I think most ASX dividend investors would agree that seeing a popular ASX income share trading with a dividend yield of 8.5% is well worth a second look. That’s exactly what’s on display with WAM Capital Ltd (ASX: WAM) shares right now.

Yep, WAM Capital shares are currently trading at a price of $1.82. At this price, this dividend share and listed investment company (LIC) is indeed trading with a trailing dividend yield of 8.49% at the time of writing.

That’s more than double what you could expect from a term deposit or savings account right now. And well north of what most popular ASX dividend shares are paying investors at the moment.

So does this make WAM Capital shares a slam-dunk buy for income?

As with any investment offering such an outsized yield, it’s worth digging a little deeper to determine whether this is a compelling cash flow opportunity or a dreaded dividend trap.

Is the 8.5% yield on WAM Capital shares too good to be true?

Well, WAM Capital shares’ 8.5% yield is indeed legitimate. The company paid out two dividends over 2025. The interim dividend that was doled out in April, as well as October’s final dividend, were both worth 7.75 cents per share. That annual total of 15.5 cents per share gets us to that 8.49% yield at the current $1.82 WAM Capital share price. In an added bonus for investors, those payments also came with some franking credits attached. Both payments were partially franked at 60%.

However, as any good dividend investor knows, dividend yields represent the past, not the future. For WAM to truly be a slam-dunk buy for income, investors would need to have a high degree of confidence that this LIC is able to continue to fund annual dividend payments of at least 15.5 cents per share for the foreseeable future. And that’s where some red flags start to pop up.

Each month, WAM Capital tells investors how much cash it has in its ‘profit reserve’, which funds its dividends. This profit reserve is filled by both the underlying dividends that WAM Capital receives from its portfolio, as well as the proceeds of stock sales.

As of 31 December, this profit reserve stood at 21.1 cents per share. That means that WAM Capital only has enough cash to cover its payouts for about 18 months. As such, future dividends are highly dependent on this company’s ability to continue to pick the right stocks.

Risk and reward

Now, it could get lucky. But there’s also not much of a cushion for mistakes or misfortune. And unfortunately, WAM Capital’s recent share price track record is not fantastic. If you had bought shares of this company five years ago today, you would have lost 18.5% of your capital investment. Over that same period, the S&P/ASX 200 Index (ASX: XJO) is up a healthy 35% or so.

The market doesn’t let high-quality dividend payers sit with an 8.5% dividend yield for long. As such, the market consensus is that WAM Capital’s dividend is highly likely to be unsustainable and that this stock is a high-risk investment. Now, things could work out well for WAM Capital shares. But they might also continue to go pear-shaped. And based on this company’s recent performance, it’s not a bet I’d be willing to take.

The post Does an 8.5% yield make WAM Capital shares a slam-dunk buy? 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) have pulled back over the past week, sliding almost 10% to around $9.69 at the time of writing.

That dip comes after an extraordinary run. EOS shares are still up more than 700% over the past year, making it one of the ASX’s standout performers.

After a move like that, some profit-taking from short-term traders was inevitable.

What matters the most is that nothing has changed inside the business.

Let’s take a closer look.

A contract book that keeps growing

This week’s pullback followed EOS’ latest quarterly update, which met expectations but did not deliver a fresh surprise.

However, the numbers themselves still point in the right direction.

The standout figure remains EOS’ contract backlog, which climbed to around $459 million at the end of December. That marks a sharp increase over the past year and provides clear revenue visibility into 2026 and beyond.

During the quarter, EOS continued delivering remote weapon systems across multiple regions, including Australia, Europe, North America, and the Middle East. Manufacturing activity lifted as production rates increased, and customer receipts jumped sharply as more contracts moved into the delivery phase.

That translated into positive operating cash flow for the quarter, a key milestone after years of heavy investment. Cash on hand also rose to more than $100 million, leaving the balance sheet in a much stronger position.

Why investors are focused on what comes next

What keeps investors interested is not just what EOS has already delivered, but what could come next.

Management confirmed it is in advanced discussions with several customers around high-energy laser systems and expanded counter-drone capabilities. These programs are moving beyond development, with EOS demonstrating working systems and progressing toward operational deployments.

There has also been ongoing speculation around a potential South Korean contract, following recent conditional agreements and inspection milestones. While nothing has been confirmed, any conversion into a firm order would likely be a significant sentiment boost.

More broadly, rising global tensions continue to support higher defence spending. Counter-drone systems have shifted from optional to essential, and EOS operates in a niche with relatively few credible competitors.

My Foolish take

After a 700% run, some volatility is normal. A 10% pullback looks far more like a reset within a strong uptrend than the start of any meaningful reversal.

EOS has moved into execution mode, with positive cash flow, a deepening contract book, and clear visibility as production scales. With multiple potential contract announcements still ahead, the setup increasingly favours upside rather than downside.

Looking at the long-term outlook, this dip looks like a chance to add exposure at more attractive levels.

The post This ASX defence stock is down 10% in a week. Is the next leg higher already lining up? 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 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.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.47% for the day at $150.77 a piece, at the time of writing. For the year to date, the shares are down 6.42% and they’re 5.34% below this time last year.

In 2025, CBA shares enjoyed a strong share price rally, peaking at an all-time high of $192 per share in June. But strong headwinds sent the share price plummeting. 

This week, the banking giant dropped out of first place as the largest stock on the S&P/ASX 200 Index (ASX: XJO). BHP Group Ltd (ASX: BHP) shares crossed over $50 a share for the first time in more than a year yesterday. Although CBA stock is also in the green at the time of writing, BHP’s move has pushed the miner to a market capitalisation of just over $253.5 billion. CBA is now in second place with a value of around $251.9 billion.

Now the question is, is it time to sell up? Or is there any upside ahead for CBA shares in 2026?

CBA shares: Buy, hold or sell for 2026?

I personally think CBA shares could crash below $100 this year. I’d look at potentially selling up before the downturn accelerates further.

Analysts are pessimistic about the outlook for CBA shares too. TradingView data shows that 13 out of 15 analysts have a sell or strong sell rating on the banking giant. The average target price is $124.60, which implies a potential 17.18% downside at the time of writing. 

But some thing the share price could slump even lower to $99.81 a piece. That implies a 33.54T downside at the time of writing.

Why is sentiment so negative?

The issue is, CBA’s share price is overvalued versus its peers and the bumper price tag isn’t supported by the bank’s earnings results or business fundamentals. CBA’s current price to earnings (P/E) ratio, at the time of writing, is 24.86, which is much higher (and therefore more expensive) than other major banks.

For comparison, ANZ Group Holdings Limited (ASX: ANZ)’s P/E ratio is 18.43, National Australia Bank (ASX: NAB)’s P/E ratio is 19.18 and Westpac Banking Corp (ASX: WBC)’s P/E ratio is 19.43.

Not only is the valuation high, but CBA is facing ongoing net interest margin pressure due to intense market competition in home loan lending and deposit products, and also regulatory changes. 

And not to mention, it looks like the Reserve Bank will keep the cash rate on hold for an extended period in 2026, or even hike rates. This puts even more pressure on banks to compete.

The post Should I sell my CBA shares in 2026? 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 no position in any of the stocks mentioned. 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.

WA1 Resources Ltd (ASX: WA1) has delivered another busy quarterly update, yet the share price reaction has been relatively modest.

WA1 shares are up 1.51% to $18.14 at the time of writing. Zooming out, the stock is still nearly 10% lower than this time last year, even as activity ramps up at the Luni niobium project.

Here is what the company reported.

Drilling delivers standout niobium grades

The key highlight from the quarter was another strong set of drilling results from the Luni Niobium Project in Western Australia.

WA1 reported further infill and extensional drilling across high grade zones, with results continuing to exceed expectations.

Some of the standout intercepts included 67.3 metres at 5.4% Nb2O5, including a higher grade core of 30 metres at 9.8% Nb2O5. Additional holes returned 28.1 metres at 4.6% Nb2O5 and 36.5 metres at 2.9% Nb2O5.

Importantly, drilling to the east of Luni extended mineralisation beyond the current mineral resource envelope. That included wide intercepts of 73 metres at 1.8% Nb2O5 and 35 metres at 3.2% Nb2O5, pointing to potential future resource growth.

In total, around 35,000 metres of drilling was completed during 2025, with the results expected to feed into an updated mineral resource estimate later this year.

Major Project Status adds momentum

WA1 also confirmed that the Luni Niobium Project has been granted Major Project Status (MPS) by the Australian Federal Government for an initial 3-year period.

This designation recognises Luni as a project of national significance and provides WA1 with coordinated access to federal agencies through the Major Projects Facilitation Agency.

At the same time, pre development works continued on site, including construction of a temporary airstrip and completion of bore installation and pump testing to support hydrogeological studies.

A very strong balance sheet

The company finished the December quarter with roughly $138.5 million in cash and no debt. Based on current spending levels, WA1 estimates it has close to 10 quarters of funding available, giving it significant flexibility to progress studies without near term capital raising risk.

Quarterly exploration and evaluation spend came in at $13.4 million, with most of that directed toward drilling and on-site programs.

What to watch next

While WA1 shares remain below last year’s levels, operational momentum at Luni continues to build.

The market will now be watching for an updated resource estimate and further drilling success. Progress on development studies could be key to unlocking the project’s longer-term value.

WA1 remains a stock worth watching this year.

The post This ASX stock just delivered more standout niobium results. Why is the market still on the fence? 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.

ASX Ltd (ASX: ASX) shares are slightly lower today, extending a run that’s left the stock down around 12% over the past year and down 25% over the last 5 years.

It’s a situation that at one point would have been very hard to believe, given the ASX’s long-admired status as a monopoly with a significant moat.

But of course, the ASX has faced its fair share of challenges, including a slowdown in the IPO market, regulatory challenges, significant IT capital expenditure requirements, and a rising cost base.

Despite all this, today’s announcement confirmed that the ASX is still growing revenues, remains highly profitable, and continues to generate strong cash flows. But the market’s response tells us that more needs to be done before investors rush back in.

What is the takeaway from today’s announcement?

The key takeaway from today’s announcement is that ASX’s cost base is moving structurally higher. Management lifted FY26 expense growth guidance, largely due to heavier investment in technology, risk management, and governance following the ASIC Inquiry. These aren’t one-off costs that disappear next year. They reflect a reset in how ASX must operate as a critical national infrastructure.

In other words, ASX isn’t choosing to spend more to chase growth. It’s spending more to meet a higher regulatory and operational standard.

That distinction matters.

The ASX remains an exceptional business by most measures. Operating margins are still above 55%, net profit margins are around the mid-40s, and earnings per share has held up well over time. Few companies on the ASX can match that level of consistency or pricing power. Dividends also remain solid, and cash generation is dependable.

But the direction of travel has changed. Margins have gradually drifted lower over the past few years, returns on equity have flattened, and more capital is being tied up in systems, compliance, and buffers rather than flowing through to shareholders.

The market is responding by applying a lower valuation multiple than it once did.

A cheaper stock?

At roughly 20 times earnings, the ASX now trades below its own historical averages. On the surface, that looks cheaper. But cheaper doesn’t automatically mean undervalued. It can also mean expectations have reset.

The market no longer sees ASX as an unencumbered monopoly with expanding returns. It increasingly looks at it as a high-cost base and highly regulated infrastructure asset. One that has very high-quality fundamentals, is very reliable, but has capped upside.

That helps explain why solid results haven’t translated into share price momentum.

Despite all that, the ASX isn’t broken. It’s evolving, and investors are being asked to recalibrate what they can expect in return.

Today’s announcement reinforces the view that the ASX’s future is about building stability and resilience, not margin expansion. For investors, that shifts the story from growth to durability, and the share price is adjusting accordingly.

Perhaps at some point, cheaper will become cheap enoug,h and investors will rush back in.

The post ASX Limited shares keep getting cheaper, but the market still isn’t convinced appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

Domino’s Pizza Enterprises Ltd (ASX: DMP) has announced further changes at Board level, appointing a new Independent Non-Executive Director while saying farewell to a long-serving member of its Board.

The moves come as the pizza chain continues to reshape its leadership team amid a broader operational and strategic reset.

What did Domino’s Pizza Enterprises announce?

Domino’s today announced:

• Judith Swales has been appointed as an Independent Non-Executive Director, effective 24 February 2026
• Longstanding director Grant Bourke will retire from the board on the same date, after nearly 25 years of service
• A search is underway for an additional Non-Executive Director as part of the board’s ongoing renewal process

What else should investors know?

Judith Swales brings extensive experience across large, consumer-facing organisations, both as an Executive and a Director. She is currently Non-Executive Chair of Super Retail Group and has previously held senior leadership roles including as CEO, Global Markets at Fonterra, Managing Director of Heinz Australia, and CEO and Managing Director of Goodyear Dunlop Australia and New Zealand.

She has also served on the boards of Virgin Australia, DuluxGroup, and Foster’s. Ms Swales will join Domino’s Audit and Risk Committee, Nomination, Culture and Remuneration Committee, and Independent Board Committee

Grant Bourke’s retirement marks the end of an era. He joined Domino’s as a franchisee in 1993, became a director in 2001, and played a role in the company’s ASX listing in 2005. Over his career, Bourke also held senior operational roles, including Managing Director of Europe and Head of Corporate Store Operations in Australia and New Zealand, before serving as a Non-Executive Director for almost two decades.

What did Domino’s management say?

Executive Chairman Jack Cowin paid tribute to Bourke’s contribution and welcomed the new appointment.

I have been fortunate to have worked alongside Grant for more than 30 years and throughout he has demonstrated his passion for the Domino’s brand, our franchise partners, and the potential of this business.

On Swales’ appointment, Cowin added:

Judith is one of the most experienced retail executives and directors in Australia, and will add her expertise in large-scale operations, brand stewardship and governance to our deliberations.

What’s next for Domino’s Pizza Enterprises?

These board changes follow an announcement earlier this month of new executive leadership roles, including a new CEO for Australia and New Zealand and expanded responsibilities for the Group CFO, as Domino’s works through a broader leadership transition.

The board says progress continues on the search for a permanent Group Chief Executive Officer, with further updates expected in due course. Investors will be watching closely to see whether the refreshed board and executive team can stabilise performance, rebuild franchisee confidence, and return the business to more consistent growth.

Domino’s Pizza Enterprises share price snapshot

Over the past 12 months, Domino’s Pizza Enterprises shares are down around 22%, underperforming the ASX 200 in that period.

The post Domino’s Pizza announces board refresh as turnaround continues appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

DroneShield Ltd (ASX: DRO)

According to a note out of Bell Potter, its analysts have retained their buy rating and $5.00 price target on this counter-drone technology company’s shares. This follows the release of another strong update from DroneShield this week. Bell Potter notes that the company’s sales growth was stronger than it was expecting. And while its sales pipeline has shrunk since October, it isn’t concerned. It believes this reflects the loss of low probability contracts or potential contracts that have been reduced in size. Outside this, the broker believes the company has a market leading offering and a competitive advantage owing to its years of battlefield experience. This bodes well for 2026 given how Bell Potter believes this year will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending. The DroneShield share price is trading at $4.00 on Wednesday afternoon.

Life360 Inc. (ASX: 360)

A note out of Citi reveals that its analysts have retained their buy rating on this location technology company’s shares with a reduced price target of $40.75. The broker was pleased with Life360’s fourth quarter and full year update, highlighting that it was stronger than expected with monthly active users (MAUs) and guidance for FY 2026 surprising to the upside. The latter includes guidance for 20% growth in MAUs, which Citi believes should ease concerns that its user growth was slowing. Overall, it thinks the result was strong and investors should be snapping up shares at current levels. The Life360 share price is fetching $28.67 at the time of writing.

Light & Wonder Inc (ASX: LNW)

Analysts at Morgan Stanley have initiated coverage on this gaming technology company’s shares with an overweight rating and $220.00 price target. The broker believes that recent developments position Light & Wonder to grow quicker than the industry over the medium term. In light of this and its attractive valuation, Morgan Stanley sees potential for a material re-rating in its valuation in the near term. This will especially be the case if the company executes its growth strategies successfully. The Light & Wonder share price is trading at $163.81 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Life360, and Light & Wonder Inc. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in ASX small-cap stock Plenti Group (ASX: PLT) are down around 1.25% today, despite the fintech lender delivering another strong quarterly update.

By almost any measure, the numbers looked good so why was the reaction muted today?

A strong quarter with record loan originations

Plenti’s third-quarter update showed the business continuing to fire on most cylinders.

Loan originations reached $480 million, marking the fifth consecutive record quarter and representing 25% growth year on year, even with fewer business days in the quarter. The total loan portfolio climbed to $2.98 billion, up 24% from a year ago, and the company has already hit its $3 billion FY26 target ahead of schedule.

Revenue rose 22% year on year to $79.9 million, implying an annualised run-rate of around $320 million. Importantly for a lender operating in a higher-rate environment, credit quality remained strong, with net credit losses falling to 91 basis points and arrears staying low.

On the funding side, Plenti completed its largest-ever automotive ABS transaction during the quarter, securing its tightest pricing since 2021. This is a good mark of confidence from debt markets.

So why did the shares fall?

The likely explanation isn’t the headline numbers, but the developing narrative around interest rates, changes in management, and broader share price consolidation.

Management flagged that rising market funding costs during the quarter led to a temporary compression in margins on new loan originations.

While Plenti has already clawed back some of that margin through repricing (and volumes have remained robust), the update served as a reminder that funding costs remain a key swing factor for lenders.

It doesn’t help that today’s inflation/CPI update strengthened the case for the RBA to increase the cash rate, which could increase funding costs.

Another possible explanation for today’s dip in Plenti shares was the confirmation that the Chief Financial Officer will depart, with a replacement announcement expected shortly.

While the transition appears orderly, CFO changes can sometimes introduce short-term uncertainty.

In other words, today’s dip looks less like a reaction to weak execution and more like a bout of near-term caution after a strong run.

Foolish bottomline

Despite today’s pullback, Plenti’s underlying trajectory appears to be largley intact.

Investors who zoom out will likely still see some positive signs of Plenti’s progress, and the market verdict over the last 12 months has been flattering with Plenti shares up roughly 56% over that period.

That comfortably outperforms the ASX All Ords, but what comes next is more important.

Plenti Group is scaling rapidly, hitting major portfolio milestones earlier than planned, maintaining disciplined credit standards, and continuing to improve profitability as it grows.

With shares already up more than 50% over the past year, some consolidation along the way shouldn’t come as a surprise.

The post This ASX small-cap stock is up 56% in a year, so why did shares fall after today’s update? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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 Plenti Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Metals X Ltd (ASX: MLX) share price is edging lower today, despite the miner releasing a closely watched December quarter update.

At the time of writing, the Metals X share price is down 2.17% to $1.262.

That pullback comes after an extraordinary run. Metals X shares are still up roughly 175% over the past 12 months, helped by surging metal prices and a sharp turnaround at its core tin operations.

A record quarter at Renison

The key update came from the Renison tin operation in Tasmania, which Metals X owns 50% of through its joint venture with Bluestone Mines.

Renison delivered its second-highest quarterly production on record, producing 3,319 tonnes of tin-in-concentrate. That was a 46% increase from the prior quarter and comfortably above recent run rates.

December was particularly strong, with monthly production of 1,318 tonnes, the highest ever achieved at the site. The company credited higher mining rates, improved plant stability, and stronger metallurgical performance.

Mill recovery improved to 82% for the quarter, up from 76% previously, placing the December month among the strongest metallurgical periods on record.

Cash flow jumps as costs fall

Higher production and better recoveries translated into a sharp improvement in financial performance.

C1 cash production costs fell to $16,598 per tonne, a 28% improvement on the prior quarter. All-in sustaining costs (AISC) also dropped to $27,906 per tonne.

Imputed EBITDA more than doubled quarter-on-quarter to $112.5 million, with EBITDA margins rising to around 58%.

Metals X generated an imputed net cash flow of $19.48 million for the quarter. Cash and cash equivalents increased by $14.1 million to $293.6 million, even after continued investment across its broader portfolio.

More than just tin

Beyond Renison, Metals X continues to progress its growth options.

At the Rentails project, the company completed the draft environmental impact statement, with regulatory submissions expected in the March quarter. The concentrator FEED package has now been awarded, keeping the project on track for a final investment decision later in 2026.

Metals X also maintained its strategic investments, including holdings in Elements Ltd, First Tin, NICO Resources, and Tanami Gold. Management said capital allocation remains focused on disciplined growth and value-accretive opportunities.

Why the share price slipped today

Despite the strong numbers, today’s move likely reflects profit-taking after a huge run, rather than disappointment with the quarter.

With Metals X shares up 175% year-on-year, expectations were already high. Some investors may also be cautious after such an outstanding December result, especially with tin prices remaining volatile.

Still, this update reinforces that Metals X is generating serious cash in a favourable commodities backdrop.

The post A blockbuster quarter for this ASX miner. So, why aren’t investors impressed? appeared first on The Motley Fool Australia.

More reading

• Domino’s Pizza announces board refresh as turnaround continues
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• This ASX small-cap stock is up 56% in a year, so why did shares fall after today’s update?
• Here’s my buy list if the stock market crashes in 2026
• Up 640% in a year, why is this ASX gold share rocketing another 25% on Wednesday?

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.

I am an investor who tries to invest what I can and when I can into the markets. There are precious few certainties in the world of investing. But two of them are that the markets go up far more often than they go down in a stock market crash, and the market has never failed to exceed a previous all-time high. By that logic, it makes sense to get money into the markets as soon as possible.

Saying that, I am also an investor who loves to buy shares at the kind of steep discounts that we do tend to see during a stock market correction or crash. As such, I do tend to keep some money on the sidelines for that time that the inevitable market crash rolls around.

Now, I, along with everyone else on the planet, have no idea when the next market crash will arrive. For all I know, it could be in 2026 or in 2036.

But I do know the companies that I will attempt to load the boat with when that crash does come. 

My stock market crash buy list for 2026

When the market goes through a period defined by intense fear, I usually try to prioritise companies that tend to trade at lofty valuations. That’s because it is often the only time you can buy shares of these companies at reasonable prices. 

As such, I would have my eye firmly on two ASX tech shares in the next crash. Those are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME).

Both of these companies are growing at exceptional rates, with high levels of free cash flow and compelling growth runways. As a result, it is normal for both TechnologyOne and Pro Medicus to trade with expensive price tags. But if there is a buying window to snatch up these stocks at a bargain price, I’ll be trying hard to climb through it.

I would also be looking to buy more shares of Washington H. SouL Pattinson and Co Ltd (ASX: SOL). As I’ve long documented, Soul Patts is one of my top ASX investments, and any chance to buy more shares of this market-beater at low prices would (at least in my view) do wonders for my long-term wealth.

I wouldn’t stop at the ASX, though. These days, stock market crashes are global events. And I will be turning to the US markets when the next one happens as well. Some of the stocks I would be looking forward to loading up on include Costco Wholesale Corp (NASDAQ: COST), Mastercard Inc (NYSE: MA), McDonald’s Corp (NYSE: MCD) and Meta Platforms Inc (NASDAQ: META). These are all top-quality companies that (with the possible exception of Meta) never seem to go on sale. If they did, I would be there with as much cash as I could muster.

The post Here’s my buy list if the stock market crashes in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Costco Wholesale, Mastercard, McDonald’s, Meta Platforms, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Costco Wholesale, Mastercard, Meta Platforms, Technology One, and Washington H. Soul Pattinson and Company Limited. 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mastercard, Meta Platforms, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.