Tag: Stock pick

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market hasn’t been the same since OpenAI unleashed ChatGPT to the public three years ago. As of Dec. 4, the S&P 500 (SNPINDEX: ^GSPC) market index has posted a 75% total return since then. The tech-heavy Nasdaq-100 index gained a dividend-adjusted 118% over the same period.

But the kings of artificial intelligence (AI) are soaring far above these not-so-pedestrian returns. AI chip champion Nvidia (NASDAQ: NVDA) is up more than tenfold and AI platform master Palantir Technologies (NASDAQ: PLTR) more than doubled Nvidia’s stellar gains:

PLTR Total Return Level data by YCharts

But past performance is never a guarantee of future results. What matters to today’s investors is a fundamentally different question — which AI stock is the better investment for new money today?

When AI valuations go orbital

Let’s address the elephant in the room, or the rocket ship in the stratosphere directly above Wall Street. Palantir’s stock has gone absolutely parabolic in 2025, trading at roughly 109 times trailing revenue. That triple-digit figure is not a typo. For context, even during the dot-com bubble’s wildest moments, most high-flyers topped out around 50 times sales.

Nvidia, meanwhile, has seen its valuation actually compress even as its business keeps breaking records. At about 24 times revenue, it’s still priced for perfection. However, compared to Palantir, Nvidia’s stock price looks almost reasonable.

Mind you, Nvidia is already absolutely massive and it should be harder to keep the hypergrowth going from an annual revenue base of $187 billion. Palantir’s trailing-12-month sales look minuscule in comparison, stopping at $3.9 billion. The law of large numbers says that Nvidia’s sales growth must slow down at some point. Meanwhile, Palantir’s long-term value is limited by its focus on the smaller market of government contracts. The company is pushing into commercial contracts too, but how many businesses need military-style data analytics?

The political cycle wild card

Palantir’s recent surge coincides suspiciously with a favorable shift in the federal spending environment. The company’s government revenue, while growing at a respectable 40% year over year, suddenly seems poised for acceleration as Washington embraces AI-powered defense and intelligence applications.

But here’s the risk nobody’s talking about: government contracts follow political cycles. What happens if spending priorities shift after the 2026 midterms? What if the regulatory environment becomes less friendly to aggressive data analytics? Palantir’s commercial business is growing faster at 54%, but government contracts still represent nearly half of revenue. That’s a lot of exposure to political winds that can change direction every two years (with sharper shifts around the four-year presidential election cycle).

Nvidia faces its own unique challenge — its biggest customers are becoming its biggest competitors. Amazon, Alphabet, and Microsoft are all developing custom AI chips while still buying billions worth of Nvidia’s GPUs. It’s like selling weapons to armies that are simultaneously building their own armories. Nvidia can maintain this delicate balance, but it requires constant innovation and careful relationship management.

“Less overvalued” wins by default

I can’t believe I’m writing this, but at current prices, Nvidia is the better buy — and that’s despite my concerns about customer competition and a still-rich valuation. Here’s why:

• Valuation sanity: OK, “sanity” is a stretch but at 24x sales vs. 109x, Nvidia’s premium is at least loosely grounded in financial reality.
• Proven moat: CUDA’s ecosystem lock-in is real and tested, while Palantir’s competitive advantages remain harder to quantify.
• Diversification: Nvidia sells to everyone in AI; Palantir’s concentration in government and large enterprises limits its addressable target market.
• Profit machine: Nvidia’s 57% net margin vs. Palantir’s 20% shows who’s actually printing money today.

But here’s the real takeaway: Both stocks are priced for a perfect AI future that may not materialize as smoothly as bulls expect. Palantir needs flawless execution and continued government AI spending to justify its valuation. Nvidia needs to fend off increasingly capable competitors while maintaining its innovation edge. Both might actually succeed in the long run, but it won’t be easy. 

For investors seeking AI exposure today, the smartest move might be looking elsewhere in the ecosystem — perhaps at the hyperscalers building AI services, semiconductor equipment makers enabling the whole industry, or even “boring” companies successfully implementing AI to improve their operations. Sometimes the best investment isn’t choosing between two expensive options — but finding a completely different third path.

So, if forced to pick between these two AI titans, I’d reluctantly choose Nvidia. But I reduced my Nvidia exposure in 2025, converting some of my AI-boom paper gains into cash profits.

My highest-conviction call in this duel is simple: Neither stock really offers a compelling risk/reward balance for new money at December 2025 prices. The AI revolution is real, but that doesn’t mean every AI stock is a buy at any price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better artificial intelligence stock: Palantir Technologies vs. Nvidia appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Prediction: Nvidia stock is going to soar past $300 in 2026
• How to invest your first $1,000 in the share market the smart way
• Prediction: This AI stock will be the most surprising winner of 2026
• 3 ASX ETFs I’d buy right now to build wealth
• Here’s why Nvidia still is a multimillionaire-maker

Anders Bylund has positions in Alphabet, Amazon, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to buy a few, or even seven, ASX mining shares to slip into your Christmas stockings?

Then Macquarie Group Ltd (ASX: MQG) has some new stock upgrades for you.

In the broker’s latest Commodities Update report, it notes that for 2026:

In the short term (CY26) we are overweight Gold (Au) with a 22% increase to CY26 price to US$4,225/Oz; we are 8% above VA consensus. Our Spodumene prices are 15%/20% below consensus/spot for CY26, but we note our med-long prices are 15% above consensus.

We are even-weight (within 5% of consensus) on Iron Ore (Fe), Met-Coal, Aluminium (Al), Thermal Coal and Nickel (Ni) in CY26E, but note our Fe and Thermal outlooks weaken over time.

Here’s what that all boils down to for these seven upgraded ASX mining stocks.

From underperform to neutral

Two large-cap ASX mining shares just earned upgrades from an underperform rating to neutral.

The broker noted that Mineral Resources Ltd (ASX: MIN) shares were raised to neutral, with the diversified S&P/ASX 200 Index (ASX: XJO) miner seeing “large EPS changes in FY26/27 as iron ore and lithium prices are materially raised”.

With Macquarie’s bullish outlook on the gold price, ASX 200 gold stock West African Resources Ltd (ASX: WAF) also earned an upgrade to neutral.

Macquarie expects these five ASX mining shares to outperform

Turning to the Aussie mining stocks Macquarie expects to outperform in 2026, ASX 200 coal miner Whitehaven Coal Ltd (ASX: WHC) was raised from neutral to outperform.

Macquarie said:

WHC remains our preferred coal exposure, which benefits from an expanded earnings multiple from 4.0x to 5.0x due to a recent tightening of the spread against peers (BHP/RIO, etc).

In the diversified ASX mining share space, Macquarie said “We prefer Rio Tinto Ltd (ASX: RIO) to BHP Group Ltd (ASX: BHP) and prefer South32 Limited (ASX: S32) outright.”

The broker upgraded South32 to outperform “given prospects of an improved returns outlook and a favourable catalyst backdrop”.

And three ASX gold stocks join the outperforming list.

Macquarie raised Newmont Corp (ASX: NEM) to outperform, stating:

We switch our large-cap preference from NST to NEM, due to its relatively attractive valuation (P/NPV of 0.9x vs NST at 1.1x) and underperformance over the last three months with NEM +21% and NST +36%.

Ora Banda Mining Ltd (ASX: OBM) also earned an upgrade to outperform.

Macquarie noted:

We still expect gold to trade at historically high levels in the near-term while also being held back by an upturn in global growth and a monetary policy easing cycle that falls short of market expectations.

And stating, “we remain overweight gold”, Macquarie also raised ASX mining share Resolute Mining Ltd (ASX: RSG) to an outperform rating.

Happy Christmas stock shopping!

The post 7 ASX mining shares to buy for Christmas amid upgrades from Macquarie appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• After smashing 50 record highs in 2025, what’s ahead for the gold price and ASX gold shares like Northern Star in 2026?
• Why Andean Silver, Boss Energy, Chalice Mining, and Rio Tinto shares are falling today
• Should we be paying more attention to these two rocketing ASX small-cap mining stocks?
• BHP shares surge 8% on their way to reclaiming the No. 1 title from CBA

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are lots of ASX dividend shares to choose from on the local market.

To narrow things down, let’s take a look at two that Bell Potter thinks are among the best to buy in December.

Here’s what the broker is saying about them:

Harvey Norman Holdings Ltd (ASX: HVN)

This leading household goods retailer could be one of the best ASX dividend shares to buy now according to Bell Potter.

It highlights that the company is one of the most diversified retailers in terms of both categories and regions, while also benefitting from its significant property portfolio. It commented:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter has a buy rating and $8.30 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.32, this would mean dividend yields of 4.2% and 4.8%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been rated as a best buy by Bell Potter is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around ~85 stores under its flagship Universal Store brand. It is also expanding its presence with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

Bell Potter thinks its shares are undervalued, especially given its positive growth outlook. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

The broker has a buy rating and $10.50 price target on its shares.

With respect to dividends, Bell Potter is forecasting fully franked payouts of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.41, this would mean dividend yields of 4.4% and 4.9%, respectively.

The post 2 of the best ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

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• Where to invest $20,000 in ASX dividend shares
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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I believe owning Coles Group Ltd (ASX: COL) shares is a great option for dividends because of both its consistently rising passive income and the size of the dividend yield.

On top of the pleasing dividend, Coles has a defensive earnings base – we all need to eat, of course.

The business has grown its dividend each year since it was listed several years ago, and we’re going to take a look at how large the dividend could grow in the coming years.

FY26

Coles has started FY26 strongly, in the first quarter of FY26, it delivered group total sales revenue of $10.96 billion, representing 3.9% growth – this beat UBS’ expectations.

Broker UBS said that Coles supermarkets are executing strongly and leveraging key investments.

Those investments include Witron automated distributed centres, which are improving product availability in NSW and Queensland. Ocado customer fulfilment centres (CFCs) helped drive 28% online sales growth in the FY26 first quarter.

UBS also pointed out that Coles supermarkets are delivering ongoing promotional effectiveness, which are fewer and better, and product ranging is better (which is increasingly store-led), according to UBS. Both of these advantages have been enabled by the supply chain.

With the effective execution of its strategy, UBS is projecting that the business could decide to pay an annual dividend per share of 79 cents following an increase of the company’s net profit.

If Coles does decide to pay that projected amount, it would mean a grossed-up dividend yield of 5.2%, including franking credits.

FY27

The company could see further dividend growth in the 2027 financial year, thanks to the strength of its revenue and net profit.

UBS is forecasting the business could grow its dividend to a pleasing 93 cents per share in FY27. If that comes true, it would translate into a grossed-up dividend yield of 6.1%, including franking credits, at the current Coles share price.  

FY28

The 2028 financial year could get even better for owners of Coles shares.

In FY28, the board of directors of Coles is projected by UBS to declare an annual dividend per share of 97 cents. If that happens, the business could have a grossed-up dividend yield of 6.3%.

FY29

The broker is projecting that the business could deliver more profit and dividend growth for investors in FY29. UBS is currently suggesting the Coles annual dividend per share could climb to $1.01.

If that happens, Coles would deliver investors a grossed-up dividend yield of 6.6%, including franking credits, using the valuation at the time of writing.

FY30

The final year of this series of projections is expected to see the biggest dividend of all.

UBS forecasts that Coles may deliver investors an annual dividend per share of $1.04. That means the business could provide a grossed-up dividend yield of 6.8%, including franking credits.

The post Here’s the dividend forecast out to 2030 for Coles shares appeared first on The Motley Fool Australia.

More reading

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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 number of reasons why ASX blue-chip shares usually make strong investments each year. Stability, strong earnings generation each year and (usually) a good dividend yield together can be very appealing.

I wouldn’t focus purely on the dividend income. I think it’s a good idea for investors to ensure that the target business has a good outlook for earnings growth too, otherwise the dividends may not be reliable, with the share price lacking that organic tailwind.

The two ASX blue-chip shares I’m going to highlight both have strong dividend yields.

Telstra Group Ltd (ASX: TLS)

The Australian telecommunications giant is one of the most impressive names for payouts because of how generous it is with its dividend payout ratio. In recent times, it has paid out close to all of its net profit generation each year, though it has held onto a higher proportion of its cash earnings.

The company has invested significant sums into its spectrum assets and 5G network to ensure that it has the most appealing network for customers. More subscribers mean the business can spread its costs across more users.

We saw this effect in the FY25 result, with mobile revenue climbing 3% and operating profit (EBITDA) climbing 5%.

I’m expecting the company’s EBITDA and net profit margin to slowly rise over the rest of the decade. I’m particularly optimistic this can happen if Telstra can win more broadband customers onto its wireless (5G-powered) offering, which would enable a higher margin from that household (rather the margin going to the NBN).

I think it’s quite likely the ASX blue-chip share will hike its FY26 annual dividend to at least 20 cents per share, which could mean a grossed-up dividend yield of 5.8%, including franking credits. If it paid a dividend of 21 cents per share, it’d be a grossed-up dividend yield of 6%, including franking credits.

Charter Hall Long WALE REIT (ASX: CLW)

The other business I want to highlight for its yield is a real estate investment trust (REIT) that owns a diversified portfolio of properties which are, on average, long-term rental leases.

Charter Hall Long WALE REIT has a weighted average lease expiry (WALE) of around nine years, meaning its rental earnings are locked in for the long-term.

The business owns properties in a number of areas including service stations, hotels and pubs, telecommunication exchanges, data centres, distribution centres and more. I like that this lowers the risk of being too exposed to one subsector.

This REIT has lots of blue-chip tenants, which is one of the reasons why it’s able to provide investors with pleasing defensive earnings. Its rental income (on a per-property basis) is growing thanks to regular rental increases that are either fixed or linked to inflation, providing a tailwind or rental profits and the distribution.

Charter Hall Long WALE REIT is expecting to grow its FY26 distribution to 25.5 cents per security, translating into a forward distribution yield of 6.3% thanks to its 100% distribution payout ratio.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• The smart way to make a $25,000 passive income from ASX shares
• Invested in Telstra shares? Here are the dividend dates for 2026
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• Brokers name 3 ASX dividend shares to buy in December
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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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sigma Healthcare Ltd (ASX: SIG) share is slowly slipping toward this year’s record low of $2.74. Monday it lost another 2% to close at $2.79.

In 2025, the $33 billion dollar pharmacy group has lost 5.2% in value and in the past 6 months 10%. To put this in context, the S&P/ASX 200 Index (ASX: XJO) gained 5.4% this year.

The tumble has left some investors are asking: is Sigma Healthcare share a buy-the-dip opportunity?

Short-term headwinds

The slide in the Sigma Healthcare share reflects growing caution around short-term headwinds. Beneath the turbulence, Sigma remains a major player in Australian health care, and there are reasons to believe its long-term outlook still holds promise.

Sigma is a leading Australian pharmaceutical wholesaler and retail group, supplying medicines and healthcare goods to community pharmacies and operating brands such as Amcal, Discount Drug Stores, and Chemist Warehouse.

Rocketing integration expenses

So why has the price of the ASX healthcare share dropped? A major factor has been a steep increase in transaction and integration costs tied to its recent merger with Chemist Warehouse and restructuring efforts. The extra costs weighed on profitability, and the sharp focus on merger expenses put pressure on investor confidence.

Moreover, past operational missteps have left a mark. A poorly executed enterprise resource planning (ERP) rollout a couple of years ago disrupted supply chains. This triggered customer losses and prompted many pharmacies to re-contract with other wholesalers.

That dented market share and eroded trust in execution, forcing Sigma to restructure and simplify its business.

Powerful Chemist Warehouse synergies

Still, the Sigma Healthcare share also has solid strengths. The company’s recent merger with Chemist Warehouse has dramatically expanded Sigma’s scale, bringing together wholesale, distribution and retail under one roof. This model could deliver powerful synergies.

Additionally, the demographics underpinning demand remain favourable. An ageing population combined with rising demand for over the counter and health-related products gives the company a foundation for long-term stability.

On the flip side, risks remain. The steep integration and merger costs have dented earnings in the near term, making Sigma Healthcare shares vulnerable until those investments begin to pay off.

Is Sigma Healthcare share a buy, hold or sell?

Looking ahead, analysts offer a cautious but mixed picture. Some see value now that the shares are near recent lows, noting that the merger gives Sigma a shot at becoming Australia’s leading pharmacy-wholesale-retail group.

Broker’s recommendations span from strong buy to strong sell with an average target price over 12 months at $3.21, representing 15% upside.

UBS currently has a price target of $3.40, implying a potential gain of 18% over the next year. The broker is also expecting the company to pay an annual dividend of 4 cents per share in the 2026 financial year.

Ord Minnett has a buy recommendation on Sigma Healthcare.

The broker recently noted:

SIG has started strongly in fiscal year 2026, with Chemist Warehouse posting double-digit network sales growth and an upgraded synergies target. Furthermore, we continue to expect upside via the international rollout and private label strategies.

The post Is Sigma Healthcare share a healthy buy, after hitting new lows? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 8,624.4 points.

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

ASX 200 expected to fall again

The Australian share market looks set to fall on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.35% lower. In late trade in the United States, the Dow Jones is down 0.55%, the S&P 500 is 0.5% lower, and the Nasdaq has fallen 0.35%.

Oil prices fall

It could be a poor session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$58.81 a barrel and the Brent crude oil price is down 2.1% to US$62.44 a barrel. This was driven by optimism over the Russia-Ukraine peace deal.

Reserve Bank meeting

All eyes will be on the Reserve Bank of Australia today when it makes a decision on Australian interest rates. According to the ASX 30 Day Interbank Cash Rate Futures December 2025 contract, the market is pricing in only a 3% chance of a rate cut at today’s meeting. The big question, though, is whether the central bank will give hints about whether the cuts are over and hikes are coming in 2026.

Hold Cobram shares

Cobram Estate Olives Ltd (ASX: CBO) shares are a fairly valued according to analysts at Bell Potter. This morning, the broker has reaffirmed its hold rating and $2.90 price target on the olive oil producer’s shares. It said: “There is no change to our Hold rating. While offering ~10% EPS CAGR to FY28e (on a R24M basis), CBO trades at ~32x FY26e EPS (R24MA basis). This multiple vs. growth equation does not stand out as relative value in the sector.”

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session on Tuesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.6% to US$4,216.7 an ounce. Traders appear cautious ahead of the US Federal Reserve’s interest rate decision this week.

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

More reading

• Here are the top 10 ASX 200 shares today
• Charter Hall Group declares interim distribution for 1H FY26
• After smashing 50 record highs in 2025, what’s ahead for the gold price and ASX gold shares like Northern Star in 2026?
• APA Group gains $1bn extra funding capacity after S&P credit rating change
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX bank shares make up an important part of many investors’ portfolios. Surprisingly, it is ANZ Group Holdings (ASX: ANZ) that has brought the best returns amongst the big four banks this year. 

Since the start of the year ANZ shares have risen more than 22%.

For context, the S&P/ASX 200 BANKS (ASX: XBK) is up 8.7% in the same period. 

Why the strong rise?

In January, ANZ shares were trading at roughly $28 and hit a yearly high in November of almost $39. 

That’s an increase of more than 35%. 

This was driven by strong business credit, real estate credit growth and investor mortgage growth. 

However since then, the share price has slid almost 10%. 

Analysts at Macquarie indicate this could be due to early signs of revenue underperformance. 

Is there any upside left for ANZ shares?

After such a strong year, investors may feel they have missed the boat on ANZ shares. 

Sentiment is seemingly mixed amongst experts. 

Yesterday, The Motley Fool’s Samantha Menzies reported that Macquarie has neutral rating on ANZ shares with a target price of $35

This indicates the share price is hovering close to fair value. 

However, Greg Burke, Equity Strategist at Wilsons Advisor/Canaccord Genuity said in November that ANZ shares are comfortably the ‘best value’ bank on all key valuation metrics, while offering the most attractive yield.

ANZ has reset its cost base lower and has a strong capital position. ANZ’s 2030 strategy offers a clear pathway to a structurally lower cost-to-income ratio, an improved ROE, and growth in dividends over time. Recent EPS revisions momentum is another relative appeal vs CBA and NAB.

The sentiment out of the Canaccord Genuity Group last month was that outside of CBA shares, valuations in ASX bank shares are more reasonable. 

When excluding index heavyweight CBA, valuations are more reasonable – especially relative to a fully priced ASX 200. 

On average, the Big 4 ex-CBA trade at a modest discount to the market and sit within their historical relative P/E range (vs the ASX 200), albeit towards the upper end. This suggests bank sector valuations are elevated, but not extreme, outside of CBA.

How have the other big four banks performed?

After a bull run to start the year, Commonwealth Bank of Australia (ASX: CBA) shares have cooled off considerably. 

Australia’s largest bank is now relatively flat across 2025, up just 1.2%. 

National Australia Bank Limited (ASX: NAB) has performed better than CBA, rising approximately 9% since the start of the year. 

The second best performing big four bank share this year has been Westpac Banking Corporation (ASX: WBC). 

Westpac shares have risen 18%. 

The post Up 22% in a year! The red-hot ANZ share price is smashing CBA, Westpac and NAB shares appeared first on The Motley Fool Australia.

More reading

• BHP shares surge 8% on their way to reclaiming the No. 1 title from CBA
• Is the NAB share price a buy for passive income?
• Own Westpac shares? Here are the dividend dates for 2026
• How to invest your first $1,000 in the share market the smart way
• ASX 200 mining shares outperform as iron ore and copper prices strengthen

Motley Fool contributor Aaron Bell has positions in National Australia Bank. 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 L1 Long Short Fund Ltd (ASX: LSF) is one of the most successful ASX stocks on the Australian share market.

Since duplicating its managed fund into a listed investment company (LIC) back in 2018, this LIC’s portfolio has generated an average return of 12.7% per annum. That stretches to 23.1% per annum over the past five years.

Now, the L1 Long Short Fund is primarily an Australia-focused investment, with ASX stocks making up at least 70% of the fund at any given moment. It is a rather unusual LIC in that it uses a long-short strategy. This involves traditional investing in other shares in hopes of future returns (long investing). But also short-selling companies that it thinks are in for rough times ahead.

This long-short strategy has clearly been effective at generating returns for its investors on the Australian market. But L1 Capital has just launched a new ASX fund that it hopes can replicate the success of its ASX-focused cousin on the international stage.

ASX veterans might find a bell ringing when we mention Platinum Asset Management. Platinum used to be one of the ASX’s most sought-after stock pickers. But a recent run of underperformance has left it struggling. As a consequence, Platinum Asset Management’s Platinum Capital Ltd listed investment company was approached by L1 Capital with a takeover offer. The offer was accepted, and, earlier this month, was merged into a new LIC that will take L1’s long-short strategy to global markets.

That LIC is now known as L1 Global Long Short Fund Ltd (ASX: GLS), and it might be worth a closer look.

An ASX stock that has banked 70% since January?

We’ve already touched on the ASX-focused L1 Long Short Fund’s previous success. Even though the L1 Global Long Short Fund has only been on the ASX in its new form for a few days, stock investors have a preview of its potential success.

In a merger presentation, L1 fund managers Raphael Lamm and Mark Landau seeded an initial version of what has now become the L1 Global Long Short Fund back in January in a trial run of sorts. Between 1 January and 31 October, that trial run returned a whopping 67.5%. 

Past performance is never a guarantee of future success, of course. But no one can deny that this new ASX stock is off to a flying start.

Some of the long positions that can currently be found in the L1 Global Long Short Fund’s portfolio include Alcoa, ING and Zillow. Meanwhile, the fund has shorted US electric car maker Lucid Motors.

L1 will have to keep up its outperformance for new investors to get bang for their buck, though. After an initial grace period, this new ASX stock will charge a management fee of 1.4% per annum. That’s in addition to a performance fee.

The post This new ASX stock has returned 70% since January appeared first on The Motley Fool Australia.

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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 Zillow Group. 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 dividend share Elders Ltd (ASX: ELD) has seen a sizeable valuation decline since 2022, as the chart below shows. This could be a buying opportunity, in my view.

The agricultural business has operations across a wide variety of areas, including farming sector retail products, wholesale products, livestock and wool agency services, storage and handling of wool, feed lots for cattle, real estate sales agency and property management services, financial services (including insurance), digital and technical services (including investments in AuctionsPlus and the Clear Grain Exchange online trading platforms), and own-brand agricultural chemicals and animal health products.

In summary, it’s heavily involved in Australia’s agricultural sector and associated services.

Following the decline of the Elders share price, it could now offer a very large dividend yield for investors by FY27.

Passive income projections

Payouts are decided based on how much profit a company generates as well as how generous the board of directors is feeling.

According to the projection on CMC Markets, the business is forecast to increase its annual payout per share to 36.5 cents. Following that, the ASX dividend share could grow its dividend to 39.5 cents per share in the 2027 financial year.

Using the valuation at the time of writing, this translates into a potential grossed-up yield of 8% including franking credits or 5.6% excluding the franking credits.

Let’s take a look at why now could be a good time to invest in the agricultural business.

Strong outlook for the ASX dividend share?

The earnings per share (EPS) forecasts on CMC Markets suggest the business could deliver 58.2 cents of EPS in FY26 and then 63 cents of EPS in FY27. Based on those projections, the Elders share price is valued at just 11x FY27’s estimated earnings.

When Elders announced its FY25 result, it gave some comments regarding FY26:

Elders is optimistic about the outlook for FY26, supported by a forecast recovery from dry conditions in South Australia and Victoria, as well as the commencement of benefits following implementation of our new retail system. In addition, we welcome Delta Agribusiness to Elders, expanding our Rural Products business in FY26.

The outlook and fundamentals for Australian livestock remain sound with prices for sheep and cattle forecast to be supported by strong international demand against a backdrop of tightening supply, especially from regions recovering from drought. The outlook for the regional residential property market remains positive, benefitting from stabilisation of interest rates at lower levels.

Elders will continue to invest in strategic initiatives, in line with its Eight Point Plan, while maintaining a focus on cost and capital efficiency.

With that in mind, I think the ASX dividend share could be a good under-the-radar buy for long-term investors.

The post This ASX dividend share is projected to pay an 8% yield by 2027 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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.