JB Hi-Fi Ltd (ASX: JBH) $71.65

There are some obvious pros and cons towards JBH after yesterday’s FY26 report.

Positives

• A quality retailer often regarded as the finest on the ASX. Great history of navigating tough environments
• Forecast to yield 4.7% fully franked over the next 12-months.
• JBH can maintain mid-single-digit revenue and EBIT margin growth over the next 5yrs albeit modestly.
• MM doesn’t believe the RBA will hike rates again in 2026.

Negatives

• JBH is still trading around its average historical valuation despite the challenging economic backdrop. The PE could easily contract.
• JBH is a “very owned” stock on the ASX, leaving room for steep falls as we saw yesterday.
• Sentiment is likely to remain tainted after yesterday’s disappointing report and trading session.

It’s hard not to imagine JBH trading at a discount to its historical valuation until confidence returns to the Australian consumer.

• We wouldn’t be surprised to see JBH test the $60-65 region into Christmas and for that reason, we are selling our position for now, taking an 8-10% loss across the Growth & Income Strategies.