Category: Stock Market

The CSL Ltd (ASX: CSL) share price has been on a rollercoaster over the past year, trading as high as $221.76 and as low as $90.

The price has recovered well from those lows, and the shares are now changing hands for $193.89.

The question now is, how much are they worth into the future?

Broker says CSL shares are a good buy

Morgan Stanley has made a call on that value, which I’ll reveal shortly.

First let’s have a look at what’s driving their valuation.

The broker has called out two recent developments – agreements struck with Varm-X and Alentis for the development and commercialisation of VMX-C001 and lixudebart.

The most recent agreement, with Alentis, aims to develop lixudebart into a potential first-in-class treatment for people with rare kidney and liver disease.

CSL said in early October that the compound was currently being evaluated in a Phase 2 trial, “in patients with ANCA-associated vasculitis and rapidly progressive glomerulonephritis (AAV-RPGN), a rare and potentially life threatening auto-immune disease that can cause irreversible kidney damage and end-stage renal disease”.

CSL Executive Vice President Dr Bill Mezzanotte said the agreement, “reflects CSL’s commitment to building a leading global nephrology franchise, and our strategic intent to create high-value external partnerships”.

Morgan Stanley said it was factoring in an FY32 launch for lixudebart.

The other agreement is focussed on developing a treatment to restore blood coagulation in patients taking a Factor Xa inhibitor.

Morgan Stanley said they had factored both compounds into their financial assumptions going forward.

They said:

For VMX-C001, we include ~US$765mn of revenue by FY36, with a valuation contribution of ~A$8/ share. For lixudebart, we capture ~US$500mn of revenue by FY36, with a valuation contribution of ~A$3/share. Together, this provides EPS upgrades of ~2% in FY32 rising to ~7% in FY36.

CSL back on track

Morgan Stanley said, looking across FY26 and FY27, there had been improvement at the company.

They added:

More generally, we see the FY26 result and FY27 guidance as highlighting incremental improvement within CSL Behring, the key driver of group earnings growth over the medium to longer term (see here). Our forecasts imply solid underlying NPAT growth, supplemented by an ongoing buyback program (EPS growth of ~8% p.a. over FY28-30). CSL trades on 20.6x our 12-month forward underlying EPS forecast, with further multiple expansion contingent on commercial delivery and R&D pipeline expansion.

Morgan Stanley has a price target of $200 on CSL shares, up from $182, compared to $193.89 currently.

The company is currently valued at $92.2 billion.

The post Morgan Stanley just upgraded their CSL share price target appeared first on The Motley Fool Australia.

More reading

• ASX 200 utilities and healthcare shares win the week again
• 9 ASX 200 shares experts are backing for growth amid market weakness
• I compared 5 of the ASX’s best shares. Here’s which one I’d buy today
• How much passive income can I earn off a $700,000 superannuation balance?
• CSL, Westpac, BHP shares: Buy, hold, or sell?

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

Ansell vs Ampol shares: Which outperforming ASX 200 stock can keep rallying?

When two ASX 200 heavyweights like Ansell Ltd (ASX: ANN) and Ampol Ltd (ASX: ALD) put in big runs, it’s natural for investors to weigh up which performer could shine brightest from here. Both companies have delivered strong gains in 2026 to date, stand head and shoulders in their respective sectors, and offer solid fundamentals—yet they’re very different beasts. Here’s my take on how these two stocks stack up right now.

The case for Ansell

Ansell is a global provider of protective gloves and bodywear, primarily serving healthcare and industrial sectors. With extensive patents and a broad suite of established brands, it sells products in over 100 countries. Most of Ansell’s revenue, as highlighted in its company profile, comes from its healthcare division, while its industrial segment rounds out the rest. Its footprint is truly international, with a strong focus on North America.

A couple of key fundamentals stand out:

• Market cap: $6.41 billion
• P/E ratio: 21.73
• Year to date return: 31.7% (rounded)
• Ansell pays a dividend, though at 2.12% yield and with no franking, it’s on the modest side by ASX standards. The current dividend per share is $1.16. EPS sits at 1.451.

Interestingly, Ansell’s dividend history shows a long-term commitment to distributions, but none have been franked in recent years. Its share price has enjoyed a robust surge so far this year, reflecting upbeat sentiment.

The case for Ampol

Ampol is Australia’s largest petroleum refiner and distributor, running around 2,000 branded service stations nationwide. Previously known as Caltex, it’s now standalone after Chevron’s exit. Ampol’s business covers the refining, distribution, and retailing of fuel and lubricants. It also operates in New Zealand and owns a stake in a leading Philippines fuel company.

Notable highlights from its latest fundamentals:

• Market cap: $10.37 billion (considerably bigger than Ansell)
• P/E ratio: 7.05
• Year to date return: 43.4% (rounded)
• Ampol pays a substantially higher dividend—with a yield of 5.65% (fully franked, which matters to many local investors). The reported dividend per share is $3.70, while EPS is a solid 6.148.

Ampol’s fully franked dividends and sector-leading yield make it a drawcard for income investors, while its massive YTD return shows it’s not just a yield play—momentum is strong.

Valuation comparison

There are several stark differences to weigh up. Here’s a head-to-head of the main numbers:

Metric	Ansell	Ampol
Market Cap	$6.41 billion	$10.37 billion
P/E Ratio	21.73	7.05
Dividend Yield	2.12% (not franked)	5.65% (100% franked)
Dividend per share	$1.16	$3.70
Earnings per share (EPS)	1.451	6.148

It’s worth noting the sector context here. Ansell, in healthcare/industrial supplies, tends to have higher valuation multiples than the capital-intensive energy sector Ampol occupies. Still, the P/E gap is gaping.

Ampol’s fully franked, high-yield dividends may appeal strongly to investors relying on tax-effective income. In contrast, Ansell’s dividends are not franked, which may be less attractive for some.

Recent share price momentum

Comparing recent share price performance up to 14 October 2026:

• As of 14 Oct 2026, Ansell closed at $45.56. Its share price climbed from $42.16 (17 Sep 2026) to $45.56 (14 Oct 2026) — a gain of roughly 8.1% across this period, contributing to a strong year-to-date return of 31.7%.
• As of 14 Oct 2026, Ampol closed at $43.51. It rose from $43.13 (17 Sep 2026) to $43.51 (14 Oct 2026), a far more modest uptick of around 0.9% over the same stretch, but its year-to-date return is an impressive 43.4% — easily outpacing Ansell for 2026 overall.

Which is the better buy?

If I’m picking which outperforming ASX 200 stock looks set to keep on rallying, I’d lean toward Ampol. The numbers really pop: a P/E far below Ansell’s, robust EPS, and a hefty, fully franked yield of 5.65%. Its share price has already leapt 43.4% this year—and it’s kicking out reliable, tax-effective income at the same time.

Ansell’s strong global business and defensive healthcare exposure are commendable and its shares have performed well, but it trades at a much higher multiple, offers a lower yield, and its dividends aren’t franked. For investors seeking growth plus income, Ampol’s combination of momentum, value, and yield stands out even more.

Of course, sector differences matter—resource-based earnings can be volatile—but right now, based on fundamentals and price action in the data supplied, my pick would be Ampol.

The post Ansell vs Ampol: Which outperforming ASX 200 stock can keep climbing in 2026? appeared first on The Motley Fool Australia.

More reading

• Ampol posts 3Q26 EBIT growth and surging refinery margins
• 5 ASX 200 stocks analysts have upgraded this week
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• 2 top ASX blue-chip shares to buy according to experts
• Buy, hold, sell: Xero, Ansell, Wesfarmers shares

Motley Fool contributor Laura Stewart has positions in Ansell. 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. 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.

If you’re among the 33% of Australians with a mortgage, you’re likely to have noticed a dramatic increase in your mortgage repayments this year. 

Since the beginning of 2026, the Reserve Bank of Australia (RBA) has lifted the cash rate four times, taking it from 3.6% to 4.6%. This represents a 15-year high.

For those with an average $731,000 loan balance, this change is meaningful. For those with an even larger mortgage or insufficient income to cover it, the change is likely to be especially stressful. 

At the same time, a record number of Australians are investing.

According to the 2026 ASX Investor Study, 11.5 million Australians are now investing outside of their superannuation or primary residence in 2026. That’s up by 2.5 million since 2020. 

The largest allocation is to ASX-listed shares, with 58% of investors holding them. 

Approximately 950,000 Australian adults also plan to start investing in the next 12 months.

Interest in Self-Managed Super Funds (SMSF) investing is also rising. Around 20% of non-SMSF investors say they’re considering establishing an SMSF in the next 12 months.

Overall, the data is showing that a growing number of Australians are committed to growing their wealth through investing. However, in the face of mortgage pressures, many of these investors may be reconsidering whether to pay down the mortgage instead. 

While this is a highly personal decision, a simple calculation can help Australian mortgage holders decide which option is more likely to put them ahead.

So let’s run through the numbers.

Calculating your before-tax mortgage rate

According to the RBA, the average variable interest rate on owner-occupied properties stands at 6.2%. 

Unlike investment properties, interest repayments on mortgages for primary residences are not tax deductible. This means that homeowners must make mortgage repayments after paying income tax.

So, it’s the before-tax figure that matters.

In Australia, we have a progressive tax system. This means that higher income earners are taxed at higher rates than lower income earners. As a result, the pre-tax mortgage rate will be greater for higher income earners. 

Here’s how to approximately calculate the after-tax rate (including the 2% medicare levy):

Tax bracket	Marginal Tax rate	After tax	Before tax
$0 – $18,200	0%	6.2%	6.2%
$18,201 – $45,000	17%	6.2%	7.5%
$45,001 – $135,000	32%	6.2%	9.2%
$135,001 – $190,000	39%	6.2%	10.2%
$190,001 and over	47%	6.2%	11.7%

Long-term ASX share market returns

The next step is to estimate the return you’re likely to receive by investing in ASX shares. 

According to the 2026 Vanguard Index Chart, Australian shares have returned 9.0% over the past 30 years. While returns have varied year to year, this is a useful proxy for investing in ASX shares and holding them for at least 5 years.

Compare the pair

Now that we’ve run through the numbers, a comparison can be made to determine whether it’s more advantageous to pay down the mortgage or buy ASX shares. 

Let’s make that comparison for the average Australian. 

According to the Australian Bureau of Statistics (ABS), the average Australian annual income in 2026 is $108,352.40. That puts them in the 30% tax bracket (for the upper portion of their income), meaning their pre-tax mortgage rate is 9.2%. 

This is very close to the average return for ASX shares, which comes in at 8.9%. 

So for the average Australian income owner with a mortgage, it’s essentially a draw.

For higher-income earners, paying down the mortgage is slightly more advantageous (11.7% vs 9.0%).

Other considerations

As most mortgage holders would know, there’s more to consider than just the raw figures.

Perhaps most importantly, the emotional burden of being committed to large mortgage repayments can be significant. 

As reported by the Australian Financial Review, the percentage of household income spent on mortgage repayments is near historic peaks, as of mid-2026.

New South Wales, which has the highest average mortgage at around $850,000, has been most affected. The average New South Wales family spent more than 30% of household income on mortgage repayments in June this year. Meanwhile, the average Queensland family allocated 28% towards their mortgage, while South Australia and Western Australia came in at 26%. Victorians paid just 22%.

Another important consideration that would vary the equation is the type of ASX shares that the mortgage holder invests in. While the 30-year average may be a good proxy for investing in index funds such as the Vanguard Australian Shares Index ETF (ASX: VAS), returns vary dramatically based on stock selection. 

Mortgage holders with a track record of significantly outperforming the market may prefer continuing to do so instead of paying down their debt.

What if the RBA raises rates again?

Unfortunately for mortgage holders, further rate hikes have not been ruled out. 

The market has priced in a 30% chance of another rate hike in November 2026. Another one is widely expected in May 2027. 

According to Deloitte Access Economics, should the RBA lift the cash rate to 4.85%, a borrower with the average-sized owner-occupier loan would pay around $9,000 more in annual interest than a year ago. 

This would tip the equation in favour of paying down the mortgage for the average Australian income owner and set a higher returns threshold for preferencing ASX shares.

The post Interest rates are going up: Should you pay down your mortgage or buy ASX shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• I think this ASX share is a bargain buy after hitting a 52-week low: Here’s why
• Up 20%: Has the EQT deal saved Cleanaway shares?
• Could $750,000 in ASX ETFs fund a comfortable retirement?
• A rare buying opportunity in 1 of Australia’s top shares?

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.

It was a somewhat volatile but ultimately positive return to trading for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Monday. After last Friday’s euphoric end to the trading week, investors seemed to have come back from the weekend with that mindset mostly intact.

Although the ASX 200 did briefly dip into negative territory at one point this session, it ended up closing a comfortable 0.44% higher. That leaves the index at 8,845.7 points.

This happy start to the trading week for the Australian markets came after a far more negative conclusion to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) had a rough time, falling 0.34%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was much worse though, dropping 2.14%.

Let’s get back to this week and our local markets now and take a closer look at what the various ASX sectors were up to today.

Winners and losers

Despite today’s broader market optimism, there were still a few sectors that were left out.

Leading those losers were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was left out in the cold, tumbling 1.31%.

Gold shares were no safe haven either, with the All Ordinaries Gold Index (ASX: XGD) diving 0.68%.

Consumer discretionary stocks were also unlucky. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) saw its value cut by 0.2%.

Real estate investment trusts (REITs) were also in that ballpark, as evidenced by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.19% dip.

Our final losers this Monday were consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) slid 0.08% lower.

Let’s turn to the winners now. Leading said winners were energy stocks, with the S&P/ASX 200 Energy Index (ASX: XEJ) galloping 2.21% higher.

Financial shares also ran hot. The S&P/ASX 200 Financials Index (ASX: XFJ) surged by 0.86% today.

Industrial stocks followed financials, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.83% jump.

Utilities shares did decently too. The S&P/ASX 200 Utilities Index (ASX: XUJ) closed up 0.38%.

Communications stocks didn’t miss out, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.21%.

Healthcare shares managed a rise. The S&P/ASX 200 Healthcare Index (ASX: XHJ) finished the day with an extra 0.14%.

Finally, mining stocks just got over the line, as you can see by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.11% bump.

Top 10 ASX 200 shares countdown

Taking out the crown this Monday was waste management stock Cleanaway Waste Management Ltd (ASX: CWY). Cleanaway shares rocketed up 10.24% today to close at $2.97 each.

This followed the news that the company has entered into a takeover scheme with EQT Infrastructure.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Cleanaway Waste Management Ltd (ASX: CWY)	$2.97	20.24%
Challenger Ltd (ASX: CGF)	$11.75	19.29%
Ingenia Communities Group (ASX: INA)	$4.24	7.07%
New Hope Corporation Ltd (ASX: NHC)	$6.18	5.82%
Yancoal Australia Ltd (ASX: YAL)	$6.29	5.71%
Whitehaven Coal Ltd (ASX: WHC)	$7.93	5.17%
Charter Hall Group (ASX: CHC)	$19.35	4.54%
Beach Energy Ltd (ASX: BPT)	$0.905	4.02%
Karoon Energy Ltd (ASX: KAR)	$1.75	3.87%
AMP Ltd (ASX: AMP)	$2.47	3.78%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Up 20%: Has the EQT deal saved Cleanaway shares?
• Cleanaway Waste Management enters $9.3bn Scheme with EQT Infrastructure
• Challenger confirms $11.80 per share takeover proposal
• New Hope to create $6.3bn coal group with Malabar merger
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen 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 Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Deep Yellow Ltd (ASX: DYL) shares have fallen even further into the red in Monday afternoon trade.

At the time of writing, the ASX uranium development company’s shares are down just over 6.5% for the day, and trading at 77 cents a piece.

At one point this morning, the shares were changing hands as low as 76 cents.

That’s the lowest price Deep Yellow shares have traded at over the past three years.

The shares have now fallen around 43% over the past month alone, and they’re down 61% year to date.

Why have the ASX shares hit a multi-year low today?

There hasn’t been any price-sensitive news out of Deep Yellow today to explain the latest share price slide. Instead, it looks most likely that today’s tumble is the result of the company’s latest ASX announcement.

On Friday last week, Deep Yellow said it has delayed the construction decision for Tumas because current equity market conditions do not support raising the capital needed to transition the project into construction in the fourth quarter of 2026.

The uranium developer’s early construction work and contracting will continue, but investors are likely concerned about whether the company can secure a viable funding route for Tumas.

The shares actually climbed around 1% at the close of the ASX on Friday afternoon. But it looks like over the weekend, investors digested the news and raised concerns about the structural and long-term implications of the update.

The news comes at a time when Deep Yellow is already facing share price pressure.

Rising bond yields and higher interest rates have acted as strong headwinds for ASX uranium shares over the past year. Uranium developers like Deep Yellow need upfront capital, and it takes several years to become profitable. Investors have also been rotating towards more stable or defensive assets in times of volatility.

It’s not just Deep Yellow shares that have fallen over the past week; other uranium shares have also been hit by the same headwinds and are falling today.

Here’s why I think Deep Yellow shares are a bargain buy

It’s understandable that the company’s latest Tumas update has spooked investors.

But I still see some potential upside for the ASX shares. 

Beyond its Tumas project in Namibia, the company also has several other key projects and exploration plans.

Deep Yellow is also in a pre-construction and study phase at its Mulga Rock project in Western Australia. The site is one of the largest undeveloped uranium projects in Australia.

The company is also undertaking drilling programs at its Alligator River Project in the Northern Territory, and its Omahola Project in Namibia.

The company is financially strong too. 

Deep Yellow holds a strong liquidity position supported by substantial cash reserves and minimal debt. As part of its latest quarterly activity report, Deep Yellow confirmed that it has cash and cash equivalents of A$160.0 million as of the 30th June 2026.

I see the latest share price declines as mostly driven by poor sentiment, a lack of confidence, and sector-wide headwinds. When these headwinds reverse, I think the company’s shares could rebound quickly.

What do the experts tip for the uranium shares next?

The experts are also bullish that we’ll see a strong upside ahead.

Market Index data shows that the majority of brokers have a buy rating on Deep Yellow shares. The $2.25 average target price implies an impressive upside of around 193% for the ASX shares over the next 12 months, at the time of writing.

The post I think this ASX share is a bargain buy after hitting a 52-week low: Here's why appeared first on The Motley Fool Australia.

More reading

• Deep Yellow updates on Tumas project progress, delays FID
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• Here are the top 10 ASX 200 shares today
• 3 ASX shares tipped to fly 109% to 322% higher
• Buy, hold, sell: Deep Yellow, SGH, Telstra shares

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

One of the big pieces of news to kick off the ASX trading week this Monday has been the announcement that waste management stock Cleanaway Waste Management Ltd (ASX: CWY) has entered into a Scheme Implementation Deed. This will see Cleanaway shares acquired in full by EQT Infrastructure.

As my Fool colleague Laura covered this morning, the deal proposes that EQT will acquire Cleanaway shares for a price of $3.095 in cash per share, representing a 34.5% premium to the three-month value-weighted average price of the company.

Although this news is still fresh, it seems that Cleanaway and the markets are treating it as a done deal. Cleanaway’s board has given the proposal the green light, stating “the Board is unanimous in its view that the Scheme delivers strong and certain cash value to shareholders, at a significant premium to Cleanaway’s undisturbed share price”. The board is unequivocally recommending that shareholders vote for the scheme.

The market has also seized the news with gusto, with Cleanaway shares currently up a stinking 20.05% at $2.96 each. Of course, that is not quite at the $3.095 that is on the table. But it is still a long way from the $2.47 Cleanaway shares closed at last Friday.

Those market watchers looking at this 20% jump in the Cleanaway share price today might understandably assume it is a windfall for shareholders. It certainly is for investors who picked up Cleanaway shares at recent prices. Anytime in the past 12 months, really, given the company hit a new 52-week high of $2.99 today. However, it’s not really enough to save longer-term investors who have been holding on to this stock.

A 20% jump can’t save Cleanaway shares

One might assume that a stock like Cleanaway has been a sure bet. After all, this is the largest waste management service provider in the country. Waste management is an essential service that is almost entirely immune from the economic cycle. As a functioning society, it goes without saying that we need to collect, process, and remove our rubbish, garbage, and waste regularly. That’s regardless of whether inflation is high or low, or whether the economy is booming or busting.

That should, at least in theory, give Cleanaway a permanent tailwind. That, unfortunately, has not been the lived experience of Cleanaway’s investors. This is an ASX 200 stock that just never seems to go anywhere. To illustrate, today’s 20% jump merely raises Cleanaway shares back up to where they were all the way back in April of 2022. Any investors who bought back then have simply traded water eer since. Even the company’s dividends (today yielding about 2.3%) wouldn’t have made a huge dent in that miserly performance.

Looking through this lens may explain why EQT Infrastructure is happy to pay $3.095 per Cleanaway share. This company’s long-term shareholders may not be delighted with the price that is on offer from the takeover. However, they may just relish the opportunity to get out of this stock anyway.

The post Up 20%: Has the EQT deal saved Cleanaway shares? appeared first on The Motley Fool Australia.

More reading

• Cleanaway Waste Management enters $9.3bn Scheme with EQT Infrastructure
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: New Hope, Cleanaway Waste Management, NextDC shares

Motley Fool contributor Sebastian Bowen 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.

Having $750,000 invested in exchange-traded funds (ETFs) would put you in a strong financial position heading into retirement.

But would it be enough to stop working and enjoy a comfortable lifestyle?

I think it could be, particularly with the right investment strategy.

Let’s look at what the numbers suggest.

How much would you need?

According to the Association of Superannuation Funds of Australia (ASFA), a single person who owns their home outright needs approximately $56,166 a year for a comfortable retirement.

That includes everyday expenses alongside holidays, private health insurance, leisure activities, and other things that make retirement enjoyable.

ASFA also estimates that a single homeowner needs around $630,000 in superannuation at age 67 to fund this lifestyle, assuming some assistance from the Age Pension.

So, with $750,000 available, our hypothetical retiree is starting from a promising position.

But the next question is how to turn that money into an income that can last for decades.

How I’d approach an ETF portfolio

One of the things I like about ETFs is that they make it relatively straightforward to spread investments across different markets.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) provides exposure to hundreds of Australian shares, many of which pay regular dividends.

Meanwhile, the Vanguard MSCI Index International Shares ETF (ASX: VGS) offers access to major businesses around the world.

I think combining Australian and international shares could provide a reasonable balance between income and long-term capital growth.

I would also consider including some defensive investments. The Vanguard Australian Fixed Interest Index ETF (ASX: VAF), for example, provides exposure to a diversified portfolio of bonds.

Having some money in these less volatile investments could help reduce the need to sell shares during a market downturn.

For me, that would be important in retirement, when regular withdrawals become part of everyday life.

Could the income cover expenses?

Let’s imagine our $750,000 portfolio generates an average annual dividend yield of 4%. That would provide approximately $30,000 a year in investment income.

It is important to remember that this is an illustrative assumption. Actual dividends would depend on the ETFs selected and could vary considerably.

Nevertheless, it gives us a starting point.

Against ASFA’s comfortable retirement estimate of $56,166, there would be an annual shortfall of approximately $26,166. That means our retiree would need additional income or to sell some investments to cover their spending.

But I don’t see this as a problem. After all, our ETF portfolio would ideally be generating capital growth alongside its distributions.

Let’s imagine the portfolio achieves an average annual total return of 7.5%, comprising 4% in dividends and 3.5% in capital growth.

On a $750,000 portfolio, that additional 3.5% would represent approximately $26,250 in capital appreciation.

That is almost exactly what our retiree needs to make up the shortfall.

In a year when those returns are achieved, selling some ETF units could cover the remaining living expenses while leaving the overall portfolio value broadly unchanged.

Of course, returns won’t arrive so neatly every year. Markets can fall, dividends can be reduced, and some years will require larger withdrawals from capital.

Inflation will also increase living costs over time, so maintaining the portfolio’s value in dollar terms would not fully protect its purchasing power.

But I think a diversified portfolio targeting a reasonable mix of income and growth could be a workable retirement strategy, particularly if Age Pension payments eventually provide additional support.

Foolish takeaway

For a single person who owns their home outright, I think $750,000 in ASX ETFs could be enough to fund a comfortable retirement.

An average annual return of 7.5% would theoretically cover today’s estimated living expenses without steadily depleting the original investment.

That return is not guaranteed, and I would want some flexibility to handle weaker years. But I think the numbers show that a comfortable retirement with $750,000 is certainly achievable.

The post Could $750,000 in ASX ETFs fund a comfortable retirement? appeared first on The Motley Fool Australia.

More reading

• Vanguard ETFs will pay dividends today. Here’s how much
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Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares have seen a lot of volatility since listing in June 2024. Considering the Guzman Y Gomez share price is still down 39% from its December 2024 high, it could be a rare opportunity to invest in one of Australia’s top shares.

The Mexican restaurant business hit a low earlier this year, but since then it has announced impressive numbers that could help continue the trend of a recovering GYG share price and eventually reach new heights.

Guzman Y Gomez is currently focused on three markets: Australia, Singapore, and Japan.

In Australia, the business has a mixture of corporate-owned and franchise restaurants. In Japan and Singapore, it has master franchise agreements.

GYG sells a variety of food items, including burritos, tacos, burrito bowls (without the tortilla), nachos, nacho fries, quesadillas, enchiladas, churros, and plenty more. Its offering seems to be resonating with Australians, given how much it’s growing each year.

There are a few factors key to its success, including ‘clean’ healthy food, a drive-through option at many locations, and speed of service. It’s proud to boast that it’s one of the fastest quick-service restaurants (QSRs) to serve customers.

Ultimately, the company has a goal to be the “best and biggest restaurant company in the world”. Time will tell if it ever reaches that goal, and it doesn’t need to reach that scale to be a very successful investment for Australians, in my view.

I think there are four excellent factors that make it one of Australia’s top shares to buy today, aside from the food.

Strong performance by its existing network

At the end of September 2026, the company said that it had 258 Australian restaurants, 23 Singapore restaurants, and five restaurants in Japan.

The company regularly reports to investors how its existing stores perform on sales growth, using the ‘comparable sales growth’ metric.

For the FY27 first quarter, comparable sales growth for Australia, Singapore, and Japan combined was 7.1%. That’s an impressive growth rate considering Guzman Y Gomez is now over 20 years old, and it’s one of the factors that make me call it one of Australia’s top shares.

The company is driving comparable sales momentum in several ways.

It has invested in a new order management system (OMS), which is driving operational efficiencies in restaurants.

GYG is expanding its opening hours, with dozens of locations now operating on a 24/7 basis.

The company is regularly adding to its range of menu items, including a new Caesar range using mostly existing ingredients, new tacos, and the new meat BBQ beef rib.

It continues to invest in and expand its delivery and digital offering for customers.

The final area that’s driving comparable sales is marketing through various forms of media.

Expanding restaurant network

The existing restaurants are clearly doing well, and it’s expanding its restaurant network.

Shareholders learned how much the network had grown with the FY27 first-quarter update.

It said that its Australian restaurant count had increased to 258. That represented a year-over-year rise of 31 locations, equating to an increase of 13.7%. Within that Australian total, corporate restaurants grew by 10 to 94, and the number of franchise restaurants increased by 21 to 164.

In Asia, Singapore saw an additional restaurant, taking that national total to 23 (a rise of 4.5%). The Japanese total remained at five.

Guzman Y Gomez expects both the Singapore and Japan totals to increase during FY27.

The company expects to open 35 new restaurants in Australia during FY27, with approximately 12 restaurants expected to open in the second quarter.

The long-term potential growth of the global network is exciting to me, and it’s one of the main reasons why it could be one of Australia’s top shares to buy.

Eventually, the business would like to reach 1,000 Australian restaurants within the next 20 years, which is an impressive long-term tailwind. I think it’s a very achievable goal, given that some of its major rivals already have that many outlets and Australia is likely to see significant population growth in the next two decades.

The potential for further international expansion to other countries is also exciting to me.

Rising profit margins

In the third quarter of FY27, the company reported network sales growth of 18.8% to $387.5 million, but the rising profit margins are just as exciting to me. I like seeing a company’s margins increase as scale grows because that shows compelling operating leverage.

Guzman y Gomez is seeing its various profit lines grow faster than revenue.

From its continuing operations in FY26, network sales rose 17.9%, underlying operating profit (EBITDA) grew 28.7% to $85 million, and underlying NPAT grew 29.7% to $53.4 million.

Pleasingly, the underlying EBITDA margin as a percentage of network sales improved by 50 basis points from 5.7% to 6.2%. The company expects this margin to rise in the coming years.

In FY27, the underlying EBITDA margin as a percentage of network sales is expected to rise to between 6.7% and 6.9%.

The actual economics of the restaurants are also growing. According to GYG, the average drive-through restaurant achieved $6.9 million in sales in FY26 (up from $6.7 million in FY25 and $6.2 million in FY24), while the network restaurant margin improved to 21.6% in FY26 (up from 21.5% in FY25).

Both Guzman Y Gomez and its Australian franchisees are becoming increasingly profitable, which is a great sign for the long-term health of the company.

The median franchisee return on investment (ROI) is currently 47%, which is pleasingly high.

Attractive investor metrics

As I mentioned at the start of the article, the Guzman Y Gomez share price is down close to 40% from its former all-time high a couple of years ago.

The valuation looks much more reasonable now that the business is cheaper and is much more profitable on an underlying net profit basis.

According to the projection on CommSec, the company is forecast to generate earnings per share (EPS) of 51.9 cents in FY27, 65.9 cents in FY28, and 94.5 cents in FY29. In other words, EPS could rise by 82% between FY27 and FY29. With that sort of growth rate, I think it could be one of Australia’s top shares to buy.

Using that estimate, the Guzman Y Gomez share price is now valued at 28 times FY29’s estimated earnings.

I also like how the business is willing to enact share buybacks and pay dividends to shareholders, which shows a keen focus on shareholder returns. I think dividends and earnings can climb over the coming years.

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 Guzman Y Gomez. 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.

Australian superannuation funds fell in value by 0.4% in September on the back of weaker international and local share markets, industry analysts Chant West said.

The fall brings the return so far this financial year for the median growth fund back to 0.8%, they said.

Difficult month across the board

Chant West Head of Superannuation Investment Research Mano Mohankumar said September was a challenging month for investment markets with shares and bonds retreating amid rising bond yields, increasing oil prices and sticky inflation.

He added:

Australian shares slipped 2.4% while developed market international shares fell 0.7% in hedged terms. With yields rising, bonds offered little protection, with Australian and international bonds down 0.9% and 1.7%, respectively. Despite all of that, the loss for the median growth fund in September was limited to 0.4%, with the Australian dollar playing an important diversification role as it depreciated from US$0.72 to US$0.69 over the month. That translated the 0.7% hedged loss on developed international shares into a solid gain of 1.9% in unhedged terms, while emerging markets shares rose 2.4%. On average, super funds hold about 70% of their international shares unhedged. Funds’ unlisted asset exposures also helped cushion the impact.

In terms of the different risk settings, all growth funds shed 0.6% for the month, while conservative, balanced, growth and high growth all fell 0.4%, Chant West said.

Mr Mohankumar said it was important to remember that superannuation is a long-term proposition.

He added:

Since the introduction of compulsory super in July 1992, the median growth fund has returned 8% p.a. The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.7% p.a., which is still ahead of the typical objective.

Longer-term picture is rosy

Chant West said the median growth fund has, for the past couple of decades, exceeded its return objective over rolling 10-year periods, except for two periods between mid-2008 and late-2017.

They added:

This is because of the devastating impact of the 16-month GFC period (end-October 2007 to end-February 2009) during which growth funds lost about 26% on average.

The S&P/ASX 200 Index (ASX: XJO) fell almost 3.2% in September to end at 8,789.3 points.

Some of the companies which performed well included Codan Ltd (ASX: CDA), Ingenia Communities Group (ASX: INA)and Reliance Worldwide Corporation Ltd (ASX: RWC).

The post Superannuation funds fell in value in September. See how much they’re down appeared first on The Motley Fool Australia.

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

Pro Medicus Ltd (ASX: PME) shares are in focus on Monday morning following another positive announcement.

The medical imaging technology company has been building an impressive presence in the United States, and its latest news adds to that progress.

But is Pro Medicus a share I would buy for the long term?

Here’s what I think.

Another contract win

Pro Medicus announced this morning that it has secured a new seven-year contract with Billings Clinic in the United States, worth approximately $24 million.

It is another encouraging addition to the company’s growing portfolio of healthcare customers.

I like the consistency with which Pro Medicus has been winning these agreements.

The company secured 10 new contracts worth at least $407 million during FY26, alongside six contract renewals.

I think that demonstrates how well its Visage imaging platform is being received by major healthcare providers.

And with these contracts often running for several years, each new agreement provides another source of revenue that can contribute to earnings over time.

Today’s announcement is another step in that process.

Why I like the long-term outlook

One reason I am very positive on Pro Medicus is the growing importance of medical imaging.

Scan volumes are increasing at a time when many countries are facing shortages of radiologists, putting pressure on hospitals to make better use of their existing specialists.

Pro Medicus helps address this challenge through software that allows radiologists to access and analyse complex images more efficiently.

I think that need for greater productivity could become an increasingly important driver of demand for its technology.

There is also considerable room to expand. Pro Medicus estimates that it has captured around 11% of the US market, leaving the vast majority still available to pursue.

Of course, winning new customers isn’t straightforward. Hospitals need reliable systems that integrate with their existing operations, and switching providers can be complicated.

But I think that also works in Pro Medicus’ favour once its technology is installed. The company renewed all six customer contracts that came up for renewal in FY26, with higher transaction fees. For me, that is encouraging evidence of the value customers place on its software.

More ways to grow

Another reason I like Pro Medicus is that its opportunity extends beyond traditional radiology.

The company has been expanding into cardiology, while developing new capabilities in digital pathology and AI-supported reporting.

I think these developments could allow it to provide more services to existing customers while competing for a wider range of healthcare contracts.

Foolish takeaway

I think Pro Medicus remains one of the strongest long-term growth opportunities on the ASX.

Today’s contract is another positive development, but I am much more interested in how much larger its business could become over the next decade.

With plenty of room to expand in medical imaging and a growing range of products, I would be happy buying Pro Medicus shares with a long-term view.

The post Should I buy Pro Medicus shares after its big news? appeared first on The Motley Fool Australia.

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