Investors eyeing the property technology space might find themselves comparing PEXA Group Ltd (ASX: PXA) and REA Group Ltd (ASX: REA) shares. Both companies are key players behind the digital platforms transforming Australian real estate, but they approach the market in starkly different ways. Let's break down each case and see which business shines brightest based on the latest available numbers.

The case for PEXA

PEXA Group leads Australia's digital conveyancing market, enabling property settlement electronically—making transactions faster, more reliable, and less error-prone. The company's core strength lies in its world-first technology that allows almost real-time settlement and fund clearance. It earns revenue predominantly from transaction fees as lawyers, conveyancers, and banks process properties on its network. According to its company profile, PEXA is dominant in Australia and pushing into the UK and other international markets.

Looking at the fundamentals, PEXA has a market cap of $1.17 billion, placing it well below giants like REA but still substantial in the local tech sector. Its recent numbers reveal:

• P/E Ratio: 60.86 — reflecting a hefty valuation relative to reported earnings, typical for a tech platform in expansion mode.
• Earnings per share (EPS): $0.109
• Dividend yield: 0.00% — it isn't currently paying dividends, choosing instead to reinvest and grow.
• Year-to-date return: -50.6%, a dramatic drop suggesting recent heavy selling or market disappointment.

PEXA's ambition and early mover advantage can be exciting, but there's clear risk attached to momentum and profitability at this stage.

The case for REA Group

REA Group is best known as the operator of Australia's leading property portals, realestate.com.au and realcommercial.com.au. These platforms dominate online real estate advertising, making REA essential for property sellers and advertisers nationwide. The group also owns mortgage broking and property data businesses, giving it a broad footprint across digital property services in Australia and select global markets.

REA's scale is on another level:

• Market cap: $19.32 billion — this is a blue-chip business with massive reach and entrenched network effects.
• P/E ratio: 28.92, less lofty than PEXA's and reflecting far higher profit generation at this maturity stage.
• EPS: $5.106 — showing strong earnings power compared to PEXA.
• Dividend yield: 2.01% (fully franked at 100%) — with a reliable record of dividend growth, as seen in its consistent payment history.
• Year-to-date return: -17.9%, which is a notable decline but less severe than PEXA's drop.

For those seeking established profitability, scale, and regular income, REA Group clearly ticks the boxes.

Valuation comparison

With both companies trading in the property tech space, let's stack up three key metrics side-by-side:

Note: PEXA Group Ltd's reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

The contrast is stark — REA Group trades on a much lower earnings multiple for the sector, pays a growing dividend, and generates stronger profits. PEXA carries a higher valuation multiple, reflecting big growth expectations rather than current earnings. For income-focused investors, REA also delivers with franked dividends.

Recent share price performance

Looking at recent share price history until 25 September 2026 — here's how the two stack up:

• PEXA: Closed at $6.64, down 2.2% on the day. Year-to-date, shares are down 50.6%.
• REA Group: Closed at $147.66, down 2.9% on the day. Year-to-date, shares are down 17.9%.
  

While both have suffered in 2026, PEXA's sell-off has been much heavier, suggesting the market's patience for its growth story is wearing thin—or that risk levels look substantially higher right now.

Which is the better buy?

If I had to choose between PEXA and REA Group based on the numbers above, my pick would be REA Group. Here's why: it's a clear industry leader with far stronger earnings, an attractive dividend that's fully franked, and more reasonable valuation for its scale and recurring profit streams. REA is down in 2026, but not nearly as battered as PEXA, whose shares have been cut in half this year.

PEXA does have an exciting platform and international ambitions, but the lack of dividend, a very high P/E ratio, and ongoing heavy share price declines make it a riskier bet. Unless I was explicitly seeking high-risk, early-stage tech exposure, I wouldn't look past REA's combination of stability, income, and dominant market share in the Australian property sector.

The post PEXA vs REA shares: Which property tech company is the better buy? appeared first on The Motley Fool Australia.

I get excited when high-quality businesses fall that far because it could be a rare opportunity to buy part of a great business.

REA Group describes itself as a multinational digital advertising business, specialising in property. It operates Australia's leading residential and commercial property websites – realestate.com.au and realcomercial.com.au, as well as the leading website dedicated to share property, Flatmates.com and the property research website property.com.au.

The company also owns Mortgage Choice, an Australian mortgage broking franchise group, PropTrack, a leading provider of property data services, Campaign Agent, Australia's leading provider of vendor-paid advertising finance solutions to the Australian real estate market and Realtair, a digital platform providing technology for the real estate transaction process. It also has investments in Simplicity Loans and Advisory, Arealytics, Athena Home Loans and Planitar.

As you can see, REA Group has a strong presence across the real estate sector.

Has recent financial performance been compelling?

The company delivered a solid set of numbers during the FY26 result.

Australian revenue grew 11% to $1.7 billion, Australian operating profit (EBITDA) before associates rose 13% to $1.1 billion, net profit after tax (NPAT) rose 15% to $650 million and earnings per share (EPS) climbed 15% to $4.93.

The company noted a number of highlights for realestate.com.au, with 12.7 million people visiting the portal on average each month. It also said it receives 146.4 million average monthly visits, which is 104.5 million more monthly visits than the nearest competitor on average.

It also noted 2.9 million people visited realcommercial.com.au per month on average, 1.8 million more people than the nearest competitor.

FY27 could be a challenging year for the company amid all of the changes to property-related taxes.

It said that new national buy listings are anticipated to be "flat to down low single-digits" in FY27. July listings were 2% lower and in line with the eight-year average. However, combined Melbourne and Sydney listings declined by 13%, while Brisbane, Perth and Adelaide increased by 13%.

Despite that headwind, the company continues to target operational margin expansion, which I'd say is a positive development.

Management expects a low double-digit controllable residential buy yield, excluding the impact of the geographical mix, driven by an 80% premium price increase and growth in add-ons.

So, whilst the number of listings is challenging, price rises are helping offset the headwinds.

According to Commsec's projection, the business is now valued at just 25x FY27's estimated earnings. Commsec forecasts suggest the company could grow its EPS by 13.75% in FY28 and another 15.7% in FY29.

Is the REA Group share price a buy?

According to CMC Invest, there have been 10 analyst ratings on the business within the last three months. Four of those ratings were a buy, five were a hold and one was a sell.

The average price target of those analyst ratings was $188.50, which implies a possible rise of 27% over the next year from where it is at the time of writing. In other words, it could be an underrated opportunity, so it could be one to take a closer look at.

The post Is the REA Group share price a strong contrarian buy? appeared first on The Motley Fool Australia.

Meanwhile, three experts share their views on three ASX 200 shares.

Let's take a look.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is $16.02, down 0.4% today and up 4% over 12 months. 

Bell Potter has a buy rating on this ASX 200 healthcare share. 

Analyst John Hester said: 

TLX has announced a scrip-based merger with the privately owned ITM Group, based in Germany for consideration of up to US$2.35bn.

ITM is a leading manufacturer of therapeutic isotopes, including Lu-177, being the dominant therapeutic isotope for the treatment of cancers including for the Novartis blockbuster Pluvicto.

The merger creates a vertically integrated radiopharmaceutical company with enhanced capabilities across development, isotope production and global manufacturing.

[The merger] represents a once in a lifetime opportunity to acquire a dominant share in the supply of Lu-177 that is very difficult to replicate. While earnings may take a year or two to realise, the underlying value is obvious.

New Hope Corporation Ltd (ASX: NHC)

The New Hope Corporation share price is $5.86, down 0.09% today and up 49% over 12 months. 

Morgans has a hold rating on this ASX 200 coal share.

The broker said: 

Cash surprise drives dividend beat – Strong operational delivery and a year-end cash balance of A$485m supported a fully franked 30cps final dividend, materially ahead of MorgansF (20cps) and consensus (14cps).

Operational performance exceeded expectations – NHC delivered record saleable coal production of 11.5Mt and coal sales of 11.8Mt, exceeding the top end of guidance and demonstrating the resilience of its operations despite disruptions throughout the year.

Strong run, balanced view – NHC shares have rallied 60% YTD, supported by stronger coal prices and improving market sentiment. While we remain constructive on thermal coal fundamentals, the recent share price performance may provide an opportunity for investors to crystallise some gains.

REA Group Ltd (ASX: REA)

The REA share price is $151.55, down 0.5% today and down 34% over 12 months. 

Morgans has a sell rating on this ASX 200 communications share. 

Analyst Michael Ardrey said:

Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.

The post Buy, hold, sell: New Hope, REA, Telix Pharmaceuticals shares appeared first on The Motley Fool Australia.

Canaccord Genuity has just released a research report looking into the sectors which tend to do well, and those that tend to suffer as interest rates increase.

Interest rate increase all but certain

The broking house said in its report that expectations for an interest rate hike had increased sharply over the past few months due to persistently high inflation, exacerbated by rising oil prices due to the conflict in the Middle East.

CG added:

The RBA is now very likely to hike the cash rate by 25bps later this month, and markets are also pricing in one to two further hikes beyond September. While accumulating evidence of a slowing economy may allow the RBA to hold rates after September, the policy outlook is nevertheless materially more restrictive than envisaged this time last year.

The broking house said upward pressure on interest rates, a deteriorating consumer backdrop, a softer housing market and slowing economic growth all presented headwinds for Australian shares from a valuation and earnings perspective.

They added:

These pressures have contributed to a ~5% pullback in the ASX 200 since early August, with outsized declines across the rate-sensitive Retail (-18%) and Real Estate (-13%) sectors, as well as growth sectors such as IT (-14%).

CG said the sectors with the strongest negative correlations with interest rates included real estate, retail and information technology.

CG added:

Recent trading updates have pointed to a softening consumer backdrop, with names such as JB Hi-Fi Ltd (ASX: JBH) reporting negative top-line growth in early FY27. Wesfarmers Ltd (ASX: WES) has also shown a negative correlation with short-term rates, consistent with its exposure to discretionary household spending and its sensitivity to the housing market through its Bunnings franchise.

CG said online classifieds companies such as Seek Ltd (ASX: SEK) and REA Group Ltd (ASX: REA) have in the past shown strong negative correlations with rate increases, which, "partly reflects the degree of cyclicality in their earnings, being tied to job ads and property listings, respectively, as well as the valuation impact of higher long-term yields on growth-orientated companies''.

Infrastructure owners such as Transurban Group Ltd (ASX: TCL) and APA Group Ltd (ASX: APA) were also sensitive to rate increases due to their reliance on debt funding.

Small ray of hope in energy

On the positive side of the ledger, CG said energy stood out as the one sector with a clear positive correlation, "with changes in both short-end rates and longer-term yields over the past three years''.

The post Where to invest as interest rates charge higher appeared first on The Motley Fool Australia.

Comparing REA Group Ltd (ASX: REA) and CAR Group Ltd (ASX: CAR) might seem like splitting hairs at first—both are digital advertising powerhouses offering online marketplaces in property and automotive, respectively. But for income-focused investors, there are some clear differences between REA and CAR shares worth digging into. If you're searching for franked dividends, capital growth or just a reliable yield, here's how these two stack up.

The case for REA Group

REA Group runs the dominant realestate.com.au platform in Australia, a go-to site for property buyers, sellers, and renters. The company also has exposure to complementary businesses such as mortgage broking and property data, adding some diversification to its earnings.

Looking at the fundamentals, REA is a $20.84 billion business with a P/E ratio of 30.98, making it a premium-priced market leader. Its 1.88% dividend yield won't knock your socks off, but it's underpinned by 100% franking—perfect for Aussie investors who can use those tax credits. REA's earnings per share (EPS) sits at $5.106, and dividend history shows steady growth over recent years, with payments fully franked as far back as the records go.

REA's business is solid, especially with its dominant market position in online property listings and services. According to its most recent public description, it's got a stronghold over the residential and commercial property websites sector in Australia and growing reach overseas.

The case for CAR Group

CAR Group, most familiar to Aussies as the owner of carsales.com.au, is a leader in online automotive classifieds. But CAR has expanded beyond Australian shores, with stakes in major auto marketplaces across South Korea, the US, Chile and Brazil. This international reach gives it multiple growth levers that don't depend solely on the local market.

Fundamentally, CAR Group has a $9.09 billion market cap—smaller than REA but still substantial. Its P/E ratio is 29.01, a touch lower than REA's, and its dividend yield is a standout at 3.58%. The shares come with only partial franking (recent dividends ranged from 30–50%), so the after-tax yield for Australian shareholders isn't quite as attractive as a fully-franked payout, but the grossed-up yield still compares favourably. The latest annual dividend per share is $0.87, and the company has lifted dividends steadily in recent years.

CAR Group's diverse earnings base across multiple countries and digital marketplaces adds some resilience in case the Australian car or job market slows.

Valuation comparison

Here's a side-by-side of the key numbers:

REA is pricier on most measures, but CAR delivers a higher headline yield. However, REA's fully franked dividends make it more tax effective for some income-driven investors.

Recent share price performance

Both companies have seen share price declines in 2026 so far, but REA has held up a bit better.

REA's share price history (18 August–17 September 2026) shows a drop from $178.62 (on 18 August) to $159.22 (17 September): a fall of about 11%.

CAR Group's price history (same 18 August–17 September 2026 period) starts at $29.10 and ends at $23.97, a decline of roughly 18%.

So over this snapshot, both have tracked down with the broader market, but CAR Group has seen a steeper fall.

Which is the better buy?

For income investors, I'm leaning towards CAR Group. While REA Group's fully franked dividends are gold for some—especially for retirees or those keen to maximise franked income—the yield is modest at 1.88%. With CAR now offering a 3.58% yield (albeit with only partial franking), the gross cash return is much stronger.

That said, if you place a high value on franking credits, or you want the perceived safety that comes with REA's virtual monopoly on real estate listings (and you don't require much income), REA is hard to beat in terms of stability and after-tax benefit.

But if income is truly the goal and you can live with 30–50% franking, my pick would be CAR Group for its significantly higher yield and solid record of dividend growth.

The post REA Group vs CAR Group: Which is best for income investors? appeared first on The Motley Fool Australia.

It is an online real estate advertising company that provides property and property-related services on websites and mobile apps across Australia, Asia, and North America.

Threats of AI, elevated property prices, and changing consumer behaviour have all raised questions about the company's long-term growth prospects. 

In the last 12 months, REA Group shares have experienced volatility and ultimately remain down 30% in that span. 

Valuations from experts have fluctuated over this period, as the company's strong market position and exposure to Australia's property market continue to attract investor attention.

However, a new report from Bell Potter has suggested there may be better opportunities elsewhere for investors. 

Sell recommendation for REA Group shares

In Thursday's report, the team at Bell Potter reiterated its sell recommendation. 

The broker said ongoing low clearance rates and lengthening days on market for properties suggest an ongoing mismatch in price expectations between buyers and sellers. 

Additionally, further declines in house prices are expected over the coming months. 

Days on market has increased by 8 days versus this time last year, while national auction data from SQM suggests that cumulative auctions are down -24% for the FY-to-date versus the comparable period last year; the cumulative number of houses sold via auction is significantly worse at -50% YoY.

Little to no upside over the next 12 months 

Along with the sell rating, Bell Potter has a price target of $148 on REA Group shares. 

From current levels, this indicates a downside of 7%. 

We retain our Sell recommendation. Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.

What are other experts saying?

Valuations appear mixed on REA Group shares. 

Last month, Tom Fairchild from Lazarus Capital Partners had a buy rating on this ASX 200 communications share. 

At the time, REA Group shares were trading at almost $180. 

15 analyst ratings via TradingView have an average 12-month price target of almost $200 on REA Group shares. 

This indicates a 40% upside from current levels. 

However, it is worth noting that individual targets range from highs of $253 per share to lows of $147, underscoring the wide gap in opinions on this ASX 200 stock. 

The post Why this expert believes it's time to exit positions in REA Group shares appeared first on The Motley Fool Australia.

Well, to narrow things down, let's see what analysts are saying about the popular shares listed below.

Are they buys, holds, or sells? Here's what they are recommending:

James Hardie Industries PLC (ASX: JHX)

Morgans is feeling more positive about this building products company following the release of its investor day update.

In response, the broker has upgraded James Hardie shares to an accumulate rating with a trimmed price target of $43.00. It said:

JHX held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026. The day centred on the "built to outperform, resilient by design" tagline, as management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. 

The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale. The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

Ramelius Resources Ltd (ASX: RMS)

Another ASX share that Morgans is positive on is gold miner Ramelius Resources.

It is feeling upbeat on its outlook and has put a buy rating and $4.74 price target on its shares. It commented:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing. Following an analyst change, we retain our BUY recommendation with a revised price target of A$4.74 per share.

REA Group Ltd (ASX: REA)

Finally, Bell Potter remains bearish on this property listings company and has named its shares as a sell this week with a $148.00 price target.

The broker has concerns that listings volumes could fall well short of consensus estimates due to it operating in a challenging environment at present. Bell Potter explains:

We retain our Sell recommendation. Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.

The post Buy, hold, sell: James Hardie, REA Group, and Ramelius shares appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for another good session on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.6% higher this morning. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1.15%, and the Nasdaq jumped 1.7%.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.15% to US$101.26 a barrel and the Brent crude oil price is down 1.55% to US$104.19 a barrel. This reflects more crude oil being brought to market.

Sell REA shares

The REA Group Ltd (ASX: REA) share price could be overvalued according to analysts at Bell Potter. This morning, the broker has retained its sell rating on the property listings company's shares with an improved price target of $148.00. It said: "We retain our Sell recommendation. Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis."

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.15% to US$4,380.8 an ounce. The precious metal has come under pressure this week after US interest rates were increased.

James Hardie shares upgraded

Morgans was pleased with the investor update from James Hardie Industries PLC (ASX: JHX) this week. In response, the broker has upgraded the building materials company's shares to an accumulate rating with a $43.00 price target. It said: "…management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale."

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

For a genuine buy-and-hold investment, I want a strong business today with plenty of opportunity still ahead.

These three could be best buys for me.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX share that has already grown enormously, but I still think its best years could be ahead.

The healthcare technology company develops the Visage imaging platform used by hospitals and radiology groups to view and manage medical images.

Despite winning contracts with some of the United States' largest hospital networks, management has previously estimated that Pro Medicus still holds only around 11% of the market.

That leaves a substantial number of hospitals still available to win.

There is also more to the opportunity than radiology. Pro Medicus is expanding further into cardiology and broader enterprise imaging, potentially allowing its software to become more deeply embedded across hospital systems.

Winning major healthcare customers can take time, but once the platform becomes central to clinical workflows, I think those relationships can be extremely valuable.

That makes Pro Medicus the type of business I would be comfortable holding through short-term share price volatility.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne could also be one of the best ASX shares for a long holding period.

Its enterprise software is used by councils, universities, government organisations, and other large institutions to manage important day-to-day operations.

These customers generally do not change core software systems lightly. Moving financial, payroll, property, or other critical processes to another provider can be expensive and disruptive. That helps TechnologyOne build long customer relationships and recurring revenue.

I also like that the business still has opportunities outside Australia. Its expansion in the United Kingdom gives TechnologyOne another sizeable market to pursue, while continued investment in cloud software and artificial intelligence could increase the value of its products for existing customers.

Overall, I think TechnologyOne has many of the qualities I want from an ASX share I would own for a decade or longer.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be comfortable owning for the long term.

Its realestate.com.au platform has become deeply embedded in how Australians search for property, giving the company a very strong position with both buyers and sellers.

That large audience is a major advantage. Property agents want to advertise where buyers are already looking, while buyers keep returning because that is where the listings are. I think that creates a network effect that is difficult for competitors to replicate.

The Australian housing market will always move through stronger and weaker periods, so listings activity can fluctuate.

But over a long timeframe, I think REA Group's dominant position and ability to earn more from its audience give the business plenty of room to keep growing.

Foolish takeaway

I would not necessarily expect these ASX shares to outperform every year.

What I like is that each company has a strong position today and a clear opportunity to become much larger over the next decade.

If I could buy Pro Medicus, TechnologyOne, and REA Group at sensible valuations, I would be happy to hold them for years and give those growth stories time to develop.

The post Why I think these are the best ASX shares to buy and hold appeared first on The Motley Fool Australia.

Each ASX 50 share has faced different challenges, but with brokers still seeing substantial upside in several names, investors may be wondering whether the sell-offs have gone too far.

Xero Ltd (ASX: XRO)

The Xero share price has taken a beating, but the business itself continues to grow at a healthy pace. This ASX 50 share delivered FY26 operating revenue of NZ$2.75 billion, up 31%, while annualised monthly recurring revenue jumped 37% to NZ$3.27 billion.

Xero added 506,000 customers during the year, taking its global base to 4.92 million. Management expects another strong year, with FY27 revenue guidance of NZ$3.62 billion to NZ$3.73 billion, implying around 30% growth at the midpoint.

There also appears to be plenty of runway, with Xero previously estimating a total addressable market of around 100 million small and medium-sized businesses.

Brokers remain divided. Citi has a buy rating and $113.60 target, while Morgan Stanley sees $130 and UBS $127. Ord Minnett and Morgans have targets of $110 and $111 respectively. RBC Capital and Jefferies are more cautious, with targets of $85 and $77.

WiseTech Global Ltd (ASX: WTC)

Few ASX 50 shares have experienced a more dramatic rollercoaster than WiseTech. Its shares have traded as high as $135 and as low as $28.76, representing an almost 80% peak-to-trough decline.

At around $37.57 at the time of writing, the stock remains close to its lows after falling approximately 60% over 12 months.

Yet the underlying business continues to grow. WiseTech reported a 46% increase in EBITDA to US$558.4 million for FY26, broadly within its guidance range.

Brokers appear considerably more optimistic than the share price suggests. Macquarie has an outperform rating and $48.20 target, while Citi and UBS have buy ratings with targets of $58.75 and $56 respectively.

Pro Medicus Ltd (ASX: PME)

AI concerns helped hammer this ASX 50 share, but the underlying numbers remain impressive.

Pro Medicus delivered FY26 revenue growth of 22.9% to $261.7 million, while underlying EBIT and NPAT rose 24.4% and 24.1% respectively.

Its Visage imaging software is already used by major healthcare systems across North America, yet management estimates it has captured only around 11% of the US market.

Citi has a buy rating and $225 target, implying around 34% upside. Barrenjoey has a buy recommendation with a $210 target, while JPMorgan is more cautious with a hold rating and $211 target.

REA Group Ltd (ASX: REA)

REA Group has also been under pressure, with this ASX 50 share trading around $168, well below its 52-week high of $242.81.

FY26 revenue increased 7% to $1.79 billion, although net profit fell 19%, partly due to an impairment relating to REA India.

The bigger concern is FY27, with REA warning that new national buy listings could be flat to down by low single digits.

Still, several brokers see value. Morgan Stanley has a $230 target, which points to a 37% upside. This is followed by Ord Minnett at $225 and Morgans at $203. RBC, Jefferies and UBS have targets ranging from $177 to $197.

Macquarie is more cautious at $170, while Bell Potter has a sell rating and $147 target. This suggests a potential loss of 12% at the current share price level.

The post These ASX 50 shares have lost up to 60%. Is the sell-off overdone? appeared first on The Motley Fool Australia.

It is about putting together a portfolio that can keep growing even when individual companies disappoint, markets fall, or the economy changes.

That sounds simple enough, but there is a big difference between owning a collection of shares and owning a portfolio with a clear purpose.

Here is how I would approach it.

Build around your best long-term ideas

I would start with the companies I would be most comfortable owning for the next five to ten years.

These should be businesses with strong market positions, healthy balance sheets, and opportunities to keep growing earnings.

Examples could include companies such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wesfarmers Ltd (ASX: WES).

They operate in different industries, but each has qualities that could allow it to become more valuable over time.

This is where a large part of the ASX share portfolio's wealth creation can come from.

Give growth shares room to compound

A winning portfolio should probably have some exposure to faster-growing businesses as well.

Technology companies such as Xero Ltd (ASX: XRO), Life360 Inc (ASX: 360), and HUB24 Ltd (ASX: HUB) operate in markets where there is still considerable room to expand.

These shares can be more volatile, and valuations can move around quickly.

But if earnings grow strongly for many years, the eventual value of the business can look very different from where it started.

The important thing is giving successful investments enough time.

Selling a great company simply because its share price has already risen can sometimes cut short the most valuable part of the compounding process.

Do not let one idea control the portfolio

Conviction is useful, but concentration can become dangerous.

Even excellent businesses can run into unexpected problems.

I would therefore spread investments across different industries and earnings drivers rather than allowing one company or sector to dominate the portfolio.

Australian investors should also think beyond the local market.

ASX exchange traded funds (ETFs) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or iShares S&P 500 ETF (ASX: IVV) can provide global exposure alongside individual Australian shares.

Pay attention to price

Quality alone is not enough. A fantastic company bought at an extreme valuation can still deliver disappointing returns.

I would rather keep a company on my watchlist than convince myself I have to buy it immediately.

There will usually be another opportunity. Results disappoint, markets correct, sentiment changes, and shares fall out of favour. Having cash ready when a quality business becomes more reasonably priced can be valuable.

Keep adding to the portfolio

The portfolio itself is only one part of the equation. Regular contributions can make an enormous difference over a long period.

Adding money each month or quarter means investors continue buying through strong markets, weak markets, recessions, recoveries, and everything in between.

Over decades, the combination of new contributions, rising company earnings, reinvested dividends, and compounding can become extremely powerful.

For example, $1,000 a month into an ASX share portfolio would turn into approximately $725,000 in 20 years with an average 10% annual return.

A winning ASX share portfolio does not need every decision to be right. It needs enough good businesses, sensible diversification, reasonable purchase prices, and plenty of time to compound.

The post How to build a winning ASX share portfolio and create wealth appeared first on The Motley Fool Australia.

The REA share price is down another 3.06% to $164.59 today, extending its 2026 decline to around 10%.

It's also a long way from the 52-week high of $242.81. From that level, the stock has fallen by around 32%, despite a strong bounce from its June low of $131.07.

That recovery carried REA shares back above $180 in August, but some of those gains have since been given back.

With the valuation lower and brokers still seeing upside, investors may be wondering whether REA shares now look attractive again.

Citi becomes more cautious

One broker that isn't getting too excited about the lower share price is Citi.

According to The Australian, analyst Siraj Ahmed has downgraded REA shares to neutral after their recent rebound, although he lifted his price target by 4% to $191.30.

That still sits around 16% above the current share price.

Citi's concern is that some of the value that appeared after the June sell-off has already disappeared. REA shares rallied more than 30% from their low, pushing the valuation higher again.

The broker is also worried about property listings, particularly with interest rates still a risk.

REA expects national buy listings to be flat to down by a low single-digit percentage in FY27. Citi is more bearish and is forecasting a decline of around 5%.

And with the stock trading at 30 times forecast earnings, Citi thinks there's less room for things to go wrong if listings keep falling.

What are other brokers saying?

The wider broker view on REA shares is still fairly mixed.

According to TipRanks, 10 recent analyst ratings give the stock an average 12-month price target of $191.32.

That suggests potential upside of around 16% from the current share price.

The consensus includes 4 buy ratings, 5 holds, and 1 sell.

Morgan Stanley is the most bullish with a $230 target, while Ord Minnett is close behind at $225.

Morgans has a $203 target, RBC Capital sits at $197, and Jefferies is at $195.

UBS is more reserved with a $177 target, while Macquarie is only slightly above the current share price at $170.

However, Bell Potter is the most bearish of the group, with a sell rating and $147 price target.

Are REA shares cheap yet?

REA shares are certainly a lot cheaper than they were, but that doesn't automatically make them a bargain.

The business is still growing. FY26 core net profit rose 15% to $650.5 million, while the full-year dividend increased 20% to $2.97 per share.

But the broker targets show there is still plenty of debate over what investors should be willing to pay.

A lot will depend on whether REA can keep lifting revenue and margins if property listings weaken further.

The post This ASX 200 stock has fallen 32% from its high. Is it finally cheap? appeared first on The Motley Fool Australia.

Cotality's national index dropped 0.9% in August, which leaves values 3.6% below their March peak.

REA Group Ltd (ASX: REA) shares fell 4.21% on Monday as the data landed, whereas Stockland Corp Ltd (ASX: SGP) climbed 2.29% on the same day.

Understanding that divergence will be key in determining how ASX investors should position themselves.

Why falling home values matter for ASX investors

The downturn has stopped being a Sydney story.

Ninety-three per cent of capital city suburbs recorded a decline over winter, and every capital except Darwin went backwards across the three months.

Sydney led the falls with a 1.4% drop in August and now lies 7.1% below its February peak.

Melbourne and Canberra each fell 1.1%, while Adelaide and Perth were down 0.8%.

Sales volumes are tracking 15.5% below the same period last year.

Cotality research director Tim Lawless summed up the change:

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

For investors, the core question is whether a company earns its money from prices, from volumes, or from the loans behind them.

REA Group has the most direct exposure

REA Group is paid by agents to list properties.

When sales volumes fall 15.5%, that quickly becomes a revenue problems.

REA shares closed Monday at $169.78 and are down 30.19% over the past twelve months.

FY26 was still a strong year for the business.

Revenue rose 7% to $1,793 million and net profit after tax climbed 15% to $650 million, with the operating EBITDA margin expanding three percentage points to 61%.

The company lifted its dividend 20% to $2.97 per share.

The catch is the outlook, where management expects national buy listings to be flat to down low single digits in FY27.

Stockland is building into weaker home values

Stockland sells new houses and land, which is a different business entirely.

The company's FY26 result delivered funds from operations of $892 million, up 10.4%, with FFO per security rising 9.1% to 36.9 cents.

Masterplanned community settlements jumped 30% to 8,902 lots and land lease settlements rose 48% to 777 homes.

Gearing improved to 22.7% from 25.2%.

FY27 guidance is for FFO per security of 38.0 to 39.0 cents.

At around $4.46 the shares trade on a price-to-earnings ratio of 10.51 and yield 5.85%, having fallen 28.64% across the year.

Affordability improves as prices fall, which is precisely why a residential developer can rally on a weak housing print.

Commonwealth Bank owns the mortgages

Commonwealth Bank of Australia (ASX: CBA) is the largest mortgage lender in the country.

The company's FY26 result produced cash net profit after tax of $10,982 million, up 7%, on a net interest margin of 2.05%.

Home loan arrears at 90 days or more were at 0.73%, and the loan impairment expense rose 9% to $788 million.

Chief executive Matt Comyn noted that housing activity had softened from a high base while application volumes appeared to have stabilised in recent weeks.

Falling home values do not create losses on their own. But they matter when borrowers cannot pay and the security is worth less than the loan.

Arrears of 0.73% are elevated and alarming, yet CBA still managed to return $5.05 per share fully franked to shareholders.

Foolish takeaway

The three companies are at very different points of the same cycle.

REA Group looks the most exposed, because listing volumes are already falling and the multiple still assumes growth.

Stockland arguably benefits, since cheaper land and better affordability feed straight into its development pipeline.

CBA sits somewhere in between, with a slower loan book but no real credit problem yet.

If home values keep sliding through spring, I would expect the gap between the three stocks to widen.

The post Home values just fell for a fifth straight month. Which ASX shares are most exposed? appeared first on The Motley Fool Australia.

There is nothing wrong with that. But not everyone wants investing to become a second job.

The good news is that a strong ASX portfolio should not need constant attention. In fact, some of the best portfolios are built to be left alone most of the time.

Start with investments that do the work for you

The easiest way to reduce the need for constant decision-making is to own investments that already spread money across lots of companies.

ASX exchange traded funds (ETFs) can help here.

Funds such as the Vanguard MSCI Index International Shares ETF (ASX: VGS), iShares S&P 500 ETF (ASX: IVV), and the Vanguard Australian Shares Index ETF (ASX: VAS) give investors exposure to large collections of businesses in one trade.

That means an investor does not have to know which company will report the best result next month.

They are backing the long-term progress of markets rather than relying on one perfect stock pick.

Choose businesses that can compound quietly

Individual ASX shares can still have a place in a low-maintenance portfolio. But the type of company is important.

I would focus on businesses with strong market positions, repeat customers, pricing power, and long-term growth opportunities.

These are companies that can become more valuable over time without needing everything to go right each quarter.

Examples could include ResMed Inc. (ASX: RMD), Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), Wesfarmers Ltd (ASX: WES), and TechnologyOne Ltd (ASX: TNE).

They will still have weaker periods. No company avoids those. But if the long-term investment case remains intact, investors may not need to react to every share price move.

Avoid shares that require too much watching

Some ASX shares need constant monitoring. That might be because they carry too much debt, rely on commodity prices, need regular capital raisings, or have business models that are still unproven.

These shares can work out well, but they often demand more attention.

For investors who want a portfolio they can leave alone for longer periods, it may be better to avoid making these positions too large.

A portfolio becomes easier to live with when it is not filled with companies that can change dramatically from one update to the next.

Let dividends help

Dividends can also make a portfolio feel more productive.

Income from shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), Woolworths Group Ltd (ASX: WOW), and Charter Hall Long WALE REIT (ASX: CLW) can provide cash flow while investors wait.

That cash can be taken as income or reinvested to buy more shares.

Over time, reinvested dividends can quietly add to returns without the investor needing to do much at all.

Set a review schedule

A low-maintenance portfolio does not mean ignoring everything forever. It just means checking it sensibly.

For many investors, a proper review every six or 12 months may be enough. That review can ask a few simple questions.

Is the portfolio still diversified? Are the main holdings still doing what they were bought to do? Has any position become too large? Is there enough exposure to global shares, income, and long-term growth?

That is very different from watching every daily move. The aim is not to build a portfolio that never changes. It is to build one that does not need constant fixing.

For investors who want to build wealth without living inside their brokerage account, that could be a very good place to start.

The post How to build an ASX portfolio you do not need to check every day appeared first on The Motley Fool Australia.

I think the three ASX shares below have strong positions in their markets and clear ways to keep growing for many years.

Here is why they would be on my long-term buy list.

REA Group Ltd (ASX: REA)

REA Group owns one of the most powerful digital platforms in Australia through realestate.com.au.

People looking to buy, sell, or rent property naturally want to use the website with the most listings. At the same time, property agents want to advertise where the largest audience is searching.

I think that gives REA Group a strong competitive position that would be difficult to replicate.

There is also more to the opportunity than simply attracting property listings.

REA Group can keep improving the tools available to buyers, sellers, and agents, including property data, personalised recommendations, and artificial intelligence. It can also build closer relationships with people as they move through the property journey, including when they need financing.

Australia should continue adding people and homes over the long term, giving REA Group an expanding market to serve.

For me, the combination of a powerful brand, enormous audience, and opportunities to make the platform more valuable makes REA Group a business I would be comfortable owning for many years.

SiteMinder Ltd (ASX: SDR)

Another ASX share I would buy and hold is SiteMinder. It gives hotels the technology they need to sell rooms and manage their presence across online booking channels.

I like the long-term opportunity because the global accommodation market remains highly fragmented.

Large hotel chains may have substantial technology budgets, but there are countless independent hotels and smaller accommodation providers that still need better ways to manage pricing, bookings, distribution, and guest relationships.

SiteMinder can bring many of those functions together through one platform.

I also like that the company has been expanding what its technology can do. Products such as Channels Plus and Dynamic Revenue Plus are designed to help hotels reach more travellers and make better pricing decisions.

Artificial intelligence could make those tools even more valuable by helping hotel operators automate more of the work involved in managing rooms and responding to changing demand.

If SiteMinder can keep adding properties while increasing the amount of technology each customer uses, I think the business could have a long growth runway ahead.

ResMed Inc (ASX: RMD)

ResMed is an ASX share operating in an area of healthcare where I think demand could continue expanding for decades.

The company develops devices and masks used to treat sleep apnoea, a condition affecting a huge number of people worldwide.

What I like is that the relationship with a patient can continue well beyond the initial sale of a device.

Masks and other components need replacing, while ResMed's digital platforms can help patients and healthcare providers manage treatment over time.

That creates an opportunity to keep serving existing patients while also reaching people who have yet to be diagnosed or treated.

Greater awareness of sleep health could help with that. Improvements in diagnosis and easier access to treatment could bring more people into the market over the years ahead.

Foolish takeaway

The businesses I most enjoy owning are those where I can see several ways for the company to be stronger five or 10 years from now.

For me, REA Group, SiteMinder, and ResMed are three shares I would be happy to hold patiently for the long term.

The post 3 excellent ASX shares I would buy and hold for 10 years or more appeared first on The Motley Fool Australia.

The companies I am most interested in are those that can keep increasing revenue and earnings for many years while reinvesting in even larger opportunities.

When that process continues for long enough, the results can be substantial.

Look for businesses with room to grow

A company can already be successful and still have a long way to go.

TechnologyOne Ltd (ASX: TNE) is a good example. Its enterprise software is used by councils, universities, government organisations, and other large institutions.

Once an organisation builds important processes around a software platform, changing providers can become time-consuming and disruptive. That can help TechnologyOne retain customers while gradually expanding the services they use.

The tech company also has opportunities to keep growing overseas, particularly in the UK.

For me, that is the type of growth story worth looking for. TechnologyOne does not need to invent an entirely new business every few years. It can keep improving its existing software, add customers, and expand into larger markets.

Give compounding time to work

Growth investing becomes particularly powerful when a company can reinvest its profits and keep generating attractive returns from that spending.

Hub24 Ltd (ASX: HUB) has been doing this for years as it expands its investment and superannuation platform.

Australia's pool of retirement savings should keep growing over the decades ahead, while financial advisers increasingly rely on modern platforms to manage client portfolios.

If Hub24 continues winning advisers and attracting more money onto its platform, the business can become more valuable without needing to reinvent its core proposition.

This is where patience becomes important.

A strong company can have an excellent year without creating life-changing wealth for shareholders. The bigger opportunity comes when it repeats that growth over five, 10, or even 20 years.

Earnings can compound, the business can become considerably larger, and shareholders participate in that expansion.

I would focus on quality as well as growth

Rapid growth alone would not be enough for me.

I want to understand why a company is growing and whether it has a realistic chance of continuing.

REA Group Ltd (ASX: REA) is the type of business I find attractive for that reason.

Realestate.com.au has built an enormous audience, which encourages property agents to list their homes on the platform. Those listings then give buyers and renters another reason to keep visiting.

REA Group can build on that position by offering better tools, property data, artificial intelligence features, and services connected to financing and the broader property journey.

I think businesses with strong competitive positions have a better chance of protecting the profits needed to keep investing for the future.

The share price will not always cooperate

Even great growth shares can fall sharply.

Expectations can become too high, economic conditions can change, or investors can simply lose enthusiasm for a sector.

I would expect volatility rather than treating it as a sign that a long-term strategy has failed.

That makes diversification important as well. I would rather own several high-quality growth businesses than depend on one company getting everything right.

It also means I would be careful about chasing a share simply because its price has been rising. The business still needs to justify my confidence in its future.

Foolish takeaway

I think ASX growth shares can play an important role in building serious long-term wealth.

The businesses I want to own have clear opportunities to become larger, strong competitive positions, and the ability to reinvest successfully for years.

Finding those companies is only part of the job. The other part is giving them enough time to compound.

If I can own a collection of strong growth businesses and resist the temptation to constantly interfere, I think that can be a powerful approach to growing wealth over the long term.

The post How I'd use ASX growth shares to build long-term wealth appeared first on The Motley Fool Australia.

As the earnings season continues, more companies are announcing their next dividends.

We'll help you keep track of ex-dividend dates with an article every Friday over the next two months.

Here are the ASX 200 shares going ex-dividend next week.

ASX shares with ex-dividend dates ahead

Insurance Australia Group Ltd (ASX: IAG)

This ASX 200 financial share will pay an 80% franked dividend of 20 cents per share on 28 September.

IAG shares go ex-dividend on Monday, 24 August.

QBE Insurance Ltd (ASX: QBE)

QBE will pay a 30% franked dividend of 33 cents per share on 2 October.

The ex-dividend date is Monday, 24 August.

Santos Ltd (ASX: STO)

This ASX 200 energy share will pay an unfranked dividend of 11.6 US cents per share on 23 September.

Santos shares go ex-dividend on Monday, 24 August.

Amotiv Ltd (ASX: AOV)

This ASX 200 retail stock will pay a 100% franked dividend of 23 cents per share on 15 September.

Amotiv shares go ex-dividend on Tuesday, 25 August.

Deterra Royalties Ltd (ASX: DRR)

This ASX 200 materials share will pay a 100% franked dividend of 10.8 cents per share on 22 September.

The ex-dividend date is Tuesday, 25 August.

AGL Energy Ltd (ASX: AGL)

This ASX 200 utilities stock will pay a 100% franked dividend of 26 cents per share on 24 September.

AGL shares go ex-dividend on Tuesday, 25 August.

Challenger Ltd (ASX: CGF)

This ASX 200 financial stock will pay a fully-franked dividend of 17.5 cents per share on 17 September.

Challenger shares go ex-dividend on Tuesday, 25 August.

Telstra Group Ltd (ASX: TLS)

This ASX 200 telco will pay a 90% franked dividend of 10.5 cents per share on 24 September.

The ex-dividend date is Wednesday, 26 August.

Lottery Corporation Ltd (ASX: TLC)

This ASX 200 consumer discretionary share will pay a 100% franked dividend of 8.5 cents per share on 24 September.

Lottery Corp shares go ex-dividend on Wednesday, 26 August.

JB Hi-Fi Ltd (ASX: JBH)

This ASX 200 retail share will pay a 100% franked dividend of $1.27 per share on 11 September.

JB Hi-Fi shares go ex-dividend on Thursday, 27 August.

SRG Global Ltd (ASX: SRG)

This ASX 200 industrial stock will pay a 100% franked dividend of 4 cents per share on 11 September.

The ex-dividend date is Thursday, 27 August.

Ebos Group Ltd (ASX: EBO)

This ASX 200 healthcare share will pay a 97% franked dividend of 63.7 NZD cents per share on 18 September.

Ebos shares go ex-dividend on Thursday, 27 August.

REA Group Ltd (ASX: REA)

This ASX 200 communications share will pay a fully-franked dividend of $1.73 per share on 11 September.

The ex-dividend date is Thursday, 27 August.

Beach Energy Ltd (ASX: BPT)

This ASX 200 energy stock will pay a fully-franked dividend of 2 cents per share on 30 September.

The ex-dividend date is Friday, 28 August.

Orora Ltd (ASX: ORA)

This ASX 200 materials stock will pay an unfranked dividend of 4 cents per share on 6 October.

The ex-dividend date is Friday, 28 August.

Iress Ltd (ASX: IRE)

This ASX 200 tech stock will pay a 100% franked dividend of 14 cents per share on 28 September.

The ex-dividend date is Friday, 28 August.

The post 16 ASX 200 shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Among the 11 ASX 200 market sectors today, healthcare is screaming higher, up 7.1%.

This follows earnings releases from sector heavyweights CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and Pro Medicus Ltd (ASX: PME).

Reliance Worldwide Corp Ltd (ASX: RWC) shares are the fastest risers of the ASX 200 today.

The Reliance share price is up 25% to $4.50 after a takeover offer for $4.75 per share.

Meanwhile on The Bull this week, two experts share their views on three ASX 200 shares.

Let's take a look.

REA Group Ltd (ASX: REA)

The REA share price is $179.56, up 1.2% today and down 31% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a buy rating on this ASX 200 communications share. 

He said: 

Revenue from core operations of $1.793 billion in full year 2026 was up 7 per cent on the prior corresponding period.

Net profit after tax from core operations of $650 million was up 15 per cent. Earnings per share of $4.93 was up 15 per cent.

The final fully franked dividend of $1.73 was up 25 per cent.

Investors responded positively after the full year result was released on August 6.

But we believe the company still has ample room to improve its performance from here.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $18.46, down 1.3% today and down 14% over 12 months. 

Andrew Wielandt from DP Wealth Advisory has a hold rating on this ASX 200 financial share.

Wielandt said: 

Suncorp provides insurance products and services. Higher interest rates and bond yields can be a tail wind for the company's investment portfolio.

Gross written premiums of $15.407 billion were up 2.7 per cent in full year 2026 when compared to the prior corresponding period. Cash earnings of $1.042 billion were down from $1.452 billion in 2025.

An on-market share buy-back of up to $250 million is planned for full year 2027.

All insurance companies are challenged by appropriately pricing risk in a rapidly evolving climate change environment.

It remains our long term concern, so we retain a hold recommendation.

Suncorp shares began trading ex-dividend yesterday.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $22.45, down 3.2% today and up 23% over 12 months. 

Fairchild has a sell rating on this ASX 200 gold share. 

He said: 

The company announced total gold sales of 1.543 million ounces for full year 2026, which was above revised group guidance of 1.5 million ounces.

NST disappointed investors after downgrading production guidance twice in fiscal year 2026 following weaker than expected operational performance.

The shares have fallen from $31.73 on March 2 to trade at $23.28 on August 13.

The company's final investment decision regarding the Hemi project is targeted for late fiscal year 2027. 

In our view, other gold companies appeal more at this stage of the cycle.

Northern Star will release its full-year FY26 report on Thursday.

The post Buy, hold, sell: REA, Northern Star Resources, Suncorp shares appeared first on The Motley Fool Australia.

Of course, we cannot know which ASX shares Buffett would actually buy. He may look at the Australian market very differently from me, and price would also play a major role in any investment decision.

What we can do is look at the types of businesses he has historically favoured and ask which ASX shares appear to share some of those characteristics.

Here are three that stand out to me.

Wesfarmers Ltd (ASX: WES)

One trait I associate strongly with Buffett is a preference for businesses that are relatively easy to understand.

Wesfarmers certainly fits that description in my opinion.

Its portfolio includes consumer businesses such as Bunnings, Kmart, and Officeworks, which sell products millions of Australians regularly buy. These are established brands with large customer bases and strong positions in their respective markets.

I think Bunnings is particularly interesting from a Buffett-style perspective. Its scale, brand recognition, and store network would be extremely difficult for a new competitor to replicate.

Wesfarmers also has a long history of allocating capital across different businesses. That is another characteristic I would look for when trying to identify a company Buffett might appreciate. Strong management teams can create significant value when they have the discipline to invest heavily in attractive opportunities while avoiding poor ones.

The price still has to make sense, but I think Wesfarmers has many of the business qualities I would expect a Buffett-style investor to value.

REA Group Ltd (ASX: REA)

Buffett has often invested in companies with powerful competitive advantages.

REA Group is one ASX share I think fits that profile particularly well.

Its realestate.com.au platform has become an important part of the Australian property market. Buyers naturally want to search where the largest number of properties are listed, while sellers and real estate agents want to advertise where the largest audience is looking.

That creates a powerful network effect. As more buyers use the platform, it becomes more valuable to advertisers. That in turn can attract more listings, which helps keep buyers coming back.

Businesses with this type of competitive advantage can potentially protect their market position for a very long time.

REA Group also benefits from a relatively capital-light digital business model, meaning growth does not necessarily require huge spending on physical assets.

For me, those qualities make it the kind of ASX business that deserves a closer look through a Buffett-style lens.

CSL Ltd (ASX: CSL)

Another Buffett characteristic I would look for is a business with a sustainable leadership position in an industry where replacing an established operator would be difficult.

CSL fits that description for me. The healthcare company has spent decades building its plasma collection network, manufacturing capabilities, scientific expertise, and relationships across global markets.

Those assets cannot simply be recreated overnight.

Demand for many of CSL's therapies is also connected to serious medical needs, giving the business exposure to healthcare demand that can persist through different economic environments.

There is also potential for long-term growth as the company expands production, develops new therapies, and reaches more patients around the world.

CSL is more complicated than some classic Buffett investments, but I think its competitive position, global scale, and long-term focus give it several qualities he has historically looked for in businesses.

Foolish takeaway

Trying to guess exactly what Warren Buffett would buy is unlikely to get investors very far.

I think the more valuable exercise is studying the qualities behind his investments.

Strong competitive advantages, understandable business models, capable management, and the ability to generate attractive returns over many years are all characteristics worth looking for.

Wesfarmers, REA Group, and CSL each appear to tick several of those boxes in my view.

The post How to find ASX shares that Warren Buffett might buy appeared first on The Motley Fool Australia.

Then you may want to have a look into REA Group Ltd (ASX: REA).

That's according to Lazarus Capital Partners' Tom Fairchild, who recently issued a buy recommendation on the online property listings company (courtesy of The Bull).

Less than two months ago, on 23 June, REA shares ended the day at a one year closing low of $131.52. In morning trade today, shares in the ASX 200 dividend stock are changing hands for $176.87 apiece.

That sees the REA share price up 34.5% since those June lows. While the REA share price remains down 32.4% since this time last year, Fairchild believes the past two months' rebound has further to run.

Here's why.

Should I buy this ASX 200 dividend stock today?

"REA is a multi-national digital advertising group specialising in property," Fairchild said.

Citing the first reason he's bullish on the ASX 200 dividend stock, he noted:

Revenue from core operations of $1.793 billion in full-year 2026 was up 7% on the prior corresponding period. Net profit after tax from core operations of $650 million was up 15%. Earnings per share of $4.93 was up 15%.

Then there's the promising passive income trend.

"The final fully franked dividend of $1.73 was up 25%," Fairchild said.

REA declared that final dividend on 6 August, following the release of its FY 2026 results.

If you want to score the passive income payout, you'll need to own REA shares at market close on 26 August. REA trades ex-dividend on 27 August. You can then expect to see that dividend hit your bank account on 11 September.

If we add in the interim full-franked REA dividend of $1.24 per share, paid on 18 March, the full-year payout equates to $2.97 a share, up 20% from the FY 2025 dividend payments. At the current REA share price, that sees this ASX 200 dividend stock trading at a fully-franked yield (partly trailing, party pending) of 1.7%. Taking those franking credits into account, that works out to a grossed-up yield of 2.4%.

Which bring us to the third reason Fairchild issued a buy recommendation on REA shares.

He concluded, "Investors responded positively after the full year result was released on August 6. But we believe the company still has ample room to improve its performance from here."

The post 3 reasons to buy this rebounding ASX 200 dividend stock today appeared first on The Motley Fool Australia.