Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) enjoyed a happy end to the trading week this Friday, recording a solid rise that erased some of the nasty falls that we saw yesterday.

It was clear from market open that investors were feeling a renewed sense of optimism, with the ASX 200 opening in green territory and staying there all day. By the time the markets closed, the index had lifted 0.79% to 8,682.1 points as we head into the weekend.

This pleasant end to the Australian trading week followed a tentatively positive night over on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to record a slight rise of 0.04%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared almost identically, gaining 0.039%.

Let’s return to the local markets now though, and take a closer look at how the different ASX sectors fared amid today’s trading.

Winners and losers

There were only a couple of sectors that weren’t lifted by the tide of optimism that we saw today.

The first, and worst, of those sectors were real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) was hit hard, slumping 1.63%.

Healthcare stocks were the other unlucky corner of the markets, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) sliding 1.1%.

It was all smiles everywhere else, though.

Leading the charge higher this Friday were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) certainly had a day to remember, rocketing by 4.45%.

Energy stocks also ran hot, evident from the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.48% surge.

Mining shares were in demand too. The S&P/ASX 200 Materials Index (ASX: XMJ) soared 1.14% today.

Next came consumer staples stocks, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) shooting up 1.05%.

Financial shares were in that ballpark as well. The S&P/ASX 200 Financials Index (ASX: XFJ) galloped 1.03% higher.

Consumer discretionary stocks weren’t left out, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.85% jump.

Nor were utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 0.73% this session.

Communications stocks proved popular, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) adding 0.54% to its ledger.

Industrial shares put on a decent show. The S&P/ASX 200 Industrials Index (ASX: XNJ) advanced 0.45% today.

Finally, gold stocks held their value, as you can see by the All Ordinaries Gold Index (ASX: XGD)’s 0.45% bump.

Top 10 ASX 200 shares countdown

High-flying tech Stock Elsight Ltd (ASX: ELS) took out today’s top spot on the index charts. Elsight shares exploded 12.95% higher this session to finish the week at $5.32 each. That was despite no fresh news or announcements out from the company recently.

Here’s the rest of today’s best:

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen 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 DroneShield, Life360, Megaport, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, WiseTech Global, and Xero. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Several ASX real estate investment trusts (REITs) have hit 52-week lows as the property sector underperforms the market on Friday.

The S&P/ASX 200 Index (ASX: XJO) is rallying 0.5% after experiencing its worst one-day fall in six months yesterday.

However, the real estate sector is in the red and the worst performer of the bourse today, down 1.6%.

ASX REIT share prices are being weighed down by expectations of further interest rate rises in Australia, the US, and elsewhere.

Higher rates can affect REITs’ financing, drag property values down, and make cash and fixed income investments more appealing.

Strong bond yields are also a headwind because they can raise financing costs and attract investment away from REITs.

With all that said, some brokers maintain buy recommendations on ASX REITs, while others recommend caution.

Let’s investigate.

1. Arena REIT No 1 (ASX: ARF)

The Arena REIT No 1 share price is $2.02, down 0.5% today and down 43% in 2026. 

Over the past month, this REIT has fallen 10%.

Ord Minnett upgraded Arena REIT No 1 shares to a buy rating on 9 September.

The broker trimmed its 12-month price target from $2.85 to $2.75.

This implies 36% potential growth ahead.

2. Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long WALE REIT share price is $3.20, down 1.1% today and down 22% in 2026. 

Over the past month, this ASX REIT has declined 9%.

Morgan Stanley reiterated its hold call with a price target of $4.06 on 22 September.

This implies 27% potential upside ahead.

3. BWP Group (ASX: BWP)

The BWP Trust share price is $3.51, down 0.7% today and down 11% in 2026. 

Over the past month, this ASX REIT has dipped 5%.

UBS reaffirmed its hold rating with a 12-month price target of $3.80 on 9 September.

This implies an 8% potential upside ahead.

4. Charter Hall Retail REIT (ASX: CQR)

The Charter Hall Retail REIT share price is $3.44, down 1.3% today and down 16% in 2026. 

Over the past month, this REIT has fallen 13%.

Macquarie upgraded Charter Hall Retail REIT shares to a buy call on 30 September.

The broker has a 12-month price target of $4.18.

This implies 22% potential upside ahead.

5. Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.74, down 1.3% today and down 17% in 2026. 

Over the past month, this ASX REIT has fallen 8%.

Macquarie upgraded Centuria Industrial REIT shares to a buy rating on 30 September.

The broker’s target is $3.02, implying a potential 10% upside ahead.

6. Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT shares are $2.20, down 0.5% today and down 28% in 2026. 

Over the past month, this ASX REIT has lost 7%.

Ord Minnett reiterated its buy call on Charter Hall Social Infrastructure REIT shares on 9 September.

The broker lowered its 12-month price target slightly from $3.05 to $3.

This implies 36% potential upside ahead.

The post 6 ASX REITs just hit 52-week lows. Do any brokers say buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd vs Mineral Resources shares

Looking to invest in a major ASX miner, but torn between PLS Group Ltd (ASX: PLS) and Mineral Resources Ltd (ASX: MIN)? It’s a fair dilemma. Both companies sit at the heart of Australia’s mining boom and have big ambitions in lithium—a commodity crucial to clean energy and electrification. Yet, when it comes down to fundamentals, recent performance, and dividends, these two miners take noticeably different routes to delivering shareholder returns. Here’s how I see the strengths and weaknesses stack up between PLS Group and Mineral Resources shares.

The case for PLS Group

PLS (formerly Pilbara Minerals) has carved out a position as one of Australia’s most prominent pure-play lithium producers. Its flagship Pilgangoora mine in Western Australia is among the world’s largest hard-rock lithium-tantalum projects, while a 2025 move into Brazil’s Colina lithium reserve highlights its appetite for global expansion. The company’s laser-focus on lithium could appeal to investors banking on strong long-term demand for battery metals.

Looking at the fundamentals, PLS Group currently trades on a price-to-earnings (P/E) ratio of 23.98 and sports a fully franked dividend yield of 1.29%. Earnings per share stand at $0.161, with a market cap of $12.45 billion. The company has paid out fully franked dividends, with the most recent being $0.14 and $0.11 per share in 2023, according to its published dividend history. The shares have struggled so far this year, with a year-to-date (YTD) return of -7.1%. For those with conviction in a lithium-led recovery, PLS stands out as a focused, growth-oriented operator.

The case for Mineral Resources

Mineral Resources offers a different proposition. It’s not just a miner—it’s a mining services provider and a significant player in both lithium and iron ore. Its operations range from mining its own resources in the Pilbara and Goldfields to offering pit-to-port logistics and infrastructure services to third parties. This business model gives it more earnings diversity than a pure-play lithium miner like PLS. Mineral Resources has also laid out bold plans to become a leading lithium hydroxide and battery producer, leveraging vertical integration for cost advantage.

On the numbers, Mineral Resources currently trades on a significantly lower P/E ratio of 9.81, which reflects a much higher earnings per share figure at $5.338. Its dividend yield is 1.58% (fully franked), and its market cap comes in at $10.38 billion. The company has a lengthy track record of paying fully franked dividends, with the most recent totalling $0.90 per share across two payments in 2024. Despite a negative YTD return of -2.1%, this is a much gentler slide than PLS Group over the same period.

Valuation comparison

There are some clear contrasts in the key figures:

Recent share price performance

Comparing recent share price action up to 30 September:

• PLS Group Ltd closed at $3.86, down 0.26% on the day, and has lost 7.1% year-to-date.
• Mineral Resources Ltd closed at $52.29, down 0.19% on the day, and is down 2.1% for the year to date.

So far in 2026, both have underperformed, but Mineral Resources shares have held up better than PLS Group on a year-to-date basis.

Which is the better buy?

If I had to pick between the two today, I’d lean toward Mineral Resources. Here’s why: Its P/E ratio is much lower than PLS Group’s, suggesting the market is either underpricing its earnings or sees more stability and less risk in its diversified business. Mineral Resources also offers a slightly higher, fully franked dividend yield and a proven record of returning cash to shareholders. The earnings per share difference is striking, and its year-to-date performance has held up better in a tough environment. While PLS Group has explosive potential if lithium prices soar (and a strong focus for those after pure lithium exposure), I think Mineral Resources’ mix of mining and services gives it the resilience and income I personally prefer in volatile cycles.

The post PLS Group vs Mineral Resources: ASX mining shares compared appeared first on The Motley Fool Australia.

More reading

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• Lynas Rare Earths vs Mineral Resources: Which ASX mining stock shines?

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 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 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.4% to 8,651 points on Friday.

Let’s take a look at some new ratings from the experts.

Codan Ltd (ASX: CDA)

The Codan share price is $67.64, up 0.2% today and up 111% over six months. 

Bell Potter has a buy rating on this ASX 200 tech share. 

In a new note, the broker said:

CDA has provided a 1H27 trading update which reflects an acceleration in the strong momentum seen at the August 20, 2026 result.

Communications: Elevated demand is expected to drive substantial operating leverage, resulting in a 1H27 EBIT margin of 40% (2H26 34.3%). CDA has upgraded full year FY27 Communications revenue growth target range to 30-40% from 20%.

Metal detection: Minelab 1H27 revenue run-rate is now slightly above 2H26 levels an improvement from August 20 where it was tracking in line. The strong momentum is driven by recently launched GPZ 8000 and Gold Monster 2000 detectors, a favourable gold price and the continued expansion of ROW.

Group: CDA continues to actively seek ways to mitigate potential supply chain related constraints resulting from the order momentum in both the Communications and Minelab businesses. CDA currently expects to achieve NPAT for 1H27 of not less than $160m.

Capstone Copper Corp CDI (ASX: CSC)

The Capstone Copper share price is $14.08, up 0.1% today and up 28% over six months. 

Ord Minnett downgraded the ASX 200 copper share from hold to buy this week.

In a new note, the broker said:

Capstone Copper (CSC) has agreed to sell its Cozamin mine to Luca Mining Corp. in a transaction worthup to US$385 million, with completion expected in the December quarter 2026.

While the sale of the asset was widely anticipated, the final consideration was below market expectations of around US$530 million. 

Importantly, the transaction strengthens CSC’s balance sheet and improves its ability to fund the large Santo Domingo copper project, where a final investment decision is targeted for late 2026. 

With the upside more limited from here, we lower our recommendation on CSC to Hold from Buy, but note that copper prices are currently stronger than our long-term assumption of US$5.50/lb which should provide valuation support.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $150.57, up 0.6% today and down 13% over six months.

John Athanasiou from Red Leaf Securities has a sell rating on this ASX 200 bank share. 

He explained (courtesy of The Bull): 

CBA is Australia’s highest quality major bank, but, in my view, quality doesn’t always represent value.

Its premium valuation leaves limited room for disappointment as rising interest rates potentially slow credit growth and increase borrower stress.

Investors could use the opportunity to take profits and consider better-value alternatives elsewhere in the banking sector.

The post Buy, hold, sell: CBA, Capstone Copper, Codan shares appeared first on The Motley Fool Australia.

More reading

• Why I’d buy CBA and Coles shares in October
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• Codan vs Xero: Which ASX tech stock is the better buy in October?

Motley Fool contributor Bronwyn Allen 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.

S&P/ASX 200 Index (ASX: XJO) shares are 0.6% higher at 8,668.6 points on Friday.

The ASX 200 fell to a four-month low yesterday amid falling oil prices and rising bond yields.

While expectations of another interest rate rise next month have cooled, many experts say a hike in 1Q FY27 is likely.

Amid the market weakness, experts are offering their advice on buy-the-dip opportunities.

They reckon the following stocks have great upside potential over the next 12 months.

Goodman Group (ASX: GMG)

The Goodman Group share price is $25.86, down 2.8% today.

Over the past six months, this ASX 200 property share has declined 1%.

Citi reiterated its buy rating on Goodman shares with a price target of $40.

This implies potential capital gains of 54% ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $33.08, up 5.6% today.

Over the past six months, this ASX 200 tech share has fallen 13%.

Citi renewed its buy rating on WiseTech shares with a $58.75 price target.

This implies a potential 77% upside ahead.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 87 cents, up 1.8% today.

Over the past six months, this ASX 200 gold share has risen 28%.

Bell Potter reaffirmed its speculative buy rating on Minerals 260 shares with a 12-month target of $1.40.

This suggests a potential 67% upside ahead.

Analyst David Coates said:

MI6 has released an updated Mineral Resource Estimate (MRE), Pre-Feasibility Study (PFS) and maiden Ore Reserve Estimate (ORE) for its 100% owned, 6.2Moz Bullabulling Gold Project (BGP), 25km west of Coolgardie in WA.

These mark the delivery of key catalysts in line with MI6 guidance and major milestones in the advancement of the BGP towards development.

MI6 offers gold exposure via the 6.2Moz Bullabulling MRE, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production.

MI6 holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $50.89, up 2% today.

This ASX 200 mining share has fallen 3% over the past six months.

UBS renewed its buy rating on the stock with a $74 target.

This implies potential capital growth of 45% over the next year.

REA Group Ltd (ASX: REA)

The REA share price is $154.62, up 0.3% today.

Over the past six months, this ASX 200 communications share has traded steady.

Jefferies reiterated its buy call on REA shares with a $194 price target.

This suggests a potential 25% upside ahead.

The post 5 ASX 200 shares brokers tip to rocket 25% to 77% appeared first on The Motley Fool Australia.

More reading

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 Goodman Group, Jefferies Financial Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The performance of True North Copper Ltd (ASX: TNC) shares over the past year has been underwhelming to say the least, but the analyst team at Morgans is tipping that’s about to change.

They have just issued a new research note on the company, assigning a speculative buy rating and a very bullish share price target, which I’ll get to shortly.

So what’s getting them all excited?

Queensland projects progressing well

True North has two projects in development: Mt Oxide and Cloncurry, both in Queensland.

Just this week, the company announced further high-grade copper and gold exploration results at Cloncurry, building on the mineral resource announced in September of 152,000 tonnes of copper and 171,000 ounces of gold.

True North is expecting to complete a prefeasibility study on the Cloncurry project later this year.

The company said the recent drilling results showed the potential for further near-mine extension opportunities.

The company added:

Further drilling in late 2026 and into 2027 will target near mine exploration and resource extension opportunities, with the potential to grow the resource and further optimise value across the broader Cloncurry Copper Project.   

Broker likes what it sees

Morgans said True North was well-positioned, with the region likely poised for a wave of consolidation.

Long fragmented between underutilised mills and mill-constrained juniors, Cloncurry is now seeing long-anticipated consolidation gain momentum. Evolution Mining has agreed to acquire Carnaby Resources ($213m, scheme), citing latent mill capacity at Ernest Henry. Austral Resources Australia has beaten Larvotto Resources to a binding scheme for Hammer Metals ($80.7m), and AIC Mines has agreed to acquire Materra Metals (Mt Cuthbert) for $120m (~$488/t contained Cu). We see this as supportive for TNC. It validates the strategic value of Cloncurry copper gold inventory, provides fresh regional transaction benchmarks and highlights the scarcity of what TNC already holds: resources on granted mining leases alongside permitted processing infrastructure.

Morgans said the company had plenty of options for how to develop its projects, given the available infrastructure in the region.

The broker has a price target of $1.31 on True North shares, compared to the current price of 33.5 cents.

If achieved, this would constitute a 291% increase in value.

Morgans said further:

We view TNC as a compelling emerging copper opportunity, anchored by its flagship Mt Oxide project, with the Cloncurry Copper Project (CCP) providing a complementary near-term development pathway on granted leases with existing infrastructure. Further Mt Oxide drilling and the CCP prefeasibility study in late 2026 are among multiple catalysts over the next 12 months that could build scale, de-risk the portfolio and narrow TNC’s valuation discount to peers.

True North Copper is valued at $62.9 million.

The post Morgans tips 290% upside for this up-and-coming ASX copper company appeared first on The Motley Fool Australia.

More reading

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• Why I’d buy CBA and Coles shares in October
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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.

The Fortescue Ltd (ASX: FMG) share price is trading around $16.29 on Friday, only slightly above its 52-week low of $16.13.

At first glance, that might look like an attractive entry point for one of Australia’s biggest miners.

But I think the valuation needs a closer look before calling the shares cheap.

Cheap based on past earnings

Fortescue generated earnings per share (EPS) of $1.71 in FY26. Against today’s share price, that puts the stock on a price-to-earnings (P/E) ratio of roughly 9.5 times.

That certainly looks inexpensive. The company also paid $1.08 per share in dividends for FY26, which represents a high trailing dividend yield at the current share price.

The problem is that analysts are not expecting those earnings or dividends to hold.

Consensus forecasts point to EPS falling to $1.33 in FY27, then to $1.21 in FY28, and to $1.12 in FY29.

That changes the valuation considerably. At $16.29, Fortescue is trading on around 12 times FY27 earnings, rising to roughly 13.5 times FY28 earnings and about 14.5 times FY29 earnings.

So the further out I look, the less obvious the bargain becomes.

The dividend tells a similar story

The income outlook follows the same direction.

Consensus forecasts point to dividends of 85 cents per share in FY27, 76.8 cents in FY28, and 70 cents in FY29.

Those would still provide reasonable yields at today’s price, but they are a long way below the $1.08 paid in FY26.

For income investors, I think that is important. A high historical yield can look tempting, but what ultimately counts is what Fortescue can afford to distribute from future earnings.

Right now, the market expects both profits and dividends to decline.

What could push the Fortescue share price higher?

For me, the key would be a change in the earnings trajectory.

If consensus forecasts remain where they are, I struggle to see why investors would suddenly pay a much higher earnings multiple for Fortescue.

A stronger iron ore price could change that picture, as could better-than-expected production, costs, or progress elsewhere in the business.

But based on the numbers currently expected, the company would be earning far less in FY29 than it did in FY26.

That makes it difficult for me to build a strong re-rating case.

Would I buy Fortescue shares?

I would stay on the sidelines for now.

I think Fortescue is more of a hold than a sell at $16.29. The valuation is not excessive, and existing shareholders may still be comfortable owning the business through the commodity cycle.

But if I were putting fresh money into the resources sector, I would prefer BHP Group Ltd (ASX: BHP) shares.

BHP gives investors exposure to both iron ore and copper, which provides a broader mix of commodity drivers and, in my view, a stronger long-term growth story.

Foolish takeaway

The Fortescue share price looks cheap based on FY26 numbers. The problem is that the forecasts are heading in the wrong direction.

Until I see signs that earnings can stabilise or start growing again, I think the shares are closer to fair value than bargain territory.

For now, I would hold rather than buy.

The post Is the Fortescue share price a cheap buy? appeared first on The Motley Fool Australia.

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• If I buy $6,000 of Fortescue shares, how much dividend income will I receive?
• How much do I need in ASX dividend shares to receive $15,000 passive income per year?

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have underperformed over the past 12 months, slipping 17.1% over the period.

The analyst team at Jarden believe a turnaround is on the way, however, with a modest share price improvement forecast over the next year.

Muted revenue growth for FY26

Wesfarmers, which owns Bunnings, Kmart, and its lithium mining operations WesCEF, grew its revenue in FY26 by just 3.4% to $47.3 billion.

Net profit came in at $2.9 billion, down 1.8%.

The Jarden team said the drop in the Wesfarmers share price over the past year meant that it was “nearing its oversold territory”.

They added:

The weakness is a function of negative earnings per share revisions and macro concerns. We view these concerns as overdone – with WES’ retail divisions consistently growing regardless of the cycle.

Jarden said Australian consumers were facing headwinds, with cost-of-living pressures eroding cash flow and discretionary spending growth halving.

With this as the backdrop, they looked at Wesfarmers’ performance over the past 20 years to assess how it performed through the cycles.

Our conclusion: a combination of share gains, space growth, expandable categories and an everyday low pricing offer that outperforms in cyclical downturns, has seen WES’ brands consistently deliver sales growth over the past 20yrs. The above, combined with its category killer status and marketplace/AI push, leaves WES retail well-positioned to continue this growth. We see limited risk to consensus, with market margin forecasts arguably conservative, led by Bunnings, which is forecast to contract 6 basis points in FY27. This is despite sourcing, productivity and mix benefits that should see Bunnings continue its 2H26 margin trend, the biggest lift since 2021.  

Jarden said Wesfarmers management was executing well, with a clear plan, and they believed there was upside developing into FY28.

They said there was an opportunity for Wesfarmers to become the leading customer-facing business in Australia across health, consumables, and energy, “and while this will take time and money, we don’t believe it’s reflected in the current share price”.

Jarden said earnings growth was likely to accelerate into FY28 as Wesfarmers’ digital and AI push drove better return on invested capital, similar to the experience of Walmart in the US.

Share price should appreciate

Jarden has a price target of $83.20 for Wesfarmers shares, compared with the current $75.77.

If achieved, this would constitute a 9.8% return, with the company also paying a 3.3% dividend yield.

Wesfarmers is valued at $85.9 billion.

The post In a tough retail environment, what’s the outlook for Wesfarmers shares? appeared first on The Motley Fool Australia.

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• How many Wesfarmers shares do I need to buy for $8,000 of passive income?
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• How much is needed in superannuation to target a $10,000 monthly passive income?

Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Walmart and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. 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) and Coles Group Ltd (ASX: COL) shares are starting October from very different positions.

CBA shares are trading around $150.30 on Friday, not far from their 52-week low. Coles shares, meanwhile, are around $23.05 and much closer to their 52-week high.

Even so, I would be happy to buy both.

CBA shares

CBA has become more interesting to me as the share price has moved closer to the lower end of its recent range.

The shares are only slightly above their 52-week low of $146.97, which gives investors a much better starting point than they had earlier in the year.

I still would not call CBA cheap in an absolute sense. Consensus forecasts point to earnings per share (EPS) of $6.67 in FY27 and $6.86 in FY28, compared with $6.58 in FY26. That means investors are still paying a premium for fairly modest earnings growth.

But I think there are reasons the market consistently gives CBA that premium.

It is Australia’s largest bank, has a powerful deposit franchise, and remains a leader in digital banking. Those strengths have helped it build a highly profitable business that I would be comfortable owning through different economic conditions.

The dividend supports the buy thesis. CBA paid $5.05 per share in FY26, with consensus forecasts pointing to dividends of $5.15 in FY27 and $5.30 in FY28. This represents dividend yields of 3.4% and 3.5%, respectively.

For me, I like the combination of quality, resilience, and a gradually rising dividend at a share price much closer to the year’s lows.

Coles shares

Coles is a different story. Its shares are trading around $23.05, not far from their 52-week high of $24.59. Ordinarily, that might make me more cautious.

But I think the earnings outlook gives the share price some support.

Coles generated EPS of 81.3 cents in FY26. Consensus forecasts point to EPS of 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

That is a much stronger growth profile than CBA, with earnings expected to rise by more than 40% between FY26 and FY29.

I like that Coles combines this growth with the defensive qualities of supermarkets.

Australians still need groceries regardless of what is happening in the broader economy, while improvements in efficiency, supply chains, and operations can help Coles turn steady sales growth into stronger earnings.

The dividend is also expected to move higher, from 78 cents in FY26 to 83.5 cents in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

So while the shares are close to their highs, I think the business has the earnings growth to justify a higher valuation than it commanded a few years ago.

Foolish takeaway

I would be buying CBA and Coles shares for different reasons in October.

CBA appeals to me because the share price has come back towards its lows while the underlying business remains strong.

Coles is closer to its highs, but I think its earnings trajectory gives the shares room to keep progressing.

For me, both still deserve a place on the buy list.

The post Why I’d buy CBA and Coles shares in October appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 Lendlease Group (ASX: LLC) share price may be in focus after the company announced an update on the sale of its interest in the Milano Santa Giulia (MSG North) project in Milan, Italy. Key highlights include an extension of the deadline for the sale and potential future funding commitments.

What did Lendlease Group report?

• Update on sale of MSG North development rights to Bizzi & Partners S.p.A
• Original sale conditions not yet satisfied; deadline extended to 15 October 2026
• Transaction closing remains uncertain and may be further extended
• If sale falls through, Lendlease may need to fund approximately $160 million in project obligations in 1H FY27

What else do investors need to know?

Lendlease previously arranged to sell its stake in the MSG North project through its Heartbeat Fund to an investment group led by Bizzi & Partners S.p.A, a local Italian developer. However, as conditions precedent have not been met, both parties have agreed to push out the satisfaction deadline to 15 October 2026.

The ongoing uncertainty means the timeline for finalising the sale could move again. Should the transaction not complete, Lendlease stated it will likely be required to provide significant project funding, which could impact cash flow in the first half of FY27.

What’s next for Lendlease Group?

Lendlease will continue working with its transaction partner to try to fulfil the remaining conditions required for the sale. Investors should keep an eye on future updates about the transaction, particularly given the potential financial exposure if the sale does not go through.

Looking ahead, the group’s next steps with the MSG North project are highly dependent on whether the sale completes. Lendlease may have to reassess its funding priorities and capital allocation depending on the outcome.

Lendlease Group share price snapshot

Over the past 12 months, Lendlease shares have declined 55%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Lendlease Group extends MSG North sale deadline, outlines possible funding requirement 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 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.