Author: openjargon

There are a lot of options out there for investors to choose from on the Australian share market.

To narrow things down, let’s take a look at three popular options that Morgans has recently given its verdict on. Here’s what the broker is saying about them:

Light & Wonder Inc. (ASX: LNW)

Morgans thinks that this gaming technology company’s shares are good value at current levels.

In response to a strong third quarter result, the broker retained its buy rating on its shares with a $175.00 price target. It commented:

Light & Wonder’s (NDAQ/ASX: LNW) strong 3Q25 result was met with a well-deserved positive reaction, alleviating market concerns around FY25 guidance delivery with a much more achievable 4Q25 implied outlook. Given the imminent NASDAQ delisting, the timing of this beat positions the company exceptionally well heading into FY26. LNW delivered record margin expansion across all three segments, with iGaming operating leverage the standout performer, while land-based margins surprised on favourable product mix as Grover scales and premium installed base momentum continues. Our FY25-26F estimates remain largely unchanged. We rate LNW a BUY recommendation, A$175 12-month target price.

National Australia Bank Ltd (ASX: NAB)

The broker isn’t feeling as upbeat on banking giant NAB. In fact, it thinks its shares are overvalued after strong gains over the last couple of years left them trading on higher than normal multiples.

Morgans has put a sell rating and $31.46 price target on NAB’s shares. It commented:

2H25 earnings (-2% vs 1H25) missed market expectations of a flat result. While NAB has loan growth and revenue momentum heading into 1H26, it also has momentum in costs and showed signs of asset quality deterioration and tightness in regulatory capital. This is likely to see limited (if any) DPS growth and constrain capital management over coming years. We make +/-1% changes to FY26-28 forecast earnings, targeting mid-single digit earning growth over the forecast period. NAB is trading at historical extremes of key valuation metrics. The 2H25 result and earnings outlook doesn’t justify such pricing. SELL retained at current prices. Target price $31.46 (+23 cps).

Woodside Energy Group Ltd (ASX: WDS)

Finally, Woodside could be a top pick for investors looking for exposure to the energy sector according to Morgans.

It believes the energy giant is well-placed for solid growth through to 2032. As a result, it has put a buy rating and $30.50 price target on its shares. It said:

Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure. Growth to 2032 with net operating cash flow guided to ~US$9bn (+6% CAGR) with a pathway to ~50% higher dividends. Partner sell downs (Stonepeak, Williams) back-load capex and cut near-term funding by >US$5 billion. Market remains cautious on midstream Louisiana model, but it solves previous major gap in fundamentals as Pluto/NWS output declines in future years. We maintain our BUY rating and unchanged A$30.50 target price.

The post Buy, hold, sell: Light & Wonder, NAB, and Woodside shares appeared first on The Motley Fool Australia.

More reading

• CBA shares returned just 4.9% last year. Should investors look elsewhere?
• 5 things to watch on the ASX 200 on Monday
• Why Woodside shares could face short-term pressure as oil prices slide
• Which ASX shares paid the best dividends in 2025?
• ASX 200 energy sector leads the market ahead of OPEC+ meeting

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Managing a self-managed super fund (SMSF) often means striking a careful balance between growth, diversification, and long-term capital preservation.

While individual shares can play a role, exchange-traded funds (ETFs) are increasingly popular with SMSF trustees thanks to their simplicity, transparency, and low ongoing maintenance.

For those looking to strengthen their SMSF portfolio, here are three ASX ETFs that offer global exposure, quality, and long-term growth potential.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF provides an SMSF with exposure to 500 of the largest and most influential companies listed in the United States. These are businesses that dominate their industries and generate significant free cash flow year after year.

The fund includes household names such as Microsoft (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), and Walmart (NYSE: WMT), alongside innovation leaders like Nvidia (NASDAQ: NVDA) and Palantir Technologies Inc (NASDAQ: PLTR).

For a retirement-focused portfolio, this fund offers broad diversification, exposure to global innovation, and participation in the long-term growth of the US economy. And that’s all in a single trade!

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be another ASX ETF to buy for an SMSF. It is designed around a simple but powerful idea.

That idea is to invest in fairly valued companies with sustainable competitive advantages. This currently includes high-quality businesses such as Adobe (NASDAQ: ADBE), Thermo Fisher Scientific (NYSE: TMO), and Nike (NYSE: NKE). These stocks benefit from strong brand awareness, high switching costs, scale, or intellectual property that helps protect profits over time.

For SMSFs, the VanEck Morningstar Wide Moat ETF’s emphasis on economic moats and disciplined valuation makes it particularly appealing. Especially for investors who want growth exposure while managing downside risk.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF is focused on stocks that generate strong and sustainable free cash flow. Rather than chasing hype or high revenue growth alone, this ASX ETF targets businesses with proven financial strength.

Holdings include Alphabet (NASDAQ: GOOGL), Visa (NYSE: V), and Costco Wholesale (NASDAQ: COST), all of which have demonstrated an ability to convert earnings into real cash over long periods.

For SMSFs, this fund offers a blend of quality and resilience. After all, strong cash flow can support reinvestment, balance sheet strength, and shareholder returns, which are valuable characteristics for long-term retirement portfolios. It was recently recommended by analysts at Betashares.

The post 3 strong ASX ETFs to buy for your SMSF appeared first on The Motley Fool Australia.

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• Where I’d invest $10,000 in 2026 in ASX shares aiming to beat the market
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Motley Fool contributor James Mickleboro has positions in Nike and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Costco Wholesale, Microsoft, Nike, Nvidia, Palantir Technologies, Thermo Fisher Scientific, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Alphabet, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think that the start of a new year is always a good time to take a step back and think about your investment portfolio.

If I had $5,000 to invest in January, these are five ASX 300 shares I’d be comfortable backing for the long term across travel, alternative assets, wealth platforms, software, and essential infrastructure.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is one of the world’s largest travel groups, with a global footprint spanning leisure and corporate travel across Australia and New Zealand, the Americas, EMEA, and Asia. What I think makes the investment case compelling heading into the new year is how clearly management has articulated its long-term ambition.

Under its Destination 2035 strategy, Flight Centre aims to become the world’s largest and most successful corporate travel company, operating in more than 50 countries. Corporate travel is higher margin, more recurring, and structurally attractive compared to pure leisure travel. Combined with Flight Centre’s scale, global reach, increased focus on the cruise market, and reinvestment culture, this creates a powerful long-term growth opportunity.

After several volatile years for the travel sector, I believe Flight Centre enters January as a business rebuilding from a position of strength rather than speculation.

HMC Capital Ltd (ASX: HMC)

HMC Capital is a diversified alternative asset manager with exposure to real estate, private equity, energy transition, digital infrastructure, and private credit. It manages approximately $18.7 billion for institutional, high-net-worth, and retail investors.

What differentiates HMC Capital is its ability to execute large, complex transactions, which is something few Australian managers can do consistently. This execution capability has underpinned its rapid funds under management growth and strong track record of generating outsized returns.

As demand for alternative assets continues to grow globally, I see HMC Capital as a business well-positioned to benefit from long-term structural trends rather than short-term market cycles.

SiteMinder Ltd (ASX: SDR)

SiteMinder provides mission-critical software to more than 50,000 hotels globally, helping them manage bookings, pricing, and distribution across millions of rooms. As travel continues to normalise and digitisation accelerates, I believe tools like SiteMinder’s are becoming essential rather than optional.

While profitability is still maturing, the business has a strong balance sheet and a long runway for growth as it scales internationally. For January, I see SiteMinder as a higher-growth complement to more established names, one that could benefit meaningfully if its execution continues to improve.

HUB24 Ltd (ASX: HUB)

HUB24 is one of the ASX’s standouts in wealth management. Its platform sits at the centre of the adviser–client relationship, benefiting from structural tailwinds such as an ageing population, increasing superannuation complexity, and growing demand for professional advice.

The key attraction for me is operating leverage. As funds under administration grow, revenue tends to scale faster than costs, allowing margins to expand over time. HUB24 has also built a broader ecosystem of complementary technology businesses, deepening adviser relationships, and increasing switching costs.

It’s not cheap, but high-quality platforms rarely are. Pullbacks often create opportunities to accumulate businesses like this gradually.

Telstra Group Ltd (ASX: TLS)

Telstra plays an important role in Australia’s digital infrastructure. Customer needs for connectivity are becoming increasingly sophisticated, with reliability, latency, security, and uplink capacity becoming increasingly critical across various segments.

The company is investing in what appears to be a multi-year digital infrastructure super cycle, driven by surging data demand and the rise of AI-enabled services. Telstra’s ambition to be Australia’s number one connectivity provider, and to move from selling bandwidth to selling value, positions it well for this shift.

While not a high-growth stock, Telstra offers stability, cash generation, and relevance in a future where everything depends on connectivity.

The post I would invest $5,000 in these ASX 300 shares in January appeared first on The Motley Fool Australia.

More reading

• ASX travel shares to watch in 2026
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• Brokers name 3 ASX shares to buy today
• 5 worst ASX All Ords shares of 2025, and why brokers rate 4 of them a buy
• 5 fantastic ASX ETFs for beginners in 2026

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital, Hub24, and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder and Telstra Group. The Motley Fool Australia has recommended Flight Centre Travel Group, HMC Capital, and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fortescue Ltd (ASX: FMG) share price had a strong finish to 2025, rising by 35% in the last six months, as the chart below shows.

Of course, past performance is not necessarily a reliable indicator of future performance, particularly when it comes to an ASX mining share like Fortescue. It’s common for resource prices to bounce around, so it can be harder to predict what’s going to happen with a commodity company.

Let’s take a look at what experts are predicting could happen for this major miner.

Fortescue share price target

A share price target is an analyst’s projection of where they think the share price could be in 12 months following the investment call.

There are a number of analysts who have an opinion on the company. According to CMC Markets, of the 11 ratings on Fortescue, there are two buy ratings, seven hold ratings, and two sell ratings.

Of those 11 ratings, the average price target is reportedly $20. That means analysts are suggesting the Fortescue share price could fall by around 10% from where it is today. Therefore, a group of analysts are collectively suggesting that 2026 is likely to be a poor year for the ASX mining share.

But that potential return was just the average view. There’s both a potential better outcome and possibly a much worse outcome, based on analyst price targets.

On the positive side of things, one broker thinks the Fortescue share price could rise another 4% from its current level.

But one analyst thinks the ASX mining share could fall by 27% within the next year.

Expert view on the iron ore price

Iron ore is integral for Fortescue because it’s responsible for virtually all of the company’s earnings.

Pleasingly, the iron ore price has been sitting above US$100 per tonne in the last few months, allowing Fortescue to generate solid monthly profits.

Broker UBS recently said in a note that it expected the iron ore price to “remain ~$100/t over the next six months with demand stable and incremental supply growth modest”. The broker said the new African iron ore project, Simandou, is expected to add more supply in the second half of 2026.

In the medium term, UBS expects that the iron ore market will move into surplus supply, leading to the iron ore price trending “back to around the 90th percentile”. In other words, the iron ore miners from across the world with the highest mining costs may no longer be profitable, though that doesn’t include Fortescue – it is one of the world’s most efficient iron ore miners.

The broker predicts that the iron ore price could reduce to around US$90 per tonne in 2027. Fortescue would still be very profitable at that level, but its earnings would be noticeably reduced compared to today, and that would likely impact the Fortescue share price.

The post How much could the Fortescue share price rise in 2026? appeared first on The Motley Fool Australia.

More reading

• 3 of the best performing VanEck ASX ETFs in the last year
• 12 best performing commodities of 2025
• 6 most traded ASX shares of 2025
• Did Fortescue, Rio Tinto or BHP shares perform better this year?
• Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks

Motley Fool contributor Tristan Harrison 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.

For investors who actively manage their portfolios, it can be difficult not to overreact to weekly or even daily swings in ASX shares. 

Checking stock prices daily can trigger emotional decisions when, in reality, buying and holding for the long term is a proven pathway to healthy returns.  

Quality investments not only recover from periods of volatility but also keep charging ahead. 

Investing for the long haul

For this exercise, I am focused on blue-chip stocks. 

The reason?

Of course, I could retrospectively choose a penny stock that boomed and say, “You should have bought X stock before it took off.”

But this is disingenuous, and difficult to predict.

Here at The Motley Fool, our philosophy is based on long-term, diversified investing. 

It’s kind of like my best mate’s 1996 Toyota Corolla; there’s nothing sexy about it, but it works. 

Sometimes it’s important to zoom out and look at just how successful you can be investing for the long term. 

Rio Tinto Ltd (ASX: RIO)

Rio Tinto is one of the world’s largest metals and mining corporations.

It is also one of Australia’s largest companies by market capitalisation.

Mining is a significant part of the Australian and global economies, and companies like Rio Tinto have helped push the Australian economy forward in the last decade. 

10 years ago, these ASX shares were trading for roughly $42 each. 

Last week, Rio Tinto shares closed at just under $147.70 a piece. 

That’s good for an increase of more than 250%. 

This means a $5,000 investment 10 years ago would today be worth approximately $17,600 based on the share price alone.

That’s before taking into consideration the $7,000 in dividend payments you would have earned in passive income along the way. 

This brings the total increase to more than 400% over the 10-year period. 

Commonwealth Bank of Australia (ASX: CBA)

It’s no surprise that Australia’s largest bank, and largest listed company, has also been a steady investment over the last 10 years. 

A decade ago, CBA shares were trading at just under $80 per share. 

Today, these ASX shares are sitting at just over $161 per share. 

This is good for a 100% return, doubling any investment made 10 years ago. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Turning our attention to a fundamental ASX ETF, this fund from Betashares offers the 100 largest non-financial companies listed on the Nasdaq market. 

It represents the “new economy”, so to speak, and includes large-cap US companies like Apple and Microsoft. 

Since early 2016, it has risen roughly 425%. 

This is despite falls of 20% for the fund during February 2020 and 16% from February to April this year.

This means an investor who aimed for the NASDAQ index 10 years ago has turned a hypothetical $5,000 investment into $26,250.

Foolish Takeaway 

While past performance doesn’t guarantee future returns, this exercise is just to illustrate that a traditional “non-sexy” portfolio of two of Australia’s largest companies, and the NASDAQ 100, would have turned out to be an extremely profitable investment over the last 10 years. 

These two companies and one ETF not only recovered from economic and global crises in the past, but came out the other side, proving a long-term view is a viable choice for investors. 

The post Decade darlings – these ASX shares have provided 10 years of returns appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: CBA, REA Group, and Xero shares
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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Life360, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The share market has started the new year with some healthy consolidation, creating a few interesting opportunities.

Several quality ASX 200 shares have pulled back in recent months, pushing key technical indicators into oversold territory. For patient investors, that can sometimes set the stage for a rebound.

Here are 3 ASX 200 shares I believe are worth buying this month.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas Rare Earths is one of the most strategically important companies on the ASX.

The company is the largest producer of rare earth materials outside China, supplying critical materials used in electric vehicles, wind turbines, defence systems and electronics.

Despite those strong long-term tailwinds, Lynas shares have pulled back from their recent highs. On Friday, the share price closed at $12.22, down almost 17% in a month.

That sell-off has pushed the stock into oversold territory from a technical perspective, suggesting selling pressure may be starting to ease.

Fundamentally, global demand for rare earths continues to grow, while supply outside China remains limited. Lynas is expanding its processing capabilities and is well positioned to benefit from Western governments pushing to secure critical mineral supply chains.

Xero Ltd (ASX: XRO)

Xero is a high-quality software business that has struggled to keep investors interested lately.

The accounting software provider has seen its share price slide as investors rotated away from growth stocks. Xero shares closed Friday at $112.25, putting them more than 30% lower than this time last year.

That pullback has pushed the stock into oversold territory, which stands out for a business of this quality.

Xero continues to grow its subscriber base globally, while management is placing greater focus on cost control and improving margins. Over time, earnings tend to matter more than headline growth, and that shift could work in Xero’s favour.

With strong recurring revenue and a sticky customer base, the recent weakness looks more like sentiment-driven selling than a problem with the underlying business.

Transurban Group (ASX: TCL)

Transurban offers something different from the other two stocks on this list.

The toll road operator owns high-quality infrastructure assets across Australia and North America. Its revenue is supported by long-term contracts and inflation-linked toll increases.

Shares closed Friday at $14.18 after drifting lower in recent months. That decline has pushed the stock into oversold territory.

With interest rate expectations starting to stabilise, infrastructure assets like Transurban could come back into favour. Traffic volumes remain solid, and the company continues to invest in growth projects.

For investors seeking stability and income alongside potential capital upside, the shares look appealing at current levels.

Foolish takeaway

All 3 of these ASX 200 shares are high-quality businesses that have retraced for different reasons.

With each showing signs of being oversold, I believe January could offer a compelling entry point for long-term investors.

The post Here are my top 3 ASX shares to buy in January appeared first on The Motley Fool Australia.

More reading

• 5 ASX dividend shares to buy in January
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• Buy, hold, sell: CBA, REA Group, and Xero shares
• The top ASX growth stocks that could rebound in 2026 after a brutal year
• Why 4Medical, Guzman Y Gomez, Lynas, and Predictive Discovery shares are falling today

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 positions in and has recommended Transurban Group and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Transurban Group and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Suncorp Group Ltd (ASX: SUN) share price could have compelling upside, according to brokers.

Suncorp is one of the largest insurance businesses in Australia, along with Insurance Australia Group Ltd (ASX: IAG). There are a few positives to like about the business, including its potential earnings.

Let’s get into why the insurance business is attracting analyst attention.

Double-digit return potential

The broker UBS has a buy rating on Suncorp shares, with a price target of $20.85 on the business.

A price target is where the broker thinks the share price could get to in 12 months from the time of the investment call. Therefore, at the time of writing, UBS is suggesting the Suncorp share price could rise by 17% over the next 12 months. If that happened, it would very likely be a market-beating return.

After a painful five months to November 2025 due to large natural hazard costs, December was a calmer month for weather events. Even so, costs were well above its $885 million first-half allowance. UBS has forecast a catastrophe budget overrun of $420 million for Suncorp (down from $580 million).

UBS said that Suncorp is “benefitting from a more benign December for CATs.”

Across the sector, it prefers domestic general insurance exposures reflecting:

(1) likelihood of sustained personal lines rate momentum post elevated Oct/Nov domestic CAT activity, (2) consensus upside from RI [reinsurance] profit commissions for IAG, (3) support from rising bond yields, and (4) scope for ongoing capital management given strong balance sheets.

With a large float portfolio and significant portion of money invested in bonds, higher bond yields can help the company generate stronger returns for Suncorp, helping its bottom line.

What is the Suncorp share price valuation?

The forecast on CMC Markets suggests the business could deliver growing earnings per share (EPS) between FY26 to FY28.

Currently, the forecast is that the business could generate $1.14 of EPS in the 2026 financial year. That means the Suncorp share price is valued at under 16x FY26’s estimated earnings. The projections suggest EPS could rise by another 11% by FY28.

In terms of the dividend, the projection on CMC Markets suggests the business could deliver an annual dividend per share of 78.5 cents. At the current Suncorp share price, it could pay a grossed-up dividend yield of 6.3%, including franking credits.

Excitingly, the projections suggest the payout could rise to 88.5 cents per share in the 2027 financial year and 92 cents per share in the 2028 financial year.

The post Why these brokers are bullish on the Suncorp share price appeared first on The Motley Fool Australia.

More reading

• Which ASX insurance stocks performed best this year?
• 3 ASX insurance shares to sell: experts
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• Suncorp shares tread water as investors digest 2026 dividend timeline
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares

Motley Fool contributor Tristan Harrison 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.

With the new year underway, many investors are turning their attention back to income opportunities on the Australian share market.

While interest rates may eventually rise, quality dividend shares continue to offer the potential for reliable income alongside long-term capital growth.

For investors looking to put money to work this January, here are five ASX dividend shares that stand out for their cash-generating ability and long-term relevance.

Accent Group Ltd (ASX: AX1)

Accent Group operates a portfolio of leading footwear and apparel brands, including Platypus, Skechers, and The Athlete’s Foot.

While consumer spending has been under pressure, Accent’s focus on vertically integrated retailing, private-label growth, and disciplined cost control has allowed it to keep paying dividends through a tough cycle. And with its shares down heavily over the last 12 months, now could be an opportune time for patient investors to snap them up.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is a well-known name among income investors, thanks to its long history of dividend payments and asset-backed balance sheet. The retailer benefits from a large property portfolio, offshore operations, and exposure to housing-related spending.

While its earnings can be cyclical, Harvey Norman’s conservative capital management and strong cash position have supported regular dividends over many years. That combination could make it an attractive option for income investors seeking some downside protection.

HomeCo Daily Needs REIT (ASX: HDN)

A third ASX dividend share that could be a buy for income investors is HomeCo Daily Needs REIT. It owns convenience-based retail assets focused on everyday services such as supermarkets, healthcare, and essential retail. These properties tend to generate stable rental income, supported by long leases and defensive tenants.

Because its portfolio is designed around non-discretionary spending, HomeCo has been able to deliver attractive distributions even during periods of economic uncertainty. For income portfolios, this kind of predictability can be very appealing.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is one of the world’s largest pathology and diagnostic imaging providers, with operations across Australia, Europe, and the United States.

While its performance since the pandemic has been underwhelming, there are signs that the company is now in a position to deliver consistent and solid earnings growth over the coming years. This could make it a good pick for income investors, especially given how healthcare demand is inherently defensive.

Transurban Group (ASX: TCL)

Finally, Transurban could be an ASX dividend share to buy. It owns and operates toll roads across Australia and North America, generating growing cash flows from essential transport infrastructure. Its assets benefit from long concession lives, inflation, population growth, and rising traffic volumes over time.

It is no surprise that Transurban’s ability to deliver predictable distributions underpinned by contracted revenue makes it a cornerstone holding in many dividend-focused portfolios.

The post 5 ASX dividend shares to buy in January appeared first on The Motley Fool Australia.

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• 2 buys and 1 sell for investors worried about an ASX market crash in 2026
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Motley Fool contributor James Mickleboro has positions in Accent Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended Accent Group, HomeCo Daily Needs REIT, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a wide range of ASX shares available for Aussies to buy, but not all of them get the attention they deserve.

A little-known business is just as capable of producing good returns as a high-profile name. In-fact, companies flying under the radar may be trading on a more appealing valuation because of the little amount of investor attention they receive.

We’re going to take a look at two names that a lot more Australians should to know about.

Redox Pty Ltd (ASX: RDX)

Broker UBS describes Redox as a leading supplier of chemicals, ingredients and raw materials in ANZ, as well as operations in Malaysia and a growing presence in the US.

UBS was impressed by the company’s FY25 result, which showed a resilient gross profit margin and lower costs through a period of moderating like for like (LFL) volume growth.

At the time of that result, management reiterated it expects to deliver long-term growth of around 10% per year, with some years leaner than that and others stronger. FY25 was a year of headwinds including price deflation, margin normalisation and more subdued demand.

UBS noted the ASX share reported a solid start to FY26, with July top-line growth of 13% year-over-year.

While there is uncertainty in FY26, the broker suggests conditions will improve towards longer-term trends in FY26 with price deflation in the rear-view mirror.

UBS also notes that acquisitions remain “on the agenda” and the broke has seen a shift in tone towards the US as a focus after completing three bolt-on acquisitions in Australia. The broker suggested that the balance sheet is well-funded for more deals and the long-term story remains “positive”.

The broker forecasts that the business could generate $82 million of net profit in FY26, putting the ASX share at 19x FY26’s estimated earnings. It’s projected to grow its earnings by 55% between FY26 and FY30.

UBS has a buy rating on Redox, with a price target of $3.40.

Hansen Technologies Ltd (ASX: HSN)

Another ASX share that UBS rates as a buy is Hansen Technologies. The broker describes the business as a global software provider mainly to the energy, telecommunications, pay-TV and water verticals.

UBS said that the company’s billing and customer care software allows clients to “efficiently manage and automate key business functions, such as customer billing, processing, collections, general revenue management, customer acquisition, and customer service.”

It has hundreds of customers globally, with dozens of offices across the continents.

The most recent note from UBS discussed the company’s acquisition called Digitalk, giving new exposure to the growing mobile virtual network operator (MVNO) segment of the telecommunications market.

This acquisition came with an enterprise value price tag of $66 million. It’s a billing, cloud-based software provider to the MVNO segment of the telco market.

UBS noted that MVNOs have been taking market share globally thanks to lower price points and more convenient type plan offerings, so this sector “should be viewed as a growth market”. Digitalk has delivered revenue growth of at least 10% per year consistently over the last three years, driven by a range of telco wins supporting increased MNVO market share gains in the UK and Europe.

The broker then said about the ASX share:

Given its cloud/SaaS based nature, the revenue growth has come alongside consistent margin expansion to current FY25 levels of 31.4%. Quite simply we believe this is a small albeit very impressive founder led business that Hansen has acquired.

…For core Hansen, we remain constructive on its ability to deliver top line and earnings growth in FY26, acknowledging this remains an area of market debate. We forecast FY26 revenue growth of 5% to A$408mn. Within this, we expect (1) 12% growth in recurring Saas / Support & Maintenance revenue as recently won / renewed Licence revenues go live, (2) +8% growth in predictable Application or Services revenue, offset by (3) an expected 35% decline in up-front Licence sales to A$32mn after a very strong FY25 (A$50mn).

The solid top-line growth will, in our view, more importantly be also met with another year of operating leverage as the company continues to realise recent efficiency benefits and Powercloud cost outs.

UBS has a buy rating on Hansen shares, with a price target of $7.50 on the ASX share.

The post Brokers rate these 2 top ASX shares as buys in January appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

Shares in Commonwealth Bank of Australia (ASX: CBA) have disappointed investors recently.

At last week’s market close, CBA shares finished trading at $161.12, delivering a total return of just 4.92% over the past 12 months. That result looks weak compared to Australia’s other major banks, which posted much stronger gains over the same period.

For context, CBA shares are also trading well below their record high of $192, reached in late June 2025. Since then, the share price has fallen more than 16%.

So, what has gone wrong, and should investors be looking elsewhere?

Other banks have done much better

CBA has long been regarded as the highest quality bank on the ASX. Over the past year, however, its share price performance has fallen well short of that reputation.

Over the past year:

• Westpac shares are up 20.18%
• NAB shares have gained 13.86%
• ANZ shares have surged 27.39%

Against that backdrop, CBA’s 4.92% return clearly lags its peers. A big part of the issue is that investor expectations for CBA are already very high.

The valuation is still too expensive

One of the key reasons CBA’s share price has struggled is its valuation.

CBA is currently trading on a price to earnings (P/E) ratio of 26.68, which is expensive for a major bank.

By comparison, other major Australian banks trade on much lower P/E ratios:

• Westpac trades a P/E of about 19.64
• NAB is sitting on a P/E of 19.20
• ANZ has a P/E ratio of around 18.67

This means investors are paying a significantly higher multiple for CBA’s earnings than they are for its peers.

That premium reflects CBA’s strong market share, solid profits, and long track record of consistent performance. However, when earnings growth slows or investor confidence softens, high valuations can quickly work against the share price.

What the latest update showed

In its September quarter 2025 trading update, CBA reported steady lending growth and stable margins. However, there were no major surprises to excite the market.

With competition increasing across home loans and deposits, investors appear cautious about how much earnings can grow from here.

What are brokers saying

Broker views on CBA are mixed, and that really comes down to valuation.

Several brokers have price targets well below the current share price of $161.12, suggesting a possible pullback from here.

Recent broker updates include:

• Morgan Stanley has a price target of $144.80
• Jefferies has a target price of $143.87
• Morgans believes CBA shares are too expensive, with a target of $99.81

Those targets highlight a clear gap between where CBA shares are trading today and what analysts believe the stock is worth.

Brokers generally agree that CBA remains a high quality business with a strong balance sheet and reliable dividends. However, many believe the shares are fully priced at current levels.

Should investors look elsewhere?

CBA’s recent share price performance highlights the risks of buying into a stock trading at a premium valuation.

Investors focused on dividends may still be comfortable holding CBA shares. However, those looking for stronger growth may find better opportunities elsewhere on the ASX.

The post CBA shares returned just 4.9% last year. Should investors look elsewhere? 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.