Telstra Group Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG) both sit at the heart of Australia’s telecommunications market.

For me, though, the choice is fairly clear.

If I were buying one today with a medium to long-term view, I would choose Telstra.

Telstra shares

The main reason I prefer Telstra is the strength of its core mobile business.

Australians rely heavily on mobile and internet connectivity, and Telstra has spent years investing in the network, spectrum, and infrastructure needed to maintain a leading position.

I like that combination of essential demand and an established competitive advantage.

Telstra also does not need rapid growth to produce a worthwhile result for shareholders. If it can keep customers, gradually increase earnings, and continue lifting its dividend, I think the investment case works well.

The current forecasts support that view. Consensus estimates point to earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

Fully franked dividends are forecast at 22 cents and 22.5 cents per share, respectively. That equates to a forward dividend yield of around 4.8% in FY27 and 4.9% in FY28, before considering franking credits.

For me, Telstra shares offer a fairly easy investment case to understand: strong mobile positioning, recurring demand, and attractive income.

TPG Telecom shares

TPG also has plenty going for it. The company owns established telecommunications brands and serves a large base of Australian mobile and broadband customers.

There is also the possibility of stronger earnings ahead. Consensus forecasts put earnings per share at 1.8 cents in FY26 before increasing to 4.4 cents in FY27.

The income forecasts initially look even more eye-catching. TPG is expected to pay dividends of 20 cents per share in FY26 and 22 cents per share in FY27.

At a share price of around $3.79, that represents forecast dividend yields of around 5.3% in FY26 and 5.8% in FY27.

But I would be cautious about reading too much into those numbers. The gap between forecast earnings and dividends makes the income story less straightforward than Telstra’s. I would want greater confidence in the sustainability of those payments before choosing TPG primarily for passive income.

TPG may still reward investors from here, particularly if earnings recover strongly. I simply think Telstra shares give me a clearer long-term proposition today.

Foolish takeaway

This comparison comes down to which business I would feel more comfortable owning through the next several years.

For me, that is Telstra. Its leading mobile position, resilient demand, forecast earnings growth, and fully franked dividends give me more confidence in both the business and the income outlook.

TPG could still perform well, but I would put my money behind Telstra shares first.

The post Better buy: Telstra vs TPG Telecom shares 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 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.

There are not many ASX shares I’d describe as one of Australia’s top shares, but Pinnacle Investment Management Group Ltd (ASX: PNI) is one of them.

It’s not often that one of the best businesses on the ASX trades a lot cheaper, but that’s what has happened with Pinnacle.

What does Pinnacle do?

Pinnacle is involved in the investment sector – it takes stakes in investment managers and helps them grow.

It has an expanding portfolio of investment managers, with a recent focus on growth in the northern hemisphere.

Its portfolio includes Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, LongWave, Riparian, Coolabah Capital, Aikya, Five V Capital, Langon, Life Cycle, Pacific Asset Management, VSS and Advantage Partners.

Aside from a track record of success, a key reason why independent fund managers would agree to a minority investment is that Pinnacle can take over certain services, allowing the fund manager to focus on investing rather than behind-the-scenes work.

Some of those services include seed funds under management (FUM), working capital, distribution and client services, fund administration, compliance, finance, legal, technology and so on.

In my view, this is the right time to invest in one of Australia’s top shares amid a 40% decline since January 2025.

Strong underlying performance

With such a large decline, you’d think the business would not be reporting good growth numbers. However, it is still delivering solid underlying performance.

In its FY26 result, Pinnacle reported that aggregate affiliate FUM rose 13.3% to $229.4 billion, with net inflows of $33.4 billion for the year. Pleasingly, international FUM rose 45.6% year-over-year to $74.9 billion.

It also reported underlying net profit after tax (NPAT) rose 21% to $138 million and underlying earnings per share (EPS) grew 15% to 61 cents. The company’s share of affiliate net profit rose by 5% to $136 million.

I think most of Australia’s top shares would be happy with EPS growth of 15%, considering FY26 was a challenging year.

Solid dividend yield

Following the large decline of the Pinnacle share price, its dividend yield is now quite sizeable.

In FY26, it paid an annual dividend per share of 60 cents. That translates into a grossed-up dividend yield of around 5%, including franking credits. That’s not the biggest dividend yield on the ASX, but it’s a pleasing and consistent dividend.

I believe the payout can grow in the coming years as earnings increase.

Very appealing valuation as one of Australia’s top shares

Following the significant decline of the Pinnacle share price, its valuation now looks very appealing to me considering its potential earnings growth outlook.

According to the projection on Commsec, the business could generate EPS of 87 cents in FY27. That means the business is trading at 17x FY27’s estimated earnings. It’s currently projected to see EPS growth of 20% in FY28 and 21% in FY29.

I think the business looks significantly undervalued, given its valuation and potential profit expansion.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) had a strange August, setting a record closing high on 6 August before finishing the month up just 1.1%.

Underneath that flat number, some large companies were taken apart.

Five ASX 200 shares fell between 17% and 23%.

What makes three of these companies interesting is that they were still able to grow revenue.

The market was not punishing failure so much as repricing expectations.

Why these ASX 200 shares fell so hard

All three stocks reported in August and all three fell heavily on the day.

None of them missed on revenue.

Each was marked down on what came next, whether that was a cautious start to FY27, a margin moving the wrong way, or costs growing faster than the top line.

That is a very different problem from a broken business, which is why they are worth a second look.

1. JB Hi-Fi (ASX: JBH)

JB Hi-Fi closed Monday at $66.57, down 42.58% over twelve months and within a few cents of its 52-week low of $66.02.

The FY26 result delivered record revenue of $11.06 billion, up 4.8%, with net profit after tax rising 6% to $489.9 million.

The shares then suffered their worst day on record, falling 12.3%, and ended August down 18.3%.

The damage came from a single line in the trading update.

Comparable sales for JB Hi-Fi Australia fell 1.4% in July.

That is the first real sign the consumer is cracking, and with home values falling and a rate rise possibly ahead, it is a fair thing to worry about.

The offset is the valuation, with the shares now on a price-to-earnings ratio of 15.02 and a fully franked yield of 5.02%.

2. Life360 Inc (ASX: 360)

Life360 fell 21% across August and closed Monday at $20.17.

The twelve-month decline is 55.77%, which is brutal for a company still growing this quickly.

Second-quarter revenue rose 38% to US$159 million and adjusted EBITDA jumped 53% to US$31.1 million.

The catch sat below those numbers.

Net income fell 17.8% to US$5.1 million, and the net income margin halved to 3% from 6%.

Investors had been paying for a business that was supposed to scale into profitability, and the margin went backwards instead.

At $20.17 against a 52-week high of $55.87, a great deal of optimism has already been stripped out of the price.

3. Generation Development Group Ltd (ASX: GDG)

Generation Development Group was August’s worst performer, falling 22.6%, and it continued to decline on Monday, closing at $3.06.

That is a fresh 52-week low and a decline of 51.43% across the year.

FY26 revenue rose 23% to $178.7 million and funds under management jumped 37% to $46.5 billion.

Underlying net profit after tax climbed 21% to $40.7 million.

Statutory net profit fell 10% to $31.9 million, because operating expenses grew 26% and comfortably outpaced revenue.

The risk in buying beaten-down ASX 200 shares

Cheap shares can get cheaper, and all three have proven this fact repeatedly.

Investors sometimes falling into the value trap, buying cheap businesses without assessing the reasons why they are cheap.

Foolish takeaway

Of the three, JB Hi-Fi has the clearest valuation support and the most obvious risk sitting right in front of it.

Life360 has the strongest growth and the least proven path to profitability.

Generation Development owns the best asset in a $46.5 billion funds book but has the worst cost discipline.

I would want to see one more result from each before committing capital.

For patient investors, August produced a list of beaten-down ASX 200 shares that are cheaper than they were. The question remains whether they can recover.

The post Top 3 beaten-down ASX 200 shares from August worth a second look 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.