Three companies stand out to me, each with an opportunity to deliver stronger earnings and potentially reward patient investors.

Here's why I think they are worth buying.

WiseTech Global Ltd (ASX: WTC)

WiseTech has had a difficult period, but I think there is still an excellent business underneath the uncertainty.

Its CargoWise software is deeply embedded in global logistics operations, helping customers manage everything from shipments and customs documentation to complex international supply chains.

I like the company's opportunity to generate more revenue from customers already using its technology. WiseTech is introducing a transaction-based commercial model, which could allow revenue to grow as customers process more activity through CargoWise.

The acquisition of e2open also gives it access to a much larger network of businesses across global supply chains.

Of course, management has plenty to prove. Integrating e2open, delivering the benefits of its new commercial model, and navigating changes brought by artificial intelligence will all require careful execution.

But with ASIC's investigations into the company and key personnel recently concluded without enforcement action, one important uncertainty has been removed.

And I think the valuation leaves room for a recovery. WiseTech shares are trading on a PE ratio of approximately 26 times FY27 earnings, falling to around 16 times FY29 earnings based on consensus forecasts.

If management delivers the expected growth, I think WiseTech's share price could be much higher than where it trades today.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is another ASX share I think deserves more attention.

The retailer operates several youth-focused fashion brands, including Universal Store, Perfect Stranger, and Thrills.

What I like is its ability to develop brands that connect with younger consumers while continuing to expand its retail footprint.

There are opportunities to open additional stores, grow online sales, and improve profitability as the business becomes larger.

Despite consensus estimates forecasting solid earnings growth through to at least FY29, they are trading on a PE ratio of around 14 times forecast FY27 earnings.

There is also a forecast dividend yield of approximately 5.6% for FY27.

I think that is an attractive combination of income and growth for investors prepared to accept the risks of retailing.

Flight Centre Travel Group Ltd (ASX: FLT)

My final pick is Flight Centre, which I think could reward investors willing to wait for better conditions in the travel industry.

Geopolitical tensions, higher fuel prices, and more expensive airfares have created a difficult environment.

But Flight Centre has been using this period to strengthen its business. Management has materially reduced costs, while acquisitions made around the bottom of the travel cycle have expanded its offering in specialist markets.

I especially like its substantial corporate travel operations, where it has established relationships with businesses around the world.

As travel conditions improve, I think Flight Centre could benefit from stronger demand flowing through a leaner and more diversified business.

And investors are paying a relatively modest price for that potential. At current levels, Flight Centre trades on less than nine times forecast FY28 earnings, with an expected dividend yield of around 5% for that year.

The recovery could take time, but I think the potential reward makes the shares worth buying.

Foolish takeaway

I think all three ASX shares have a reasonable chance of being worth considerably more in a few years.

There is execution risk involved, particularly with WiseTech and Flight Centre, but I believe their current valuations leave room for attractive returns.

I'd be happy to buy at today's prices and give these businesses time to deliver.

The post 3 undervalued ASX shares I would buy today appeared first on The Motley Fool Australia.

Some could benefit as conditions improve, while others may need to adapt to substantial changes in their markets.

Here's how I would rate these shares today.

Appen Ltd (ASX: APX)

Appen shares are a hold for me. The company helps developers train and improve artificial intelligence (AI) models, putting it in an industry that continues to attract enormous investment.

But I have mixed feelings about its long-term prospects. AI models are becoming increasingly sophisticated, with synthetic data and automated evaluation potentially reducing the need for some traditional training services.

At the same time, more advanced AI creates demand for specialist data, human evaluation, and expert input in complex areas such as coding and mathematics. Appen could benefit from these opportunities.

Its recent results provide some encouragement. Revenue increased 17% in the first half of FY26, supported by particularly strong growth in China.

But the recovery remains uneven. Revenue from its Global business declined 27%, suggesting Appen still faces challenges replacing traditional work with newer AI projects.

I am also concerned about its reliance on a relatively small number of major technology customers, whose spending priorities can change quickly.

For me, the question is whether Appen can build a consistently profitable business as AI technology evolves. I think there is enough progress to justify holding the shares, but I would want clearer evidence of sustainable growth before buying.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is a patient buy in my view. The travel company has faced a challenging period, with geopolitical tensions disrupting travel plans and higher fuel prices contributing to more expensive airfares.

But I think the work Flight Centre has done during this difficult period could pay off when conditions improve.

Management has materially reduced costs, leaving the business in a stronger position to benefit when travel demand picks up.

It has also strengthened its offering through acquisitions made around the bottom of the travel cycle, expanding its presence in specialist and higher-value travel markets.

I particularly like its position in corporate travel. Flight Centre has built a substantial global business serving companies that need help managing employee travel, bookings, and expenses.

That gives it an established customer base and opportunities to capture more business as corporate travel spending improves.

For me, the combination of a leaner cost base, a broader offering, and a strong corporate travel business could support a meaningful recovery in earnings.

I don't expect conditions to improve overnight, particularly given the uncertainty surrounding international travel. But I would be happy to buy Flight Centre shares with a long-term view and give the recovery time to play out.

Telstra Group Ltd (ASX: TLS)

Telstra shares would be a buy for income investors. The telecommunications company has a substantial mobile network, millions of customers, and an established position in an industry that has become essential to everyday life.

I like the relatively dependable demand for its services, which helps support regular dividends.

Telstra paid 21 cents per share in FY26, and management is targeting further earnings growth under its Connected Future 30 strategy. That could provide room for dividends to increase gradually.

There is one longer-term development I would be watching, though. SpaceX has been expanding Starlink's mobile capabilities and recently agreed to acquire approximately US$8 billion worth of mobile spectrum in the United States. 

I think that is a significant development, as it suggests SpaceX has ambitions to compete more directly with traditional telecommunications companies.

But for now, I think Telstra's extensive infrastructure and network capacity give it a strong competitive position, particularly in populated areas.

As such, I think Telstra remains a good option for investors seeking dependable income.

Foolish takeaway

I would be happy buying Flight Centre and Telstra shares today, with the former offering recovery potential and the latter providing a more dependable source of income.

Appen is one I would continue holding for now. Its recent progress is encouraging, but I think it still has more to prove before I would consider adding to my position.

The post Buy, hold, sell: Appen, Flight Centre, and Telstra shares appeared first on The Motley Fool Australia.

The shares have now fallen by around 33% so far in 2026, and they're roughly 15% lower than they were 12 months ago.

The company has faced several headwinds as conflict in the Middle East continues to disrupt global travel plans. Its latest FY26 result was also weaker than expected, with underlying profit before tax coming in around 2% below market expectations. Its leisure division missed consensus by about 8%.

The company also expects travel to be subdued through the first half of FY27 while the conflict still goes unresolved. Flight Centre expects corporate earnings to be more heavily weighted toward the second half, with first-half profit likely to come in below last year.

But the good news about the ASX travel stock is it offers investors more than just capital gains. It also delivers a steady passive income stream through dividend payments.

What makes Flight Centre shares an attractive passive income option?

The business is large in scale, with a huge global reach across both corporate and leisure travel segments. 

The company's strong position in the global corporate travel market means it can earn a diverse yet consistent earnings stream, which it can then pass on to shareholders.

How many Flight Centre shares can I buy with $5,000?

Using the $10.12 share price at the time of writing, a $5,000 investment will buy approximately 494 shares.

What dividend does the travel company pay its shareholders?

Flight Centre has a history of paying fully-franked dividends twice per year, dating back to 2004.

But there was an exception during the COVID pandemic years. Flight Centre did not pay dividends in 2020, 2021, or 2022 due to widespread lockdowns, closed international and domestic borders, and limited travel. 

The company resumed its dividend payments in 2023.

Flight Centre is expected to pay its shareholders a final FY26 fully-franked 30-cent dividend on Friday. This brings the FY26 total dividend to 42 cents per share.

At the time of writing, that translates to a dividend yield of around 4.1% for the year.

According to CommSec data, the travel company is expected to pay 48 cents per share in FY27. It is then forecasted to pay 52.3 cents per share in FY28, and 56.5 cents per share in FY29.

Using the share price at the time of writing, that translates to forward dividend yields of around 4.7%, 5.2%, and 5.6% respectively.

Ok, so what could I earn off a $5,000 investment in FY27?

If Flight Centre pays shareholders the expected 48-cent fully-franked dividend in FY27, then a $5,000 investment (or 494 shares) would generate around $237.12.

Assuming the company pays the forecasted dividends of 52.3 cents and 56.5 cents for FY28 and FY29, investors could earn passive income of around $258.36 and $279.11 from the same $5,000 investment.

The post If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27? appeared first on The Motley Fool Australia.

Brokers rate Flight Centre shares as a BUY

Flight Centre shares have fallen around 1% to $10.16 in Wednesday morning trade. The ASX travel shares have now fallen around 26% since the company posted a weaker FY26 result in late-August. They're also down 32% for the year to date. Flight Centre hasn't posted any price-sensitive news since its results announcement.

The company faced several headwinds through its fourth quarter after conflict in the Middle East disrupted global travel plans. Its FY26 underlying profit before tax came in around 2% below market expectations and its leisure division missed consensus by about 8%.

The company also expects travel to be subdued through the first half of FY27 while the conflict still goes unresolved. Flight Centre expects corporate earnings to be more heavily weighted toward the second half, with first-half profit likely to come in below last year.

Investors aren't impressed, and Flight Centre's share price continues to be depressed.

But the experts are much more bullish. Market Index shows that the majority of brokers still have a strong buy rating. The $13.75 average target price implies an upside of around 35%, at the time of writing.

Brokers rate Woodside shares as a HOLD

Woodside shares are climbing higher on Wednesday, up around 0.5% to $32.92 at the time of writing. The ASX energy shares have now climbed nearly 7% higher in October so far, and they're up around 39% for the year to date.

There isn't any recent price-sensitive news out of the oil and gas major to explain this month's rebound. The increase in investor interest is mostly likely the result of a climbing oil price.

Trading Economics data shows that crude oil is close to US$95 per barrel, marking its fifth consecutive session of gains, as conflict between Iran and Saudi Arabia intensifies further, renewing concerns about global oil supply out of the region.

Woodside shares are also gathering investor attention following the company's first-half FY26 update in August. The company reported a 13% increase in operating revenue, a 27% increase in NPAT, a 7% increase in underlying NPAT, and a huge increase in free cash flow to US$352 million.

This past year has been a great success story for Woodside shares, but it looks like the shares could now be at, or past, fair value.

Market Index data shows that all brokers have a hold rating on the shares. And thanks to the latest rally, the $28.51 average target price implies a downside of around 13%, at the time of writing.

Brokers rate New Hope shares as a SELL

New Hope shares are roughly flat, at $6 each, at the time of writing on Wednesday morning. The thermal coal miner's shares have had a rocky ride over the past 12 months, fluctuating between $3.77 and $6.61. But they're now up around 48% for the year to date.

The miner lost some investor confidence last month after it posted its latest coal production update. But it flagged that weaker coal prices hit earnings hard, with its underlying EBITDA falling 32.8% to $514.3 million. Net profit after tax (NPAT) also came in at $161 million, down 63.4% from the previous year.

The experts were also unimpressed, saying that the results came in below expectations.

Market Index shows that the majority of brokers now have a sell rating on New Hope shares. The $5.68 average target price now implies a downside of around 5%, at the time of writing.

The post Woodside, New Hope, Flight Centre shares: Buy, hold, or sell? appeared first on The Motley Fool Australia.

When Aussies weigh up travel shares, two names stand out: Qantas Airways Ltd (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT). Both are iconic in the tourism sector but offer very different business models and investment profiles. With both now back paying fully franked dividends and facing unique headwinds post-COVID, which travel stock is the better buy today? Here's what I found digging into the fundamentals, latest prices, and dividend records.

The case for Qantas Airways

Qantas is the national flag carrier, founded in 1920 and today best known for its strong safety record and premium service on regional, domestic, and international flights. Its core operation is flying people and cargo, balanced between its full-service Qantas brand and the value-focused Jetstar arm. Qantas has survived decades of industry shocks, most recently navigating the COVID-19 pandemic's massive hit to global travel demand.

Three key standouts for Qantas right now:

• Dividend comeback: After pausing dividends during COVID, Qantas resumed payouts in 2025 and is now offering a fully franked yield of 4.43% — slightly higher than Flight Centre's, with consistent recent interim and final payments.
• Lower P/E ratio: Qantas trades on a price-to-earnings ratio of 10.57, notably undercutting Flight Centre in the current market snapshot, which could appeal to value-minded investors.
• Market strength: With a market cap of $13.51 billion, Qantas is by far the bigger business, giving it deeper pockets and what I see as stronger resilience if conditions worsen.

Qantas is recognised for safety and reliability and is considered one of the best long-distance carriers globally. Its 100% franked dividends may also appeal to income-seeking shareholders.

The case for Flight Centre Travel Group

Flight Centre, launched in 1982, has grown from a single travel shop to a sprawling, multi-brand operation with stores across Australia and overseas. It's not an airline — it's a travel retailer and agency, connecting consumers to flights, cruises (with its recent Iglu acquisition in the UK), tours, and corporate travel services. Its business is highly sensitive to discretionary travel demand but looks arguably less asset-heavy than Qantas.

Here's what jumped out for Flight Centre:

• Dividend stability: FLT resumed and then lifted dividends since travel bounced back, with $0.42 per share fully franked paid out over the last year, close to Qantas's $0.40, and a yield of 4.13% at current prices.
• Recent M&A activity: Its acquisition of Iglu, a UK cruise specialist in 2026, hints at an active global strategy even as the broader sector remains tricky.
• Smaller size, higher P/E: FLT's market cap is $2.07 billion — much smaller than Qantas — and its P/E ratio stands at 14.65, higher than Qantas's but not unreasonable for a company emerging from major disruption.

Flight Centre's extensive network and global reach are highlighted, but the business remains primarily a travel agent rather than an operator of transport assets.

Valuation comparison

Here's how the two travel giants line up on the numbers that matter:

Recent share price performance

Both Qantas and Flight Centre have had a tough run recently, likely reflecting cost pressures and patchy confidence in the travel sector.

Comparing recent share price action up to 25 September:

• Qantas closed at $8.93, down 1.0% for the day and showing a year-to-date decline of 10.2%.
• Flight Centre closed at $10.18, down 1.3% for the day, but its YTD performance is much worse, with a steep 29.4% fall since the start of the year.

Which is the better buy?

For me, Qantas Airways stands out as the stronger buy right now. It's delivering a slightly higher, fully franked dividend, trades on a lower price-to-earnings multiple, and has seen less share price carnage this year than Flight Centre. While both companies are exposed to the health of the travel sector, Qantas appears more resilient thanks to its scale, operating profits, and core transport assets.

Flight Centre does have merit with its recent move into cruises and persistent dividends, but its combination of a higher P/E and much weaker share price momentum makes me cautious. If you're seeking relatively defensive exposure to the travel rebound, my pick would be Qantas, given its more attractive valuation and better recent performance. I'd be watching Flight Centre for a clearer turnaround and further evidence that earnings can recover.

The post Qantas Airways vs Flight Centre: Which ASX travel stock is the better buy today? appeared first on The Motley Fool Australia.

But rather than simply chasing the highest dividend yields available today, I would recommend investors own businesses that can grow over time.

With that in mind, these four ASX passive income shares would be on my long-term shortlist.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first company that comes to mind for passive income, but I think it has an interesting long-term case.

The travel company has rebuilt strongly since the pandemic and once again has the capacity to return cash to shareholders.

I especially like its exposure to both leisure and corporate travel. Those businesses give Flight Centre several ways to benefit as travel spending grows over time.

The dividend will probably be more cyclical than those of some defensive companies, particularly if economic conditions weaken.

But I think there is room for earnings and dividends to grow as the business becomes larger and more profitable. For investors willing to accept some volatility, I would be happy to own Flight Centre for income and growth.

Coles Group Ltd (ASX: COL)

Coles is a much more defensive option. Australians need groceries regardless of what is happening in the economy, giving the supermarket giant a relatively dependable source of sales.

That stability is one reason I think Coles can work well in an income portfolio.

The company also has opportunities to grow through population increases, online shopping, and continued investment in its supply chain and automated distribution network.

I am not expecting spectacular growth from Coles. But a business capable of steadily increasing earnings and returning part of those profits to shareholders can be a valuable long-term holding, particularly when passive income is the priority.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation is another business I think suits an ASX buy-and-hold passive income strategy.

It operates many of Australia's major lottery brands, giving it a strong position in a market with high barriers to entry.

I like the relatively simple nature of the business. Lottery tickets require little physical infrastructure compared with many other consumer businesses, and the company can generate substantial cash from its established brands.

There is still some variability depending on jackpot activity, but I think the underlying business is well-placed to keep generating cash over the long term.

That should give management the capacity to continue paying dividends while investing enough to maintain the strength of its brands and digital offering.

Amcor plc (ASX: AMC)

Amcor provides a different source of passive income.

The packaging company supplies products used across food, beverages, healthcare, personal care, and many other everyday categories.

That gives the business exposure to demand that can remain relatively resilient through different economic environments.

I also like Amcor's global scale. Packaging is not a particularly exciting industry, but that is not necessarily a problem for an income investment.

What I want is a business capable of generating cash consistently and returning some of it to shareholders.

Amcor's large international operations and exposure to everyday consumer products make it the type of company I would be comfortable holding through a range of market conditions.

Foolish takeaway

I would happily own these four ASX passive income shares for the long term rather than focusing only on the ASX stocks offering the highest yields today.

They give investors exposure to travel, supermarkets, lotteries, and packaging, with each business generating cash in a different way.

For me, that mix of income and the potential for earnings to grow over time is much more interesting than simply chasing yield.

The post Why I'd buy and hold these ASX passive income shares appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) remains at the top of the table with short interest of 17%, up from 15.9% last week. The uranium producer continues to attract short sellers, possibly due to concerns over its ability to ramp up production at Kayelekera and deliver the expected financial benefits.
• DroneShield Ltd (ASX: DRO) has seen its short interest rise to 16.2%. Short sellers may be questioning whether the counter-drone technology company's growth can justify its valuation, particularly with the ASIC investigation still creating uncertainty.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is up slightly week on week. Despite encouraging progress with its US commercial rollout, short sellers may believe its current revenue base is too small to support its market valuation.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 12%. The pizza chain operator remains under pressure as it works to improve store profitability and restore earnings growth following a difficult period.
• IperionX Ltd (ASX: IPX) has jumped to fifth with short interest of 11.7%, up from 10.6% last week. Short sellers may have concerns over the titanium company's valuation and how quickly it can turn its growing production capacity into meaningful earnings.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 11.4%. The Penfolds owner continues to face challenging conditions in the Americas, with short sellers potentially questioning how quickly its restructuring efforts will improve profitability.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is broadly unchanged since last week. Uncertainty over the timing of a sustained lithium price recovery may be keeping short sellers interested in the miner.
• Telix Pharmaceuticals Ltd (ASX: TLX) has returned to the top ten with short interest of 11%. Despite recently securing US FDA approval for Pixclara, short sellers may still be questioning how quickly its expanding product portfolio can drive earnings growth.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 11%. Short sellers may remain wary of disruption to international travel and whether the company can deliver a meaningful improvement in margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 10.9%, which is broadly flat week on week. The uranium producer continues to attract short sellers, possibly due to doubts over its ability to meet production expectations and keep operating costs under control.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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

ASX 200 expected to drop

It looks set to be a tough session for Australian investors on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.7% lower this morning. In the United States, the Dow Jones fell 1.2%, the S&P 500 dropped 0.45%, and the Nasdaq was a fraction lower.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes A2 Milk Company Ltd (ASX: A2M), Flight Centre Travel Group Ltd (ASX: FLT), South32 Ltd (ASX: S32), and West African Resources Ltd (ASX: WAF). Flight Centre is rewarding its shareholders with a 30 cents per share fully franked dividend next month on 16 October.

Oil prices tumble

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$102.07 a barrel and the Brent crude oil price is down 3% to US$105.62 a barrel. This follows reports that Saudi Arabia's damaged pipeline will restart in the coming days.

Dyno Nobel on watch

Dyno Nobel Ltd (ASX: DNL) shares will be on watch today after the explosives company released an investor update. The company revealed that it is performing positively in FY 2026 and is on track to achieve its group guidance for a net profit after tax (before one-offs) of $325 million to $340 million. It also believes it is on track to deliver on its $600 million EBIT ambition in FY 2028. 

Gold price falls

It could be a subdued day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.7% to US$4,302.2 an ounce. Traders were selling gold after the US Federal Reserve lifted interest rates.

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

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) has moved back to the top of the table with short interest of 15.9%, up from 15% last week. Short sellers may still have doubts over the uranium developer's path to production and whether stronger uranium demand will arrive quickly enough to support its plans.
• DroneShield Ltd (ASX: DRO) has short interest of 15.4%, which is broadly unchanged week on week. The counter-drone technology company remains a favourite with short sellers, possibly due to its valuation and uncertainty surrounding the ASIC investigation.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease to 12.2%. Its valuation remains very high relative to its current revenue base, which appears to be keeping short sellers interested despite its significant commercial potential.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is down again week on week. Short sellers may still need convincing that its restructuring efforts can deliver the earnings recovery investors are hoping for.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease slightly to 11.7%. Weakness in luxury wine demand and uncertainty around the pace of improvement in the Americas could be keeping short sellers interested.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.6%. The buy now pay later company's strong recovery may have prompted some short sellers to question whether its valuation now leaves enough room for disappointment.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is up slightly week on week. Short sellers may be betting that the lithium market remains difficult for longer, delaying a meaningful recovery in margins and cash flow.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 11.1%. This may reflect concerns over the strength of consumer travel spending and how quickly the company can improve margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11%, which is up from 10.7% last week. Short sellers may remain cautious over production expectations and whether the uranium price can stay strong enough to support the current outlook.
• IperionX Ltd (ASX: IPX) has entered the top ten with short interest of 10.6%. Short sellers may be questioning the company's valuation and the execution required as it works to scale up its US titanium operations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

We're helping you monitor ex-dividend dates with an article every Friday.

Here are some of the ASX shares due to trade ex-dividend next week.

To be eligible for the dividend, you must own the ASX share before its ex-dividend date.

ASX shares going ex-dividend next week

Check out which ASX shares go ex-dividend today.

The post 33 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

Among the 11 market sectors, utilities is in the lead today, up 0.2%, while technology is the laggard, down 1%.

Meanwhile, on The Bull this week, two experts share their views on three ASX 300 shares.

Let's take a look.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is $14.46, down 1.8% today and up 45% over 12 months. 

Mark Elzayed from Vestra Capital has a buy rating on this ASX 300 tech share. 

He said: 

This technology company distributes hardware and software solutions. It benefits from enterprise spending on AI capable servers, network upgrades and end point security hardware.

It generated gross revenue of $2.1 billion in the first half of 2026, up 14.2 per cent on the prior corresponding period. Net profit after tax of $60.7 million was up 54.1 per cent. Management has upgraded full year gross revenue guidance to between $4.3 billion and $4.4 billion, alongside profit before tax guidance of between $162 million and $165 million.

Double digit top line momentum, an appealing dividend yield and increasing exposure to AI infrastructure spending provides a bright outlook, in my view.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is $1.06, up 1.4% today and down 28% over 12 months. 

Stuart Bromley from Medallion Financial Group has a hold rating on this ASX 300 healthcare share. 

Bromley said: 

The company provides dermal regeneration solutions via its NovoSorb biodegradable polymer technology.

Total revenue of $150 million in full year 2026 was up 16.1 per cent on the prior corresponding period. EBITDA of $12.1 million was up 8.1 per cent.

While growth has moderated from earlier years, the longer-term opportunity remains significant as PolyNovo expands geographically and broadens adoption across burns, trauma and complex wounds.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.46, down 0.2% today and down 7% over 12 months. 

Bromley has a sell rating on this ASX 300 travel share. 

He explained: 

The global travel agency group delivered record total transaction volumes in full year 2026. However, underlying profit before tax of $278 million declined by 4 per cent as Middle East disruption weighed heavily on the leisure business.

We view geopolitical uncertainty, airline capacity constraints and softer consumer conditions as headwinds.

We see better risk-adjusted opportunities elsewhere.

The post Buy, hold, sell: Dicker Data, Polynovo, Flight Centre shares appeared first on The Motley Fool Australia.

On Monday, Flight Centre shares were trading for $11.54 apiece. That sees shares in the ASX 200 travel stock down 6% over 12 months.

Though that doesn't include the two fully-franked dividends totalling 42 cents a share Flight Centre paid eligible stockholders over this time. Flight Centre trades on a full-franked 3.6% dividend yield.

As for CommBank, shares in the ASX 200 bank stock were recently trading for $161.06 each. This sees the CBA share price down 4.3% over 12 months.

CBA also paid two fully-franked dividends over the past year, totalling $5.05 a share. CBA stock trades on a 3.1% fully-franked trailing dividend yield.

And looking ahead, Medallion Financial Group's Stuart Bromley believes both big-name ASX 200 stocks are likely to keep underperforming in the upcoming months (courtesy of The Bull).

Here's why.

Time to sell CBA shares?

"CBA remains Australia's highest quality major bank," Bromley said.

He noted:

The company posted cash net profit after tax of $10.982 billion in full year 2026, up 7 per cent on the prior corresponding period. The full year dividend of $5.05, fully franked, is up 4 per cent.

However, Bromley issued a sell recommendation on CBA shares.

He explained:

Despite the strong result, we believe the valuation is stretched, particularly as higher interest rates weigh on housing activity and credit growth. CBA shares were recently trading at historically elevated valuations compared to global peers. Better valuation opportunities exist elsewhere.

As for CBA's passive income potential, Bromley concluded, "The recent dividend yield of 3.16 per cent lacks appeal."

Which brings us back to…

Time to exit Flight Centre shares?

Atop his bearish outlook for CBA shares, Bromley also issued a sell recommendation on Flight Centre shares.

According to Bromley:

The global travel agency group delivered record total transaction volumes in full year 2026. However, underlying profit before tax of $278 million declined by 4 per cent as Middle East disruption weighed heavily on the leisure business.

We view geopolitical uncertainty, airline capacity constraints and softer consumer conditions as headwinds. We see better risk-adjusted opportunities elsewhere.

Commenting on the impact of the Iran war last month, Flight Centre CEO, Graham Turner said:

In Q4, the Middle East conflict disrupted travel patterns, That was an external shock, not a change in the leisure business's underlying strength, and momentum is already returning, with July TTV at record levels for the month.

Flight Centre shares closed down 7.4% when the company reported those results on 26 August.

The post Sell alert! Why this expert is calling time on Flight Centre and CBA shares appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.4%, which is up week on week. The counter-drone technology company continues to attract plenty of attention from short sellers, possibly due to its valuation and the ongoing ASIC investigation.

Lotus Resources Ltd (ASX: LOT) has seen its short interest jump to 15%. Short sellers may still have concerns over the uranium developer's funding requirements and the execution needed to deliver its growth plans.

4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is down slightly week on week. The medical imaging technology company remains heavily shorted as investors weigh its significant growth potential against a very high valuation.

Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12%. Short sellers may be unconvinced that the pizza chain operator's restructuring and store closures will be enough to restore strong earnings growth.

Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11.8%, which is down slightly week on week. Weakness in parts of the global wine market and uncertainty around the company's recovery continue to give short sellers something to focus on.

PLS Group Ltd (ASX: PLS) has 11.1% of its shares held short, which is broadly unchanged since last week. Short sellers may be expecting lithium prices to be under pressure, which would weigh on margins.

Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.1%. The buy now pay later company's strong share price recovery may have encouraged some investors to bet that expectations are becoming too optimistic.

Elders Ltd (ASX: ELD) has returned to the top ten with short interest of 10.9%. Short sellers may have concerns over rural spending conditions and the outlook for earnings growth across the agribusiness.

Paladin Energy Ltd (ASX: PDN) has seen its short interest fall to 10.7%. Despite this, short sellers may still believe expectations for uranium prices and future production are running ahead of reality.

Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease again to 10.6%. Short sellers may remain cautious on the travel agent due to margin pressure, consumer spending conditions, and disruption to international travel.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

If you are, then it could be worth seeing if the team at Morgans rates these popular ASX shares as buys this week.

Here's what the broker is saying about them:

Flight Centre Travel Group Ltd (ASX: FLT)

While Morgans wasn't blown away with this travel agent's FY 2026 results, it remains positive.

It continues to believe the Flight Centre share price will be materially higher once operating conditions ultimately improve. As a result, it has a buy rating and $14.25 price target on its shares. It said:

FLT's FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict. Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start. With one-off costs associated with Productive Operations and World360 Rewards now being placed above the line, we have made minor downgrades to our forecasts. 

While investors will need to be patient for another six months, FLT's fundamentals remain attractive (FY27F PE of 11.6x) and we retain a Buy rating with a new A$14.25 price target. When operating conditions ultimately improve, both its earnings and share price will be materially higher.

Qantas Airways Ltd (ASX: QAN)

Qantas delivered a result that was in line with expectations in FY 2026 despite facing a major fuel cost headwind.

In response, the broker has retained its accumulate rating (between buy and hold) with a trimmed price target of $10.60. Morgans said:

Strength in the mix – QAN delivered a broadly in-line FY26 result despite a significant fuel cost headwind in 2H26, with a stronger-than-expected performance from Jetstar offsetting softer Domestic earnings. Group Underlying PBT of $2.06bn finished ~3% ahead of consensus, highlighting the resilience and diversification of the earnings base. 

TRASK tailwind emerges – QAN expects Domestic and International TRASK to increase 8-10% in 1H27 while Group capacity remains broadly flat, pointing to a more supportive revenue backdrop despite elevated fuel costs. We maintain our ACCUMULATE rating with a reduced-price target of A$10.60ps (previously $11.50).

Wesfarmers Ltd (ASX: WES)

Wesfarmers also delivered a result that was largely in line with expectations in FY 2026.

And while trading in FY 2027 has been softer than expected, Morgans remains relatively positive. It has an accumulate rating and $85.00 price target on Wesfarmers' shares. The broker commented:

WES's FY26 result was broadly in line with expectations, although trading in early FY27 was slightly softer, with management also flagging higher capex in FY27. Earnings from Bunnings, Kmart Group and Health were largely in line with expectations, while Officeworks was slightly above our forecasts. WesCEF was modestly weaker than anticipated. Management noted that while consumer demand remains resilient, cost-of-living pressures persist and customers continue to be value-conscious. We make minimal changes to FY27-29F group EBIT but decrease underlying NPAT by 1-2% due to higher net interest expense. 

Despite these changes, our target price rises to $85.00 (from $81.10) as we believe the increased investments WES is making in the near term will drive sustainable growth over the long term. This is particularly evident across its retail businesses (Bunnings, Kmart Group, Officeworks and Priceline), where investment should strengthen customer value propositions in a subdued consumer environment and position the divisions to capture stronger growth when economic conditions improve. ACCUMULATE rating maintained.

The post Buy, hold, sell: Flight Centre, Qantas, and Wesfarmers shares appeared first on The Motley Fool Australia.

Following the August reporting season, brokers have reviewed their ratings and 12-month price targets on hundreds of ASX stocks.

Here are some companies that scored reaffirmed buy ratings following their latest financial reports.

CSL Ltd (ASX: CSL)

The CSL share price is $175.12, up 0.7% today.

Over the past month, this ASX 200 healthcare share has ripped 41% higher.

Morgans renewed its buy rating on CSL shares with a 12-month price target of $187.71.

This suggests a potential 7% upside ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $63.69, up 2.5% today.

This ASX 200 mining share has ascended 10% over the past month.

RBC Capital reiterated its buy rating on Mineral Resources shares with a price target of $80.

This implies a potential 25% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $8.26, up 7.4% today.

This ASX 200 energy share has increased 8% over the past month.

Citi renewed its buy rating on Santos shares.

The broker raised its 12-month price target from $8.30 to $9.

This suggests a potential 9% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $64.01, down 1% today after going ex-dividend.

Over the past month, this ASX 200 copper share has risen 5%.

Morgan Stanley reaffirmed its buy rating on BHP shares.

The broker raised its 12-month target from $67.50 to $68.

This suggests a potential 6% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is $15.46, up 2.3% today.

This ASX 200 mining share has leapt 10% over the past month.

JP Morgan reiterated its buy rating on Lynas shares with a price target of $19.10.

This implies a potential 23% upside ahead.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is 97 cents, up 1% today.

Over the past month, this ASX 200 communications share has fallen 2%.

Morgan Stanley reaffirmed its buy rating on Nine shares with a 12-month target of $1.40.

This suggests a potential 42% upside ahead.

Coles Group Ltd (ASX: COL)

The Coles share price is $23.58, up 0.3% today.

Over the past month, this ASX 200 consumer staples share has fallen 3%.

Morgan Stanley reiterated its buy rating on Coles shares.

The broker increased its price target from $25 to $25.80.

This implies potential capital gains of 9% ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $9.35, up 1.3% today.

This ASX 200 travel share has fallen 9% over the past month.

Morgan Stanley renewed its buy rating on Qantas shares with a $12.80 target.

This implies potential capital growth of 36% over the next year.

NextDC Ltd (ASX: NXT)

The NextDC share price is $12.70, down 0.2% today.

Over the past month, this ASX 200 tech share has fallen 6%.

UBS renewed its buy rating on NextDC shares with a $23.45 target.

This suggests a potential 85% upside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.31, up 1.8% today.

Over the past month, this ASX 200 uranium share has soared 20%.

Canaccord Genuity renewed its buy rating on Paladin Energy shares.

The broker raised its 12-month price target from $15.40 to $15.80.

This suggests a potential 40% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $11.52, down 0.3% today.

Over the past month, this ASX 200 travel share has fallen 13%.

JP Morgan renewed its buy rating on Flight Centre shares with a $15.30 target.

This suggests a potential 32% upside ahead.

The post 11 ASX 200 shares with reaffirmed buy ratings post-results appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) has returned to the top of the table with short interest of 14.9%, which is down slightly week on week. The counter-drone technology company remains a popular target for short sellers. This could be partly due to the ongoing uncertainty created by ASIC's investigation.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest fall sharply to 13.6%, but it remains the second most shorted ASX share. The uranium developer's recent capital raising may have eased some pressure, though short sellers still appear to be questioning development timelines and uranium demand.
• 4DMedical Ltd (ASX: 4DX) has short interest of 12.4%, which is broadly unchanged since last week. The medical imaging technology company continues to divide the market. While some investors see a large commercial opportunity, short sellers may be focusing on the gap between its market valuation and its current revenue base.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12.3%. The pizza chain operator is trying to reset the business after a difficult period of store closures, impairments, and weaker trading. Short sellers may be waiting for clearer evidence that the turnaround will succeed.
• CAR Group Limited (ASX: CAR) has short interest of 12.1%, which is flat since last week. This may reflect concerns over the auto listings company's outlook in a difficult operating environment.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12%. Short sellers may have concerns over weak wine demand and the pace of the Penfolds owner's recovery.
• Paladin Energy Ltd (ASX: PDN) has 11.2% of its shares held short, which is down slightly week on week. Short sellers appear to believe the market is too optimistic on production, costs, and uranium prices.
• PLS Group Ltd (ASX: PLS) has seen its short interest rise to 11.1%. Short sellers may be betting that prices for the battery-making ingredient remain under pressure, which would be bad news for margins.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 10.9%. Its strong share price recovery may have led some short sellers to question whether expectations have run too far, especially given weak consumer spending.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 10.8%. Short sellers may still have concerns over Middle East disruption, margins, and travel demand.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

As earnings season nears its end, Morgans has reviewed the following companies' reports and given them a buy rating.

Here's why.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $41.14, up 4% today and down 59% over 12 months.

WiseTech released its FY26 results this week.

Morgans reiterated its buy rating on the ASX 200 tech share.

The broker cut its 12-month price target from $67 to $62.50.

This implies a potential 52% upside ahead for WiseTech shares.

Morgans said:

WTC's FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range.

While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27.

FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $12.07, down 1% today and down 5% over 12 months.

Flight Centre released its FY26 report this week.

Morgans reiterated its buy rating on the ASX 200 consumer discretionary share.

The broker lowered its 12-month price target from $14.80 to $14.25.

This implies potential capital gains of 18% ahead for Flight Centre shares.

Morgans said:

FLT's FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict.

Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start.

While investors will need to be patient for another six months, FLT's fundamentals remain attractive (FY27F PE of 11.6x) …

When operating conditions ultimately improve, both its earnings and share price will be materially higher.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $21.40, down 0.5% today and down 38% over 12 months.

Netwealth released its FY26 earnings this week.

Morgans increased the ASX 200 financial share to a buy rating with a $27.50 target.

This implies potential gains of 28% ahead for Netwealth shares.

Morgans said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations.

Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year.

The post 3 ASX 200 shares to buy post-results: broker appeared first on The Motley Fool Australia.

In morning trade today, two of the well-known ASX shares are outpacing the 0.2% gains posted by the All Ordinaries Index (ASX: XAO), while one is trailing the benchmark.

Here's what's catching investor interest.

Virgin Australia shares rise on renewed dividend

Virgin Australia shares are up 1.1% at the time of writing, swapping hands for $2.84 apiece.

This follows the release of the ASX 300 airline's full-year FY 2026 results.

Highlights included a 13.4% year-on-year increase in underlying earnings before interest and tax (EBIT) to $753 million.

And on the bottom line, Virgin Australia shares look to be getting support today from the airline's 21.9% increase in underlying net profit after tax (NPAT) to $404 million.

The company also issued its first dividend since relisting on the ASX in June 2025. Management declared a fully-franked dividend of 7.6 cents per share.

Air New Zealand shares sink on net loss

Air New Zealand also released its FY 2026 results today.

But unlike Virgin Australia shares, Air New Zealand shares are down 0.8% following the release, trading for 32.3 cents each.

On the positive side of the ledger, the Kiwi airline reported a 3.9% year-on-year increase in revenue to NZ$7.0 billion.

However, operating cash flow of NZ$819 million was down 12.8% from FY 2025.

And the company posted a net loss after tax of NZ$242 million.

Much of the pressure has come from surging jet fuel costs amid the ongoing Middle East conflict.

Air New Zealand management noted, "The Middle East conflict increased fuel cost by an estimated $328 million compared to what we expected going into the second half, and by $205 million after hedging."

Flight Centre shares lift amid board shakeup

Joining Air New Zealand and Virgin Australia shares in creating a buzz today, we find Flight Centre.

After reporting its FY 2026 results on Wednesday, today the ASX 200 travel stock announced some major leadership changes.

Flight Centre revealed that Gareth Turner will join the board as an independent non-executive director. Turner will succeed Rob Baker, a 13-year veteran of the company's board.

Commenting on Turner's appointment, Flight Centre chair Gary Smith said:

Gareth brings deep financial and commercial experience across the technology, telecommunications and travel and tourism sectors, along with a strong track record as a CFO.

The board looks forward to drawing on his expertise as our company continues to evolve and targets near-term and longer-term growth opportunities.

Flight Centre shares are up 0.6% at the time of writing, trading for $12.26 apiece.

The post Why is everyone talking about Flight Centre, Air New Zealand and Virgin Australia shares on Friday? appeared first on The Motley Fool Australia.

If you are, then it could be worth hearing what analysts at Morgans are saying about the three listed below.

Is the broker bullish or bearish on them? Let's find out.

Domino's Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator delivered an underlying profit that was ahead of expectations in FY 2026.

However, Morgans believes the earnings beat was low quality and driven by lower net interest expense and depreciation and amortisation. 

As a result, the broker has retained its hold rating on Domino's shares with a $20.00 price target. It said:

Underlying NPAT of A$121.6m (+4.0% on the pcp) beat MorgansF A$117.8m and Visible Alpha A$119.4m and finished at the top end of pre-released guidance, but the beat was low quality, with EBIT up 1.0% to A$200.1m and carried by lower D&A (-15.7% on the pcp) and net interest expense. The balance sheet is strong, with net leverage down to 1.86x, free cash flow of A$164.1m and a 32.5cps final dividend (+51.2%) with a 50% payout ratio.

FY27 started soft with -5.8% same-store sales (SSS) for the first 8 weeks. We maintain HOLD and lift our price target to A$20.00 (from A$17.60); we view the reset as necessary, but the recovery is cost led and volume growth needs to return.

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans was disappointed with this travel agent giant's FY 2026 results, highlighting that its profits were at the lower end of its guidance range and its guidance was underwhelming.

Nevertheless, due to its cheap valuation, the broker has retained its buy rating with a $14.25 price target. It commented:

FLT's FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict. Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start. 

With one-off costs associated with Productive Operations and World360 Rewards now being placed above the line, we have made minor downgrades to our forecasts. While investors will need to be patient for another six months, FLT's fundamentals remain attractive (FY27F PE of 11.6x) and we retain a Buy rating with a new A$14.25 price target. When operating conditions ultimately improve, both its earnings and share price will be materially higher.

WiseTech Global Ltd (ASX: WTC)

This logistics technology company delivered a result that was largely in line with expectations in FY 2026.

In response, the broker has retained its buy rating on WiseTech shares with a price target of $62.50. It said:

WTC's FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range. While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27. 

FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%. Our Underlying EBITDA forecasts are revised by +3%/-2% in FY27-FY28F and we retain our BUY rating with a price target of A$62.50ps (previously A$67.00ps).

The post Buy, hold, sell: Domino's, Flight Centre, and WiseTech shares appeared first on The Motley Fool Australia.

At the time of writing, the Flight Centre share price is down 6.79% to $12.08.

The reaction is probably not what shareholders were hoping for, especially with a few solid numbers in the result.

But once you dig a little deeper, there are also some weaker spots that help explain why the market has reacted this way.

Let's take a closer look at the numbers.

FY26 results were mixed

Flight Centre reported record total transaction value (TTV) of $25.7 billion, up 4.7% from FY25, while revenue increased 2.5% to $2.9 billion.

Underlying EBITDA also moved higher, rising 3.9% to $466 million. However, underlying profit before tax went the other way, falling 4% to $278 million.

Statutory net profit after tax (NPAT) increased 38% to $149 million, while earnings per share (EPS) jumped 43% to 70.9 cents.

Shareholders also received some good news on the dividend front, with Flight Centre declaring a fully-franked final dividend of 30 cents per share. This takes the full-year payout to 42 cents, up 5% on FY25.

The company said trading was strong through the first 9 months before conflict in the Middle East disrupted travel during the fourth quarter.

Flight Centre estimates the disruption cost its leisure business around $60 million in profit.

Why are Flight Centre shares falling?

The weaker result from Flight Centre's leisure business looks to be one of the biggest reasons investors are selling the shares today.

Barrenjoey analyst Matt Ryan said underlying profit before tax came in around 2% below market expectations, while the leisure division missed consensus by about 8%.

There was still growth in travel volumes, with leisure TTV rising 7.4% to $12.6 billion. But that didn't flow through to earnings, with underlying EBITDA falling 6.7% to $250 million and underlying profit before tax dropping 21.7% to $139 million.

The corporate business had a stronger year, with underlying profit before tax rising 28% to $240 million.

Furthermore, there's also a few reasons for investors to be cautious heading into FY27.

Flight Centre expects corporate earnings to be more heavily weighted toward the second half, with first-half profit likely to come in below last year.

Flight Centre pointed to the Middle East war, upfront investment, currency movements, and contract timing as reasons for the softer start.

What happens next?

Despite the subdued mood, there are still a few positive signs heading into FY27.

Flight Centre said July delivered record TTV and its strongest July leisure profit since 2015.

Long-haul travel from Australia is also starting to improve, which could help the business over the year ahead.

RBC Capital Markets highlighted the strong July performance, although there's still some uncertainty around how quickly earnings can recover.

Investors should get a better idea in November, when Flight Centre plans to provide its FY27 earnings guidance at its AGM.

The post Flight Centre shares are sinking 7% after its FY26 results. Here's why appeared first on The Motley Fool Australia.