I've been running the numbers on five popular companies to see what sort of returns investors might expect over the next four years. And some of the results surprised me.

Commonwealth Bank of Australia (ASX: CBA) was an obvious place to start. It is one of Australia's most highly regarded businesses, but investors already pay a substantial premium to own the big four bank. How much upside does that leave?

Then there's Coles Group Ltd (ASX: COL). The supermarket giant has been struggling with increased competition and pressure on earnings, but could things look considerably better by 2030?

I was also keen to look at CSL Ltd (ASX: CSL), which is working to restore its earnings growth, and Goodman Group (ASX: GMG), whose enormous data centre development pipeline could transform its business over the coming years.

And I couldn't leave out WiseTech Global Ltd (ASX: WTC). Its logistics software business has substantial growth opportunities, although the acquisition of e2open has introduced new challenges.

To estimate what these companies might be worth in 2030, I've projected their earnings through to FY 2030.

I've then applied a price-to-earnings (P/E) ratio that reflects each company's growth prospects, business quality, and historical valuation.

Finally, I've compared the results with their latest share prices to estimate the potential returns.

Of course, nobody can predict exactly what shares will be worth in four years. But I think this approach can help identify where investors might be getting a good deal (or not!).

And there were some interesting findings.

Coles shares

I'll start with Coles, which has recently disappointed investors with a weaker-than-expected trading update.

Competition has increased, customers remain price-conscious, and management is investing in lower prices to improve sales momentum.

That's putting pressure on near-term profits, but I think these investments could strengthen Coles' competitive position over time.

The ASX share also has opportunities to improve efficiency through its automated distribution centres and broader supply chain operations.

I believe these initiatives could help Coles grow earnings faster than sales over the coming years. For my calculations, I've assumed annual earnings per share (EPS) growth of approximately 7%, with a P/E ratio of 23 times in 2030.

I think that's a reasonable valuation for a defensive supermarket business with an established market position and relatively predictable earnings.

Based on its latest share price, my calculations suggest Coles shares could be worth $26.22 in 2030, representing approximately 18% potential upside.

That's not an extraordinary return, but it becomes more attractive when you include the dividends shareholders could receive along the way.

However, the other four companies produced some much more surprising results.

One popular ASX share could actually be worth less in 2030, even if its earnings keep growing. Meanwhile, another could deliver almost 80% upside without returning to its former premium valuation.

Here's what my calculations revealed.

CBA shares

CBA is an excellent business. It has an enormous customer base, a dominant position in Australian banking, and a strong record of profitability.

But a great business doesn't automatically make a great investment at any price.

I've assumed that CBA can grow its EPS by approximately 3% annually over the forecast period.

This reflects my expectation that the bank will continue growing its lending operations, although competition, higher interest rates, and a weaker housing market could limit growth.

I also believe investors will be happy to continue paying a premium to own CBA shares. That's why I've applied a P/E ratio of 21 times to its forecast FY 2030 earnings, which is still above its longer-term historical average.

Even with that premium, my calculations suggest CBA shares could be worth just $153.93 in 2030, approximately 7% below their current price.

Though it is worth noting that dividends could offset the decline and potentially deliver a positive total return.

Nevertheless, I was surprised by how little capital appreciation my assumptions produced for such a highly regarded company.

CSL shares

I believe CSL has attractive long-term earnings growth prospects, with its Behring division providing a major opportunity. The division supplies treatments for serious illnesses, including immunoglobulin therapies, where demand continues to grow.

Many patients require these treatments over long periods, providing CSL with a dependable source of revenue.

The company is also working to make plasma collection and manufacturing more efficient, which could help improve profit margins as sales increase.

For my valuation, I've assumed average annual earnings growth of 6.4% and a P/E ratio of 26 times earnings in 2030. This is well below the multiples investors have historically been willing to pay for CSL, but I think it is appropriate given recent challenges.

Based on these assumptions, I estimate CSL shares could be worth $281.58 in 2030, representing approximately 39% upside from their latest share price.

I think that's an attractive return without needing CSL to recover its former premium valuation.

Goodman shares

Goodman is another ASX share that I believe could deliver good returns over the coming years.

The industrial property giant has become a major player in data centre development, with these facilities now accounting for 79% of its $19.7 billion development work in progress.

Importantly, Goodman has been securing the land and electricity connections needed to build these facilities.

With suitable locations becoming increasingly difficult to find, I believe these assets could become even more valuable as demand for computing power grows.

I've assumed approximately 10% annual operating earnings growth over the forecast period. Applying a P/E ratio of 24 times to FY 2030 operating earnings produces a share price of $45.36, representing approximately 58% upside from current levels.

I think this is a compelling opportunity, especially as my forecasts don't assume a dramatic acceleration in earnings growth.

WiseTech shares

Finally, there's WiseTech, which produced the largest potential return in my calculations.

The logistics software provider has faced considerable uncertainty following governance controversies and its acquisition of e2open.

However, I believe the underlying quality of its CargoWise business remains strong. Its software is deeply embedded in customers' operations, making it difficult to replace. Meanwhile, the e2open acquisition provides opportunities to expand its product offering and improve profitability through cost savings.

I've assumed average annual earnings growth of approximately 25%, with the pace moderating as the business becomes larger.

And rather than applying WiseTech's historically lofty valuation, I've used a more conservative P/E ratio of 28 times earnings.

Based on these assumptions, WiseTech shares could be worth $79.80 in 2030, representing approximately 78% upside from their latest share price.

There's considerable execution risk, but I think the potential reward is equally significant.

The post I calculated what 5 popular ASX shares could be worth in 2030. Here's what surprised me appeared first on The Motley Fool Australia.

Analysts at Morgans have recently highlighted two companies that they believe could deliver attractive returns for investors.

Here's why the broker is feeling bullish.

Goodman Group (ASX: GMG)

According to a note out of Morgans, its analysts have upgraded this industrial property and data centre giant's shares to a buy rating with a $33.20 price target.

Based on the current Goodman share price of $27.60, its target implies potential upside of approximately 20%.

Morgans' upgrade follows Goodman's first-quarter update, which reaffirmed its FY 2027 guidance for 9% operating earnings per share growth.

The broker was encouraged by the company's $19.7 billion development pipeline, with data centres accounting for 79% of projects underway.

It also highlights Goodman's growing access to electricity, with its global power bank reaching 6.6 gigawatts. This is becoming increasingly valuable as technology companies search for suitable locations to build data centres.

And while Goodman didn't announce any new data centre leases during the quarter, Morgans isn't overly concerned. It believes this is a timing issue, noting that three projects are in advanced negotiations and market rents continue to rise.

Overall, with development activity progressing and strong demand for data centre capacity, Morgans believes the shares are undervalued.

I would have to agree with the broker on this one. I think Goodman has a very bright long-term growth outlook and appears undervalued at current levels.

Paladin Energy Ltd (ASX: PDN)

Another ASX share that Morgans is bullish on is uranium producer Paladin Energy.

This week, the broker has retained its buy rating and $13.10 price target following the company's September-quarter update.

With Paladin Energy's shares currently trading at $7.37, this implies potential upside of almost 80%.

During the quarter, Paladin Energy reported uranium production of 1 million pounds at its Langer Heinrich mine in Namibia, which was below market expectations.

This reflected a planned maintenance shutdown and weaker recovery rates caused by the characteristics of the ore being processed.

The lower production volumes and elevated costs also weighed on cash flow during the quarter. However, Morgans sees reasons to be optimistic about the longer-term outlook.

It highlights one encouraging development, which was the record realised uranium price of US$79.40 per pound achieved during the quarter.

The good news is the broker expects pricing to improve further as older sales contracts expire, allowing Paladin Energy to benefit more from stronger uranium prices.

And if the company can increase production and bring costs under control, there could be a significant improvement in its financial performance.

I think Morgans makes good points on Paladin Energy shares. However, I would prefer to wait for more consistent production before considering a position.

The post Could Goodman and Paladin Energy shares rise 20% to 80%? appeared first on The Motley Fool Australia.

NextDC said in a statement to the ASX that the two companies had, on the evening of Wednesday, 4 November, sought to buy up to 9.9% of NextDC's shares on issue at a price of $9.50 per share.

The NextDC share price surged 42.6% on the news to be trading at $9.31 on Thursday morning.

NextDC noted it did not know the outcome of the attempted share raid.

Competitors buying the dip

The two buyers have taken advantage of the steep sell-off in NextDC shares in the past couple of weeks after the company announced a major earnings downgrade on 21 October, related to an inability to get power to its M3 Melbourne data centre.

NextDC said on Thursday that the two companies had said through their brokers that they did not intend to make a takeover bid, but that they reserve the right to do so.

NextDC added:

The Board considers this an opportunistic move by Goodman and Digital Realty. The share raid comes two weeks after NextDC's 21 October 2026 announcement of the M3 Melbourne power delay and revised FY27 guidance, and was made through an aftermarket book build open only to institutional investors. The Board is not in possession of any takeover proposal at this time. Any bona fide approaches will be considered by the Board on their merits and in the best interests of all NextDC shareholders. At this time, NextDC shareholders do not need to take any action in relation to this announcement.  

Companies only need to launch a full takeover bid once their ownership stake exceeds 19.9% of another company.

NextDC has appointed Barrenjoey and UBS as advisers, indicating it could be preparing a takeover defence.

Market likes the deal

Goodman Group shares were 4.4% higher on Thursday at $28.04.

Goodman did not make any statement to the ASX following the share raid.

Goodman put out a quarterly update on Wednesday, noting that the data centre business was complex and difficult to do well, requiring strategic sites in major cities, power availability, and planning consent.

The company's financial and operational strength set it apart, it said in the statement, and it had $19.7 billion worth of work in progress globally.

Brokers divided on NextDC shares

UBS released a new research note on NextDC shares on 29 October, with a price target of $18.50.

In contrast, Morgan Stanley has a price target of just $6.70.

Foolish takeaway

NextDC certainly seems to be in play here, with Goodman and Digital Realty taking advantage of the share price weakness to build stakes.

This won't be the last we hear on this front.

The post The 'share raid' that rocketed the NextDC share price appeared first on The Motley Fool Australia.

Take Goodman Group (ASX: GMG), which has grown into a global property powerhouse and is now worth approximately $56 billion.

Then there's Telstra Group Ltd (ASX: TLS), with a market capitalisation of around $55 billion, and Woolworths Group Ltd (ASX: WOW), which is valued at close to $50 billion.

These are businesses that have established themselves as major players in their respective industries.

But something I find fascinating is thinking about what they looked like before they became so large.

The opportunity to get in early

There was a time when these companies were worth a fraction of what they are today.

Goodman, for example, spent years expanding its international property portfolio, building relationships with major customers, and positioning itself to benefit from changing demand for logistics facilities.

More recently, its expansion into data centres has opened another significant growth opportunity.

Investors who recognised the potential in businesses like Goodman long before they became giants could have enjoyed substantial returns as their earnings and market capitalisations grew.

And those who held on gave themselves the opportunity to benefit from the power of compounding.

That's something I think is worth remembering. A successful investment doesn't necessarily deliver its best returns in the first year or two. Sometimes, the biggest rewards come from allowing a company to keep growing for a decade or longer.

Of course, getting there requires finding the right businesses. Plenty of promising companies struggle to translate their ambitions into sustainable profits, and even successful businesses can become disappointing investments if you pay too much for them.

But I think there are some ASX shares today that have a realistic opportunity to become much larger businesses.

I'm interested in companies that already have proven products or services, established market positions, and opportunities to expand well beyond their current operations.

And I've identified three that I believe could eventually join Australia's $50 billion club.

None is guaranteed to reach that milestone, and the journey could take many years. But I think the potential rewards make them worth investigating.

Here are the three businesses I'd be watching.

Sigma Healthcare Ltd (ASX: SIG)

My first ASX share pick might already be familiar to anyone who regularly visits Chemist Warehouse.

Following its merger with the pharmacy giant in 2025, Sigma has become one of Australia's largest healthcare businesses.

Its market capitalisation is currently around $31.5 billion, meaning it would need to grow approximately 60% to reach the $50 billion milestone.

I think that's a realistic possibility over the longer term. Especially given the opportunity to take Chemist Warehouse's successful Australian business model into international markets.

The company's combination of competitive pricing, extensive product ranges, and strong brand recognition has proved extremely successful locally.

And we're starting to see encouraging results overseas. In its October trading update, Sigma reported that Australian Chemist Warehouse branded store sales had increased 12.1% since July, while international sales grew 30.2% in constant currency during the period.

I think those figures demonstrate the strength of the business.

Sigma is continuing to expand its store network, including in New Zealand, Ireland, and the United Kingdom. If Chemist Warehouse can establish a much larger international presence, I believe its earnings could grow considerably.

There's also the opportunity to improve profitability through the merger. Management is targeting $100 million in annual integration synergies by FY29, while greater scale could strengthen its purchasing power and operating efficiency.

Of course, international expansion takes time, and competition will be strong in some markets. But I think Sigma has a genuine opportunity to build one of the world's major pharmacy retail networks.

Pro Medicus Ltd (ASX: PME)

My second ASX share pick has already created enormous wealth for long-term shareholders.

Pro Medicus has developed into a global leader in medical imaging software, helping hospitals and radiologists view, manage, and interpret complex medical scans.

The company currently has a market capitalisation of approximately $21 billion. That means reaching $50 billion would require its value to more than double.

I think it has an opportunity to achieve this through continued international expansion and the growing importance of medical imaging.

One of the biggest challenges facing healthcare systems is the increasing number of scans being performed. As populations age and medical technology improves, doctors are relying more heavily on diagnostic imaging to identify and monitor diseases.

At the same time, many countries are experiencing shortages of radiologists. That creates demand for software that helps medical professionals work more efficiently.

Pro Medicus is already winning major contracts with hospitals across North America through its industry-leading Visage imaging platform.

In FY26 alone, the company signed 10 new contracts worth a combined minimum of $407 million. And the momentum has continued.

Just this month, it announced to the ASX two additional seven-year contracts worth a combined $67 million. I think this demonstrates how much demand there is for its technology.

What makes Pro Medicus even more attractive is its profitability. The company reported an underlying EBIT margin of almost 75% in FY26, reflecting the attractive economics of its software business.

As it wins additional customers, I think revenue growth could translate into substantial earnings increases.

There are also opportunities to expand into areas such as cardiology, digital pathology, and artificial intelligence (AI).

Its valuation remains demanding, so the company will need to deliver significant earnings growth to justify a $50 billion market capitalisation.

But I believe it has the technology, market opportunity, and financial strength to make that ambition realistic.

WiseTech Global Ltd (ASX: WTC)

My final ASX share pick is WiseTech Global, which provides software used by logistics businesses to manage the movement of goods around the world.

With a market capitalisation of approximately $13.9 billion, WiseTech has the furthest to travel of my three selections. It would need to become almost four times as valuable to reach $50 billion.

That's a substantial challenge, but I think its global opportunity means it is possible in time.

WiseTech's CargoWise platform helps freight forwarders and logistics providers manage complicated international operations, including customs processes, shipments, and documentation.

Once businesses have integrated this software into their operations, replacing it can be expensive and disruptive. I think that gives WiseTech a valuable competitive position.

The company has also expanded significantly through acquisitions, most notably its purchase of e2open. This has broadened its exposure to global supply chain management and created opportunities to offer customers a wider range of services, potentially supporting margin expansion.

The company still needs to demonstrate that it can successfully integrate its acquisitions, manage debt, and address regulatory and governance concerns. But if WiseTech can strengthen its position as a leading global logistics software provider, I believe its current market capitalisation could eventually look quite modest.

Foolish takeaway

I believe all three ASX shares have the potential to become $50 billion companies over the next decade.

Each has a strong position in its market and plenty of opportunities to expand, which could support substantial earnings growth in the years ahead.

If they can continue delivering on that potential, I think patient shareholders could be well rewarded.

The post 3 ASX shares with a realistic shot at becoming the next $50 billion giant appeared first on The Motley Fool Australia.

However, a clear trend is in play and the market has weakened markedly from its record high during earnings season.

The good news is that experts see good buying opportunities for shrewd long-term investors.

If you're keen on buying the dip, here are some of their recommendations.

PLS Group Ltd (ASX: PLS)

The PLS share price is $2.69, down 2.2% on Friday.

Over the past month, this ASX 200 lithium share has lost 30% of is valuation.

UBS renewed its buy rating on PLS shares yesterday.

The broker lowered its 12-month price target from $5.30 to $4.90.

This suggests a potential 80% upside ahead.

ASX lithium shares have taken a beating following a 20% fall in the lithium price over the past month.

However, official government forecasts show lithium prices are expected to soar 63% in FY27.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment shares are $15.41, up 3.4% today.

This ASX 200 financial share has increased 16% over the past month.

Canaccord Genuity reiterated its buy rating this week.

The broker cut its price target from $24.53 to $22.84.

This implies potential capital gains of 47% ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $44.20, down 1.5% today.

Over the past month, this ASX 200 mining share has fallen 15%.

UBS reaffirmed its buy rating on Mineral Resources shares with a 12-month target of $72.

This suggests a potential 62% upside ahead.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is $7.88, up 0.2% on Friday.

This ASX 200 coal share has edged 2% higher over the past month.

Ord Minnett renewed its buy rating on Whitehaven Coal shares with a $10.30 target.

This implies potential capital growth of 30% over the next year.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 78 cents, up 0.3% today.

Over the past month, this ASX 200 gold share has fallen 11%.

Morgans renewed its buy rating on Minerals 260 shares on Tuesday.

The broker has a $1.57 target, which suggests the stock could double over 12 months.

Goodman Group (ASX: GMG)

The Goodman share price is $26.95, down 1.3% on Friday.

This ASX 200 property share has fallen 0.9% over a month.

UBS reaffirmed its buy call on Goodman shares on Thursday.

The broker lifted its price target from $33.66 to $34.46.

This implies 28% upside over the next year.

The post 6 ASX shares experts see as buying opportunities in a weaker market appeared first on The Motley Fool Australia.

Three in particular stand out to me as businesses that I would be happy to own for many years.

Here's why I believe they could be excellent long-term investments.

Goodman Group (ASX: GMG)

Goodman is increasingly a way to invest in the shortage of suitable data centre sites, not just demand for warehouses.

Building a data centre requires more than land. Operators need large, reliable electricity connections in locations close to their customers, and securing those connections can take years. Goodman has spent years assembling sites with access to power in major cities.

At the end of June, data centres represented 78% of its $19.7 billion development work in progress. That's a substantial amount of work capable of generating development earnings as projects are completed, alongside future property investment and management income.

I like that this opportunity is already visible in its financial results.

Thanks partly to a growing contribution from data centre developments, FY 2026 operating profit rose 15.7%. Looking ahead, Goodman is targeting 9% operating earnings per share growth in FY 2027.

Life360 Inc (ASX: 360)

Life360's family safety app has an enormous audience. In the June quarter, monthly active users rose 16% to 102.4 million.

The good news is that its paying customer base is growing even faster. It revealed that paying family groups increased 27% to 3.2 million, while average revenue per paying group also rose 5%.

This helped subscription revenue jump 31% during the quarter.

I believe there is plenty more growth to come as Life360 encourages more families to take out paid subscriptions for additional safety features.

With more than 100 million people already using its app each month, I think the company has an enormous opportunity to grow its subscription business and become significantly more profitable over the next five years.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another ASX growth share I'd happily hold for years. Its Visage software helps doctors view and analyse medical scans, and hospitals are increasingly choosing it to replace older systems.

What encourages me is the evidence that customers want to stay. In FY 2026, Pro Medicus signed 10 new contracts worth at least $407 million and renewed all six agreements due for renewal, worth another $141 million.

Its underlying EBIT margin reached 74.9%, demonstrating how successfully additional software revenue can translate into profit.

And with opportunities in cardiology, digital pathology and artificial intelligence (AI), I don't think its growth story is close to finished.

Its shares are expensive, but I believe its contract momentum and exceptional profitability make Pro Medicus an excellent candidate for a long-term investment.

The post Why I would buy and hold these top ASX growth shares appeared first on The Motley Fool Australia.

Broker Canaccord Genuity has this week released a research report on the listed real estate sector and notes that it has significantly underperformed the broader market this year.

Not surprisingly, they argue this is due to the four interest rate increases to date this year, with another likely in November.

But they also point out that the market is pricing in the next interest rate increase as the final one in the cycle, before rates then begin to fall.

They added:

While policy easing appears unlikely until at best late 2027, we believe now is a good time to explore countercyclical opportunities, given markets are inherently forward-looking and typically move well ahead of actual changes in monetary policy.

CG said real estate has a strong inverse relationship with interest rates, and at the moment, the sector is closest to "trough valuations" among rate-sensitive sectors.

They said the sector was trading at levels similar to prior cycle lows and materially below its five-year average.

CG added:

In addition, interest rates are the primary headwind facing Real Estate, making it the 'cleanest' rates play. REIT earnings are largely underpinned by contracted rents, making them less directly exposed to swings in consumer spending, even in consumer-facing subsectors such as retail property.

CG has selected four companies as their preferred real estate exposures.

These are:

Goodman Group Ltd (ASX: GMG)

CG said Goodman Group has attractive fundamentals, and its growing data centre portfolio exposes it to the AI thematic.

The company is currently trading at a 23% discount to its five-year average, and "the valuation appears attractive for this level of growth, with potential near-term lease announcements providing scope for the stock to re-rate''.

Scentre Group Ltd (ASX: SCG)

The broker said Scentre is a high-quality defensive stock, with its portfolio of Westfield shopping centres, which boast near-full occupancy.

While its retail tenants are sensitive to rate increases, Scentre's income is supported by contracted leases with inflation-linked reviews.

Scentre is trading at a 22% discount to its five-year average, CG said.

Charter Hall Group Ltd (ASX: CHC)

CG said Charter Hall was the strongest beneficiary of an interest rate stabilisation scenario and was looking cheap, with its price-to-earnings ratio having dropped 30% from its 2026 highs.

The broker said they believed this drop was due to interest rates rather than stock-specific concerns.

They added:

CHC offers compelling value for a high-quality franchise with a double-digit EPS growth outlook, particularly for investors who believe rates are near their peak.

GPT Group Ltd (ASX: GPT)

CG said GPT, "offers broad-based Australian real estate exposure across the retail sector (40% of value), office (37%) and logistics (24%), alongside a growing funds management business''.

The company's high-quality retail centres, with near-full occupancy, anchored earnings, and the company had historically benefited from falling rates.

The broker said GPT was trading at 32% below its five-year average on a price-to-earnings basis.

The post ASX real estate shares are near cyclical lows. Is it time to buy in? appeared first on The Motley Fool Australia.

After all, even an outstanding company can turn out to be a disappointing investment if you pay too much for its shares.

That's why I like looking for opportunities where a company's share price doesn't appear to reflect the quality of its operations or its long-term earnings potential.

And with some well-established shares on the S&P/ASX 200 index (ASX: XJO) trading on valuations that look unusually attractive, I decided to see what opportunities were available.

My focus was on ASX 200 shares with strong competitive positions, healthy financial foundations, and opportunities to grow earnings over time.

Here are three that stood out.

Amcor PLC (ASX: AMC)

The first ASX 200 share that caught my attention is packaging leader Amcor. Its products are used by companies selling food, beverages, pharmaceuticals, personal care products, and other everyday essentials.

These are industries where packaging is necessary regardless of economic conditions, providing Amcor with a relatively dependable source of demand.

And following its acquisition of Berry Global, Amcor has become an even more significant player in the global packaging industry.

The combined company has opportunities to reduce costs, improve efficiency, and offer customers a wider range of products. Management is targeting approximately US$650 million in annual earnings and financing benefits from the combination by mid-2028.

One thing that has caught my attention is its valuation. At around $66.00, Amcor trades on a PE ratio of approximately 11.3 times forecast FY 2027 earnings.

It then falls to just 10.8 times forecast FY 2028 earnings. And with forecast dividends of $3.80 per share in FY 2027, investors could also be looking at a forward dividend yield of approximately 5.8%.

For a global market leader with opportunities to improve profitability, I think that represents attractive value.

However, Amcor isn't the only quality company offering what looks like a compelling entry point. In fact, the other two ASX shares on my shortlist are businesses that investors have historically been willing to pay a substantial premium to own.

One has regularly traded on earnings multiples above 40 times, while the other is positioned to benefit from an enormous global investment boom.

Yet at their current prices, I believe both could offer exceptional opportunities for patient investors.

So, which companies are they, and why do their valuations look so appealing?

REA Group Ltd (ASX: REA)

One ASX 200 share I was pleased to see appearing attractively valued was REA Group.

I've long regarded the operator of realestate.com.au as one of the highest-quality businesses on the Australian share market.

And a big reason for that is its extraordinary market position. During FY 2026, an average of 12.7 million Australians visited realestate.com.au each month. That enormous audience makes the platform an essential advertising destination for real estate agents looking to reach potential buyers.

It also means REA can charge premium prices for its advertising products, particularly when agents want their listings to stand out.

The power of this business model was demonstrated in FY 2026. Despite national residential listing volumes remaining flat, REA increased Australian residential revenue by 12%, helped by a 13% increase in revenue generated per listing.

And with operating costs growing more slowly than revenue, the company continues to demonstrate its ability to turn additional sales into substantial profits. Its core earnings per share increased 15% to $4.93.

However, I think the most compelling part of the investment case is its valuation. At a share price of around $165.91, REA Group trades on a PE ratio of approximately 28.5 times forecast FY 2027 earnings.

It then falls to just 25 times forecast FY 2028 earnings.

To put those figures into perspective, REA Group's annual PE ratios over the past decade have averaged approximately 44 times, with several years above 50 times earnings.

Of course, a weaker housing market and increased competition could constrain earnings growth and justify some reduction in its valuation.

But REA doesn't necessarily need a booming property market to grow. Its pricing power, increasingly sophisticated advertising products, and expanding property-related services provide additional opportunities.

As a result, if its earnings continue growing at attractive rates, I believe today's share price could prove to be an excellent entry point.

Goodman Group (ASX: GMG)

The final ASX 200 share on my shortlist is Goodman Group.

I think Goodman is attractive because its business has evolved considerably over the past decade.

While it remains a major owner, developer, and manager of industrial properties, data centres are becoming an increasingly important source of growth.

And this is an area where Goodman has some valuable advantages. Building a large data centre requires considerably more than purchasing land and constructing a building.

Developers also need access to substantial electricity supplies, suitable locations, planning approvals, and customers prepared to commit significant capital.

Goodman has spent years assembling a global portfolio of properties and development sites that can meet these requirements.

As a result, it is exceptionally well positioned to benefit from increasing investment in artificial intelligence (AI) and cloud computing infrastructure.

Its FY 2026 results provide some indication of the scale of this opportunity. Goodman reported $19.7 billion of development work in progress, with data centres accounting for approximately 78% of the total.

It has also secured access to a global power bank of 6.4 gigawatts across 16 major cities.

Despite its strong growth prospects, Goodman's shares have become considerably more affordable than investors have grown accustomed to.

At $26.32, Goodman trades on approximately 18.5 times forecast FY 2027 earnings per share. And looking ahead to FY 2028, the multiple falls to around 17.4 times based on forecast earnings.

For a business with Goodman's development capabilities, financial strength, and exposure to a major structural growth opportunity, I find that valuation attractive.

Data centre developments are capital-intensive, and their profitability depends on securing customers, managing construction costs, and completing projects successfully.

Nevertheless, with much of Goodman's development pipeline already focused on this growing market, I believe its earnings could be substantially higher over the next decade.

And at today's valuation, I think investors are being offered an unusually attractive opportunity to participate in that growth.

The post I screened the ASX 200 for quality shares trading at a discount. These 3 stood out appeared first on The Motley Fool Australia.

I think I'd approach ASX share picking a little differently.

I'd want businesses I could trust to keep making progress without me watching every announcement or share price movement. Strong market positions, capable management, and long-term growth opportunities would be especially important.

I'd also want variety. Even a great company can have a difficult year, so I wouldn't want the entire portfolio relying on the same industry.

With that in mind, these are the 10 ASX shares I'd choose.

Commonwealth Bank of Australia (ASX: CBA)

I'd start with Commonwealth Bank because I like how firmly established it is in everyday Australian life.

Millions of customers rely on the bank to receive their wages, pay bills, manage savings, and finance their homes. Once people have built their financial lives around a bank, switching can be a considerable undertaking.

That gives CBA a valuable base of long-standing customer relationships.

I also like how seriously the bank takes technology. Its digital services make banking convenient for customers while helping it handle enormous transaction volumes efficiently.

I think that investment could help defend its market position as financial services continue changing.

Of course, CBA isn't immune to problems. Higher borrowing costs can put pressure on households, an economic downturn could increase bad debts, and the shares often trade at a premium valuation.

But if I weren't allowed to check my portfolio until next October, CBA is the kind of business I'd feel comfortable owning.

I think CBA would be a great starting point, but some of the other nine ASX shares could be even more important to the portfolio's success.

Here's what else would make my list.

Goodman Group (ASX: GMG)

Goodman would give me exposure to the growing demand for industrial properties and data centres.

What I particularly like is that the company has spent years building relationships with major customers and securing well-located development sites.

Those advantages are increasingly valuable as businesses look for facilities with reliable electricity access, particularly for data centres.

Developing these properties requires considerable planning and investment, so I wouldn't expect progress to happen overnight.

I'd be happy checking Goodman's development pipeline once a year and seeing how its projects were progressing towards completion and generating income.

BHP Group Ltd (ASX: BHP)

Mining giant BHP earns a place because I like its ability to plan decades ahead.

Building a major mine requires enormous investment, technical expertise, and infrastructure. BHP already owns assets that would be extremely difficult for competitors to replicate.

It also has opportunities to extract more value from existing operations, including its expanding copper business in South Australia.

Commodity prices will fluctuate, sometimes sharply. But I wouldn't want to make investment decisions based on every movement in iron ore or copper prices.

I'd be more interested in whether BHP was keeping costs competitive, maintaining financial strength, and making sensible investments.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a company I'd trust to make sensible decisions while I wasn't watching.

Bunnings, Kmart, and Officeworks have strong positions in familiar retail markets, but I think the bigger advantage is the group's approach to managing capital.

It can invest in businesses that are performing well, improve weaker operations, and pursue new opportunities when they make sense.

I like having a management team that can adjust its priorities as conditions change, rather than relying on a single growth strategy.

That's a valuable quality when you're leaving investment decisions in the company's hands.

Coles Group Ltd (ASX: COL)

I'd want at least one business providing something households need almost every week.

Coles fits that description. Its supermarkets benefit from regular grocery demand, and its investments in automated distribution could help improve efficiency over time.

What I'd be looking for is steady progress in controlling costs, improving its operations, and keeping customers coming through the doors.

I think Coles has the scale and established network to remain a major part of Australian retailing, making it a reassuring addition to a portfolio I'd rarely check.

Macquarie Group Ltd (ASX: MQG)

Macquarie would add a different kind of financial business to CBA.

Its operations span infrastructure, asset management, banking, and commodities markets, giving it opportunities to invest and generate earnings internationally.

Large investment transactions don't necessarily happen when analysts expect them to, and a quieter period doesn't automatically mean the business is struggling.

I'd rather assess how Macquarie was developing its businesses and investing capital over a full year than worry about the timing of individual transactions.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is another ASX share I'd be happy leaving to get on with its growth plans.

Following its merger with Chemist Warehouse, it has become a major force in Australian pharmacy retailing and pharmaceutical distribution.

What I like is that management has a clear opportunity to grow the business by opening more stores, expanding internationally, and making the combined operations more efficient.

I think an annual review would suit this investment well. I'd want to see whether Sigma was expanding its store network, improving profitability, and delivering the savings expected from the merger.

Those developments would tell me much more about its progress than short-term share price movements.

REA Group Ltd (ASX: REA)

REA is an ASX share I'd want in my portfolio because of its powerful position in Australia's property market.

Its realestate.com.au platform brings together property buyers, sellers, and agents.

Agents want to advertise where buyers are looking, while buyers visit because that's where so many properties are listed. That creates an advantage that I think would be extremely difficult for a competitor to overcome.

Property market conditions will influence advertising activity, but REA has an established audience and opportunities to develop additional services around it.

I like that the business can continue building on a market position it already owns.

Breville Group Ltd (ASX: BRG)

Breville has built a strong reputation for premium coffee machines, particularly in North America and Europe.

What I like is that the company has a clear path to further international growth. It can expand into new markets, reach more customers in existing ones, and introduce products that build on its established reputation.

I wouldn't feel the need to follow every product launch or monthly sales trend.

Checking once a year to see whether Breville was growing its international presence and strengthening its brand would be enough for me.

ResMed Inc (ASX: RMD)

I'd round out my portfolio with ResMed, an ASX share I think has a particularly dependable source of long-term demand.

Millions of people around the world are living with undiagnosed sleep apnoea, and I expect more of them to seek treatment as awareness and diagnosis improve.

ResMed already has a leading position in this market, supported by its established medical technology and relationships with healthcare providers.

I like that its growth doesn't depend on predicting the next big trend. The need for effective sleep apnoea treatment is already there, and I think ResMed is well placed to help more patients each year.

That's the kind of business I'd feel comfortable checking in on annually.

Foolish takeaway

I wouldn't expect these 10 shares to outperform every year, and I'd still want to review their investment cases during my annual check.

But I like the thought of owning businesses with established strengths and management teams capable of making good decisions without my constant attention.

If I could only look at my portfolio once every 12 months, these are the companies I'd trust to get on with the job.

The post If I could only check my ASX portfolio once a year, these are the 10 shares I'd own appeared first on The Motley Fool Australia.

I want to invest in good-quality companies which are reliable and that remain relatively reliant through each stage of the economic cycle.

But it's not as easy as I expected to pinpoint exactly what those shares could be, especially in today's volatile markets where sentiment can easily shift overnight.

The good news is, I've done a lot of the ground work.

I've scoured the market for ASX investments which I think fit the brief.

And these four made my shortlist.

APA Group (ASX: APA)

When it comes to reliable long-term ASX investments, it's hard to look past APA. The stock stands out among the rest of the market thanks to its monopoly across Australia's energy infrastructure, combined with a growing pipeline, inflation-linked cash flow, and incredibly long-standing and reliable dividend payments, which means my kids can benefit from a steady passive income, too.

APA is an Australian energy infrastructure giant that owns and operates an extensive portfolio of electricity, solar, and wind assets across the country. It's also the major owner and operator of Australia's gas distribution network, including pipelines, gas-fired power stations, and storage facilities, which transports more than half of Australia's natural gas.

A large majority of APA's revenue is derived from long-term contracted infrastructure assets and linked to inflation, giving the business steady and growing revenue with a long-term outlook. 

The company is also continually working to scale its business. Its organic pipeline sits at around $3.5 billion, driven by major gas grid expansions, Victorian pipeline upgrades, and other power generation projects designed to address Australia's energy shortfalls through FY27 to FY29.

APA is also highly regarded for its strong and consistent dividend payments and has historically paid two partially franked or unfranked dividends a year, dating back to 2008. The company paid a total 58-cent payment for FY26, translating to a dividend yield of around 5.1% at the time of writing.

Transurban Group Ltd (ASX: TCL)

Transurban is one of my favourite ASX shares for long-term investing. The company is a global infrastructure business that builds and operates urban toll road networks, tunnels, bridges, and operates 22 assets across Australia, the US, and Canada.

Because toll roads are an essential service, the business is widely considered a high-grade defensive stock. And when I'm investing for my kids, this is the sort of asset which can stand the test of time.

After all, regardless of what point of the economic cycle we're in, Australians will still need to travel, whether it's to work, school, transportation of goods, or any other reason.

Even better is that most of its toll roads are on an annual contract, which means Transurban is able to increase its toll prices each year in line with rising inflation.

Its defensive nature means Transurban's toll roads typically have stable traffic volumes year-round, and that translates directly into a strong and resilient cash flow and consistent earnings. 

Which then translates into a reliable passive income for my kids' ASX investment portfolio.

Transurban has paid a regular dividend to its shareholders twice per year dating back to 2008. And with the exception of the 2020 pandemic year when most of the country was in lockdown, these have gradually climbed higher each year too. 

For FY26, Transurban paid shareholders a total 69-cent dividend, unfranked, which translates to a dividend yield of around 5% at the time of writing.

CSL Ltd (ASX: CSL)

I landed on CSL shares for a slightly different reason.

CSL is traditionally classified as a defensive stock because global demand for healthcare, plasma therapies, and vaccines remains steady during economic downturns. But, the company has faced several hurdles over the past couple of years which has smashed its share price. 

What I find most interesting about CSL is its long-term growth potential.

The near-term picture looks a little scary, and any setback of the company's latest growth projection could be devastating for investor confidence and the company's share price.

But CSL already has an incredibly dominant market position in a high-growth market. And its position could well grow stronger, too. There will also be an ongoing need for immunoglobulin, influenza vaccines, and plasma therapies, and CSL is well-placed to scoop up a lot of that demand.

Management's structural reset, cost efficiency plans, strong market position, and demand for its products suggest the company is finally finding its feet, and it looks like the long-term road to recovery is now underway.

As a long-term investment, CSL doesn't offer the unwavering stability that the two ASX shares above offer. But it does present the opportunity for huge growth over the next three to five years, or even longer, which I think can be just as valuable.

It pays its shareholders a dividend too, dating back to 2004. Although, after the company's operational reset, its $4.05 per share dividend payout represents a low dividend yield of around 2% at the time of writing.

Goodman Group (ASX: GMG)

Goodman Group is another type of ASX investment entirely. The company is an integrated property group with operations in 14 countries. It specialises in industrial and commercial properties, owning, developing, and managing a global portfolio worth around $80 billion.

The company is a great long term ASX investment option because it has a strong balance sheet, has consistent earnings, benefits from high occupancy rates, and its recent shift into AI data centre developments also means its growth prospects are diverse.

Markets are widely anticipating an explosion in data usage driven by an uptick in artificial intelligence (AI) workloads, cloud computing, and digital transformation. And that means demand for data centres could also experience a huge surge.

In FY26, Goodman delivered an operating profit of $2.675 million, up 15.7% year on year. Its operating earnings per security (OEPS) reached 129.9 cents (up 10.1%).

When it comes to passive income, Goodman Group doesn't come out on the top of the pile. Only around 25% to 28% of its income comes from passive rent, versus traditional property trusts (REITs) that pay out closer to 80% to 100% of their passive rental income directly to investors as distributions.

Goodman's dividend payout has stayed steady at 15 cents per unit since December 2018, giving a yield of around 1.1%, which is lower than the market average.

But passive income is just one thing I take into account when weighing up options for my kids' portfolios. If I was looking for a long-term ASX investment that is reliable, and with strong prospects to expand into a booming data centre market, Goodman Group would be a top pick.

The post I've been looking for long-term ASX investments for my kids. These 4 made my shortlist appeared first on The Motley Fool Australia.

By the time trading wrapped up, the index had fallen 0.64% and finished at 8,727.9 points.

This unhappy hump day for the local markets followed a similarly downbeat session over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't quite hold on to an early lead, losing 0.35%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little better, but still lost 0.15%.

But let's return to ASX shares now and check out how the different ASX sectors handled today's tough trading conditions.

Winners and losers

There were only a handful of sectors that managed to make hay today.

But first, let's get through the red corners of the market.

Leading the losers were gold shares. The All Ordinaries Gold Index (ASX: XGD) had a shocker, crashing 1.93% lower.

Financial stocks weren't much chop either, with the S&P/ASX 200 Financials Index (ASX: XFJ) plunging 1.41%.

Mining shares also had a day to forget. The S&P/ASX 200 Materials Index (ASX: XMJ) took a 0.88% dive this session.

Industrial stocks couldn't escape the storm, evident from the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.71% slump.

Nor could consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) drifted 0.31% lower today.

Utilities stocks couldn't hold their ground, with the S&P/ASX 200 Utilities Index (ASX: XUJ) sliding 0.06% lower.

Our last losers this Wednesday were consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slipped by 0.04%.

Let's turn to the winners now. Leading the charge were real estate investment trusts (REITs), illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 1% jump.

Communications stocks were also spared. The S&P/ASX 200 Communication Services Index (ASX: XTJ) had lifted 0.85% by the closing bell.

Energy shares were another bulwark against the broader market, with the S&P/ASX 200 Energy Index (ASX: XEJ) climbing 0.8%.

Tech stocks fared decently as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) enjoyed a 0.35% bump this hump day.

Finally, healthcare shares managed to finish over the line, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 0.02% uptick.

Top 10 ASX 200 shares countdown

Our winner this Wednesday was shipbuilding stock Austal Ltd (ASX: ASB). Austal shares rocketed up 10.13% to close at $4.13 each today.

This big gain came after the company revealed another development in its long-running takeover saga.

Here's how the other winners pulled up at the kerb:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

This meant finding ASX shares capable of growing earnings at attractive rates, but avoiding paying a price that assumes too much of that growth in advance.

I still like that approach. But these days, I prefer quality at a reasonable price, or QARP.

With GARP, growth tends to be the starting point. With QARP, I start with the quality of the business.

I want ASX shares with strong competitive positions, attractive economics, healthy balance sheets, good cash generation, and the ability to keep reinvesting for years. Only then do I ask whether the valuation leaves enough room for an attractive return.

Why the shift? Because growth can disappear quickly. A fast-growing company can slow or lose market share. A genuinely high-quality business has a better chance of handling setbacks and continuing to create value.

That does not mean valuation becomes less important. A wonderful business can still be a poor investment if its share price already assumes a near-perfect future.

So, I recently screened the ASX 200 looking for shares offering both quality and a valuation I believe can still support attractive long-term returns.

Five stood out.

CAR Group Limited (ASX: CAR)

The first is CAR Group. I think this ASX share is a very good example of what I mean by QARP.

It operates leading automotive marketplaces across Australia and several international markets, giving it strong local economics and a longer runway offshore.

One of its biggest strengths is its network effects. Buyers gravitate towards marketplaces with the most listings, while sellers want to advertise where the buyers already are. Once that position is established, it becomes difficult for a new competitor to recreate the same audience.

CAR Group can then use that position to improve monetisation, launch new products, and grow internationally without requiring the physical capital many traditional businesses need.

I also like that the investment case is no longer resting on Australia alone. Its businesses in the United States, Brazil, and South Korea give the group several avenues for expansion.

Weaker economic conditions could reduce vehicle activity. But I think the strength of the platform, its cash generation, and its international opportunity make CAR Group a compelling long-term investment option.

And despite making my final five, it was not the opportunity that stood out most from the screen.

The remaining four include ASX shares where I think the market may be underestimating the quality or recovery potential, as well as one name that I believe currently offers the best overall QARP setup of the group.

CSL Ltd (ASX: CSL)

CSL is probably the clearest example here of a high-quality business that has fallen out of favour.

The biotechnology giant has disappointed investors in recent years. Execution has not always matched expectations and margins have faced pressure.

But I think the key question is whether those issues have permanently damaged the underlying business.

The good news is that I don't believe they have.

CSL Behring has enormous scale in plasma collection and the manufacture of therapies used to treat serious and often rare diseases. It also has decades of expertise and a global collection network that would be extremely difficult to replicate.

Demand for many of its therapies is relatively resilient.

A recovery may not be immediate, but at a touch over 17 times estimated FY 2029 earnings, I think the share price now reflects far more caution than it once did.

If management can improve execution and margins while underlying demand keeps growing, CSL could offer strong returns from here.

Goodman Group (ASX: GMG)

Goodman Group is another ASX share that I think deserves its reputation for quality.

It is often described as an industrial property group, but that does not really cover the full opportunity.

Goodman specialises in securing land, power, planning approvals, and development opportunities in locations where major customers want logistics and digital infrastructure.

That has become incredibly valuable as demand for data centres has accelerated.

Artificial intelligence (AI) and cloud computing require enormous amounts of computing capacity, which is creating demand for sites with access to power and major population centres.

Goodman's footprint and development expertise give it an advantage, while its partnership model allows it to keep recycling capital into new opportunities.

Its shares rarely look cheap and expectations around data centres are already high. But I think recent share price weakness has created an attractive entry point.

REA Group Ltd (ASX: REA)

REA Group is another ASX share that oozes quality.

Its realestate.com.au platform has an exceptionally strong position in the Australian property market.

Buyers want to search where the largest number of properties are listed, while agents and vendors want to advertise where the buyers are. That creates a powerful network effect and makes the platform difficult to displace.

REA also benefits from attractive economics. Advertising a property can represent a small percentage of a transaction's value, yet reaching the largest pool of buyers is highly important to the seller. That gives the company significant pricing power.

Listings will still rise and fall with the housing cycle. And with interest rates rising, the cycle is certainly going through a tough stretch.

But for a long-term investor, I think the bigger consideration is whether REA will still be central to how Australians search for property in another decade.

I believe it will. That is why, despite a valuation that is unlikely to look conventionally cheap, I still think REA can fit within a QARP framework.

ResMed Inc (ASX: RMD)

The final ASX share is ResMed.

Of the five, I think this one currently offers the strongest combination of quality, valuation, and expected return.

ResMed is a global leader in devices, masks, and software used to treat sleep apnoea.

What I like most is that the company still has a huge market opportunity even after decades of growth. Sleep apnoea already affects a huge number of people, but the vast majority remain undiagnosed or untreated.

As diagnosis improves and treatment rates rise, ResMed stands to benefit from more patients entering the system.

There is also an attractive recurring element to the model. Masks and other consumables need replacing, creating ongoing demand.

At around 19 times estimated FY 2027 earnings, I think its valuation is compelling relative to the quality of the business and the runway ahead. That is what I want from a QARP investment.

Final word

I am not trying to find the cheapest shares on the ASX. 

I would much rather own a great business at a sensible price than an average one simply because its shares look inexpensive.

CAR Group, CSL, Goodman, REA, and ResMed all meet that test for me in different ways.

The post I screened the ASX for quality and value. These 5 shares stood out appeared first on The Motley Fool Australia.

Let's check out some new ratings from Steven Springford at Catapult Wealth (courtesy The Bull).  

Goodman Group (ASX: GMG)

The Goodman share price is $26.52, up 0.84% today and down 22% over 12 months. 

Springford has a buy rating on this ASX 200 property share.

He said: 

Goodman provides exposure to construction and management of warehouses and data centres in major cities across the world.

Operating earnings per security of $1.299 in full year 2026 were up 10.1 per cent on the prior corresponding period.

The company is targeting operating earnings per share growth of 9 per cent in full year 2027.

GMG recently signed a 20 year lease on its data centre in Tokyo. The facility is under construction and due to be operational in 2028.

Data centres recently drove work in progress to $19.7 billion.

The shares offer value at these levels, as we believe the stock is trading at a discount.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $76.06, up 0.78% today and down 17% over 12 months. 

Springford has a hold rating on this ASX 200 consumer discretionary share. 

He commented: 

Wesfarmers owns retail giants Bunnings, Kmart and Officeworks among other businesses.

Group revenue rose 3.4 per cent in 2026 when compared to the prior corresponding period.

Basic earnings per share, excluding significant items, were up 8.3 per cent.

Growth is steady rather than exciting, so WES can be held for reliable earnings and dividends over the long term.

Increasing interest rates and weaker household spending are the main risks.

BHP Group Ltd (ASX: BHP)

BHP shares are $62.17 apiece, up 0.45% today and up 48% over 12 months. 

Springford has a sell rating on this ASX 200 mining share. 

He explained: 

The global miner delivered a strong result in full year 2026.

Attributable profit of $US9.8 billion was up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. Copper generates more than half the company's earnings.

Our issue is price rather than quality.

The shares have risen from $42.53 on September 30, 2025 to trade at $61.17 on September 30, 2026.

Continuing strong profits depend on commodity prices remaining elevated.

BHP is a great company, but taking some profit is a reasonable way to lock in gains, while keeping some resources exposure.

The post Buy, hold, sell: Goodman, Wesfarmers, BHP shares appeared first on The Motley Fool Australia.

That could make a huge difference to your lifestyle, particularly if you are approaching retirement.

And while building a portfolio capable of producing this income will take time, it is something you can start working towards today.

Here's how.

Start by buying yourself some future income

One way to approach this goal is to think about how much income each investment could eventually provide.

For example, every $20,000 invested in a portfolio yielding 5% would generate $1,000 in annual passive income.

Build that portfolio to $100,000 and you're looking at $5,000 a year. Reach $200,000 and the potential income doubles to $10,000.

Ultimately, you would need approximately $1.04 million invested at a 5% yield to generate $52,000 a year.

But of course, starting from zero means there is plenty of work to do before those dividends start paying the bills.

Let growth do the heavy lifting

Rather than chasing dividends immediately, I would start by focusing on building the portfolio's value.

This could mean investing in quality ASX growth shares such as Goodman Group (ASX: GMG) and ResMed Inc (ASX: RMD), alongside established companies such as Wesfarmers Ltd (ASX: WES).

Exchange traded funds (ETFs) could also play a role, providing exposure to hundreds of Australian and international stocks.

The idea is to build a portfolio capable of growing over many years while reinvesting any dividends received.

Regular contributions would be equally important. Investing $1,000 a month and achieving an average annual return of 10% could potentially build a portfolio worth approximately $1.04 million in 23 years.

That return isn't guaranteed, nothing is in the share market, but it demonstrates what consistent investing and compounding could achieve.

Increasing those monthly contributions as your income grows could also bring the target forward.

Turn your wealth into passive income

As the portfolio approaches its target, the investment strategy could gradually change.

Instead of focusing primarily on capital growth, investors could start directing more money towards companies offering attractive and sustainable dividends.

This could include infrastructure shares such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), property investments such as HomeCo Daily Needs REIT (ASX: HDN), and dividend-focused ETFs.

The aim would be to achieve an average yield of approximately 5% without relying too heavily on any individual company.

Once the portfolio reaches $1.04 million, that yield would produce $52,000 annually before tax.

And if the underlying companies can grow their dividends over time, the income stream could increase as well, potentially helping it keep pace with rising living costs.

The post How to build a $52,000 passive income with ASX shares appeared first on The Motley Fool Australia.

The ASX 200 fell to a four-month low yesterday amid falling oil prices and rising bond yields.

While expectations of another interest rate rise next month have cooled, many experts say a hike in 1Q FY27 is likely.

Amid the market weakness, experts are offering their advice on buy-the-dip opportunities.

They reckon the following stocks have great upside potential over the next 12 months.

Goodman Group (ASX: GMG)

The Goodman Group share price is $25.86, down 2.8% today.

Over the past six months, this ASX 200 property share has declined 1%.

Citi reiterated its buy rating on Goodman shares with a price target of $40.

This implies potential capital gains of 54% ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $33.08, up 5.6% today.

Over the past six months, this ASX 200 tech share has fallen 13%.

Citi renewed its buy rating on WiseTech shares with a $58.75 price target.

This implies a potential 77% upside ahead.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 87 cents, up 1.8% today.

Over the past six months, this ASX 200 gold share has risen 28%.

Bell Potter reaffirmed its speculative buy rating on Minerals 260 shares with a 12-month target of $1.40.

This suggests a potential 67% upside ahead.

Analyst David Coates said:

MI6 has released an updated Mineral Resource Estimate (MRE), Pre-Feasibility Study (PFS) and maiden Ore Reserve Estimate (ORE) for its 100% owned, 6.2Moz Bullabulling Gold Project (BGP), 25km west of Coolgardie in WA.

These mark the delivery of key catalysts in line with MI6 guidance and major milestones in the advancement of the BGP towards development.

MI6 offers gold exposure via the 6.2Moz Bullabulling MRE, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production.

MI6 holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $50.89, up 2% today.

This ASX 200 mining share has fallen 3% over the past six months.

UBS renewed its buy rating on the stock with a $74 target.

This implies potential capital growth of 45% over the next year.

REA Group Ltd (ASX: REA)

The REA share price is $154.62, up 0.3% today.

Over the past six months, this ASX 200 communications share has traded steady.

Jefferies reiterated its buy call on REA shares with a $194 price target.

This suggests a potential 25% upside ahead.

The post 5 ASX 200 shares brokers tip to rocket 25% to 77% appeared first on The Motley Fool Australia.

Comparing Goodman Group (ASXL GMG) and Charter Hall Group (ASX: CHC) makes a lot of sense if you're looking for reliable REIT income on the ASX. Both companies have built significant property portfolios spanning industrial, office, and retail assets, but their approach to dividends, franking, and portfolio focus differs in interesting ways. I've dug into the numbers to see which REIT might suit those chasing income – and why the choice isn't as simple as size or brand alone.

The case for Goodman Group

Goodman Group is a global giant in industrial and logistics property. Since its 2005 merger, Goodman has expanded into 14 countries, with a hefty development and investment presence in Australia, Europe, the Americas, and Asia Pacific. It owns, develops, and manages warehouses, distribution centres, and logistics hubs – putting it at the heart of e-commerce and supply chain growth. As of 30 June, its global portfolio is worth $89 billion, making Goodman the largest REIT on the ASX.

Looking at the fundamentals, I see three things stand out for Goodman:

• Market cap of $54.04 billion puts it in a different league to most local REITs.
• The P/E ratio of 19.85 (with reported EPS at $1.329) is matched by Charter Hall, so it doesn't look unusually "expensive" within this pair.
• Dividend yield is 1.14%, with dividends per share steady at $0.30 annually. Goodman's dividends have remained flat at 15 cents per half since 2020, but crucially, all payments are unfranked.

Goodman's enormous scale and prime global assets make it a core holding for many institutional money managers, especially those seeking stability and growth from industrial property.

The case for Charter Hall Group

Charter Hall Group is a diversified property manager and investor, with major activities in funds management and operating a series of listed and unlisted REITs. Charter Hall's interests range from shopping centres and logistics hubs to office buildings and early learning assets. As of 30 June, the managed portfolio covers $76 billion in assets and a strong property development pipeline.

Here's what catches my eye about Charter Hall's numbers:

• Market cap is $8.45 billion, making it a mid-sized REIT relative to Goodman.
• P/E ratio is also 19.85, with EPS reported at $0.888.
• Dividend yield is 2.87% – more than double Goodman's rate.
• Dividends per share are $0.52 annually and, importantly, heavily franked. Recent dividend history shows franking up to 90% for some payments, with a current blended franking rate around 80%.

For income-focused investors, Charter Hall looks more rewarding at first blush, not just for its higher yield but also that generous franking credit potential. Its track record over the past decade has also seen regular increases to dividends per share.

Valuation comparison

Here's how Goodman and Charter Hall stack up on key income and value metrics:

Note: Both companies report matching P/E ratios despite different EPS figures. This could reflect slight differences in the earnings calculation method or timing.

Charter Hall comes out ahead for dividend yield and offers substantial franking, making each dollar of payout potentially more valuable for after-tax income than Goodman's unfranked distributions.

Recent share price performance

Let's see how Goodman Group and Charter Hall Group shares have performed recently.

Comparing share price activity up to 28 September 2026:

• Goodman Group closed at $26.30 on 28 Sep 2026, down 14.4% year-to-date.
• Charter Hall Group closed at $17.86 on 28 Sep 2026, down 26.8% year-to-date.

In recent weeks, Goodman's share price has shown a small dip but relative resilience. Charter Hall has faced steeper year-to-date declines, despite a recent day or two in positive territory.

Which is the better buy?

If I'm focusing on income, my pick is Charter Hall Group over Goodman Group. The headline reasons are hard to ignore: Charter Hall's dividend yield is more than double Goodman's, and its dividends come with substantial franking – which means extra value at tax time for many Australian investors. Charter Hall also has a history of boosting its payout per share over time, and its current yield of 2.87% stands out in a sector where steady, inflation-beating income is prized.

Goodman Group is the titan of the sector, but with its low (and unfranked) income distributions, I think it suits those seeking global growth and stability rather than immediate income rewards. Its share price has been more resilient than Charter Hall's during this tough period for property stocks, but if reliable, tax-effective passive income is my main goal, I'd lean toward Charter Hall Group as the more attractive buy right now.

The post Goodman Group vs Charter Hall: Which ASX REIT pays better income? appeared first on The Motley Fool Australia.

For me, the best opportunities are when the valuation looks modest compared with what a business could earn over the next few years.

Here are three ASX shares I think fit that description today.

Zip Co Ltd (ASX: ZIP)

Zip is probably the most obvious value opportunity of the three.

The buy now, pay later company's shares have fallen heavily and were recently trading around $1.99, well below their 52-week high of $4.94.

What I think makes that decline interesting is the earnings outlook.

Consensus forecasts point to earnings per share (EPS) of 15 cents in FY27, rising to 18 cents in FY28 and 22.4 cents in FY29.

At $1.99, that puts Zip shares on a PE ratio of roughly 13.3 times forecast FY27 earnings. If the company reaches the FY29 estimate, the multiple falls to just under 9 times.

That looks inexpensive for a business expected to grow earnings meaningfully over the same period.

Zip still needs to deliver on those forecasts, and I would expect plenty of volatility along the way. But I think the current valuation leaves enough upside to make the shares worth buying.

CSL Ltd (ASX: CSL)

CSL shares have already staged an impressive recovery. The healthcare giant is now trading around $177.67, almost double its 52-week low of $90.

While this means it isn't as cheap as it was, I still see a lot of value in this ASX share.

Consensus forecasts point to EPS of $8.98 in FY27, rising to $9.47 in FY28 and $10.07 in FY29.

At today's price, that puts CSL on a forward PE ratio of around 20 times FY27 earnings, falling to less than 18 times FY29 earnings if those forecasts are achieved.

For a global healthcare business with strong positions in plasma therapies, vaccines, and specialised medicines, I think that valuation still looks attractive.

The sharp rebound from the lows means some of the recovery has already been recognised by the market. But with earnings expected to keep growing, I still think CSL offers enough value at current levels to remain on my buy list.

Goodman Group (ASX: GMG)

Goodman is my third pick. The shares were recently trading around $26.49, down from a 52-week high of $34.78.

What I like here is that the share price decline has happened despite its earnings growth outlook remaining positive.

Goodman generated EPS of 129.9 cents in FY26. Consensus forecasts point to 142 cents in FY27 and 151 cents in FY28.

That leaves the shares trading on around 18.6 times forecast FY27 earnings.

I think that looks reasonable given Goodman's growth opportunities, particularly its increasing exposure to data centres.

The enormous investment being made in AI and cloud infrastructure is creating demand for sites with access to land, power, and major population centres. Goodman has positioned itself to participate in that development pipeline.

Foolish takeaway

Cheap can mean different things in the share market, and I think that is what makes these three ASX shares worth another look.

None of them needs everything to go perfectly for today's prices to make sense to me. If earnings broadly move in the direction analysts expect, I think there is still room for patient investors to do well.

The post 3 cheap ASX shares I would buy now appeared first on The Motley Fool Australia.

The property giant is trading around $26.35 on Friday, well below the levels investors were willing to pay earlier in the year.

For investors considering the stock today, the obvious question is whether this weakness has created an opportunity.

Could Goodman shares climb back above $30 in 2027? I think they can.

What would it take to reach $30?

A move from $26.35 to $30 would represent a gain of around 14%.

That does not look particularly demanding to me if Goodman can deliver the earnings growth the market is expecting.

Earnings per share (EPS) came in at 129.9 cents in FY26. Consensus forecasts point to EPS increasing to 142 cents in FY27 and then 151 cents in FY28.

That would represent earnings growth of around 9% in FY27, followed by another increase of approximately 6% in FY28.

For me, that earnings trajectory provides a reasonable foundation for the share price to recover.

What would Goodman be worth at $30?

At today's price of around $26.35, Goodman is trading on a PE ratio of approximately 18.6 times forecast FY27 earnings.

Using the FY28 consensus forecast, that multiple falls to around 17.5 times.

If Goodman shares reached $30, the stock would trade on approximately 21 times FY27 forecast earnings or just under 20 times FY28 earnings.

I do not think either valuation looks unreasonable if the company's data centre expansion is a success.

Of course, there are still uncertainties.

Goodman's valuation can be sensitive to investor expectations around interest rates and property markets, while earnings forecasts could change if the AI boom doesn't result in increased demand for data centres. A weaker earnings outlook could make $30 harder to justify.

But at the current share price, I think investors are being offered a more attractive starting point than they were near the 52-week high.

Would I buy Goodman shares?

I would. If earnings per share reaches 142 cents in FY27 and 151 cents in FY28, Goodman should continue growing into its valuation over the next couple of years.

That gives investors two potential drivers of returns: higher earnings and some recovery in the multiple investors are prepared to pay for those earnings.

I think that combination makes the shares attractive at current levels.

Foolish takeaway

For me, $30 looks like a realistic target for Goodman shares in 2027.

It would require a gain of around 14% from today's price, but the forecast earnings growth suggests the business could do some of the heavy lifting rather than relying entirely on a higher valuation.

Overall, I would be comfortable buying Goodman shares around $26.35 and giving the company time to work its way back above $30.

The post Will Goodman shares reach $30 in 2027? appeared first on The Motley Fool Australia.

That could make a huge difference to your lifestyle, particularly if you are approaching retirement or hoping to work fewer hours.

And while building a portfolio capable of producing this much income will take time, ASX shares could help you get there.

Here's how it could be done.

Start by building wealth

The first thing to understand is that a $50,000 passive income requires a substantial investment portfolio.

If the goal is to generate this income from dividends with an average dividend yield of 5%, you would need approximately $1 million invested.

That might sound intimidating, but nobody needs to start with $1 million.

In fact, the early years should probably be focused on growing the portfolio rather than generating income.

This could mean investing in quality ASX growth shares such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), and Xero Ltd (ASX: XRO).

Blue chip shares and exchange traded funds (ETFs) could also help build wealth over time.

The aim would be to own investments capable of increasing in value over many years, while reinvesting any dividends received.

Let compounding do its work

Regular investing can make a significant difference to the journey.

For example, investing $500 a month and achieving an average annual return of 10% could grow a portfolio to approximately $1 million in 30 years.

Increase that to $1,000 a month and the same target could be reached in around 23 years.

These returns are not guaranteed, and actual returns will vary from year to year, but they demonstrate how powerful regular investing and compounding can be.

Over time, an increasing portion of the portfolio's growth can come from investment returns rather than new contributions.

Turn the portfolio into an income generator

Once the portfolio approaches $1 million, investors could start shifting their focus towards ASX dividend shares.

That could include infrastructure companies such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), which own assets capable of generating cash flow over long periods.

Property investments such as HomeCo Daily Needs REIT (ASX: HDN) and Charter Hall Long WALE REIT (ASX: CLW) could provide another source of income.

Established businesses such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) could also have a place in the portfolio.

And for investors who would rather not select every dividend share themselves, an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY) could be worth considering.

Final word

Overall, I think this demonstrates that the share market can be a great place to generate a passive income.

Investors just need a combination of patience, capital, and good investments. The rest will happen in time.

The post How to build a $50,000 passive income from ASX shares appeared first on The Motley Fool Australia.

According to the ABC, the data centre is set to be the largest in Australia and will draw as much power as about 1.5 million average Australian households.

Anthropic aims to start using the centre in 2027 to power its artificial intelligence program, Claude, to answer user questions, rather than to train AI models.

What does it mean for ASX AI shares?

Anthropic's agreement to anchor a proposed $32 billion data-centre development in Queensland is more than another major artificial intelligence announcement. 

It is a sign that the next phase of the AI boom is increasingly becoming a story about data centres, electricity, connectivity, and physical infrastructure.

Importantly, the companies positioned to benefit may not necessarily be the businesses developing AI models themselves. 

Instead, they could include data centre operators, property developers, telecommunications and connectivity providers, electricity generators, and infrastructure companies.

Here are three ASX AI shares to keep an eye on. 

Nextdc Ltd (ASX: NXT)

This ASX stock is one of the most obvious Australian-listed beneficiaries of increasing demand for data-centre capacity.

The company has been aggressively expanding its data-centre footprint as demand from cloud computing and AI increases.

The Queensland announcement doesn't directly add revenue to NextDC, as the Western Downs project is not a NextDC development.

However, it provides another piece of evidence that AI companies are prepared to make substantial, long-term commitments to computing infrastructure.

Goodman Group (ASX: GMG)

Goodman offers another way to gain exposure to the theme.

It is traditionally known for logistics and industrial property. 

However, Goodman Group has increasingly positioned itself around data-centre development.

A significant proportion of the group's development pipeline is now associated with data centres.

This is an important development because the AI boom is creating demand for a very different type of real estate.

A hyperscale AI data centre needs enormous amounts of electricity, fibre connectivity, cooling capacity, and grid access.

That scarcity can potentially make suitable sites extremely valuable.

Dexus (ASX: DXS)

Dexus is particularly interesting because it has an actual connection to the proposed Queensland development.

Dexus' Australian Data Centres business will be working with partners on the Western Downs project.

That doesn't mean Dexus will receive anything approaching $32 billion in revenue.

But it does give the company direct exposure to the development of Australia's rapidly expanding data-centre infrastructure.

For investors, the distinction between project value and corporate earnings remains critical.

The post What does Anthropic's $32b Queensland data centre mean for ASX AI shares? appeared first on The Motley Fool Australia.