Editor’s Pick

Australia’s FY26 reporting season looked reasonably strong on the surface, with aggregate profits rising by around 11.6 per cent. But underneath the headline numbers, the recovery was much narrower – and investors were often more interested in what companies said about FY27 than the profits they had just reported.

I speak with Michael Thompson from Fear + Greed, about my 10 lessons from reporting season. We discuss why consumers are still spending but demanding value, expensive bank valuations, the limits of cost-cutting, opportunities in healthcare and why stock selection is becoming increasingly important. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Feature Article, Insightful Insights, Investing Education, Market commentary, Market Valuation, Podcast Channel, Popular.

• save this article
• POSTED IN Economics, Editor's Pick, Feature Article, Insightful Insights, Investing Education, Market commentary, Market Valuation, Podcast Channel, Popular

The popular Australian economic narrative includes the argument the consumer is weak, and we are heading towards a recession.

But Australia’s latest retail earnings results are painting a more nuanced picture. In other words, the household sector is under pressure, but the pressure is not falling evenly.

Spending on essentials remains resilient, value-conscious consumers are still buying when the offer is compelling, and well-run retailers are protecting profit through better gross margins, lower costs and tighter capital discipline.

At the same time, however, the more discretionary categories continue to show weak traffic and softer like-for-like sales. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Economics, Editor's Pick, Manufacturing, Market commentary, Market Valuation.

• save this article
• POSTED IN Companies, Consumer discretionary, Economics, Editor's Pick, Manufacturing, Market commentary, Market Valuation

FDC Consolidated Holdings Limited (ASX: FDC), a major Australian construction, fit-out, and building services company, has had an auspicious beginning as a public company after listing for $3.00 per share on the ASX on 13 July 2026. FDC reported a 13 per cent increase in revenue for the year to June 2026 to $1.69 billion, whilst underlying Earnings Before Interest and Tax (EBIT) (excluding listing costs) rose 18 per cent to $96.5 million. continue…

by David Buckland Posted in Companies, Editor's Pick, Market commentary, Market Valuation, Small Caps, Stocks We Like.

• save this article
• POSTED IN Companies, Editor's Pick, Market commentary, Market Valuation, Small Caps, Stocks We Like

SkinKandy (ASX: SK1) is Australia and New Zealand’s self-proclaimed leading specialty piercing and body jewellery retailer. Operating a ‘service-led retail model,’ the company delivers over 60 distinct types of professional body and ear piercings alongside a range of high-margin jewellery and specialised aftercare products. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Editor's Pick, Feature Article, Market commentary, Market Valuation, Small Caps, Stocks We Like.

• save this article
• POSTED IN Companies, Consumer discretionary, Editor's Pick, Feature Article, Market commentary, Market Valuation, Small Caps, Stocks We Like

Supermarket giant Coles Group released its FY26 full-year earnings this week, delivering metrics that were modestly ahead of market expectations.

Despite persistent cost-of-living pressures facing Australian households, the company reported solid execution, robust supermarket growth, and strong efficiency measures.

Initial market excitement, however, is being tempered by an elevated capital expenditure outlook and a softer-than-expected early trading update for FY27.

Consequently, investors will weigh the solid historical performance against near-term cash-flow headwinds and competitive threats. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Editor's Pick, Feature Article, Market commentary, Market Valuation, Popular.

• save this article
• POSTED IN Companies, Consumer discretionary, Editor's Pick, Feature Article, Market commentary, Market Valuation, Popular

In this video, I discuss Computershare (ASX: CPU), a global provider of share registry and shareholder administration services, and why it caught our attention during the year. I explain how the company’s decision to sell lower-returning businesses and refocus on its core operations has improved the quality of the business, while a significant fall in the share price presented a more attractive valuation. Together, these factors led us to establish a position in Computershare. continue…

by Sean Sequeira Posted in Companies, Editor's Pick, Feature Article, Financial Services, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Stocks We Like, Video Insights.

• save this article
• POSTED IN Companies, Editor's Pick, Feature Article, Financial Services, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Stocks We Like, Video Insights

Well into the penultimate quarter of the calendar year, institutional and private investors face the paradox that record infrastructure capital expenditure, particularly by AI hyperscalers, coexists with heightened geopolitical risk, sticky inflation, and an apparent structural shift to the relationship between equities and bonds.

And if institutions are changing their asset allocations to reflect these shifts, should private investors do the same? continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Feature Article, Insightful Insights, Investing Education.

• save this article
• POSTED IN Economics, Editor's Pick, Feature Article, Insightful Insights, Investing Education

In my article for The Australian, I look at why many Australians are feeling worse off despite the economy continuing to grow. Rising living costs, expensive housing and weak productivity are making it increasingly difficult for households to get ahead.

I also discuss how government decisions around housing, taxation and spending may be adding to these pressures, with younger Australians in particular facing higher rents, falling affordability and greater financial strain.

Download the article here: Labor’s economics making us all poorer continue…

by Roger Montgomery Posted in Economics, Editor's Pick, In the Press, Market commentary.

• save this article
• POSTED IN Economics, Editor's Pick, In the Press, Market commentary

There’s a consistent view of the consumer emerging from Australia’s Financial year 2026 (FY26) retail reporting season.

Households haven’t stopped spending, but they’ve become more selective, more value-conscious and increasingly willing to postpone discretionary purchases or wait for promotions and sales.

The pressure is most evident in big-ticket categories like furniture, appliances, and homewares. Nick Scali (ASX:NCK) noted a significant decline in store traffic late in the year; JB Hi-Fi (ASX:JBH) mentioned that customers are focusing their purchases around major sales; and Temple & Webster (ASX:TPW) said that while browsing continues, customers are delaying their buying decisions. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Economics, Editor's Pick, Manufacturing, Market commentary, Market Valuation.

• save this article
• POSTED IN Companies, Consumer discretionary, Economics, Editor's Pick, Manufacturing, Market commentary, Market Valuation

As I have written many times, Australia’s Household Debt to Disposable Income Ratio has jumped more than fourfold to around 180 per cent over the past 50 years, making us one of the more indebted societies of the 38 Organisation for Economic Co-operation and Development (OECD) countries.

Preeminent financial journalist of many decades, Robert Gottliebsen, recently argued a 10 per cent decline in house prices was the equivalent to around three 0.25 per cent interest rate increases for the average Australian consumer. continue…

by David Buckland Posted in Consumer discretionary, Economics, Editor's Pick, Energy / Resources.

• save this article
• POSTED IN Consumer discretionary, Economics, Editor's Pick, Energy / Resources