Many full-time working Australians have a great opportunity to become wealthier than some may think possible. Becoming a millionaire is not easy, but compounding should never be underestimated.

By regularly saving and putting money to work, investors can end up with a much larger pot of money compared to how much they put in.

Just having money in a high interest savings account can make a big difference.

Putting $100 per month under the mattress for ten years would be $12,000. According to the Moneysmart compound interest calculator, if the money earned a 5% interest rate, it’d be just over $15,000 – an extra $3,000, or an extra 25% in percentage terms!

That’s just putting the money into a bank account.

What about if the money had been invested in the share market and achieved the ultra-long-term return of 10% per year? That same $100 per month for 10 years would turn into $19,125.

That’s not $1 million though.

How someone on a $70,000 salary can become a millionaire

The cost of living certainly makes it harder to save when the essentials are more expensive. I won’t suggest that someone earning $70,000 will have significant room to invest each month, though that’s certainly possible for someone in a dual income household.

What if we assume that someone could save $1,000 per month and it earned an average of 10% per year over the long-term. Remember, there could be a decline in some years – that’s why it’s an average return.

In that scenario, an investor would have $191,000 after 10 years, $687,000 after 20 years and $1.06 million after 24 years. The last few years see significant progress because of compounding – if $900,000 grows by 10% that’s a $90,000 increase.

But, perhaps most importantly towards wealth-building is superannuation. The tax-efficient, mandatory system for retirement savings. Someone on an annual salary would contribute just under $5,000 (after the tax on the contributions) to their superannuation fund.

Adding in the superannuation would help shave a few years off reaching millionaire status.

If that Australian were just relying on mandatory superannuation contributions alone, and assuming they invest in an investment option (such as shares) that could return an average of around 10% per year, they’d get there in 32 years. Investment returns (after tax) will play an important role in how quickly that grows.

In my view, the future looks very bright for Aussies who regularly contribute money towards their wealth and invest in long-term, compounding options. Ideas like VanEck MSCI International Quality ETF (ASX: QUAL), Vanguard MSCI Index International Shares ETF (ASX: VGS) and excellent ASX growth shares are some of the names I look at to invest in for long-term returns.

The post How to become a millionaire on a $70,000 salary appeared first on The Motley Fool Australia.

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• VGS vs IVV: Which ASX ETF is better?

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality 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.

After an incredible 2024 and a decent 2025, Coles Group Ltd (ASX: COL) shares are having a bit of a rough 2026.

At the time of writing, this ASX 200 consumer staples stock is trading at $21.25 a share. That puts the company 0.42% below where it started the year, and down almost 8% from where Coles was at the end of April.

That’s a far cry from the 17% or so gain Coles enjoyed over 2024, and the approximate 12% return the grocer delivered last year. At least so far.

So does this mean Coles is undervalued at the current price of $21.25? Or is the company just descending back to the mean it has spent the past two years drifting away from? Today, let’s talk about whether I’d buy Coles shares at $21.25 each.

Is Coles a buy at $21.25 a share?

Let’s start with some numbers. At $21.25, Coles shares are trading on a price-to-earnings (P/E) ratio of 28.1. That means you are paying about $28.10 for every $1 of earnings Coles brought in over the past 12 months.

That appears quite expensive for an established, mature company like Coles, which sells consumer staples and is growing at a slow, steady pace. To illustrate, Coles is about as expensive as Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Microsoft Corp (NASDAQ: MSFT), and more expensive than Meta Platforms Inc (NASDAQ: META).

All three of these American tech titans arguably have far more exciting growth runways ahead of them compared to Coles. That indicates Coles remains a pricey and unappealing investment at current levels.

But let’s see what kind of numbers the company has been posting.

At the start of this month, Coles posted its latest quarterly trading update. This revealed that the company had enjoyed revenue growth of 3.1% to $10.7 billion over the three months to 39 March 2026. That’s comparable to the 3.6% sales growth the company posted for its full 2025 financial year last August. That year saw Coles bring in a net profit after tax (NPAT) of $1.08 billion, up 2.4% from FY 2024.

These are all respectable numbers. However, they don’t justify an earnings multiple of 28 in my view. That implies growth will pick up substantially from these single-digit figures Coles has been recording of late. I don’t see a realistic path to that occurring.

As such, I don’t see many reasons to buy Coles shares at $21.25 each. Sure, income investors might appreciate Coles’ fully-franked dividend yield. But even that is sitting at an uninspiring 3.44% right now. All in all, I think there are better opportunities elsewhere for most ASX investors today.

The post Would I buy Coles shares at $21.25 each? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Meta Platforms, and Microsoft. The Motley Fool Australia has recommended Alphabet, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A recent report has highlighted the broader economic conditions that are signalling we might be back in a value market. 

Value investing is an investment philosophy built on the belief that markets are not always efficient in the short term. However they tend to recognise true worth over time.

Why chase value?

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth based on their underlying financial performance, assets, and long-term earning potential. 

This “true worth” is known as intrinsic value.

Rather than chasing trends or momentum, value investors deliberately look for situations where the market has overreacted. This can drive a stock price down below what the business fundamentals justify. 

These mispricings are treated as opportunities rather than risks.

The strategy is then to hold these undervalued assets patiently, waiting for the gap between market price and intrinsic value to close. When that happens, the share price “corrects” upward, and the investor realises a gain.

In essence, value investing is less about predicting the next market move and more about buying solid businesses at discounted prices and allowing time for market perception to catch up with economic reality.

Why value investing is back 

There are several signs that suggest we may be in the early stages of a value-driven market environment.

Inflation could remain elevated due to geopolitical tensions and high global debt, with oil prices still significantly above levels from six months ago. Historically, rising commodity prices have often signalled sustained inflation.

At the same time, value equities look relatively attractive, trading near long-term averages and at multi-year lows versus broader global equities, suggesting room for upside if conditions continue to support value.

Three ASX ETFs to target value

With these factors pointing towards a value market, there are several ASX ETFs investors may choose to target. 

Firstly, the BetaShares Ftse Rafi Australia 200 ETF (ASX: QOZ). 

This fund tracks the ASX 200, however they are measured by fundamental size rather than market cap.

This helps tilt the fund toward cheaper Australian companies based on sales, cash flow, dividends, and book value. It could be a strong fit if you want Australian large-cap value exposure. 

Turning our attention to international options, another fund to consider is Vanguard Global Value Equity Active ETF (ASX: VVLU). 

This fund seeks to provide long term capital appreciation through an active management approach that invests in global equity securities demonstrating value characteristics.

Finally, investors could also consider the VanEck MSCI International Value ETF (ASX: VLUE). 

It offers a portfolio of 250 international developed market large and mid-cap companies, with high value scores. 

The post We’re back in a value market: Here’s 3 ASX ETFs to target appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Ftse Rafi Australia 200 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 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.

Online retail has been a brutal place to operate over the past two years.

Cost of living pressures, subdued consumer confidence, and fierce competition have weighed on virtually every player in the sector.

Yet ASX retailer Kogan.com Ltd (ASX: KGN) just delivered a May business update that sent its shares surging 19% in a single session, and the numbers behind the jump deserve a closer look.

What the update showed

The May 2026 Business Update, covering the ten months ended 30 April 2026, was the strongest trading update the company has delivered in years.

Group Gross Sales rose 13.2% to $875.6 million, while Group Revenue grew 6.0% to $433.7 million.

Gross Profit climbed 11.1% to $177.9 million, and Group Adjusted EBITDA jumped 17.4% to $37.5 million.

Group Adjusted EBIT grew even more strongly, surging 25.4% to $26.9 million.

The Group Adjusted EBITDA margin reached 8.6%, placing Kogan towards the upper end of its FY2026 guidance range of 6% to 9%.

Active customers across the group grew 4% to 3.5 million.

The Mighty Ape turnaround is gaining traction

The most encouraging element of the update was not the Kogan.com core business, which has been performing well for several quarters, but the early signs of a recovery at Mighty Ape, the New Zealand subsidiary that had been a persistent drag on group earnings.

In the four months to 30 April 2026, Mighty Ape’s Gross Margin improved by 8.4 percentage points to 37.8%, a remarkable turnaround from the inventory-driven losses of the prior year.

Adjusted EBITDA losses at Mighty Ape fell 52.8% compared to the prior corresponding period, reflecting the success of the pivot toward a capital-light, higher-margin operating model.

CEO Ruslan Kogan said in the update:

Kogan.com continues to go from strength to strength, with strong growth across all key metrics. The early signs of the Mighty Ape turnaround are encouraging and we are focused on continuing to drive profitable growth across the group.

What Bell Potter thinks

Bell Potter rates Kogan shares as a buy with a price target of $5.50, describing the company as well-positioned to capture a growing share of Australia’s online retail market as digital penetration continues to rise.

The broker has noted that Kogan’s platform-based revenue streams, including Kogan FIRST memberships, Kogan Mobile, and the Kogan Marketplace, provide a more resilient and higher-margin earnings base than pure product sales.

Bell Potter also noted that these divisions are growing at a materially faster rate than the broader retail business.

The risks worth knowing

ASX retailer Kogan is not without its challenges.

The company remains loss-making on a reported basis due to non-cash items and the ongoing Mighty Ape integration costs.

Competition from global online retailers including Amazon Australia and Temu remains intense, and any deterioration in consumer spending would likely weigh on volumes quickly.

Foolish takeaway

Kogan.com’s May update confirmed that the business is firing on almost all cylinders, with core growth accelerating and the troubled Mighty Ape subsidiary showing its first real signs of recovery.

For investors who have been watching from the sidelines, today’s result makes the investment case harder to ignore than it has been in some time.

The post Why this ASX retailer just surged 19% on a strong May business update appeared first on The Motley Fool Australia.

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

Treasury Wine Estates Ltd (ASX: TWE) and Temple & Webster Group Ltd (ASX: TPW) have both been sold down heavily over the past 12 months. One is down around 45%, while the other has fallen around 75%.

That sort of weakness can be a warning sign, and investors should always ask why the market has lost confidence. 

But I also think both ASX 200 stocks now offer a more interesting risk/reward setup for patient investors.

Treasury Wine Estates shares

Treasury Wine Estates has been a frustrating investment over the past year are down 45% over the period.

The wine giant owns some valuable brands, including Penfolds, but the market has become more cautious on its outlook. Weakness in parts of the US wine market, inventory issues, and questions around execution have all weighed on confidence.

However, I still think this is a business worth watching closely.

Penfolds remains a powerful luxury wine brand, and I think that is the centrepiece of the long-term investment case. Luxury wine is not immune from economic pressure, but great brands can be difficult to replicate. They are built over many years through reputation, quality, distribution, scarcity, and consumer trust.

China is also important. Treasury Wine’s update last month pointed to strong Penfolds depletion growth in China over the Lunar New Year period, helped by demand for Bin 389 and Bin 407. That does not fix every issue overnight, but it suggests the China rebuild is still an important potential driver of future growth.

The company is also changing the way it operates, moving to a regional model designed to improve accountability and execution in each market. I do not think investors should give full credit for that until the benefits show up, but I like the intent. Treasury Wine needs sharper execution, more focused brand investment, and better consistency.

If management can stabilise the US, keep rebuilding China, and put more focus behind its best brands, I think Treasury Wine shares could recover strongly over the next few years.

Temple & Webster shares

Temple & Webster has had an even tougher time on the share market.

The online furniture and homewares retailer is down around 75% over the past 12 months. That is a brutal fall, and it shows how quickly investors can turn on a growth stock when consumer conditions deteriorate.

Furniture is a difficult category when households are under pressure. It is easy for shoppers to delay buying a new sofa, bed, or dining table when confidence is low.

But I think Temple & Webster still has a compelling long-term opportunity.

The company is trying to win share in a large furniture, homewares, and home improvement market. Its online model gives it a wide product range, while its drop-shipping approach can reduce the need to carry heavy inventory.

A recent trading update also showed management is willing to adjust quickly. The company has been rebalancing growth and profit, with changes to promotions, pricing, supplier support, marketing, and fixed cost growth. That is important because in a tough retail environment, flexibility can be valuable.

This is still a higher-risk stock. A weak consumer backdrop could last longer than expected as interest rates rise, competition is intense, and growth shares can remain out of favour when investors prefer safer earnings.

But a 75% fall changes the conversation. Temple & Webster does not need conditions to become perfect to deliver a better outcome from here. It needs to keep taking share, improve profitability, and show investors that the business can grow through a difficult cycle.

Foolish takeaway

Sharp share price falls usually come with a long list of concerns. That is why these opportunities are uncomfortable.

But investing is not only about buying businesses when everything looks clean. Sometimes the better setup appears when expectations have been cut, patience has disappeared, and the market is waiting for proof.

Treasury Wine and Temple & Webster still have work to do. I would not expect either recovery to move in a straight line. But with sentiment already so weak, I think both stocks are worth a closer look before the good news becomes more obvious.

The post 2 fallen ASX 200 stocks I think could recover strongly 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 positions in and has recommended Temple & Webster Group and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Flight Centre Travel Group Ltd (ASX: FLT) has had a brutal 2026.

The stock has fallen more than 33% year-to-date.

Today, the stock trades at a price that values one of the world’s largest travel management companies at less than six times its pre-pandemic earnings peak.

The market has made its verdict clear.

But markets are not always right, and the case for Flight Centre shares deserves a much closer look than the share price suggests.

Why the selling has been so aggressive

Three forces have converged on Flight Centre shares in 2026.

The first is the disruption in the Middle East.

Management confirmed this week that Q4 FY2026 performance has been heavily impacted by Middle East tensions, with the leisure business absorbing an estimated $10 million profit hit in April alone from increased refunds and cancellations.

May and June, historically the strongest months for leisure bookings, now face a similar headwind.

The second force is the Australian dollar.

The AUD has appreciated over the past twelve months against the US dollar.

For a company that earns a significant portion of its revenue in foreign currencies, this represents a material earnings headwind that flows directly through to reported profit.

The third is momentum.

Once a stock falls far enough and fast enough, forced selling from funds, stop-loss triggers, and retail panic can take prices well below what fundamentals support.

That appears to be happening to Flight Centre right now.

But the business itself keeps delivering

Strip away the noise and the underlying operational picture looks considerably more encouraging.

For the nine months to 31 March 2026, Flight Centre reported a 7.6% lift in total transaction value to $19.5 billion and a 9.7% rise in underlying profit before tax to $226.4 million.

The corporate division, which now accounts for more than half of group TTV, is the real engine of the business.

FCM Travel, Flight Centre’s corporate brand, delivered record TTV in FY2025 and has continued to grow in FY2026.

Corporate Traveler recorded more than 20% TTV growth in the United States.

Furthermore, management reaffirmed full-year FY2026 underlying profit before tax guidance of $315 million to $350 million at the Macquarie Conference in early May, a range that would represent a record result for the company.

That guidance was maintained despite the Middle East impact being known at the time, implying a strong expected second-half recovery in the corporate segment.

What Macquarie thinks about Flight Centre shares

Macquarie retains an outperform rating on Flight Centre shares with a price target of $17.95, implying upside of approximately 86% from today’s price.

The broker described the Q3 update as reflecting strong corporate performance and pointed to ongoing cost discipline and productivity investment as medium-term earnings drivers.

At current prices, Flight Centre trades on a forward price-to-earnings ratio that looks cheap relative to its own history and to global travel management peers.

Flight Centre ended FY2025 with $12.3 billion in corporate TTV, a record, and with 12,411 employees after a deliberate restructuring that redeployed savings into AI and digital capabilities.

The AI and technology angle

One part of the Flight Centre story that rarely gets attention is the investment the company has made in technology over the past three years.

Flight Centre has deployed AI-powered tools across its corporate travel management platform, reducing the cost per booking and improving margins as scale increases.

Its recent US$5 million investment in Blockskye, a blockchain-powered corporate travel payments platform, signals management is thinking about the next five years, not just the next quarter.

These investments do not show up in today’s profit, but they demonstrate management’s willingness to innovate and find new future growth avenues.

Foolish takeaway

Flight Centre shares have been sold down to a level that prices in a lot of bad news.

The Middle East impact is significant but likely temporary.

The corporate division is growing at record pace.

Macquarie sees significant upside.

And a company reaffirming profit guidance while its shares trade at six-year lows is not usually the setup that ends badly for patient investors.

The market is selling Flight Centre shares.

History suggests that is often exactly the wrong time to follow the crowd.

The post Everyone is selling Flight Centre shares. Here is why that could be a mistake. appeared first on The Motley Fool Australia.

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

Do you want to invest in ASX dividend shares, but don’t know where to start? Here are three of my top picks, all yielding 5.5% or more.

APA Group (ASX: APA)

Energy infrastructure giant, APA, owns and operates an extensive portfolio of gas, electricity, solar, and wind assets in Australia. 

APA is the major owner and operator of Australia’s gas distribution network, including pipelines, gas-fired power stations, and storage facilities, which transports more than half of Australia’s natural gas. 

The ASX dividend company is highly regarded for its strong and consistent dividend payments. It has been paying consistent distributions to shareholders for nearly 20 years, with revenue derived from long-term contracted infrastructure assets.  

APA paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per security. That translates to a forward dividend yield of around 5.7%, partially franked, at the time of writing.

Amcor Plc (ASX: AMC)

Packaging giant Amcor makes and dispenses packaging products used for food, beverages, healthcare, nutrition, beauty, wellness, and consumer goods.

Because Amcor supplies essential packaging, it is widely regarded as a consistent defensive stock. Even during economic downturns, people still need to buy groceries and healthcare goods. It’s this defensive nature that means the company can earn stable, predictable revenue, which then allows it to pay a consistent dividend. 

Amcor has been paying dividends for decades, with a history of payouts dating back to at least the mid-1990s. The company currently pays dividends to shareholders quarterly in March, June, September, and December.

Earlier this month, Amcor announced it would pay shareholders US$0.65 per security in June, unfranked. This is equivalent to A$0.91 cents per security for Australian shareholders.

The ASX dividend company is forecast to pay a dividend of $3.62 per share in FY26. Based on the current share price of $54.45, that would represent a forward dividend yield of around 6.7% at the time of writing.

The forecast dividend is then expected to ease to $3.23 per share in FY27 and rise slightly to $3.30 per share in FY28. 

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is an Australian youth fashion retailer that sells casual apparel, footwear, and accessories for men and women. The business targets 15 to 34-year-olds and sells its own private labels and other popular major brands such as Converse, Tommy Hilfiger, and Asics.

Retail companies are usually cyclical, but the company’s revenue growth is strong, and margins are impressive. Management has also continued expanding its presence and opening up more stores.

The company posted 14% growth in retail sales for the first half of FY26, across 43 weeks. For FY26, Universal expects group sales of $368 million to $375 million, compared with $333.3 million in FY25. Underlying EBITA is expected to land between $61.5 million and $64.5 million, up from $54.6 million last year. At the mid-point, that implies sales growth of 11.5% and underlying EBITA growth of 15.4%.

The solid figures mean Universal is able to pay a consistent dividend payment to shareholders. The company paid its first dividend to investors in 2021 and has maintained a consistent semi-annual dividend schedule ever since.

It most recently paid shareholders 26 cents per security in March, fully franked. Universal is forecast to pay a 36.3 cents per share dividend in FY26. Based on its current share price of $6.50, this equates to a dividend yield of around 5.6%, at the time of writing. 

The post 3 ASX dividend shares yielding 5.5% or more appeared first on The Motley Fool Australia.

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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 positions in and has recommended Amcor Plc and Apa Group. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.4% to 8,657.8 points.

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

ASX 200 to slip

The Australian share market looks set to edge lower on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower. In the United States, the Dow Jones fell 0.25%, but the S&P 500 rose 0.6% and the Nasdaq jumped 1.2%.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 3.4% to US$93.29 a barrel and the Brent crude oil price is up 3.3% to US$99.29 a barrel. This was driven by concerns over rising tensions between the US and Iran.

Goodman shares given buy rating

In response to the third-quarter update from Goodman Group (ASX: GMG), Bell Potter has retained its buy rating on the industrial property giant’s shares with a trimmed price target of $35.50. It said: “While we do have some question marks vis-à-vis leasing progress, extension of timelines and associated impact on earnings mix and booking of profits, the moat around the haves and have nots for scaled data centre players appears to be widening, recognising the scale and complexity of execution.”

Gold price softens

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.3% to US$4,510 an ounce. This reflects concerns that higher fuel prices will drive inflation and push interest rates higher.

Buy Life360 shares

Bell Potter thinks Life360 Inc. (ASX: 360) shares are undervalued. This morning, the broker has retained its buy rating on the location technology company’s shares with an improved price target of $33.00. It said: “Key focus for us is the Q2/H1 result in August and, firstly, a strong rebound in MAU growth but secondly, and more importantly, another quarter of strong paying circle growth where anything approaching or up around 200k again would be bullish in our view.”

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 positions in Goodman Group and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cochlear Ltd (ASX: COH) shares have been smashed in 2026 so far. At the time of writing, the shares have tumbled 63% for the year-to-date. 

The shares dropped under the $100-market to a decade-long low of just $90 a piece in late-April, and after a brief rebound to around $101, they’ve tumbled again.

At the time of writing, Cochlear shares are changing hands at $97.18 a piece.

What happened?

Cochlear shares crashed in April after the ASX healthcare company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand. 

The update made waves as one of the worst earnings downgrades in the company’s listed history. 

The company cut its net profit guidance for FY26 to $290-330 million, down significantly from previous guidance of $435-460 million. The market was shocked at the update.

Weaker conditions and softer demand issues included hospital capacity constraints, lower referral activity which weighed heavily on surgical volumes in developed markets, higher cost-of-living which sees households have a lower fund for discretionary spending, and some operational headwinds.

Geopolitical volatility also played a part. Escalating conflicts in the Middle East resulted in order cancellations and created risks for delivery delays to several countries in the region.

Not only that but the guidance downgrade came off the back of a softer-than-expected half-year result in February this year. 

And as if the headwinds weren’t strong enough, the company has also endured a sector-wide rotation away from ASX healthcare shares this year, as global volatility, a weaker US dollar, higher US tariffs, and increased labour costs prompted investors to sell up their holdings. 

Why I think Cochlear shares are a bargain right now

After such a sharp sell off, I think the shares are now oversold and at $100 each, are trading well below fair value.

Despite the earnings downgrade, Cochlear remains a strong, globally dominant business.

The company is a global leader for implantable hearing devices. It has strong brand recognition and the long-term outlook is intact.

Ageing populations and more awareness around treatment options is expected to support demand over time.

And while the company’s short-term earnings have changed, forecasts suggest that there will see a recovery over the next one or two years.

What do the experts think?

It looks like analysts consider the share price sell off to be an overreaction, with consensus of an upside ahead.

TradingView data shows that eight out of 18 analysts have a buy or strong buy rating on the shares. Another nine have a hold rating and one rates the stock as a strong sell.

The average $130.70 target price implies a 35% upside at the time of writing. Meanwhile, some expect the share price to rocket another 75% to $170 a piece.

The post At under $100 each, Cochlear shares look like a bargain: Here’s why appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy for the future of healthcare
• These ASX 200 shares have been smashed. I think patient investors should pay attention
• 2 super-cheap ASX 200 shares tipped to bounce back
• Why Cochlear’s brutal 2026 selloff could be creating a once-in-a-decade opportunity
• 5 ASX shares that could bounce back in the second half of 2026

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

There are big gains on the ASX and then there is Dateline Resources Ltd (ASX: DTR).

Over the past twelve months, the small-cap gold and rare earths explorer has risen approximately 210%.

This makes it one of the strongest performers among small-cap resources stocks on the ASX.

That gain reflects a combination of a surging gold price, a series of significant project milestones, and growing investor excitement about the company’s rare earths potential in California.

The story behind that run is interesting, but so are the risks that come with a stock that has moved this far, this fast.

What Dateline actually does

Dateline is an Australian-listed company focused on gold mining and rare earths exploration in California, United States.

Its flagship asset is the Colosseum Gold Mine, located in the Mojave Desert approximately 50 kilometres from the Nevada border.

The mine last operated in 1992, when the gold price was US$340 per ounce. At today’s gold price of approximately US$4,500 per ounce, the economics of restarting Colosseum look more promising, and that is the core of the investment thesis.

The bankable feasibility study delivered strong numbers, but the story has since become more complicated

The completion of Dateline’s Bankable Feasibility Study in April 2026 initially gave investors confidence, outlining an initial 10.4-year production plan averaging 75,400 ounces per year in the first six years, an NPV of US$785 million at a 5% discount rate, and an internal rate of return of 49.5%.

The company raised $50 million from institutional investors at $0.40 per share shortly before the BFS release, taking its cash position to approximately $96 million and giving it the funding base to advance construction.

However, the share price has since fallen approximately 70% from its peak of $0.675 as a significant legal complication has emerged.

The National Parks Conservation Association has brought Federal Court proceedings in the United States relating to the Colosseum project, with 252 of Dateline’s 969 claims now subject to those proceedings.

Dateline has stated that its permitted activities at Colosseum continue under its existing Plan of Operations, that it was not named as a respondent in the proceedings, and that it believes its valid existing rights are intact.

However, the legal uncertainty has materially weighed on investor confidence, and construction commencement, originally targeted for mid-2026, now carries a less certain timeline.

For investors evaluating the stock today, the BFS economics remain impressive on paper, but the legal situation is the dominant variable that will determine whether those projections ever translate into actual gold production.

The rare earths angle adds another dimension

Beyond gold, Dateline has identified the potential for rare earth mineralisation within the broader Colosseum project, with geological mapping confirming a genetic link to the operating Mountain Pass rare earth mine located just 10 kilometres to the south.

In February 2026, the company acquired the Music Valley heavy rare earth elements project in California, adding 57 claims covering 1,140 acres in Riverside County.

With rare earths now classified as critical minerals by the US government and Mountain Pass the only operating rare earth mine in America, the geological proximity is attracting significant investor attention.

This opportunity is not without its risks

A 210% gain in twelve months demands serious scrutiny.

Dateline shares have experienced extraordinary volatility, especially with the legal issues mentioned earlier.

Dateline has not yet produced a single ounce of gold or rare earths commercially.

The BFS projections depend on the gold price remaining elevated, construction proceeding on schedule, and the legal and regulatory environment remaining navigable.

None of those outcomes are guaranteed.

Foolish takeaway

Dateline Resources is not for the faint-hearted.

The share price reflects an extraordinary amount of optimism about a project that has not yet broken ground, and the legal proceedings add a layer of uncertainty that investors must weigh carefully.

For highly risk-tolerant investors who have done their own deep research on the project fundamentals and the regulatory situation, the Colosseum story has merit.

For everyone else, this is a stock best admired from a safe distance.

The post Why this ASX gold stock has surged more than 210% in the past year and what investors need to know appeared first on The Motley Fool Australia.

More reading

• Up 572% in a year, why is this ASX 300 gold stock rocketing again on Friday?
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today
• Up 588% in a year, why is this ASX 300 gold stock tumbling today?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.