Most investors hope 2026 delivers calm markets, steady growth, and rising share prices. And I think there’s a good chance it will.

But history tells us that share market corrections are not a question of if, only when.

Corrections are uncomfortable, unpredictable, and rarely feel safe in the moment. Yet they are also when long-term wealth is often built.

Prices fall, sentiment turns negative, and high-quality ASX shares temporarily trade below what they are really worth.

If that happens in 2026, these are three ASX blue chip shares I would be watching closely.

Cochlear Ltd (ASX: COH)

Hearing solutions leader Cochlear is a blue chip ASX share I would buy if it pulled back meaningfully. It operates in a niche but lucrative global market, has dominant technology, and benefits from powerful long-term trends such as ageing populations and improving access.

When broader markets sell off, Cochlear shares are often dragged down with everything else, despite its long-term outlook remaining intact. While unnerving at the time, a market correction that pushes Cochlear to a more modest valuation could be exactly the sort of opportunity that I think investors should be using to their advantage.

Macquarie Group Ltd (ASX: MQG)

Another blue chip ASX share to buy on a correction could be Macquarie. It is one of Australia’s most resilient financial institutions, with a business model that goes well beyond traditional banking. Its exposure to infrastructure, asset management, and global markets has allowed it to grow earnings through multiple cycles.

While market downturns can temporarily reduce deal activity or asset values, Macquarie has consistently proven its ability to adapt and generate returns over time. In addition, buying Macquarie shares when sentiment is weak has historically rewarded patient investors. Given the quality of its businesses and management team, I expect this trend to continue long into the future.

ResMed Inc (ASX: RMD)

ResMed is another blue chip ASX share where long-term fundamentals matter far more than short-term noise. Sleep apnoea remains vastly underdiagnosed globally, and ResMed continues to invest heavily in technology, data, and connected healthcare solutions.

Corrections are often caused by concerns over short term economic weakness, but demand for ResMed’s products is not cyclical in nature. Sleep apnoea needs treating whatever is happening in the economy.

So, if market volatility were to push ResMed shares materially lower, I think it could present a compelling entry point for investors thinking five or ten years ahead.

The post The ASX blue chip shares I’d buy during the next correction appeared first on The Motley Fool Australia.

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

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share with short interest of 25.93%, which is up week on week. Short sellers have increased their positions after the uranium producer released a very disappointing update on the Honeymoon Project.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise slightly to 17.9%. This pizza chain operator has been struggling in recent years and short sellers don’t appear to believe its performance is going to improve meaningfully in the near term.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is up slightly week on week again. This may have been driven by valuation concerns given the sky-high multiples the burrito seller’s shares trade on.
• Paladin Energy Ltd (ASX: PDN) has short interest of 13.4%, which is up slightly week on week again. Some short sellers appear to be betting against nuclear power adoption and a uranium bull market.
• IDP Education Ltd (ASX: IEL) has 12% of its shares held short, which is up week on week. This language testing and student placement company’s shares have been crushed in the last two years amid concerns over student visa changes.
• Polynovo Ltd (ASX: PNV) has short interest of 11.4%, which is up since last week. This medical device company’s shares are trading on high price-to-earnings multiples. It seems that some investors don’t believe this is justified.
• PWR Holdings Ltd (ASX: PWH) has short interest of 11.2%, which is down since last week. This motorsport products company is going through a transitional period, which is impacting its growth.
• IPH Ltd (ASX: IPH) has seen its short interest remain flat at 11.2%. This intellectual property services provider is battling weak trading conditions, which is weighing on its financial performance.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11%, which is down week on week. It has been a tough year for this radiopharmaceuticals company, with delays to FDA approvals and regulatory scrutiny.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.8%, which is down week on week again. Short sellers have started to close positions after the travel agent reported a positive start to FY 2026 and a new acquisition.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PWR Holdings, PolyNovo, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended PWR Holdings. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, IPH Ltd , PolyNovo, and Telix Pharmaceuticals. 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) is one of those shares that seems to divide investors more than almost any other on the ASX.

On traditional valuation measures, it’s hard to argue the shares look cheap. Many analysts believe CBA is overvalued, especially compared to its major bank peers. Even so, I’m not selling my CBA shares, and I’m comfortable continuing to hold them.

A bank that consistently outperforms

CBA has earned its reputation as Australia’s highest-quality bank. Its scale, technology leadership, and dominant deposit base give it structural advantages that competitors struggle to match.

In a higher interest rate environment, that deposit strength matters. Banks with strong, sticky retail deposits are better positioned to defend margins, even as competition inevitably picks up. While mortgage pricing remains competitive across the sector, CBA has historically shown more discipline than most, prioritising returns over pure volume growth.

That discipline is a big reason the market continues to place a premium on the stock.

Valuation isn’t the only consideration

If I were assessing CBA purely as a new investment today, I’d probably be more cautious. At around $161 per share, expectations are already high, and future returns may be more modest than they’ve been over the past few years.

But as an existing shareholder, the decision to sell isn’t just about valuation. It’s also about what comes next.

Selling shares that have appreciated significantly can trigger a sizeable capital gains tax bill. That’s money that immediately leaves the portfolio and reduces compounding power. Unless I have a clearly superior alternative with a better risk-reward trade-off, I’m reluctant to crystallise gains just for the sake of it.

The dividend looks better than it appears

Another reason I’m happy to keep holding is the dividend.

At today’s share price, CBA’s yield might look relatively modest, particularly for new buyers. But for investors who bought two years ago, when shares were trading closer to $110, the yield on cost is far more appealing.

Add in full franking credits, and that income stream becomes even more attractive on an after-tax basis. For long-term investors who value reliable income, CBA continues to play an important role.

Steady returns in an uncertain environment

I don’t expect CBA to deliver explosive growth from here. But I don’t need it to.

What I value is consistency. CBA generates strong profits, maintains healthy capital levels, and has a proven ability to navigate economic cycles. Even as the banking sector faces margin pressure from competition and slower credit growth, CBA remains well-positioned relative to its peers.

In uncertain markets, there’s something to be said for owning businesses you trust to keep delivering, even if the upside is incremental rather than dramatic.

Foolish Takeaway

Yes, CBA shares look expensive. But they’re expensive because the business has consistently delivered.

Between the quality of the franchise, the tax implications of selling, and the ongoing appeal of fully franked dividends, particularly for long-term holders, I see little reason to rush for the exit. I’m not buying more at current levels, but I’m also not selling.

The post Why I’m not selling my CBA shares in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 insurance stocks sit within the financials sector of the ASX. 

There are 4 insurance stocks that sit above the rest:  

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Medibank Private Ltd (ASX: MPL)
• Insurance Australia Group Ltd (ASX: IAG)

These are the largest insurance companies listed on the ASX, ranking highest by market capitalisation and collectively serving millions of policyholders across Australia.

What’s the difference?

Although these companies all operate as insurers, they target various parts of the market. 

QBE is a global insurer, focused largely on commercial, specialty, and reinsurance markets across multiple countries.

Suncorp focuses primarily on Australia and New Zealand, offering a broad mix of personal and business insurance alongside banking services.

IAG (Insurance Australia Group) focuses on general insurance, particularly personal and small business insurance, in Australia and New Zealand through well-known local brands.

Medibank is focused on health insurance, primarily serving Australian customers with private health and related services rather than general insurance.

How did they perform in 2025?

After a post-pandemic boom for insurance stocks, 2025 marked a turning point for this sector in terms of stock market performance. 

The worst-performing insurance stock amongst the four has been Suncorp. 

Suncorp shares began the year trading at roughly $22.72 each. 

With just a day left of trading this year, this insurance stock is trading close to $17.70 each. 

This represents a fall of approximately 22%. 

Also suffering a down year are Insurance Australia Group shares. 

This insurance stock has dropped more than 7% in 2025. 

Meanwhile, it was essentially a flat year of returns for QBE shares, which have risen a modest 1% in 2025. 

Finally, the clear winner this year amongst ASX insurance stocks has been Medibank Private shares, which are up almost 26%. 

What are experts tipping for insurance stocks in 2026?

Overall, it appears there is limited upside in the insurance sector moving into the new year. 

Despite their strong year of growth, it appears experts’ views are mixed on Medibank shares in the near future. 

In a note out of Shaw and Partners last week, the broker placed a hold recommendation on this ASX insurance stock. 

Meanwhile, Bell Potter in late November said the insurer holds a dominant presence in the Australian health insurance market, with a 27% market share and 4.2 million members. 

“This scale provides a solid foundation for continued growth, supported by favourable demographics and negotiating leverage with private hospitals,” the broker said.

According to TradingView, analysts view the stock as trading close to fair value, with an average one-year price target of $5.12 (approximately 5% upside). 

IAG shares are also trading close to value based on analyst ratings via TradingView. 

Elsewhere, Suncorp and QBE shares both received sell recommendations from experts (via The Bull). 

The post Which ASX insurance stocks performed best this year? 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.

Gaming is a booming business. The two heavyweight ASX gaming stocks Aristocrat Leisure Ltd (ASX: ALL) and Light & Wonder Inc (ASX: LNW) have a duopoly in the slot machine sector.

As a result, they are well-positioned to take advantage of the growing US market.

Both have pedigree. Both know how to make casinos money. But they’re playing very different games. Let’s have a closer look which of the two ASX gaming stocks looks the better bet.

Aussie pokies king

Aristocrat Leisure, which has a market value of $36 billion, has long been the ASX’s great gaming success story. The pokies king doesn’t just dominate Australian pubs and clubs; it prints money across the US and increasingly online.

Aristocrat’s land-based gaming business is a beast. Flagship titles like Lightning Link and Dragon Link keep players glued and operators happy, driving repeat installs and fat margins.

The company’s US exposure—now its biggest earnings engine—gives it scale, pricing power and resilience when local conditions wobble. Add in a rock-solid balance sheet and prodigious cash generation, and Aristocrat has the firepower to invest, acquire and return capital to shareholders.

But even a house favourite has its blind spots. The ASX gaming stock’s heavy reliance on North America cuts both ways. Regulation is another ever-present risk. Gaming is always one political mood swing away from tighter rules.

And while digital is promising, it’s also fiercely competitive. Finally, expectations are high. Aristocrat trades like a premium business because it is one. But that leaves little room for missteps.

Innovative challenger

Light & Wonder, meanwhile, is the energetic challenger. The ASX gaming stock plays a smart multi-channel game, with innovation and global scale as aces. But rough economic patches or risk-heavy acquisitions could leave the house edge looking a bit thin.

When conditions are right, earnings can accelerate fast. Digital exposure is a clear plus, and innovation sits at the heart of its strategy. The flip side? Higher debt, greater sensitivity to casino spending cycles and more moving parts to manage.

The company carries significant debt, partly from its bold acquisition of Grover Gaming. That takeover expands its charitable gaming footprint but adds financial leverage that could itch investors if winds shift.

So which ASX gaming stock do analysts back?

In 2025, Aristocrat’s share price lost 16.6% of its value, while rival Light & Wonder went 14% higher.

If you want consistency, balance-sheet strength and lower risk, Aristocrat still looks best positioned. Most analysts have a strong buy recommendation on the leading ASX gaming stock.

The maximum 12-month target is set at $81.30, a potential gain of 41% compared to the current share price of $57.55. The average target price is $73.45, a 28% upside.

If you’re chasing faster growth and can stomach bigger risks and swings, Light & Wonder offers potentially more upside. Brokers are a bit more cautious on the $13 billion company with a buy rating.

The most optimistic market watcher sees a 56% upside at $246.19 at the time of writing. However, the average target price for the next 12 months is a lot lower at $174.17 and a potential plus of 10%.

The post Which ASX gaming stock to buy in 2026: Aristocrat Leisure or Light & Wonder? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares are among the most widely held blue-chip stocks on the ASX. Its brands, including Bunnings, Kmart, Officeworks, Priceline and its industrial and chemicals division, give the group broad exposure across Australia.

After a strong long-term run, the Wesfarmers share price has moved sideways since early November. Trading at $81.56, investors are asking whether this represents a buying opportunity or simply fair value.

Let’s take a closer look.

A business built to weather all seasons

Wesfarmers’ biggest strength is how spread out its business is.

Bunnings is the company’s main profit driver. Even when people spend less overall, they still repair, renovate, and maintain their homes. This helps keep profits more stable during slower retail periods.

Kmart has also continued to perform well. Its focus on low prices has attracted shoppers looking to save money, helping it grow while many other retailers face tougher conditions. Officeworks has remained steady too, supported by demand from schools and small businesses.

Because Wesfarmers doesn’t rely on just one business, it has been able to perform well even in a tougher retail environment. Over the past year, the shares have returned about 14%, beating the broader S&P/ASX 200 Index (ASX: XJO).

Capital management remains a key attraction

One area where Wesfarmers consistently impresses investors is how it returns money to shareholders.

In FY25, the company reported net profit after tax of $2.93 billion, up 14.4% from the year before. After this strong result, management announced a $1.50 per share capital management initiative, made up of a capital return and a special dividend.

Because the business generates reliable cash across its different divisions, Wesfarmers is able to return money to shareholders when opportunities are limited. This has resonated well with long-term investors.

What brokers are saying

Views from brokers on Wesfarmers are mixed.

Most analysts rate the stock as a hold. This shows they like the business, but have some concerns about the share price and rising costs.

Shaw and Partners recently kept a hold rating. The broker pointed to Wesfarmers’ strong mix of businesses, but warned that higher costs across retail and industrial operations could put pressure on profits in the short term.

Overall, brokers still see Wesfarmers as a high-quality company. However, most expect any share price gains from here to be steady.

Foolish takeaway

At $81.56, Wesfarmers shares aren’t cheap, but the valuation still looks reasonable for a business of this quality.

For investors seeking a defensive ASX blue-chip stock, Wesfarmers still earns its place on a long-term watchlist.

Personally, I wouldn’t be chasing the shares aggressively at current levels. But on market pullbacks, Wesfarmers is the kind of high-quality stock I’d be happy to accumulate for the long term.

The post Is now the time to buy Wesfarmers shares? 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors focused on building passive income, ASX dividend shares remain one of the most reliable ways to generate long-term cash flow.

While interest rates and market sentiment can move around from year to year, quality dividend payers tend to reward patient investors through regular income and steady capital growth.

Rather than chasing the highest yield on offer, a smarter approach is to focus on companies with durable business models, strong balance sheets, and a proven commitment to returning capital to shareholders.

With that in mind, here are five ASX dividend shares that stand out right now.

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be a top pick for investors is Accent Group.

It owns and operates footwear focused retailers such as The Athlete’s Foot, Platypus, Stylerunner, and Hype DC. It also boasts exclusive distribution rights for major global brands such as Skechers and is rolling out the Sports Direct brand across Australia.

Although consumer spending weakness has weighed heavily on its performance this year, this is now fully priced in. So, with interest rate cuts expected to boost the retail sector in 2026, this dividend share could be well-placed for a rebound in fortunes.

APA Group (ASX: APA)

Another top ASX dividend share that could be a top pick is APA Group.

It owns and operates critical energy infrastructure across Australia, including gas pipelines and electricity assets. Its long-term contracts provide predictable earnings, which flow through to steady and growing distributions. For investors seeking inflation-linked income with lower volatility, APA is an appealing option.

BHP Group Ltd (ASX: BHP)

A third ASX dividend share that could be a top option for income investors in 2026 is BHP Group.

It is one of the most dependable dividend payers on the Australian share market. Backed by world-class iron ore, copper, and metallurgical coal assets, the mining giant generates enormous cash flow across the commodity cycle. This allows the miner to continue rewarding shareholders even when commodity prices are weak.

Telstra Group Ltd (ASX: TLS)

Telstra Group could be another ASX dividend share to buy.

That’s because the telco giant offers defensive income backed by essential infrastructure. Demand for mobile data, broadband, and network services continues to rise, supporting stable cash flows. Telstra’s focus on cost discipline and long-term network investment underpins its ability to pay reliable dividends.

Woolworths Group Ltd (ASX: WOW)

Lastly, Woolworths Group rounds out the list.

As one of Australia’s largest supermarket operators, it benefits from consistent demand for everyday essentials. This resilience allows Woolworths to deliver reliable dividends even during tougher economic conditions.

And while its performance has been underwhelming over the past couple of years, there are signs that it is now back on track and positioned for growth again.

The post 5 top ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Accent Group and Woolworths Group. 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 positions in and has recommended Apa Group, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended Accent Group and BHP 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 Index (ASX: XJO) share TechnologyOne Ltd (ASX: TNE) looks like the top pick of the index right now, in my view.

For starters, the TechnologyOne share price has dropped around 30% in the last six months, making it an even more compelling time to consider the business.

TechnologyOne says it’s Australia’s largest enterprise software company, with a global presence. The business serves over 1,300 leading businesses, government agencies, local councils and universities.

Let’s get into why the ASX 200 share is an appealing long-term buy.

Strong revenue growth

Revenue growth is usually a key driver of how much a business grows over time. TechnologyOne’s revenue has been very impressive, and it continues to expand at a strong rate.

During FY25, the business reported total annual recurring revenue (ARR) of $554.6 million, representing growth of 18% year-over-year.

A significant portion of that ARR growth is being driven by a strong net revenue retention (NRR) of 115%. This means existing clients from last year delivered 15% revenue growth, which is a pleasing rate of expansion.

How is the ASX 200 share able to achieve such a strong NRR? It’s investing around 25% of its revenue into research and development (R&D), giving subscribers compelling reasons to adopt the ASX 200 share’s products and modules at a faster pace. The average customer ARR has grown from $100,000 in FY12 to over $442,000 in FY25.

If it continues with an NRR of 115%, then revenue could double in five years.

Great UK progress

One of the trickiest things about investing in businesses that are priced for a lot of long-term success is figuring out how long they’re going to be able to continue growing profits at a strong pace.

TechnologyOne already has a strong presence in Australia, but the business may have found its next leg of growth: the UK. For starters, the UK has a much larger population than Australia, with more than 69 million people. The UK has government, councils, businesses and universities that all need software for their operations.

In FY25, UK ARR jumped 49% to $51.8 million, driven by strong demand in the local government and higher education sectors. TechnologyOne won the signature London boroughs of Islington London Borough Council and the Council of the Royal Borough of Greenwich from global competitors.

I’m expecting its ARR to continue rising in the UK at a strong double-digit pace for the foreseeable future.

Rising margins and net profit

In FY25, the business achieved a profit before tax (PBT) margin of 30% despite investing in its long-term ‘SaaS+’ (software as a service) strategy, impacting its PBT margin by 2.7%.

The ASX 200 share expects its PBT margin to improve to at least 35% in the coming years, driven by the “significant economies of scale” from its software, as well as the customer response to SaaS+. According to the forecast on CMC Markets, the TechnologyOne share price is trading at 48x FY28’s estimated earnings. I think this makes it look good value considering the very positive outlook.

The post Here’s what I consider to be the very best ASX 200 share to buy in January appeared first on The Motley Fool Australia.

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

There are a lot of ASX stocks out there for investors to choose from.

To narrow things down, let’s take a look at three that analysts think could be among the best to buy in 2026.

Here’s what they are recommending to investors:

Life360 Inc. (ASX: 360)

Life360 is the company behind the eponymous family safety app that has become deeply embedded in the daily lives of 91.6 million users, creating a powerful network effect that is difficult for competitors to replicate.

The company’s focus on subscription revenue means it benefits from highly predictable cash flows, while its growing user base provides multiple avenues for monetisation over time. Importantly, Life360 has been demonstrating improving operating leverage, with revenue growth increasingly flowing through to profitability and cash flow.

Looking to 2026, the company’s global expansion opportunity remains significant, particularly as it continues to convert free users into paying subscribers and its new advertising business builds momentum.

Bell Potter sees potential for big returns in 2026. It has a buy rating and $52.50 price target on Life360’s shares.

REA Group Ltd (ASX: REA)

Another ASX stock that could be a best buy in 2026 is REA Group. It is arguably one of the highest-quality businesses on the Australian share market. Its flagship platform, realestate.com.au, is the clear market leader in online property listings, giving it extraordinary pricing power and scale advantages.

While housing market cycles can create short-term noise, REA’s long-term economics remain extremely attractive. The company benefits from a capital-light business model, strong margins, and the ability to lift prices over time without materially impacting demand.

As interest rates stabilise and housing activity normalises, REA Group is well positioned to accelerate its earnings growth. Add in its expanding presence in adjacent services and international markets, and it is easy to see why REA remains a standout long-term compounder heading into 2026.

UBS is positive on the company’s outlook and recently put a buy rating and $255.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Finally, Temple & Webster could be an ASX stock to buy for 2026. It offers investors exposure to the ongoing shift towards online retail, specifically in the furniture and homewares category. Despite recent consumer spending pressures, the company has continued to grow its customer base and improve its operating efficiency.

The key attraction here is its growth runway. Online penetration in furniture remains relatively low compared to other retail categories, suggesting that there is plenty of growth ahead.

It is partly for this reason that analysts at Macquarie have an outperform rating and $24.15 price target on its shares.

The post These could be 3 of the best ASX stocks to own in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, REA Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of Australian stocks out there for investors to choose from. So many, it can be hard to decide which ones to buy over others.

To narrow things down, let’s take a look at three of the best according to brokers. Here’s what they are recommending:

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is no longer just a traditional gaming machine manufacturer. Over recent years, the company has successfully transformed into a global gaming content and technology business, with exposure across regulated land-based gaming, online real money gaming, and social casino games.

Its Product Madness division has become a major growth engine, generating high-margin, recurring revenue from popular mobile titles enjoyed by millions of players worldwide. Meanwhile, Aristocrat’s core gaming operations continue to benefit from scale, strong intellectual property, and deep relationships with casino operators.

Looking to 2026, Aristocrat’s diversified revenue base and global footprint give it multiple levers for growth, while its balance sheet strength allows continued investment in content, technology, and strategic opportunities.

Bell Potter is bullish on Aristocrat. It has a buy rating and $80.00 price target on its shares.

Goodman Group (ASX: GMG)

Goodman Group remains one of the ASX’s most compelling long-term growth stories, even after years of strong performance. The industrial property specialist sits at the centre of several powerful structural trends, including e-commerce, logistics optimisation, data centre expansion, and artificial intelligence-driven demand for digital infrastructure.

Goodman’s ability to develop high-quality assets for blue-chip customers, combined with its capital-light funds management model, provides a strong foundation for earnings growth. Its development pipeline and exposure to data centres are particularly attractive as global demand for computing power continues to rise.

For 2026, Goodman offers a combination of defensive characteristics, recurring income, and meaningful growth potential, which is why it continues to feature on many broker buy lists.

Morgan Stanley has it on its list. It has an overweight rating and $41.50 price target on its shares.

Zip Co Ltd (ASX: ZIP)

Zip is a higher-risk, higher-reward option, but one that could surprise to the upside if conditions fall into place. After a difficult period marked by rising interest rates and tighter credit conditions, this Australian stock has rapidly (and successfully) shifted its focus toward profitability, cost discipline, and its core markets.

The company has been simplifying its operations, exiting less attractive regions, and sharpening its product offering. As consumer sentiment improves, Zip’s growth could go up another gear in 2026. Especially given the increasing popularity of buy now pay later in the United States.

Macquarie is feeling very bullish on the company’s outlook. It recently put an outperform rating and $4.85 price target on its shares.

The post The best Australian stocks to buy in 2026 appeared first on The Motley Fool Australia.

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