Tag: Stock pick

The Fortescue Ltd (ASX: FMG) share price has seen plenty of volatility over the past year, as the chart below shows. I think it’s a good time to consider what could happen next.

As one of the largest ASX-listed iron ore companies, the company is highly dependent on iron ore prices for its profits.

While Fortescue reported several growth figures in its FY26 results, the ASX mining share relied heavily on higher iron ore prices to drive earnings growth.

During the 2026 financial year, its hematite realised price (the iron ore sold price) rose by 7% to US$90 per dry metric tonne (dmt). This drove a 9% rise in revenue to US$17 billion. Underlying operating profit (EBITDA) also increased 9% to US$8.6 billion, while underlying net profit after tax (NPAT) rose 3% to US$3.46 billion.

One earnings headwind was a 4% increase in the C1 unit cost per wet metric tonne (wmt), driven by elevated energy prices and inflationary pressures.

On the cash flow side, operating cash flow grew 6% to US$6.8 billion, and free cash flow soared 25% amid a reduction in capital expenditure. This helped net debt improve by 23% to US$857 million.

What could happen with the Fortescue share price?

Without a crystal ball, it’s hard to know exactly what will happen with the Fortescue share price in the next 12 months. The performance of the iron ore price could be essential for how it plays out.

Analysts have given their view on whether they think the Fortescue share price is undervalued or not.

According to CMC Invest, there have been 11 analyst ratings on the ASX mining share within the last three months. It was a mixed bag. Two ratings were a buy, six were a hold, and three were a sell.

A price target tells investors where they think the (Fortescue) share price will go over the next 12 months, from the time of the investment call.

According to CMC Invest, the average price target of those 11 analyst ratings on the ASX mining share is $18. That implies the analysts collectively think the Fortescue share price could rise by 2% over the next year.

The most optimistic price target of $20.06 suggests a possible rise of 14% over the next year, while the most negative price target is $15.45, suggesting a decline of 12% from where it is.

It’ll be interesting to see what happens next, but analysts don’t seem to think Fortescue is a great opportunity. There could be a lot better ASX share investments out there.

The post How much could the Fortescue share price rise in the next year? appeared first on The Motley Fool Australia.

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• How much passive income can I earn off a $750,000 superannuation balance?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Here are the top 10 ASX 200 shares today
• These ASX shares benefit from a high Aussie dollar
• How much do I need in my superannuation to earn $200 a day in passive income?

Motley Fool contributor Tristan Harrison 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.

When compelling ASX shares trade at low prices, they could be unmissable buys. Falling to near 52-week lows may be the best price we can buy at.

Of course, just because something has fallen doesn’t mean it’s going to rise again quickly. But I think investing at the lower price gives brave investors a much better margin of safety and will hopefully lead to stronger returns.

With the above in mind, let’s look at two compelling ASX shares.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in Australia, selling hundreds of thousands of products across homewares, furniture and home improvement.

A significant majority of the products sold are shipped directly by suppliers to customers. This means the company operates with a capital-light model and can offer a vast range compared to competitors with physical stores.

The digital nature of its operations also means it can provide digital tools to customers such as AI chat, augmented reality (see a product in your room) and so on.

While the current retail conditions are challenging – with a higher cost of living and lower house prices – I think things will improve at some point, we just don’t know when. I believe this is why the Temple & Webster share price has fallen so far and why it makes sense to invest now.

Overall FY26 revenue may have only increased by 11% to $665 million, but home improvement revenue increased by 39% to $59 million. I think the home improvement segment could become increasingly important to the overall business as the years go by.

I believe online shopping adoption will help the company grow earnings in the coming years. The ASX share looks like great value to me, trading at 23x FY29’s estimated earnings after falling around 80% in the past year (and close to its 52-week low).

Propel Funeral Partners Ltd (ASX: PFP)

The Propel share price is also near its 52-week low after dropping more than 40% over the past year. I think the market is punishing Propel partly because of higher interest rates (hurting the valuations of stocks like Propel), as well as higher inflation.

Propel is one of the largest funeral providers in Australia and New Zealand. It operates from more than 210 locations, including 42 cremation facilities and nine cemeteries.  

It’s a morbid idea, but the company has compelling long-term growth tailwinds because of Australia’s ageing and growing population.

Propel says that Australian projected deaths are expected to grow at a compound annual growth rate (CAGR) of 2.8% between 2026 to 2035 and then a further 2.3% between 2036 to 2045. In other words, there’s clear revenue tailwinds for two decades.

With rising average revenue per funeral and an ageing demographic, I think the ASX share is a good long-term hold while it trades near a 52-week low.

The post 2 cheap ASX shares near 52-week lows I’d buy today appeared first on The Motley Fool Australia.

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• This ASX share is down 79%. Is it a buy?
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• Buy, hold, sell: Breville, Car Group, Temple & Webster shares
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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Starting an investment portfolio can feel difficult. There are thousands of shares to choose from and plenty of market noise.

For beginners, ASX exchange traded funds (ETFs) can make things much easier.

They allow investors to own a collection of stocks through one investment, which means you do not have to identify the next great pick yourself.

So, which ASX ETFs could be top picks for someone starting out?

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF could be a great place to start for beginners.

It tracks the S&P 500 Index, giving investors a slice of the 500 largest companies listed in the United States.

Many of these companies have become global businesses. They sell phones, software, medicines, financial services, advertising, consumer products, and industrial equipment around the world.

This means an Australian investor can buy this fund and immediately own a slice of many businesses they probably interact with every day.

The S&P 500 also changes over time. Companies that grow can enter the index, while those that lose relevance can eventually leave.

That makes the iShares S&P 500 ETF a simple way to back corporate America over the long term without having to predict which individual companies will still be leading the market in 10 or 20 years.

Vanguard Australian Shares Index ETF (ASX: VAS)

For investors wanting to keep some money closer to home, the Vanguard Australian Shares Index ETF could be worth considering.

This fund tracks the S&P/ASX 300 Index (ASX: XKO) and therefore owns a large collection of Australian companies.

That includes banks like Westpac Banking Corp (ASX: WBC), miners like BHP Group Ltd (ASX: BHP), healthcare companies like CSL Ltd (ASX: CSL), retailers like Woolworths Group Ltd (ASX: WOW).

One benefit for beginners is familiarity. Many of the businesses inside the fund are companies Australians see, use, or hear about regularly.

The local market is also known for paying dividends, with many companies distributing a meaningful portion of their profits to shareholders.

As a result, the Vanguard Australian Shares Index ETF offers a straightforward way to participate in the performance and income generated by the Australian share market.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginners to look at is the Vanguard MSCI Index International Shares ETF.

This fund spreads investments across developed markets around the world.

I think this is valuable for Australians. Our share market represents only a small portion of the global investment universe. The Vanguard MSCI Index International Shares ETF opens the door to businesses and industries that are either underrepresented or largely absent from the ASX.

With more than 1,000 stocks inside the fund, beginners do not need to decide whether the next great opportunity will come from America, Europe, or somewhere else. They can own a piece of all of them.

The post Which ASX ETFs could be top picks for beginner investors? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and iShares S&P 500 ETF. The Motley Fool Australia has recommended BHP Group, CSL, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a number of ways for investors to gain exposure to the artificial intelligence (AI) boom on the ASX.

Popular options include Megaport Ltd (ASX: MP1) and NextDC Ltd (ASX: NXT), which provide the infrastructure behind the megatrend.

Another ASX AI stock that could be worth a look is in this article. Let’s see why Bell Potter is recommending it to clients.

Which ASX AI stock?

The ASX stock that Bell Potter is positive on is Artrya Ltd (ASX: AYA).

It is a Perth-based medical technology company using AI powered image-analysis software to improve the detection and management of coronary artery disease (CAD). 

Bell Potter notes that CAD is driven by soft plaque that builds up silently in the arteries and ruptures without warning, causing a fatal heart attack. 

It points out that traditional cardiac diagnostics often fail to detect this hidden risk, and in over 50% of the population, the first sign of the disease is sudden death. 

The condition affects around 126 million people globally, which demonstrates the size of the opportunity for the company and its technology.

The ASX AI stock’s cloud-based software, Salix, uses proprietary AI algorithms to interpret data from Coronary Computed Tomography Angiography (CCTA) scans, to deliver results in a single point-of-care solution.

Big potential returns

This morning, following a review of its FY 2026 results, Bell Potter has retained its buy rating on the ASX AI stock with a trimmed price target of $6.00 (from $6.75).

Based on its current share price, this implies potential upside of approximately 50%.

Commenting on its buy recommendation, the broker said:

While some aspects of AYA’s commercialisation are occurring at a slower than expected pace, it is well advanced. AYA has two modules out of its three approved, and all three Salix modules attract top shelf category 1 CPT reimbursement rates that enable high margin generation. AYA has three customers and six study partners it aims to convert to commercial customers in time. All of this now contrasts favourably with EIQ that investors had been comparing AYA with. 

While submission for the FFRCT module has taken longer than expected, now more than ever, it is imperative that AYA take the time to produce a high-quality submission with a high degree of confidence in achieving an FDA approval. Subsequent to our earnings estimate changes, we reduce our TP by c.11% to $6.00/sh and retain our BUY rating.

The post Why this ASX AI stock could rise 50% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Commonwealth Bank of Australia (ASX: CBA) shares have long been a favourite with passive income investors.

And it is easy to see why. The banking giant generates billions of dollars in profit each year from mortgages, business lending, credit cards, deposits, and other financial services.

But rather than keeping all those profits inside the business, CBA returns a large portion to shareholders through dividends.

Better still, those dividends are fully franked, which can make them particularly attractive to Australian investors.

So, how much would you need to invest in CBA shares to generate $10,000 of passive income each year?

Let’s take a look.

CBA’s dividend outlook

The market is currently expecting the company to deliver earnings per share of $6.67 in FY 2027, followed by $6.86 in FY 2028.

These earnings are expected to support fully franked dividends of $5.15 per share in FY 2027 and $5.30 per share in FY 2028.

At the current CBA share price of $155.25. this represents dividend yields of approximately 3.3% and 3.4%, respectively.

Those are admittedly not the biggest yields available on the Australian share market, but they are no doubt attractive in the current environment.

How many CBA shares would I need?

Let’s use the FY 2027 dividend forecast of $5.15 per share.

To receive $10,000 in cash dividends, an investor would need approximately 1,942 CBA shares.

At the current share price of $155.25, buying that many CBA shares would set you back approximately $301,496.

The fully franked nature of those dividends is worth remembering as well. Assuming an investor can make full use of the franking credits, $10,000 of cash dividends would come with approximately $4,286 of franking credits.

That would give the income a grossed-up value of roughly $14,286 before personal tax. Not bad!

What about in FY 2028?

The numbers improve slightly if CBA’s dividend grows as expected.

Using the forecast FY 2028 dividend of $5.30 per share, an investor would need around 1,887 shares to generate $10,000 of annual cash income.

That would require an investment of approximately $292,957.

Of course, CBA’s share price will almost certainly be different by then and dividends are never guaranteed. But based on current forecasts, the numbers give us a good indication of the scale required.

All in all, for someone wanting $10,000 a year in passive income from CBA shares alone, they will need roughly $300,000 invested at current levels.

The post How much do I need to invest in CBA shares for $10,000 of passive income? 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.

BHP Group Ltd (ASX: BHP) shares have had a stellar year.

As have the miner’s shareholders.

In Wednesday afternoon trade, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant were changing hands for $64.13 apiece.

That sees the share price up 56.5% over 12 months, smashing the 1.0% gains posted by the benchmark index over this same period.

And if you’re wondering why that figure doesn’t match up with the headline number, that’s because we haven’t factored in the BHP dividends yet.

Over the last 12 months BHP has paid – or shortly will pay – two fully franked dividends totalling (a rounded) $2.42 a share. The stock traded ex-dividend last Thursday.

So, if we add that back into the recent share price, then the accumulated value of BHP shares has gained an impressive 62.4% since market close on 9 September 2025.

That remarkable run saw BHP retake the crown of biggest ASX stock from Commonwealth Bank of Australia (ASX: CBA) earlier this year.

At the recent share price, BHP has a market cap of around $327 billion.

But after that kind of strong run, is the Aussie mining giant still a good buy today?

Should I buy BHP shares today?

Gray Perry Wealth Advisers’ Blake Halligan recently ran his slide rule over the ASX miner (courtesy of The Bull).

“BHP remains a high-quality diversified miner with large, low-cost assets and increasing exposure to copper,” he said.

Commenting on BHP’s FY 2026 results, reported on 18 August, Halligan said:

The company’s fiscal year 2026 result was strong, with it generating attributable profit of $US9.8 billion, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. Rising copper demand from electrification and data centres support the longer-term outlook, while iron ore operations remain highly competitive.

Explaining his hold recommendation on BHP shares, Halligan concluded, “Commodity-price sensitivity and project execution risks support retaining BHP rather than increasing exposure.”

One ASX 200 stock to buy now

While Hannigan issued a hold recommendation on BHP shares, he had a more bullish outlook on Seek Ltd (ASX: SEK).

“Seek operates a leading online employment marketplace, with a dominant position in Australia and established operations across Asia,” he said.

Summarising his buy recommendation on Seek shares, Halligan said:

Its scalable model, strong margins and international expansion provide attractive long-term growth potential. Despite softer job-ad volumes, fiscal year 2026 net revenue rose 10 per cent and EBITDA increased 15 per cent, demonstrating pricing power and operational resilience. We’re forecasting earnings to grow about 9.5 per cent annually in the next two years.

An improving return on equity and a healthy dividend further support the investment case.

The post Up 62% in a year are BHP shares now a buy, hold or sell? appeared first on The Motley Fool Australia.

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• Copper prices just hit a record high. What does this mean for ASX copper shares?
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and dropped into the red. The benchmark index fell 0.1% to 8,911.4 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to tumble

It looks set to be a poor session for Australian investors on Thursday following a tough night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 88 points or 1% lower this morning. In the United States, the Dow Jones fell 0.75%, the S&P 500 dropped 0.5%, and the Nasdaq was 0.65% lower.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), fund manager Perpetual Ltd (ASX: PPT), copper producer Sandfire Resources Ltd (ASX: SFR), and telco Spark New Zealand Ltd (ASX: SPK).

Oil prices jump again

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have another positive session after oil prices jumped again overnight. According to Bloomberg, the WTI crude oil price is up 3.9% to US$96.67 a barrel and the Brent crude oil price is up 3.8% to US$101.67 a barrel. Traders bid oil prices to a four-month high after fighting escalated in the Persian Gulf.

Elders downgraded

Elders Ltd (ASX: ELD) shares are close to being fully valued according to analysts at Bell Potter. This morning, the broker downgraded the agribusiness company’s shares to a hold rating (from buy) with an improved price target of $6.70. It said: “Following the recent recovery in the share price we are moving our rating from Buy to Hold. Investments in Delta and SYSMOD are the largest drivers of near term growth, however, we see the large livestock tailwinds the agency business has benefited from the past two years facing more difficult comparisons moving forward.”

Gold price rises

It could be a decent day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.2% to US$4,447.2 an ounce. This was driven by a softening US dollar.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock L1 Global Long Short Fund Ltd (ASX: GLS) could be one of the best options for investors wanting a good level of passive income. I’d rather invest in this ASX share rather than rely on the Age Pension.

L1 Global Long Short Fund Ltd is a listed investment company (LIC) which is relatively new to the ASX.

It follows the same investment strategy as the L1 Long Short Fund Ltd (ASX: LSF), which has been listed for more than eight years, but it has a global share focus rather than looking largely evenly at ASX shares and global shares.

For multiple reasons, I think the L1 Global Long Short Fund Ltd is a top pick for retirement (and wealth building).

Good passive dividend income potential

L1 Global Long Short Fund doesn’t yet have a long dividend record, but its sibling LIC has demonstrated its desire and ability to grow dividend payouts at a pleasing pace over the last few years, since 2021.

The ASX dividend stock has recently provided guidance that it’s going to significantly increase its dividend payouts in FY27, which will help boost the dividend yield.

The LIC has indicated it will increase its annual dividend per share to “at least” 8 cents in the 2027 financial year. That translates to a grossed-up dividend yield of 5.4% at the time of writing, including franking credits.

Impressively, that guided payout represents significant year-over-year growth, and I believe the dividend could grow by another 10% (or more) in FY28 compared to the guided payout in FY27.  

Effective investment strategy

The investment team in charge of this LIC combines valuation (primarily discounted cash flow) with qualitative considerations such as management quality, long-term industry and company structure and business trends to identify attractive investment opportunities.

The fund managers and analysts in charge of this LIC have several thousand company meetings a year, including one-on-one visits with company management, listed and unlisted competitors, customers, suppliers, operational personnel, regulators, consultants, unions and other parties that can help provide a deeper insight.

It’s also willing to use short selling, where it bets on share prices going down. That means it can make returns on certain stocks if the share price goes down.

At the end of July 2026, the ASX dividend stock reported that it had delivered a total return of 17.8% since its inception, beating the global share market return of 11.1% in that same timeframe since November 2025.

Since the inception of the specific global long-short strategy, which started in January 2025 and is unlisted, it has returned 58.1% compared to the global share market return of 20.1% in the same time period. Of course, past performance is not a reliable indicator of future returns.

Producing good investment returns can help fund good passive income and capital growth, which is something that the Age Pension can’t do.

Diversification

L1 Global Long Short Fund offers investors pleasing diversification.

Its portfolio typically has between 40 to 80 positions across a wide range of sectors and themes, allowing it to make returns in a variety of ways.

The company also provides effective geographic diversification across North America, Europe and Asia Pacific.

While diversification doesn’t automatically mean great returns, it can help lower the risk of being too exposed to one particular area. The global investment mandate also means that the ASX dividend stock can search far and wide for opportunities.

How many shares would it take to equal the Age Pension?

The maximum annualised Age Pension that Australians can receive right now is approximately $32,200.

To receive that level of income from L1 Global Long Short Fund, it’d take 402,500 shares if we exclude franking credits and 281,750 shares if we include the franking credits as part of the dividends.

Overall, I’d be excited to own that many shares, though I also think it’s a good idea to receive dividends from different sources.

The post 281,750 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• 2 great ASX dividend share buys for passive income in September

Motley Fool contributor Tristan Harrison has positions in L1 Global Long Short Fund Ltd and L1 Long Short Fund. 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.

The ASX shares most attractive to own are usually cheapest at the moment the market is least comfortable.

The S&P/ASX 200 Index (ASX: XJO) has slipped from an August peak of 9,282 points to around 8,901.

That is a fall of roughly 4% in a month.

Around 120 companies in the index were in the red on Wednesday, creating opportunities for investors looking to get in cheap.

Why the sell-off has created opportunities in ASX shares

The cause is relatively simple: Macquarie now expects the Reserve Bank to lift the cash rate by 25 basis points later this month.

The broker noted that trimmed mean inflation has spent 17 of the last 20 quarters above the target band.

The cash rate already sits at 4.35% after three increases this year.

Higher rates compress the multiple investors will pay for future earnings, although they may not automatically damage the earnings themselves.

With that in mind, here are three ASX shares that look a lot cheaper now that the broader market has sold off.

1. Judo Capital Holdings Ltd (ASX: JDO)

Judo Capital closed Wednesday at 99.5 cents, down almost 40% over twelve months.

Shares crashed 46% in a single session in June after the bank flagged three problem exposures and cut guidance.

The result that followed was better than the recent share price moves suggest, although increases in credit delinquencies have been a drag for the company.

FY26 statutory net profit rose 29% to $111.1 million.

Profit before tax climbed 34% to $168.1 million.

Gross loans and advances grew 18% to $14.7 billion while deposits jumped 24% to $12.2 billion.

The net interest margin widened 20 basis points to 3.13%.

Chief executive Chris Bayliss did reference particular credit issues in his speech:

FY26 has been another year of genuine momentum for Judo. While the increase in specific provisions late in the year was disappointing, the underlying performance of the Bank has remained strong, with record revenue, continued operating leverage, strong deposit growth and lending at the top end of guidance.

FY27 guidance calls for profit before tax of $210 million to $220 million, whereas the average broker target of $1.51 implies roughly 50% upside.

2. South32 Ltd (ASX: S32)

South32 is the odd one out here.

The company’s shares hit a fresh 52-week high of $5.32 on Wednesday and are up 103% over twelve months.

Not every holding bought during a sell-off has to be a bargain.

South32 earns US dollars from copper, zinc and silver, which is a completely different driver to the domestic rate cycle.

FY26 underlying earnings rose 55% to US$1.03 billion and underlying EBITDA grew 28% to US$2.46 billion. Meanwhile, total dividends lifted 55% to 9.3 US cents per share, fully franked.

Chief executive Matt Daley explained where the business is heading.

The sale of our aluminium value chain assets to Alcoa will simplify and strengthen our portfolio, positioning South32 as a leading base metals focused company with high-margin assets and a pipeline of compelling growth options in copper, zinc and silver.

3. Life360 Inc (ASX: 360)

Life360 closed at $19.64 and are down 60.6% over twelve months.

On the positive side, second quarter revenue rose 38% to US$159.0 million and adjusted EBITDA increased 53% to US$31.1 million. Monthly active users passed 102.4 million and advertising revenue reached US$22 million.

The company holds US$467.7 million in cash and guides FY26 revenue to US$650 million to US$685 million.

The shares fell anyway, because investors had priced in a bigger guidance upgrade.

Foolish takeaway

A 4% pullback is not a crash.

But what this pullback has done is separate the multiple from the earnings across much of the market at once.

All three of these ASX shares grew earnings materially in FY26, and two have been sold down heavily regardless.

For ASX investors, this could be a unique buying opportunity.

The post Top 3 ASX shares I’d buy after the most recent sell-off appeared first on The Motley Fool Australia.

More reading

• Life360 shares are 60% below broker targets. Here’s why
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• South32 shares reach fresh 52-week high: Can they keep climbing?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Medibank Private, Ansell, South32 shares

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Knowing whether you have enough superannuation can be difficult.

Retirement could last for decades, living costs will change, and everyone’s idea of a comfortable lifestyle is different.

Still, there are some useful benchmarks that can give Australians an idea of what they may want to aim for.

What does a comfortable retirement cost?

The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard to estimate the spending required for different retirement lifestyles.

For Australians aged 65 to 84, ASFA currently estimates that a single person needs around $55,923 a year for a comfortable retirement. A couple needs approximately $78,566 annually.

That comfortable budget allows for things such as private health insurance, regular leisure activities, occasional restaurant meals, maintaining a reasonable car, home repairs, and some travel.

The figures are a lot lower for what ASFA describes as a modest retirement.

A single homeowner needs an estimated $36,434 annually, while a couple needs $52,473. Private renters face a higher hurdle, with estimated annual spending of $51,164 for a single person and $69,002 for a couple.

That difference shows why the amount of superannuation someone needs can vary so much depending on their circumstances.

So, how much superannuation is enough?

ASFA has helpfully provided its estimate for the superannuation balances required at age 67 to fund those lifestyles.

For a comfortable retirement, it estimates that a single person needs around $630,000, while a couple needs approximately $730,000 between them.

It is important to point out that this does not assume retirees will live entirely from investment income while preserving their original balance forever.

ASFA’s calculations assume retirees draw down their capital over retirement and receive a part Age Pension.

For a modest retirement, ASFA estimates required balances of $110,000 for a single homeowner and $120,000 for a couple.

Private renters need more. ASFA puts the required balance at around $340,000 for a single renter and $385,000 for a couple.

I would treat these as a starting point

I do not think there is one superannuation number that every Australian should aim for.

Someone who owns their home outright, has relatively low expenses, and qualifies for the Age Pension could need considerably less than someone paying rent or wanting to travel regularly.

Retirement age also makes a difference. The ASFA balance estimates are based on retiring at 67, so someone hoping to finish work much earlier may need to fund more years before or during retirement.

I would also want some room for unexpected expenses rather than planning around the minimum amount required to make the numbers work.

Foolish takeaway

ASFA’s latest benchmark suggests a single Australian needs around $630,000 in superannuation at age 67 for a comfortable retirement, while a couple needs around $730,000.

That gives investors something tangible to work towards, but I would not treat it as a universal target.

The amount I would want would ultimately depend on when I planned to retire, whether I owned my home, the lifestyle I wanted, and how much flexibility I wanted once regular employment income stopped.

The post How much superannuation do Australian retirees actually need? 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.