Despite this recovery, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has remained flat. 

The consumer discretionary index remains down more than 12% year to date. 

There are several factors that could be keeping investors away from the sector: 

• Interest rates – higher rates reduce spending
• Inflation – high inflation reduces discretionary income
• Consumer confidence – low confidence leads to cutbacks

Despite these headwinds, there remains long-term value in the sector, as these economic conditions ebb and flow over the long term. 

For investors willing to deal with short-term volatility but looking for long-term opportunities, here are three consumer discretionary shares to consider. 

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat is an Australian gaming technology company licensed in around 340 gaming jurisdictions in more than 100 countries. Aristocrat offers a range of products and solutions in the gaming space, including poker machines and casino management systems.

Its share price has fallen 18% year to date and 25% over the last year. 

It currently sits close to 52-week lows. 

However, it could be a buy-low opportunity for the long term. 

Recently, Macquarie retained its outperform rating and $63 price target on this consumer discretionary stock. 

From today's price of close to $46.92, that indicates an upside of 34%. 

The team at Morgans are also optimistic that the share price will recover. 

The broker believes its shares are attractively priced right now, given its strong growth track record.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is a leading Australian-based retailer selling electrical, computer, furniture, and entertainment goods.

Its share price is down almost 34% year to date after a tough February and March. 

Negative sentiment appears to be continuing this month, although it now appears to have been oversold. 

It simply might now be too cheap to ignore.

Bell Potter seems to agree. The broker currently has a buy rating with a price target of $6.70. 

From today's share price of $4.64, that indicates an upside potential of 44%. 

JB Hi-Fi Ltd (ASX: JBH)

Finally, JB Hi-Fi is also sitting well below yearly highs. 

The retailer of home entertainment and home appliance products has seen its share price fall more than 23% year to date. 

Analysts at Bell Potter recently retained their buy rating on this retail giant's shares with a reduced price target of $90.

That target sits right around the average of 15 analyst forecasts via TradingView. 

If this consumer discretionary stock reaches this target in the next 12 months, it would represent a 23% rise. 

The post Consumer discretionary shares to target for a long-term rebound appeared first on The Motley Fool Australia.

While lower share prices can be unnerving, I think that's the best time to strike because of the better dividend yields (and valuations) on offer.

With that in mind, I think the two ASX blue-chip shares below really fit the bill.

Charter Hall Long WALE REIT (ASX: CLW)

Higher interest rates are a short-term negative for property due to higher interest costs and a headwind to property prices. I think that's largely why the Charter Hall Long WALE REIT unit price has dropped by 20% in the last six months.

The decline has meant the distribution/dividend yield has been boosted. It's expecting to increase its payout slightly to 25.5 cents per security in FY26, which now translates into a distribution yield of 7.5%, at the time of writing.

It's not just the yield that's appealing. It has a weighted average lease expiry (WALE) of around nine years. That means many years of rental income have been locked in.

It is one of the largest REITs on the ASX with a diversified portfolio across a number of areas, including hotels, service stations, telecommunications exchanges, data centres, distribution centres, and plenty more.

It has a number of ASX blue-chip shares as reliable tenants, giving the REIT an even greater claim as a resilient blue chip itself. Some of its great tenants include Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), Westpac Banking Corp (ASX: WBC), and Wesfarmers Ltd (ASX: WES).

JB Hi-Fi Ltd (ASX: JBH)

Another leading ASX blue-chip share is JB Hi-Fi, one of Australia's leading retailers of electrical products, gadgets, and home appliances through its stores across Australia and New Zealand. It also owns The Good Guys business.

The fact that it has increased its payout in most years over the past 15 years demonstrates its long-term growth and its potential as an effective income pick.

Following the 35% decline in JB Hi-Fi's share price over the last six months, its projected dividend yield is now high.

According to CMC Invest's projection, the business is expected to pay an annual dividend per share of $3.55 in FY26. That translates into a grossed-up dividend yield of 6.75%, including franking credits, at the time of writing.

I think the company's earnings can continue to grow as it expands its store network, sells new products, achieves additional scale benefits, grows the newly acquired E&S, and implements additional cost-saving strategies.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

After a tough month in March, Australia's benchmark index has shown signs of a rebound during April. 

Last week, the index rose 4.4%, its best weekly gain since October 2022.

With the tide finally turning for ASX 200 shares, here are 5 that remain significantly below fair value according to broker estimates. 

CAR Group Ltd (ASX: CAR)

The CAR Group share price fell 14% in March. However, since late March, it has slowly turned a corner. 

Investors will be hoping it has reached the bottom of this latest cycle, as investors exited their positions in CAR Group shares largely due to AI replacement fears.

It is opening this week at $23.36 per share, which is still 24% lower than the start of 2026. 

This is significantly below fair price estimates from brokers. 

Recently, Morgan Stanley reiterated its buy recommendation and placed a $32 price target on the ASX 200 company. 

This indicates a healthy 37% upside from current levels. 

CSL Ltd (ASX: CSL)

CSL has also generated plenty of headlines recently as the ASX 200 stock appears to have been oversold. 

The biotechnology company has seen its share price fall 19% year to date and more than 40% over the last 12 months. 

It has reached a point where it is simply too cheap to ignore for many investors, and Bell Potter recently placed a $155 target on the ASX 200 stock. 

Despite its hold recommendation, this still indicates an upside of 11.5% from current levels. 

Breville Group Ltd (ASX: BRG)

Breville Group shares are currently hovering around $28.25, significantly below yearly highs. 

The consumer discretionary stock fell 16% during March. 

Macquarie recently placed an outperform rating and price target of $37.10 on the ASX 200 stock. 

This indicates an upside of 31%. 

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi shares are down more than 20% year to date, which includes an 11% fall during March. 

Late last month, Bell Potter retained their buy rating on this retail giant's shares with a price target of $90.

From last week's closing price of $75.21, this indicates an upside of nearly 20% for this ASX 200 stock. 

WiseTech Global Ltd (ASX: WTC)

Finally, WiseTech shares have been heavily sold off this year amidst AI concerns. 

The ASX 200 company has seen its share price tumble 45% since the start of 2026. 

However, it also appears too cheap to ignore. 

Morgan Stanley recently retained its buy rating for Wisetech with a $70 price target. 

This suggests an upside potential of 86%. 

The post 5 ASX 200 shares that could be a bargain right now appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts have retained their outperform rating on this appliance manufacturer's shares with a trimmed price target of $37.10. The broker has been looking at industry data and believes it points to an outperformance compared to peers. It notes that this is being driven by growth from its coffee business, as well as new products and new markets. Macquarie believes that this supports its forecast for annual growth of 10%+ through to FY 2028. The Breville share price is trading at $25.85 on Monday morning.

Hub24 Ltd (ASX: HUB)

Another note out of Macquarie reveals that its analysts have upgraded this investment platform provider's shares to an outperform rating with a reduced price target of $92.25. Macquarie has become bullish on Hub24 following a recent material derating on concerns about artificial intelligence (AI) disruption and broader Middle East conflict-related selling. It notes that this has left its shares trading at a sizeable discount to five-year average multiples. The broker believes that this has created a buying opportunity for investors and expects Hub24 to continue to take market share over the next one to two years. The broker thinks AI disruption concerns are overblown and is expecting Hub24 to deliver annual earnings growth of more than 20% over the medium term. The Hub24 share price is fetching $78.35 at the time of writing.

JB Hi-Fi Ltd (ASX: JBH)

Analysts at Bell Potter have retained their buy rating on this retail giant's shares with a reduced price target of $90.00. According to the note, the broker sees some defensiveness in JB Hi-Fi with the semi-discretionary characteristics as stretched consumer wallets take a larger share in technology products. As a result, it retains its view of JB Hi-Fi as one of the key preferences within its sector coverage. Bell Potter also highlights that the company's shares are trading at an 18-month low on a ~17x estimated FY 2026 earnings. As a result, it sees valuation support considering the relative defensiveness and margin levers in the business model. The JB Hi-Fi share price is trading at $71.86 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

An ASX retail share may not seem like the most compelling business for dividend income or long-term returns.

But, the owner of JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S actually has a number of positives, including an incredible dividend record.

Let's take a look at what makes it so appealing.

Excellent dividend record for retirees

JB Hi-Fi has an excellent dividend record for an ASX retail share. Looking back, it has increased its dividend almost every year since 2013, aside from a slight reduction in FY23, which is understandable considering the headwind of high inflation and rising interest rates.

In the recent FY26 half-year result, the business increased its interim dividend per share by 23.5% to $2.10 per share. HY26's growth was partly because of earnings growth and partly due to an increase in the dividend payout ratio, going from 65% of net profit to 75% (thanks to its increased dividend payout guidance range of between 70% to 80%).

JB Hi-Fi said that it continues to maintain a strong balance sheet and will continue to regularly review its capital structure with a focus on "maximising returns to shareholders and maintaining balance sheet strength and flexibility".

The current forecast on Commsec suggests the business could pay an annual dividend per share of $3.42 in FY26. That translates into a grossed-up dividend yield of 6.8% (including franking credits) at the time of writing, which I think would be a great starting yield for retirees.

Good growth potential

I'd describe JB Hi-Fi as the best electronics retailer in Australia. It has a number of competitive advantages including its scale, multiple brands, low cost operating model, multichannel approach and its people.

I think it's those factors that help the business stay ahead of others, deliver solid margins and grow its market share.

The business continues to grow its sales, with solid progress in January 2026. JB Hi-Fi Australia sales increased 4% and The Good Guys sales grew 2.7% year over year.

I also think JB Hi-Fi has more defensive earnings than some investors may give it credit for, with demand for smartphones, laptops and appliances being somewhat consistent.

This could be a good time to invest for retirees because the JB Hi-Fi share price has declined by around 40% over the past six months and more than 25% in the year to date (at the time of writing).

It's now trading at under 16x FY26's estimated earnings, which seems good value to me.

The post Why JB Hi-Fi shares are a retiree's dream appeared first on The Motley Fool Australia.

That's because Bell Potter believes that one well-known company's shares could be seriously undervalued at current levels.

Which ASX 200 stock?

The stock that Bell Potter is recommending to clients is JB Hi-Fi Ltd (ASX: JBH).

It is of course one of Australia's leading retailers, responsible for the JB Hi-Fi, E&S, and The Good Guys brands.

Bell Potter has been looking back on the ASX 200 stock's half-year results. It was pleased with the company's performance during the half but acknowledges that the second half has started a touch weaker than expected. It said:

JB Hi-Fi (JBH)'s 1H26 result overall from a revenue, gross/net profit and dividends perspective saw marginal beats to Consensus/BPe. Good Guys (GG) and JBH NZ were the two key stand-out performers (vs BPe), while JBH Aus's ability to maintain +5% comparable sales growth despite cycling a strong +8.8% in 2Q26 was resilient. The Jan-26 trading update (start of 2H26) of +2.4%, +16.7% and +2.7% in comparable sales growth for JBH Aus, NZ and GG respectively saw NZ tracking ahead of BPe, however JB Aus, GG and e&s slightly behind BPe.

In light of this, the broker has trimmed its earnings estimates slightly. It adds:

We make changes to our revenue assumptions factoring in the Jan trading update and the upcoming challenging comps in 4Q26 as JBH Aus cycles +8.2% comparable sales during the seasonal quarter driven by the Nintendo Switch 2 sales (post launch in Jun-25). We also apply some conservatism through our medium-term forecasts to see our revised revenue estimates growing by 4-5% in FY27/28 and some market share related investments in margins to see largely flat GM/EBIT margins (GM ~22% for JBH Aus, ~23% for GG, ~17% for JBH NZ and ~29% for e&s). […] The net result sees our NPAT forecasts -1%/-4%/-8% for FY26/27/28e.

Could be worth $90 per share

According to the note, Bell Potter has retained its buy rating on JB Hi-Fi's shares with a lowered price target of $90.00.

Based on its current share price of $71.70, this implies potential upside of over 25% for investors over the next 12 months.

In addition, it is expecting a 4.7% dividend yield in FY 2026, boosting the total potential return to approximately 30%.

Commenting on its buy recommendation, the broker said:

Our PT decreases by 24% to $90.00 (prev. $119.00). Along with our earnings revisions, we also reduce our target P/E multiple by 30% to ~19x (prev. 27x) on a blended FY26/27e basis (skewed to FY27e). Our target multiple is driven by a ~12% premium applied to the current trading multiple. We see some defensiveness in the name with the semi-discretionary characteristics as stretched consumer wallets take a larger share in technology products, to retain our view of JBH as one of the key preferences within our sector coverage.

The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model.

The post Guess which ASX 200 stock could be worth $90 a share appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set for a poor start to the week following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 156 points or 1.85% lower. In the United States, the Dow Jones was down 0.95%, the S&P 500 dropped 1.5%, and the Nasdaq tumbled 2%.

Oil prices rise

It could be a good start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher again on Friday night. According to Bloomberg, the WTI crude oil price was up 2.8% to US$98.23 a barrel and the Brent crude oil price was up 3.25% to US$112.19 a barrel. Supply concerns continue to drive prices higher.

Buy JB Hi-Fi shares

Analysts at Bell Potter think investors should buy JB Hi-Fi Ltd (ASX: JBH) shares after they hit a 52-week low. According to the note, the broker has retained its buy rating on the retailer's shares with a $90.00 price target. This implies potential upside of 25% for investors over the next 12 months. It said: "The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model."

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price fell again on Friday night. According to CNBC, the gold futures price was down 0.7% to US$4,609.6 an ounce. This was driven by concerns that interest rates could be heading higher. The precious metal lost almost 10% in value during the week.

Buy Premier Investments shares

Bell Potter is also tipping Premier Investments Ltd (ASX: PMV) shares as a buy this week. This morning, the broker has retained its buy rating on the Peter Alexander and Smiggle owner's shares with a trimmed price target of $18.00 (from $20.00). It said: "We view PMV as trading at a discount to our coverage, considering the Premier Retail division with two global roll-out worthy brands together with equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A. Our SOTP sees an attractive $1.8b EV for the key PA brand vs PMV's $1.9b market capitalization."

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

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi delivered some solid 1H26 results, including:

• Sales revenue up 7.3% to $6.1 billion
• Net profit after tax up 7.1% to $305.8 million
• Earnings per share up 7.1%

While it experienced a slowdown in sales momentum in January, JB Hi Fi continues to thrive overall. And for me, its relative success in a difficult consumer spending climate comes down to the power of its brand. Its core value proposition has never wavered.

Customers know what to expect from JB Hi-Fi, and it continually delivers, with discounted prices, easy price matching and an interactive in-store experience. Its casual staff culture appeals to younger generations who typically spend more on technology than their older counterparts. Gen Z and Millennials drop a combined $9.2 billion a year on smart home tech alone, according to 2025 Pure Profile research conducted for Samsung.

And while this demographic is also much more likely to buy online, I believe JB Hi-Fi's in-store experience and the broader societal trend towards instant gratification position it well in this landscape.

JB Hi-Fi has indicated that it expects some further softening in consumer spending in the next quarter. But I believe the retailer is well-positioned to weather any potential challenges. Its balance sheet should provide enough cover, with low debt and cash reserves of $489.5 million as of 1H26.

From a share price perspective, it remains fair value, with a small upside for investors, in my opinion. It has dropped around 13% in the last year, perhaps driven by broader market weakness and investor concern about a consumer spending crunch.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman also delivered robust results for the half, including:

• Sales revenue up 6.9% to $5.16 billion
• Net profit after tax up 15.2% to $321.9 million
• Earnings per share up 20.8%

Regardless, its share price has fallen around 20% over the last month, most likely due to concerns about a consumer spending squeeze.

Harvey Norman is a decent business as it stands today. With a solid supplier network and the backing of its strong property portfolio, it's in a good position to stare down the immediate challenges of any contraction in consumer spending.

However, the value proposition for this retailer changes for me based on the time horizon.

According to Roy Morgan Research, almost 60% of Harvey Norman's customers were aged over 50 in 2019, highlighting its popularity amongst Baby Boomers and older Gen Xers. Given that its marketing appears to target the same audience in 2026, I think it's reasonable to assume that this hasn't materially changed. 

In a spending crunch, we tend to see older generations spending more than Millennials, who are in the thick of one of life's most expensive stages, from school fees to mortgages.

So, in the short term, an older customer base combined with a strong balance sheet will likely be an advantage for Harvey Norman.

Over the longer term, however, I don't love its brand positioning. There is a risk that it may compete solely on price to attract Millennial and Gen Z consumers. Harvey Norman will need to deliver a consistent, high-quality in-store experience to compete with lean online players and with competitors like JB Hi-Fi, which has already successfully attracted younger shoppers.

Would I buy it right now? Probably. I think there is some upside at current prices, and its recent results and balance sheet look good. Long-term, I think it may face challenges if it continues with its current brand positioning.

The bottom line

Both are reasonably good retail buys right now. In the short term, I think Harvey Norman has a slight edge. Its results are strong, its higher dividend yield is appealing, and I think there may be a little more upside at current prices. However, looking longer term, I think JB Hi-Fi will prove the stronger business, gaining real momentum from the investment it has made in its brand.

The post JB Hi-Fi vs. Harvey Norman: Which is the better retail buy? appeared first on The Motley Fool Australia.

But, given how share prices have drifted lower this year, I'm seeing a great opportunity for investors to grab ASX shares while dividend yields are higher.

Don't forget, we saw a few years ago how some businesses were able to accelerate their revenue growth amid the inflationary period – they were not just helpless bystanders in the situation.

Why do interest rates matter for ASX shares?

Interest rates play an important role in how much investors are willing to pay for an asset. It acts like gravity – when interest rates go lower, asset prices can jump higher. But, the opposite is typically true when interest rates go up – it's a significant headwind for asset valuations.

But, share prices can still go up in a rising rate environment if the operating profit/net profit of the business or asset increases. The multiple of earnings that investors are willing to pay is just one part of the equation.

Warren Buffett, the legendary American investor from Omaha, once explained why interest rates are so important for valuations. Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Investor expectations of rate rises this year has led to lower share prices for some businesses, along with the oil price volatility.

How does it affect the passive income?

When the share price of an ASX dividend share falls, it can lead to a double whammy of a better valuation and a better dividend yield.

A dividend yield is determined by the size of the payout and the valuation of the business. When share prices go lower, the dividend yield increases.

For example, if a business had a dividend yield of 5% and the share price falls 10%, the dividend yield becomes 5.5%. If it fell 20%, the dividend yield would be 6%.

I like investing at times like these, as it really boosts the potential dividend yield.

Is it a once-in-a-decade opportunity to buy passive income shares? The 2020s have already seen COVID-19, the inflation and tariff related sell-offs, so the declines have been more than once-in-a-decade.

But, this is certainly a rare opportunity to buy ASX dividend shares with a good dividend yield.

What I'd invest in

There are a wide range of ASX dividend shares that are trading at attractive prices with a good dividend yield.

I'm thinking names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Australian Foundation Investment Co Ltd (ASX: AFI), WCM Global Growth Ltd (ASX: WQG), JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), Nick Scali Ltd (ASX: NCK) and Lovisa Holdings Ltd (ASX: LOV).

I'm optimistic that the above names can provide investors with a diversified and growing source of passive income over time.

The post A once-in-a-decade chance to earn a supersized passive income from ASX shares? appeared first on The Motley Fool Australia.

Inflation and interest rates seem to be on the rise in 2026, meaning that the market has sent the share prices of some businesses down quite noticeably.

Being able to buy an investment at a lower price means getting a higher dividend yield and increasing the potential long-term capital gains.

With the lower share prices in mind, I'm calling out the following names as attractive buys.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns a wide range of properties including government properties (such as Geoscience Australia), pubs, grocery and distribution, data centres and telecommunications, service stations, food manufacturing, waste and recycling, and plenty more.

The ASX dividend share has seen its share price decline by around 20% in the past year, despite ongoing rental income growth. Around half of the property portfolio has CPI-linked rental increases with the rest having fixed annual increases.

It reported having net tangible assets (NTA) of $4.68 at 31 December 2025, suggesting there's a significant valuation discount for investors, which is partly why the ASX dividend share's yield is so high.

The business is expecting to pay an annual distribution per unit of 25.5 cents in FY26, which translates into a distribution yield of approximately 7%, at the time of writing.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral provider in Australia. It also has 41 cremation facilities and nine cemeteries.

The business is a beneficiary of Australia's ageing and growing population, giving the business ultra-long-term morbid tailwinds. Unfortunately, the number of deaths in Australia is expected to increase by an average of 2.9% per year from 2026 to 2035 and then increase 2.4% per year from 2026 to 2045.

It's steadily making acquisitions over the years to boost its scale and geographic presence, while also benefiting from organic growth of the average revenue per funeral. I'm expecting these tailwinds to boost its bottom line in the coming years, allowing the ASX dividend share to hike its dividend.

Its last two declared payments come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing. The Propel share price has dropped 14% in the past month at the time of writing.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is Australia's leading electronics retailer and it also has a growing position in appliance and other house-related items. It has three other businesses – JB Hi-Fi New Zealand, The Good Guys and E&S.

The ASX dividend share has increased its payout almost every year over the last 15 years, which is an impressive record for an ASX retail share. I'd describe the business as one of the best retailers on the ASX and I expect this performance to continue.

However, the JB Hi-Fi share price has fallen around 30% in the past six months, despite a good FY26 half-year result and ongoing sales growth in the second half of FY26. The HY26 dividend was hiked by 23.5%.

The last two declared dividends from the business come to a grossed-up dividend yield of 7.4%, including franking credits, at the time of writing.

The post 3 top ASX dividend share buys for passive income in March appeared first on The Motley Fool Australia.

The case for JB Hi-Fi

JB Hi-Fi is a high-growth, lean retail business that has shown real momentum since the early 2000s, becoming one of Australia's largest and most successful specialty retailers.

Its HY26 results were impressive, including:

• Revenue up 7.3% on the prior corresponding period (pcp) to $6.1 billion
• Net profit after tax up 7.1% to $305.8 million
• 32% growth in its New Zealand business
• Dividends up 23.5% to $2.10

Its share price has experienced some volatility lately, perhaps driven by slower-than-expected growth in The Good Guys brand, softer January sales, and consumer spending headwinds.

Its January sales drop-off has been attributed to a combination of temporary stock shortages and the impact of Black Friday, which pulled sales forward to November. And this shift in peak season aligns with CommBank IQ retail data. The data shows that sales peaked over the 2-week Black Friday period, up 4.6% year on year and 19.5% on the fortnightly average for Australian retailers.

Many analysts are seeing upside at current prices, and I tend to agree.

Over the last six months, the JB Hi-Fi share price has dropped circa 28%, but if you zoom out, it is up some 92% over the last five years. I think this is a better indicator of the retailer's performance. While consumer spending decline is a risk for this business, its strong branding as a discount retailer will keep it top of mind for budget-conscious consumers

The case for Wesfarmers

Wesfarmers is one of Australia's largest and most diversified retailers. It may not have JB Hi-Fi's growth momentum, but it is a solid operator, demonstrating consistent earnings performance and disciplined capital management across multiple economic cycles.

This is reflected in its HY26 results, which showcased stability in a challenging retail climate, including:

• Revenue up 3.1% on pcp to $24.2 billion 
• EBIT up 8.4% to $2.49 billion 
• Net profit after tax up 9.3% to $1.6 billion
• Dividends (fully franked) up 7.4% to $1.02

The Wesfarmers share price has also experienced some volatility, likely off the back of a decline in consumer spending and pressure on its lower-performing Target and Officeworks brands. Retail leaders Kmart and Bunnings both pick up their share of the slack, with both showcasing strong growth in the first half of FY26.

It's notable that Wesfarmers has delivered consistent growth in revenue, profit, and dividends throughout the 2020s, a decade that is proving a challenge for retailers.

Wesfarmers is the parent company to over 35 brands that extend beyond the retail sector, too. This wide footprint gives it exposure to a range of markets and a defensive business mix. Its brands outside the retail sector include online healthcare provider, Instascripts, data powerhouse, FlyBuys, natural gas provider, Kleenheat, and lithium miner, Covalent Lithium (a 50/50 joint venture with Mt Holland Lithium Project).

As with JB Hi-Fi, it's worth looking at the bigger picture for Wesfarmers. Over the last six months, its share price has fallen some 12% but has grown 65% over a 5-year period. For a business of this quality and scale, I think current prices can be considered a short-term dip.

The verdict

Both are good options, so it really depends on what you want to achieve.

JB Hi Fi has significant upside right now. So, in my view, it's the one to buy if you're looking for a growth share with exciting momentum, and your risk appetite will allow for some temporary volatility.

Wesfarmers remains a compelling, if not a hugely exciting, buy. Its scale, defensive business mix, and track record of disciplined execution make it a reliable performer. Its fully-franked dividend is also appealing. So, for me, it's the one to buy if you want a steady investment to hold long term.

The post JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your portfolio? appeared first on The Motley Fool Australia.

ASX All Ords shares have risen 1.7% over the week as more companies revealed strong earnings results and dividends.

Next week, a large group of ASX shares go ex-dividend. We provide a sample of these stocks below.

To pick up a dividend payment, you must own the share before the ex-dividend date.

ASX shares about to go ex-dividend

Here are 16 ASX shares going ex-dividend next week.

Which companies are reporting next week?

According to the calendar, we will hear from Adairs Ltd (ASX: ADH), Ampol Ltd (ASX: ALD), and Nib Holdings Ltd (ASX: NHF) on Monday.

On Tuesday, ARB Corporation Ltd (ASX: ARB), Woodside Energy Group Ltd (ASX: WDS), and Monadelphous Group Ltd (ASX: MND) are up.

On Wednesday, we'll get reports from Bapcor Ltd (ASX: BAP), Domino's Pizza Enterprises Ltd (ASX: DMP), and Fortescue Ltd (ASX: FMG).

Light & Wonder Inc (ASX: LNW), Wisetech Global Ltd (ASX: WTC), and Woolworths Group Ltd (ASX: WOW) will also report on Wednesday.

On Thursday, Karoon Energy Ltd (ASX: KAR), Monash IVF Group Ltd (ASX: MVF), and Qantas Airways Ltd (ASX: QAN) will release their earnings.

Ramsay Health Care Ltd (ASX: RHC), Super Retail Group Ltd (ASX: SUL), and Worley Ltd (ASX: WOR) will also be in the spotlight.

On Friday, we'll see reports from Coles Group Ltd (ASX: COL), Star Entertainment Group Ltd (ASX: SGR), and TPG Telecom Ltd (ASX: TPG).

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

The business reported a 7.3% increase in sales to $6.1 billion, an 8.1% rise in operating profit (EBIT) to $454 million, a 7.1% increase in earnings per share (EPS) to $2.80, and a 23.5% jump in the annual dividend per share to $2.10.

UBS noted that the result was stronger than it was expecting. Let's take a look at what was so good and why the broker is still bullish on the ASX retail share.

A strong result

The broker said that there were market fears that the company would find it tough to deliver growth after a strong second quarter of FY25. But those fears "did not materialise".

UBS said that The Good Guys' EBIT was stronger than expected, with promotional periods being "well executed". The broker said that The Good Guys' EBIT margin was stronger thanks to a mixture of higher gross profit margin and lower cost of doing business (to sales) ratio.

The JB Hi-Fi Australia EBIT was also stronger than expected, partly thanks to the "flexibility" of its cost of doing business, which allows it to manage any slowing in sales.

After seeing those numbers, UBS decided to increase its estimate for JB Hi-Fi's forecast EPS by 5.6% and 5.3%. This was due to slightly higher sales and a much higher EBIT margin projected for The Good Guys, while JB Hi-Fi Australia is expected to see slightly higher sales and EBIT margin.

However, those EPS estimates also include lower projections for the JB Hi-Fi New Zealand and E&S divisions, though they are smaller contributors to the overall pie.

Is the JB Hi-Fi share price a buy?

UBS thinks it is, with a price target of $94, which implies a possible rise of around 7% over the next year.

The broker notes that the JB Hi-Fi price-to-earnings (P/E) ratio has decreased over the last several months, though it's still higher than it was last decade. UBS thinks this is justified because it's a large, growing business with an expandable total addressable market (TAM), it's gaining market share, it's good at managing costs, and it's prudent at managing capital.

UBS suggested it can be increasingly compared to businesses with higher P/E multiples, such as Wesfarmers Ltd (ASX: WES) and its retail divisions of Bunnings and Kmart. The broker concluded:            

Given share price performance, 1H26 result above UBSe, and confidence on JBH being able to enjoy a higher earnings multiple vs history, the risk reward now appears attractive. Upgrade to Buy from Neutral.

The post Why the JB Hi-Fi share price is a buy and could keep rising – UBS appeared first on The Motley Fool Australia.

Does it rate them as buys, holds, or sells? Let's find out:

JB Hi-Fi Ltd (ASX: JBH)

Morgans notes that retail giant JB Hi-Fi delivered a solid half-year result, which was largely in line with expectations. It was also pleased to see that margins were well-managed.

However, with January starting slowly and management sounding cautious, it has put a hold rating on JB Hi-Fi's shares with a reduced price target of $87.00. It said:

JBH delivered a solid result, which was broadly in line with expectations. Sales were robust (+7.3%) driven by continued demand for consumer electronics and home appliances and executed well during key promotional sales events. Margins were well managed, resulting in EBIT growth of +8.1% yoy.

Trading in January has slowed from the 2Q, with management noting a cautious outlook given the retail market uncertainty and continued competitive environment. We have upgraded to a HOLD (from TRIM), and look for any weakness as a buying opportunity for this high quality retailer. Our target price falls from $95 to $87.

New Hope Corporation Ltd (ASX: NHC)

This coal miner's half-year results weren't too bad considering recent coal price weakness. Another positive is that Morgans believes that the company is positioned to achieve the top end of its New Acland 3 guidance range.

However, it is not enough for anything but a hold rating (down from accumulate) with an improved price target of $5.00. The broker explains:

Delivered underlying, unaudited EBITDA of $106.9 million in 2Q26, bringing 1H26 EBITDA to $214.8 million despite weakness in coal prices. NHC delivered a 2Q that positions it to ramp up its Bengalla operation to its 13.4Mtpa ROM coal production run rate in 2H26 and achieve upper end of New Acland 3 guidance range. We rate NHC a HOLD (previously ACCUMULATE) with a target of A$5.00ps (previously $4.55ps).

Qualitas Ltd (ASX: QAL)

Finally, this alternative investment company's performance was positive thanks to residential and private-credit tailwinds.

And with its shares pulling back recently, the broker sees value on offer here. As a result, Morgans has retained its accumulate rating and $3.80 price target on its shares. It said:

QAL's 1H26 result shows a platform accelerating on deployment, benefiting from both residential and private-credit tailwinds, and converting scale into higher recurring revenue, stronger margins and growing performance fees. This has seen Fee Earning FUM (FEF) increase 38% (vs pcp), while record deployment (+57% vs pcp) was largely driven by repeat borrowers (76%).

The continued demand for QAL's funds resulted in higher quality result, with recurring base management fees +28% (yoy) and loan transaction fees up +69% (yoy). Running contrary to the strong operational performance, QAL's share price has declined 14% over the past three months as sector multiples moderated. In light of this share price moderation we retain an Accumulate recommendation with a $3.80/sh target price.

The post Buy, hold, sell: JB Hi-Fi, New Hope, and Qualitas shares appeared first on The Motley Fool Australia.

While the latest share price movement isn't positive news for investors, the losses have barely dented the gains the consumer electronics and home entertainment business has made this week.

JB Hi-Fi shares have jumped 15.18% since the close on Friday afternoon.

It's a huge turnaround for the business, which saw its share price plummet through the final months of 2025. After spiking at an all-time high of $121 per share in August, the stock finished 20% lower at the end of the year.

What happened to JB Hi-Fi shares this week?

The electronics retailer posted its half-year results for FY26 ahead of the market open on Monday morning. And clearly, investors are thrilled with the update.

JB Hi-Fi revealed a 7.3% increase in total sales to $6.1 billion and a 7.1% lift in net profit after tax to $305.8 million. Its earnings before interest and tax also grew 8.1% over the period. 

The company also announced a 23.5% increase in its fully-franked interim dividend to 210 cents per share. The shares will trade ex-dividend on 26 February 2026, with payment scheduled for 13 March 2026.

Management provided a trading update for January, too. It said that JB Hi-Fi Australia recorded total sales growth of 4% for the month, while JB Hi-Fi New Zealand recorded 26.4% growth. The Good Guys reported sales growth of 2.7%. On the other hand, e&s sales declined 4.6%.

Management added that while growth has been relatively consistent, it remains cautious given the uncertain retail outlook and strong competition. 

The question now is, what can we expect next?

Can JB Hi-Fi shares keep climbing in 2026?

Analysts have been relatively bullish on JB Hi-Fi shares for some time. And it looks like this latest results announcement and supersized dividend payout are what was needed to turn investor confidence around.

But TradingView data shows that analysts are still divided about the outlook for JB Hi-Fi shares. Out of 16 analysts, seven have a hold rating, and seven have a buy or strong buy rating on the stock. Another two have a strong sell position.

The average target price is $94.15 a piece, which implies a decent 7.57% potential upside at the time of writing. However, some analysts think the shares could rocket even higher. The maximum target price is $121.40 per share, which implies a potential 38.63% upside over the next 12 months.

Macquarie Group is one of the more optimistic brokers on the block. The team recently said they think market concerns are overdone and they see tailwinds ahead, including ongoing tech upgrade cycles.

Citi also rates the ASX retail stock a buy and said it was "positively surprised" by gross margins at JB Hi-Fi and The Good Guys. Based on history — just one major downgrade in 15 years — Citi sees limited risk of sharp earnings cuts.

The post JB Hi-Fi shares jump 15% this week. What's next? appeared first on The Motley Fool Australia.

This sector relies heavily on economic conditions and consumer sentiment. These pressures have kept the sector lower in the past year.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has lost 7.7% in the past 12 months.

Here's what experts are tipping for the ASX retail stocks. 

JB Hi-Fi Ltd

The group sells consumer electronics, electrical products and white goods through its JB Hi-Fi, JB Hi-Fi Home and The Good Guys brands.

The ASX retail stock has dropped about 12.5% over 12 months and is down 7.6% in 2026, at the time of writing.

On Monday, the electronics and homewares retailer posted a 7.3% increase in sales to a record $6.1 billion. Net profit was up 7.1% to $305.8 million and the interim dividend was boosted by a massive 23.5% to 210 cents per share.

What's the verdict on the ASX retail stock? Analysts are split, but some remain firmly bullish.

Macquarie Group is the most optimistic. Analysts argue market concerns are overdone and they see tailwinds ahead, including ongoing tech upgrade cycles.

The broker has a 12-month price target of $106 versus the current share price of $88.94. If delivered, that implies a 19% upside.  

Citi also rates the ASX retail stock a buy but trimmed its target from $110 to $100. The team was "positively surprised" by gross margins at JB Hi-Fi and The Good Guys. Based on history — just one major downgrade in 15 years — Citi sees limited risk of sharp earnings cuts.

Morgans Financial takes a more cautious stance. It rates the retailer a hold and lowered its price target from $95 to $87. Morgans described the latest profit result as 'solid'. The team acknowledged the company's market leadership but cut earnings forecasts on softer sales growth assumptions.

Harvey Norman

It's a very different story for Harvey Norman. The ASX retail stock has surged more than 22% over the past 12 months, ranking among 2025's top retail performers. Strong FY25 results drove the rally.

Beyond electronics and furniture, Harvey Norman also owns a large property portfolio. This adds stable income and underpinning dividends.

So, what's next for the ASX retail stock— more upside, or time to lock in gains?

Like rival JB Hi-Fi, Harvey Norman also offers income appeal. It's forecast to deliver a fully franked dividend yield of 4.5% in FY26.

At Bell Potter, analysts see value in Harvey Norman as an ASX dividend play. They point to its franchise model, which throws off strong cash flow and gives the retailer flexibility in tough conditions.

Bell Potter forecasts fully franked dividends of 30.9 cents in FY26 and 35.3 cents in FY27. At $6.38 a share, that implies yields of 4.85% and 5.5%.

The broker rates the ASX retail stock a buy with an $8.30 price target. That's on the upper end of TradingView data. Analysts have set the average 12-month price target at $7.30. That points to a potential gain 14.7% and a little over 19% in total returns, including dividends.

The post Which ASX 200 retail stock looks stronger: JB Hi-Fi or Harvey Norman? appeared first on The Motley Fool Australia.

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Four ASX shares that are rising more than most today are listed below. Here's why they are storming higher:

BHP Group Ltd (ASX: BHP)

The BHP Group share price is up 7% to $53.92. Investors have been buying this mining giant's shares following the release of its half-year results. The Big Australian reported an 11% increase in revenue to US$27.9 billion and a 25% lift in underlying EBITDA to US$15.46 billion. A key driver of this growth was its copper operation, which delivered record EBITDA of US$8 billion. This meant that copper contributed the majority of earnings for the first time in its history. Looking ahead, management has increased its FY 2026 group copper guidance to the range of 1.9 Mt to 2.0 Mt.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is up a further 8% to $89.32. Investors have been buying the retail giant's shares this week after it released its half-year results. JB Hi-Fi reported a 7.3% increase in total sales to $6.1 billion and a 7.1% lift in net profit after tax to $305.8 million. Commenting on the results, JB Hi-Fi's CEO, Nick Wells, said: "We are pleased to report record sales and strong earnings for HY26, as we built on the momentum of the previous year. In a retail environment where customers are seeking value, our brands continue to resonate strongly and our teams continue to execute to a high standard."

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 4% to $1.92. The catalyst for this has been the release of the lender's half-year results this morning. Judo Capital reported a 46% increase in statutory net profit after tax to $59.9 million and a 53% jump in profit before tax to $86.5 million. The company's CEO, Chris Bayliss, said: "Today's result demonstrates that Judo continues to successfully execute against its clear and simple strategy. We are on track to achieving our existing FY26 guidance for significant profit growth and realising the operating leverage inherent in our business model."

PEXA Group Ltd (ASX: PXA)

The PEXA Group share price is up 5.5% to $14.63. This follows news that the property settlement technology company has decided to exit its majority-owned Digital Solutions businesses following a strategic review. In addition, the company has upgraded its FY 2026 EBITDA margin guidance to 34% to 37% (from 32% to 35%).

The post Why BHP, JB Hi-Fi, Judo Capital, and PEXA shares are storming higher today appeared first on The Motley Fool Australia.

The electronics and homewares retailer posted a 7.3% increase in sales to a record $6.1 billion net profit was up 7.1% to $305.8 million and the interim dividend was boosted by a massive 23.5% to 210 cents per share.

Chief executive officer Nick Wells said the company was building on the momentum of the previous year.

He added:

In a retail environment where customers are seeking value, our brands continue to resonate strongly and our teams continue to execute to a high standard.

On trading to date this calendar year JB Hi-fi Australia sales were up 2.4%, JB Hi-Fi New Zealand were up 16.7% and The Good Guys were 2.7% higher.

Mr Wells did strike a note of caution about the outlook however, saying:

Whilst we are pleased to see sales growth continue in January in JB Hi-Fi and The Good Guys, cycling strong sales in the prior year, we remain cautious given the uncertainty in the retail market and the continued competitive activity. As always, we will remain focused on maximising demand through driving great value for our customers and delivering consistently high levels of customer service.

Shares looking cheap?

So what do the analysts think? It's fair to say there's a range of opinions, with Macquarie quite bullish on the outlook for JB Hi-Fi shares.

Macquarie has a 12-month price target of $106 compared with $82.40 currently, which would represent a total shareholder return of 33.3% if achieved once dividends are factored in.

The Macquarie team said they believed "concerns by the market are over-played" and they still saw tailwinds for the shares including ongoing tech upgrade cycles.

 They added:

With industry anecdotes continuing to point to rising competition in key promotional periods, especially "Black November", there was continued evidence of JBH's strong market position. In the key JB AU segment, which is likely the largest participant in these promotional-heavy periods, gross profit margins expanded … evident of solid execution and supplier contributions.

The analyst team at Citi still has a buy rating on JB Hi-Fi shares, but did downgrade its price target from $110 to $100.

They said they were "positively surprised" by the gross profit margins for JB Hi-Fi and The Good Guys, and they believed major downgrades were unlikely in the future, going on past performance where that had only happened once in 15 years.

 And finally, the analyst team at Morgans have rated JB Hi-Fi shares a hold, with a price target of just $87, lowered from $95.

The Morgans team said this week's profit was a "solid" result from the company which was the market leader in its field, however they reduced their assumptions about earnings going forward due to lower sales growth expectations.

The post Is JB Hi-Fi a buy, sell or hold following its half-year result? appeared first on The Motley Fool Australia.

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