2 quality ASX 200 stocks to buy for your 2026 portfolio

If you’re hunting for ASX 200 stocks with genuine growth legs beyond 2025, Temple & Webster Group Ltd (ASX: TPW) and Lendlease Group (ASX: LLC) are worth a hard look.

One is shaking up the online retail landscape; the other is quietly reinventing itself in property and development.

Both ASX 200 stocks suffered share price fluctuations in the past 6 months, but are potential mainstay picks in their respective sectors. Let’s have a closer look.

Temple & Webster

Temple & Webster is Australia’s online furniture and homewares retailer. The company is built on the simple idea of letting customers deck out their homes without ever stepping into a store.

It’s not just selling couches and lamps — it’s capturing market share in a category still shifting from bricks to clicks.

At the time of writing, Temple & Webster shares are up over 7% to $13.46. Taking a step back, shares are up 3.5% but have been in a steady decline over the past six months, down 38%.  

After a blistering run earlier in the year — with revenue and profit growth impressive by any measure — the stock corrected sharply in late November after a trading update showed sales growth had eased.

But beneath the short-term volatility lies a compelling story. The online retailer returned to profitability in FY 2025 following hefty losses in FY 2024. The revenue of the ASX 200 stock climbed more than 20% in FY25 while net profit significantly improved.

The business also remained debt-free with a strong cash position, and active customers hit record levels. This is an important indicator of a brand with sticky demand.

Analysts aren’t blind to this. Most brokers see Temple & Webster as a strong buy. The average 12-month price target is $20.40, which suggests a 52% upside, while the most bullish forecast points to a 108% upside.  

Lendlease

Lendlease Group has had a complicated 2025. The ASX 200 stock price lagged the broader market as investors digested a dramatic turnaround from loss to profit and a shift in strategic focus.

The company exited international construction operations to simplify the business, returned to profitability, and lifted distributions. Still, increasing macroeconomic headwinds caused its shares to slip.

But turning a corner is the name of the game in property, and Lendlease is doing exactly that. FY25 saw profit leap back into the black and distributions rise sharply, underscoring that fundamentals are improving.

Its strong development pipeline, capital recycling initiatives, and cost savings paint a business ready for the next leg of growth.

No wonder the broker community has a buy recommendation on Lendlease, with price targets indicating potential upside from current levels of $4.99 at the time of writing.

Analysts forecast an average 12-month price target of $6.45, a potential gain of almost 30%.

The post 2 quality ASX 200 stocks to buy for your 2026 portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.