Commonwealth Bank of Australia (ASX: CBA) shares have been fairly resilient so far this year. 

At the time of writing, the ASX bank stock is down slightly, around 0.1%, to $164.57 a piece. For the year to date, however, the shares are still around 2% higher.

CBA shares rocked higher in mid-February after the bank posted an unexpectedly-positive half-year FY26 result. The bank shares were relatively unchanged over the next few months, even in the face of higher inflation and headwinds flowing out from volatility in the Middle East. 

But then, in early-May, CBA shares tanked following a disappointing third-quarter capital update. Investors were spooked by the results at the time and rushed to sell up their shares.

The downturn was short lived though. CBA shares rebounded by the end of May and have stayed relatively consistent since.

It’s clear that CBA shares are still in favour. It’s likely CBA’s safe-haven appeal that continues to appeal to investors. In times of market chaos, investors typically flock to well-known and large-scale stocks.

The problem is that CBA shares have been widely considered overvalued for some time now. CBA is currently trading at a price-to-earnings (P/E) ratio over 26, making it one of the most expensive banking stocks globally. The bumper price tag isn’t supported by the bank’s core strength or earnings either.

Brokers are bearish, with some expecting CBA shares to fall to just $90 a piece over the next 12 months. 

I wouldn’t add CBA shares to my portfolio right now. But the good news is that there are two other ASX bank shares tipped to outperform this year.

I’d buy these ASX bank stocks instead

Analysts expect all the big four banks’ shares, and some mid-tier bank stocks, to decline throughout the second half 2026. 

Data shows that experts think CBA shares carry the most downside risk, with a downside of up to 45% at the time of writing, to $90 each.

But there are two ASX bank shares tipped to travel in the opposite direction this year.

Macquarie Group Ltd (ASX: MQG) is the only S&P/ASX 200 Index (ASX: XJO) bank share that brokers think can keep climbing higher over the next 12 months. Market Index data shows the majority of brokers have a buy rating on Macquarie shares. The $253.54 average target price implies a potential 1% upside, at the time of writing.

And then there is Judo Capital Holdings Ltd (ASX: JDO). Brokers are very bullish on the outlook for Judo Bank shares, with the majority holding a buy rating, according to Market Index data. The average $1.60 target price currently implies an impressive 80% potential upside ahead over the next 12 months.

What sets Macquarie and Judo Bank apart from the rest?

Macquarie is the fifth-largest ASX 200 bank by market capitalisation, and it is incredibly diversified. The bank does more than just banking; it also provides financial, advisory, investment, and fund management services across 34 markets globally. 

That means it has exposure to commodities trading, infrastructure deals, asset management, and capital markets across multiple regions.

Unlike CBA, Macquarie isn’t reliant on lending margins. Its diversity also means that it can remain stable, or even benefit, when markets are going through periods of volatility.

Meanwhile, Judo Bank works differently to its peers. Unlike many other banks in the sector, Judo Bank was built to focus on providing financial services and lending to small and medium enterprises (SMEs). These SMEs have annual turnovers of up to $100 million.

The bank was founded in 2016 and received its banking license in 2019. That means it’s relatively new in comparison to the majors. It was listed on the ASX in 2021.

The bank provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.

The post Forget CBA shares, I’d buy these ASX bank stocks instead appeared first on The Motley Fool Australia.

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• Judo Bank shares rise despite Morgan Stanley price target cut
• Owned CBA shares for 10 years? Here’s how much money you’ve made

Motley Fool contributor Samantha Menzies 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a big few weeks for A2 Milk Company Ltd (ASX: A2M) shares, and Tuesday is bringing more good news for investors.

At the time of writing, the A2 Milk share price is up 3.63% to $7.99.

That means the ASX infant formula stock is now up 54% over the past month.

The latest move comes after the company provided investors with an update on its China supply issues, along with better-than-expected preliminary FY26 results.

So, what changed today?

China supply issues ease

According to the release, A2 Milk said the supply chain problems that hit its China label infant milk formula business have now been mostly sorted out.

The issue came through in the fourth quarter, when the company struggled to keep enough product available.

A2 Milk said this was caused by a few things, including strong demand in the previous quarter, freight challenges, production backlogs, longer release times, and extra customs clearance requirements.

As a result, some customers moved to other brands. Others switched across to A2 Milk’s English label products.

However, things now look to be improving.

The company said product flows to distributors and retailers have materially improved across both its China label and English label products, with stock levels returning to target.

A2 Milk is now trying to win back previous China label users, while also speeding up new customer recruitment with its retail and distribution partners.

Full-year result holds up

The preliminary FY26 result also gave the market something to work with.

A2 Milk expects revenue of approximately NZ$1.97 billion, up more than 12% on FY25. That is slightly ahead of the guidance it gave in April, which was for low to mid-double-digit growth.

The company also expects its EBITDA margin to land at the high end of its 14% to 14.5% guidance range.

Reported net profit after tax (NPAT) is tipped to be slightly higher than FY25, while cash conversion is expected to be around 70%. That’s well ahead of the 50% cash conversion guidance given in April.

There was also decent growth outside the China label business. A2 Milk said English label infant formula, Other Nutritionals, and Liquid Milk all performed well and finished significantly higher than FY25.

Can the rally keep going?

A2 Milk has had plenty go its way over the past few weeks.

Last month, it received approval from China’s State Administration for Market Regulation to transition its China label infant formula product registrations to a2 branded products.

It also declared a NZ$300 million special dividend, equal to 41.362 cents per share. That dividend is due to trade ex-dividend on 8 July.

After a 54% gain in a month, A2 Milk is no longer flying under the radar.

The next major test will be the company’s audited FY26 result and FY27 outlook commentary on 17 August.

The post A2 Milk shares jump again as China worries start to ease appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

 

S&P/ASX 200 Index (ASX: XJO) shares rose by 2.77% and provided total gross returns (including dividends) of 7% in FY26.

Thirteen ASX 200 shares doubled in value — or better — over the 12 months.

Three of them were ASX 200 gold miners, which benefited from an 18% rise in the gold price last year.

Four were lithium miners, which generated turbocharged earnings amid a 278% lift in the spodumene price and a 160% rise in the carbonate price over FY26.

While healthcare was the worst-performing sector, the ASX 200’s fastest rising stock came from it and blasted 1,786% higher!

Let’s check out this group of ASX 200 double baggers for FY26.

Double-baggers of FY26

1. 4DMedical Ltd (ASX: 4DX)

This ASX healthcare share skyrocketed 1,786% in FY26 to close out the year at $4.53.

The respiratory imaging technology company gained US Food and Drug Administration (FDA) approval for its CT:VQ product in September 2025.

CT:VQ has since been deployed at several well-known academic hospitals and clinics.

One broker thinks there is more room to run for 4DMedical shares in FY27.

2. Minerals 260 Ltd (ASX: MI6)

This ASX 200 gold share ripped 508% to finish FY26 at 73 cents.

Minerals 260 is building the Bullabulling Gold Project near Kalgoorlie in Western Australia’s Eastern Goldfields region.

3. Elevra Lithium Ltd (ASX: ELV)

This ASX 200 lithium share flew 327% to $9.60 over FY26.

Elevra has a globally diversified portfolio of mines and projects across Québec, North Carolina, Ghana, and Western Australia.

4. PLS Group Ltd (ASX: PLS)

This fellow ASX lithium share leapt 275% to close out FY26 at $5.02.

The company’s flagship project is Pilgangoora, the world’s largest independent hard-rock lithium mine.

Formerly known as Pilbara Minerals, PLS Group was the best performer among the ASX 200 large-cap shares last year.

5. Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price increased 261% to close the year at $10.30.

This made Electro Optic the best-performing stock of the industrials sector in FY26.

The company specialises in defence technology, advanced weapon systems, and counter-drone solutions.

6. Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price rose 188% in FY26.

The ASX large-cap mining share finished the year at $62.07.

Value investors returned to Mineral Resources after corporate governance and financial problems crushed the stock in FY25.

Mineral Resources reported its best half-year result ever for 1H FY26. The miner reported record revenue of $3.1 billion and EBITDA of $1.2 billion due to rising lithium prices and the successful ramp-up of its Onslow iron ore project.

7. NRW Holdings Limited (ASX: NWH)

This ASX 200 industrials share soared 149% to finish the year at $7.44.

8. Liontown Ltd (ASX: LTR)

This ASX 200 lithium share rose 142% to finish the year at $1.69.

For 1H FY26, Liontown reported doubled revenue after a 70% lift in spodumene production.

In 3Q FY26, Liontown became cash flow positive and hit its 1.5Mtpa annualised underground run-rate ahead of schedule.

9. SRG Global Ltd (ASX: SRG)

This ASX 200 industrials share rose 136% to finish the year at $3.98.

10. Codan Ltd (ASX: CDA)

This ASX 200 tech share lifted 119.5% to finish the year at $44.14.

ASX 200 tech shares tanked in FY26, with only four finishing the year in the green.

11. Kingsgate Consolidated Ltd (ASX: KCN)

This ASX 200 gold share rose 119% to finish the year at $4.95.

12. Lynas Rare Earths Ltd (ASX: LYC)

This ASX 200 rare earths share increased 115% to close out the year at $18.06.

An 80% lift in the neodymium price, and restricted rare earths exports out of China helped Lynas shares grow in FY26.

13. Alkane Resources Ltd (ASX: ALK)

This ASX 200 gold share rose 92% to finish the year at $1.37.

The post 13 ASX 200 shares that doubled in value in FY26 appeared first on The Motley Fool Australia.

More reading

• Lynas Rare Earths inks $50m deal for new Malaysian magnet factory
• Sell alert! Why these experts are calling time on Endeavour and PLS shares
• 2 ASX 200 healthcare shares to buy after sector rebounds 23% in a month
• ASX 200 tech shares tanked in FY26, but there were 3 winners
• These are the 10 most shorted ASX shares

Motley Fool contributor Bronwyn Allen 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 Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.