Tag: Stock pick

National Australia Bank Ltd (ASX: NAB) shares could be a pleasing passive income option, depending on what dividends the ASX bank share ends up paying.

Banks like NAB have can deliver a solid dividend yield thanks to its fairly low price/earnings (P/E) ratio and generous dividend payout ratio.

NAB’s profit is fairly consistent due to the nature of banking. Borrowers repay their loans every month, providing NAB with resilient cash flow.

Let’s take a look at what experts expect for NAB’s dividend in the coming years.

FY26

We’re close to the end of the 2026 financial year for NAB, which ends in September 2026. The last we heard from the ASX bank share was the three months to 30 June 2026.

Its FY26 third quarter saw the bank generate statutory net profit after tax (NPAT) of $1.81 billion, an increase of 32% compared to the quarterly average of the FY26 first half.

Revenue grew by 2% compared to the first-half FY26 quarterly average, and 5% year-over-year. Cash earnings of $1.83 billion were up 4% year-over-year, and 2% compared to the FY26 first-half quarterly average.

It’s not a lot of growth, but it’s growth nonetheless at a difficult time.

Its credit impairment charges came to $299 million. Within that, its collective provision charges were $119 million, driven by business lending volume growth and a deterioration in performing book asset quality. It’s something to keep an eye on amid higher interest rates and potential stress related to the Middle East conflict.

According to the projection on CMC Invest, NAB could pay an annual dividend per NAB share of $1.70, which would be the same as FY25.

FY27

The 2027 financial year could see an improvement in the bank’s financials, according to the earnings and dividend projections. Forecasts are not guaranteed to happen of course, but I think any growth during the current period would be impressive.

According to the projection on CMC Invest, the ASX bank share is forecast to slightly increase its annual payout to $1.705 per NAB share.

FY28

The final year of this series of projections could be the best of all for shareholders of National Australia Bank.

The forecast on CMC Invest suggests that the business could accelerate the growth of its dividend, taking the annual payout to $1.73 per NAB share.

At that potential level, the ASX bank share could deliver a grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.

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

More reading

• Here are the most popular ASX share superannuation investments in SMSFs
• Is NAB one of the best ASX dividend shares to buy?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• If I invest $5,000 in NAB shares, what passive income will I receive in FY27?
• Which big 4 bank stock will rise the most before the end of 2026?

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.

The ASX share market is always throwing up opportunities for us to consider. Sometimes it’s a great update or a lower share price that reveals the opportunity.

I’m going to look at two ASX shares that are very positively rated by experts, with lots of buy calls on the stocks.

When one expert thinks a business is a buy, it could be interesting idea. When there are numerous buy ratings, that could be a clear opportunity.

Netwealth Group Ltd (ASX: NWL)

Netwealth describes itself as a financial services company. It provides a number of services including superannuation (accumulation and retirement income products), investor-directed portfolio services for self-managed super and non-super investments, managed accounts, managed funds, SMSF admin services and non-custodial admin and reporting services.

According to CMC Invest, there have been 12 ratings on the business within the last three months. Nine of those analyst calls were a buy and three were a hold. The average price target of those 12 ratings was $27, implying a possible rise of 43% over the next year, from where it is at the time of writing.

The company continues to win more funds under administration (FUA), grow market share and win more advisors.

The ASX share reported that in FY26, total income grew 20.6% to $391.1 million, operating profit (EBITDA) rose 18% to $192.9 million, and net profit after tax (NPAT) climbed 16.2% to $135.4 million.

Netwealth expects FY27 FUA net inflows of between $18 billion to $20 billion, an increase of between 17% to 30% compared to FY26. It also recently announced the $20 million acquisition of Paradino, a leading AI-enabled advice workflow and automation platform for financial advisors.

Paladin Energy Ltd (ASX: PDN)

The other ASX share I’ll highlight is Paladin Energy, a uranium producer with 75% ownership of the Langer Heinrich Mine in Namibia.

It’s also progressing development of the Tier-1, high grade and shallow Patterson Lake South project in northern Saskatchewan. The ASX share has a portfolio of exploration assets within the province’s highly prospective Athabasca Basin and also at the Michelin project in Newfoundland and Labrador.

On top of that, it owns uranium exploration assets in Queensland and Western Australia.

According to CMC Invest, there have been 13 analyst ratings on the business within the last three months. Ten of those analyst calls were a buy, one was a hold and two were a sell. The average price target of $13.55 suggests a possible annual rise of 33% from where it is at the time of writing.

FY26 was a strong year for the business. Its average realised (sold) price rose 7% to US$70 per pound, revenue grew 71% to US$304 million, gross profit improved $78.3 million to $52.2 million and operating cash flow surged $41.5 million to $37.7 million.

As we can see, its financials are significantly improving and the company is working unlocking further uranium production in the future.

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

More reading

• Why are Netwealth shares crashing 6% on Friday?
• Netwealth faces class action after compensation payments
• Boss Energy vs Paladin Energy: Which ASX uranium stock wins?
• 3 ASX shares down 40% to 80% I’d buy on the cheap
• Buy, hold, sell: Netwealth, Tabcorp, Healius shares

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

If I were starting fresh with $50,000 to invest today, I would keep things fairly simple.

I would want a portfolio with exposure to different parts of the economy, some global diversification, and businesses I would be comfortable holding for many years.

Rather than spreading the money across dozens of investments, I would use one broad exchange-traded fund (ETF) as a foundation and build around it with a handful of ASX shares I particularly like.

Here is how I would allocate the full $50,000.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

I would start with $12,000 in the VGS ETF.

The fund gives investors exposure to a large portfolio of companies across developed markets outside Australia, including major businesses from the United States, Europe, and Asia.

For me, this provides an important diversification base. Instead of relying entirely on the Australian economy and a handful of individual companies, part of the portfolio would be spread across over a thousand global businesses and numerous industries.

That would make the Vanguard MSCI Index International Shares ETF my largest single allocation.

Commonwealth Bank of Australia (ASX: CBA)

I would put $8,000 into Commonwealth Bank.

CBA gives the portfolio exposure to Australia’s banking sector through a business with leading positions across home lending, deposits, and digital banking.

I also like the combination of earnings resilience and dividends it can bring to a long-term portfolio.

The valuation can become stretched at times, so I would not want to make the position too large. But I would still want CBA as part of my starting portfolio.

BHP Group Ltd (ASX: BHP)

Another $8,000 would go into BHP shares.

The mining giant adds exposure to commodities including iron ore and copper, providing a source of earnings quite different from CBA and the global companies held through the VGS ETF.

I am particularly positive on copper’s long-term outlook as investment in power networks, renewable energy, data centres, and electrification drives demand.

BHP would also add some dividend income to the portfolio, although payouts will naturally move with commodity conditions.

CSL Ltd (ASX: CSL)

I would allocate $6,000 to CSL shares.

The healthcare giant has global operations across plasma therapies, vaccines, and specialised medicines.

After a difficult period for the shares, I think there is an attractive opportunity if CSL can continue improving earnings and margins over the coming years.

It also gives the portfolio another source of growth that is less dependent on Australian economic conditions.

ResMed Inc. (ASX: RMD)

I would put $6,000 into ResMed shares.

The company is a global leader in devices and masks used to treat sleep apnoea, giving it exposure to a substantial healthcare market.

For example, management estimates that there are over 1 billion sufferers of sleep apnoea globally, with the majority undiagnosed.

As a result, ResMed is the type of high-quality global business I would be comfortable owning for many years.

Wesfarmers Ltd (ASX: WES)

I would allocate $5,000 to Wesfarmers shares.

Through businesses including Bunnings, Kmart, and Officeworks, Wesfarmers provides exposure to some of Australia’s strongest retail operations.

I also like its history of disciplined capital allocation and willingness to invest across different industries when opportunities arise.

That makes it a strong long-term portfolio holding in my view.

Xero Ltd (ASX: XRO)

Finally, I would invest $5,000 in Xero shares.

Its accounting software is deeply embedded in the operations of small businesses and accountants, while its international presence gives the company plenty of room to grow.

This would be one of the portfolio’s more growth-focused positions and provide additional technology exposure alongside the global holdings inside the VGS ETF.

Foolish takeaway

If I were investing $50,000 from scratch, this is the sort of balance I would want.

The VGS ETF would give me broad global diversification from day one, while CBA, BHP, CSL, ResMed, Wesfarmers, and Xero would let me put additional money behind individual businesses I believe can perform well over the long term.

I think that gives the portfolio a strong foundation without overcomplicating it.

The post How I’d build a $50,000 ASX share portfolio today appeared first on The Motley Fool Australia.

More reading

• Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026?
• Xero shares have crashed 64%. Here’s why I’m buying
• Fund managers are loading up on CSL shares. Here’s why
• 5 ASX 200 shares upgraded by experts this week
• CBA vs Telstra: Which ASX blue-chip is better for passive income?

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended BHP Group, CSL, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue vs Wesfarmers shares: Which is better for passive income?

Weighing up Fortescue Ltd (ASX: FMG) and Wesfarmers Ltd (ASX: WES) shares is a classic fork in the road for Aussie investors hunting for passive income. Both are giants of the ASX and reliable dividend payers—but that’s about where the similarities end. With one rooted in iron ore and the other sprawling across retail, energy, and healthcare, the choice between Fortescue and Wesfarmers shares could shape the nature of your dividend stream and the risk in your portfolio. Here’s how they stack up for those of us keen on generating income from our investments.

The case for Fortescue

Fortescue is one of the world’s largest iron ore producers, operating huge mines and infrastructure assets in the Pilbara region of Western Australia. Since getting its ASX start in 1987, Fortescue has built a global reputation for exporting iron ore, with expansion into integrated infrastructure like heavy haul rail and port facilities. This scale makes it a powerhouse among miners.

What stands out for Fortescue is its juicy dividend—boasting a market-leading fully franked yield of 6.46%, if you take the most current snapshot. Dividends have historically been consistent, fully franked, and generous, with recent payments including $0.62 interim and $0.46 final dividends (all at 100% franking). The company’s P/E ratio of 12.81 suggests the market isn’t pricing in runaway growth, but that’s typical for resources—what Fortescue delivers is strong cash flow, fuelling those dividends. Bear in mind, though, the shares are down 19.1% in 2026 year to date, reflecting the ups and downs tied to iron ore prices.

The case for Wesfarmers

Wesfarmers is Australia’s quintessential conglomerate, with interests spanning Bunnings Warehouse (the hardware titan), Kmart and Target, Officeworks, Priceline (health and pharmacy), plus chemicals and fertilisers. Since its origins as a farmers’ co-op, Wesfarmers has become a fixture in many Aussie portfolios—appreciated for its diversification and steady management.

Dividend lovers take comfort in Wesfarmers’ consistent and long history of payments, also at 100% franking. Its current yield sits at 3.05%, which is solid but less than half that of Fortescue’s on paper. Recent dividends include $1.02 interim and $1.20 final declared for 2026, also fully franked. The P/E, at 28.71, is much higher than Fortescue’s—a function of its diversified earnings and the stability the conglomerate offers. Shares are down 7.6% year to date in 2026, which is less than the slide seen at Fortescue.

Valuation comparison

With both companies sitting among the ASX’s top names, their market caps are hefty: Wesfarmers at $83.20 billion and Fortescue at $51.57 billion. But the numbers that shine for income investors are dividend yield, P/E, and franking. Here’s a quick look:

Metric	Fortescue	Wesfarmers
Market Cap	$51.57 billion	$83.20 billion
P/E Ratio	12.81	28.71
Dividend Yield	6.46%	3.05%
Dividend Franking	100%	100%
Earnings Per Share	0.931	2.534
Dividend Per Share	1.08	2.22

Note: Wesfarmers’ P/E ratio is much higher than Fortescue’s, reflecting its diversified and arguably more stable business mix. Both companies offer 100% franking, so the tax advantage is even.

Recent share price performance

Looking at how the shares have moved recently can highlight sentiment and risk. Comparing the period of 25 August to 22 September 2026:

• Fortescue shares slid 19.1% year to date and experienced periods of volatility over the past month, with swings both up and down. Standouts include a sharp 4.6% dip on 2 September and several other days with moves over 2%—reminding us that resources stocks are always at the market’s mercy when it comes to commodity prices.
• Wesfarmers shares are down just 7.6% over the same period in 2026. The volatility has been notably less wild than Fortescue, with changes mostly under 1% for most days. The steepest daily move was -4.6% on 27 August, but otherwise Wesfarmers’ price chart is a much gentler ride.

Which is the better buy?

If my main goal is passive income, my pick would be Fortescue. That 6.46% fully franked yield, backed by a long streak of generous dividend payments, is hard to overlook if dividend flow is my top priority. Yes, there’s a trade-off—the ride can be bumpy, and much depends on iron ore prices. Investors in Fortescue need to accept that resource shares will always be at the mercy of the commodity cycle.

Wesfarmers, by comparison, offers stability and sector diversification, but at a much steeper P/E and with only half the yield. If I were after more defensive exposure and lower share price swings, I’d lean toward Wesfarmers—but my dividends would be notably smaller, at least for now.

For pure passive income, Fortescue takes the cake for me. But as always, diversification and risk appetite matter—so it’s worth thinking about how either of these fits within your own portfolio goals.

The post Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026? appeared first on The Motley Fool Australia.

More reading

• How I’d build a $50,000 ASX share portfolio today
• 5 ASX 200 shares upgraded by experts this week
• Super Retail Group vs Wesfarmers: Dividend showdown for Aussie investors
• What do brokers tip for Fortescue shares over the next 12 months?
• Could Wesfarmers shares reach $100 in 2027

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 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. 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.

It was a rather depressing end to the trading week for the Australian share market this Friday. After opening sharply lower this morning, the S&P/ASX 200 Index (ASX: XJO) stayed in red territory all day, closing with a 0.43% loss. That leaves the index at a flat 8,665 points as we head into the weekend.

This sad end to the local trading week for ASX investors comes after a more nuanced night of trading over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a bad mood, losing 0.31% of its value.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) managed to hold its own, rising a slight 0.012%.

Let’s get back to ASX shares now though and take a closer look at how the various ASX sectors traversed today’s tough trading conditions.

Winners and losers

There were only a couple of sectors that held their value this Friday. But first, let’s get to the far more numerous red sectors.

Leading said losers this session were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a rough one, tanking by 1.66%.

Consumer discretionary stocks were in the firing line today too, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) plunging 1.36%.

Joining them were utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) cratered 1.25% today.

Industrial stocks were also on the nose, as you can see from the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.87% dive.

Mining shares had a day to forget as well. The S&P/ASX 200 Materials Index (ASX: XMJ) suffered a 0.84% swing against it this Friday.

Healthcare stocks didn’t live up to their name this session, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) shedding 0.79% of its total.

Communications shares matched that result. The S&P/ASX 200 Communication Services Index (ASX: XTJ) gave up 0.79% as well.

Gold stocks were no safe haven, evidenced by the All Ordinaries Gold Index (ASX: XGD)’s 0.48% tumble.

Real estate investment trusts (REITs) weren’t much better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) ended the day down 0.33%.

Even energy shares weren’t spared, with the S&P/ASX 200 Energy Index (ASX: XEJ) dipping 0.3%.

That’s it for the red sectors though, so let’s get to the good stuff.

Leading the winners this Friday were consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was a harbour in the storm, shooting 0.73% higher.

Finally, the other sheltered corner of the market was financial shares, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.27% jump.

Top 10 ASX 200 shares countdown

Defence stock Electro Optic Systems Holdings Ltd (ASX: EOS) took out this Friday’s top index spot. Electro Optic Systems shares surged 5.995 hgiher today to finish the week at $11.32 each.

This big leap came after the company announced a new procurement for one of its weapons systems.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Electro Optic Systems Holdings Ltd (ASX: EOS)	$11.32	5.99%
Block Inc (ASX: XYZ)	$108.33	2.08%
Develop Global Ltd (ASX: DVP)	$5.32	2.11%
Auckland International Airport Ltd (ASX: AIA)	$6.87	1.93%
Genesis Minerals Ltd (ASX: GMD)	$7.65	1.19%
A2 Milk Company Ltd (ASX: A2M)	$6.65	1.22%
Coles Group Ltd (ASX: COL)	$23.19	1.27%
Karoon Energy Ltd (ASX: KAR)	$1.79	1.13%
Resolute Mining Ltd (ASX: RSG)	$1.22	1.67%
Ansell Ltd (ASX: ANN)	$44.21	1.14%

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.

More reading

• ASX 200 sinks to June lows as investors brace for another RBA rate hike
• EOS shares jump 7% as ASX 200 falls. Could $15 be next?
• Is the Coles share price a buy for its 5% dividend yield?
• 5 things to watch on the ASX 200 on Friday
• How to top up your superannuation if you’re 40 and falling behind

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 Block and Electro Optic Systems. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I won’t pretend to be an impartial observer tonight.

My Roosters are playing the Dolphins in the NRL preliminary final, with a place in next weekend’s Grand Final on the line.

I want them to win. Preferably by enough that I can enjoy the last ten minutes.

And should the unthinkable happen, I’ll still be a Roosters supporter tomorrow. I’m not about to change teams because somebody else had a better night.

With the AFL Grand Final tomorrow, I’m hardly alone in getting a little bit carried away this weekend.

That’s part of being a footy fan.

But it can be a pretty ordinary way to be an investor. (It infects our policy conversations, too, but that’s a whole other rant!)

Now, before you think I’ve suddenly abandoned long-term investing, let me explain.

I remain devoted to buying good businesses, at sensible prices, and giving them time to deliver.

But there’s a difference between giving a business time and giving it an unlimited supply of excuses.

Between patience and denial.

Between owning shares and wearing the jersey (or guernsey, if you’re in our nation’s south or west).

Imagine two football clubs having disappointing seasons.

One has a young squad, a sensible development plan and players who are getting better. The results aren’t there yet, but you can see what the club is building.

The other keeps promising that next year will be different, while making the same mistakes.

Both might call it a rebuilding year.

Only one has given you a reason to believe it.

And that’s where our footy analogy helps. I bet if you’re a football fan, you’re already thinking of clubs that fit into each category.

That’s also the distinction we need to make with our investments. And, unfortunately, it requires more work than checking the share price.

A falling price doesn’t, by itself, tell you that the business is broken.

Nor does a rising price prove that everything is going wonderfully.

The price is what other investors are prepared to pay, right now. It isn’t a complete assessment of the company’s future.

It might be right. Or wrong. It might change tomorrow. Or not.

So, what should we look at?

You’re already ahead of me, right?

You need to look at the business. Not the three-letter code on your screen.

Are customers still buying what it sells? Is it maintaining its competitive position? Is cash coming through the door? Can it comfortably handle its debts?

And, where something has gone wrong, is there credible evidence – or at the very least, a high likelihood – that the problem can be fixed?

Consider a hypothetical retailer spending money on a new distribution centre. Profits might suffer while it gets the facility running. If customers remain loyal and the investment does what management promised, patience might be entirely sensible.

Now imagine another retailer losing customers because a competitor offers something better. Management keeps talking about “challenging conditions”, but the competitor seems to be doing just fine. Yes, I’m looking at you, Myer Holdings Ltd (ASX: MYR) and DJs.

Those are very different scenarios… and neither can be diagnosed from a red number on a screen.

The danger is that, once we own something, we can start looking for reasons to defend it.

We liked the company enough to buy it. Perhaps we told a mate about it. Selling would mean admitting we got something wrong.

Thing is… sometimes we do. I’d rather acknowledge a mistake than keep losing money because of it.

It’s also possible that we didn’t make a mistake at the time, but that circumstances have changed. We need to recognise that.

On the other hand, I’d also rather endure an uncomfortable period than abandon a good business just because the market has lost patience.

Holding on, out of stubbornness? Selling to cauterise the wound and stop the pain?

They’re both bad ideas.

The right approach? Become more honest about why you still own what you own.

Here’s the question to ask, even before share prices start moving:

“What would have to happen for me to change my mind about this business?”

Not how much the share price might move – but what would need to change about the company itself.

Losing a competitive advantage, perhaps. Taking on more debt than it can sensibly manage. Discovering that the opportunity you thought existed was smaller than you’d assumed – either because you sized it wrong, or because the company just didn’t execute (Remember Woolworths Group Ltd (ASX: WOW)’s short foray into hardware? Yeah, that.)

Write that down before you need it. Then revisit it when meaningful new information arrives, rather than rewriting the test to excuse every disappointment.

Long-term investing should mean giving a sound investment case time to play out. It shouldn’t mean refusing to notice when that case has changed.

Your job isn’t to prove that every decision you’ve ever made was right.

It’s to make good decisions with the information you have now.

So, enjoy the footy. Be hopelessly biased. Leave one eye closed, at least until the final hooter/whistle/siren.

(But also, lay off the umpires and referees, and congratulate the other team if they win.)

And yes, be loyal to your portfolio… but its long term potential, not the ‘players’ inside it.

Tomorrow’s Grand Final? I’m a New South Welshman, talking about a game in Victoria, played between a team from Queensland and one from Western Australia. Fair to say, I have no dog in that fight.

But tonight?

Go the mighty Chooks! #EastsToWin

Fool on!

The post Don’t treat your companies like your footy team appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Xero shares have crashed 64%. Here’s why I’m buying
• Woolworths shares jump 31% in 2026. Is there any upside left?
• Why I’d buy the dip in top ASX 200 gold stocks like Newmont, Northern Star and Evolution Mining shares today
• Could two more RBA rate hikes push Australia into recession?

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

Just when it looked like Xero shares might finally find some support, the selling has continued on Friday.

Xero Ltd (ASX: XRO) shares are currently down 3.21% to $57.125, having fallen as low as $56.22 earlier in the session.

That leaves the stock trading around 64% below its value 12 months ago and almost 50% lower in 2026.

And yet, I’m becoming increasingly bullish.

While the share price suggests something has gone terribly wrong, Xero’s underlying business continues to deliver impressive growth.

At these levels, I think investors could be looking at an excellent long-term buying opportunity.

Here’s why.

Xero’s business is still growing

Looking at Xero’s latest financial results, you’d be forgiven for wondering why its shares have fallen so far.

According to its FY26 results, operating revenue increased 31% to NZ$2.75 billion, while adjusted EBITDA climbed 18% to NZ$757.4 million.

The company also added 506,000 customers, taking its global customer base to 4.92 million.

Annualised monthly recurring revenue jumped 37% to NZ$3.27 billion, while free cash flow reached NZ$554 million.

Those are impressive numbers, particularly when you consider what’s happened to the share price.

Admittedly, net profit declined 27% to NZ$167.4 million, with acquisition-related costs weighing on earnings.

But I’m far more interested in where the business is heading over the next few years.

Management expects FY27 revenue of NZ$3.62 billion to NZ$3.73 billion, alongside adjusted EBITDA of NZ$860 million to NZ$920 million.

That’s another substantial increase in revenue, and a good indication that Xero’s growth story is far from over.

Why I’m bullish on Xero shares

I think investors are overlooking just how much growth Xero still has ahead of it.

The company has previously estimated its addressable market at approximately 100 million small and medium-sized businesses worldwide.

With fewer than 5 million customers today, there’s still an enormous opportunity to expand.

And it’s not just about attracting more subscribers.

Its acquisition of Melio gives Xero a stronger position in the US payments market, opening up another opportunity to grow revenue beyond accounting subscriptions.

I also think AI could make Xero’s platform more valuable over time by automating more of the financial tasks involved in running a small business.

The company already has an established platform, millions of customers, and access to valuable financial data.

With revenue expected to grow by around 30% in FY27, I think the market is seriously underestimating Xero’s long-term potential.

All in all, I see an excellent opportunity to buy a high-quality growth business at attractive levels.

The post Xero shares have crashed 64%. Here’s why I’m buying appeared first on The Motley Fool Australia.

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

Woolworths Group Ltd (ASX: WOW) shares have stormed higher through the first nine months of 2026.

At the time of writing on Friday afternoon, the shares are trading in the green, up around 1% to $38.51. 

The latest increase means the shares are now up an impressive 31% for the year to date, and they’re 44% higher than 12 months ago.

The increase has been pretty stable and consistent, too.

The supermarket giant’s stock has mostly trended upwards (with the exception of a dip in late April and a recovery a month later).

It looks like the growing share price is mostly driven by investor confidence that the company’s turnaround story is coming to fruition, after a difficult period in 2025.

The supermarket’s most recent price-sensitive news was the announcement of its impressive FY26 results in late August. It posted a 3.6% year-on-year increase in sales and a 6.7% increase in EBITDA (before significant items). On the bottom line, Woolworths achieved a 15.4% increase in its NPAT (before significant items) for the year.

As part of its FY26 results announcement, management declared a 52-cent per share dividend, up 15.6% from FY25.

It’s been tailwind after tailwind for Woolworths shares this year. Now the question is, is there any more upside left? Or has the ASX consumer staples stock finally reached a ceiling?

Buy, hold, or sell? Here’s what brokers forecast for Woolworths shares

The experts are divided.

Market Index data shows that brokers are split equally between a hold and a sell rating. The $37.57 average target price implies a potential 2% downside ahead.

On TradingView, the majority of analysts (nine out of 17) have a hold rating on the shares. Another six rate Woolworths shares are a sell/strong sell and two rate them as a buy.

The $39.67 average target price implies a potential 3% upside ahead. Although the range between the maximum and minimum is quite wide. Some tip the shares to fall 8% to $35.40, and others think they would increase 13% to $43.50, at the time of writing.

Shaw and Partners has a sell rating on Woolworths shares. The broker warns that the shares could struggle to outperform over coming months. It adds that the supermarket has experienced a strong recovery in the past year, and now much of the recent improvement is reflected in the share price.

Elsewhere, Bell Potter is more positive. The broker has a hold rating on Woolworths shares and a $42.35 target price. It was impressed with the company’s latest FY26 results but doesn’t think potential growth is high enough to warrant a buy rating.

Morgans has an accumulate rating and $43.50 target price. Following the supermarket’s results, the broker is more confident that its sales growth can be sustained.

The post Woolworths shares jump 31% in 2026. Is there any upside left? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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) gold stocks are getting ready to turn the calendar page on a tough month.

Indeed, while the ASX 200 has slumped 5.6% since market close on 25 August, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – is down as steeper 8.3%.

Although most gold stocks have still strongly outperformed over the past full year, with the All Ords Gold Index still up 22.1% in 12 months, compared to the 1.4% one-year losses posted by the ASX 200.

As for the three big Aussie gold miners I’d buy today, Newmont Corp (ASX: NEM) shares are down 8% in a month and up 45.3% in a year, while Evolution Mining Ltd (ASX: EVN) shares are down 13.9% in a month and up 33.2% in a year.

It’s a bit of a different picture for Northern Star Resources Ltd (ASX: NST) shares, which are down 9.5% in a month and also down 2% in a year.

As you may know, Northern Star has faced some difficulties on and below the ground this year. Those include lower grades at some of its mines as well as lower overall gold production for FY 2026.

But I believe the miner’s recent capex spend is set to pay off in FY 2027 and 2028, which should see a notable improvement in the share price performance.

What’s been pressuring the ASX 200 gold stocks?

The common headwind pressuring Northern Star, Newmont, and Evolution Mining shares over the past month has been a sharp retrace in the gold price.

Trading for US$4,294 per ounce today, the gold price is down 7.7% since 25 August.

The gold price is now also down around 21% from its record highs, posted on 28 January.

A lot of that fall can be pinned on the outbreak of the Iran war. The conflict has sent global energy prices surging, stoking inflation and pushing central banks, including the US Federal Reserve and the RBA, to increase interest rates. And gold, which pays no yield itself, tends to perform better in low or falling rate environments.

But the case for higher gold prices remains very much in play, which could usher in a big rebound for the recently beaten-down ASX 200 gold stocks.

What are the experts saying?

Hedge fund manager Raphael Lamm, who manages a long-short gold fund, expects that the falling gold price is likely to be short-lived.

Among the reasons Lamm expects a rebound in the price of bullion, which would also support ASX 200 gold stocks, is the “unsustainability of fiscal situations in key markets,” with the United States government debt recently topping US$40 trillion.

According to Lamm (quoted by Bloomberg):

While there’s been some headwinds to gold markets and the gold price since the Iran war, we think they’re very temporary in nature. Most of the key drivers of demand for gold are going to remain intact or even strengthen over the medium term…

We started to increase our long positions relatively aggressively when the gold price got below $4,000, and now we’re keeping it where it is, which is in the low- to mid-60% net long.

The post Why I’d buy the dip in top ASX 200 gold stocks like Newmont, Northern Star and Evolution Mining shares today appeared first on The Motley Fool Australia.

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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 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.

Australia could be facing another two interest rate hikes before Christmas, and that has one economist worried.

According to The Australian, HSBC chief economist Paul Bloxham has warned that the Australian economy could be heading for a difficult few months.

He believes the Reserve Bank of Australia (RBA) may need to lift rates again, despite signs of slowing growth.

And if he’s right, Aussies could be facing more than just higher mortgage repayments.

With the RBA meeting next Tuesday, his latest outlook gives borrowers and investors plenty to think about.

So, just how worried should Australians be?

HSBC sees recession risk climbing

Bloxham believes the RBA has a strong case to lift interest rates next week, followed by another increase in November.

But he warns that two more hikes could leave the Australian economy struggling to grow around the turn of the year.

He expects economic growth to come close to stalling in the December and March quarters.

That has him putting the risk of a technical recession at close to 50%.

A technical recession occurs when the economy contracts for two consecutive quarters.

For comparison, Bloomberg’s surveyed recession probability over the next 12 months is currently just 20%.

So, why is Bloxham particularly concerned?

He points to Australia’s weak productivity growth, which has left the economy with very little room to expand without pushing inflation higher.

Bloxham believes growth may need to slow considerably, or the economy may need to contract.

He says this could be necessary to bring underlying inflation back to target by late 2027.

Why are more rate hikes expected?

The RBA has already increased interest rates 3 times this year, taking the cash rate to 4.35%.

However, inflation remains above the central bank’s 2% to 3% target.

The latest ABS inflation figures showed annual headline inflation at 3.5% in July, while trimmed mean inflation remained at 3.6%. 

Higher oil prices and global inflation pressures are adding to the RBA’s concerns.

Earlier this week, RBA governor Michele Bullock warned that inflation risks were materialising, although she stopped short of committing to another rate increase. 

Meanwhile, yesterday’s employment report showed Australia’s unemployment rate increasing to 4.6% in August.

Employment rose by 39,500 people, but full-time employment declined by approximately 6,000. 

Those figures suggest the labour market is cooling, but inflation remains a concern.

What happens next?

The RBA will announce its next interest rate decision on Tuesday, 29 September.

But there’s another complication.

August’s inflation figures aren’t due until Wednesday, one day after the board meets.

That means policymakers will have to make their decision without another inflation reading.

The post Could two more RBA rate hikes push Australia into recession? appeared first on The Motley Fool Australia.

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HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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.