Consumer staples shares weren't far behind, surging 7.62%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 2.07% to 8,804 points by Friday's close.

Experts are now predicting an eventual cut for interest rates due to crumbling consumer confidence and low GDP growth.

Consumer sentiment fell in May to one of its weakest levels ever in the 50-year history of the benchmark monthly survey.

Softer-than-expected inflation also enhances the case for rates to be kept on hold or cut at some point.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to Bureau of Statistics figures.

On Friday, the ASX 200 rallied 1.98% after US President Donald Trump said a peace deal with Iran could be reached this weekend.

This would likely lead to the reopening of the Strait of Hormuz, a vital shipping route that carries 20% of the world's oil and gas.

The ongoing oil shock has contributed to resurgent inflation and three interest rate increases in Australia this year.

The Reserve Bank will announce the next interest rate decision on Tuesday.

It may seem counterintuitive that signs of economic weakness boosted ASX 200 retail shares last week.

But remember, share markets tend to look six to 12 months into the future.

Thus, economic weakness today is pushing retail stocks up as investors anticipate a greater likelihood of interest rate cuts.

Let's see how some individual retail stocks performed last week.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price leapt 9.55% over the short trading week to finish at $86.47.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) rose 5.07% to $53.91.

The Lottery Corporation Ltd (ASX: TLC) share price soared 8.81% to $5.68.

The Light & Wonder Inc (ASX: LNW) share price ripped 9.8% higher to $127.26.

JB Hi-Fi Ltd (ASX: JBH) shares ascended 7.6% to finish the week at $77.24.

The Harvey Norman Holdings Ltd (ASX: HVN) share price increased 7.88% to $4.79.

Temple & Webster Group Ltd (ASX: TPW) shares soared 13.09% to $5.27.

The Nick Scali Limited (ASX: NCK) share price rocketed 11.71% to $15.46.

Eagers Automotive Ltd (ASX: APE) shares rose 7.06% to $22.29.

The Super Retail Group Ltd (ASX: SUL) share price lifted 8.39% to $12.27.

Lovisa Holdings Ltd (ASX: LOV) shares surged 8.66% to $22.20 apiece.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) edged 0.36% higher to $11.07.

The Guzman Y Gomez Ltd (ASX: GYG) share price lifted 3.63% to $19.40.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the shortened trading week:

The post Why did ASX 200 retail shares outperform last week? appeared first on The Motley Fool Australia.

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

Develop Global Ltd (ASX: DVP)

The Develop Global share price is up 1.5% to $6.50. This morning, this mining and mining services company announced that it will develop the Sulphur Springs and Pioneer Dome projects after making final investment decisions. The company's managing director, Bill Beament, commented: "These are pivotal developments which set up our company for rapid growth. They unlock the huge value of these two projects, putting us on track to generate significant cashflows from three operations covering copper, zinc, silver and lithium and all in Australia."

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up 4% to $2.19. This may have been driven by a broker note out of Morgans this week. It upgraded the language testing and student placement company's shares to a buy rating with a $3.15 price target. It said: "Visa data in IDP's key destination markets remains in deep contraction, with AUS, CAD, and the UK all experiencing material volume and visa grant rate declines. Positively, IDP's China IELTS is scaling quickly (13 test centres vs 5 at 1H26), the cost base reset is on track (A$25m net reduction), and the group continues to demonstrate pricing power across both IELTS and Student Placement (SP). With structural demand drivers for international study intact, a leaner cost base, growing China optionality and ongoing technology/product development (Navi, FastLane, One Skill Retake), we are willing to look through the near-term backdrop on a cyclically depressed multiple. We upgrade to BUY, A$3.15ps PT."

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is up over 3.5% to $76.16. This is despite there being no news out of the retail giant. However, it is worth noting that investors have been buying retail shares on Wednesday. This could possibly be due to optimism that interest rate hikes are over in Australia and the RBA's next move will be to lower them.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is up 2.5% to $82.05. Investors appear to have responded positively to the company's 2026 Strategy Briefing Day event. At the event, Wesfarmers highlighted three key messages. It is accelerating its growth and productivity agenda, it has a portfolio of high-quality businesses with a mix of growth and resilience, and it retains a strong balance sheet with flexibility to invest.

The post Why Develop Global, IDP Education, JB Hi-Fi, and Wesfarmers shares are pushing higher today appeared first on The Motley Fool Australia.

After opening sharply lower compared to yesterday's close, the ASX 200 remained in red territory all session and ended up closing down 1.13%. That leaves the index at 8,686.1 points.

This tough day on the local bourse for Australian investors came after a similarly bearish session on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a foul mood, dropping 1.21%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn't much better, falling 0.89%.

But let's return to ASX shares now and take a look at how today's tough trading conditions percolated down into the different ASX sectors today.

Winners and losers

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

Australia's 2.8 million lower-paid workers will receive a 4.75% pay rise from 1 July 2026, lifting the national minimum wage to A$1,004.90 per week, or A$26.44 per hour.

That is the first time the weekly minimum wage has crossed $1,000 in Australian history.

The increase was higher than last year's 3.5% rise and 3.75% rise in 2024, but lower than the 5% to 6% increase sought by trade unions.

For ASX consumer stocks, the decision creates tension.

Higher wages for workers mean higher spending power for consumers. But they also mean higher labour costs for the large employers who dominate the retail sector.

Here is how the three biggest consumer names on the ASX are likely to navigate that tension.

Woolworths Group Ltd (ASX: WOW)

Woolworths employs more than 100,000 team members across Australia, the vast majority of whom are covered by enterprise agreements or modern award rates.

A 4.75% increase in award wages flows directly into Woolworths' cost base. This already came under pressure in FY2026 as the company invested heavily in price competitiveness to win back market share.

The positive offset is that Woolworths' customers are also among the workers receiving the wage increase.

Every dollar added to the weekly pay packet of a lower-income Australian household tends to flow quickly into grocery spending, which is exactly the category Woolworths dominates.

Woolworths CEO Amanda Bardwell has previously flagged that the company is navigating a "more cautious consumer" heading into the second half of FY2026.

A wage increase that puts more money in the pockets of the lowest-income households could be precisely the stimulus that reverses that caution for grocery spending, even if it simultaneously pressures the supermarket's own wages bill.

Additionally, Westpac flagged today that the 4.75% increase was bigger than their expected 4.25% rise and implied some upside risk to wage growth. The bank flagged that there is risk inflation expectations remain elevated for longer, making the RBA's job harder.

RBA risk cuts negatively for Woolworths, as further rate hikes would squeeze mortgage-holding households and reduce discretionary spending.

Wesfarmers Ltd (ASX: WES)

Wesfarmers faces the wage increase across a far more diverse set of businesses than Woolworths.

Bunnings, Kmart, Officeworks, and Target each employ significant numbers of award-covered workers, meaning the 4.75% increase flows through a wide cost base.

However, Wesfarmers has a meaningful advantage over most of its retail peers: pricing power.

In the first half of FY2026, Wesfarmers delivered NPAT of $1,603 million, up 9.3% year-on-year, with Bunnings and Kmart both delivering strong earnings growth despite a tough consumer environment.

That track record suggests Wesfarmers has the pricing discipline and operational efficiency to absorb a meaningful cost increase without sacrificing profitability.

Kmart in particular, with its low-price value proposition, stands to benefit if lower-income households use their wage increase to trade up from pure discount retailers while remaining value-conscious.

Morgans recently upgraded Wesfarmers to accumulate with an $81.10 price target. The broker cited the quality of the business and improving valuation after a 9% pullback over the past twelve months.

The wage increase is unlikely to change that broadly positive view on the stock's medium-term trajectory.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi occupies the most interesting position of the three in the context of a minimum wage increase.

The consumer electronics retailer draws its customers disproportionately from households in the middle-income bracket, not the very lowest incomes most directly affected by a minimum wage increase.

That means the direct spending boost from today's decision is likely smaller for JB Hi-Fi than for Woolworths or Kmart.

However, there are tangible indirect benefits. A rising wage floor supports broader household income growth across the economy. This tends to increase consumer confidence and discretionary spending over time.

JB Hi-Fi delivered a strong first half of FY2026 with gross sales rising 13.2%, as the company benefited from strong demand for consumer electronics and the ongoing rollout of AI-capable devices.

For JB Hi-Fi, the wage increase is a secondary factor compared to the trajectory of interest rates and consumer confidence.

If the 4.75% increase adds to RBA concerns about inflation and increases the probability of another rate hike, that would be net negative for JB Hi-Fi's customer base.

The inflationary risk

Today's announcement carries a broader risk.

The Fair Work Commission noted it would not be practicable or responsible to award an increase sufficient to fully close the real wage gap that has opened since July 2021. This would have required a rise of more than 5%.

Nevertheless, a 4.75% increase on top of three consecutive RBA rate hikes creates a risk of a wage-price spiral if businesses pass through the cost increase in the form of higher consumer prices.

That is the scenario the RBA most fears, and it is the kind of development that could tip the June hold into an August hike.

Markets are currently pricing in a 7% chance of a fourth rate hike at the June meeting, but that probability could shift if this week's wage decision is interpreted as adding to inflationary pressure.

Foolish takeaway

A minimum wage increase is not inherently good or bad for ASX consumer stocks.

For Woolworths it is both a cost headwind and a demand stimulus.

With Wesfarmers, it is a cost to manage but one its operational strength can absorb.

For JB Hi-Fi it is largely a sideshow to the interest rate story.

For all three, the more important variable in the months ahead remains what the RBA does next with rates, and whether today's wage decision gives the board reason to keep the hiking cycle going.

The post Australia's minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks appeared first on The Motley Fool Australia.

At the time of writing, the ASX 200 is down 0.49% to 8,686 points.

The index has moved between early weakness and selective buying, showing that the market is still struggling for direction.

The result is a choppy session where a few strong pockets are being offset by wider weakness across the market.

Let's take a closer look at what is moving the ASX 200 today.

Retail stocks feel the wage pressure

Retail stocks are under pressure today after the Fair Work Commission handed down its latest wage decision.

Minimum award wages will increase by 4.75% from 1 July, while the national minimum wage will rise to $26.44 an hour, or $1,004.90 a week.

The decision affects around 2.8 million workers, so it is good news for Australians dealing with higher living costs.

The share market, however, is focused on what the wage rise means for company costs.

Retailers are already dealing with cautious shoppers and rising costs, so today's wage decision adds another cost for investors to factor in.

Businesses with large store networks and distribution teams are the ones most exposed, because even small cost increases can become significant across the group.

That concern appears to be weighing on several consumer stocks today.

Woolworths Group Ltd (ASX: WOW) shares are down 1.6% to $34.50, while Coles Group Ltd (ASX: COL) shares have slipped 0.7% to $21.55.

Wesfarmers Ltd (ASX: WES) is also weaker, with its shares down 1% to $78.89. JB Hi-Fi Ltd (ASX: JBH) has fallen 4% to $72.09, while Harvey Norman Holdings Ltd (ASX: HVN) is also down 1% to $4.54.

Economic data adds another concern

There is also some caution around the broader economy after the latest trade numbers.

ABS data showed Australia recorded a seasonally adjusted goods trade deficit of $1.84 billion in March.

It was the first monthly goods trade deficit since December 2017.

Imports jumped 14.1%, helped by a surge in data processing equipment, while exports fell 2.7%.

The Australian reported that Australia's broader net trade position is expected to weigh on March quarter GDP, with imports of data centre equipment playing a major role.

At the same time, today's wage decision has kept inflation and interest rates in focus.

Reuters reported some economists expect the wage rise could add inflation pressure, giving the RBA another issue to weigh closely.

Tech keeps the market from looking worse

Tech shares are helping limit the damage today, even though the broader ASX 200 is still trading lower.

Xero Ltd (ASX: XRO) shares are up 6.25% to $86.01, while WiseTech Global Ltd (ASX: WTC) shares are 5.98% higher at $41.49.

Those gains are helping offset some of the weakness elsewhere across the market.

The buying follows another strong session for AI-linked stocks in the US, where Nvidia shares rose after unveiling its latest AI-focused products.

That has flowed through to parts of the local tech sector, even though the wider market is still struggling.

The S&P/ASX 200 Resources Index (ASX: XJR) is also lending some support, with the sector up 0.58%.

Northern Star Resources Ltd (ASX: NST) is one of the standout moves, with its shares up 13.37% to $20.99.

The gold miner is rallying after reports that Elliott Investment Management has built a stake and is pushing for change.

The post Why's the ASX 200 falling today despite another tech rally? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 2% to $12.17. Investors have been selling this gold miner's shares on Tuesday following a pullback in the price of the precious metal overnight. Traders were selling gold after US-Iran peace talks ended abruptly and sent oil prices charging higher. This has sparked fears that inflation will rise and lead to interest rate hikes, which would likely be bad news for the gold price.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down 3.5% to $72.44. This appears to reflect broad weakness in the retail sector today. In addition, the retail giant was the subject of a bearish broker note out of Morgan Stanley this morning. According to the note, the broker has retained its underperform rating and $70.00 price target on its shares. It believes the company could fall short of consensus expectations given the weakening housing market.

Scentre Group (ASX: SCG)

The Scentre Group share price is down 4.5% to $3.60. This morning, the team at Macquarie Group Ltd (ASX: MQG) downgraded this shopping centre operator's shares to an underperform rating (from neutral) with an improved price target of $3.45. The broker made the move largely on valuation grounds, highlighting that the company's shares have risen strongly from their lows and now trade at a premium to net tangible assets.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 7% to $3.71. This follows the release of a first half trading update from the telco at its Investor Day event. TPG Telecom revealed that it expects mobile subscriber growth of 70,000 to 80,000 during the first half of FY 2026 driven by Digital First and MVNO. Home Broadband subscribers are expected to fall 45,000 for the half. It highlights that competitive dynamics remain challenging in NBN. Nevertheless, management has reaffirmed its FY 2026 EBITDA guidance of $1,665 million to $1,735 million (up from $1,637 million in FY 2025). However, it has warned that "EBITDA delivery is anticipated to be weighted to a stronger second-half performance."

The post Why Evolution Mining, JB Hi-Fi, Scentre Group, and TPG Telecom shares are falling today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) rose 0.86% amid volatile trading to 8,731.7 points by Friday's close.

There was a strong 1.62% rally on Friday on fresh hopes of an imminent deal between the US and Iran.

Meanwhile, softer-than-expected inflation data on Wednesday quelled fears of further interest rate hikes ahead.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to the Australian Bureau of Statistics.

That's why consumer discretionary shares outperformed their peers last week.

Let's take a look at some individual stock price movements.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price lifted 6.84% over the week to finish at $79.79.

The Lottery Corporation Ltd (ASX: TLC) share price rose 4.43% to $5.42.

The Light & Wonder Inc (ASX: LNW) share price ascended 1.68% to $116.73.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 2.45% to finish the week at $74.49.

Shares in furniture retailer Harvey Norman Holdings Ltd (ASX: HVN) lifted 5.01% to $4.61.

Super Retail Group Ltd (ASX: SUL) shares rose 5.77% to $11.73 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares increased 6.08% to close at $23.22.

ASX 200 travel stock Flight Centre Travel Group Ltd (ASX: FLT) ripped 9.08% to $10.93 per share.

Shares in Premier Investments Limited (ASX: PMV) zoomed 7% higher to $12.53.

Some ASX 200 retail shares did not follow the broader sector trend last week.

Eagers Automotive Ltd (ASX: APE) shares fell 2.61% to $20.89 apiece.

The Guzman Y Gomez Ltd (ASX: GYG) share price eased 0.76% to $19.66.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) dipped 0.63% to $50.10.

The Breville Group Ltd (ASX: BRG) share price moderated 0.21% to $28.94.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Why did ASX 200 retail shares lead the market last week? appeared first on The Motley Fool Australia.

We don't have to rush when it comes to investing, we can wait for the right opportunity to come along. Prices and economic conditions are always changing, so at some point we will get the opportunity we're looking for.

I believe both businesses are undervalued for what they could achieve over the next three or so years.

Breville Group Ltd (ASX: BRG)

Breville is a leading example of an Australian business that has successfully expanded overseas. It's best-known for its Breville brand of coffee machines and other small appliances, but it also owns Sage, Lelit, Baratza and Beanz.

It looks like a good time to consider the Breville share price because it has fallen more than 20% since August 2025, as the below chart shows.

While the operating environment is more challenging than it was a couple of years ago, the business continues to grow globally.

In the FY26 half-year result, its dominant global product segment saw Americas revenue growth of 11.6% to $549.5 million, Asia Pacific revenue growth of 5.9% to $190.3 million and EMEA (Europe, the Middle East and Africa) growth of 13.7% to $233.8 million.

I believe the business is well positioned to continue delivering double-digit revenue improvement as it expands in markets where there's plenty of room for growth for coffee consumption such as South Korea and China.

Once the business has finished adjusting its manufacturing for the US market to countries without the same tariff negatives as China, then I think there's good scope for strong profit growth for Breville.

According to the profit projection on CMC Invest, the Australian stock is forecast to grow profit by around 30% between FY26 to FY28. It's currently valued at less than 24x FY28's estimated earnings.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is a leading electronics and appliance retailer, with four different businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S.

I believe this looks like a good time to invest because the JB Hi-Fi share price has fallen by 32% in the past year, as the below chart shows.

Higher inflation and interest rates may well be a headwind for the Australian stock in the shorter-term. But, sales performance remains solid – in the third quarter of FY26, JB Hi-Fi Australia sales were up 4% year over year, The Good Guys sales were up 2.5% and JB Hi-Fi New Zealand sales were up 23.2%.

I think JB Hi-Fi's revenue and earnings are more defensive than the market is giving the business credit for, with consistent demand for things like phones, computers and appliances.

The business is predicted to generate $4.50 of earnings per share (EPS) in FY26, according to the forecast on CMC Invest. That puts the business at 16x FY26's estimated earnings. It could also pay a FY26 grossed-up dividend yield of 6.8%, including franking credits.

The post 2 strong Australian stocks to buy now with $9,000 appeared first on The Motley Fool Australia.

The most concerning factor for consumer discretionary retailers right now is falling consumer sentiment.

And it's no surprise that Aussies are feeling pessimistic and tightening their purse strings.

What's bringing consumers down?

The Reserve Bank has raised interest rates three times this year amid resurgent inflation exacerbated by the global oil shock.

The Westpac–Melbourne Institute Consumer Sentiment Index fell to an "extreme low" of 80.1 in April due to the Iran war.

That was the worst result since the pandemic, and there was only a small uptick of 3.5% this month.

Matthew Hassan, Head of Australian Macro-Forecasting at Westpac Banking Corp (ASX: WBC), said:

Despite a small improvement, consumers remain deeply pessimistic.

Forward views are clearly still being weighed down by uncertainty around global energy supply with the Strait of Hormuz still effectively shut.

However, rate rise fears are also in the mix.

Hassan said consumers expect variable home loan rates to rise further.

Even with three hikes already done this year, 85% of consumers still expect mortgage rates to increase further over the next 12 months.

That is closer to 90% across consumers with a mortgage.

Impact of the Federal Budget

Hassan said the personal impact of the Federal Budget for consumers was "very mixed", according to this month's survey.

Key announcements included proposed changes to capital gains tax (CGT) on all assets, including property, shares, and businesses.

Hassan said:

Among 'baby boomers' and 'Generation X', those expecting to be worse off outnumbered those expecting to benefit by 30–36% compared with a gap of just 9% for 'Millennials' and small net positive spread (+1%) among 'Generation Z' (or 'zoomers').

This week, the market was also surprised by weaker-than-expected jobs data, with unemployment lifting from 4.3% to 4.5%.

Commonwealth Bank of Australia (ASX: CBA) Senior Economist Ashwin Clarke was expecting employment to rise by 15,000 people.

Instead, employment decreased by 18,600 people in April.

Broker cuts price targets on 5 ASX retail shares

All of this factored into broker Jefferies slashing its 12-month share price target on ASX retail share Nick Scali Ltd (ASX: NCK) today.

The Nick Scali share price is $13.38, down 2.3% today and down 43% in the calendar year to date (YTD).

Jefferies downgraded Nick Scali shares from buy to hold and cut its target by 44% to $14 per share.

Analyst Michael Simotas forecasts lower profits ahead due to poor consumer sentiment and headwinds for the property market.

Even before the proposed CGT changes, the Australian property market had already begun to weaken on higher interest rates.

Latest data from Cotality shows a 0.6% fall in property values in Sydney and Melbourne in April and no growth in Canberra.

Last week, Sydney's preliminary clearance rate fell 6% to 49.2%, the weakest result since the early COVID period in April 2020.

Simotas said his profit forecast downgrades for the ASX retail share were due to "operating deleverage in Australia, New Zealand and U.K. due to softening macroeconomic conditions and given Nick Scali's sales are strongly correlated to housing market".

Simotas cut his FY26 net profit forecast by 8%, and said he has cut forecasts for future years by up to 30%.

Other ASX retail shares with slashed price targets

Jefferies cut its share price targets on several other ASX retail shares today.

These include fellow furniture retailer, Harvey Norman Holdings Ltd (ASX: HVN).

The Harvey Norman share price is $4.37, down 1.5% on Friday and down 38% YTD.

Jefferies downgraded its 12-month price target for this ASX retail share by 27% to $4.40 per share.

Jefferies also cut its price target on ASX travel retail share Webjet Group Ltd (ASX: WJL) by 38% to 40 cents per share.

The Webjet share price is currently 47 cents, down 2.1% today and down 47% YTD.

Wesfarmers and JB Hi-Fi shares receive price target reductions

Jefferies cut its 12-month target for Wesfarmers Ltd (ASX: WES) shares by 5.9% to $72.

The Wesfarmers share price is $74.71, down 0.1% today and down 8.6% YTD.

ASX electronics retail share JB Hi-Fi Ltd (ASX: JBH) also attracted a 6% price target cut to $75.

The JB Hi-Fi share price is $73.18, up 1.7% on Friday and down 24% YTD.

The following chart shows the share price percentage falls for these 5 ASX retail shares.

The post 5 ASX retail shares whose 12-month price targets just got slashed appeared first on The Motley Fool Australia.

Indeed, the whole retail sector has had a rough time of late.  

Cost of living pressures have weighed on consumer confidence, competition has intensified, and supply chain disruptions have pushed up component costs across the electronics sector.

Yet through all of it, JB Hi-Fi has continued to grow.

The numbers back it up

JB Hi-Fi delivered a strong first half of FY2026, reporting a 7.3% increase in sales to $6.1 billion, an 8.1% rise in operating profit to $454 million, and a 7.1% lift in earnings per share to $2.80.

The company also raised its interim dividend by 23.5% to $2.10 per share, fully franked.

Revenue for the last twelve months now stands at approximately $10.97 billion, up 8.6% year-on-year. 

Strong demand for technology and consumer electronics drover sales up 6.3%, with mobile phones performing particularly well and online sales climbing 11.2%. 

The New Zealand segment delivered standout growth, with sales rising 32.6% and EBIT more than doubling.

Q3 FY2026 keeps the momentum going

The most recent quarterly update confirmed that JB Hi-Fi Australia sales grew 4.0% in the third quarter of FY2026, with New Zealand sales surging another 23.2%. 

The Good Guys also delivered continued sales momentum, adding to the group's overall performance. 

Management did flag some near-term headwinds, including supplier component cost increases and stock availability shortages driven by global AI-related demand for chips and memory. 

But these are industry-wide challenges, and JB Hi-Fi's scale and supplier relationships put it in a stronger position than most to navigate them.

Brokers are taking notice

UBS upgraded JB Hi-Fi to a buy rating after the first half result, noting that the stock deserves to trade on a higher earnings multiple than it has historically attracted. 

The broker drew comparisons to Wesfarmers Ltd (ASX: WES) and its Bunnings and Kmart divisions, suggesting JB Hi-Fi's consistent execution may warrant a similar re-rating. 

The average analyst price target for JB Hi-Fi currently sits at around $103, implying meaningful upside from current levels.

Foolish Takeaway

JB Hi-Fi is not a flashy growth stock. 

The company is instead a well-run, disciplined retailer with a strong brand, a loyal customer base, and a management team that consistently delivers. 

The share price has pulled back over the past twelve months, which has created a more attractive entry point for long-term investors.

For Fools willing to look through the near-term noise, the opportunity here looks interesting.

The post Why JB Hi-Fi shares can turn things around despite a tough retail environment appeared first on The Motley Fool Australia.

The world is waiting for Iran's response to a US proposal to end the war and re-open the Strait of Hormuz.

The Strait of Hormuz is a key shipping channel for Middle Eastern oil and gas, with about 20% of the world's supply transported through it.

For now, the Strait remains effectively closed for a tenth week amid fresh clashes between the US and Iran overnight.

Meanwhile, brokers have indicated continuing confidence in several ASX 200 shares by reaffirming their buy ratings this week.

Let's take a look.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2.57, down 2.7% today.

Over the past 12 months, this ASX 200 financial share has risen 40%.

That sounds impressive, but it hides the fact that Zip shares have weakened 23% in the calendar year to date.

UBS remains confident that Zip shares will rebound.

The broker renewed its buy rating this week with a 12-month price target of $3.10.

This suggests a potential 20% upside ahead.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $73.87, down 0.8% today.

Over the past six months, this ASX 200 retail share has fallen 25%.

Morgans renewed its accumulate rating on JB Hi-Fi shares with a lowered target of $82.90 this week.

This suggests a potential 12% upside ahead.

Morgans said:

JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories.

Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity.

We see this as likely reflecting potential margin pressure in the 4Q.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is $1.55, down 2.2% on Friday.

Over the past month, this ASX 200 gold mining share has fallen 17%.

UBS renewed its buy rating on Bellevue Gold shares this week.

The broker shaved its 12-month price target to $2, suggesting a 28% upside ahead.

CSL Ltd (ASX: CSL)

The CSL share price is $120.61, down 1.2%, after hitting a 9-year low of $119.61 today.

CSL shares have halved in value over the past 12 months.

UBS renewed its buy rating on CSL shares today with a reduced price target of $205.

This indicates a potential 68% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $10.73, down 1.5% today.

This ASX 200 travel share is struggling in 2026, down 29% in the calendar year to date.

Morgans remains confident of a turnaround though.

The broker renewed its buy rating on Flight Centre shares this week.

However, it slashed its 12-month price target from $18.05 to $14.55.

This still suggests a potential 35% capital gain ahead. 

Morgans said:

Surprisingly, FLT has maintained its FY26 earnings guidance. It noted that the conflict is creating near-term uncertainty and temporarily disrupting international travel patterns. It is having a more significant impact on Leisure (April profit was down ~A$10m on the pcp).

While the reiteration of guidance was better than feared, our concern is that following its key trading period (May-June), FLT will likely need to revise guidance as we expect leisure demand will remain weak.

If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong. 

Polynovo Ltd (ASX: PNV) 

The Polynovo share price is $1.01, down 2.7% today.

This ASX 200 healthcare share has lost almost a third of its valuation over the past 12 months.

Morgans maintained its buy rating on Polynovo shares this week.

The broker lowered its price target from $1.83 to $1.56, which still implies a great potential upside of 54%.

Morgans commented:

We have reviewed our FY26 and FY27 forecasts and conclude the company is set to deliver a strong 2H26 and continue that growth trajectory into FY27.

PNV is one of the most shorted stocks on the ASX. If PNV can demonstrate a growing profit profile the short position could be reduced materially. 

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.92, down 1.8% today.

Over the past month, this ASX 200 financial share has fallen 10.5%.

Morgans renewed its buy rating on Magellan shares today.

The broker trimmed its 12-month price target from $11.99 to $11.19.

This suggests a potential 24% upside ahead.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is $12.86, down 1.5% on Friday.

This ASX 200 healthcare share has fallen 32% in the calendar year to date.

However, Bell Potter is confident that the stock price will come back.

The broker renewed its buy rating today with a 12-month price target of $22.

This implies a near-70% capital gain ahead.

The post 8 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

Does it rate them as buys, holds, or sells? Here's what you need to know:

Imdex Ltd (ASX: IMD)

Morgans was pleased with this mining technology company's performance during the third quarter.

In response, the broker has retained its buy rating on Imdex shares with an improved price target of $5.00. It said:

The 3Q update was strong with constant FX organic revenue growth of +26% YoY. While we pare back our FY26 revenue forecast slightly on FX, we make negligible changes to our EBITDA forecast ($164m +3% vs VA consensus $160m) as mix benefits offset the lower revenue. For FY27-28, we increase our earnings forecasts on confirmation of strong volume growth and recent capital markets activity. While we see capacity for a slight beat in August, in our view, outer year upgrades will be the key driver of the share price from here.

JB Hi-Fi Ltd (ASX: JBH)

This retail giant delivered a "resilient" trading update according to Morgans.

However, it highlights that management appears somewhat cautious ahead of the important end of financial year (EOFY) period.

In response, the broker has retained its accumulate rating with a trimmed price target of $82.90. It said:

JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories. Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity. We see this as likely reflecting potential margin pressure in the 4Q. We have made minor revisions to earnings (<1%), and our valuation lowers to $82.90 (from $83.50). We maintain our ACCUMULATE recommendation.

Lottery Corporation Ltd (ASX: TLC)

Morgans was pleased to see this lotteries company secure a mammoth 40-year extension to its Victorian Public Lottery Licence.

It believes the deal is strategically positive but acknowledges that the debt taken on to pay for it will weigh on its earnings.

Nevertheless, the broker has upgraded Lottery Corp's shares to an accumulate rating with an improved price target of $6.00. It said:

The Lottery Corporation (TLC) has secured a 40-year extension of its Victorian Public Lottery Licence to 30 June 2068, paying a $1.145bn upfront premium funded entirely by debt. The duration and timing of the renewal was a mild surprise given the licence was historically offered on 10-year terms and wasn't expiring until June 2028.

We view the deal as strategically positive, but near-term earnings absorb the cost. Higher D&A and interest from the new debt drag our FY26/27/28F EPS estimates down 3%/13%/15% respectively, partially offset by a beta reduction reflecting materially lower licence renewal risk.

The post What is Morgans saying about Imdex, JB Hi-Fi, and Lottery Corp shares? appeared first on The Motley Fool Australia.

The retail giant's shares ended the day 7% lower following the release of a trading update.

This means its shares are now down 40% from their 52-week high of $121.00.

Does this make JB Hi-Fi shares a bargain buy? Let's see what Bell Potter is saying.

Are JB Hi-Fi shares a bargain buy?

Bell Potter notes that JB Hi-Fi's trading update suggests that the key JB Hi-Fi Australia business is performing in line with its expectations in FY 2026.

The same cannot be said for The Good Guys business, which "saw some easing in growth at 2.5% and came in slightly below BPe."

In response, the broker has made some small revisions to its revenue and earnings expectations. It explains:

We make changes to our revenue assumptions factoring in the GG and e&s performance in the trading update and accounting for some easing within our JBH Aus comparable sales in meeting the current challenging 4Q26 comps. The key division would cycle +8.2% comparable sales during the seasonal quarter and our revised estimates see +1.8% for 4Q26e and +2% for 2H26e and +3% thereafter.

We also apply some conservatism through our FY27/28e forecasts to see market share retention offset by some investment in gross margins, hovering around the 22% level for the overall business and a broadly flat CODB % of sales, with operating margins improving from a low point in FY27e. The net result sees our NPAT forecasts -1%/- 3%/-3% for FY26/27/28e.

Should you invest?

Bell Potter continues to see value in JB Hi-Fi shares at current levels.

It has responded to the update by retaining its buy rating on the retailer's shares with a trimmed price target of $87.00 (from $90.00).

Based on its current share price of $72.98, this implies potential upside of 19% for investors over the next 12 months.

In addition, the broker expects dividend yields of 4.5% in FY 2026, 4.6% in FY 2027, and 4.9% in FY 2028. This stretches the total potential return beyond 23%.

Bell Potter thinks JB Hi-Fi shares are good value at 17x estimated FY 2026 earnings. It said:

Our PT decreases by ~3% to $87.00 (prev. $90.00) driven by our modest earnings revisions (BPe below Cons), skewed to FY27/28e. While we expect the overall Consumer Discretionary sector to remain challenged through CY26, our preference for JBH is supported by our view as semi-discretionary characteristics seen in the name and ability to maintain market share over a longer-term vs smaller competitors as short term product challenges are mitigated through 4Q26. Trading at ~17x FY26/27e P/E (BPe), we see valuation support and maintain our BUY rating.

The post Down 40%: Are JB Hi-Fi shares a bargain buy? appeared first on The Motley Fool Australia.

For income-focused investors, a pullback in market leaders like Sonic and JB Hi-Fi can present an opportunity. The ideal setup is a business that grows earnings over time while steadily lifting its dividend, especially when it's trading at a more attractive valuation.

Sonic Healthcare: global pathology leader

Sonic Healthcare is a global leader in pathology and diagnostic services, with operations spanning Australia, Europe, and the US. Its defensive earnings profile comes from essential healthcare services, which tend to hold up well across economic cycles.

One of its biggest drawcards is its dividend track record. The company has followed a progressive dividend policy, increasing its payout every year since 2013. In its FY26 half-year result, Sonic lifted its interim dividend by 2.3% to 45 cents per share.

The last two dividends declared totalled $1.08 per share, equating to a yield of about 5.4% excluding franking credits. If that level is maintained over the next year, it would translate into a grossed-up yield of roughly 7%, which is appealing for income investors.

There are risks to consider. Currency movements, regulatory changes, and fluctuations in testing volumes can influence Sonic's earnings, particularly following the post-pandemic normalisation in healthcare demand.

Broker sentiment on the ASX dividend stock is mixed. According to data from TradingView, the average price target sits at $24.49, implying potential upside of around 29% from current levels.

JB Hi-Fi: leading electronics seller

Turning to JB Hi-Fi, the retailer remains one of Australia's leading sellers of consumer electronics and home appliances. The ASX dividend stock has built a reputation for strong execution, cost control, and consistent profitability in a highly competitive sector.

JB Hi-Fi also has a solid dividend history. The company increased its dividend every year between 2013 and 2022, before a slight dip in 2023 amid higher interest rates and inflation pressures. Since then, it has resumed growing its payout.

In its FY26 half-year result, JB Hi-Fi lifted its dividend by 23.5% to $2.10 per share, supported by a 7.1% rise in earnings per share to $2.80. The ASX dividend share might not be able to repeat that pace of dividend growth in the near term. However, the income outlook remains attractive.

According to projections on CommSec, JB Hi-Fi is expected to deliver an annual dividend of around $3.41 in FY26. That equates to a potential grossed-up dividend yield of about 6% at current prices. Looking further ahead, CommSec forecasts that dividends will increase to $3.51 in FY27 and $3.83 in FY28, suggesting continued growth potential.

Risks include softer consumer spending, margin pressure, and the cyclical nature of retail demand, particularly in a high interest rate environment.

Even so, analysts remain constructive. Bell Potter Securities recently retained its buy rating on JB Hi-Fi with a $90.00 price target, suggesting a 22% upside. That's broadly in line with the average of 15 analyst forecasts.

Foolish Takeaway

The bottom line is that both Sonic Healthcare and JB Hi-Fi offer a combination of income and long-term growth potential.

With prices of both ASX dividend stocks under pressure in 2026, they may be worth considering for investors seeking reliable dividends at more attractive valuations.

The post 2 top ASX dividend stocks on sale, are they buys today? appeared first on The Motley Fool Australia.

The Australian dollar has actually been on a tear of late. It was only in April of 2025 that the local currency dropped to a COVID-era low of about 60 US cents. That was thanks to the subsequently-walked-back-and-then-declared-illegal 'liberation day' tariff announcement from the US President Donald Trump.

Today, just over a year later, things look quite different. It was only in late January that the Aussie dollar crossed 70 US cents for the first time since early 2023. Over the past week, we saw the Aussie hit, and then exceed, 72 US cents. Today, one Australian dollar will buy you about 72.5 US cents at the time of writing. That's the highest level the Aussie has traded at against the Greenback in almost exactly four years.

Many Australians only check the Aussie dollar exchange rate when they're about to book an international holiday. But our dollar's value is a vitally important economic catalyst, one that can have huge impacts on a variety of ASX shares. Let's dig into how that works.

To put it simply, a rising Aussie dollar makes exports more expensive for companies that send goods overseas, and makes importing goods from overseas into Australia cheaper, provided all other things remain equal.

Which ASX shares benefit from a higher Aussie dollar?

As such, the biggest losers from a higher Aussie dollar are arguably mining companies, as well as energy companies. Stocks like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), Northern Star Resources Ltd (ASX: NST) and Whitehaven Coal Ltd (ASX: WHC) are forced to sell their iron ore, oil, gold and coal in US dollars on the international market. If our dollar rises in value, these companies will receive fewer Aussie dollars when they bring the US dollars they receive upon the sale of their commodities back home to the ASX.

Any other ASX share that sends goods or services to countries beyond our shores, or brings back foreign currencies to the ASX, is also in the firing line. That might include Cochlear Ltd (ASX: COH) and CSL Ltd (ASX: CSL), for example.

But what about winners from a higher dollar? Well, we have those too. As you can probably gather, any country that imports goods to resell to Australians will benefit from a higher dollar. Some names that come to mind include Wesfarmers Ltd (ASX: WES), JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN) and Ampol Ltd (ASX: ALD).

Wesfarmers imports most of the goods sold at its retailers, like Kmart, OfficeWorks, Target, and Bunnings, from their country of manufacture, which is typically China. It would be a similar story with JB and Harvey Norman's televisions and appliances, or Ampol's imported fuels.

Unfortunately, the closure of the Strait of Hormuz is probably dampening, if not eliminating, the benefits of our higher dollar for these stocks right now. But whenever the Strait reopens, these stocks will feel the full benefits of a rising Aussie dollar. That's assuming the dollar stays where it is, or keeps going higher, of course.

The post The Aussie dollar just hit a 4-year high. Which ASX shares will benefit? appeared first on The Motley Fool Australia.

So, with that in mind, let's see which shares analysts are tipping as sells this week, courtesy of The Bull.

Here's what they are bearish on:

Commonwealth Bank of Australia (ASX: CBA)

The team at Alto Capital thinks that CBA is an ASX 200 share to sell this week.

Due to the banking giant's current valuation, it thinks investors should consider taking profits. It explains:

Australia's largest retail bank enjoys a dominant position across mortgages, deposits and consumer banking. The company recently reported a record first half cash net profit after tax in 2026 of $5.445 billion, supported by lending growth and strong deposit volumes. Recently, the share price had re-rated significantly and traded at a premium to domestic peers and global banking counterparts. With much of the operational strength already reflected in the valuation, the risk-reward balance favours taking profits at current levels.

JB Hi-Fi Ltd (ASX: JBH)

Over at Fairmont Equities, its analysts think that retail giant JB Hi-Fi could be an ASX share to sell now.

The equities firm believes that higher fuel prices and interest rates could weigh on the performance of discretionary retail stocks. It said:

With interest rates possibly rising again on top of higher fuel prices, we would be cautious about discretionary retail stocks. Households are under increasing pressure from higher cost of living expenses, which could result in consumers cutting discretionary spending. This consumer electronics giant faces the challenge of sustaining revenue and earnings in a potentially softer economy. From a charting perspective, the share price remains in a downtrend. The shares have fallen from $121 on August 20, 2025 to trade at $78.10 on April 30, 2026. We would be inclined to cash in some gains at this stage of the cycle.

Westpac Banking Corp (ASX: WBC)

Fairmont Equities has also named big four bank Westpac as an ASX 200 share to sell this week.

It thinks that a recent trading update shows that economic conditions could be getting challenging. As a result, it would not be surprised to see Westpac shares take a tumble. Fairmont Equities said:

We had previously been bullish on the banks when they were trending higher from high levels of momentum. However, they are stalling at current levels. A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks. In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC's share price.

The post Warning! Experts name 3 ASX 200 shares to sell appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are named below. Here's why they are falling:

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down over 7% to $72.12. This follows the release of a sales update from the retail giant this morning. The company revealed that JB Hi-Fi Australia total sales rose 4% and The Good Guys sales lifted 2.5% for the third quarter. However, while this was strong, comments from CEO Nick Wells appear to have spooked investors. He said: "As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity."

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 6% to $9.03. This fund manager's shares have come under pressure this week after announcing sweeping changes to its global fund. This includes management fees being cut from 1.35% to 0.89% per annum and performance fees being removed. In addition, management of the Magellan Global Fund and Magellan Global Fund Hedged will change to Vinva Investment Management. Magellan's CEO, Sophia Rahmani, said: "We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering."

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is down 5.5% to $5.26. This appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the lotteries company's shares to an equal-weight rating with a $5.70 price target. Morgan Stanley made the move partly on the belief that second-half trading has been softer than expected due to weaker jackpot activity.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $32.02. Investors have been selling Woodside shares following a pullback in oil prices. This has been triggered by optimism that the US and Iran could be close to signing a peace deal. It isn't just Woodside that is falling today. The S&P/ASX 200 Energy index is down 1.7% at the time of writing.

The post Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the JB Hi-Fi share price is down 3.40% to $75.22.

That adds to a weaker run over the past few months, with the stock now down 21% since the start of the year.

Today's move may look strange at first glance, given the company reported sales growth across most of its major divisions.

But investors appear to be focusing on the weaker parts of the update, along with cost pressure flagged by management.

Here's what JB Hi-Fi reported.

Sales are still growing

JB Hi-Fi said group sales continued to grow during the third quarter of FY26, covering the period from 1 January to 31 March.

In Australia, JB Hi-Fi sales rose 4% on a total basis, while comparable sales increased 2.6%. The New Zealand business was much stronger, with total sales up 23.2% and comparable sales rising 15.2%.

The Good Guys also posted growth, with total and comparable sales both up 2.5%. The weaker spot was e&s, where total sales fell 1.4% and comparable sales dropped 4.8%.

The year-to-date numbers were still positive across the group.

JB Hi-Fi Australia has lifted total sales by 5.7% so far this financial year, while New Zealand sales are up 29.7%. The Good Guys has grown total sales by 3.6%, and e&s remains slightly ahead on a total basis, with sales up 1.6%.

So why are investors selling

The pressure on the share price looks more closely tied to what management said about the trading environment.

Group CEO Nick Wells said the company was pleased to see sales growth in JB Hi-Fi and The Good Guys in what he described as an increasingly uncertain retail environment.

He also said the company is entering the key end-of-financial-year trading period with technology categories facing supplier component-related cost increases and stock availability shortages.

On top of that, JB Hi-Fi is dealing with heightened competition.

JB Hi-Fi is still selling more, but investors are now weighing up how much of that growth can flow through if costs rise and competitors keep pushing hard on price.

That is especially relevant after such a big run in previous years when shares were trading above $100. The stock is now down 21% in 2026 and 27% over the past 12 months.

Foolish takeaway

I do not think this update was bad. The sales growth is still there, and New Zealand was easily the strongest part of the update.

But I can see why the market is being cautious today. The update was not clean enough to ignore the pressure building around costs, stock supply, and competition.

From my side, I would want to see whether JB Hi-Fi can keep growing sales without giving up too much margin.

Until there is more evidence of that, I am not in a rush to step in just because the share price is lower today.

The post Warning: JB Hi-Fi shares tumble as investors look past sales growth appeared first on The Motley Fool Australia.

What did JB Hi-Fi report?

• JB Hi-Fi Australia total sales rose 4.0% for Q3 FY26
• JB Hi-Fi New Zealand total sales jumped 23.2% for the quarter
• The Good Guys total sales increased 2.5% for Q3
• e&s total sales slipped 1.4% in Q3
• Year-to-date, JB Hi-Fi New Zealand total store sales climbed 29.7%

What else do investors need to know?

JB Hi-Fi delivered positive sales growth in both Australian and New Zealand operations despite a challenging and uncertain retail environment. The Good Guys business also saw continued sales momentum, adding to the group's overall performance.

Management flagged supplier component cost increases and stock availability shortages, particularly in technology categories. Heightened competition is putting further pressure on margins as the group heads into the crucial end of financial year period.

What did JB Hi-Fi management say?

CEO Nick Wells said:

We are pleased to see sales growth in JB Hi-Fi and The Good Guys in what is an increasingly uncertain retail environment. As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity. As always, we will remain focused on what we can control and seek to maximise demand through driving great value for our customers, leveraging our strong supplier relationships, and delivering exceptional customer service.

What's next for JB Hi-Fi?

JB Hi-Fi is focusing on controlling what it can—maximising demand, supporting supplier partnerships, and delivering value for customers. Management will be aiming to maintain momentum through the end-of-financial-year period, despite increased costs and supply challenges.

The group's results suggest ongoing resilience in a tough retail market, but management remains alert to industry-wide pressures as it navigates these operational headwinds.

JB Hi-Fi share price snapshot

Over the past 12 months, JB Hi-Fi shares have declined 25%, trailing the S&P/ASX 200 Index (ASX: XJO) which ha risen 6% over the same period.

View Original Announcement

The post JB Hi-Fi Q3 FY26 sales update: Australia & NZ drive growth appeared first on The Motley Fool Australia.

That's according to Fairmont Equities' Michael Gable, who this week issued a sell recommendation for both the S&P/ASX 200 Index (ASX: XJO) bank stock and the ASX 200 electronics retailer (courtesy of The Bull).

In early afternoon trade today, JB Hi-Fi shares are down 1.4%, changing hands for $77.47 apiece.

Westpac shares are sliding as well, down 1.1% at $38.06 each.

This sees both stocks trailing the 0.6% losses posted by the benchmark index at this same time.

Longer-term, Westpac shares remain up 17.4% over 12 months, excluding dividends.

JB Hi-Fi shares have had a more difficult year, down 25.2% in 12 months, also not including dividends.

Looking ahead, with an eye on rising inflation and the resulting higher interest rates, Fairmont Equities' Gable believes both ASX 200 stocks could be in for a rough patch.

Time to sell Westpac shares?

"We had previously been bullish on the banks when they were trending higher from high levels of momentum," said Gable. "However, they are stalling at current levels."

Commenting prior to today's half year results release, which look to be pressuring Westpac shares, Gable noted, "A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks."

Indeed, at today's results release – which saw Westpac report a 3% year-on-year increase in statutory net profit to $3.4 billion – Westpac CEO Anthony Miller cautioned:

The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year. The disruption to energy supply chains has driven a rise in prices and we're seeing this flow through to businesses and households…

Summarising his sell recommendation on Westpac shares, Gable concluded:

In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC's share price.

Should you sell JB Hi-Fi shares?

Atop Westpac shares, Gable also foresees economic headwinds building for JB Hi-Fi shares.

"With interest rates possibly rising again on top of higher fuel prices, we would be cautious about discretionary retail stocks," he said.

According to Gable:

Households are under increasing pressure from higher cost of living expenses, which could result in consumers cutting discretionary spending. This consumer electronics giant faces the challenge of sustaining revenue and earnings in a potentially softer economy.

From a charting perspective, the share price remains in a downtrend. The shares have fallen from $121 on August 20, 2025 to trade at $78.10 on April 30, 2026. We would be inclined to cash in some gains at this stage of the cycle.

The post Sell alert! Why this expert is calling time on JB Hi-Fi and Westpac shares appeared first on The Motley Fool Australia.