Tag: Stock pick

ASX technology shares are now one of the most undervalued corners of the market. 

These companies have faced plenty of headwinds so far in 2026, as we’ve seen some of Australia’s biggest tech companies heavily sold off. 

Just to name a few: 

• Xero Ltd (ASX: XRO) is down 33% YTD
• WiseTech Global Ltd (ASX: WTC) has dropped nearly 43%
• Megaport Ltd (ASX: MP1) has fallen 38%
• SiteMinder Ltd (ASX: SDR) is down 54%.

Why are tech stocks falling?

Investors appear to be firmly positioning themselves with a risk-off approach for a few reasons. 

Ongoing conflict in the Middle East has prompted investors to push away from riskier growth oriented companies like tech. 

Additionally, AI interruption fears have turned sentiment largely negative on Aussie tech stocks as investors consider which companies could be replaced. 

Finally, the RBA has raised interest rates amidst rising inflation, which negatively impacts tech valuations which depend on future earnings. 

Altogether, it’s a mix of macroeconomic pressure, shifting sentiment on AI, and a normal correction after a strong rally.

With so much downward pressure in recent months, it’s clear that some of these tech stocks present a relative value. 

The rebound won’t happen overnight. But let’s see which of these battered tech stocks are expected to recover. 

Megaport and SiteMinder could double according to Morgans

Megaport is a technology company that runs a global software-defined network platform, enabling businesses to connect directly to cloud providers and data centres. Its platform allows companies to build fast, flexible connections between their digital infrastructure without the need for traditional network contracts.

Morgans is optimistic its core product is set to benefit from AI growth, rather than be replaced by it. 

The broker has a $16 price target on this tech stock. 

From current levels, that indicates an upside of roughly 112%. 

Meanwhile for SiteMinder, the company provides an e-commerce platform for hotels and other accommodation businesses.

Morgans has a buy rating and $7.00 price target on the company’s shares, with the broker pointing to key business metrics remaining robust despite downward pressure. 

This target is 150% higher than yesterday’s closing price. 

WiseTech and Xero 

Xero shares have continued to tumble in 2026. 

The company offers cloud-based, accounting software for small to medium businesses.

It has been one of the tech stocks caught up in AI integration/replacement fears, as some argue its core business could be at risk. 

However, many brokers still maintain positive outlooks on the company. 

For example, analysts at Citi have retained their buy rating and $144.80 price target. This indicates 93% upside. 

Citi has a similarly positive outlook for WiseTech shares. 

A recent price target of $65.35 from the broker is roughly 67% higher than current levels. 

The post Which ASX battered tech stock has the most upside according to brokers? appeared first on The Motley Fool Australia.

More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares
• Could this beaten-down ASX 200 stock double in the next 12 months?
• 5 most traded ASX 200 shares since the war began
• This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks
• 3 ASX shares now trading at crazy cheap prices!

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares are on a roll.

The telco giant finished Tuesday at a 10-year high after a strong run following its FY26 half-year result.

Investors have been piling in. The numbers tell the story. Telstra shares are now up almost 10% year to date and around 28% over the past 12 months.

That’s well ahead of the S&P/ASX 200 Index (ASX: XJO), which has gained just 5.7% over the same period.

So, can Telstra shares keep soaring?

A standout in a shaky market

Telstra shares have quietly become one of the ASX’s most reliable performers in a volatile market.

While many sectors have struggled with uncertainty, Telstra has pushed higher. That comes down to one key factor: resilience.

Telecommunications isn’t optional. Mobile and broadband services are essential. Whether the economy is booming or slowing, demand stays relatively steady.

That gives Telstra a stable earnings base. Investors value that consistency, especially when markets get choppy.

Strong position, steady growth

Telstra’s dominance is another major strength.

It remains the largest telecom provider in Australia, with a premium network and a strong brand. Continued investment in infrastructure helps it maintain that edge.

This leadership position allows Telstra to hold pricing power and defend market share, even in a competitive landscape.

And then there’s the dividend

Income investors are always paying attention to Telstra shares. The telco offers fully franked dividends and has been growing them. Last month, it lifted its FY26 interim dividend by 10.5% to 10.5 cents per share.

If that trend continues, Telstra could deliver a fourth straight year of dividend growth.

At current prices, the stock offers a yield of around 4%. That’s a solid return in today’s market, especially from a defensive business.

Fierce competition, ongoing cost

Of course, it’s not all upside.

Competition remains fierce. Rivals are constantly pushing on pricing and trying to win customers. That can pressure margins.

Telstra also needs to keep spending. Maintaining a leading network requires ongoing capital expenditure. That’s a necessary cost, but it can weigh on free cash flow.

Then there’s valuation of Telstra shares.

After a strong run — up over 28% to $5.34 over the past year — the easy gains may already be behind it. Investors could become more cautious at higher price levels.

What next for Telstra shares?

Telstra has proven it can perform in tough conditions. Its combination of resilient earnings, market leadership, and growing dividends makes it a compelling defensive play.

But after hitting a 10-year high, expectations around Telstra shares are rising.

From here, further gains may be more measured. Continued earnings growth and dividend increases will be key to sustaining momentum.

The bottom line

Telstra shares have been a standout performer, delivering strong returns while the broader market has been more subdued.

The business remains solid. The dividend story is appealing. And the demand for its services isn’t going anywhere.

But after such a strong rally, investors should expect a steadier climb — not another sprint.

The post Can Telstra Group shares keep soaring after hitting a 10-year high? appeared first on The Motley Fool Australia.

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• Where to invest $2,000 in ASX dividend shares this week
• 3 blue-chip ASX shares to boost your retirement income

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 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.

Starting with nothing in the share market can feel like a disadvantage, but it doesn’t have to be.

When it comes to building passive income, what matters most is consistency and a clear plan. Even from $0, it is possible to work towards a meaningful income stream over time with ASX shares.

Here is a simple three-step approach.

Step one: build the habit

The first step is to start investing regularly.

Even small amounts can make a difference when invested consistently. For example, setting aside $500 to $1,000 per month into ASX shares or exchange traded funds (ETFs) can begin to build momentum over time.

The goal at this stage is not income. It is building capital.

By investing regularly, you benefit from compounding and reduce the need to time the market. Over time, this discipline becomes far more important than trying to pick the perfect investments.

Step two: focus on growth first

In the early years, focusing on growth can accelerate your progress.

Targeting an average return of around 10% per annum is a reasonable and achievable long-term goal, though it is never guaranteed. This typically comes from owning high-quality businesses or diversified ETFs that can grow earnings over time.

ASX shares such as Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), or global ETFs tracking major markets are examples of assets that have historically delivered strong returns.

By reinvesting all returns during this phase, your portfolio can grow much faster than if you were taking income along the way.

Step three: turn capital into passive income

Once your portfolio reaches a meaningful size, you can begin shifting towards income.

If you assume an average dividend yield of 5%, generating $20,000 per year in passive income would require a portfolio of around $400,000.

Reaching this level could take time, but with consistent investing and compounding, it becomes achievable. For example, investing regularly and earning solid returns over a couple of decades can build a portfolio to this level.

In fact, with a 10% average annual return, $500 a month into ASX shares would turn into $400,000 in 21 years.

At that point, you can allocate more of your capital into dividend-paying shares across sectors such as infrastructure, real estate, and consumer staples.

Foolish takeaway

This approach does not rely on timing the market or taking unnecessary risks.

Instead, it focuses on three simple principles: invest consistently, prioritise growth early, and shift to income later.

Starting from $0 may feel like a long road, but with patience and discipline, it can lead to a reliable and growing passive income stream over time.

The post $0 in savings? I’d aim for $20k in annual passive income with 3 simple steps appeared first on The Motley Fool Australia.

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• How to build $100,000 a year in passive income from ASX shares

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

It’s been an incredible run for this ASX gold stock.

On Tuesday, Benz Mining Corp (ASX: BNZ) surged another almost 19% to $2.01. That’s just the latest move in a staggering rally. Over the past 12 months, Benz Mining shares have skyrocketed roughly 450%.

So, can the ASX gold stock keep going?

Here’s what’s driving the momentum and what investors need to watch next.

Why the Benz Mining share price is surging

Like many gold explorers and producers, the $550 million ASX gold stock has benefited from strong investor interest as gold prices surged until recently. Benz Mining’s rise hasn’t come out of nowhere. It’s been fueled by a steady stream of strong exploration results and capital backing.

The company’s flagship Glenburgh Gold Project in Western Australia is the key story. Recent drilling has delivered strong results, including 13 metres of rock with very high gold content.

That’s the kind of result that grabs attention.

On top of that, Benz recently raised $75 million in fresh capital. This has strengthened its balance sheet and gives the ASX gold stock the firepower to accelerate drilling and resource expansion.

Strengths investors are backing

The ASX gold stock ticks several boxes that growth-focused investors love.

First, exploration momentum. The company is consistently delivering strong drill results. That builds confidence in the size and quality of its resource.

Second, scalability. Glenburgh isn’t just a small deposit story. Early signs point to a large system with expansion potential.

Third, funding strength. With around $94 million in pro-forma cash after its recent raise, the ASX gold stock is well funded to push ahead aggressively.

Put simply, this is a company in growth mode.

What about earnings and production?

Here’s the catch: Benz Mining isn’t a producer yet.

It’s still in the exploration and development phase. That means no meaningful revenue or profits at this stage. In fact, like many early-stage miners, the ASX gold stock is currently loss-making as it invests heavily in growth.

The upside? If it successfully defines a large resource and moves toward production, the valuation could shift dramatically.

The downside? There’s still a long road ahead.

Risks to watch

After a 450% run, risks matter more than ever.

Exploration risk is the big one. Not every drill result will be a winner. Sentiment can turn quickly if results disappoint.

There’s also dilution risk. The company has already raised capital, and future funding rounds could dilute existing shareholders.

And finally, volatility. Small-cap miners are known for big swings — both up and down.

What do analysts think?

Coverage is still relatively limited, but there are some bullish signals. All 4 brokers covering the ASX gold stock rate it a strong buy, with an average 12-month price target of $3.83. That points to a potential gain of 86%.

Canaccord Genuity has maintained a speculative buy rating on Benz Mining, with a price target of $3.10. This implies a 49% upside at current levels.

That suggests brokers still see upside — even after the massive run.

The post Up 450% in a year — why this ASX gold stock could soar further appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• Can Telstra Group shares keep soaring after hitting a 10-year high?
• $0 in savings? I’d aim for $20k in annual passive income with 3 simple steps
• I’m listening to Warren Buffett and loading up on cheap ASX shares

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.

Warren Buffett has always had a simple philosophy.

Be greedy when others are fearful.

Right now, there’s definitely a lot of fear in the market.

A number of high-quality ASX shares have been pushed down to 52-week lows or worse, not necessarily because their long-term outlook has changed, but because sentiment has shifted.

That doesn’t guarantee anything. But it does create an environment where buying quality at a more-than-fair price becomes possible.

Here are four ASX shares I’m seriously considering adding to my portfolio at current levels.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is a very different business today than it was a few years ago.

The Chemist Warehouse merger has transformed its position, giving it exposure to one of Australia’s most recognisable pharmacy brands.

What I find interesting is that the market is still assessing the combined business’s earnings power.

There’s potential for improved margins, better scale, and stronger earnings, but that story may take time to fully play out.

With the share price under pressure, I think this is one where patience could be rewarded.

Cochlear Ltd (ASX: COH)

Cochlear isn’t usually a stock you see trading at such low levels.

It’s a global leader in hearing implants, backed by decades of innovation and a strong reputation in healthcare.

The long-term drivers here haven’t changed. Demand for hearing solutions continues to grow, supported by ageing populations and increasing awareness. A new product launch also looks likely to underpin growth and cement its leadership position.

Short-term weakness in the share price doesn’t alter that.

For me, this looks like a high-quality business that could catch the eye of Warren Buffett. 

WiseTech Global Ltd (ASX: WTC)

WiseTech has been one of the biggest fallers, with its share price down sharply over the past year.

A lot of that seems tied to concerns around artificial intelligence (AI) and how it could impact software companies.

But I see it differently. WiseTech is embedding AI into its platform to automate workflows and improve customer outcomes. That could actually strengthen its position rather than weaken it.

The business still has a global footprint, strong annual recurring revenue (ARR), and a deeply embedded logistics platform.

At current prices, I think the risk-reward is looking compelling for buyers.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is another cheap ASX share I’d consider buying.

Travel demand can move with economic conditions, but it’s also a business that has shown it can adapt and recover.

What I like is that the company has streamlined its operations and is now operating more efficiently than it did in the past.

If travel demand remains resilient, there could be meaningful upside from here.

It’s not without risk, but after a meaningful pullback, I think it’s worth considering.

Foolish takeaway

Markets don’t often give you the chance to buy multiple high-quality ASX shares at low prices.

But it has done exactly that with Sigma, Cochlear, WiseTech, and Flight Centre shares.

For me, this is one of those moments where Warren Buffett’s advice feels especially relevant. When quality shares are trading at prices above fair value, I think it can pay to lean in rather than step back.

The post I’m listening to Warren Buffett and loading up on cheap ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• Could this beaten-down ASX 200 stock double in the next 12 months?
• 5 most traded ASX 200 shares since the war began
• One ASX growth stock down over 50% to buy and hold

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For income investors, ASX ETFs can be a powerful way to generate steady cash flow without picking individual stocks.

The key? Focus on ETFs that prioritise dividends, diversification, and consistency.

Here are three of the best ASX ETFs for income investors right now.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This Vanguard ASX ETF is a go-to option for investors chasing reliable dividend income.

This ETF tracks an index focused on high-yielding Australian companies. It tends to lean heavily into banks, miners, and other mature businesses with strong cash flow.

Top holdings include BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) — two of the biggest dividend payers on the ASX.

Strengths? This ASX ETF offers broad diversification and a historically strong yield. Vanguard’s low-cost structure is another big plus.

Risks? It’s concentrated in a few sectors, particularly financials and resources. That can lead to volatility if those sectors fall out of favour.

Still, for pure Aussie income exposure, it’s hard to ignore.

BetaShares Australian Dividend Harvester Fund (ASX: HVST)

BetaShares Australian Dividend Harvester Fund takes a more active approach to income.

Rather than simply holding high-yield stocks, it aims to ‘harvest’ dividends by rotating through ASX shares before they go ex-dividend.

Key exposures often include names like Telstra Group Ltd (ASX: TLS) and Westpac Banking Corp. (ASX: WBC).

Strengths? This ASX ETF can deliver frequent income distributions, often monthly, which appeals to investors seeking regular cash flow.

Risks? This strategy can lead to higher turnover and potentially lower capital growth. Returns can also vary depending on market conditions and timing.

It’s less traditional, but potentially very effective for income-focused portfolios.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

This ASX ETF offers something different: exposure to real estate investment trusts (REITs).

Property trusts are known for paying attractive income, as they’re required to distribute most of their earnings.

Top holdings include Goodman Group (ASX: GMG) and Scentre Group (ASX: SCG).

Strengths? This ASX ETF provides diversification beyond traditional equities and offers exposure to property-driven income streams.

Risks? REITs are sensitive to interest rates. When rates rise, property valuations and yields can come under pressure.

That said, for investors looking to diversify income sources, property exposure can be a valuable addition.

Foolish takeaway

Income investing doesn’t have to mean picking individual dividend stocks.

These three ASX ETFs offer different approaches to generating income. One focuses on high-yield blue chips, another actively targets dividends, and the third taps into property income.

Blend them wisely, and you could build a resilient income stream with less stock-specific risk.

The post 3 of the best ASX ETFs for income investors appeared first on The Motley Fool Australia.

More reading

• How much passive income could $100,000 in ETFs generate?
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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, Goodman Group, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial Intelligence (AI) has rapidly transformed industries worldwide.

Large language models (LLMs) like ChatGPT and Google AI are trained to understand and generate text, code, and other content in ways a human would, and businesses have adopted the technology to improve productivity and efficiency. 

But the rapid uptake has also raised concerns that AI could actually disrupt software companies by reducing the need for traditional platforms.

At the same time, major advances in technology and a huge surge in investor enthusiasm saw valuations skyrocket out of pace with true business fundamentals.

And this created concern about whether AI has entered bubble territory.

After all, many Australian AI businesses are in the early stages of development. This means their share price is based on future potential rather than current earnings. 

Also, Australia’s technology sector is smaller than the likes of the US, which means investor interest is concentrated in a handful of AI shares, thereby inflating prices. 

But the reality is that, while the AI hype is real, some ASX-listed AI stocks could now be considered undervalued.

Take Block Inc (ASX: XYZ) shares, for example.

Why Block shares are worth the hype

Block shares closed 2.1% higher on Tuesday afternoon, at $86.63 a piece.

The US-founded payment services platform acquired Australian buy now, pay later (BNPL) company Afterpay and has continued expanding ever since.

The company posted some strong profit results late last year but was caught in a perfect storm of headwinds, including concerns about rising interest rates, regulatory scrutiny, and fear around BNPL models. The combination slashed investor sentiment towards the end of 2025, and the sell-off continued in 2026.

Even so, the company’s financials continued gaining momentum. In late February, Block posted its Q4 and FY25 results, revealing a 24% jump in gross profit for the quarter and a 17% increase for the year. Its FY25 adjusted operating income came in at US$2.08 billion, representing a 20% margin.

Looking ahead, the company is guiding to a gross profit of US$12.2 billion. This represents 18% annual growth, which is expected to be achieved with an operating income margin of 26%.

What upside do analysts expect from here?

TradingView data shows that analysts are extremely bullish on Block’s outlook over the next 12 months.

Two out of three analysts have a strong buy rating on the stock, and another has a hold rating. Regardless, they all expect an upside ahead.

The maximum target price is $256, which implies a potential 194% upside at the time of writing. Even the minimum $95 target price represents a 9.2% upside for investors. 

It doesn’t look like the bubble is bursting on this AI stock anytime soon.

The post AI may look like a bubble. But what about Block shares? appeared first on The Motley Fool Australia.

More reading

• Why Beach Energy, Block, Life360, and Medibank shares are rising today
• What are the 3 ASX technology shares Citi rates as a buy at the moment?
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• 3 ASX 200 shares tipped to climb 130% (or more) in the next 12 months
• Are Block shares back in play?

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 positions in and has recommended Block. 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.

If I’m putting a meaningful amount of money into an ASX dividend stock, I want one thing above all else.

Confidence.

Not just in the next dividend, but in the business’ ability to keep paying and growing those dividends over the next decade or even beyond.

That’s why I keep coming back to supermarket giant Woolworths Group Ltd (ASX: WOW).

At a share price of $36.41 at the time of writing, I think it stands out as a dependable option for income-focused investors right now.

A business built on everyday spending

Woolworths sits at the centre of one of the most consistent parts of the Australian economy.

People need groceries and household goods regardless of what’s happening with interest rates, markets, or economic cycles. That creates a level of demand that is relatively stable compared to many other industries.

What I like is how Woolworths has built around that core.

Its scale, supply chain, and store network give it a strong competitive position. That helps support margins and cash flow, which ultimately underpin its ability to pay dividends.

A growing dividend profile

According to CommSec, consensus estimates point to Woolworths paying fully-franked dividends of $1.03 per share in FY26, then $1.14 per share in FY27, and finally $1.28 per share in FY28.

At the current share price, that puts it on a forward dividend yield of around 2.8% for FY26, rising to roughly 3.5% by FY28 if those forecasts are met.

It may not be the highest-yielding stock on the ASX, but that’s not really the point here.

For me, it’s about consistency and growth.

What $20,000 could generate in this ASX dividend stock

If you invested $20,000 into Woolworths shares today at $36.41, you’d be able to buy approximately 549 shares.

Based on FY26 dividend estimates of $1.03 per share, that would generate around $565 in annual income.

Looking ahead, if dividends grow to $1.28 per share by FY28, that same investment could generate roughly $700 per year.

And importantly, those dividends are expected to be fully franked, which can add additional value for Australian investors.

Foolish Takeaway

Woolworths may not offer the highest dividend yield on the ASX, but I think it offers something more important.

Reliability.

With a strong market position, consistent earnings, and growing dividends, I think it looks like a solid option for investors looking to put $20,000 to work in a dependable ASX dividend stock right now.

The post A dependable ASX dividend stock to buy with $20,000 right now appeared first on The Motley Fool Australia.

More reading

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• These 3 ASX ETFs can help protect your portfolio in 2026
• How to invest when the ASX refuses to calm down

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

Commonwealth Bank of Australia (ASX: CBA) shares have delivered some outsized gains since late January.

On 21 January, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed trading for $147.22. On Tuesday, those same shares closed the day changing hands for $171.12 apiece.

That sees CBA shares up 16.23% in just over two months. For some context, the ASX 200 is down 4.59% since market close on 21 January.

What makes this outperformance even more remarkable is that CBA traded ex-dividend on 18 February. While CommBank won’t pay out the fully-franked interim dividend of $2.35 a share until 30 March, investors who owned the ASX 200 stock at market close on February 17 will be looking forward to receiving that.

So, if we add that $2.35 back into Tuesday’s closing price of $171.12 a share, then the accumulated value of CBA shares is up an even more impressive 17.83% since 21 January. With some potential tax benefits from those franking credits.

Clearly, then, you’re unlikely to hear investors who bought in late January complaining about their returns to date.

But looking ahead, Medallion Financial Group’s Philippe Bui forecasts mounting headwinds for Australia’s biggest bank (courtesy of The Bull).

Here’s why.

CBA shares: Buy, hold, or sell?

“CBA remains the highest quality franchise among Australia’s major banks, but the valuation now looks stretched,” said Bui, who has a sell recommendation on CBA shares.

“The stock trades on a price-to-earnings multiple well above its peers despite similar earnings growth prospects,” Bui noted.

Indeed, CBA trades on a P/E ratio of around 28 times.

By comparison, Westpac Banking Corp (ASX: WBC) trades on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) trades on a P/E ratio of around 19 times; and National Australia Bank Ltd (ASX: NAB) trades on a P/E ratio of around 21 times.

And with the share price leaping higher, Bui was lukewarm on CBA’s passive income potential.

“The recent annual dividend yield around 3% is modest compared with other income opportunities,” he noted.

Bui concluded:

With credit growth slowing and net interest margins stabilising, we believe earnings momentum is unlikely to justify such a premium valuation. After a strong share price run, investors may want to consider taking profits and reallocating capital to more attractively valued opportunities.

How has the ASX 200 bank stock performed longer term?

Taking a step back, CBA shares have gained 16% over 12 months, not including dividends.

The ASX 200 is up 5.58% over this same time.

The post Up more than 17% since January, should you buy CBA 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.

If you have a spare $5,000 and want to put it to good use, here are five ASX shares I have my eye on this week, and they’re all tipped to soar higher this year.

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband shares jumped 20% higher in early February after the company announced it had signed an agreement to acquire AGL Energy Ltd (ASX: AGL)’s Telco business. As part of the arrangement, the two companies have also agreed to an exclusive long-term partnership. Aussie Broadband already benefits from a sticky customer base, and now it has the opportunity to grow even more. Analysts tip an upside as high as 47% to $7.14 a piece, at the time of writing.

Web Travel Group Ltd (ASX: WEB)

The ASX travel company’s shares have crashed 43% for the year to date after news of an audit of its Spanish subsidiary spooked worried investors. The audit will review direct taxes paid (and owed) between April 2021 and March 2024, as well as indirect taxes for the period between January 2022 and December 2025. But Web Travel Group said it does not expect any material earnings impact from the Spanish tax review, and its FY26 earnings guidance is unchanged at 22% to 29% higher than in FY25. It looks like the investor sell-off was overdone. Analysts are tipping an upside as high as 170% to $7.40 at the time of writing.

Goodman Group (ASX: GMG)

Goodman Group shares have also tumbled 18% so far in 2026, amid concerns about Australia’s interest rate direction, high borrowing costs, and overall investor uncertainty. There is broad weakness across the property sector, and the dent in confidence has flowed through to the latest earnings results. But I don’t think the downturn is here to stay. Analysts tip an upside as high as 60% to $40 over the next 12 months, at the time of writing.

AUB Group Ltd (ASX: AUB)

Again, AUB shares are down 22% for the year so far after investors exited their positions following news that the company completed a $400 million institutional placement to help fund its acquisition of UK insurer Prestige and support growth. The placement was priced below the share price at the time. The move signalled expectations that the share price would decline. It looks like the ASX shares have now hit rock bottom. Analysts tip an upside as high as 63% to $38.90 for the next 12 months, at the time of writing.

Super Retail Group Ltd (ASX: SUL)

Super Retail Group shares have also been through the wringer in 2026. The share price shot to an all-time high after a record sales result in late February, but has slumped 20% since then amid market-wide volatility. As a retail company, Super Retail Group is heavily reliant on discretionary spending, but this is the first thing to retract when concerns about interest rates, cost of living, or economic volatility surface. Despite investor sentiment, the business remains strong and steady, so over the long term, we can expect the cyclical downturn to rebound. Analysts tip an upside of up to 50% to $19 at the time of writing for the ASX company’s shares.

The post 5 ASX shares I’d buy with $5,000 today appeared first on The Motley Fool Australia.

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• How to survive an ASX share market crash
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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 positions in and has recommended Aussie Broadband, Goodman Group, and Super Retail Group and is short shares of Aussie Broadband. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Aub Group, Aussie Broadband, and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.