here are five things to watch:

    ASX 200 to fall

    The Australian share market is expected to fall on Wednesday following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.35% lower. In the United States, the Dow Jones fell 0.35%, the S&P 500 dropped slightly, and the Nasdaq was down 0.15%.

    Oil prices mixed

    ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1% to US$94.69 a barrel and the Brent crude oil price is down 0.45% to US$106.16 a barrel. Traders are assessing the impacts of the Russian diesel supply deal and the Saudi-Houthi conflict.

    Buy PLS shares

    The team at Bell Potter has upgraded PLS Group Ltd (ASX: PLS) shares this morning following a period of weakness. Although the broker has reduced its lithium price forecasts, it remains positive and has upgraded PLS shares to a buy rating with a trimmed price target of $4.40 (from $5.20). It said: “We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.”

    Gold price softens

    ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.1% to US$4,187.2 an ounce. Traders were selling gold ahead of the release of US inflation data.

    Rio Tinto update

    Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday when the mining giant releases its quarterly update. Investors will no doubt be looking to see if Rio Tinto remains on course to achieve its guidance in 2026. It is targeting copper production of 800kt to 870kt and iron ore sales of 343Mt to 366Mt. Costs are expected to be US$23.5 to US$25 per tonne for iron ore and 30 US cents to 50 US cents per pound for copper. Elsewhere, Commonwealth Bank of Australia (ASX: CBA) is holding its annual general meeting today and will be worth watching.

    The post 5 things to watch on the ASX 200 on Wednesday 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.

  • Here’s the dividend forecast out to 2029 for AGL shares

    Hand putting a leaf in a piggy bank with a green outdoor background and environment related icons.

    Owning AGL Energy Ltd (ASX: AGL) shares over the years has delivered plenty of passive income in the form of dividends. Investors may be wondering what the future holds for potential payments.

    As one of Australia’s largest energy businesses, AGL has an important role to play in terms of both the energy it generates and its role as one of the largest energy retailers.

    In terms of its energy retailing, in FY26, it reported that it had total AGL customer services of 4.6 million (up 92,000 year-over-year).

    Its energy generation portfolio is currently very diversified across coal-fired power, gas, hydro, wind, solar and batteries.

    The company is currently working on transitioning its energy portfolio. It has ambitions to add 12GW of new renewable and firming capacity by the end of 2035, and is looking at options to accelerate that timeline where possible.

    Given the required capital expenditure for its new energy investments, let’s look at what the upcoming dividends could be.

    FY27

    In the 2026 financial year, the company generated underlying net profit after tax (NPAT) of $631 million (down 2%) and declared an annual dividend per share of 50 cents.

    AGL said that it’s targeting a dividend payout ratio range of between 55% to 60% of underlying net profit for the FY27 dividend and it’s expected to be fully franked.

    According to the projection on Commsec, AGL is forecast to see a slightly lower annual dividend of 49 cents per share, which would represent a decline of 2% compared to FY26. That would be a dividend yield of 5.8% excluding franking credits and 8.3%, including franking credits.

    FY28

    The company’s financials could see a decline of earnings in the 2028 financial year, which could then see a flow-on effect to the dividend. Earnings per share (EPS) could decline by 20% in FY28, which is a sizeable drop.

    According to the projection on Commsec, AGL’s dividend will fall by another 26% to 36.4 cents per share. At the time of writing, that translates into a dividend yield of 4.3% excluding franking credits and 6.2% including franking credits.

    FY29

    In the final year of this series of projections, AGL’s earnings dividend could start climbing again, according to the forecast.

    AGL’s EPS could climb by 22.8% in the 2029 financial year, which could help the dividend rise by 15% to 41.9 cents per share.

    That estimate says that the AGL dividend yield could be 5% excluding franking credits and 7.1% including franking credits.

    If these projections happen, it shows that the AGL dividend yield could remain solid, even if the payout does reduce in FY28.

    The post Here's the dividend forecast out to 2029 for AGL shares 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.

  • Zip vs WiseTech: Which is the superior ASX growth stock today?

    Piles of increasing coins alongside an hourglass.

    Zip vs WiseTech shares: which is the stronger growth prospect?

    If you’re considering ASX growth shares for your portfolio, two very different technology names you might be weighing up are Zip Co Ltd (ASX: ZIP) and WiseTech Global Ltd (ASX: WTC). Both operate in tech-driven industries and have ambitious aims, but their fundamentals, business models, and recent share price action make for an intriguing comparison. Let’s look at Zip vs WiseTech shares to see which could be better positioned for strong growth from here.

    The case for Zip

    Zip is an Australian fintech focused on point-of-sale credit, best known for its buy-now, pay-later (BNPL) products like Zip Money and Zip Pay. Founded in 2013 with ambitions to disrupt the credit card sector, Zip has quickly broadened its reach and according to its most recent public description, now operates in 12 countries spanning Australia, New Zealand, and the US.

    The BNPL sector is famously competitive, and after a hot run a few years back, many of the major players have struggled with profitability and regulation risks. For Zip, several fundamentals stand out:

    • Market cap of $2.69 billion places it firmly in the mid-cap camp.
    • Its P/E ratio is 23.84, which is relatively moderate for a tech business—if earnings can keep growing.
    • Zip pays no dividend (Dividend Yield 0.00%), consistent with its growth focus.
    • Year-to-date (YTD) Return is deeply negative at -34.4%, suggesting a tough period for the stock price.

    Zip’s business now spans several countries and it continues to target both consumers and merchants with its fee-based and interest-free payment services. With net positive EPS reported ($0.091 per share), there are signs that Zip is moving toward profitability, but ongoing sector pressure and regulatory scrutiny may weigh on near-term growth.

    The case for WiseTech

    WiseTech Global is a heavyweight in Australian technology, specialising in logistics and supply chain software. Its main product, CargoWise One, helps some of the world’s largest freight companies—including Toll and DHL—manage logistics operations efficiently. Founded in 1994, WiseTech has spent decades building its global presence, now supporting customers across all continents according to its most recent profile.

    Key numbers for WiseTech:

    • It boasts a much larger market cap of $11.31 billion, showing its global scale and sector influence.
    • The P/E ratio is higher at 44.0, reflecting considerable market optimism and perhaps the premium placed on scalable software.
    • Dividend Yield is modest at 0.65%, but importantly, all dividends are fully franked (Franking 100%), which is attractive to many Australian investors.
    • Earnings per share come in at $0.485, with a dividend per share of $0.22.
    • Like Zip, the stock has underperformed in 2026 so far: the YTD Return is a challenging -50.6%.

    While its business is less consumer-facing and more focused on enterprise software than Zip, WiseTech operates in a logistics sector where efficiency and global reach are increasingly prized. Regular fully franked dividends show WiseTech’s ability to return capital to shareholders, even as it continues to chase global growth.

    Valuation comparison

    With both companies squarely in the tech sector but operating different models, their fundamental ratios tell an interesting story:

    Metric Zip WiseTech
    Market Cap $2.69 billion $11.31 billion
    P/E Ratio 23.84 44.00
    Dividend Yield 0.00% 0.65% (fully franked)
    Earnings per Share $0.091 $0.485
    Dividend per Share N/A $0.22

    It’s worth noting that WiseTech’s higher P/E ratio suggests much loftier market expectations for growth, even as its recent share price has stumbled. Only WiseTech offers a (small, franked) dividend at present. Zip’s more modest P/E may indicate more downbeat expectations, but it also signals less pricing in of future growth (or potentially more risk).

    Recent share price momentum

    Comparing price movements as of 9 October 2026:

    • Zip closed at $2.16, up 3.85% for the day, but down sharply YTD (-34.4%). Recent volatility was high, with a double-digit one-day fall in late September.
    • WiseTech closed at $33.63, up 4.25% for the day, but carries a steeper YTD decline of -50.6%. In the late September to early October period, it also displayed big swings but managed some strong daily rebounds.

    Which is the better buy?

    Looking at Zip vs WiseTech shares, I’d lean toward WiseTech as the stronger growth prospect from here—despite its recent underperformance and high valuation. WiseTech operates in a global market that’s only becoming more vital with the rise of e-commerce, supply chain digitalisation, and global trade complexity. While the P/E multiple (44x) is steep, WiseTech combines positive earnings, a consistent (if modest) dividend, full franking, and a broad, defensive customer base. That’s a solid foundation for recovery and future growth if the company executes.

    Zip, while interesting as a potential turnaround, remains heavily exposed to the fortunes of the BNPL sector—a space facing consumer fatigue, intensifying competition, and ongoing regulatory risk. Its lack of dividend and sharply negative share price momentum make it a more speculative play in my view.

    Neither stock has delivered great returns YTD. But for long-term growth, my pick would be WiseTech. I think its sticky enterprise relationships and recurring revenue could underpin a stronger rebound and compounding power over time, whereas Zip feels like a riskier bet whose story will need a major catalyst to reignite.

    The post Zip vs WiseTech: Which is the superior ASX growth stock today? 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

  • 3 dirt cheap ASX shares I think are undervalued today

    Couple using their digital tablet together.

    Cheap ASX shares can be deceptive.

    Sometimes a low valuation is simply the market recognising that earnings are about to fall. Other times, though, the share price does not seem to reflect just how much a business could be earning a few years from now.

    That second group is what interests me.

    I have found three ASX shares where the forward numbers look increasingly difficult to ignore. They operate in completely different industries and come with very different risks, but I think all three could be worth considerably more if current earnings expectations prove even broadly correct.

    The first one is already reasonably priced today. Look another year or two ahead, though, and the valuation starts to look extraordinary.

    Northern Star Resources Ltd (ASX: NST)

    Northern Star shares are trading around $24.76 at the time of writing.

    On FY27 earnings alone, I would not necessarily describe that price as dirt cheap.

    Consensus estimates point to earnings per share (EPS) of $1.35, putting the gold miner on a forward price-to-earnings (P/E) ratio of around 18 times.

    That looks reasonable enough for one of Australia’s largest gold producers. But the investment case changes materially when I look further ahead.

    Analysts expect EPS to jump to $2.41 in FY28 and $3.31 in FY29. At today’s share price, those estimates imply P/E ratios of roughly 10 times and 7.5 times, respectively.

    That is where Northern Star starts to look seriously undervalued to me.

    The dividend outlook moves in the same direction. Consensus forecasts point to dividends per share of 51.6 cents in FY27, 73 cents in FY28, and 86.2 cents in FY29. At the current share price, the FY29 forecast would represent a dividend yield of around 3.5%.

    Of course, there is an important reason the market may be reluctant to fully price those estimates in today. Northern Star sells gold, and the gold price will have a major influence on whether those earnings forecasts are achievable.

    If the gold price remains higher for longer and production growth plans are delivered, I think it is very likely there will be a large increase in Northern Star’s profits.

    But it is important to acknowledge that if gold falls sharply instead, those EPS estimates could come down just as quickly.

    That commodity sensitivity is the main risk I would keep in mind. But for investors who want gold exposure and are comfortable with that uncertainty, I think the potential reward is substantial.

    An ASX share trading at around 7.5 times FY29 forecast earnings does not need everything to go perfectly to get my attention.

    And Northern Star is only the first of my three picks.

    Universal Store Holdings Ltd (ASX: UNI)

    My second pick comes from a completely different corner of the market.

    Universal Store shares are trading around $8.04 at the time of writing, and I think the current valuation leaves plenty of room for the business to keep delivering.

    The retailer sits behind brands including Universal Store, Perfect Stranger, and Thrills, giving it exposure to younger consumers across fashion and lifestyle categories.

    Consensus estimates currently point to EPS of 57.8 cents in FY27, rising to 63.2 cents in FY28, and 68.9 cents in FY29.

    At $8.04, that puts the shares on roughly 14 times FY27 earnings, falling to around 13 times FY28 earnings and less than 12 times FY29 earnings. I think that is a low price to pay if Universal Store can continue growing profits at the rate analysts expect.

    The dividend makes the valuation even more interesting. Consensus forecasts point to dividends of 45 cents per share in FY27, 48 cents in FY28, and 53 cents in FY29.

    At today’s price, the FY27 estimate represents a dividend yield of around 5.6%. By FY29, that potential yield rises to approximately 6.6%.

    But retail shares obviously come with risks. Consumer spending can weaken, fashion preferences can change quickly, and a retailer still has to get its product, pricing, inventory, and store strategy right.

    But at the current valuation I am not being asked to pay a growth-stock multiple for Universal Store. At around 14 times FY27 earnings, I think there is already a reasonable amount of caution built into the price.

    If the company can keep lifting EPS towards 69 cents over the next few years while maintaining a strong dividend, I think the current share price could ultimately prove too low.

    Zip Co Ltd (ASX: ZIP)

    Zip is probably the highest-risk pick of these ASX shares, but it may also offer the most obvious valuation upside.

    The shares are trading around $2.23 at the time of writing. Consensus forecasts point to EPS of 15 cents in FY27, 18 cents in FY28, and 22 cents in FY29. That means investors are paying around 15 times FY27 earnings today.

    Already, I think that looks quite reasonable for a business expected to grow profits strongly.

    But again, the outer years are where things become much more interesting. The P/E ratio falls to around 12.4 times FY28 earnings and just over 10 times FY29 earnings if the forecasts are achieved.

    Meanwhile, EPS would increase by almost 47% between FY27 and FY29. That combination is what makes Zip look undervalued to me.

    The company does still have plenty to prove. I want to see Zip continue taking a greater share of the payments market in the United States and Australia, while growing transaction volumes and its customer base.

    Just as importantly, that growth needs to be disciplined. Adding users is not particularly valuable if bad debts rise too quickly alongside them. Credit quality needs to remain under control as the business gets larger.

    If Zip can balance those two sides of the equation, growing payment volumes while maintaining sensible lending standards, I think the earnings forecasts become much easier to believe.

    And if the company eventually earns 22 cents per share while continuing to grow, I struggle to see why investors would permanently value it at around 10 times earnings.

    That does not mean the path will be smooth. Zip shares have been extremely volatile before, and sentiment towards buy now, pay later businesses can change quickly.

    But at the current price, I think the valuation gives me enough room to accept that uncertainty.

    Foolish takeaway

    I think the market is being too cautious about what these businesses could earn over the next few years.

    There is certainly some uncertainty surrounding all three, but I believe their growth prospects make the current valuations hard to ignore.

    I’d be happy to buy at today’s prices and give them time to prove their worth.

    The post 3 dirt cheap ASX shares I think are undervalued today appeared first on The Motley Fool Australia.

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    Motley Fool contributor Grace Alvino has positions in Northern Star Resources. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.