Category: Stock Market

There are a good number of ASX 200 shares to choose from on the local market.

But which ones could be buys right now? Let’s take a look at three popular options and see if brokers rate them as buys, holds, or sells. Here’s what you need to know:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Morgans has been looking at this gaming technology company following its FY 2025 results. It was pleased with its performance and notes that its result was in line with expectations.

In light of this and recent share price weakness, the broker recently upgraded its shares to a buy rating with a $73.00 price target. It said:

We see no structural shift in market dynamics and remain comfortable with the outlook. ALL reiterated its qualitative guidance for constant currency NPATA growth in FY26 (MorgansF: +10%). Following the result, our EPSA forecasts decrease ~6% across FY26-27F. Given recent share price weakness and a more compelling valuation, we upgrade ALL from Accumulate to Buy, with our 12-month target price reduced to $73 (from $77).

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX 200 share that Morgans has been looking at is pizza chain operator Domino’s.

The broker was encouraged by its improving performance. And while its shares have rallied recently, Morgans still sees plenty of value here for investors. As a result, it has put a buy rating and $25.00 price target on its shares. It said:

DMP’s FY26 AGM update was positive, in our view, given the company is on track to exceed FY26 consensus NPAT, cost out was quantified, and its gearing metrics are improving. The trading update was weak, with Same-Store Sales (SSS) growth still negative; however, we think this is somewhat irrelevant while the business transitions to its new pricing strategy to drive higher margin sales for franchisees given the noise around the short-term volume impact of less discounting (i.e. lost sales were unprofitable anyway).

While DMP’s share price has recently increased ~55% off its lows on the back of potential corporate activity, the stock is still only trading on a FY26F PE of 16x which is a ~30% discount to CKF. With improving confidence in the turnaround, we continue to think the risk reward looks attractive from here. Maintain BUY.

Temple & Webster Group Ltd (ASX: TPW)

Over at Bell Potter, its analysts remain positive on this online furniture and homewares retailer following a selloff in response to its recent trading update.

It has put a buy rating and $19.50 price target on its shares. It continues to believe that Temple & Webster is well-positioned for long term growth. It commented:

Our views are unchanged of TPW’s ability to outperform over the long term as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, backed by a strong balance sheet (+$150m cash). Trading at ~2x EV/Sales post the ~40% correction in the share price from the recent peak, we see risk-reward heading into the Feb 1H result and continue to see a buying opportunity. Maintain BUY.

The post Buy, hold, sell: Aristocrat, Domino’s, and Temple & Webster appeared first on The Motley Fool Australia.

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• Should you buy Temple & Webster shares after the crash?

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up a modest 4% in the last year. 

This sector is heavily influenced by factors like inflation, interest rates, and CPI. 

But while much of the sector has been relatively flat in the past year, there are two clear standouts that have brought impressive returns. 

Eagers Automotive Ltd (ASX: APE)

The company is the largest automotive retailing group in the Australian market.

The company’s core business involves the ownership and operation of motor vehicle dealerships covering a diversified portfolio of automotive brands. Its range of products and services includes the sale of new and used vehicles, vehicle repair services, and parts, among others.

The Motley Fool’s Kevin Gandiya covered last month that Eagers Automotive has benefited significantly from the rise of the fast-growing Chinese electric vehicle brand, BYD. 

Eagers operates roughly 80% of the Australian dealerships that sell BYD cars.

12 months ago, Eagers Automotive shares were trading at approximately $10.98 each. 

Yesterday, these consumer discretionary shares closed at $29.58. 

That represents a rise of almost 170%. 

A hypothetical investment of $10,000 this time last year would now be worth almost $27,000. 

Autosports Group Ltd (ASX: ASG) 

Another consumer discretionary stock that has raced ahead of the market in the last 12 months is Autosports Group. 

While Eagers deals with new and used cars, Autosports Group specialises in luxury and prestige car brands. 

The company’s core business focuses on the sale of new and used motor vehicles. It also provides finance and insurance products on behalf of retail financiers and automotive insurers. 

The company has been expanding in the recent months, completing the acquisition of Mercedes-Benz Canberra and securing a prime Southport, Queensland site to develop a new flagship Mercedes-Benz facility.

12 months ago, Autosports shares were trading for $1.91 each. 

Yesterday, the share price closed at $4.52, which represents a rise of 142.36%. 

Based on these figures, a hypothetical investment of $10,000 a year ago would now be worth $23,665. 

Are either of these consumer discretionary stocks still a buy?

After rising significantly over the last year, many investors may feel they have missed the time to buy. 

Earlier this month, the team at Macquarie provided analysis on both stocks. 

The broker ultimately preferred Eagers Automotive shares due to the scale of its organic and inorganic growth opportunities. 

The broker had a price target of $29.98 on Eagers stock and $3.63 for Autosports Group.

This would indicate that Eagers is trading close to fair value, while Autosports Group is slightly overvalued at present. 

The post $10,000 invested a year ago in these consumer discretionary shares is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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’s parent company Motley Fool Holdings Inc. has recommended BYD Company. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many Aussie investors will already have exposure in their portfolio to international stocks from the US. 

But a new report from Wilsons Advisory has reinforced the case for targeting stocks outside the Australian and US markets. 

Tony Brennan, Chief Investment Strategist, said until this year, being concentrated in US equities within international portfolios produced better returns.

But this year, the US has underperformed the rest of the world, illustrating the benefits of being more diversified.

US stocks have provided prolonged success

In the report from Wilsons Advisory yesterday, the firm reinforced the success investors have had by targeting US stocks, particularly technology shares.

Brennan said this has been supported by a generally solid economy and boosted by a large corporate tax cut during the first Trump Administration. 

In the last decade, Europe had to contend with fiscal restraint after its sovereign debt crisis in 2012, the rupture of Brexit in 2016, and the war in Ukraine since 2022. 

Changing tides

Although the US and the rest of the world have faced different challenges over the past decade, this year both sides were hit by the same shock: the new US tariffs and resulting trade war.

Despite initial fears, after nine months it’s clear that economic damage from tariffs has been less severe than anticipated. Additionally, growth across major economies has held up better than expected.

The report also indicated that a key change this year is that the gap between US economic growth and growth in other major regions has narrowed.

International stock picks from Wilsons Advisory 

The report highlighted 9 international stocks that the firm believes offer exposure to similar structural growth themes as US peers, while providing valuation alternatives. 

After their remarkable success, many of the large US companies, particularly the large US tech stocks, are quite well known and well held by investors. So, in this report we highlight some major companies in other markets that could provide desired diversification for Australian investors.

The 9 international stocks are: 

• HSBC Holdings PLC (UK)
• Airbus SE (France)
• ASML Holding NV (Netherlands)
• L’Oreal SA (France)
• Roche Holding AG Genussscheine (Switzerland) 
• SAP SE (Germany)
• Siemens AG (Germany)
• Sony Group Corp (Japan)
• Tencent Holdings Ltd (Hong Kong). 

The report said Airbus, ASML, SAP, and Siemens deliver access to industrial automation, semiconductor infrastructure, and aerospace duopolies with strong pricing power. 

L’Oréal and Roche represent defensive quality with global market leadership in beauty and healthcare, delivering stable earnings with reduced cyclicality. 

Sony and Tencent provide exposure to Asian technology platforms at more attractive valuations than US counterparts.

HSBC offers global banking exposure at modest valuations relative to US and Australian banking peers.

How to gain exposure 

Investors looking to gain exposure to these international stocks can target each one individually. 

However, there are also ASX ETFs that include many of these companies. 

For example, the Vanguard FTSE Europe Shares ETF (ASX: VEQ) includes 7 of these companies that are based in Europe/UK.

This is the same for the iShares Europe ETF (ASX: IEU). 

Both funds are up 20% or more in 2025. 

The post Wilsons Advisory says target these 9 international stocks appeared first on The Motley Fool Australia.

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HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Bell 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 and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings, Roche Holding AG, and SAP. The Motley Fool Australia has recommended ASML. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of investment strategies. From income/dividend investing, investing for value, growth, passive and quality investing. 

Some investors look purely for stocks that are undervalued, others for steady income.

However the team at Betashares has given a clear roadmap of the principles behind quality investing. 

What is quality investing?

Quality investing is an investment strategy that focuses on buying shares of financially strong, well-managed companies with durable competitive advantages. 

According to Betashares, there are three key fundamentals to consider when targeting quality companies.

The first is high return on equity (ROE). 

Essentially, the ROE indicates how efficiently a company uses its equity financing to generate income. 

Having a high return on equity means a company is capable of effectively using shareholder equity to generate profits, has the potential to fund expansion without incurring excessive debt and possesses an efficient business model.

The second metric to assess is a company’s level of leverage. 

Leverage is when a company borrows funds (takes on debt) to invest. The goal is for the debt to be invested successfully, generating returns that exceed the cost of servicing the debt. 

You can measure this by looking at the debt-to-equity ratio (D/E). 

A high D/E ratio is a warning that the company is at risk of financial problems. However, a low D/E ratio is also not ideal. You want to see that a company is using debt responsibly, rather than avoiding it altogether. 

The final metric to consider in quality investing is earnings stability. 

While the previous two metrics measure profitability and financial strength, earnings stability shows whether a company can provide this over a long period of time. 

According to Betashares, earnings stability measures the consistency with which earnings have been generated over time. 

It can be measured by looking at how much a company’s return on equity (ROE) has deviated from its average level over the past five years. 

The more that yearly ROE figures deviate from the average, the less stable the company’s earnings are considered to be.

In simple terms, quality investing targets companies with a high return on equity, low levels of debt (and leverage) and stable earnings. 

When does it work best?

Research from Polen Capital indicates that quality companies tend to outperform, particularly during late-cycle and recessionary periods. 

In contrast, quality investments typically underperform when low interest rates and accommodative economic policy are dominant macroeconomic features. 

According to Betashares, quality companies are typically more resilient in a downturn. 

Belief in a quality investing style is embedded in the logic that companies with a high return on equity, low levels of debt (and leverage) and stable earnings are, by their very nature, traditionally more resilient in a downturn and provide strong returns over most of the cycle. Their strong balance sheets and consistent cash generation can provide a buffer when market conditions deteriorate.

Quality investing-focused ETFs

If this strategy aligns with your investment goals, you can apply it to individual companies and target those that are outperforming their peers. 

Another option for investors who may want to take the work out of finding individual companies to invest in are ETFs that group these companies, such as the following:

• Betashares Australian Quality ETF (ASX: AQLT) – It reweights the largest Australian companies by quality metrics – high return on equity, earnings stability, and low levels of leverage, rather than market capitalisation.
• Betashares Global Quality Leaders ETF (ASX: QLTY) – Comprises 150 of the highest quality global companies.
• Betashares Global Quality Leaders ETF – Currency Hedged (ASX: HQLT) – Currency hedged version that may attract investors seeking to reduce exchange rate volatility.

The post The fundamentals behind quality investing according to experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 pounce on Nick Scali Limited (ASX: NCK) shares.

That’s the view of analysts at Bell Potter, which believe the ASX 200 stock is good value despite rising by almost 60% this year.

What is the broker saying about this ASX 200 stock?

Bell Potter is feeling positive about the furniture retailer due largely to its industry leading margins and global expansion. It believes this means the ASX 200 stock deserves its premium valuation and has decribed it as an “unmatched furniture retailer.” The broker said:

NCK is one of Australia’s largest furniture retailers competing within the middle to upper end of the Australian furniture market and growing its global presence via the UK entry. NCK is currently trading on ~26x FY26e P/E (BPe) which we think is justified given industry leading EBIT margins within the global peer group of high-quality retailers/vertically integrated brands in the broader category that we consider. NCK provided a strong 1H26e guidance of 7-9% revenue growth for its ANZ business, while for the overall group NPAT of $33-35m and we sit towards the mid-point of the range.

Its analysts also highlight that Nick Scali has a significant opportunity to grow its store network in the lucrative UK market. It has been busy sizing up the market and sees scope for the company to increase its store footprint threefold. It adds:

We size NCK’s UK market opportunity based on the market fragmentation and the average size of close peers. We see a long-term potential of ~60 stores for the brand in the UK which is a ~3x opportunity (vs current footprint) offering the highest growth for the business.

As NCK UK revenues grow over the next 7+ years, we expect continuing earnings leverage over its cost base which should see a stronger uplift in earnings over the longer term. Early success of the Nick Scali product sees the offering appearing to be unique in the market and resonating well supported by the quality and value offered at relevant price points vs peer offerings.

Initiate with buy rating

According to the note, the broker has initiated coverage on Nick Scali’s shares with a buy rating and $27.00 price target. Based on its current share price of $23.38, this implies potential upside of 15.5% for investors over the next 12 months.

In addition, Bell Potter expects a 2.7% dividend yield in FY 2026, which lifts the total potential return to offer 18%. It concludes:

We initiate coverage of Nick Scali with a Buy rating and PT of $27.00 based on a blend of P/E (23x target multiple on a FY27e basis) and DCF (WACC ~9%, TGR 3.5%) methodologies. We see steady market share in the core Nick Scali brand somewhat offsetting a less conducive macro environment, while further growth via the Plush brand over time in Australia and a larger opportunity in the UK offering sufficient growth levers to the company.

We see this backed up by the high-quality earnings model where NCK leads in its global peer group of household goods retailers, in addition to being the most attractive goods retailers within the ASX200 (on a growth adjusted basis). We see catalysts for 1H earnings driven by supportive 2Q26 comps.

The post Buy alert! Bell Potter says this ASX 200 stock is ‘unmatched’ 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Small-cap stock Matrix Composites & Engineering Ltd (ASX: MCE) is in focus after its share price soared 9.5% higher on Thursday. 

The company provides subsea umbilicals, risers and flowlines (SURF) buoyancy and corrosion protection solutions to offshore oil and gas projects.

Based on an updated price target from Bell Potter, it still has significant upside.

Why did shares rise on Thursday?

Markets reacted positively to the company’s 2025 AGM, which included a positive FY26 outlook. 

The company announced $70m of FY26 secured revenue (including YTD sales), comprising $65m of contracted Subsea work. 

It reiterated a strong quotation pipeline for drilling and SURF markets, with opportunities currently under negotiation likely to add to the FY26 orderbook upon conversion.

The team at Bell Potter stated that, in addition, revenue, EBITDA, and profitability will be weighted towards 2H FY26, with EBITDA expected to be positive in FY26. 

Why does this matter?

For a small-cap stock, guidance that EBITDA will be positive in 2026 is a big deal because it signals a fundamental shift in the company’s financial health and risk profile.

Essentially, it marks a transition from “cash-burn” to “self-funding.”

Many small-caps – especially in tech, biotech, clean energy, and early-stage industries – operate with negative EBITDA, meaning their core operations are unprofitable.

A move to sustained positive EBITDA in 2026 is significant because, although the company has hovered around breakeven and even turned positive before, long-term projections from Bell Potter show a durable and expanding profitability trend. 

This shift signals that the business model is stabilising and scaling, reducing future funding risk and increasing investor confidence in lasting growth.

Is this small-cap stock a buy, hold or sell?

While the guidance of a positive EBITDA is good news, Bell Potter remains cautious about this small-cap stock. 

In a report from the broker yesterday, it maintained its hold recommendation, but lowered its target price to $0.26 (previously $0.28). 

Bell Potter said phasing of major work has driven a worse-than-expected impact on revenue, EBITDA and profitability in 1H FY26, driving a downgrade to our 1H FY26 EBITDA estimate from $1.8m to -$0.6m. 

On a positive note, it said a strong skew to 2H FY26 EBITDA and profitability should drive positive FY26 EBITDA (BPe $6.2m, +25% YoY). 

Matrix Composites & Engineering Ltd has flagged further pipeline opportunities that could support FY26 project deliveries upon conversion, potentially representing upside to our forecasts.

Matrix Composites & Engineering shares closed yesterday at $0.23 after the 9.5% jump. 

Based on the updated price target of $0.26, there is an estimated upside of approximately 13% for this ASX small-cap stock. 

The post Why did this small-cap energy stock just jump 10% higher? appeared first on The Motley Fool Australia.

More reading

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• Dividend investors: Top Australian energy stocks to buy in December
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Motley Fool contributor Aaron Bell 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.

Australian energy stocks can be seen as some of the most appealing ASX defensive shares for dividend investors because of their ability to make fairly consistent profits and pay passive income.

There are a variety of types of investments in that space, including energy generators, retailers, and commodity producers.

The two businesses I’ll talk about are two of the largest energy generators and retailers in Australia: AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG).

Let’s start by looking at the passive income potential of both businesses in FY26.

Australian energy stock dividend potential

Both businesses do not trade on a high price-earnings (P/E) ratio, which means they are more likely to deliver a pleasing dividend yield for shareholders.

The projection on CMC Markets suggests both businesses are capable of delivering a high dividend yield for investors in the 2026 financial year.

Origin Energy is forecast to pay an annual dividend per share of 60 cents in FY26. This translates into a potential grossed-up dividend yield of 7.4%, including franking credits.

AGL is forecast to pay an annual dividend per share of 46 cents in FY26. That prediction equates to a possible grossed-up dividend yield of 7.3%, including franking credits.

There are not many ASX blue-chip shares forecast to pay a dividend yield of more than 7% in FY26 because of a combination of higher valuations (pushing down on yields) and the iron ore price not being particularly strong.

Why both ASX shares could be solid longer-term buys

Australia always needs energy – Origin and AGL can both produce it and sell it.

Energy demand may grow significantly in the coming years if the number of data centres in the country continues to grow. They are very energy hungry because of the growing usage of AI. More electric vehicles on the road may also lead to higher electricity demand.

I like that the Australian energy stocks are investing in renewable/storage areas like batteries and hydro because that can help them generate earnings during times when it’s most needed (and most valued), such as during evening/night hours and peak times.

Origin also has a compelling investment in a business called Octopus Energy, which is growing strongly in the northern hemisphere.

In the three months to September 2025, the Octopus Energy retail business added approximately 560,000 customers, with 230,000 in the UK and 330,000 outside of the UK. It now has 1 million customers in Germany, with 100% growth in the last 12 months.

Out of the two, I think Origin is more appealing because of its exposure to Octopus Energy, which continues to grow rapidly and could drive the value of Origin shares higher in the coming years. On the dividend side of things, their yields are very similar.

The post Dividend investors: Top Australian energy stocks to buy in December 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.

Droneshield Ltd (ASX: DRO) shares closed 7.83% lower on Thursday afternoon, at $2.00 a piece. That means the stock has crashed nearly 70% since hitting an all-time peak in early October. The shares are now 166.67% higher for the year-to-date.

Recently, Droneshield shares have been under considerable pressure. From its US CEO resignation to employee share sell-offs and even an accidental ASX release, Droneshield shares have attracted a lot of not-so-positive attention. 

Sure, the 166.67% annual gain is still impressive, but I have my eye on another AI-centred defence stock which I’d buy instead.

Another ASX defence stock tipped to boom

Electro Optic Systems Holdings Ltd (ASX: EOS) is an Australian company that develops and produces advanced electro-optic technologies. The company’s products are used in space information and intelligence services, as well as in optical, microwave, and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air applications.

The group’s reportable segments are communication, defence, and space, but the company generates the highest portion of its revenue from its defence business. Like Droneshield, Electro Optic’s defence segment is involved in developing, manufacturing, and marketing advanced fire control, surveillance, and weapon systems to approved military customers. 

I believe any investor seeking exposure to the rapidly expanding market should consider Electro Optic shares as an alternative to Droneshield. As ongoing geopolitical uncertainty continues to put pressure on countries worldwide, and governments step up their spending on defence systems, Electro Optic Systems is well-positioned to snap up a good portion of the demand.

Is there any upside ahead for the defence stock?

Tradingview data shows that out of three analysts with a rating on the shares, all of them consider Electro Optic Systems a strong buy. The maximum target price for the shares is as high as $11.18 per share. This implies a potential upside as high as 149.55% over the next 12 months, at the time of writing. 

Bell Potter is slightly more conservative, with a buy rating and a $8.10 price target on Electro Optic shares. The broker stated that a potential peace deal between Ukraine and Russia could impact its share price in the near term. But it doesn’t feel a deal will affect its growth forecasts. As a result, it is urging investors to pick up Electro Optic Systems shares now. The Bell Potter team also noted that the company recently completed the acquisition of the MARSS Group’s drone interceptor business, which it said is a good move by management given recent defence trends.

The post Forget Droneshield shares, I’d buy this ASX defence stock instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. 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.

Talk of an S&P 500 Index (SP: .INX) (and ASX ) stock market crash has been persistent over 2025 to date. Not that this sentiment is uncommon. Whenever markets have an uncommonly good year, as they have in both 2024 and 2025, investors start to get nervous.

To be fair, there have arguably been more reasons for investors to be fearful this year than there have been for a while. Many of them can be attributed to the erratic trade and economic policies coming out of the United States of America.

President Donald Trump has openly mused about undermining the US Federal Reserve by sacking board members, and the governor Jerome Powell, for one. Then there was the shambolic ‘Liberation Day’ tariff announcements, which caused a dramatic stock market dip until they were wound back a week or so later.

Investors have also had an uncertain interest rate and inflation environment to navigate. Interest rate sentiment has seemingly swung from ‘the next move will be down’ to ‘rates might rise’ and back again.

Amid all this uncertainty, the S&P 500 (particularly any stocks associated with the ‘AI boom’), the S&P/ASX 200 Index (ASX: XJO), gold, and Bitcoin (CRYPTO: BTC) have all hit new record highs, with plenty of bumps in between.

Over just the past month, the S&P 500 has both fallen more than 5% and rebounded by 4.2%.

No one seems quite sure what’s around the corner.

And, the truth be told, no one is. None, not Warren Buffett, Jerome Powell, Donald Trump, your neighbour Joe, or this writer, can predict what the markets will do next. The next market correction or crash is always inevitable. We just don’t know when it will occur.

All we can do is prepare.

How to prepare for an S&P 500 market crash

I think the best way to prepare for a market crash is by auditing your own investments. The whole point of investing is aligning our financial interests with companies that will be larger in the future than they are today. If you don’t believe a company is set for future prosperity, it shouldn’t be in your portfolio. If you do think a company is setting itself up for future success, it should be. Regardless of what the S&P 500, the price of gold, or any other metric is doing.

For example, I own companies that I would be comfortable, and more than happy to hold during a market crash. Names such as Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Mastercard Inc (NYSE: MA), and Procter & Gamble Inc (NYSE: PG) have strong balance sheets and fantastic, resilient business models. They will do just fine in any economic conditions. In my view, anyway. No matter what happens in the next year, I have literally put money on them being larger and more successful in the years and decades to come.

There are two things we do know about the stock market, both the S&P 500 and the ASX. The first is that it goes up far more often than it goes down. The second is that it has never failed to exceed a previous all-time high.

I think all investors would be better off if they kept those facts in mind and worried less about when the next market crash will be.

The post Is the S&P 500 set for a crash? Here’s my plan for the US stock market appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Mastercard, Procter & Gamble, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Mastercard, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Bitcoin and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mastercard and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts are always on the lookout for opportunities, and there are some very exciting ASX growth shares that have been rated as a buy.

We’re going to examine two businesses that have been rated as buys by multiple analysts. While being highly rated isn’t a guarantee of strong performance, I think it could be an encouraging sign of potential.

The financial power of both ASX growth shares is expected to increase strongly in the coming years, which could lead to very good returns.

Catapult Sports Ltd (ASX: CAT)

Broker UBS describes Catapult as a sports technology company with two core segments: wearable tracking technology (performance and health) and video software analysis (tactics and coaching).

The core goals of the company are to help athletes and teams optimise performance, prevent injuries, and improve return-to-play rates.

UBS currently has a buy rating on the business, with a price target of $6.70. That suggests a potential rise of 25% over the next year.

The recent FY26 first-half result from the business showed UBS that the result was another confirmation of the broker’s positive growth-based investment thesis.

UBS noted that annualised contract value (ACV) grew by 20% year over year to US$116 million. The wearables segment was the standout, delivering its highest-ever period of new pro team logo wins (276).

The broker also noted that the ASX growth share’s operating leverage was again impressive, with an incremental margin of 56%, as the business continues to scale profitably. Revenue growth alongside operating leverage can help cash operating profit (EBITDA) grow at more than 30% per year, which could mean it reaches US$45 million of A$69 million by FY28.

UBS explained why it’s confident in its growth expectations:

We’ve undertaken an extensive analysis into 3 key areas that support our forecasts and investment thesis.

(1) The remaining penetration opportunity is still significant and growing for Catapult’s wearables product after having been in the market for over 10 years now.

(2) The ability for Catapult to cross-sell its video software to existing customers. We undertook a number of channel checks that show the uniqueness and differentiation of being able to integrate wearables physiological data with video analysis.

 (3) Breakdown of key financial line items including GP margin, Variable costs, Fixed costs, and capex, which support our views around incremental Cash EBITDA margins.

Siteminder Ltd (ASX: SDR)

Siteminder is a software business that offers accommodation providers a range of solutions across the guest lifecycle, including distribution, bookings, operations management, and business intelligence.

UBS rates this ASX growth share as a buy, with a price target of $8.30. That implies a possible rise of 27% over the next year.

According to UBS, there were several positives in the Siteminder FY25 result, including achieving positive free cash flow, an acceleration of annual recurring revenue (ARR) to 27% with strong growth in the core business and additional smart products, rising profit margins, and profitable growth.

UBS likes the ASX growth share due to its market leadership position in a tech market with numerous greenfield opportunities. The broker thinks the company can achieve a revenue compound annual growth rate (CAGR) around 25% between FY25 to FY28.

Excitingly, UBS suggests the company could reach 73,000 customers (of a total of 950,000 addressable properties) by FY28 and 14% in the longer-term. This bodes well for the company’s long-term potential.

The post Experts rate these 2 ASX growth shares as buys for December! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool Australia has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.