The National Australia Bank Ltd (ASX: NAB) share price is trading around $38.48 on Monday.

For investors looking at the major banks, NAB offers a combination of earnings, dividends, and exposure to Australian business banking.

At this price, I think the shares deserve a closer look.

Why I like NAB

One of the main reasons I am positive on NAB is its strong position in business banking.

The bank has deep relationships with Australian small and medium-sized businesses, giving it exposure to lending, deposits, payments, and other financial services.

I like that because it gives NAB another avenue for growth alongside its large consumer banking operations.

Australian banking is still highly competitive, particularly in mortgages, and I would not expect earnings to race higher every year.

But NAB has a sizeable customer base, strong market positions, and a business banking franchise that I think can continue supporting earnings over the long term.

What does the valuation look like?

The next question is whether investors are paying a sensible price.

According to CommSec, consensus estimates are for earnings per share of $2.38 in FY26, increasing to $2.54 in FY27.

At $38.48, that puts NAB on a PE ratio of approximately 16 times forecast FY26 earnings and around 15 times FY27 earnings.

I would not describe that as bargain territory. But I also do not think the valuation is excessive for a major Australian bank with a strong franchise and the prospect of modest earnings growth.

If NAB delivers something close to current expectations, I think today’s price leaves room for reasonable capital growth over time.

The dividend remains a big attraction

For many investors, NAB is just as much an income stock as it is a capital growth investment.

That is an important part of the case for me.

CommSec’s consensus forecasts point to fully franked dividends of $1.70 per share in FY26 and $1.72 in FY27.

At the current share price, those payments would represent dividend yields of approximately 4.4% and 4.5%, respectively, before taking any potential benefit from franking credits into account.

I think that is a solid level of income from a business I would also be comfortable owning for the long term.

What would make me cautious?

NAB still faces the same pressures as the rest of the banking sector.

Competition for customers can put pressure on margins, while weaker economic conditions could increase bad debts and slow credit growth.

The shares also would not look nearly as interesting if earnings failed to grow as expected.

Those are risks I would keep in mind, particularly after the strong performance Australian bank shares have delivered over recent years.

Foolish takeaway

At $38.48, I think the NAB share price is a buy.

The valuation looks reasonable rather than cheap, but I like the bank’s business banking position and the prospect of earnings moving higher in FY27.

Add a fully franked prospective dividend yield of around 4.4% to 4.5%, and I think investors are being offered a good balance of income and potential capital growth at today’s price.

The post Is the NAB share price a buy at $38.48? 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 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.

Shares in Ramelius Resources Ltd (ASX: RMS) have been all but flat over the past year, despite large fluctuations over that period.

But the brokerage house Morgans is predicting decent share price upside for the mid-tier gold producer, with a bullish target, which I’ll get to shortly.

First, let’s see what they’re saying about the company.

New guidance imminent from this ASX gold company

Morgans said Ramelius is expected to release guidance for FY27 and an updated outlook out to FY30 later this month.

The broker said:

On production, we expect FY27 guidance to remain in line with the previous 200-220koz range, likely trending to the upper-end. Beyond FY27, we see scope for upside to the 2025 outlook through FY30. Increased mining rates at Break of Day following the Stage 2 cutback, along with mine life extensions at Penny, should drive higher head grades through FY27 and FY28. Gilbey’s, not previously included in the outlook numbers, has the potential to be a key driver of production growth from FY29, displacing lower-grade mill feed.

Morgans said Ramelius had flagged that costs could head higher, “driven by ongoing inflationary pressures across labour, mining services and diesel”.

The broker added:

Management indicated cost inflation of up to 8% across key operating inputs, while a partially hedged diesel position provides some protection. In addition, an extra ~A$30m of sustaining capital at Galaxy aimed to lift mining rates from 600ktpa to 800ktpa is expected to increase costs in FY27.

Morgans said that, regarding dividend payments, it believed Ramelius was well-positioned to continue generating strong cash flows and returning capital to shareholders.

Ramelius Resources shares looking cheap

The broker maintained its buy rating on Ramelius shares, but reduced its price target from $5.80 to $4.74.

This compares to the current price of $3.75.

The broker added:

RMS remains our preferred mid-cap gold exposure, supported by a strong balance sheet, low cost operations and a clear pathway to production growth through the Mt Magnet hub and Rebecca Roe. The divestment of Edna May reinforces our view of management’s disciplined capital allocation, crystallising value from a non-core asset while focusing attention to higher-return growth opportunities. We continue to view RMS as one of the highest-quality operators in the Australian gold sector.

Ramelius announced on Monday it had awarded the $313 million Mount Magnet Expansion contract to NRW Holdings Ltd (ASX: NWH).

The scope of work includes the construction of a new crushing circuit and coarse ore stockpile, installation of a new grinding circuit, additional leach tanks, and associated gold processing infrastructure, resulting in an additional 3 million tonnes per annum of processing capacity.

Ramelius is valued at $7.06 billion.

The post Which ASX gold company is Morgans’ preferred mid cap buy? 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.

Despite a material retrace since May’s all-time highs, PLS Group Ltd (ASX: PLS) shares have more than doubled investor’s money over the past year.

In late morning trade on Monday, shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock– formerly known as Pilbara Minerals – are changing hands for $4.47 apiece.

That sees the share price up 106.7% in 12 months, smashing the 1.1% one-year losses posted by the ASX 200 over this same time.

And we’ve yet to include the final FY 2026 PLS dividend.

As you may know, PLS suspended its dividend payouts in 2024 following the global lithium price crash of 2023.

But with the spodumene (a lithium bearing ore) price up 95% over the past 12 months, PLS declared a final fully-franked dividend of 5 cents per share.

The ASX lithium stock traded ex-dividend on 2 September. If you owned PLS shares at market close on 1 September, you can expect to see that passive income hit your bank account next week, on 24 September.

Of course, that dividend and the remarkable one-year share price gains are all water under the bridge today.

And, while well up over 12 months, the spodumene price has fallen around 29% since its mid-May highs.

That’s seen short sellers come out to bet against the soaring ASX lithium stock. Indeed, as of market opening this morning, 11.2% of the miner’s shares were held short, putting it among the top ten most shorted stocks on the ASX this week.

Which brings us back to our headline question…

Are PLS shares still a good buy today?

Baker Young’s Toby Grimm recently analysed the outlook for the soaring Aussie lithium miner (courtesy of The Bull).

“This lithium producer generated group revenue of $1.934 billion in full year 2026, up 152 per cent on the prior corresponding period,” he noted.

“It was driven by a 121 per cent increase in the average realised price and record sales volumes,” Grimm added.

But with PLS shares having more than doubled in a year, Grimm issued a sell recommendation on the ASX 200 stock.

He concluded:

However, in our view, considerable optimism is already priced into the stock. Further details, including the benefits and risks, of potentially expanding the Pilgangoora operations are expected to be released in the December quarter.

After a strong share price run in the past year, we would consider cashing in some gains at these levels.

The post PLS shares have soared 107% in a year! Is the ASX 200 lithium stock now a buy, hold or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.