Tag: Stock pick

The Reserve Bank of Australia (RBA) decided this week to increase the cash rate by 25 basis points (0.25%), which I think has opened up significant opportunities with some ASX share sectors.

I’m always on the lookout for potential buys that could mean strong returns.

Sometimes that means investing in businesses that consistently grow earnings year after year. But there can also be excellent cyclical opportunities when we buy at the weaker point of the cycle.

High interest rates are a headwind for some areas of the ASX share market, and I think that opens up an opportunity to buy during a temporary dip. Hopefully, interest rates will start coming down again at some point, and that could lead to a significant turnaround of investor confidence.

I’m going to highlight three areas that now look significantly undervalued.

Real estate investment trusts

A lot of real estate investment trusts (REITs) now trade at significant discounts to their underlying net asset value (NAV) or net tangible asset (NTA).

I love being able to buy assets for less than they’re worth, and I think, on a long-term basis, that the current unit prices are trading too cheaply.

With how taxes have changed for investing in residential property, I think there could be stronger investor demand for commercial property, which could be supportive for REIT unit prices in the medium term.

I don’t necessarily think that every single REIT is a buy, but I’d focus on the ones with positive long-term outlooks and rising rental income.

I think industrial properties and farmland are two areas with promising outlooks. That’s why I currently really like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Each of those four ASX shares has declined recently, but they’re offering strong distribution yields, making them particularly appealing today.

ASX retail shares

The high cost of living and higher interest rates are likely to be a headwind for retail spending, particularly for discretionary retailers.

Retail spending is notoriously cyclical, and it can lead to volatile businesses during an economic cycle.

Even if consumers do reduce spending somewhat, I don’t think the current prices reflect the long-term prospects of the retail businesses, largely just the shorter-term pain.

I’d look at names like JB Hi-Fi Ltd (ASX: JBH), Nick Scali Ltd (ASX: NCK), Universal Store Holdings Ltd (ASX: UNI), Lovisa Holdings Ltd (ASX: LOV), Temple & Webster Group Ltd (ASX: TPW), and Wesfarmers Ltd (ASX: WES).

I think they could be great opportunities to buy today for the longer term.

ASX defensive shares

Higher interest rates can make defensive businesses look less appealing because investors can get a solid return from safe investments like savings accounts, term deposits, and quality bonds.

I think ASX defensive shares could be a great investment amid higher interest rates, and lower rates in the future could make the current valuations very attractive.

After recent falls, I think names like Propel Funeral Partners Ltd (ASX: PFP), Transurban Group (ASX: TCL), Telstra Group Ltd (ASX: TLS), Medibank Private Ltd (ASX: MPL), and Sonic Healthcare Ltd (ASX: SHL) look appealing.

These aren’t the only ASX shares on my watchlist after the RBA interest rate rise, but they’re among my favourite ideas today.

The post Where I’d invest in ASX shares after the recent RBA rate rise appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners, Rural Funds Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Temple & Webster Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Lovisa, Nick Scali, Sonic Healthcare, Temple & Webster Group, Universal Store, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Liontown Ltd (ASX: LTR) share price is in focus after the company approved a $389 million Final Investment Decision (FID) to expand its Kathleen Valley lithium operations, aiming to lift spodumene concentrate production capacity by 56% to approximately 780,000 tonnes per annum (ktpa).

What did Liontown Resources report?

• Final Investment Decision approved for $389 million expansion at Kathleen Valley.
• Expected production capacity to increase from ~500 ktpa to ~780 ktpa (a 56% boost).
• Forecast unit operating costs to fall to A$840–920 per tonne (FOB basis) once fully ramped up.
• Capital intensity of A$1,619 per tonne—among the lowest of recent brownfield expansions.
• Payback period for the expansion estimated at approximately 2.5 years.
• The project is set to create roughly 400 full-time jobs, supporting local communities.

What else do investors need to know?

The expansion will see operational flexibility enhanced through the accelerated development of the Kathleen’s Corner Underground mine, complementing existing Mount Mann operations. Upgrades to the processing plant and non-process infrastructure—including power and water facilities—will support the increased capacity and maintain efficiency.

With construction phased over three years, first ore from new mining areas is targeted for the first quarter of FY28. Incremental capital required for expansion is already reflected in Liontown’s FY27 guidance, with funding planned via existing cash and ongoing cash flow. The company also highlights its ability to sell into both spot and contract markets, providing flexibility in volatile conditions.

What did Liontown Resources management say?

Managing Director Tony Ottaviano said:

Our expansion decision demonstrates confidence in Kathleen Valley’s world-class resource, cost competitiveness, and our team’s ability to deliver value for shareholders, employees and regional communities.

What’s next for Liontown Resources?

Liontown is prioritising a disciplined delivery schedule, with the construction program spread across mining, processing, and infrastructure streams. The company targets average production of around 780 ktpa by Q1 FY30, reinforcing Kathleen Valley’s position among the world’s top 10 lithium producers. Management expects lower unit costs and flexibility to adapt to market conditions, supported by robust long-term lithium demand and a structural market supply gap.

Looking ahead, Liontown will continue development and commissioning activities, aiming for sustained low-cost production as global lithium needs evolve. The expansion offers Liontown a platform for future growth and potential upside as the battery materials sector matures.

Liontown Resources share price snapshot

Over the past 12 months, Liontown shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Liontown Resources approves $389m Kathleen Valley lithium expansion 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.

Tabcorp vs The Lottery Corporation shares: Which is the better buy this week?

Choosing between Tabcorp Holdings Ltd (ASX: TAH) and Lottery Corporation Ltd (ASX: TLC) feels like picking a ticket in two different draws. Both companies should be pretty familiar to Aussie investors, especially after the 2022 demerger that left them operating in distinct (yet related) corners of the gaming and wagering industry. If you’re weighing up Tabcorp vs The Lottery Corporation shares this week, here’s a closer look at the core points of difference.

The case for Tabcorp

Tabcorp is one of Australia’s best-known gambling companies, now focusing on wagering and gaming services after spinning off its lotteries and keno business in 2022. Its well-known TAB brand offers betting both online and in a broad network of retail venues outside Western Australia, covering more than 90% of the population according to its most recent public description. Tabcorp also provides gaming solutions to clubs and pubs through its MAX business, and remains a major racing broadcaster with Sky Racing and Sky Sports Radio.

Looking at the numbers:

• Tabcorp’s market cap stands at $2.09 billion, making it significantly smaller than its old lottery sibling.
• The current P/E ratio is elevated at 45.05, indicating investors are paying a hefty price for current earnings compared to profits.
• The dividend yield is 3.30%, but notably, its most recent dividends have been unfranked, a big shift from its fully franked payouts prior to the demerger.

Looking through Tabcorp’s dividend history, you’ll see a marked reduction in dividend size (now just 3 cents per share over the last year, with recent payments unfranked) since lotteries and keno departed, and a share price that’s lost about 5.1% year to date.

The case for Lottery Corporation

The Lottery Corporation is Australia’s largest and most established lotteries and keno business. If you’ve ever bought a Powerball or Oz Lotto ticket, you’ve experienced its reach. The Lott holds long-term or exclusive lottery licenses in every state and territory except WA and boasts an enormous distribution network — more than 3,800 retailers plus online, as per its company profile. Its keno games are available in over 3,400 venues. Its brands permeate Aussie culture, and it’s tough to walk into a newsagent and not see their logo.

Fundamentally, the post-demerger Lottery Corporation is showing strong profit metrics:

• Market cap is $10.71 billion — five times larger than Tabcorp in today’s figures.
• P/E ratio is 37.58, not exactly low, but lower than Tabcorp’s, reflecting the lottery business’s healthy margins and consistent demand.
• It’s offering a 3.43% dividend yield, with all recent dividends fully franked — a clear tick for income seekers, especially compared to Tabcorp’s recent unfranked payments.

The Lottery Corporation’s year to date return is -3.6%, a bit better than Tabcorp’s, and it has steadily paid fully franked dividends, including a special dividend after the demerger.

Valuation comparison

Here’s how both companies stack up on the numbers that actually matter:

	Tabcorp	The Lottery Corporation
Market Cap	$2.09 billion	$10.71 billion
P/E Ratio	45.05	37.58
Earnings per Share	$0.020	$0.128
Dividend Yield	3.30%	3.43%
Dividend Franking	0% (recently)	100%
Dividend per Share	$0.03	$0.17
YTD Return	-5.1%	-3.6%

Note: Tabcorp’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

The big standout here is the greater yield and full franking at The Lottery Corporation — a meaningful difference for Aussie income investors. Tabcorp’s much higher P/E and lower earnings per share suggest less bang for your buck on recent earnings, at least for now.

Recent share price performance

Comparing recent momentum up to 25 September 2026:

• Tabcorp closed at $0.91 on 25 Sept 2026, down 1.1% that day and showing a year to date return of -5.1%.
• The Lottery Corporation finished at $4.81, also down on the day by 1.6%, but its year to date return is a slightly smaller -3.6%.
• Both stocks have faded in 2026 so far, but The Lottery Corporation has been less volatile, with tighter daily moves on average.

Which is the better buy?

If I could only choose one this week, my pick would be The Lottery Corporation. Here’s why: it trumps Tabcorp on profitability, pays out a higher and fully franked dividend, and has a much bigger (and arguably more defensive) business model thanks to its exclusive lottery licences and huge retail reach. While both shares have dipped this year, The Lottery Corporation is holding up a little better, and its lower P/E ratio means you’re paying less for each dollar of earnings despite the higher quality and predictability of those earnings.

Tabcorp’s business, now leaner post-demerger, seems to be offering smaller, unfranked dividends and isn’t showing clear earnings momentum — while still being more “expensive” on a P/E basis. Absent any strong short-term catalyst or evidence of a turnaround, I find The Lottery Corporation a much more compelling option for both stability and income, even if it’s not exactly cheap.

The post Tabcorp vs The Lottery Corporation: Which ASX gaming share comes out on top? 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 positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. 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.

CSL Ltd (ASX: CSL) shares have already recovered strongly from their lows, but they remain well below $250.

At around $182.00 today, the healthcare giant would need to rise approximately 37% to get there.

So what would need to happen for CSL shares to return to $250?

The earnings outlook is positive

I think earnings growth can provide part of the answer.

Consensus forecasts point to earnings per share (EPS) of $8.99 in FY27, $9.48 in FY28, and $10.08 in FY29.

That is not explosive growth, but it would represent steady progress over the next few years.

At the current share price, CSL trades on a PE ratio of roughly 20 times forecast FY27 earnings.

That multiple falls to around 19 times FY28 earnings and just over 18 times the FY29 estimate.

For me, that leaves room for the share price to climb if CSL delivers on those forecasts.

What would CSL be worth at $250?

At $250, the shares would trade at almost 28 times forecast FY27 earnings.

That would be a significant premium to today’s valuation and would require investors to become much more confident about the outlook.

But the hurdle falls as earnings grow.

Against FY28 EPS of $9.48, a $250 share price would represent around 26 times earnings. Using the FY29 forecast of $10.08, the multiple falls to just under 25 times.

That looks more achievable to me.

CSL would still need a re-rating from today’s valuation, but the company would also have higher earnings supporting that share price.

What would need to go right?

For me, the first requirement would be a continued recovery in CSL’s underlying performance.

Demand for immunoglobulins remains central to the CSL Behring story. If that demand stays strong and CSL can continue increasing the amount of plasma available to meet it, there should be room for revenue and earnings to keep growing.

The economics of collecting that plasma are also important.

I would want to see continued improvements in collection efficiency and plasma yields, because producing more finished product from the collection network can help margins as well as volumes.

That could be particularly important for rebuilding profitability in CSL Behring after the pressure seen over recent years.

Product development could provide another leg of growth.

CSL has a substantial research and development pipeline, and successful new products or expanded uses for existing therapies could create additional earnings streams beyond the company’s established franchises.

If the company can combine strong immunoglobulin demand, better plasma economics, margin improvement, and contributions from newer products, the current consensus earnings trajectory starts to look much more achievable.

And if investors become convinced that the recovery is sustainable, I think they could become willing to pay a higher multiple for those earnings again.

Foolish takeaway

I think $250 is achievable for CSL shares, but it will need more than time.

The company needs to keep growing immunoglobulin volumes, improve plasma collection economics, rebuild margins, and make progress with newer products.

If that translates into EPS of around $10 by FY29, a $250 share price would imply a PE ratio of roughly 25 times.

I think that is possible if CSL can restore confidence in its growth story.

The post What would it take for CSL shares to return to $250? appeared first on The Motley Fool Australia.

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

S&P/ASX All Ords Index (ASX: XAO) shares are down 3% over 12 months.

On The Bull this week, Mark Gardner from MPC Markets shares his insights on three stocks.

Greatland Resources Ltd (ASX: GGP)

The Greatland Resources share price is up 40% over 12 months. 

Gardner has a buy call on this ASX gold mining share. 

He said: 

Greatland is moving into mid-tier gold and copper production.

GGP produced 328,987 ounces of gold and 14,594 tonnes of copper in full year 2026. The company beat production and cost guidance.

Net profit after tax of $862 million was up 156 per cent on the prior corresponding period.

The shares have fallen on weaker production guidance in full year 2027.

GGP offers an appealing entry price. In our view, the market is too focused on a weaker guidance rather than funded growth.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 7% over 12 months. 

Gardner has a hold rating on this ASX healthcare share. 

He explained: 

The US Food and Drug Administration recently approved the company’s brain cancer imaging drug Pixclara.

TLX shares soared on the news, but we believe the approval is largely priced in at this point.

However, the underlying business is in good shape. Group revenue of $US477 million in the first half of 2026 was up 22 per cent on the prior corresponding period.

The group gross margin of 55 per cent was up 2 per cent year-on year. The company maintained a cash balance of $US252 million at June 30, 2026.

Qualitas Ltd (ASX: QAL)

The Qualitas share price is down 34% over 12 months. 

Gardner has a sell recommendation on this ASX financial share. 

He commented:

Qualitas is an alternative real estate investment manager with about $11.6 billion of committed funds under management at June 30, 2026.

QAL manages investments across real estate private credit and real estate private equity via a range of investment solutions for institutional, wholesale and retail clients.

The company has exposure to construction lending in a sector we believe is under pressure from rising costs amid potentially higher interest rates.

The shares have fallen from $3.36 on August 13 to trade at $2.38 on September 24.

We would rather be on the sidelines until credit costs stop rising.

The post Buy, hold, sell: Telix Pharmaceuticals, Qualitas, Greatland Resources shares 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Qualitas and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think long-term investing in ASX shares is the best approach because it gives our investments time to successfully execute business plans and lets the magic of compounding play out.

The investments I’m going to talk about have already demonstrated their strategies are working and I’m expecting plenty more success in the years ahead.

The first is one of the ASX’s leading exchange-traded funds (ETFs) and the second is a business exposed to one of Australia’s longest-term tailwinds.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This investment gives investors exposure to 100 of the largest non-financial companies on the NASDAQ. The NASDAQ is home to many of the world’s leading technology businesses, so investors are getting significant exposure to tech businesses that are changing the world.

On 24 September 2026, its biggest positions were Nvidia, Apple, Alphabet, Microsoft, Micron Technology, Advanced Micro Devices, Amazon.com and Meta Platforms.

It’s hard to say how the world will change from here, but I imagine technology will remain a key driver of change. New products and services can unlock earnings and expand existing revenue streams, like cloud computing and online shopping.

By the way, I’m calling this an ASX share because it’s about investing in shares and we can buy it on the ASX.

The NDQ ETF holdings continue to see earnings growth, which can drive their share prices higher, which is a big tailwind for the returns of the NDQ ETF.

Impressively, the NDQ ETF has returned an average of 19.4% per year since inception in May 2025. In the past five years, it has returned an average of 14.2% per year. Of course, past performance is not a guarantee of future returns.

Over the next decade, I expect this collective group to continue delivering pleasing earnings growth, probably stronger than the overall global share market. Great businesses have a habit of continuing to deliver good performance.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the other ASX share I want to highlight. It is the second-largest funeral operator in Australia and New Zealand. Propel operates from 213 locations, including 42 cremation facilities and nine cemeteries.

Australia and New Zealand both have growing and ageing demographics, which means there’s a tailwind for funeral volumes.

According to Propel and the Australian Bureau of Statistics (ABS), the number of deaths in Australia is projected to increase at a compound annual growth rate (CAGR) of 2.8% between 2026 and 2035 and then rise at a CAGR of a further 2.3% between 2036 to 2045.

FY26 was thankfully a challenging year for funeral volumes, with funeral volumes contracting by around 2%. To me, that suggests that funeral volumes are likely to be stronger in the medium term.

Funeral prices are steadily rising over time, which is another tailwind for revenue. In FY26, the average revenue per funeral was $6,673 – a comparable rise of 2% year-over-year.

The company is steadily expanding its geographic presence and scale, which should provide advantages in the coming years. Since FY26, it has deployed around $12 million on five acquisitions in New Zealand.

In July 2026, the first month of FY27, comparable average revenue per funeral rose 3%, and funeral volumes remained resilient despite the lowest recorded winter flu season in five years.

With Propel Funeral Partners’ share price down 45% over the past year, it looks like a great time to be brave and invest.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Westpac Banking Corp (ASX: WBC) shares normally means receiving a pleasing level of dividend income each year.

The ASX bank share typically has a generous dividend payout ratio and a fairly low price/earnings (P/E) ratio, resulting in a large dividend yield for investors.

In my view, Westpac shares offer investors a fairly similar investment setup as ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB). However, Westpac typically generates more of its earnings from lending to households than the other two banks.

All three of the bank majors that I’ve mentioned have a higher dividend yield than Commonwealth Bank of Australia (ASX: CBA), though that’s largely because CBA trades on a higher P/E ratio than the other major banks.

With the above in mind, let’s take a look at what analysts are predicting for the ASX bank share in the years ahead.

FY26

We’re now at the end of the Westpac 2026 financial year, which finishes on 30 September 2026. But we’ll have to wait a few weeks to see what the ASX bank share actually achieved when it reports.

The latest update we’ve heard from the bank was the FY26 third-quarter update for the three weeks to June 2026.

It said it generated $1.8 billion of quarterly statutory net profit, which represented a 3% increase on the quarterly average of the FY26 first half. Its underlying net profit also came to $1.8 billion, resulting in a 2% year-over-year increase on the FY26 first half average.

Westpac noted that it continues to focus on simplifying its operations, improving the customer experience, and increasing productivity. The ASX bank share said its program, called UNITE, is progressing.

The ASX bank share also highlighted that its enterprise data has migrated to the cloud, that it has strengthened its data foundations, and that it supports greater use of analytics and artificial intelligence.

For the quarter, its net interest margin (NIM) – the profitability of its lending – was essentially stable, though rose slightly thanks to the higher interest rate environment, offset by competitive pressures in lending, the deposit mix and more savers qualifying for the savings bonus rate.

Westpac also highlighted continued operating momentum drove “strong customer deposit and loan growth”. Lending increased by 2%, reflecting broad-based growth across the Australian portfolio including 4% in business, 3% in institutional and 2% in housing.

According to the projection on CMC Invest, the business is forecast to increase its dividend per Westpac share to $1.55. That translates into a FY26 grossed-up dividend yield of 6.3%, including franking credits, at the time of writing.

FY27

The ASX bank share is expected to continue the positive trajectory for the Westpac dividend in the 2027 financial year, along with a slight increase in earnings per share (EPS).

The projection on CMC Invest suggests the annual dividend per share could be hiked slightly to $1.585.

FY28

In the final financial year of this projection series, Westpac is forecast to raise its annual dividend per share to $1.64.

That means the ASX bank share could pay a FY28 grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

The post Here’s the dividend forecast out to 2028 for Westpac shares appeared first on The Motley Fool Australia.

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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.

ASX share prices are always changing, giving investors the chance to invest at compelling value.

The recent reporting season provided deep insights into business profitability, allowing investors to judge whether ASX shares are overvalued or undervalued.

The below two ASX shares are some of the most backed ideas by analysts right now.

PLS Group Ltd (ASX: PLS)

PLS Group is one of the world’s largest lithium miners. It owns 100% of the world’s largest independent hard-rock lithium operation, the Pilgangoora operation in Australia and the Colina lithium project in Brazil. It’s also integrated into the lithium value chain with its joint venture with POSCO in South Korea, which manufactures battery-grade lithium hydroxide.

According to Commsec, the company currently has 19 analyst ratings. Of those ratings, 10 are a buy, five are a hold, and four are a sell. While that’s a mixed bag, the majority are positive ratings.

FY26 saw the company come roaring back as the lithium price bounced back following difficulties in FY25, which then huge flow-on impacts to the financials.

The ASX share’s realised (sold) price for its lithium soared 121% to US$1,488 per tonne, which combined with a 17% rise in the volume of lithium sold to 891.6kt. This led to revenue jumping 152% to $1.9 billion.

Underlying operating profit (EBITDA) rocketed higher by 1,067% to $1.14 billion and net profit after tax (NPAT) grew 369% to $526 million. It also reported that its cash margin from operations improved 608% to $1.36 billion.

Not only is the company capitalising on the current strength of the lithium price, but the P2000 and Colina projects are progressing, which could unlock the next level of production.

Ongoing demand for lithium amid electric vehicles and other battery requirements could help drive the lithium price higher, or at least absorb the higher supply without detrimental impacts.

AMP Ltd (ASX: AMP)

AMP is another ASX-listed company with broad expert backing. The ASX financial share offers several services, including banking, investments, and superannuation. It also has increasingly important Chinese partnerships.

According to Commsec, there are currently nine analyst ratings on the business, with seven of those being buy.

The FY26 half-year result was another impressive result for a business that’s steadily turning things around after a difficult several years.

It said that in the six months to 30 June 2026, underlying net profit grew 33% to $174 million, with statutory net profit after tax (NPAT) rising 57% to $154 million.

Assets under management (AUM) increased to $167.6 billion, reflecting growth in AMP’s wealth and retirement business.

The platforms’ net cash flows increased 33% to $3.1 billion for the half, and superannuation and investments delivered its first positive half-year net cash flow result since 2017.

Perhaps most importantly, the contribution from AMP’s China partnerships more than doubled to $56 million, supported by CLPC AUM growth to approximately RMD 2.6 trillion.

With that result, the ASX financial share announced an additional $150 million share buyback and an interim dividend of 3 cents per share.

According to the projection on Commsec, the AMP share price is valued at 19x FY26’s estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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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.

There are a lot of ASX dividend shares for investors to choose from on the Australian share market.

To narrow things down, let’s take a look at one that could be among the best to buy as October approaches fast.

Which ASX dividend share?

The dividend share that could be a best buy is HomeCo Daily Needs REIT (ASX: HDN).

It is a REIT with a focus on large format retail, neighbourhood centres, and health and services.

The company counts Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW) as tenants.

Upgraded

According to a note out of Bell Potter this morning, the broker has upgraded this ASX dividend share on the belief that it is significantly undervalued. It said:

As the dust settles from reporting season we revisit HDN, upgrading to a Buy recommendation on relative valuation, supported by earnings trajectory and nondiscretionary retail fundamentals. 

Valuation is oversold – HDN trades -2 std deviations below its 5-year average discount to NTA (-31.4% vs -13%) and at 12.0x P/E, a discount to the passive REIT peer average of 14.1x. The stock has fallen -13.3% since results and underperformed peers (HDN -19.1% vs XPJ -14.9%) over 3 months, a reaction we view as disproportionate to the underlying -2.2% FY27 earnings decline. Indeed, historically +2 or -2 standard deviations has been a strong indicator for externally managed REITs mean reversion and outperformance.

Bell Potter thinks now could be a good time to buy given its forecast for earnings to bottom in FY 2027. It adds:

We expect earnings to trough in FY27, with growth returning in FY28 (+2.5%) as the incremental mark-to-mkt of debt costs lessens, asset are divested accretively, and developments complete at >7% target ROIC.

It also believes longer term retail undersupply is supportive. Bell Potter said:

Retail supply completions have run well below trend (90k sqm p.a. average FY22-25 vs a 158k sqm 10-year average), driving vacancy down and rental growth up across the neighbourhood/ LFR formats HDN is exposed to, supporting ~+6% re-leasing spreads and further cap rate compression through 2029.

Big returns

The note reveals that Bell Potter has upgraded the ASX dividend share to a buy rating (from hold) with a trimmed price target of $1.20 (from $1.25).

Based on its current share price of $1.05, this implies potential upside of 14.3% for investors over the next 12 months.

The broker is also expecting dividends of 8.6 cents per share in FY 2027 and FY 2028, before an increase to 8.8 cents per share in FY 2029.  This represents dividend yields of 8.2%, 8.2%, and 8.4%, respectively.

Commenting on its upgrade, Bell Potter said:

HDN has materially underperformed and screens as oversold, trading at an 8.1% div yield and 12.0x P/E (vs 6.9% & 14.1x passive REIT sector avg), despite FY27 marking the trough in earnings. We see growth returning in FY28 (+2.5%) with stable topline growth supported by favourable retail sector supply/demand dynamics. We upgrade HDN to a Buy recommendation following its recent underperformance (- 19.1% last 3 months vs XPJ -14.9%).

The post Is this the best ASX dividend share to buy in October? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. 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 down 2% over 12 months.

Yesterday, the ASX 200 dropped sharply after the Reserve Bank announced a widely anticipated 0.25% increase to the official cash rate.

Australia’s cash rate is now at a 15-year high of 4.6%.

Investors looking for opportunities in today’s weak market might like to heed the advice of experts.

Let’s check out some new ratings on three ASX 200 shares.

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is down 40% over 12 months. 

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

Analyst Chami Ratnapala said: 

Premier Investment’s FY26 result was in line with expectations, with Premier Retail EBIT (Pre-AASB 16 ex-Peter Alexander UK and other non-recurring items) of ~$176m pre-reported in Aug.

The incremental update in the result was the early FY27 trading with global sales and gross profit $ (on a constant currency basis) for the first 7 weeks +1% on pcp.

While we expect a period of slow growth for PMV near to medium term, we view PMV’s forward multiple as attractive considering the Premier Retail division together with PMV’s equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A.

New Hope Corporation Ltd (ASX: NHC)

The New Hope Corporation share price is up 42% over 12 months. 

Michael Gable from Fairmont Equities has a hold rating on this ASX 200 coal share.

On The Bull, Gable said: 

I remain bullish about this thermal coal producer, as the war in Iran is leading other countries to lift demand for thermal coal to offset instability in gas markets.

The company generated saleable coal production of 11.5 million tonnes in full year 2026, up 7.6 per cent on the prior corresponding period.

Production was above market expectations as was the final, fully franked dividend of 30 cents a share.

The share price uptrend since early July is sustainable, in my view.

Xero Ltd (ASX: XRO)

The Xero share price is down 63% over 12 months. 

Gable has a sell rating on this ASX 200 tech share, and explained:

In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent. The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

The post Buy, hold, sell: Premier Investments, New Hope, Xero shares 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.