Category: Stock Market

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a reasonably positive session and edged higher. The benchmark index rose 0.15% to 8,592 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to jump on Friday following a mixed night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 100 points or 1.15% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.4% and the S&P 500 is 0.2% higher, but the Nasdaq is down 0.2%.

Oil prices tumble

It could be a poor finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.45% to US$57.61 a barrel and the Brent crude oil price is down 1.45% to US$61.31 a barrel. Optimism over Russia-Ukraine peace talks put pressure on oil prices.

Buy Netwealth shares

Netwealth Group Ltd (ASX: NWL) shares are in the buy zone according to analysts at Bell Potter. This morning, the broker upgraded the investment platform provider’s shares to a buy rating with a $31.50 price target. It said: “Upgrade to Buy. First Guardian is an overhang, but if net flows are maintained then the company is on-track to beating guidance and maybe consensus. Against this backdrop there continues to be noise – KKR is looking to exit CFS and Macquarie has disrupted its flows – so we view FY26 as a good setup and upgrade based on valuation, where NWL has averaged an EV/EBITDA multiple of 33x. The last traded price implies 29x our blended FY26-27 estimates.”

Gold price jumps

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good finish to the week after the gold price jumped overnight. According to CNBC, the gold futures price is up 1.9% to US$4,303.9 an ounce. The precious metal has risen since the US Federal Reserve cut rates again.

NAB AGM

National Australia Bank Ltd (ASX: NAB) shares will be on watch today when it becomes the second big four bank to hold its annual general meeting this week. It is possible that the bank will provide the market with an update on recent trading. Today is also pay day for NAB shareholders, with the bank scheduled to pay its fully franked 85 cents per share dividend today.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX is home to many top Australian dividend stocks. From Telstra Group Ltd (ASX: TLS) to BHP Group Ltd (ASX: BHP), from Westpac Banking Corp (ASX: WBC) to Woolworths Group Ltd (ASX: WOW), the Australian markets offer many companies that have decades of paying fat, fully franked dividends.

However, many of these dividend stocks have looked better as we survey them at the end of 2025. Some, perhaps Telstra and Westpac, are looking relatively expensive, and thus are offering dividend yields well below their historical averages right now. BHP and Woolies have their own issues, whether that be low commodity prices or minks in their business models that need ironing out.

That’s why, if I had to choose an Australian dividend stock to invest in today, I’d probably go for something like the SPDR MSCI Australia Select High Dividend yield ETF (ASX: SYI).

This exchange-traded fund (ETF), like most ASX ETFs, holds a basket of underlying shares. In this case, those shares are all strong ASX dividend stocks with a history of providing relatively high yields to investors.

An ASX dividend stock with a 12.7% yield?

SYI contains all of the shares mentioned above, as well as Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS), QBE Insurance Group Ltd (ASX: QBE) and Coles Group Ltd (ASX: COL). All in all, this fund holds just under 60 ASX dividend stocks in a well-diversified income portfolio.

By investing in such a wide cross-section of the market, SYI can arguably offer the best income on the ASX has to offer, whilst diluting individual company risk.

Unlike most ASX dividend stocks, the SPDR Australia Select High Dividend Yield ETF pays out four dividend distributions annually. Over 2025, these quarterly payments added up to $3.72 per unit. At the current SYI unit price of $29.23, that translates to a trailing dividend distribution yield of 12.73%.

Now, before anyone rushes out to secure SYI units thinking they will enjoy a permanent 12.73% yield on their cash going forward, investors need to keep in mind that the dividend income from an ETF like this can fluctuate dramatically from year to year. The dividends received from this ETF’s underlying holdings largely dictate what the fund itself can pay out. Not to mention the erratic profits that can stem from this ETF’s periodic rebalancing.

To illustrate this inconsistency, SYI units only paid out $1.07 per unit over 2024, down significantly from that $3.72 enjoyed over 2025. Even so, if this were repeated in 2026, it would give this ASX ETF a yield of 3.66%.

Despite this unpredictable income stream, I think this Australian ETF would be a great investment for anyone who prioritises dividend income from their ASX shares today.

The post A top Australian dividend stock with a 12% yield to buy in December 2025 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 ASX financial shares to sell and 1 to buy: experts
• Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 1 pick.
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• Should you invest $1,000 in Nvidia right now?

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Macquarie Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX financial shares closed higher on Thursday, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 0.29% to 9,030.7 points.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.15%.

The financials index has fallen 9.5% since it peaked at a historical high of 9,978.4 points in October.

The steeply declining Commonwealth Bank of Australia (ASX: CBA) share price has contributed to the sector’s fall.

Not to mention the sharp turnaround on interest rate expectations due to resurgent inflation and economic growth.

The markets are now pricing in a 27% chance of a rate hike after the next Reserve Bank meeting on 3 February.

Let’s check out some new broker recommendations on ASX financial shares.

2 ASX financial shares to sell

On The Bull this week, experts reveal two ASX financial shares to sell now.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price closed at $19.15 on Thursday, down 0.1% for the day and down 18.3% over the past six months.

Jabin Hallihan from Family Financial Solutions has a sell rating on QBE.

Hallihan explains:

Shares [are] trading at a premium to our fair value estimate of $16.50, despite falling from its June highs.

In our view, the company faces margin pressure from pricing competition, so we recommend investors reduce holdings, while monitoring claims trends and premium rates.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price closed at $4.67 yesterday, up 0.21% for the day and up 23% in the year to date (YTD).

Blake Halligan from Catapult Wealth has a sell rating on the ASX financial share.

Halligan notes the stock’s significant fall from $5.26 per share on 21 August.

He says:

The Federal Government is attempting to encourage private health insurers to increase payments to private hospitals.

Net profit after tax of $500.8 million in fiscal year 2025 was up a modest 1.7 per cent on the prior corresponding period.

Profit before tax of $728.8 million was up 2.4 per cent.

The risk of increasing cost pressures paints a challenging outlook.

1 ASX financial stock to buy

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price closed at $1 on Thursday, up 0.5% for the day and up 21% in the YTD.

Hallihan has a buy rating on the ASX financial stock.

He explains:

The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5 per cent and 30 per cent.

Tyro is launching a new banking platform to boost merchant adoption. Tyro’s modern technology and strong performance support growth.

Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock.

The post 2 ASX financial shares to sell and 1 to buy: experts appeared first on The Motley Fool Australia.

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• Analysts name 3 ASX shares to buy this week
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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 recommended Tyro Payments. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Welcome to the final article in a seven-part series ranking the best “Magnificent Seven” stocks to buy for next year.

To recap, Tesla was in last place, followed by Apple as the sixth seed, Amazon in fifth, Alphabet fourth, Nvidia third, and Meta Platforms second.

Here’s why Microsoft (NASDAQ: MSFT) takes the gold as the best Magnificent Seven stock to buy in 2026, and my top stock from the entire S&P 500 to buy and hold for at least the next three to five years. 

Microsoft is a high-margin cash cow

Microsoft doesn’t have as much growth potential as Magnificent Seven names like Nvidia or Tesla. However, what makes it attractive is its ultra high profit margins.

Data by YCharts.

Microsoft is the No. 2 player in cloud computing, behind Amazon Web Services. It features a comprehensive suite of integrated software tools, including Microsoft 365 (Word, Excel, PowerPoint, Microsoft Teams, OneDrive, SharePoint, and AI capabilities through Copilot). Its personal computing products include Surface and Windows-supported devices from a variety of brands. Microsoft owns LinkedIn and GitHub. And it’s a major player in gaming with Xbox and its ownership of Activision Blizzard.

Mature tech companies often over-diversify and put innovation on the back burner, leading to slower growth and margin compression. Not Microsoft. Its growth is accelerating, and its operating margin is at a 10-year high.

Delivering results without taking on too much risk

With a 29.8 forward price-to-earnings ratio, Microsoft isn’t quite as cheap as Meta Platforms, but it’s still reasonably priced within the context of its historical valuation.

Microsoft also has the best track record of the Magnificent Seven for delivering consistent, high-margin growth and returning capital to shareholders through share repurchases and dividends.

Its outstanding share count has been ticking down over the years because buybacks have exceeded stock-based compensation. On Sept. 15, management announced a 10% dividend increase — marking the 16th consecutive year the company has boosted its payout. It has the highest yield among the Magnificent Seven at 0.8%.

Microsoft also has one of the best balance sheets of the Magnificent Seven, ending its most recent quarter with $66.6 billion in cash, cash equivalents, and short-term investments net of long-term debt.

As flawless as it gets

There are no perfect businesses, but Microsoft is arguably as close as it gets among U.S. companies.

Going into 2026, the investment thesis has no weaknesses. The company is high-margin, diversified, innovative, and benefits from growth trends across the tech landscape, including AI.

That means Microsoft is well positioned, regardless of what happens in the years to come.

If there’s a recession, Microsoft can weather it.

If there’s a sustained AI boom, it will benefit.

If Microsoft-backed OpenAI loses market share to Alphabet’s Gemini or Anthropic’s Claude, the company can still thrive.

Microsoft may not produce the largest gains of the Magnificent Seven over the next three to five years, but it is by far the best positioned to consistently outperform the S&P 500 over the long term.

Add it all up, and Microsoft has the potential to be a foundational holding for both growth and value investors alike. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 1 pick. appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• 3 ASX ETFs I’d buy right now to build wealth
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• What are the 5 top artificial intelligence (AI) stocks to buy right now?

Daniel Foelber has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. 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 recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning ASX dividend shares is one of the most rewarding things about investing in the stock market. However, Commonwealth Bank of Australia (ASX: CBA) shares aren’t particularly appealing to me for passive income right now.

It’s great being able to receive cash flow into bank accounts from our ownership of compelling businesses. I think it’s important to focus on businesses that are at valuations that make sense and to aim for investments that can grow in value.

CBA is not exactly firing on all cylinders right now. The lending industry is competitive, with this being an impact on both loan growth rates and the margins lenders can achieve.

In the first quarter of FY26, the bank reported cash net profit after tax (NPAT) of $2.6 billion, representing just 2% year-over-year growth. That’s not a compelling growth rate, nor is the current grossed-up dividend yield of 4.5%, including franking credits, particularly exciting.

There are quite a few ASX dividend shares I’d rather buy for passive income at the current valuations than CBA shares.

Centuria Capital Group (ASX: CNI)

This business is a fund manager that’s focused on managing commercial properties. While it may be best known for its office and industrial buildings, it’s also involved in areas like real estate finance, healthcare and agriculture.

I like the diversification of the business and how it’s benefiting from recent interest rate cuts, which is reducing the cost of debt as well as providing a tailwind for the company’s earnings through higher property valuations – this is boosting its ability to generate management fees.

In terms of passive income, the business paid an annual distribution per security of 10.4 cents in FY25, meaning it currently has a distribution yield of 4.9%.

The business is expecting to grow its operating earnings per security (OEPS) by 10% in FY26, which is a much stronger growth rate than what I’m expecting in FY26 from CBA.

I think this ASX dividend share is likely to deliver a stronger total shareholder return than CBA shares over the next three to five years. If the business continues making compelling property acquisitions, then it could be a pleasing market-beater, in my view.

WCM Quality Global Growth Fund (ASX: WCMQ)

Commonwealth Bank is heavily concentrated on the Australian (and New Zealand) economy. Why not look at investments that help provide global earnings diversification?

This exchange-traded fund (ETF) aims to invest in a portfolio of between 20 to 40 stocks that are quality global companies, primarily in the high-growth areas of consumer, technology and healthcare sectors.

The fund targets an annualised dividend yield of 5% for investors, which is a stronger yield than what CBA shares currently provide.

WCM looks for businesses that have expanding competitive advantages/economic moats and wants to see the businesses have a corporate culture that support the expansion of the economic moat.

The strength and performance of these underlying businesses have allowed the WCMQ ETF to deliver an average return per year of 15.9% over the last five years. That implies good growth of the ETF’s net asset value (NAV), allowing for a growing distribution from the ASX dividend share.

Of course, past performance is not a guarantee of future investment performance. But, with a global share market to hunt for ideas, the future looks promising. Its three largest holdings are currently AppLovin, Taiwan Semiconductor and Amazon.

The post Forget CBA shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

More reading

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• 10 most-traded ASX shares last week
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• BHP shares surge 8% on their way to reclaiming the No. 1 title from CBA
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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 positions in and has recommended Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) stock is up 37% year-to-date as we approach the end of 2025. That’s about double the S&P 500‘s total return this year, which is certainly an impressive gain. However, it’s a significant slowdown from previous years — 239% in 2023 and 172% in 2024. In fact, it has gained 1,260% over the past five years, including a painful period when it lost more than half of its total value in 2022.

Will that trend continue? And does it make sense to invest $1,000 in Nvidia stock today? 

The key to AI

Nvidia has had such an incredible run-up over the past few years because its graphics processing unit (GPU) chips are the most powerful chips to handle massive data loads for artificial intelligence (AI) creation. As hyperscalers build out huge AI businesses and develop data centers to generate the next wave of AI capabilities, Nvidia’s chips have been in high demand.

The company continues to roll out new and more powerful products to drive all the new and exciting AI development, but competition is heating up, with companies like Advanced Micro Devices and even Alphabet scoring new, important deals for their chips.

Given Nvidia’s central position in AI right now, it doesn’t look like there’s any near-term danger of losing its edge. It’s natural that as the industry explodes, other companies are going to make strides and also take some market share.

Which means that, as much as we can anticipate future challenges, Nvidia is still going to be a good investment. Even if it doesn’t deliver the same staggering gains it has in the past, investing $1,000 in Nvidia stock makes sense today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you invest $1,000 in Nvidia right now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Nvidia stock price slumped 12.6% in November. What’s next for the artificial intelligence (AI) behemoth?
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Jennifer Saibil 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 Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX lithium share Pilbara Minerals Ltd (ASX: PLS) has had an incredible performance in 2025 to date, rising by around 80%, as the below chart shows. You may be wondering what’s predicted for the business in the coming year.

PLS Group, which the company recently changed its name to, has benefited from a resurgence in investor confidence about the lithium industry after a difficult period for the supply and demand balance of the key battery commodity.

But, some analysts may now think that the Pilbara Minerals share price may have run too far. Let’s take a look at what’s expected for the business over the next 12 months.

Price targets for the Pilbara Minerals share price

A price target can be informative of whether analysts think a business is overvalued or undervalued.

The price target is where analysts think the share price will be in 12 months from the time of the investment call.

According to CMC Markets, analysts are quite mixed on PLS Group right now, with five buy ratings, five hold ratings and three sell ratings.

But, the average price target of $3.08 across those analysts is certainly negative. That implies a possible decline of 25% over the next year, which would be a significant decline to where it was a couple of months ago. That would still represent a sizable increase from where it was in December 2024.

What’s going on with the lithium price?

UBS recently released a note that talked about how there has been an increase in battery energy storage systems (BESS) demand:

Following a ~2-year bearish stance on lithium, we shifted to Neutral in August due to: ongoing supply disruptions, further anticipated disruptions to Chinese lepidolite producers (CATL) and resilient overall demand. In this note, we have materially increased our short to mid term lithium price deck following an 11% increase in lithium demand driven by BESS. We now envisage markets moving into deficit from 2026 onwards.

With spot now trading at US$1,170/t, we have lifted our lithium forecast to US$1,800/t/US$2,850/t/US$2,625/t SC6 CFR China in 2026/27/28 (+64%/148%/94% from prev. forecast), though we leave our long term incentive based price unchanged at US$1,200/t.

UBS also said that after coming off a low base, it has increased earnings projections in FY27 and FY28 by more than 100% for the pure lithium plays, including PLS Group, which is exciting for owners of Pilbara Minerals shares. This is a “steep turnaround from burning cash” as recently as the last quarter for some lithium miners, according to UBS.

The broker upgraded its global battery demand by up to 11% between 2025 to 2030. On the UBS’ global battery team numbers, BESS will account for around 31% (1.2TWh) of total battery demand by 2030, compared to around 20% today.

UBS currently has a neutral rating on Pilbara Minerals shares, with a price target of $4, implying little change in the valuation over the next 12 months.

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

More reading

• ASX mining shares dominate stocks hitting 52-week highs
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• Why Brightstar Resources, Immutep, Pilbara Minerals, and Race Oncology shares are roaring higher
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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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Tesla (NASDAQ: TSLA) might be one of the more difficult stocks to own comfortably due to the amount of volatility there has been in its share price, but it has been a huge winner for some investors over the years. Its successful phases have made it into one of the world’s most valuable companies, with a market cap of close to $1.5 trillion.

The electric vehicle (EV) maker’s stock is up by around 105% in the past five years, and it’s within reach of the all-time high it touched last December. Should investors buy Tesla while it’s below $500? 

Imagine a completely different future

The bullish view of Tesla is that it is transforming into a software, robotics, and artificial intelligence enterprise. This is precisely how CEO Elon Musk wants investors to think about the business. 

Tesla has long-term optionality with its robotaxi operations, which are currently carrying paying passengers in Austin and the San Francisco Bay Area in a controlled capacity, with more cities to come. The objective here is to get that business going in a lot more markets — not only in the U.S., but internationally as well. The premise assumes that as demand and usage pick up, costs as a share of revenues would come down. The best outcome would be for Tesla to generate a colossal amount of recurring, high-margin revenue from driverless cars.

Humanoid robots might be an even bigger opportunity — Musk estimates that business could help Tesla reach a market cap of $25 trillion. It appears that there could be a market for these devices among commercial clients that would use them in factory settings. There might also be demand from consumer households.

In short, a decade from now, Tesla might look totally different from how the company looks today. However, when looking strictly at its current situation, it’s not easy to always be optimistic. Tesla’s revenue growth has slowed dramatically due to a combination of intensifying competition, higher interest rates, and a public backlash among some consumers over Musk’s forays into politics. Profits have been under pressure, too: Its Q3 2025 operating margin of 5.8% was down sharply from the 10.8% margin it produced in the prior-year period.

Is Tesla stock overvalued or undervalued?

It can be difficult for investors to effectively gauge the valuations of a company like Tesla. Based on traditional metrics, like its price-to-sales ratio of 17 or the price-to-earnings ratio of 304, the stock is ridiculously overvalued. One would only expect investors to buy shares of a company trading at such lofty premiums if it were putting up remarkable financial performances, delivering monster growth and significant profits. Yet Tesla hasn’t been operating at a high level recently.

Viewed in this light, the shares are extremely expensive. But of course, Tesla is a story stock. The market’s actions today are defined by narratives, which can clearly have huge impacts on share prices. Tesla and Musk get so much attention for their innovativeness and forward-thinking that it makes sense that many investors are believers.

If Tesla’s self-driving vehicles and robots prove successful in a reasonable time frame, then the stock’s current valuation might very well end up looking like a bargain in retrospect. Earnings could grow substantially, lifting the stock up.

Whether it will achieve that favorable outcome, though, is far from clear. Tesla will need to execute in a near-flawless fashion, and not just from the technological and manufacturing perspectives. It will need cooperation from regulators and legislators. And there’s no certainty that its future products will see the type of customer adoption that the bulls predict.

Moreover, a critic could argue that Tesla’s current valuation essentially prices in a great deal of the optimistic forecast for success. Only investors who are able and willing to take on a lot of risk in their portfolios should even consider buying this EV stock now. While there is a chance that the investment could be a profitable one over the longer term, it’s impossible to accurately assess. Risk-averse investors would be better off avoiding Tesla at these levels.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy Tesla while it’s below $500? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla vs. Alphabet: Which is the better AI stock for 2026?
• If you’d invested $3,500 in Tesla 12 years ago, here’s how much you’d have today
• Billionaire Peter Thiel just sold Nvidia and Tesla for these other two “Magnificent Seven” stocks
• 2 reasons to distance yourself from Tesla in 2025, according to Warren Buffett logic
• Safe, routine, ready: Does that spell the end for Tesla’s run-up?

Neil Patel 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 Tesla. 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.

The share market has a long history of bouncing back from tough periods. Over more than a century, ASX stocks have delivered returns of roughly 10% per annum on average, even while enduring recessions, inflation spikes, rate shocks, and global turmoil.

But every now and then, certain companies emerge from a difficult year in far better shape than they entered it. And after a challenging 2025 for many high-quality businesses, a select group of ASX stocks is now being tipped to outperform not only the local market, but potentially global indices as well.

If you’re looking for standout ASX opportunities for 2026, these two names could be the ones to watch.

CSL Ltd (ASX: CSL)

CSL has had a bruising year, with investor sentiment hurt by Seqirus restructuring noise, tariff speculation, and questions around the margin recovery of the key CSL Behring business. Yet beneath the short-term issues sits one of the most successful Australian companies of the past three decades.

This is a business with enormous competitive advantages, entrenched global market share, and a long runway for growth across plasma therapies, vaccines, and emerging treatments. Analysts widely expect margins to normalise over the next couple of years and earnings growth to accelerate.

Importantly, CSL is now trading at one of its cheapest valuations in years. For a company that is historically priced at a premium, today’s discount offers long-term investors a window that doesn’t appear often.

UBS currently has a buy rating and $275.00 price target on its shares. This implies potential upside of over 50% for investors from current levels.

TechnologyOne Ltd (ASX: TNE)

Another Australian stock that could beat global markets in 2026 is TechnologyOne. It is a software powerhouse that has grown earnings for over 15 consecutive years. And despite delivering another robust year of recurring revenue growth in FY 2025, its share price has pulled back materially, creating an unusually attractive entry point.

With its software-as-a-service (SaaS) platform entrenched in government, education, and large enterprise customers, this ASX stock enjoys some of the stickiest revenues on the Australian share market. In addition, its margins are among the highest in the tech sector, and its shift to subscription income continues to strengthen its long-term earnings base. Throw in its UK expansion and management’s belief that it can double in size every five years, and you have a stock that could be a fantastic buy and hold pick.

The team at UBS is also feeling very bullish on this one. It recently put a buy rating and $38.70 price target on its shares. This suggests that upside of almost 40% is possible between now and this time next year.

The post Buy Australian: ASX stocks positioned to beat global markets next year appeared first on The Motley Fool Australia.

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.