In 2026, I’m focused on owning businesses with clear competitive advantages, sensible balance sheets, and management teams that have proven they can execute.
They are ASX stocks I would be comfortable holding through market volatility, with the expectation that time and fundamentals do most of the work.
With that in mind, here are my top 10 ASX stocks for 2026.
CSL Ltd (ASX: CSL)
For me, CSL remains one of the highest-quality healthcare companies on the ASX. While 2025 was a difficult year, expectations have now reset. I believe the core plasma business remains structurally strong, with scale and barriers to entry that few competitors can match. As margins recover and efficiency initiatives flow through, CSL could quietly reassert itself.
SiteMinder Ltd (ASX: SDR)
SiteMinder provides mission-critical software to the global hotel industry. Its platform is deeply embedded in hotel operations, which creates strong switching costs. While profitability is still developing, the long-term opportunity remains compelling if management continues to execute.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a globally scaled specialty retailer focused on fashion jewellery with an impressive store rollout model. I like its focus on return on capital and its ability to adapt pricing and ranges quickly. If consumer conditions stabilise in 2026, Lovisa has the potential to benefit from both operating leverage and continued international expansion.
Wesfarmers Ltd (ASX: WES)
Another ASX stock I rate highly for 2026 is Wesfarmers. It is one of the most reliable blue chips on the ASX. Its Bunnings, Kmart, Officeworks, industrial, and healthcare businesses provide diversification and resilience. I continue to rate management’s capital allocation discipline highly, which I think is a critical ingredient for long-term value creation.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre has reinvented itself multiple times over its four-decade history. I like its exposure to both leisure and corporate travel, as well as its growing presence in higher-margin segments like cruises. As global travel normalises further, this ASX stock could deliver solid earnings growth in 2026.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster provides a platform to access Australian e-commerce. Its asset-light model and strong brand position it well as online penetration in furniture continues to increase. While housing-related demand can be cyclical, I think the long-term opportunity remains significant.
DroneShield Ltd (ASX: DRO)
DroneShield operates in counter-drone technology, a market that is becoming increasingly important for defence and critical infrastructure. While revenue can be lumpy, the long-term demand drivers are structural. I’m comfortable holding through volatility given the size of the opportunity.
Xero Ltd (ASX: XRO)
Xero could be one of the highest-quality software businesses on the ASX. Its platform is deeply entrenched in small business operations, with high retention and recurring revenue. After a significant share price pullback, I think the risk-reward looks more balanced for long-term investors.
Sigma Healthcare Ltd (ASX: SIG)
Sigma Healthcare has been transformed by its merger with Chemist Warehouse. The combined business now sits at the centre of Australia’s pharmacy network, with scale across wholesale, franchising, and retail. As integration benefits flow through, I see a credible path to earnings growth.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne rounds out the list as a high-quality, lower-risk growth stock. Its enterprise software is embedded in government and large organisations, with long contracts and high switching costs. The shift to SaaS has improved its earnings quality, while its international expansion adds a long growth runway.
Foolish Takeaway
My top 10 ASX stocks for 2026 reflect how I prefer to invest. I want exposure to quality, structural growth, and businesses that can compound through different market conditions.
No stock is without risk, and not all of these will perform equally in any single year. But taken together, I believe this group offers a well-balanced mix of resilience, growth, and long-term relevance as we head through 2026.
The post Here are my top 10 ASX stocks for 2026 appeared first on The Motley Fool Australia.
Should you invest $1,000 in CSL right now?
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* Returns as of 1 Jan 2026
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More reading
- Buy, hold, sell: CBA, CSL, and DroneShield shares
- This is a great place to invest $1,000 into ASX shares right now
- 10 ASX shares I’d buy with $10,000 in 2026 to beat the market
- How to build a $250,000 ASX share portfolio starting at zero
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Grace Alvino has positions in CSL, DroneShield, Lovisa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, DroneShield, Lovisa, SiteMinder, Technology One, Temple & Webster Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has recommended CSL, Flight Centre Travel Group, Lovisa, Technology One, Temple & Webster Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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