Lynas Rare Earths Ltd (ASX: LYC) shares are rising on Tuesday morning.

At the time of writing, the rare earths producer’s shares are up 1% to $15.17.

Why are Lynas Rare Earths shares rising?

Investors have been buying the company’s shares today after a rally in rare earths stocks offset some bad news.

With respect to the latter, Lynas has revealed that significant power supply disruptions are affecting the Kalgoorlie Rare Earths Processing Facility.

The company notes that its Kalgoorlie Rare Earths Processing Facility is supplied with power through Western Power’s Eastern Goldfields Load Permissive Scheme (ELPS).

It points out that it signed on to ELPS in 2021 on the basis that, as stated in Western Power’s public announcement:

ELPS customers are ensured access to cleaner power in lieu of costly, emissions-intensive diesel generators.

Indicative reliability levels were consistent with the requirements to run the Kalgoorlie facility safely and efficiently. However, during 2025, the company advised that there has been a significant increase in power supply disruptions at the Kalgoorlie Rare Earths Processing Facility.

So much so, that in November its outage frequency and duration have been at a level that has led to significant lost production of Mixed Rare Earth Carbonate (MREC).

What’s the impact?

Lynas revealed that the production of finished goods at its Malaysian facility will be affected by these outages.

It advised that while the Kalgoorlie team is working hard to recover the lost production, it cannot reach the Malaysian facility in time to be processed to finished goods within the quarter.

Furthermore, the shortfall in MREC feedstock cannot be mitigated by increased production in Malaysia as the Malaysian kilns are shut down for scheduled major maintenance.

Lynas is working constructively with the Western Australian Government and Western Power to identify causes of recent outages and options to improve power availability to the Lynas plant.

However, while these are being progressed on an urgent basis, even on a best-case scenario, management concedes that there will not be enough time to improve this quarter’s forecast production.

In addition, given that its power supply remains unpredictable, Lynas stated that is not possible to quantify the exact production shortfall. Though, at present, it estimates there may be a shortfall equivalent to one month’s production during this quarter.

One positive, though, is that Lynas will still produce sufficient finished product to meet key customer needs.

Lynas is now urgently assessing off-grid power solutions in the hope that lost production can be recovered within the financial year.

The post What’s going on with Lynas Rare Earths shares today? 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 recommended Lynas Rare Earths Ltd. 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.

Web Travel Group Ltd (ASX: WEB) shares are jumping on Tuesday morning.

At the time of writing, the ASX 200 stock is up 14% to $4.55.

This follows the release of the WebBeds owner’s half year results before the market open.

ASX 200 stock jumps on results day

For the six months ended 30 September, Web Travel reported an 18% jump in bookings to 5.1 million and a 22% lift in total transaction value (TTV) to a record of $3.17 billion. Management notes that its top three regions reported significantly above market growth, particularly the Americas.

Another positive was its improved TTV margin. The ASX 200 stock recorded a first half TTV margin above guidance at 6.5%. This means it is on track to be at least 6.5% for FY 2026.

This ultimately led to Web Travel posting a 20% increase in revenue to $204.6 million and a 17% jump in underlying EBITDA to a record of $81.7 million.

On the bottom line, the ASX 200 stock posted underlying EBIT of $66.2 million and underlying net profit after tax of $48.6 million. This was up 10% and down 7.4%, respectively, over the prior corresponding period.

Cash flow from operations was $120.5 million during the period, leaving it with a closing cash balance of $481.1 million. However, no dividend was declared for the first half of FY 2026.

Management commentary

Web Travel’s managing director, John Guscic, was pleased with the half. He said:

WebBeds continues to deliver world class TTV growth. We reported $3.2 billion TTV for the first 6 months of the financial year, 22% more than the same period last year, driven by the significant above-market growth coming through in our top 3 regions, particularly the Americas. A range of initiatives have helped optimise TTV margins which were 6.5% for the period, ahead of our guidance. TTV margins remain on track to be at least 6.5% for FY26.

Outlook

The ASX 200 stock revealed that the second half has started strongly. Guscic said:

Trading for the first 7 weeks of 2H26 has been strong with TTV up 23% compared to the same period last year. We are on track to deliver record results with FY26 underlying EBITDA expected to be between $147 and $155 million.

The managing director also spoke positively about its medium term growth targets. He added:

This impressive growth is a reflection of our efforts and not macro-economic events. We delivered an incremental $580 million TTV compared to the same period last year, with improved TTV margins. WebBeds continues to win global share, which is amplifying the network effect and making us even more relevant to our hotel supply and travel buyer partners. The team’s unwavering focus on winning new clients, enhancing supply and geographic reach, and continuing to improve conversions is bringing us closer to our $10 billion TTV FY30 target.

The post Guess which ASX 200 stock is jumping 14% on record results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. 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 seems like every week there is a new ASX ETF hitting the market. 

These often become increasingly niche as ETF providers and investors seek to capitalise on themes or sectors that haven’t been combined into a single fund. 

On Monday, the team at GlobalX announced the newest fund: The Global X Japan TOPIX 100 ETF (J100). 

Why invest in Japan?

I covered last week that data from October shows there were record-breaking inflows in Japanese stocks in October.

Investors are looking to capitalise on normalising Japanese inflation, sweeping economic reform, and meaningful alignment with booming global sectors like  AI, EVs, and energy transition.

It might surprise Aussie investors to discover that in 2025, the TOPIX Index (major index for the Tokyo Stock Exchange) is outperforming the S&P 500 Index (SP: .INX) and the S&P/ASX 200 Index (ASX: XJO).

According to Global X, after years of stagnation, the perception is beginning to shift on Japanese stocks. 

For the first time in decades, Japan’s equity market is not only displaying signs of growth but also of transformation, as long-standing cultural and financial barriers give way to a more dynamic and shareholder-focused era.

The Global X Japan TOPIX 100 ETF (J100)

The Global X Japan TOPIX 100 ETF (J100) tracks the TOPIX 100 Total Return Index. This is a subset of the broader TOPIX (Tokyo Stock Price Index). It represents the 100 largest and most liquid companies on the Tokyo Stock Exchange.

Essentially, it provides exposure to Japan’s largest and most established companies. This spans across sectors such as technology, industrials, consumer goods, and finance. 

At the core of this fund is the aim to harness the tailwinds associated with Japan’s structural shift away from decades of deflation toward a more normalised inflation environment.

According to Global X, a return to normalised inflation has far-reaching benefits for Japan’s economy. 

Moderate price growth encourages firms to (or unions to demand) raise wages, which in turn supports consumption and domestic demand. 

For corporates, this environment often translates into stronger revenue growth, which in turn can be monetised through healthier margins, leading to rising earnings.

This shift could be especially significant in Japan, where households remain among the most under-invested globally, holding around 51% of their assets in cash and deposits and just 18% in equities or investment trusts, compared with 12% and 55% respectively in the United States.

Diving deeper 

The J100 ASX ETF includes 100 holdings. 

Its largest weighting by sector is to: 

• Industrials (25.9%) 
• Consumer Discretionary (17.4%) 
• Financials (17.3%) 

By individual company: 

• Toyota Motor Corp (5.1%)
• Sony Group Corp (4.5%)
• Mitsubishi UFJ Financial Group Inc (4.5%)

The fund will likely compete with similar funds: 

• iShares MSCI Japan ETF (ASX: IJP) – The fund is designed to measure the performance of Japanese large & mid-capitalisation companies.
• BetaShares Japan ETF – Currency Hedged (ASX: HJPN) – The fund aims to track the performance of an index (before fees and expenses) that provides diversified exposure to the largest globally competitive Japanese companies, hedged into Australian dollars.

The post Meet the newest ASX ETF from GlobalX appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Consumer discretionary stocks are susceptible to rise and fall with economic cycles. 

Household spending can be linked to metrics like inflation, interest rates and CPI. 

When times are tough, we’re less likely to splurge on non-essential items like electronics and jewellery. 

Two ASX consumer discretionary stocks that offer these kinds of products are Lovisa Holdings Limited (ASX: LOV) and Kogan.Com Limited (ASX: KGN). 

The team at Bell Potter has just released fresh guidance on both these consumer discretionary stocks. 

Here’s the latest analysis from Bell Potter. 

Lovisa Holdings Limited (ASX: LOV)

Lovisa offers affordable, on-trend fashion jewellery and other accessories. 

Its vertically integrated business model involves developing, designing, sourcing, and merchandising 100% of its Lovisa-branded products.

Its stock price has experienced plenty of volatility this year, and at the time of writing, is trading at $30.68 per share. 

However, as the chart shows below, shares have been as high as $43.00 and as low as $21 in 2025. 

The company held its AGM last week. 

Following the AGM, Bell Potter maintained its hold recommendation on this ASX consumer discretionary stock. 

However, the broker reduced its price target to $33.50 (from $42.00 previously). 

Bell Potter reduced its price target on the company primarily because the latest trading update showed softer-than-expected comparable sales and a need to temper earlier, more optimistic assumptions, which flowed through to lower earnings forecasts and a lower valuation multiple.

Our Price Target decreases by ~20% to $33.50 (prev $42.00). Along with our earnings revisions, we also reduce our target P/E multiple to ~32x on FY27e (prev. 38x on FY27e) to reflect the de-rating in LOV/broader peer group and our relative expectations for growth within our overall coverage.

Kogan.Com Limited (ASX: KGN)

This consumer discretionary stock is an Australian pure-play online retailer. 

The company primarily caters to value-driven consumers through its private label products, spanning multiple categories including consumer electronics, appliances, homewares, hardware and toys.

Kogan’s share price has dropped 50% year to date. 

Following its AGM last week, Bell Potter maintained its hold rating but reduced its price target to $3.30 (from $4.30 previously). 

The broker said EBITDA for the period was at the lower end of the 6-9% EBITDA margin guidance for FY26.

It also noted that while the company does showcase some stability, it is focused on the Nov-Dec period for the Australian business, as challenging comps are being tested. A path to recovery is expected in the NZ business in 2H thereafter.

We continue to view EBITDA margins as highly sensitive to the investment into sustaining the GS/customer/subscriber growth. At our revised PT of $3.30 the total expected return is <15% so we maintain our HOLD rating.

Based on the broker’s revised price target of $3.30, there is an estimated upside of 9.27% from Kogan’s closing price yesterday of $3.02. 

The post Lovisa vs Kogan – Which consumer discretionary stock does Bell Potter prefer? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 and Lovisa. The Motley Fool Australia has recommended Kogan.com and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Chrysos (ASX: C79) is an ASX industrials stock that has risen 67% year to date. 

However, it hit a bit of a speed bump yesterday, falling 8%. 

Last month, The Motley Fool’s Leigh Grant covered in depth how its unique and innovative product – PhotonAssay – is changing the way mining companies test ore. 

This kind of disruptive technology has seen its market capitalisation rapidly approach $1 billion and is quickly gaining investor attention. 

This could be an opportunity for investors to gain exposure to an innovative company at a slight discount.

What is Chrysos?

Chrysos combines science and software to create technology solutions for the global mining industry. 

Its flagship product is PhotonAssay. 

It can be used to detect a wide range of elements. However, it has proven particularly effective for assaying gold and is currently being rolled out across the gold mining industry.

PhotonAssay delivers faster, safer, more accurate, and environmentally friendly analysis of gold, silver, and complementary elements. 

The technology has rapidly displaced slower, more hazardous, and costly processes. It has quickly become an innovative and valuable mining industry solution.

AGM at a glance

Yesterday, the company held its 2025 AGM, and reiterated FY26 guidance of:

• FY26 Total Revenue range of $80m to $90m
• FY26 EBITDA range of $20m to $27m

Following the AGM, the team at Bell Potter upgraded this ASX industrials stock to a buy rating. This was along with an increased price target. 

It seems the broker believes Monday’s 8% decline in share price could be an opportunity for investors to get in at a discount. 

Here’s what the broker had to say. 

Industry adoption accelerating

In a report yesterday from Bell Potter, it highlighted the year-to-date (YTD) financial update (to 31 October 2025). 

According to the report, revenue for this ASX industrials stock was $28.9m, up 54% year over year (YoY). 

The broker also noted the company now has 41 deployed units, with recent deployments in Ontario and Norseman, two units currently being installed in Perth, two new lease agreements with ALS and Acrux Gold, and an MoU with Allied Gold for two additional units. 

Upcoming installations include C79’s first Newmont unit in Ghana, as well as additional units for Bureau Veritas in Chile, MSALABS in Canada, and Allied Gold in West Africa.

The company’s industry adoption has accelerated over the past year, driven by its new Master Services Agreement with Newmont and expanding relationships with major commercial labs. 

The exploration upcycle is expected to provide additional growth, supporting an EBITDA beat, and further accelerating adoption of PhotonAssay technology.

Buy recommendation for this ASX industrials stock

After previously having a hold rating on Chrysos shares, Bell Potter has upgraded the shares to a buy recommendation with an upgraded price target of $9.40. 

This ASX industrials stock closed yesterday at $8.04 each. 

With Bell Potter’s updated price target, the broker indicates an upside of 16.92%. 

Our C79 valuation is driven by a discounted cash flow model of the company’s expected PhotonAssayTM deployment and resulting sales, under a leasing model. We also recognise a corporate cost valuation allowance.

The post Should you buy the dip on this soaring ASX industrials stock? appeared first on The Motley Fool Australia.

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

Virgin Australia (ASX: VGN) and BHP Group (ASX: BHP) are two of the most recognisable Australian brands/shares. 

The team at Ord Minnett have provided fresh guidance on both.

Virgin Australia has been operating in Australia for many years. However, it recently returned to the ASX when it completed its long-awaited initial public offering (IPO) in June. 

After experiencing some volatility, its stock price is now essentially back where it started, closing yesterday at $2.96 each. 

With such a short span on the ASX, it can be difficult for investors to pinpoint fair value, despite its household name. 

However, the team at Ord Minnett have an optimistic view that Virgin shares can take off. 

Here’s the latest guidance out of the broker. 

Near-term confidence for Virgin

Ord Minnett said a key focus for Virgin will be how it manages the significantly higher jet fuel spreads.

Recent data shows average global jet fuel prices jumped circa 8% in the last two weeks of October alone. 

The refiners’ jet fuel crack spread – the price difference between crude oil and refined products – in October was up almost 40% on the crack spread in September.

‍However, a recent trading update from Virgin Australia gave Ord Minnett confidence that the near-term outlook is sound, given Virgin’s hedging program. The program incorporates the jet fuel spread. This means recent rising fuel prices will have little effect on FY26 earnings. 

Post FY26, Ord Minnett expects higher fuel costs will be mostly offset by management of the RASK metric. This could be a mix of higher ticket prices and reduced capacity.

Post the trading update, we have nudged our FY26 EPS estimate down 0.3%, while our FY27 and FY28 forecasts are cut by 2.8% and 3.1%, respectively, to incorporate the impact of fuel costs, which leads us to trim our target price to $4.00 from $4.10.

From yesterday’s closing price of $2.96, this updated price target of $4 indicates an impressive upside of 35.14%. 

Modest upside for BHP shares

Ord Minnett also sees value in BHP shares. 

The mining giant is currently navigating an appeal due to its involvement in the 2015 Fundao dam failure in Brazil at its Samarco project, which it owns in a joint venture with Brazilian company Vale. 

However, Ord Minnett noted trials that are not expected to be finalised before 2028 or 2029. Furthermore, any damages would also be mitigated by claims already paid out. 

Vale and BHP are nearly halfway through the US$32 billion settlement, leaving BHP’s remaining share to pay at circa US$9 billion.

Ord Minnett already incorporates a provision of US$6.1 billion for Samarco in our model, so we have made no changes to our earnings estimates or valuations post the UK court decision.

Despite all this, Ord Minnett has maintained its accumulate recommendation on BHP shares with a target price of $45.

Based on yesterday’s closing price, this indicates an upside of 10.78% for BHP shares. 

‍

The post What is Ord Minnetts’ view on Virgin Australia and BHP shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. 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) shares are experiencing a horrible year. Treasury Wine shares have been under constant pressure as investors digest softer sales and a procession of downgrades.

The global wine share is trading at $5.65 apiece at the time of writing. That sees Treasury Wine shares down 49.9% over 12 months and at levels that remain at 10-year lows.

Operational and macro headwinds

The fall is painful for a prestigious company that is known for premium wine labels such as Penfolds, 19 Crimes and Lindeman’s, which are sold in more than 70 countries around the world.

The slide of Treasury Wine shares reflects a mix of operational and macro headwinds. The sale of premium wines has cooled, and the cost of freight has increased.

The company’s board has also flagged distribution challenges in key markets, such as the US. Another strategically important market, China, has recovered more slowly than expected despite the easing of trade hurdles in 2024. Trade and geopolitical shifts, particularly in the US, add to Treasury Wine’s problems.  

Downgrades and a paused buyback program

Those setbacks have led to earnings downgrades, the withdrawal of formal earnings guidance from the company and a pause to the company’s $200 million buyback program.

These moves have shaken investor confidence, and as a result, the share price has suffered significantly. The 40 cents per share in partly franked dividends that Treasury Wine paid over the full year will only compensate its shareholders modestly for their share price losses. At Monday’s closing price, Treasury Wine shares trade on a dividend yield of 7%.

Trimmed price targets

Analysts have responded with varying degrees of caution, and recent broker notes show some downgrades. However, most analysts still see Treasury Wine as positive, with a ‘hold’ or ‘buy’ recommendation. Some brokers have trimmed their price targets, though, and they now span a wide range, from $5.50 at the low end to above $10 at the top.

Ord Minnett is one broker that recently slashed its valuation for the Treasury Wine shares. Analysts of the broker lowered the 12-month price target for the wine stock from $8.00 to $6.50, following a review of its model as the new CEO takes over the reins at Treasury Wine. This suggests a 15% upside at the current share price.

The broker explains:

Our changes are driven by the following factors: (i) excessive inventory in its Americas business, which will need to be cleared – we forecast revenue declines of $150 million at a margin of 55% as stock is depleted from its sales channels; (ii) weak demand for its Penfold products in China during the mid-autumn festival season; and (iii) removal of earn-out payments on its acquisition of Daou Vineyards in 2023.

The post Are Treasury Wine shares a buy, now they are at 10-year lows? appeared first on The Motley Fool Australia.

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

Navigator Global Investments (ASX: NGI) is an ASX financials stock that has already risen more than 75% in 2025. 

Navigator Global Investments is a diversified alternative asset management company that partners with a variety of institutional asset managers operating across different investment styles, product types, and client bases.

It has around US$73 billion in assets under management and is currently partnered with 11 businesses.

Yesterday, it closed trading at $2.94, and is now up 24.58% in just the last month. 

In a fresh note out of Ord Minnett, it appears the broker sees plenty more upside in this ASX financials stock following Navigator Global Investments’ recent investor day. 

Ord Minnett said the recent investor day underscored the immense growth opportunity that the asset manager has in front of it.

The broker has a buy rating on the stock and has just raised its target price to $3.50 from $2.80.

Let’s see what was behind the upgrade. 

Highlights from investor day 

The team at Navigator Global Investments reiterated that in FY25, ownership-adjusted AUM increased to US$27.7 billion, up 6% from the previous year.

The team at Ord Minnett also pointed out principals from partner firms referred glowingly to the company’s assorted value-add levers, in particular, the Blue Owl Business Services Platform. 

Blue Owl’s GP Strategic Capital platform offers minority equity and financing solutions to private capital managers.

Ord Minnett also pointed to organic growth and targeted acquisitions as key drivers of future growth. 

The combination of organic growth, supplemented by targeted US$80 million ($125 million) of strategic acquisitions from a large opportunity set, sees the business well-placed to achieve its 2030 target of a doubling of operating earnings (EBITDA) from 2025.

Other noted highlights included: 

• A strong endorsement of Navigator’s offering from the principals of the 1315 Healthcare and Waterfall AM fund managers.
• Because Navigator’s partners are highly diversified, aggregated performance fees are more consistent, and along with the high margins of alternative managers, this generates steady cash flows that investors are only just starting to value.
• The size of Navigator’s acquisition target set, i.e. firms in the US$1–US$10 billion range, is significant at more than 8,000.

Ultimately, this diversification can help smooth earnings, and paired with high margins, creates steady cash flows that Ord Minnett believes the market hasn’t fully valued until now.

This has positively influenced Ord Minnett’s view of the company moving forward. 

Earnings forecasts and target price adjusted 

Following the investor day, Ord Minnett bumped up its earnings forecasts and price target for this ASX financials stock. 

We made minor adjustments to our earnings forecasts post the investor day, notably our EBITDA estimate for FY26 has increased by 3% to $106.5m, after adjusting our performance fee estimates for Lighthouse Partners.

Based on the new price target from Ord Minnett, the broker now sees an upside of 19.05% for this financials stock. 

The post Top broker says this skyrocketing financials stock is still a buy! appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

ASX shares that offer a combination of growth and dividends can be an appealing option because they allow us to benefit from wealth-building share price growth and a pleasing passive income.

I’d usually write about a few particular businesses for an article like this, which I recently invested in. But other names can also tick the box, which I’ll highlight below.

Coincidentally, all three names are from the retail sector, which typically means a relatively low price/earnings (P/E) ratio and therefore a pleasing dividend yield. Let’s get into it.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is one of Australia’s leading electronic retailers, selling a wide variety of items including phones, TVs, tablets, laptops, smart wearables (such as watches and rings), headphones, video games, and more.

The country’s ongoing (and seemingly growing) love for electronic products is helping drive sales growth. In the first quarter of FY26, JB Hi-Fi Australia sales grew 6%, JB Hi-Fi New Zealand sales rose 39.3%, The Good Guys sales rose 2.5% and E&S sales increased 4.1%.

The ASX share has impressed by focusing on efficient costs and achieving a high level of sales for its store size.

Broker UBS predicts the company’s net profit could rise to $497 million and that the dividend per share could be solid at $3.40. That means it’s trading at 21x FY26’s estimated earnings with a potential grossed-up dividend yield of 5%, including franking credits.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer that sells affordable jewellery to younger shoppers. It has stores across dozens of countries, giving it a large addressable market to expand into by opening more stores.

The recent trading update from the ASX share included solid numbers, in my opinion. For the first 20 weeks of FY26, total sales were up 26.2% year over year, with global comparable store sales growth of 3.5%. This is a fast rate of rising profit, which is supportive for long-term share price growth and dividends, in my view.

With a steadily climbing store count and the scale advantages that come with it, I believe the company is well-positioned to deliver long-term growth and dividends.

The forecast from analysts at UBS suggests the business is valued at 33x FY26’s estimated earnings, and the dividend per share could be hiked to 88 cents per share, translating into a dividend yield of almost 3%.

Premier Investments Ltd (ASX: PMV)

The third ASX share I want to tell you about is the owner of Peter Alexander, Smiggle, and a chunk of Breville Group Ltd (ASX: BRG) shares.

Smiggle has struggled in recent times following the onset of COVID-19, though its sales decline has shown signs of improving. I’m much more excited about the Peter Alexander business, which is showing a good sales performance in Australia, benefiting from new and enlarged stores.

In FY25, Peter Alexander sales grew by 7.7%, with 9.2% growth in the second half of FY25. I’m expecting ongoing growth in FY26, as well as a useful boost from the Peter Alexander expansion in the UK, with an initial focus on London.

According to the forecast from UBS, the Premier Investments share price is valued at 15x FY26’s estimated earnings with a possible grossed-up dividend yield of 6.2%, including franking credits.

The post 3 ASX shares that I think are buys for both growth and dividends appeared first on The Motley Fool Australia.

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