A price target tells investors where experts think the share price could go within the next year, and we're going to look at three ASX shares where analysts have put price targets on businesses that suggest they could rise by at least 75%.

Let's look at these different opportunities.

Autosports Group Ltd (ASX: ASG)

Autosports describes itself as Australia's only ASX-listed specialist prestige and luxury vehicle retailer. It has more than 80 businesses across key metropolitan markets in Sydney, Melbourne, Canberra, Brisbane, Gold Coast, and Auckland.

It has new and used vehicle dealerships, motorcycle dealerships, and specialist collision repair facilities.

The business is growing strongly – in the first half of FY26, revenue grew 10.9% to $1.52 billion, normalised operating profit (EBITDA) rose 26.6% to $70.6 million, and normalised net profit before tax (NPBT) grew 74.9% to $35.3 million. In January 2026, new vehicle written orders were up 13% and service and parts revenue was up 11%.

In its FY26 half-year result, it said it was expecting further profit growth, partly because of operating leverage and the inclusion of earnings from recent acquisitions.

According to CMC Invest, there have been five buy ratings on the business, with an average price target of $4.78, suggesting a possible rise of around 100% over the next year.

Myer Holdings Ltd (ASX: MYR)

Myer is best known as a department store retailer and it also has a number of apparel brands, including Just Jeans, Jay Jays, Portmans, Dotti, Jacqui E, Sass & Bide, Marcs, and David Lawrence.

The ASX share's FY26 half-year result included growth from the inclusion of acquired apparel brands into the business. Total sales grew 24.5% to $2.28 billion and underlying net profit after tax (NPAT) increased 21.7% to $51.7 million. But, 'pro forma' net profit declined 17% because of investments in strategic initiatives.

The Myer share price dropped more than 50% in the past year and it now looks cheap according to experts.

According to CMC Invest, there have been three recent ratings on the business, with two of those being a buy and one being a hold. The average price target is 53 cents, suggesting a possible rise of well over 80%.

It's now priced at under 8x FY26's estimated earnings, according to the forecast on CMC Invest.

Beacon Lighting Group Ltd (ASX: BLX)

The third ASX share that I'm going to cover is one of the leading lighting retailers in Australia with a large retail store network as well as having commercial customers and international sales.

The Beacon Lighting share price has dropped by around 50% in the past year, which makes it look a lot cheaper today.

According to CMC Invest, there have been six recent ratings on the business, with five of those being a buy. The average price target from those ratings was $3.06, suggesting a possible rise of around 80% from where it is today.

Using the forecast on CMC Invest, the Beacon Lighting share price is valued at 13x FY26's estimated earnings.

The post 3 ASX shares tipped to grow 75% or more in the next 12 month! appeared first on The Motley Fool Australia.

The ASX All Ords hit an all-time high of 9,436.2 points on Friday, the final day of earnings season, and fell 0.13% yesterday.

Today, the market is substantially lower as investors continue to weigh how the US and Israel attack on Iran will affect world order.

Energy is the only sector in the green today as oil and gas prices continue to climb on expectations of disrupted global supply.

Meanwhile, three ASX All Ords shares have hit 52-week lows today.

Are they a buying opportunity, or is it best to steer clear?

Let's defer to the experts.

4 ASX All Ords shares slumping to 52-week lows

HMC Capital Ltd (ASX: HMC)

This ASX All Ords financial share fell to a 52-week low of $2.54 on Tuesday.

That's a 72% deterioration over 12 months, but Morgans sees the upside.

The broker retained its buy rating on HMC Capital shares after reviewing the company's 1H FY26 report.

In a note, Morgans commented:

We still see value in HMC, with our market-to-market NTA at c.$2.30 per share, or c.$3.00 when we factor in our valuation for the listed co-investments (HDN, HCW, DGT), while the c.$60m of recurring funds management EBITDA adds additional value.

Morgans lowered its 12-month price target from $4.85 to $4.45.

Healius Ltd (ASX: HLS)

The Healius share price tumbled to a 52-week trough of 66 cents today.

This ASX All Ords healthcare share has halved in value over the past 12 months.

Morgans reiterated its hold rating after reviewing the pathology services provider's 1H FY26 report.

The broker commented:

While management maintained FY26 earnings in line with consensus and operational discipline is improving, sustainable earnings leverage remains an open question and dependent on execution.

The broker gives the ASX All Ords healthcare share a 12-month target of 80 cents.

DigiCo Infrastructure REIT (ASX: DGT)

This ASX All Ords real estate investment trust (REIT) fell to a 52-week low of $1.93 on Tuesday.

The data centre specialist has lost more than 55% of its value over the past year.

Morgans is optimistic, however, after going over the company's 1H FY26 results.

The broker commented:

DGT continues to trade at a c.50% discount to NAV of A$4.62/security, yet that NAV does not yet reflect the full value of the 88MW SYD1 expansion, which management estimates will deliver a further c.A$1.50/security of NAV uplift at a targeted 15% yield on cost.

Acknowledging the share price weakness, we continue to see the opportunity in DGT, retaining our Buy rating with a $4.15/sh price target.

Beacon Lighting Group Ltd (ASX: BLX)

This ASX All Ords consumer discretionary share reached a 52-week low of $2.02 today.

That's a 41% fall over 12 months.

However, Morgans upgraded Beacon Lighting from accumulate to buy on the back of its 1H FY26 report.

The broker commented:

BLX 1H26 result was weaker than expected, driven by softer sales in both retail and trade, which has tempered expectations of a meaningful recovery in the 2H.

Whilst earnings recovery is likely longer dated, we see long-term opportunity in trade, store network growth, and margin expansion as the cycle turns.

The broker lowered its share price target from $3.80 to $3.20.

The post 4 ASX All Ords shares at 52-week lows. Should you buy? appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here is a sample of the large number of ASX All Ords shares with ex-dividend dates next week.

ASX All Ords shares about to go ex-dividend

Which companies will we hear from today?

The big one today is the half-yearly report from supermarket network Coles Group Ltd (ASX: COL).

Woolworths shares ripped this week after the ASX All Ords consumer staples giant reported a 16% profit lift to $859 million for 1H FY26.

We'll also hear from TPG Telecom Ltd (ASX: TPG), Michael Hill International Ltd (ASX: MHJ), and Pexa Group Ltd (ASX: PXA).

The latest report from The Star Entertainment Group Ltd (ASX: SGR) will also be interesting, as investors seek further news on the turnaround plan for the beleaguered casino operator.

Yesterday, Star Entertainment shares bounced on news of a debt refinancing deal, including extra liquidity to fund the turnaround plan.

The post 35 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

The following three ASX All Ords shares hit fresh 52-week lows yesterday.

Are they are buy?

Let's defer to the experts.

3 ASX All Ords shares at 52-week lows

Beacon Lighting Group Ltd (ASX: BLX)

This ASX All Ords consumer discretionary share fell to a 52-week low of $2.15 on Tuesday.

That's a 36% fall over 12 months.

Morgans upgraded its rating on Beacon Lighting shares from accumulate to buy after the company's 1H FY26 report.

The broker commented:

BLX 1H26 result was weaker than expected, driven by softer sales in both retail and trade, which has tempered expectations of a meaningful recovery in the 2H.

We have lowered our sales forecasts in FY26/27 resulting in 5%/6% downgrades to our EBITDA forecasts, and more meaningful downgrades at the NPAT line.

Whilst earnings recovery is likely longer dated, we see long-term opportunity in trade, store network growth, and margin expansion as the cycle turns.

The broker reduced its 12-month share price target from $3.80 to $3.20.

This still suggests a near-50% potential capital gain over the next year.

Treasury Wine Estates Ltd (ASX: TWE)

This ASX All Ords wine share tumbled to a 52-week low of $4.49 yesterday.

That's a 59% decline over 12 months.

Morgans maintained its hold rating on this ASX retail share after reviewing the company's 1H FY26 results.

The broker said the report was weak but broadly in line with the company's guidance.

Leverage was well above the target range, and the board did not declare an interim dividend.

Morgans added:

TWE reiterated that 2H26 EBITS is expected to be higher than the 1H26. It is too early to call whether TWE can grow earnings in FY27.

We think this will not occur until FY28 given the priority to reduce customer inventory in the US and China.

It will take time for new management to deliver more acceptable returns and for TWE to rebuild credibility with the market.

Morgans lifted its 12-month price target slightly from $5.25 to $5.30 per share.

This implies a potential upside of almost 20% over the next 12 months.

Megaport Ltd (ASX: MP1)

This ASX All Ords tech share tumbled to a 52-week low of $7.36 yesterday.

The Megaport share price has fallen 35% over 12 months.

Morgans retained its buy rating after reviewing the company's 1H FY26 report.

Morgans said:

MP1's 1H26 result was a beat relative to our and consensus EBITDA expectations.

Revenue was inline, with gross profit higher and OPEX lower than expected.

FY26 guidance is broadly inline with our expectations. However, the 1H/2H skew and composition are meaningfully different.

This necessitates a huge increase in OPEX from 1H26 into 2H26 which leaves us thinking guidance looks conservative.

Cycling 2H26 OPEX into FY27 and beyond causes us to reduce our FY27 and FY28 EBITDA forecasts by ~20%, while concurrently lifting our revenue forecasts by ~6%.

The broker lowered its 12-month share price target on Megaport to $15.50.

This suggests the ASX tech share could more than double over the next 12 months.

The post 3 ASX All Ords shares at 52-week lows: Are they a buy? appeared first on The Motley Fool Australia.

It's usually a lot easier growing a $500 million business into a $1 billion business than going from $50 billion to $100 billion.

The two businesses I want to highlight are both among the leaders in Australia at what they do and have plans for more long-term earnings growth.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting has a national store network that sells lighting to consumers. It also has a commercial segment and an international segment.

There were a few positives from the recent FY26 half-year result. Total sales rose by 3.2%, company store comparative sales increased by 0.4%, international sales increased 13.5% and trade sales grew 12.6%.

However, operating expenses increased by 4.3% and this meant operating profit (EBIT) declined 5.5% and net profit dropped 6%.

I think there is a strong outlook for the company, with a possible increase from 130 stores at the end of HY26 to up to 217 stores over the long-term. The ASX All Ords stock continues to grow its commercial sales and market share.

If international sales continue to grow faster than total sales, then that segment will become a larger and more influential segment of the business. The rest of the world is a large addressable market, so there is a long growth runway here.

In five years, I'm expecting the business to be a materially large and more profitable business. It could be smart to invest while economic conditions and investor confidence are low.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia. It has a very defensive set of earnings because, sadly, there is a certain level of demand for its services each year. It's a morbid idea, but it provides an essential service.

Death volumes are expected to slowly but steadily rise over the next decade because of Australia's ageing and growing population, giving the ASX All Ords stock a useful tailwind.

Additionally, its average revenue per funeral is growing at roughly the speed of inflation over the years. Again, that's not an incredibly strong growth rate but it provides a decent growth boost for revenue.

A growing number of funerals combined with the average funeral delivering more revenue, should lead to a rising top line. Added to that, the business is occasionally making bolt-on acquisitions to boost its market share, geographic spread and scale.

In five years, I believe the business will be making more revenue, have a larger market share, generate more profit and pay a larger dividend. After dropping 10% in the last year, at the time of writing, I think this could be the right time to invest at the current Propel share price.

The post 2 excellent ASX All Ords stocks I'd buy today appeared first on The Motley Fool Australia.

In fact, as reported by Realestate.com.au in January 2026, Australians spent $53.8 billion on home improvements in FY25, the highest spend since 2022.

So how can investors get in on this trend? Here are the three stocks poised to ride the renovation wave.

Beacon Lighting Group Ltd (ASX: BLX)

Lighting is an important part of any property overhaul and plays a pivotal role in three of the most popular renovation categories – energy efficiency upgrades, kitchens, and bathrooms. And while local lighting and ceiling fan retailer Beacon Lighting has seen some share price volatility of late, it is well placed to capitalise on its trusted brand and broad product range.

Its share price has fallen around 30% in the last year, likely driven by weakening sentiment across the consumer discretionary retail sector. However, at the tail end of 2025, it hit the radar of some analysts, with Bell Potter putting a buy rating on it in December.

And at current prices, I tend to agree. Its FY25 results show solid growth, including record sales of $328.9 million and a gross margin of 69.1%. Also, Beacon Lighting recently highlighted that it remains on track to reach its target of 50% trade sales by FY28 – a strategy that essentially gives it two bites at the home renovations cherry.  

It has shown a disciplined approach thus far, with a healthy cash buffer and a relatively conservative balance sheet. In my opinion, it's a buy for long-term investors in the current climate.

Temple & Webster Group Ltd (ASX: TPW)

Furniture provides the finishing touch of every renovation, and Temple & Webster is in the box seat to deliver. The online retailer offers access to more than 200,000 items from thousands of suppliers through a scalable drop-shipping model. This agile model allows it to serve a wide market, offering everything from simple flat-pack solutions and on-trend, low-cost décor to premium, artisan, hand-finished furniture.

Its share price is down roughly 25% over the last 12 months. Despite posting strong FY25 results, it saw volatility in November following an update that missed consensus growth expectations. That said, the company says it remains on track to deliver on its mid-term goal of $1 billion in annual revenue.

Despite failing to meet expectations in the short term, I think it's worth considering at current prices. Its solid performance in market headwinds, strong brand, flexible model, and depth of product offering all create a solid runway for long-term growth.  

GWA Group Ltd (ASX: GWA)

As the owner of some of Australia's most recognised kitchen and bathroom brands, including Caroma, Methven, Dorf, and Clark, GWA is a pivotal player in the home improvement landscape.

While GWA is also affected by changes in consumer discretionary spending, its share price has fared better than many peers'. Over the last 12 months, it has seen a 4% rise in its share price and is tipped to continue delivering strong dividends to investors.

It reported solid results in FY25, despite a declining market. And its buybacks late last year indicate the company has confidence in its ability to continue delivering and believes its shares to be undervalued.  

GWA's ongoing success may be buoyed by continued consumer demand for water-efficient products. It is a frontrunner in the space with intelligent bathroom systems that deliver smarter water management solutions to consumers.

At current prices, GWA may still hold reasonable value for investors. It offers some of the go-to brands for consumers looking for quality and water efficiency. And it has shown it can perform and deliver healthy dividends, even in challenging market conditions.

The post 3 ASX stocks poised to ride Australia's renovation wave appeared first on The Motley Fool Australia.

While sectors like materials and industrials have brought strong returns (up 10% to 20%), consumer discretionary has lagged behind. 

For context, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has risen just 4% since January. 

However, the team at Bell Potter have just initiated coverage on Beacon Lighting Group Ltd (ASX: BLX) with a buy recommendation. 

Despite the share price being down roughly 3.5% since the start of the year, and almost 20% since August, Bell Potter has an optimistic price target on this consumer discretionary stock. 

Beacon Lighting Group  

Beacon Lighting Group is a specialist retailer of lighting, fans, globes, and electrical accessories, servicing retail, trade, and wholesale customers. 

The company retails over 3,500 products, with more than 85% of those designed in-house, which is key to its vertically integrated business model and thus provides high, defensive gross margins. 

These products are primarily sold through a network of 131 retail stores across Australia, as well as through a significant online presence. 

Future growth in store

Bell Potter said in yesterday's report that, as the largest specialist retailer in a fragmented market made up of single-store operators or large multi-category retailers, it has a unique market positioning, as designer, manufacturer, and retailer of lighting products.

The key growth category for BLX is its trade business, currently making up ~40% of group revenue as of FY25, targeting 50% by FY28, which we estimate will grow at a 3- yr CAGR of 10% from FY25-28e. Comparatively, the more mature retail business is expected to grow ~4%, driven by a stable 4-store rollout per annum.

The broker also said the trade segment has benefited from a housing boom versus the retail business stabilising due to cost-of-living pressures and less discretionary income available. 

Overall, it expects the total group to grow at a rate of ~7% per annum as it continues to take market share from single-owner operators and expands further into trade and commercial avenues.

Buy recommendation from Bell Potter

The broker has initiated coverage on this consumer discretionary stock with a price target of $3.35. 

Yesterday, Beacon Lighting Group shares closed at $2.96. 

This means Bell Potter's price target indicates an upside of approximately 13.18%. 

The broker said it views the company's leading market position in a fragmented market (~12% market share) and vertically integrated business model (FY25 GM ~69%) as attractive and unique characteristics for a specialty goods retailer.

We believe the business is well positioned to take advantage of a recovering retail environment, supported by a strong housing market and construction outlook.

The post Bell Potter just initiated coverage with a buy rating on this consumer discretionary stock appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise on Wednesday following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is up 0.45%, the S&P 500 is up 0.25%, and the Nasdaq is 0.65% higher.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$58.67 a barrel and the Brent crude oil price is down 1.15% to US$62.45 a barrel. This was driven by oversupply concerns.

Hold Graincorp shares

The team at Bell Potter thinks that Graincorp Ltd (ASX: GNC) shares are fully valued at current levels. This morning, the broker has reaffirmed its hold rating and $8.50 price target on the grain exporter's shares. It said: "Wheatcast yield indicators imply a crop broadly consistent with a year ago and GNC should benefit from the removal of CPC outflows and GrainsConnect losses (+$50m YOY). Against this global grain supply remains high (limiting marketing returns) and crush margins appear to be a modest YOY tailwind."

Gold price falls

It could be a poor session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 1.1% to US$4,229 an ounce. Traders were taking profit after a strong rebound in the precious metal.

Buy Beacon shares

Bell Potter thinks investors should be buying Beacon Lighting Group Ltd (ASX: BLX) shares. This morning, the broker has initiated coverage on the specialist retailer's shares with a buy rating and $3.35 price target. It said: "On an FY26e P/E basis (~20x), we view BLX's leading market position in a fragmented market (~12% market share) and vertically integrated business model (FY25 GM ~69%) as attractive and unique characteristics for a specialty goods retailer. We believe the business is well positioned to take advantage of a recovering retail environment, supported by a strong housing market and construction outlook."

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

All three of the companies that I'm going to talk about have seen their share prices decline in recent times. But, I believe they are great candidates to bounce back from recent difficulties; they only seem to me like temporary challenges.

Let's get into what makes them exciting ideas.

Beacon Lighting Group Ltd (ASX: BLX)

As the chart below shows, the Beacon share price has fallen more than 20% since August.

Beacon has a few different segments including its Beacon Lighting stores for consumers, a trade segment (for electricians, builders, architects and interior designers) and international sales.

The ASX small-cap share is exposed to a number of areas of the economy that have struggled including consumer spending, construction and trade activity.

But, following rate cuts, I think the company has the potential to become a lot larger. It has identified a potential store network of close to 200 Beacon Lighting stores, implying a possible increase of around 50% from where it is today.

I'm also hopeful that the company can grow its earnings in international markets such as Hong Kong and Europe (which saw double-digit sales growth). Impressively, Tmall Global sales in China grew by 72.3% during FY25.

According to the forecasts on CMC Markets, the Beacon share price is valued at 20x FY26's estimated earnings and 17x FY27's estimated earnings.

Adairs Ltd (ASX: ADH)

Adairs is a homewares and furniture retailer that operates through three different businesses – Adairs, Mocka and Focus on Furniture.

It has dropped around 30% from 19 September 2025, as the below chart shows.

I view Adairs as a discretionary retailer that goes through elevated volatility, so it can be an opportunity to buy when investors don't seem very confident.  

The ASX small-cap share recently reduced its FY26 guidance, but it's working on a number of initiatives to improve its profitability.

I think it's trading at a price that's too low given how retail spending could recover over the next year or two.

According to the forecasts on CMC Markets, it's trading at 10x FY26's estimated earnings and 8x FY27's estimated earnings.

Inghams Group Ltd (ASX: ING)

Inghams is one of the largest poultry businesses in Australia. The Inghams share price is down around 40% from June 2025.

The company has suffered through a number of negatives including transitioning to a new Woolworths Group Ltd (ASX: WOW) supply agreement, a shift to a lower-margin mix, weaker wholesale pricing and weaker overall retail demand.

But, the poultry ASX small-cap share is working on a number of ways to try to improve profitability, including reducing inventory, matching production to demand and reducing costs.

I'm optimistic that the company's profits can recover over the next couple of years, making the current valuation attractive as a turnaround opportunity.

According to the forecasts on CMC Markets, the Inghams share price is valued at 12x FY26's estimated earnings and 9x FY27's estimated earnings.

The post 3 ASX small-cap shares I'd buy with $3,000 right now appeared first on The Motley Fool Australia.

This business is best known for its national chain of Beacon Lighting stores across Australia. Beacon Lighting also has a trade segment (for electricians, builders, architects and interior designers), an e-commerce offering and other segments such as international sales.

Following the 17% decline of the Beacon Lighting share price, as shown on the chart below, I think the ASX small-cap stock is a compelling buy.

Recovering momentum

As a business linked with the wider economy, consumer spending, construction and trade activity, the last couple of years have not been easy for the ASX small-cap stock.

But, the signs are now promising that the company can deliver growth for the foreseeable future.

When the company announced its FY25 result, it said that total sales grew by 1.8% over the 12 months. That's not fast growth.

However, Beacon Lighting said that company store sales momentum in the fourth quarter of FY25 had continued into the start of FY26. It also revealed positive momentum with trade sales continuing into FY26.

With multiple RBA rate cuts this year, I think there is momentum for the ASX small-cap stock to deliver earnings growth. Any additional RBA reductions could help earnings further.

Store growth potential

The company already has a solid position in the Australian market, but it has plans to open dozens more stores.

In FY25, the business finished the year with 127 company stores and two franchised stores. During the period, it opened four new stores (three in NSW and one in Victoria) and also relocated three places into larger stores.

Excitingly, the business notes that store network research from March 2023 identified the potential for 195 Beacon Lighting stores in Australia. That implies a possible increase of around 50% over the long-term.

International potential

Australia is a great country to do business, but the rest of the world is a much bigger market. Overseas could become a larger contributor to the company if the international segment continues growing.

In FY25, Beacon international increased sales and profits, with Hong Kong and Europe both achieving double-digit sales increases. The Tmall Global sales channel in China saw a 72.3% sales increase during the 2025 financial year – Beacon Lighting says that China is a very exciting and profitable business.

The ASX small-cap stock could grow significantly in both Australia and overseas, which makes me believe it's a bargain today after the recent decline.

The post Why I think this ASX small-cap stock is a bargain at $3.11 appeared first on The Motley Fool Australia.

But, many of the ASX's most compelling companies now trade on very high price/earnings (P/E) ratios such as Pro Medicus Ltd (ASX: PME) and WiseTech Global Ltd (ASX: WTC) which have P/E ratios of well over 100.

Where are we supposed to look for cheaper opportunities?

I suggest we look at businesses that have compelling futures and plans for growth. The valuation doesn't seem as demanding as the high-profile stocks I've referred to. Below are two stocks I view as appealing.

Beacon Lighting Group Ltd (ASX: BLX)

This ASX growth share claims to be Australia's leading retailer and trade supplier of lighting, ceiling fans, and electrical accessories. It has more than 120 Beacon Lighting stores, a wholesale division, and international sales offices in Hong Kong, Germany, and the US.

Expanding its store network is one of the easiest ways this company can grow its earnings and underlying value. It currently has 127 stores, and management has identified the potential for 195 stores in Australia, which implies a possible increase of 53% from today's level.

The company is also growing its market share in Australia's residential electrical wholesale market. Beacon Lighting is trying to partner with more electricians, builders, architects and interior designers by offering special prices, referral benefits, free lighting design, free delivery and other perks.

One of the areas of this ASX growth share I'm most excited about is the international segment because of the large addressable market. Beacon's international division is expanding its offering to new sales channels and customers and attending international lighting fairs in Hong Kong, Dallas, and Frankfurt.

The Beacon Lighting share price is valued at 24x FY24's earnings, which I think is a very reasonable P/E ratio for a business that's executing on multiple growth avenues.

Webjet Group Ltd (ASX: WJL)

Webjet recently split into two businesses, with the WebBeds business now operating separately as Web Travel Group Limited (ASX: WEB). The Webjet business now includes the online travel agency (OTA) business Webjet, the car and motorhome hire business GoSee and travel product software Trip Ninja.

As shown on the chart below, the Webjet share price is down 20% since 27 September 2024 and I think this is a good time to pounce.

In Webjet's recent FY25 first-half result (HY25), the company noted that the Australian economy remains slow and that ongoing cost-of-living pressures are subduing demand for travel, particularly domestic travel.

Why am I optimistic about that? When it comes to cyclical businesses like ASX mining shares and ASX discretionary retail shares, I believe the right time to invest is when there's weakness in the sector, the outlook is poor, and share prices are down.

I believe Webjet has shown its quality and business intelligence during this period by adjusting its focus to higher revenue margin opportunities, selling more 'ancillaries' to customers, increasing international flight bookings and controlling costs. Webjet OTA's revenue per booking is now higher than before the COVID pandemic. This combination of positives has boosted Webjet's profitability – the HY25 result saw a 1% increase in operating profit (EBITDA) despite an 8% decrease in bookings.

I believe that if/when travel demand eventually rebounds, whether that's in 2025 or further away, the ASX growth share's profit could significantly benefit. I'm optimistic both the company's profit margin and the Webjet share price can noticeably improve in the next couple of years, so I'm willing to be patient.

The post I think these 2 exciting ASX growth shares are buys today appeared first on The Motley Fool Australia.

That's according to the small to mid-cap investment team – Sam Koch, Will Thompson and Cooper Rogers – at Wilson Asset Management (WAM).

The ASX All Ords shares in question are furniture retailer Nick Scali Ltd (ASX: NCK) and lighting specialist retailer Beacon Lighting Group Ltd (ASX: BLX).

Both stocks have already delivered outsized gains over the past year.

As of yesterday's close, Nick Scali shares are up around 31% over 12 months, while Beacon Lighting shares are up more than 61%.

And that's not including dividends.

Nick Scali shares trade on a fully franked trailing dividend yield of 4.8%. Beacon Lighting shares trade on a fully franked trailing yield of 2.7%.

Now, here's why WAM is optimistic about the outlook for both ASX All Ords shares.

ASX All Ords shares tipped for more growth

"For the past 30 years, Beacon Lighting has predominately sold light fittings, globes, ceiling fans and electrical to retail customers," small-cap analyst Will Thompson said.

WAM added:

A relatively new strategy is to sell to trade customers (electricians) who buy electrical goods on behalf of their clients. Over the past six years, trade revenues have grown from less than $30 million to over $100 million and

And Thompson thinks the ASX All Ords share can continue to grow revenues.

He's said he's impressed with Beacon's exposure to the trade sector because "it creates further operational leverage by increasing the potential revenue from each of its stores".

WAM noted that in recent years, the increase in trade sales has offset Beacon's subdued retail business sales.

And Thompson believes the company's retail business sales will return to growth in a more buoyant economic environment amid WAM's expectations that the RBA will start cutting interest rates in early 2025.

The asset manager noted that, "Traditionally, lower interest rates can result in more renovation and building activity."

Which brings us to Nick Scali.

WAM explained that the ASX All Ords retail share sells furniture in Australia through the Nick Scali and Plush networks. Nick Scali is now going global after purchasing Fabb Furniture in the United Kingdom in May.

According to WAM:

Within Australia, Nick Scali's ability to gain market share, increase margins and efficiently allocate capital is unparalleled to its peers in the Australian market. What has driven these strong margins is its ability to buy cheaply with scale from its suppliers.

Sam Koch said he believes that management will be able to emulate this model with Fabb Furniture in the UK.

If management executes on increasing margins through operational efficiencies and expanding the store network, Koch expects that there could be an upside to the valuation for the ASX All Ords retail share.

The post 2 top ASX All Ords retail shares set for more outperformance: WAM appeared first on The Motley Fool Australia.

This has seen the broker pick out a number of ASX retail shares as "key picks." But before we look at these shares, let's hear what the broker is saying about the sector.

Morgans notes that it was a mixed earnings season for consumer discretionary companies. It said:

Through August, we saw investors generally become more positive on the outlook for the consumer, with a recovery in sales towards the backend of FY24 and continuing a positive trajectory into the first couple of months of FY25. Share prices were volatile though, with notable stand out performers and laggards. Sales were in line with forecasts and up yoy, but earnings were down driven by inflationary cost pressures, although better managed than expectations.

But one positive was that retail shares paid out better than expected dividends, which the broker believes is a boost to confidence. It adds:

Dividends in FY24 were much better than expected which may indicate that companies are confident in the stability of earnings and cash flow despite no meaningful sign of a recovery in earnings yet. Generally, companies reported a positive start to the year, albeit comping a weak corresponding period. However, they did undershoot our expectations, resulting in lowering our EPS forecasts by (2.4)% (median).

Which ASX retail shares could be buys?

Morgans has named three ASX retail shares as key picks.

The first is specialist retailer Beacon Lighting Group Ltd (ASX: BLX), which the broker has an add rating and $3.15 price target on. It commented:

Beacon Lighting continues to drive strong growth in Trade sales, offsetting softness in Retail sales in a subdued consumer market to result in a stable LFL performance. Gross margins were surprisingly robust in FY24 and we expect this to be sustained in FY25. Beacon Lighting continues to take share and we think it is well positioned to achieve strong earnings growth when consumer sentiment turns.

Another share that gets the thumbs up is Super Retail Group Ltd (ASX: SUL). Morgans has an add rating and $19.79 price target on the Rebel and Supercheap Auto owner's shares. It said:

A positive update from SUL, supporting its recent strong share price appreciation and pointing to continued momentum into FY25. We continue to maintain a positive disposition on the stock and view it as well positioned to capitalize on any improvements in underlying macro conditions.

Finally, the broker thinks that youth fashion retailer Universal Store Holdings Ltd (ASX: UNI) is a buy. It has an add rating and $8.10 price target on its shares. It commented:

The strong result could be attributed to sales growth of 9.7%, improved gross margins, up 110 bps to 60.1% and well managed costs. UNI declared a dividend of 18.5c bringing the total to 35.5c which was up 25.6% and ahead of our expectations. The strong momentum seen in 2H has continued into the first 7 weeks of FY25, with double digit like-for-like (LFL) growth across all brands.

The post Morgans says these ASX retail shares are 'key picks' appeared first on The Motley Fool Australia.

The consumer discretionary sector — home to the largest ASX retailers — is down 0.2% at the time of writing. Collins Foods Ltd (ASX: CKF) is taking the heaviest blow to its share price, tumbling 11% following a disappointing update.

But what about those ASX retail shares slipping under the radar because of their small stature? Their results can help inform us about the broader retail industry while presenting potential investment opportunities.

Here are three retailers making noteworthy gains (and losses) today.

3 ASX retail shares reacting to results

Beacon Lighting Group Ltd (ASX: BLX)

In what is becoming a common theme in reporting season, Beacon Lighting felt the inflationary squeeze during FY2024. The lighting retailer grew its sales from $312 million to $323.1 million, assisted by increased trade and online sales. However, the slight sales growth failed to translate to brighter profits.

Beacon's annual report described that some of the group's operating expenses were 'difficult to manage in the current inflationary environment'. As a result, net profit after tax (NPAT) fell from $33.6 million to $30.1 million as operating expenses consumed 42.9% of sales.

The company declared a fully franked dividend of 7.9 cents per share. Shares in the ASX retailer are up 4% to $2.61 in afternoon trading.

Universal Store Holdings Ltd (ASX: UNI)

The footwear and apparel company is walking with an extra spring in its step today. Unlike Beacon, Universal Store Holdings dialled up its sales and earnings in FY24 through 'disciplined cost control'. Sales jumped 9.7% to $288.5 million, while underlying NPAT leapt 18% to $30.2 million.

Still, if we look at like-for-like sales, Universal Store actually experienced a 0.3% decline. Conversely, the company's smaller brands (Perfect Stranger and CTC) showed strong sales growth, increasing by 56.2% and 6.2%, respectively.

Universal Stores declared a fully franked final dividend of 19 cents per share. The ASX retail share is trading 11.2% higher to $7.05.

Reject Shop Ltd (ASX: TRS)

Last, and definitely the least impressive to shareholders, is discount store operator Reject Shop.

Store sales may have climbed 4.1% to $852.7 million in FY24, but it's not enough to mask the bottom line. Blaming rising costs, Reject Shop recorded a 35.9% reduction in net profits, sinking to $4.7 million for the full year. The cost of doing business swelled from 36.8% of sales to 37.7%, eating further into an already paper-thin margin.

The weak result prompted the board to refrain from declaring a final dividend. The signalling effect of this decision might be why this ASX retail share is bearing a 9% price fall today, dropping to $3.11 apiece.

The post The ASX retail shares winning and losing on reactive results appeared first on The Motley Fool Australia.

It's interesting to see a very large number of ASX All Ords shares upgraded by market analysts on CommSec last month.

The ASX All Ords is made up of 500 stocks, and 80 were upgraded to strong buy ratings in June.

That's a lot!

Let's take a look at some of them.

9 ASX All Ords shares lifted to strong buy ratings

Aristocrat Leisure Limited (ASX: ALL)

This ASX All Ords gaming share is trading at $50.29 on Tuesday, up 0.5%.

It has risen 28.8% over the past year and hit a new 52-week high of $50.44 in earlier trading.

Citi analysts are very positive on the stock and have a 12-month share price target of $53 on it.

There was no price-sensitive news from the company last month.

Computershare Ltd (ASX: CPU)

This ASX All Ords industrial share is currently $26.36, down 0.42% today and up 12.5% over the past year.

The Computershare share price hit a 52-week high of $28.44 in April.

There was no price-sensitive news from the ASX All Ords company last month.

Telix Pharmaceuticals Ltd (ASX: TLX)

This ASX All Ords healthcare share is changing hands for $18.27 per share, up 1.02% today.

Telix shares are up 64.3% over the past year. They hit a 52-week high of $19.06 last month.

Bell Potter says buy and gives the stock a 12-month share price target of $19. 

Last month the company reported on progress for the approval for its kidney cancer imaging agent with the United States Food and Drug Administration (FDA).

Telix also dumped its plans for a NASDAQ listing last month.

Suncorp Group Ltd (ASX: SUN)

This ASX All Ords financial share is slightly in the red today at $17.12, down 0.058%.

The Suncorp share price got a big boost last week when the Federal Treasurer green-lighted the sale of its banking division to Big Four bank ANZ Group Holdings Ltd (ASX: ANZ). 

Suncorp shares are up 27.5% over the past year and reached a 52-week high of $17.73 last week.

Nextdc Ltd (ASX: NXT)

This ASX All Ords technology share is certainly riding the artificial intelligence tailwind.

The CEO of data centre-as-a-service operator, Craig Scroggie, described AI as "the fourth industrial revolution" in a recent interview published on asx.com.au.

The NextDC share price is $17.47 on Tuesday, down 0.14% today and up 41% over the past year.

It hit a 52-week high of $18.50 last month.

Morgans has an add rating on Nextdc with a $19 price target on its shares. Morgan Stanley has an overweight rating with a $20 price target.

There was no price-sensitive news from the company last month.

Nick Scali Limited (ASX: NCK)

This ASX All Ords consumer discretionary share is trading at $13.26, down 0.14% today.

Nick Scali shares are up 44% over the past year. They hit a 52-week high of $16.03 in April.

There was no price-sensitive news from the furniture company last month.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel share price is $13.30, down 1.12% today and down 25.8% over the past year.

This ASX All Ords travel share hit a 52-week high of $21.49 in January but has sunk lower since.

My colleague Tristan reckons the travel share could be the "bargain of the year".

There was no price-sensitive news from the company last month.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is $6.44, down 1.08% today and up 8% over the past year.

This ASX All Ords iron ore share hit a 52-week high of $8.75 in January.

Broker Macquarie raised its rating to outperform last month with a $7.90 price target.

There was no price-sensitive news from Champion Iron last month.

Beacon Lighting Group Ltd (ASX: BLX)

The Beacon Lighting share price is $2.45, down 2% today and up 51.2% over the past year.

The ASX All Ords share hit a 52-week high of $3.09 in April.

There was no price-sensitive news from the company last month.

The post 9 ASX All Ords shares lifted to 'strong buy' consensus ratings in June appeared first on The Motley Fool Australia.

There are a number of traits that the investing legend looks for, such as a good valuation, honest and hardworking management, appealing potential to put more money to work within the business at a high rate of return, and that these businesses are in industries he understands.

A lot of share prices have risen recently, so it's a bit harder to find value. However, Buffett has said a number of times that he would rather buy a wonderful business at a fair price rather than a fair business at a wonderful price.

Below are the three ASX shares I think Warren Buffett would love to own.

Premier Investments Limited (ASX: PMV)

Premier Investments is an ASX retail share that owns a number of brands including Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti.

The company also owns investments in two other ASX companies – Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).

The two brands I really like within the portfolio are Smiggle and Peter Alexander.

Smiggle sells school-related items such as lunchboxes, drink bottles, bags, stationery and so on. Some of the current brands it's working with include Jurassic Park, AFL, Spider-Man, Minecraft, Barbie and Mickey and Minnie.

Now that the COVID-19 impacts on schools have dissipated, the growth potential of Smiggle has returned to normal.  

The company is planning a lot of international growth for Smiggle and Peter Alexander. I think store growth can be a big driver of earnings in the coming years, so the company has a promising outlook, in my opinion. Smiggle can expand in numerous countries.

A bonus could be if the business' strategic review manages to unlock value for shareholders.

According to Commsec, the Premier Investments share price is valued at 24 times FY24's estimated earnings.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting is best known for its stores across Australia, which has tailwinds like population growth in Australia. Any interest rate cuts this year could be a boost for demand.

One the things that excites me most about this business is its international growth. Australia is a great country, but the global population is much bigger – tapping into this addressable market is compelling. It has offices in Hong Kong, mainland China, the USA and Germany. In 2023 it made sales to customers from 45 countries.

It's looking to build trade and commercial partnerships, growing its sales to business customers. The ASX share would also like to expand its store network and grow its e-commerce sales.

According to the projection on Commsec, the Beacon Lighting share price is valued at 20 times FY24's estimated earnings.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a number of Australis's leading retailers including Bunnings, Kmart and Officeworks. Other businesses it operates include Target, Catch and Priceline.

I think Warren Buffett would definitely want a piece of Wesfarmers. The company has proven to be a long-term performer, with a track record of making good decisions for shareholders and generating a good return on equity (ROE).

Berkshire Hathaway has built up a diversified portfolio of businesses, and Wesfarmers is diversified too. Wesfarmers is expanding into areas like healthcare and lithium. The more growth avenues the company has, the more choices it has to invest in the best-returning option.  

According to the estimate on Commsec, the Wesfarmers share price is valued at 30 times FY24's estimated earnings.

The post If I were Warren Buffett, I'd buy these ASX shares in a heartbeat appeared first on The Motley Fool Australia.

Some ASX companies have done remarkably well despite the headwinds they're facing. I think a fall in the interest rates may mean earnings are boosted and investors are willing to pay for a higher price/earnings (P/E) ratio.

Here's why I'm optimistic about these three ASX shares.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting describes itself as a leading national and international provider of innovative, technologically advanced and energy-efficient lighting and cooling solutions. It may be best known for lighting, but it also claims to have the largest range of fans in Australia. Many of the company's product ranges are exclusive to Beacon.

I think lower interest rates could spur demand for household renovation and construction, which could flow into demand for Beacon products.

Beacon also has a sizeable and growing international division – this is exciting because of the scale of the markets in North America and Asia. If Australian rates fall, it could weaken the Australian dollar, which would increase the value of those international sales in Australian dollar terms.  

According to the forecast on Commsec, the Beacon Lighting share price is valued at 19x FY24's estimated earnings.

Reece Ltd (ASX: REH)

Reece claims to be Australia's largest plumbing and bathroom supplies business. It has an expansive network of showrooms in Australia, and it also has a growing presence in the United States after an acquisition a few years ago. Reece is also involved in irrigation, pools, HVAC and civil works in Australia.

The ASX share is another name that could benefit from a recovery in renovation and construction activity in Australia (and the US) if central bank interest rates fall.

Reece is planning to open between 10 to 15 branches per year in the US, which could be a useful tailwind for earnings (and be boosted by a weaker Australian dollar if rates fall). The company is working on non-plumbing network expansion in Australia and New Zealand.

From the outside, Reece appears to be well-managed, and in three to five years, I think the business could be making a lot more profit.

According to the forecast on Commsec, the Reece share price is valued at 42x FY24's estimated earnings.

Metcash Limited (ASX: MTS)

Metcash is a diversified business with food, liquor and hardware earnings. It supplies independent retailers around the country including IGA supermarkets, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

What excites me most about this business is the hardware division, which includes Total Tools, Home Timber & Hardware and Total Tools. It also supports independent operators under the small format convenience banners Thrifty-Link Hardware and True Value Hardware. I believe this division can benefit substantially if interest rates are cut by the RBA.

While the hardware operations aren't as strong as Bunnings, I think they are worthy competitors. The Metcash share price is only trading at 13x FY24's estimated earnings, according to Commsec. I think this is a low P/E ratio for the quality of the business.

The ASX share also recently announced the acquisitions of Superior Food (a leading Australian foodservice distribution business), Bianco Construction Supplies (a business operating in SA and NT), and Alpine Truss (one of the largest frame and truss operators in Australia). These companies can help diversify and grow earnings.

The post 3 ASX shares that could soar thanks to the RBA appeared first on The Motley Fool Australia.

Not only can lower interest rates boost company valuation, but it can also mean an increase in earnings for some businesses if customers are interest rate-sensitive, particularly when it comes to discretionary spending and house-related spending.

Let's get into the two ASX All Ords stocks I'm watching.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting may be familiar to investors with its national Australian network of stores that sell lighting, fans and other related products for households. It also has a growing trade/commercial segment, e-commerce websites and a number of new businesses.

Those new businesses are exciting to me because they include US growth (lighting showrooms, e-commerce, wholesalers and big box retail), a property fund and growth in other markets like Hong Kong and Germany. Beacon is looking to grow its international sales and improve its margins and operational efficiencies for all international businesses.

The Beacon share price is still 27% lower than where it was in January 2022, so it's a lot cheaper to invest in right now.

The ASX All Ords stock can grow profit in the next few years from growing its store count and (hopefully) benefiting from a recovery of spending.

According to Commsec, the Beacon Lighting share price is valued at under 14x FY26's estimated earnings.

Nick Scali Limited (ASX: NCK)

Nick Scali sells furniture through Nick Scali stores and Plush stores.

Understandably, households aren't buying as much furniture at the moment as they were in FY23.  In the three months to 30 September 2023, group written sales orders were down 5.4% year over year. Store traffic was down 10% to 15% in the first quarter. Nick Scali explained that store conversion rates had improved, driven by its "better value product offer" for both of its brands.

If interest rates start falling, it could lead to more houses being built and more people wanting to buy furniture from the ASX All Ords stock.

I think this business is a very impressive retailer, which usually has a much higher return on equity (ROE) than many other ASX retail shares.

It plans to open dozens of more stores across Australia and New Zealand. Expansion into a new country could also be a good help for earnings in the longer term.

According to Commsec, Nick Scali shares could be valued at 12x FY26's estimated earnings and a possible grossed-up dividend yield of 7.4% for that year.

The post I think these ASX All Ords stocks could boom when interest rates are cut appeared first on The Motley Fool Australia.

Total Australian retail turnover increased by 0.2% in August, according to seasonally adjusted figures.

This follows an 0.5% rise in July and a drop of 0.8% in June.

Ben Dorber, ABS head of retail statistics, said trend turnover rose by 1.3% compared to August 2022, which was the smallest trend growth over 12 months in the history of the retail data series.

Dorber explained:

Considering how high inflation and strong population growth has added to retail turnover in the past year, the historically low trend growth highlights just how much consumers have pulled back in response to cost-of-living pressures.

The retail winners and losers of August

Clothing, footwear and personal accessory retailing recorded the largest rise in turnover at 1.3%.

Cafes, restaurants and takeaway food services were up 0.7%, other retailing lifted 0.7%, and department store sales rose 0.4%.

Dorber said warmer weather, Afterpay Day promotions, and FIFA Women's World Cup lifted these categories of spending.

CreditorWatch's chief economist Anneke Thompson commented:

It seems Australians are still keen to eat out and not give up their takeaway coffees.

However, despite strong demand in the sector, increased spending could also be attributed to many businesses being forced to increase prices.

Moderating fresh food prices will be welcome relief for café and restaurant operators, however, energy, transport and insurance bills are all still rising considerably, and continue to impact the viability of many of these businesses.

Household goods retailing recorded a third consecutive monthly fall of 0.4%. This category has fallen nine times over the past 12 months.

Food retailing fell for a second consecutive month, by 0.3%.

Thompson said:

Strong population growth and a weakening economy usually results in food retailing being one of the strongest categories, so this is quite an unusual dynamic.

It is also likely reflective of consumers trading down to cheaper alternatives of commonly purchased grocery items.

What happened to ASX retail shares today?

The S&P/ASX 200 Consumer Discretionary (ASX: XDJ] sector was the worst performer of the 11 market sectors today, closing down 1.2%.

Here's a snapshot of some of the fallers among ASX retail shares today:

• The Adore Beauty Group Ltd (ASX: ABY) share price closed down 7.01% to 73 cents
• The ARB Corporation Ltd (ASX: ARB) share price closed down 2.02% to $31.09
• The Myer Holdings Ltd (ASX: MYR) share price closed down 1.75% to 56 cents
• The Premier Investments Limited (ASX: PMV) share price closed down 0.53% to $24.58
• The Harvey Norman Holdings Limited (ASX: HVN) share price closed down 0.52% to $3.83
• The Beacon Lighting Group Ltd (ASX: BLX) share price closed down 0.28% to $1.795.

Premier Investments shares were up earlier in the day after Solomon Lew's group released its full-year FY23 results.

The company revealed a 9.7% lift in sales to a record of $1,643.5 million for the 12 months ending 31 July.

However, the company noted a "challenging general discretionary retail environment" now.

In a statement, Premier Investments said:

1H24 commenced against a backdrop of a challenging general discretionary retail environment, as consumers in Premier Retail's global markets face increasing cost of living pressures.

In this environment, the Group's global sales for the first 6 weeks of 1H24 (August and into September) are down 2.0% on a record 1H23 and up 18.1% on 'pre-COVID' 1H20.

The Group is focused on the key Christmas trading quarter ahead, noting that results for the first half are always driven by this critical period.

The post Why were ASX retail shares hit hardest today? appeared first on The Motley Fool Australia.

The ASX discretionary retail share is facing uncertainty amid higher interest rates, like a lot of companies that sell items related to the housing sector.

Yet despite interest rates starting to rise before the start of FY23, the company achieved record sales in the 2023 financial year.

Let's have a quick look at how the lighting business performed.

Earnings recap

Sales grew by 2.5% to $312 million, which was impressive in the economic environment.

However, the operating expenses increased by 6.9%, so margins worsened during the year. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 7.6% to $85.6 million, while net profit after tax (NPAT) fell 17.4%.

While the ASX retail share's net profit didn't improve, there were a number of positives. These include the 21.6% trade sales increase and 36% online trade sales increase, new trade products and other trade initiatives. In addition, the company opened two new stores and relocated two others, and increased its spending on marketing.

A bigger investment in marketing can help support and grow the company's sales. As long as it's well spent, it's not just the company losing out on the profit margin – it can help sales in FY24 and beyond.

Is the Beacon Lighting share price valuation attractive?

The company's price/earnings (P/E) ratio is relatively attractive – it's valued at 11.5x FY23's earnings per share (EPS).

However, the P/E ratio may not seem quite as attractive if FY24 sees another profit decline. The ASX retail share did disclose that company store comparative sales "made a slower start to FY24".

According to Commsec, the Beacon Lighting share price could be valued at 13x FY24's estimated earnings, so it is expected to see a profit decline.

It's understandable if earnings were to fall this year, but it appears to me that the business is setting up a good long-term future.

Beacon Lighting plans to open eight new stores in FY24, while continuing to expand its Australian-designed fan and light products into the United States, Asia and European markets. The company has identified the potential for 195 stores in Australia, which Beacon said signified a potential 64% growth in the store network.

Its 'new businesses' growth has been impressive. In FY23, the Beacon Europe sales increased 53%, while the number of lighting showroom customers in the US increased around 33%. Sales increased in the Tmall Global sales channel in China by nearly 100%. At this stage, these are all small numbers.

Foolish takeaway

I believe that short-term pain in the Beacon share price can be a long-term opportunity.

By FY25, it could generate EPS of 14.6 cents, according to Commsec, and pay an annual dividend per share of 8.5 cents. That would mean it's valued at 12x FY25's estimated earnings with a possible grossed-up dividend yield of 7% for that year.

It went ex-dividend today, meaning new investors won't be entitled to the upcoming 4 cents per share dividend. I think that the business can rebound nicely if/when the outlook for earnings starts improving. Its global growth plans could be very useful for earnings growth in the long term.

The post Guess which ASX retail share delivered record FY23 results and is trading on a P/E that's almost half the All Ords? appeared first on The Motley Fool Australia.