Australian shares are still under pressure overall this week from high oil prices, inflation concerns, and expectations of an impending interest rate hike.
Let's find out how major S&P/ASX 200 Index (ASX: XJO) shares like AGL Energy Ltd (ASX: AGL), Telstra Group Ltd (ASX: TLS), and Zip Co Ltd (ASX: ZIP) are tracking, and which ones brokers rate as a buy, sell, and hold.
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Buy Zip shares
It's been a volatile ride for Zip shares over the past 12 months, with its shares swinging between a low of $1.38 in March and a high of $4.93 in January.
Most recently, the sell-off picked up pace after the company posted its FY26 results late last month. Zip posted a record result, including a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.
The announcement was initially well received by investors, who rushed to snap up the BNPL provider's shares. But gains were quickly reversed, and the shares are now down around 28% since the announcement.
While the result itself was positive, many investors were underwhelmed by the company's outlook for future growth.
Zip said it is aiming to deliver a group cash EBTDA of $340 million in FY27, up 26% on FY26, and target an operating margin of 20% to 22%. That's much lower than the 57.9% cash EBTDA growth the company experienced in FY26.
But it looks like brokers are confident that the shares can keep climbing higher over the next 12 months. Market Index data shows all brokers have a strong buy rating on the ASX tech shares. And the $3.95 average target price implies an upside of around 79% at the time of writing.
Sell AGL Energy shares
AGL shares rallied higher in mid-August after the ASX energy stock posted an impressive FY26 result.
The energy supplier announced a 2% increase in both its underlying EBITDA and underlying NPAT for FY26. It also confirmed a 60% increase in its operating free cash flow. The company said that it has grown its customer base, invested $600 million in firming projects, achieved major milestones – including two long-term power purchase agreements – and completed divestment of its stake in Tilt Renewables.
For FY27, AGL is guiding underlying EBITDA between $1.9 to $2.2 billion and underlying NPAT between $470 to $670 million.
But quickly after the share price spike, many investors rushed to take their gains off the table.
At the time of writing, the shares are down around 5% over the past month, to $8.33 a piece. AGL shares are now down around 11% for the year to date and 4% lower than a year ago.
There hasn't been any price-sensitive news out of AGL since its results announcement, so it looks like the latest sell-off is led by lower investor sentiment.
It looks like there are concerns that the company's earnings recovery is taking longer than expected.
At the same time, softer power-price expectations, driven by a surge in renewable energy and lower wholesale costs, are expected to put electricity companies like AGL under pressure.
Market Index data shows the majority of brokers have a sell rating on AGL shares. However, after the latest share price decline, the $9.70 target price implies a potential 16% upside.
Hold Telstra shares
Telstra shares have rebounded around 7% from an annual low in late August. The ASX telco shares are now around 0.2% higher year to date but roughly 1% lower than 12 months ago.
The shares tumbled after the telco posted its FY26 results mid-month, with revenue down 0.8% and underlying earnings up 4.4%. However, not long after, investors swooped back in to snap them up at a lower valuation.
As a classic defensive business, Telstra shares are also likely benefiting from a recent flight to security amid renewed geopolitical volatility and inflation concerns.
Brokers aren't convinced that there is much more room for growth going forward. Market Index data shows the majority have a hold rating on Telstra shares. But the $5.01 average target price implies an upside of around 3% at the time of writing.
