One of the largest ASX consumer discretionary stocks has been tipped to rise significantly following earnings results. 

It has largely been a down year for the sector, which relies heavily on consumer spending and household confidence. These have both come under pressure amid elevated living costs and high interest rates.

However, following earnings results, Bell Potter has issued fresh guidance on Eagers Automotive Ltd (ASX: APE). 

Eagers is the largest automotive retailing group in the Australian market. 

The company’s core business involves the ownership and operation of motor vehicle dealerships covering a diversified portfolio of automotive brands.

What did the company report?

Yesterday, the company released half-year results, which included revenue rising 24% to $8.05 billion and net profit after tax up 23% to $165.2 million.

Other results included: 

• Underlying EBITDA up 23% to $364.6 million
• Ordinary interim dividend up 4% to 25 cents per share, fully franked
• Liquidity at $2.61 billion and net debt at $674.9 million as at 30 June 2026
• Acquisition of CanadaOne Auto Group contributed $40.5 million in profit before tax across two months  

Despite the results, this ASX consumer discretionary stock dipped 5% on the announcement. 

However, Bell Potter sees this as a clear buying opportunity. 

Strong results

In yesterday’s report, Bell Potter said Eagers Automotive delivered a strong H1 FY 2026, with underlying operating earnings coming in 4% above Bell Potter’s forecast. 

This was driven by stronger-than-expected revenue and better results in both Australia and Canada. 

The 25-cent fully-franked final dividend was also slightly ahead of expectations.

Bell Potter sees a positive outlook for H2, noting the resilience of the business, continued market-share gains, and opportunities to optimise operations and pursue disciplined growth across Australia and North America. 

While Eagers does not provide formal guidance, Bell Potter expects a significant improvement in H2 earnings, helped by a full six-month contribution from Canada.

Bell Potter has upgraded revenue forecasts by around 1% for FY26 to FY28, but trimmed underlying operating PBT forecasts by around 2% due to slightly lower margin assumptions in Australia and Canada.

Healthy upside for this ASX consumer discretionary stock

Based on this guidance, Bell Potter has retained its buy recommendation on this ASX consumer discretionary stock. 

The broker has a $27.50 price target, indicating almost 24% upside from current levels. 

This TP is >15% premium to the share price so we maintain our BUY recommendation. There is perhaps a lack of catalysts this half but we see continued good monthly VFACTS data in Australia (particularly for Toyota and BYD) as providing support and confidence in a strong H2 result.

The post Why this ASX consumer discretionary stock could be the sector’s top pick  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 recommended BYD Company. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The PEXA Group Ltd (ASX: PXA) share price is in focus after the digital property settlement company posted 7% revenue growth to $406.9 million and a 12% jump in EBITDA for the full year 2026.

What did PEXA Group report?

• Group revenue rose 7% to $406.9 million (FY25: $379.5 million)
• EBITDA increased 12% to $151.7 million, with margins up 1.7 percentage points to 37.3%
• NPATA climbed 35% to $65.3 million; statutory NPAT from continuing operations improved to $19.2 million from a $65.6 million loss
• Free cashflow grew 39% to $93.5 million
• Leverage (Net debt/EBITDA) reduced to 1.0x, down from 1.8x
• No final dividend declared

What else do investors need to know?

PEXA delivered strong growth across both Australian and international operations, although its UK EBITDA remained negative as investment continued. Domestically, PEXA increased its property market coverage to all Australian states and territories, with TAS and NT onboarding during the year.

The business sharpened its strategic focus by divesting its Digital Solutions arm, strengthening the balance sheet and paying down $92.4 million in net debt. The UK business marked a major milestone by delivering NatWest’s digital remortgage functionality ahead of schedule, alongside steady progress with other lenders and growing transaction volumes.

What did PEXA Group management say?

PEXA’s CEO, Russell Cohen, said:

FY26 was my first full financial year as PEXA’s CEO. It has been a year of intentional change for PEXA, clearing the pathway for more disciplined execution, a sharpened focus, which resulted in a strengthened financial position to enable us to continue investment in the products and services that matter most to our customers.

What’s next for PEXA Group?

Looking ahead to FY27, PEXA expects challenging market conditions in Australia to impact property transaction volumes and revenue. The company is focused on strengthening its Australian Exchange, growing compliance services via PEXA Clear, piloting a capital-light model in New Zealand, and accelerating platform adoption in the UK with plans to launch Sale and Purchase for NatWest.

PEXA continues to engage with regulators over proposed changes to fee settings, advocating for outcomes that balance consumer value with ongoing investment in digital property infrastructure. Management guidance points to group revenue between $385 million and $415 million and NPAT of $5–20 million for FY27.

PEXA Group share price snapshot

The PEXA Group share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 50%.

View Original Announcement

The post PEXA Group jumps to FY26 profit as revenue and EBITDA lift 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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

Are you hunting for new ASX shares to buy for your portfolio?

If you are, then it could be worth hearing what analysts at Morgans are saying about the three listed below.

Is the broker bullish or bearish on them? Let’s find out.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator delivered an underlying profit that was ahead of expectations in FY 2026.

However, Morgans believes the earnings beat was low quality and driven by lower net interest expense and depreciation and amortisation. 

As a result, the broker has retained its hold rating on Domino’s shares with a $20.00 price target. It said:

Underlying NPAT of A$121.6m (+4.0% on the pcp) beat MorgansF A$117.8m and Visible Alpha A$119.4m and finished at the top end of pre-released guidance, but the beat was low quality, with EBIT up 1.0% to A$200.1m and carried by lower D&A (-15.7% on the pcp) and net interest expense. The balance sheet is strong, with net leverage down to 1.86x, free cash flow of A$164.1m and a 32.5cps final dividend (+51.2%) with a 50% payout ratio.

FY27 started soft with -5.8% same-store sales (SSS) for the first 8 weeks. We maintain HOLD and lift our price target to A$20.00 (from A$17.60); we view the reset as necessary, but the recovery is cost led and volume growth needs to return.

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans was disappointed with this travel agent giant’s FY 2026 results, highlighting that its profits were at the lower end of its guidance range and its guidance was underwhelming.

Nevertheless, due to its cheap valuation, the broker has retained its buy rating with a $14.25 price target. It commented:

FLT’s FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict. Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start. 

With one-off costs associated with Productive Operations and World360 Rewards now being placed above the line, we have made minor downgrades to our forecasts. While investors will need to be patient for another six months, FLT’s fundamentals remain attractive (FY27F PE of 11.6x) and we retain a Buy rating with a new A$14.25 price target. When operating conditions ultimately improve, both its earnings and share price will be materially higher.

WiseTech Global Ltd (ASX: WTC)

This logistics technology company delivered a result that was largely in line with expectations in FY 2026.

In response, the broker has retained its buy rating on WiseTech shares with a price target of $62.50. It said:

WTC’s FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range. While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27. 

FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%. Our Underlying EBITDA forecasts are revised by +3%/-2% in FY27-FY28F and we retain our BUY rating with a price target of A$62.50ps (previously A$67.00ps).

The post Buy, hold, sell: Domino’s, Flight Centre, and WiseTech shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and 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.