NextDC Ltd (ASX: NXT) and Wesfarmers Ltd (ASX: WES) shares are popular with investors and feature in many portfolios across the country.
But which one should you buy this week if you don’t already own them?
To narrow things down, let’s see what analysts at Red Leaf Securities are saying about the two popular ASX 200 shares, courtesy of The Bull.
Here’s what they are recommending investors do with these shares right now:
NextDC shares
Red Leaf is recommending this leading data centre operator’s shares as a buy this week.
It highlights the company’s strong forward order book as a reason to buy. In addition, it notes that NextDC’s strategic partnerships and expanding data centre network leave it well-positioned to capitalise on structural tailwinds in digital transformation and infrastructure demand.
Commenting on the growing data centre operator, Red Leaf said:
Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific. Its network of certified facilities underpin critical digital infrastructure amid surging demand for cloud, artificial intelligence and high performance computing.
NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long term growth. The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.
Wesfarmers shares
Red Leaf isn’t as positive on Wesfarmers. It has named the Bunnings, Kmart, and Officeworks owner’s shares as a sell this week.
While it likes its strong network of retail brands, it is concerned about slowing consumer demand and cost pressures. In addition, it believes the company’s shares are largely fully valued now.
As a result, it has suggested that investors trim positions in Wesfarmers if they are seeking a more attractive risk-reward proposition.
Commenting on Wesfarmers and its shares, Red Leaf said:
Wesfarmers is a diversified industrial conglomerate. Major retail brands include Bunnings, Kmart, Target and Officeworks. Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment.
With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.
The post NextDC vs Wesfarmers shares: Which is a buy? appeared first on The Motley Fool Australia.
Should you invest $1,000 in NEXTDC Limited right now?
Before you buy NEXTDC Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NEXTDC Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Leading brokers name 3 ASX shares to buy today
- Why NextDC, Viva Energy and NAB shares are catching investor interest on Monday
- How many Wesfarmers shares do I need to buy for $1,000 of annual passive income?
- NextDC rally comes to a halt. Here’s what just dropped
- NextDC reports 60% increase in contracted utilisation growth and higher capex guidance
Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.