Lovisa vs Temple & Webster shares: Which is the better growth stock?

Everyday investors are spoiled for choice on the ASX when it comes to high-growth retailers, but Lovisa Holdings Ltd (ASX: LOV) and Temple & Webster Group Ltd (ASX: TPW) stand out. If you’re hunting a growth stock, you might find yourself weighing Lovisa’s sparkly global expansion against Temple & Webster’s home décor disruption. So, which one looks more promising as a buy right now? Here’s how I see the Lovisa vs Temple & Webster shares match-up.

The case for Lovisa Holdings

Lovisa is a fast-growing fashion jewellery retailer, founded in Sydney in 2010 and now boasting over 1,136 stores across more than 50 countries. Its vertically integrated model lets Lovisa design, source, and sell its own branded jewellery affordably through brick-and-mortar stores and seven online sites, capturing trend-focused consumers around the world.

Notably, Lovisa sits at a market cap of $2.51 billion and generated earnings per share (EPS) of $0.792. The company’s P/E ratio of 26.50 feels moderate for a growth-oriented retailer, and it currently offers a fully franked dividend yield of 3.5%. I also noticed a decent earnings yield of 3.77% and a history of paying increasing dividends, as recent years’ totals outpace the past.

The case for Temple & Webster Group

Temple & Webster is an online-only retailer, best known for its massive range of over 200,000 furniture and homewares products. It started in 2011 and now boasts more than a million Aussie subscribers, as well as the private label Milan Direct. That focus on e-commerce gives TPW a different growth path – fewer overheads, nimble operations, and a highly scalable reach across Australia.

Temple & Webster’s fundamentals, however, highlight its much smaller size: a market cap of $510.47 million. Its EPS is $0.064 – well below Lovisa’s – and although it’s profitable, its P/E ratio is a sky-high 128.82. TPW does not pay a dividend, preferring to invest every spare dollar into growth and market share.

Valuation comparison

Here’s how three key stats line up side-by-side:

Metric	Lovisa	Temple & Webster
Market Cap	$2.51 billion	$510.47 million
P/E Ratio	26.50	128.82
Dividend Yield	3.50%	0.00%
Earnings per Share	0.792	0.064

Lovisa is clearly the larger, more established company and is valued much lower on a P/E basis. Its dividend yield is attractive – and half-franked – while Temple & Webster is growth-oriented and reinvests instead of paying dividends. The glaring difference is the P/E ratio; TPW trades at nearly five times Lovisa’s multiple, which suggests either big future growth is anticipated or the shares are stretched.

Recent share price performance

Based on the most recent data (as at mid-September 2026), both stocks have been under the pump this year. Lovisa is down 20.16% year-to-date while Temple & Webster has plunged 67.32%. TPW’s 2026 share price history shows some big up and down swings – with sharp drops (like -17.82% in one day) and a lower base around the $4–5 mark.

Lovisa has also seen volatility in the past month but the daily moves have generally been in the -4% to +13% range, whereas Temple & Webster has seen several massive one-day falls and occasional bounces. Overall, recent momentum points to Lovisa holding value much better in tough conditions.

Which is the better buy?

If I’m making the call between Lovisa and Temple & Webster as a growth stock, my pick would be Lovisa.

Here’s why: Lovisa has a genuine global footprint, solid profitability, ongoing store rollouts, and a P/E that actually makes sense for a growth retailer. Plus, you get a fully-franked dividend of 3.5% as a sweetener. By contrast, Temple & Webster might have serious digital appeal, but its earnings are tiny, the P/E is sky-high, and the 67% share price drop makes me nervous about its near-term growth story. Unless Temple & Webster’s next era of growth comes through – which could reward risk-tolerant punters – the numbers simply stack up for Lovisa.

So, if you’re hungry for a top ASX growth stock right now, I’d lean toward Lovisa.

The post Lovisa vs Temple & Webster: Which ASX retailer is the better growth stock today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Temple & Webster Group. The Motley Fool Australia has recommended Lovisa and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial 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.

Australian shares are still under pressure overall this week from high oil prices, inflation concerns, and expectations of an impending interest rate hike.

Let’s find out how major S&P/ASX 200 Index (ASX: XJO) shares like AGL Energy Ltd (ASX: AGL), Telstra Group Ltd (ASX: TLS), and Zip Co Ltd (ASX: ZIP) are tracking, and which ones brokers rate as a buy, sell, and a hold.

Buy Zip shares

It’s been a volatile ride for Zip shares over the past 12 months, with its shares swinging between a low of $1.38 in March and a high of $4.93 in January.

Most recently, the sell-off picked up pace after the company posted its FY26 results late last month. Zip posted a record result, including a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26. 

The announcement was initially well received by investors, who rushed to snap up the BNPL provider’s shares. But gains were quickly reversed, and the shares are now down around 28% since the announcement.

While the result itself was positive, many investors were underwhelmed by the company’s outlook for future growth.

Zip said it is aiming to deliver a group cash EBTDA of $340 million in FY27, up 26% on FY26, and target an operating margin of 20% to 22%. That’s much lower than the 57.9% cash EBTDA growth the company experienced in FY26.

But it looks like brokers are confident that the shares can keep climbing higher over the next 12 months. Market Index data shows all brokers have a strong buy rating on the ASX tech shares. And the $3.95 average target price implies an upside of around 79% at the time of writing.

Sell AGL Energy shares

AGL shares rallied higher in mid-August after the ASX energy stock posted an impressive FY26 result. 

The energy supplier announced a 2% increase in both its underlying EBITDA and underlying NPAT for FY26. It also confirmed a 60% increase in its operating free cash flow. The company said that it has grown its customer base, invested $600 million in firming projects, achieved major milestones – including two long-term power purchase agreements – and completed divestment of its stake in Tilt Renewables.

For FY27, AGL is guiding underlying EBITDA between $1.9 to $2.2 billion and underlying NPAT between $470 to $670 million.

But quickly after the share price spike, many investors rushed to take their gains off the table. 

At the time of writing, the shares are down around 5% over the past month, to $8.33 a piece. AGL shares are now down around 11% for the year to date and 4% lower than a year ago.

There hasn’t been any price-sensitive news out of AGL since its results announcement, so it looks like the latest sell-off is led by lower investor sentiment.

It looks like there are concerns that the company’s earnings recovery is taking longer than expected. 

At the same time, softer power-price expectations, driven by a surge in renewable energy and lower wholesale costs, are expected to put electricity companies like AGL under pressure.

Market Index data shows the majority of brokers have a sell rating on AGL shares. However, after the latest share price decline, the $9.70 target price implies a potential 16% upside.

Hold Telstra shares

Telstra shares have rebounded around 7% from an annual low in late August. The ASX telco shares are now around 0.2% higher year to date but roughly 1% lower than 12 months ago.

The shares tumbled after the telco posted its FY26 results mid-month, with revenue down 0.8% and underlying earnings up 4.4%. However, not long after, investors swooped back in to snap them up at a lower valuation.

As a classic defensive business, Telstra shares are also likely benefiting from a recent flight to security amid renewed geopolitical volatility and inflation concerns.

Brokers aren’t convinced that there is much more room for growth going forward. Market Index data shows the majority have a hold rating on Telstra shares. But the $5.01 average target price implies an upside of around 3% at the time of writing.

The post Buy, hold, sell: AGL Energy, Telstra, Zip shares 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from Global X has shed light on the tricky market conditions facing investors today. Right now, investors are navigating high valuations and soft expectations in the Australian market. 

Marc Jocum, Senior ETF Strategist at Global X ETFs Australia, reinforced that investors are facing a challenging environment. 

With Australian equities trading near record highs but earnings expectations continuing to soften, as well as economic headwinds, investors may face a more challenging environment. In this backdrop, covered call strategies can offer an alternative way to participate in Australian equities while generating an additional source of income and potentially improving the risk-adjusted profile of a portfolio.

Economic headwinds

According to the report, the August reporting season was one of the most volatile on record. Almost half of the S&P/ASX 200 Index (ASX: XJO) companies moved more than 5% on their earnings day. 

While the ASX 200 reached record highs, the underlying earnings picture was less encouraging. 

Company guidance generally disappointed relative to consensus. Meanwhile, forward earnings per share (EPS) growth expectations have continued to be revised lower.

Against this backdrop, a subdued housing market, persistent inflation, fiscal uncertainty and the prospect of further RBA rate hikes could create additional headwinds for Australian equities. We don’t believe this is a reason to sell Australia. Rather, it highlights the potential value of changing the way investors access the market.

The team at Global X emphasised that a covered call strategy can be a viable option in this economic environment. 

What is a covered call strategy?

Covered call writing is an investment strategy where investors buy a stock, or a group of stocks, and sell call options on them. 

Selling call options on stocks investors already own generates income, without facing riskier margin calls. 

However, it requires investors to forego upside – as a covered call portfolio can be “called away” when markets move higher.

According to Global X, covered call ETFs have become an established part of the income market overseas. Australia appears to be following a similar trajectory. 

There is now close to $5 billion invested in covered call strategies in Australia. This is almost 10 times the level of five years ago.

A covered call strategy provides exposure to a broad basket of shares while systematically selling call options to generate additional income. The trade-off is that some upside is forgone when markets rise strongly, but the option premiums received can provide an additional return stream and a degree of downside cushioning when markets are flat or weaker.

Global X S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD)

For investors looking to utilise this strategy, this ASX ETF could be an option to consider. 

The fund holds the constituents of the ASX 200 Index while selling at-the-money call options on the same index on a quarterly basis. 

It seeks to generate higher income by owning the ASX 200 and systematically selling at-the-money covered call options over the index. 

The strategy currently has a 9.2% trailing 12-month yield (as of August 2026), with option premiums providing an additional source of income alongside dividends and franking credits from the underlying Australian equities.

Importantly, the strategy is not simply about maximising yield. The option overlay can also alter the risk and return characteristics of the underlying equity exposure, historically resulting in lower volatility and a smoother return profile. In 2026, AYLD has outperformed the broader Australian share market by more than 2% to date with less bumps along the way.

The post With high valuations and pesky headwinds, this covered call ASX ETF could be a timely investment 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.