Category: Stock Market

There are not many S&P/ASX 200 Index (ASX: XJO) shares that have performed worse over the last two years than one of the largest ASX energy shares. The Woodside Energy Group Ltd (ASX: WDS) share price has declined by around 35%. It has dropped around 12% since 12 November, as the below chart shows.

It’s normal for there to be volatility on the share market and it’s particularly normal for energy shares to experience ups and downs. Energy prices are always on the move and this can sometimes lead to big swings of share prices.

Production costs don’t typically change much month to month, so energy price shifts can dramatically change profitability. Any extra revenue for the same volume of production can largely add to net profit, while a reduction of revenue dollars will mostly flow onto the net profit line too.

Let’s look at expert views on energy prices before looking at the appeal of the Woodside share price.

2026 surplus

In a note last week, broker UBS cut its 2026 oil price forecast by US$2 per barrel to US$62 per barrel, driven by a larger oil surplus that’s now up to 1.9 million barrels per day for this year, in line with 2025.

However, UBS expects the surplus to narrow over the course of the year, leading to its oil forecast of US$60 per barrel in the first quarter of 2026, rising to US$64 per barrel in the fourth quarter of 2026.

The broker noted that geopolitical risks persist and potential supply disruptions in Russia, Venezuela and Iran could keep volatility elevated.

A decline of 0.5 million barrels per day in supply may support the oil price in the mid-to-high US$60s per barrel, according to UBS.

UBS then commented:

We see some risk of oil demand being underestimated noting that the IEA has been lifting estimates of ‘missing barrels’ & oil on water, with tracking challenged by evolving logistics for sanctioned producers. However we see upside risk as likely capped due to OPEC+ retaining spare capacity of 4.1mb/d (ex-Iran/Venezuela).

We expect OPEC+ policy to be a less important driver for 2026 (vs 2025) as much of the voluntary cuts have already been unwound. Our base case assumes OPEC+ unwinds the remainder of the 1.65Mb/d voluntary cuts from Apr-Dec26.

Is the Woodside share price attractive?

UBS is expecting Woodside’s quarterly production performance for the three months to December 2025 to show production was in line with expectations.

The broker noted the earlier-than-expected arrival of the floating production unit on site in WA introduces the potential for Scarborough gas to flow earlier than the current estimate of the fourth quarter of 2026, which could mean production is a bit stronger than expected.

UBS says that it’s neutral on the Woodside share price, with a price target of $23.50. That implies little movement over the next 12 months.

The broker projects Woodside generated $1.082 of earnings per share (EPS) in 2025. It reduced its projection for 2026 EPS by 12% to 57.7 cents and reduced the 2027 EPS projection by 3% to 95.4 cents.

The post Is the Woodside share price an opportunity too good to pass up? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today
• 5 things to watch on the ASX 200 on Friday
• After 5 days of straight gains, is oil setting up for its next move?
• Woodside shares lift today. Is the worst behind this ASX energy giant?

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.

As we move into 2026, some high-quality ASX companies are trading well below their previous highs. In some cases, short-term concerns have pushed share prices lower, even though the underlying businesses continue to perform well.

For investors looking for value, several well-established companies now appear mispriced by the market.

Here are 3 ASX shares that stand out as undervalued as January draws to a close.

Wisetech Global Ltd (ASX: WTC)

Wisetech is a global leader in logistics software, used by freight forwarders and supply chain operators worldwide. Its platform is deeply embedded in customer operations, creating sticky, recurring revenue.

Despite that strong position, the share price has fallen sharply. Wisetech shares are trading around $67, well down from their 2025 highs.

Several brokers believe the market has become too pessimistic. Consensus price targets sit well above current levels, with some estimates around $100 to $110, pointing to meaningful upside if growth expectations stabilise.

The recent sell-off was driven by softer near-term guidance and investor concerns around governance. However, the long-term outlook has not changed. Global trade volumes continue to grow over time, and logistics software remains essential.

If earnings momentum improves, Wisetech shares could recover strongly from current levels.

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides medical imaging and radiology software to hospitals and imaging groups across the US, Europe, and Australia.

The company has delivered strong long-term growth, but the share price has since pulled back. Shares are trading around $203, below broker expectations.

Broker sentiment remains positive. Average price targets are above $320, reflecting confidence in ongoing contract wins, high margins, and recurring revenue.

While the valuation still looks expensive, many analysts are willing to pay a premium for quality. Pro Medicus operates in a niche market with high barriers to entry and growing demand for digital healthcare solutions.

This recent weakness may offer a rare chance to buy a top-tier healthcare technology business at a heavily discounted price.

CAR Group Ltd (ASX: CAR)

CAR Group owns online automotive marketplaces such as carsales, with operations across Australia and several international markets.

The share price has lagged as investors worry about slowing car sales and softer economic conditions. Even so, the business continues to generate strong cash flow and holds leading market positions.

Brokers remain broadly supportive. The average 12-month price target sits around $40 to $42, around 30% to 35% above current levels.

Analysts continue to point to CAR’s pricing power, high margins, and global expansion strategy as key strengths. Its leading market share allows it to raise prices over time without losing customers, which helps support earnings even in softer conditions.

CAR also offers a mix of growth and resilience, which can be attractive for investors during uncertain market periods.

Foolish takeaway

All 3 of these ASX shares have strong underlying businesses, but their share prices have been weighed down by short-term concerns.

Periods like this can create opportunities for investors willing to look beyond near-term market moves.

For investors building positions in January, these stocks look well worth watching as markets reset for 2026.

The post The 3 best undervalued ASX shares I’d pick up in January 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 positions in and has recommended WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended CAR Group Ltd and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investors look for defensive ASX shares, Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) are often mentioned in the same breath.

Both are household names. Both sell essential products. And both have proven they can perform through different economic conditions.

But if I had to choose between the two today, Wesfarmers would be my preferred buy. That does not mean Coles is a bad business. I just think Wesfarmers offers the more attractive overall package for long-term investors.

The case for Wesfarmers shares

Wesfarmers is not just a supermarket business, and that matters.

While Coles is almost entirely focused on food and liquor retailing, Wesfarmers owns a diversified portfolio of high-quality businesses. These include Bunnings, Kmart, Officeworks, Priceline, WesCEF, and a growing healthcare division.

That diversification gives Wesfarmers multiple earnings levers. When one division is under pressure, others can pick up the slack. Bunnings, in particular, remains a standout asset with strong brand loyalty, scale advantages, and pricing power that is hard to replicate. Masters famously tried and failed.

Another reason I prefer Wesfarmers is capital allocation. Management has a long track record of recycling capital, exiting businesses when returns disappoint, and reinvesting where long-term returns look attractive. That discipline is not always visible quarter to quarter, but it tends to show up over time in shareholder returns.

Wesfarmers is not cheap on headline valuation metrics. But in my view, that reflects the quality and resilience of the underlying businesses rather than excessive optimism.

Why Coles is still a good business

Coles deserves credit for what it does well.

It operates in a highly defensive sector, with food retail demand holding up regardless of economic conditions. Over recent years, Coles has improved its operational execution, supply chain efficiency, and private label offering.

Its earnings profile is relatively predictable, and dividends have been an important part of the investment case for income-focused investors. For those seeking stability and exposure to essential spending, Coles remains a good option.

That said, Coles is more exposed to supermarket-specific pressures. These include competition, margin scrutiny, and regulatory oversight. There are fewer places to hide if conditions become more challenging.

Growth versus simplicity

For me, the difference between these two ASX shares comes down to optionality.

Coles offers simplicity and defensiveness. Wesfarmers offers defensiveness plus growth opportunities across multiple divisions. Over a long investment horizon, I prefer the business that has more ways to grow earnings and redeploy capital.

That does not mean Wesfarmers will outperform every year. There will be periods where Coles does better, particularly if supermarket margins expand or consumer conditions stabilise quickly.

But looking beyond the next twelve months, I think Wesfarmers is better positioned to compound value.

Foolish takeaway

If forced to choose between the two, Wesfarmers would be my pick as the better buy today.

Coles Group remains a solid, defensive business, and I would not discourage investors from owning it. I just think Wesfarmers’ diversification, asset quality, and capital discipline give it a stronger long-term edge.

Sometimes the best investment is not about avoiding risk entirely, but about choosing the business with more paths to success.

The post Wesfarmers vs Coles: Which ASX share is the best buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

Resolute Mining Ltd (ASX: RSG) has emerged as one of the strongest performers among ASX mid-cap gold stocks over the past year, with its share price up an incredible 217%.

After that run, the stock eased late last week, closing down around 2.3% at $1.29 as the gold price softened. Even so, Resolute shares remain well above levels seen a year ago, and recently reached a 5-year high at $1.35.

With the share price having moved sharply higher, attention is now turning to what has driven the rally and whether it can be sustained.

Here are the key factors investors are weighing up.

What’s behind Resolute’s strong run

Resolute Mining is an Australia-listed gold producer with operations in West Africa, including the Syama mine in Mali and the Mako operation in Senegal.

The company has more than 30 years of experience in exploration, development and production, and has produced over 9 million ounces of gold across 10 mines.

While gold miners typically benefit from rising bullion prices, Resolute’s rally has gone beyond simply riding the commodity cycle. Improving project economics, exploration success and a clearer growth strategy have all helped lift investor confidence.

One important catalyst has been updated feasibility work at the Doropo gold project in Cote d’Ivoire. The revised studies point to improved economics and a larger project scope, which could lift Resolute’s long-term production profile once approvals and funding are in place.

The company will host a quarterly webcast and guidance update on Thursday 22 January, where management is expected to discuss its latest quarterly results.

Why investors kept buying even as gold prices dipped

Despite the recent dip, several factors have supported Resolute’s strong performance.

Firstly, the stock still looks reasonably valued compared with many peers on a price-to-sales basis. Resolute trades at roughly 2 times sales, compared with around 6 times for Evolution Mining Ltd (ASX: EVN), suggesting the market is still pricing Resolute more conservatively.

Secondly, both revenue and earnings have been growing strongly for Resolute, pointing to improving scale and operating momentum.

And finally, expectations around its 2026 guidance have helped underpin sentiment, as investors look for clarity on production and costs.

Even with gold easing slightly, prices remain historically strong. That continues to support Resolute’s cash flow outlook, especially if geopolitical risks or interest rate cuts lift safe-haven demand later this year.

The risks the market is still weighing up

That said, operating in West Africa carries added risk compared with many Australian-based miners.

Resolute has faced challenges in the past, including periods of regulatory uncertainty in Mali and changes in leadership. Political stability, government policy and permitting timelines can all influence operations, sometimes with little warning.

There are also execution risks to consider. Delivering consistent production, controlling costs and managing capital spending remain critical, particularly as the company looks to advance growth projects.

The capital required to develop projects such as Doropo means future returns will depend heavily on management’s ability to execute plans on time and within budget.

What’s next?

Resolute’s 217% share price surge over the past year reflects strong gold prices and improving company fundamentals. However, after such a sharp run, attention is now shifting from momentum to delivery.

With the gold prices softening and a key guidance update approaching, the next few weeks could prove decisive for Resolute shares. Clear targets and steady results may support further upside, while any disappointment could see the stock consolidate after a huge year.

The post Resolute Mining shares have surged 217% in a year. Can the momentum last? appeared first on The Motley Fool Australia.

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• Gold price surges to another record high. Why ASX gold stocks could be next

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.

Now could be the time to buy Mader Group Ltd (ASX: MAD) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX All Ords stock.

What is the broker saying about this ASX All Ords stock?

Bell Potter notes that this specialised contract labour provider’s shares have pulled back recently, which it believes has created a buying opportunity. Especially given its belief that the company is poised to benefit from favourable industry conditions both at home and in North America. It said:

The Department of Industry, Science and Resources updated its Australian iron ore production outlook (Dec’25), forecasting CAGR of 2.8% over FY25-28 (prev. 2.5%). Delivery of this growth by industry is a major tailwind for MAD’s core Heavy Mobile Equipment and Infrastructure Maintenance service offerings. FY26TD (JulNov’25) WA wholesale diesel consumption was up 2.2% YoY, with a record observed in Oct’25.

WA wholesale diesel consumption correlates very strongly with WA iron ore production. Lastly, the latest financial disclosures of OEMs (Sep’25 quarter) outlined sales and order intake were broadly flat and modestly up, respectively.

Over in North America, Bell Potter believes the ASX All Ords stock could be well-placed for new contract wins. It adds:

Several indicators point to a favourable environment for securing new business across the region. Firstly, our proxy for USA mining complex activity has progressively improved since the 2024 elections, with the index up 4.1% YoY for the period Jul-Nov’25. Secondly, in Canada, MAD’s key markets have seen strong YoY production growth over Jul-Oct’25: 4.4% for coal; 15.9% for copper; 10.8% for lime; and 3.0% for oil sands (hard rock).

Lastly, regional OEMs and dealers have generally seen stable-to-improving YoY growth in their respective Product Sales businesses, indicating miner commitments to maintaining and growing fleet. Large Canadian mining dealers have reported mid-single digit to mid-teens YoY revenue growth for their respective Product Support divisions over the Jun’25 and Sep’25 quarters.

Upgraded

In light of the above and recent share price weakness, the broker has upgraded Mader’s shares to a buy rating and $9.00 price target.

Based on its current share price of $7.77, this implies potential upside of 16% for investors over the next 12 months.

Bell Potter also expects a modest 1% dividend yield in FY 2026, lifting the total potential return to approximately 17%.

Commenting on the ASX All Ords stock’s recommendation upgrade, the broker said:

We upgrade our Recommendation to Buy. The recent retracement in MAD’s share price offers investors a more attractive risk-reward proposition, with 17.2% TSR implied by our $9.00/sh Target Price. We maintain the view that consensus expectations are conservative (FY26e NPAT of $67.6m; BPe $69.6m; NPAT guidance >$65.0m). Disclosure of MAD’s next 5-year strategy represents a near-term catalyst.

The post Why Bell Potter just upgraded this ASX All Ords share to a buy rating appeared first on The Motley Fool Australia.

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The ASX dividend stock Sonic Healthcare Ltd (ASX: SHL) has dropped 36% since April 2023, as the chart below shows. I think it’s fair to say that the last few years have been rough for shareholders following the COVID-19 testing boom.

Sonic Healthcare is a global pathology business with a presence in a number of Western countries including the USA, Australia, Germany, Switzerland, the UK, Belgium and New Zealand.

I think it’s useful for the business to have geographic exposure as this allows it to expand in a number of countries and reduces the risk of being too exposed to one country.

Its dividend record alone makes the ASX dividend stock an exciting investment.

Incredible payout record

When I invest in dividend-paying businesses, I’m looking for companies that provide stable and hopefully growing payments.

Sonic Healthcare increased its payout per share every year between 1994 and 2010, maintained the payout in 2011 and 2012 and has grown it every year since. It has one of the most consistent and impressive dividend records on the ASX over the last three decades.

Dividend growth is not guaranteed, but it’s clear that Sonic Healthcare is focused on paying investors as good a dividend as it can while still investing for growth.

The business itself has committed to having an ongoing “progressive dividend policy”, which bodes well for future payments.

The forecast on CMC Markets suggests that the business could pay an annual dividend per share of $1.10 in FY26. Excluding any potential franking credits, that projection translates into a dividend yield of 4.7%.

It’s expected to grow the annual payout to $1.12 per share in FY27 and $1.155 in FY28. If it does that, the business will be able to provide investors with steady passive income.

Is this a good time to invest in the ASX dividend stock?

It’s not generating the same level of profit that it did during the COVID-19 testing surge, but its earnings are expected to rise thanks to organic growth and acquisitions. It has made a number of European acquisitions to help boost its scale and earnings base.

The projection on CMC Markets suggests the business could grow earnings in FY26 and beyond. In FY26, earnings per share (EPS) could increase to $1.25. EPS could then improve to $1.36 in FY27 and $1.46 in FY28. It’s currently valued at under 19x FY26’s estimated earnings.

Its EPS is being helped by ageing and growing populations, which are strong tailwinds for the business. While its best growth rate may be behind it, I think it’s still a solid ASX dividend stock for the long-term.

The post 1 ASX dividend stock down 36% I’d buy right now 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 recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These 2 ASX 200 shares stand out for investors willing to think in years rather than days: CSL Ltd (ASX: CSL) and Temple & Webster Group Ltd (ASX: TPW).

One sells essential medicines to the world. The other sells couches, lamps and coffee tables to Australians who like shopping from the sofa.

Different businesses, different risks, but both have credible paths to long-term wealth creation.

CSL Ltd (ASX: CSL)

CSL sits at the heavyweight end of the market. The $85 billion ASX 200 share operates a global biotechnology empire built around plasma-derived therapies, vaccines and specialty medicines. Demand for these products doesn’t disappear when economies slow or consumers tighten their belts. People still need treatment, and hospitals still place orders.

The ASX 200 biotech stock has stumbled over the past couple of years as margins came under pressure and earnings upgrades failed to materialise. That has tested investor patience.

But CSL continues to generate strong cash flow, invest heavily in research and streamline its operations. Its scale, pricing power and global reach give it an edge few competitors can match. Over a 10-year stretch, that combination matters far more than a rough patch or two along the way.

Closing the week at $175.53, the company’s shares remain close to their 52-week low. The ASX 200 share tumbled more than 30% in the past 6 months.

For a business long regarded as one of the ASX’s highest-quality names, such a sharp pullback inevitably prompts the question: does this represent a rare long-term buying opportunity?

Most analysts do think this might the time to pounce and rate CSL a buy or even a strong buy. They set the average 12-month price target at $232, a potential gain of 32%.  

Temple & Webster Ltd (ASX: TPW)

Temple & Webster tells a very different story. The ASX 200 share operates an online-only homewares platform that offers thousands of products without the burden of running a network of physical stores. The model keeps costs low and allows the business to scale as demand grows.

Like most growth stocks, Temple & Webster has ridden a volatile path. Rising interest rates, housing slowdowns and cautious consumers have weighed on sentiment. Yet the business continues to win customers, improve logistics and expand its product range. As conditions normalise and online retail continues to take share from traditional stores, Temple & Webster has room to grow into a much larger business than it is today.

Just like CSL, Temple & Webster has been hovering around 52-week lows. In the past 6 months the ASX 200 share has lost 40% of its value and the broker community has taken notice.

Most analysts rate the stock now as a buy or strong buy, with an average 12-month price target of $20.42, implying around 60% upside. The most bullish forecasts point to potential gains of more than 115%.

The post 2 ASX 200 shares to buy and hold for 10 years 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 CSL and Temple & Webster Group. The Motley Fool Australia has recommended CSL and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in ALS Ltd (ASX: ALQ) finished last week on a strong note, closing up 1.88% at $23.86.

Earlier in Friday’s session, the ALS share price also hit a fresh all-time high of $23.91, marking another milestone in what has been an impressive run.

Over the past 12 months, ALS shares are now up around 53%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO). With momentum clearly building, investors may be wondering whether the rally still has room to run.

Let’s take a closer look.

Why ALS shares are back in the spotlight

ALS is a global testing, inspection, and certification business, operating across commodities, life sciences, energy, and industrial markets.

The company runs more than 370 sites across around 65 countries, giving it a diversified earnings base. That global footprint has helped smooth earnings across cycles and reduce reliance on any single market.

In its H1 FY26 results, ALS reported underlying EBIT growth of around 14.7%, driven by solid demand across its core divisions. Management also pointed to improving operating margins and continued cost discipline.

That result reinforced the market’s view that ALS remains well positioned despite broader economic uncertainty.

A reliable dividend with growth on top

ALS also continues to reward shareholders with dividends.

The company paid an interim dividend of around 19.4 cents per share, carrying a franking credit of close to 30%. While ALS is not a high-yield stock, the dividend provides a steady income stream alongside capital growth.

What the ALS chart is saying

The relative strength index (RSI) is hovering around 65, which suggests bullish conditions, though the stock is not yet at extreme overbought levels.

The share price is also trading above both its 50-day and 200-day moving averages, confirming a strong medium and long-term uptrend.

In terms of volatility, ALS has a beta of around 1.09, meaning it tends to move broadly in line with the market.

Support and resistance levels to watch

Now that ALS has moved above its previous highs, the $23.90 level could act as short-term support.

Below that, the $22 to $22.50 zone is an important support area based on recent trading activity. Further down, longer-term support sits closer to $21.50 to $21.80.

On the upside, the next psychological resistance level sits around $25.00, which some analysts see as a potential medium-term target if momentum continues.

Foolish takeaway

ALS has delivered strong gains, but the recent rally is backed by solid earnings growth, global diversification, and improving margins.

While short-term pullbacks are always possible after hitting an all-time high, the broader trend remains positive.

For investors looking for a quality industrial stock with momentum and defensiveness, ALS is one worth keeping on your watchlist.

The post This ASX stock just hit an all-time high. Is there more upside ahead? 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.

If you are on the hunt for some of the best ASX shares to buy this month, then it could pay to listen to analysts at Bell Potter.

They have revealed a number of shares that they believe are best buys right now and could offer good returns in 2026. Let’s see what the broker is bullish on in January:

Region Group (ASX: RGN)

The first ASX share that could be a best buy is Region Group. It offers a defensive way to gain exposure to Australian retail property. The company owns a portfolio of neighbourhood and sub-regional shopping centres anchored by supermarkets and essential services. This positioning helps stabilise rental income, as demand for food, healthcare, and everyday services tends to hold up even when discretionary spending softens.

Bell Potter sees value in Region Group’s focus on convenience-based retail, which benefits from high foot traffic and resilient tenant demand. With inflation-linked rental growth and improving operating conditions across parts of the retail property sector, the broker believes the company is well placed to deliver steady income and long-term value for investors. It said:

Whilst the immediate catalyst is valuation uplift, we also see a strong case for medium-term rental growth (c.15% under rented vs. benchmark; 9.7% specialty occupancy cost ratio is low vs historical levels/peers), adding to our longer-term conviction in the stock.

Telix Pharmaceuticals Ltd (ASX: TLX)

Another ASX share that Bell Potter is bullish on is Telix Pharmaceuticals. It specialises in radiopharmaceuticals used in the diagnosis and treatment of cancer, which is an area of medicine that continues to attract strong interest and investment globally.

Its flagship products and development pipeline position Telix at the heart of medical innovation and increasing demand for more targeted cancer therapies.

Bell Potter is positive on Telix’s commercial momentum and longer-term growth outlook. As adoption of its products expands and new therapies progress through development, the broker believes Telix has the potential to deliver strong earnings growth over time. Especially with potential product approvals on the horizon. It said:

We are confident regarding the approval in CY 2026 of Zircaix following resubmission of the Biological License Application (BLA). The FDA rejected the original BLA due to CMC (chemistry manufacturing & control) matters at Telix’s manufacturing partner. There were no matters related to safety or efficacy.

We expect the market for Zircaix once approved will be in excess of US$500m. The product has been included in guidelines for disease management in the US and Europe and continues to be available in the US under the expanded access program. Elsewhere, sales of Iluuccix/ Gozellix in the PSMA franchise continue to grow and were recently boosted by the refresh on the pass through pricing.

The post Bell Potter says these ASX shares are best buys in January appeared first on The Motley Fool Australia.

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If you have $1,000 to invest and you are wondering where to start, I think the Vanguard MSCI Index International Shares ETF (ASX: VGS) is a very sensible option to consider.

It is not flashy. It will not double overnight. But for investors thinking in years rather than weeks, I believe the VGS ETF offers exactly the kind of foundation investment that makes sense.

What does the VGS ETF actually invest in?

The Vanguard MSCI Index International Shares ETF gives you access to around 1,300 stocks across developed markets outside Australia.

That includes major economies like the United States, Japan, the United Kingdom, Canada, France, and Switzerland. In practical terms, it means you are investing in many of the world’s most influential businesses, including global leaders in technology, healthcare, consumer goods, and industrials.

This matters because the Australian share market is relatively narrow. Banks, miners, and domestic retailers dominate the ASX. The VGS ETF helps fill the gaps by providing access to sectors that are underrepresented locally, particularly technology and global healthcare.

Holdings include Apple, Nestle, Nvidia, ASML, HSBC, and Rolls-Royce.

Why $1,000 makes sense

One of the biggest challenges for new investors is diversification.

With $1,000, buying individual shares can leave you overly exposed to a single ASX share or sector. The Vanguard MSCI Index International Shares ETF solves that problem immediately. With one investment, you gain broad global diversification across over a thousand businesses and multiple economies.

I also think $1,000 is a great way to get started psychologically. It is large enough to matter, but small enough that short-term market movements should not cause stress. That makes it easier to stay invested, which is ultimately what drives long-term returns.

A long-term growth focus

The VGS ETF is not designed to be an income investment. Its yield is modest compared to Australian dividend stocks.

The role of this ETF is long-term capital growth. Over time, global stocks have benefited from innovation, scale, and access to much larger markets than most Australian businesses. While returns will vary year to year, history suggests that global equities can compound strongly over long periods.

For someone investing $1,000 today, the real value comes from what that investment could look like in ten, twenty, or thirty years, especially if dividends are reinvested and additional contributions are made over time.

What about risk?

Like all share market investments, the VGS ETF will be volatile.

Its value will move with global markets and currency fluctuations, as it is not hedged back to the Australian dollar. That can work for or against investors in the short term. Over long periods, I see that currency exposure as a feature rather than a flaw, as it adds another layer of diversification.

The key point is that the Vanguard MSCI Index International Shares ETF should be approached with a long-term mindset. If you need the money in the next year or two, this may not be the right place for it.

Foolish takeaway

If you are asking whether investing $1,000 in the Vanguard MSCI Index International Shares ETF makes sense, my answer is yes.

It offers instant diversification, exposure to global growth, low fees, and a simple structure that is easy to understand and hold. As a starting point or as part of a broader portfolio, I think the VGS ETF is a strong long-term building block for investors in 2026 and beyond.

The post Should I invest $1,000 in the VGS ETF? appeared first on The Motley Fool Australia.

More reading

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• Morgan Stanley tips 12% upside for US stocks in 2026. Here are 3 ASX ETFs offering exposure
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• I would put $10,000 of my savings into these ETFs
• Investing in the VanEck International Quality ETF (QUAL)? Here’s what you’re really buying

HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor Grace Alvino 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 ASML, Apple, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings and Rolls-Royce Plc. The Motley Fool Australia has recommended ASML, Apple, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.