The Woodside Energy Group Ltd (ASX: WDS) share price has been a disappointing performer again in 2025.

Year to date, the energy giant’s shares have lost approximately 7% of their value.

This compares unfavourably to a gain of 7% by the benchmark ASX 200 index over the same period.

But what is next for the Woodside share price? Let’s take a look at what analysts are forecasting for its shares in 2026.

Where next for the Woodside share price?

The good news is that most brokers believe that the company’s shares are undervalued at current levels. Though they are not necessarily urging investors to hit the buy button just yet.

For example, the team at Macquarie Group Ltd (ASX: MQG) has put a neutral rating and $25.00 price target on its shares.

Based on its current share price of $23.27, this implies potential upside of 7% for investors over the next 12 months.

Commenting on Woodside, the broker said:

Sangomar oilfield has performed exceptionally well over its first 5 quarters – we now include 50% risking for a Phase 2 project (was 0%). Scarborough project tracking well for 2H26 start. However, we are concerned that deteriorating gas markets in 2027-28 will hurt sentiment as WDS progresses the 28mtpa largely uncontracted US LNG project.

Our CY25e/26e EPS are -6%/-2% on lower LNG prices, partly offset by lower opex. CY27e/28e EPS are +5%/ +10% on lower taxes (income tax & PRRT). Our 12-month TP is +4% to 25.00/sh as we include Sangomar Phase 2 (still based a 50/50 weighting to SOTP DCF and EV/EBITDA multiple approach).

Elsewhere, analysts at Morgan Stanley, Citi, and Ord Minnett have the equivalent of hold ratings on Woodside’s shares with price targets of $27.00, $25.50, and $25.00, respectively. This suggests that upside of 7.5% to 16%.

Bullish broker

There is one broker out there that is particularly bullish and sees potential for some very big returns for investors in 2026.

A recent note out of Morgans reveals that its analysts have a buy rating and $30.60 price target on Woodside’s shares.

If Morgans is on the money with its recommendation, then it would mean a massive 31% return for investors from current levels.

And let’s not forget the dividends.

The market is expecting a fully franked dividend of approximately 89 cents per share from Woodside in FY 2026.

This represents an attractive 3.8% dividend yield.

The post Prediction: Here’s where the latest forecasts show the Woodside share price going next appeared first on The Motley Fool Australia.

More reading

• Better dividend stock in December: Woodside or Whitehaven?
• $5,000 to spare? I’d buy these 5 ASX 200 shares before the end of 2025
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why Boss Energy, Paragon Care, Treasury Wine, and Woodside shares are falling today

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

Silver Mines Ltd (ASX: SVL) shares were hit hard on Tuesday, sliding 22% to 18 cents. This came after the silver exploration company released a disappointing update on its Bowdens Silver Project.

The timing really surprised investors, with silver near record highs and Silver Mines shares coming off a strong run over the past year.

So, what changed, and does this pullback create an opportunity?

Why Silver Mines shares sold off

The weakness followed an update outlining the next steps required to progress the Bowdens project in New South Wales. After the NSW Court of Appeal voided the project’s previous development consent in 2024, Silver Mines has been working through the redetermination process.

Management confirmed it will need to refresh ecological surveys and prepare an updated biodiversity assessment in line with the Biodiversity Conservation Act. While this work is aimed at strengthening the application, it also extends the overall timeline.

That extension appears to be what the market is reacting to. With no near-term catalyst and further regulatory work required, some investors have chosen to step back, at least for now.

The silver price backdrop remains supportive

The sell off comes despite a very strong backdrop for silver itself. Prices have surged over the past year and recently pushed to fresh all-time highs, supported by a mix of industrial demand, investment flows, and tighter inventories.

For developers like Silver Mines, higher silver prices materially improve long term project economics. If Bowdens ultimately reaches production, the commodity environment looks far more supportive today than it did just a few years ago.

That said, commodity strength alone is rarely enough to offset regulatory uncertainty in the short term.

Bowdens remains a large, long-life asset

Bowdens is still considered one of the largest undeveloped silver projects in Australia. The resource hosts significant silver alongside gold and base metals, and recent drilling has continued to deliver high quality intersections.

While the quality of the resource has not materially changed, the timeline has. Until approvals are resolved, Bowdens remains a pre-production asset with no revenue and ongoing funding requirements.

That keeps Silver Mines among the higher risk mining stocks on the ASX.

Is this a buying opportunity?

For long term investors with a high-risk tolerance, the pullback may be worth watching. Silver Mines offers leveraged exposure to silver prices and a large-scale project in Australia.

However, this is not a stock for investors seeking certainty or income. Regulatory timelines, funding requirements, and execution risk all remain key factors.

For now, this looks less like a clear buy signal and more like a reminder of why development stage miners can be volatile. If progress on Bowdens becomes clearer, investor sentiment could shift quickly. Until then, patience may be required.

The post After a 22% fall, is now the time to buy Silver Mines shares? appeared first on The Motley Fool Australia.

More reading

• Why Aeris Resources, Capricorn Metals, Paradigm, and Silver Mines shares are sinking today
• Up 178% in a year, why is this ASX All Ords silver share sinking today?
• Silver price hits new record, firing up Aussie shares
• Up 109% or more! These 4 ASX mining stocks are booming as the silver price hits all-time high

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.

The S&P/ASX 200 Index (ASX: XJO) has had a pre-Christmas surge. 

In the last 5 days, it has gained almost 3%. 

This is significant when you consider it is up 7% for the entire year. 

However there are a few notable ASX 200 shares that have missed out on the positive year. 

When ASX 200 stocks tumble, it can be a great opportunity to buy-low on fundamentally strong companies. 

Over the last weeks, the team here at the Motley Fool have been identifying stocks that fall into this category. 

These kinds of stocks could be great buys ahead of the new year. 

Here are two more for buy-low investors to consider. 

Block (ASX: XYZ)

Block is a global company best known for providing payment-acquiring and related services to businesses.

It opened 2025 trading for approximately $139 per share. 

Fast forward to December 23, this ASX 200 financials stock closed trading at $97.84. 

This represents a fall of around 30%. 

For context, the S&P/ASX 200 Financials (ASX:XFJ) index is up 8.63% in the same period. 

This fall has been despite solid earnings growth from the BNPL company. 

In the company’s September quarter results, released in early November, it reported: 

• 18% year-on-year profit increase for Q3
• Forecasted US$10.243 billion in gross profit for 2025, up 15% from 2024.
• Cash App gross profits per monthly transacting active of $94 on an annualised basis, up 25% year-over-year

With fundamentals looking relatively healthy (albeit missing guidance) this ASX 200 stock could be undervalued right now. 

Online brokerage platform Selfwealth lists this ASX 200 stock as undervalued by 87%. 

Meanwhile, TradingView has an average 12 month price target of $175.33 which indicates an upside of 79%. 

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a commercial-stage biopharmaceutical company focused on the ongoing development of diagnostic and therapeutic (‘theranostic’) products using targeted radiation. 

This process treats cancerous or diseased cells, an alternative approach to many cancer therapies which also attack healthy tissue at the same time.

Its share price has fallen almost 50% in 2025. 

However it did show some signs of life on Monday after announcing positive results from a recent trial. 

The company has also drawn attention recently from Broker Bell Potter. 

Earlier this month, The Motley Fool’s James Mickleboro reported that the broker believes there is a strong probability its Zircaix (targeting therapy) receives US FDA approval next year. 

This is seen as a good sign for company revenue. 

The broker also has a $23.00 price target on this ASX 200 stock, along with a buy recommendation. 

This indicates an upside of more than 90%. 

The post 2 ASX 200 shares down 30% or more that could be a new years buy appeared first on The Motley Fool Australia.

More reading

• Telix shares storm higher on big US and China news
• These are the 10 most shorted ASX shares
• Telix Pharmaceuticals in focus with China trial success and FDA updates
• Bell Potter names the best ASX healthcare shares to buy in 2026
• Why is everyone talking about Telix shares this week?

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 Block and Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’ve been watching the ASX this December, Electro Optic Systems (ASX: EOS) has been hard to miss.

EOS shareholders could hardly ask for a better Christmas present given that the defence technology company’s share price has surged 106% in December alone, and is now up an eye-watering 617% year to date. Its a year to date return that eclipses fellow defence tech company Droneshield (ASX: DRO) (up 336% year to date).

So what’s driving one of the strongest Santa Claus rallies on the market?

2025: a breakout year for EOS

2025 has been a big renaissance year for EOS after it began the year with a share price almost 90% below its all time high.

Since then however, the company has been steadily announcing new customer contracts across its product portfolio, and this has sent its share price sky-rocketing higher.

The latest leg higher came yesterday (23 December), when EOS shares jumped 7.8% after the company revealed that it had secured a binding $33 million contract to supply its Remote Weapon Systems (RWS) to General Dynamics Land Systems, one of the largest defence manufacturers in the world.

As part of the contract, EOS’ Remote Weapon Systems will be integrated onto a major U.S. Army ground combat platform, with work delivered over the next two to three years. Manufacturing will take place at EOS’ facility in Huntsville, Alabama, further cementing its presence in the US defence market.

For investors, this matters because EOS has long talked about cracking the US market. This deal represents a genuine entry and expansion point in that market, and management has flagged that it could lead to larger follow-on orders (although nothing is guaranteed).

A month stacked with good news

This wasn’t a one-off announcement either, December has been a busy month for EOS.

Just days earlier, EOS had announced a $32m RWS order for another North American customer, with production scheduled for 2026– 2027.

Mid-month, the company also unveiled a conditional $120m contract for a high-energy laser weapon system with a customer in South Korea.

Add it all together, and EOS’ unconditional contract backlog now exceeds $400m, up from just $136m a year ago. Most of that revenue is expected to start landing in 2026 and beyond.

Foolish bottom line

Defence spending is rising globally, and EOS sits in some of the most attractive niches including remote weapon systems, counter-drone technology, and laser weapons.

After years of promise, EOS is now backing up its story with real contracts from serious customers. That’s why the market has rewarded the stock so aggressively this Christmas.

With strong momentum to end the year, EOS investors are repricing higher a business that’s firing on all cylinders.

The post Up 106% in December, this stock has one of the biggest Santa Claus rallies on the ASX appeared first on The Motley Fool Australia.

More reading

• Up 83% in a month, is it too late to buy DroneShield shares now?
• Here are the top 10 ASX 200 shares today
• Why EOS shares are jumping on Tuesday
• My 5 top stocks to buy in 2026
• Buy, hold, sell: DroneShield, Macquarie, and Wesfarmers shares

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 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.

DroneShield Ltd (ASX: DRO) shares – and the company’s stockholders – have been on quite a ride in 2025.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed up 4.7% on Tuesday, trading for $3.14 apiece.

Now, here’s why I say that the stock’s been on ‘quite a ride’.

At yesterday’s closing price, DroneShield shares have gained a whopping 318.7% year to date.

Shares hit an all-time closing high of $6.60 on 9 October.

Following a number of events that shook investor confidence (which we’ll touch on below), shares then tumbled all the way down to $1.72 by market close on 21 November, putting the stock down 73.9% in just six weeks.

But we’re not done yet.

As divulged by the headline, the ASX 200 stock has been on a tear since 21 November, with shares now up a blistering 82.6% in just over one month.

Which brings us back to the topic at hand.

Following this outsized and rapid rebound, is it too late to buy DroneShield stock today?

DroneShield shares: Buy, hold or sell?

Bell Potter Securities’ Christopher Watt recently analysed the outlook for ASX defence stock (courtesy of The Bull).

“The company provides artificial intelligence-based platforms for protection against advanced threats, such as drones and autonomous systems,” Watt explained.

“It recently secured another major international contract and boasts a growing sales pipeline in excess of $2.5 billion,” he said, explaining part of the big rebound we’ve witnessed this past month.

But Watt isn’t quite ready to hit the buy button on the stock just yet.

Commenting on his hold recommendation on DroneShield shares, he said:

However, while the business fundamentals are sound, investor sentiment has been clouded by governance concerns, including recent DRO share sales by directors and scrutiny over disclosure practices.

These issues may create short term headwinds, but we believe the company remains structurally well positioned in the fast-evolving counter drone and electronic warfare space.

What happened with the director sales and disclosure issues?

A lot of the selling pressure impacting DroneShield shares came following news that a number of high-level executives, including CEO Oleg Vornik, had sold a large portion of shares.

Between 6 November and 12 November, Vornik sold 14.81 million shares, earning him $49.47 million.

On 13 November, when the company reported those sales, the ASX defence stock closed down 31.4%.

Investors were also rattled in November after DroneShield reported that, following an administrative error, a contract it had reported to the market as new was in fact a revised existing contract.

The post Up 83% in a month, is it too late to buy DroneShield shares now? appeared first on The Motley Fool Australia.

More reading

• Up 106% in December, this stock has one of the biggest Santa Claus rallies on the ASX
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: DroneShield, Macquarie, and Wesfarmers shares
• Will DroneShield shares continue their epic run into 2026 and beyond?
• 5 magnificent ASX stocks that can make you richer in 2026

Motley Fool contributor Bernd Struben 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. 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.

What a year Commonwealth Bank of Australia (ASX: CBA) shares (and shareholders) have had. 2025 was really a tale of two halves when it came to this ASX 200 bank stock.

The first half of the year was dominated by CBA’s relentless push higher. The bank climbed over $160 a share for the first time ever early in the year. After a March slump that extended into April, CBA broke through the $170 mark in May, then hit $180 by June. Late June saw the bank reach its now reigning all-time high of $192 a share.

But ever since the middle of 2025, CBA has been drifting away from that high. By August, Commonwealth Bank was back under $170 a share, and fell under $160 just last month.

The bank has hovered around the $160 mark ever since, and looks likely to end the year at that level.

So although the current share price is almost 16% down from that June record high, it is still 4.9% above where CBA shares started 2025. This will have many investors wondering, ‘Would I be mad to buy more CBA shares at $160?’

Let’s talk about that proposition today.

Is it mad to buy CBA shares at $160 each?

Well, let’s look at the facts. Yesterday, CBA shares closed at $161.73 each. At this pricing, the bank was at a market capitalisation of $270.65 billion. Its price-to-earnings (P/E) ratio was 26.73, and its dividend yield was sitting at a flat 3%.

Already, we can say that a 26.73 earnings multiple is very pricey for a bank. The next-most expensive big four ASX bank is currently Westpac Banking Corp (ASX: WBC), on an earnings multiple of 19.7.

For further comparison, the largest bank in the United States, JPMorgan Chase & Co (NYSE: JPM), is currently on a P/E ratio of 16. JPMorgan is often regarded as the best-run bank in the world.

The United Kingdom’s largest bank, HSBC Holdings plc (LON: HSBA), is on 16.59, while Japan’s Mitsubishi UFJ Financial Group Inc (TYO: 8306) is on 15.27.

So already, CBA is still looking expensive. But we could justify a 26.7 earnings multiple if the bank has a steep growth runway in front of it.

Unfortunately, it’s pretty hard to make that case. At close to $300 billion, CBA is already the largest stock on the ASX by quite a wide margin.

Yet this company is not growing fast at all. In August, the bank reported a 4% lift in cash net profits after tax to $10.25 billion for its 2025 financial year. Earlier this month, analysts at UBS pencilled in a net profit of $10.76 billion for FY2025. If that turns out to be accurate, it would represent a 4.98% rise over FY2025. Better than nothing, to be sure. But enough to justify that 26.7 earnings multiple? I would argue not.

As such, I don’t think buying CBA shares at anywhere close to $160 is an idea that will result in significant wealth creation for investors in the foreseeable future. I wouldn’t use the word ‘mad’ for politeness’s sake. But then again, it’s certainly not a sane price in my view.

The post Would I be mad to buy more CBA shares near $160? appeared first on The Motley Fool Australia.

More reading

• CBA shares down 16% since peak amid core advantages ‘slowly being eroded’
• Why these ASX ETFs could be better than buying CBA shares
• 5 ASX shares I’m avoiding this week
• How many CBA shares do I need to buy for $1,000 of annual passive income?
• The Commonwealth Bank has called it! Interest rates to rise in the new year, but how soon?

HSBC Holdings is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had one of its best sessions in some time. The benchmark index stormed 1.1% higher to 8,795.7 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday despite a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% lower this morning. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is up 0.4%, and the Nasdaq is up 0.5%.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.75% to US$58.45 a barrel and the Brent crude oil price is up 0.6% to US$58.45 a barrel. Traders were buying oil in response to geopolitical risks.

Lendlease update

Lendlease Group (ASX: LLC) shares will be on watch on Wednesday after the real estate developer announced that it has grown its Development and Construction pipelines. The company revealed that it has secured the Sydney Metro Hunter Street West Over Station Development, which includes construction of the metro station. The project includes development of a 52-storey premium commercial tower on the corner of George Street and Hunter Street in the Sydney CBD that will be delivered by Lendlease. It estimates that the gross end value will be ~$2.2 billion for the West Tower and ~$1.5 billion for construction of the station. The project is targeted to commence in FY 2027 and complete in 2032. This is in line with the station’s planned opening.

Gold price storms higher

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a strong session on Wednesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,517.6 an ounce. The precious metal hit a new record high amid increased demand for safe haven assets.

Buy Fenix shares

Bell Potter thinks that Fenix Resources Ltd (ASX: FEX) shares are in the buy zone. This morning, the broker reiterated its buy rating on the iron ore miner’s shares with an improved price target of 70 cents. It said: “FEX continues to grow its portfolio of low capital mining assets, leveraging its integrated logistics networks to underpin cash flows for growth and shareholder returns. The company holds the largest storage position at the strategic and fastgrowing Geraldton Port. The expanded FEX-SMC agreement provides a clear pathway to 10Mtpa iron ore production at significantly lower unit costs.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Scentre Group brings new partner into Westfield Sydney in $864m deal
• At record prices, why don’t ASX gold miners pay high dividends?
• Perseus Mining upsizes debt facility, boosting liquidity for growth
• Why 4DMedical, Core Lithium, Fenix, and Goodman shares are storming higher today

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 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.

Many ASX insurance shares have experienced excellent capital growth in recent years.

Amid higher post-COVID inflation, most insurers significantly raised their premiums on all types of insurance policies.

But is the party over for ASX insurance shares?

Here, we look at three insurance giants and why the experts say it’s time to sell.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price closed at $20.10 on Tuesday, up 2% for the day and up 36% over the past two years.

On The Bull this week, Christopher Watt from Bell Potter Securities has a sell rating on this ASX insurance share.

Watt explains:

This insurance giant has recently delivered a strong performance, which included solid returns on equity and a disciplined underwriting approach.

However, forward looking conditions appear more mixed. Premium growth is moderating, and rising claims costs in a higher inflation environment may start to erode margins.

The analyst says a significant re-rating for QBE shares over the past year potentially limits further upside.

Most of the good news has been priced into the stock, so investors may want to consider cashing in some gains. 

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price closed at $17.82 yesterday, up 1.4% for the day and up 9.5% over the past two years.

Jed Richards from Shaw and Partners says it’s time to sell this ASX insurance share.

He comments:

The insurer announced it had received more than 10,000 claims by November 26 in response to recent severe storms in New South Wales and Queensland.

The net cost to Suncorp is expected to be about $350 million, according to earlier terms of assessment.

About 5000 claims related to motor damage and a further 5000 claims involved homes.

Richard notes that Suncorp shares have fallen from $21.82 apiece on 22 August.

He adds:

Frequent buy-back updates don’t offset insurance risk exposure.

Medibank Private Ltd (ASX: MPL)

Also on The Bull, Blake Halligan from Catapult Wealth recently revealed a sell rating on this ASX insurance share.

The Medibank Private share price closed at $4.83 yesterday, up 1.3% for the day and up 35% over the past two years.

Halligan notes Medibank Private’s share price decline from from $5.26 per share on 21 August.

He commented:

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

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

The risk of increasing cost pressures paints a challenging outlook.

The post 3 ASX insurance shares to sell: experts appeared first on The Motley Fool Australia.

More reading

• Experts name 3 ASX 200 shares to sell now
• Suncorp shares tread water as investors digest 2026 dividend timeline
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares
• Investing in a higher-for-longer world and the ASX sector built to cope
• Here’s the dividend forecast out to 2030 for Suncorp shares

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) has done extremely well for its shareholders this year, and the stock hit a new all-time high of $329 in November. However, after a recent pullback, shares briefly moved below $300 and are still close to that level as of Dec. 19.

Many investors may be wondering if they should buy shares now or wait to see if Alphabet falls further, considering the recent dip in the tech sector. Personally, I wouldn’t wait. Here’s why. 

The benefit of investing in great companies

It’s hard to find many tech companies as dominant as Alphabet. The holding company is most famous for owning Google, the world’s largest search engine, but it also owns the most popular web browser (Chrome), video streaming site (YouTube), and mobile operating system (Android). Among the other businesses that Alphabet owns are Waymo, a self-driving car company, and Wing, a drone delivery service.

Alphabet generated $73.6 billion in free cash flow (FCF) over its past four reported quarters. And even with all of its successes, it remains a more affordable investment than many of the other megacap tech stocks. Trading at 29 times trailing earnings as of Dec. 17, it’s the second-cheapest company among the “Magnificent Seven” (which also include Apple, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla).

Alphabet has historically outperformed the stock market. Based on the strength of its businesses, it looks likely to keep doing so.

This isn’t your last chance to buy Alphabet, and truthfully, its share price could go up or down in the short term. The current price might not be the very lowest it will go in the near future. But when you’re investing in great companies, you don’t need to worry about timing the market. What’s important is filling your portfolio with long-term winners — not whether you bought their shares at $295, $305, or somewhere in that area.

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

The post Alphabet near $300: Your last chance to buy? appeared first on The Motley Fool Australia.

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

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

More reading

• Alphabet vs. Amazon: Which stock will outperform in 2026?
• 1 Magnificent 7 stock to buy in 2026 (and 1 to avoid)
• The best artificial intelligence (AI) stock to buy in 2026 (Hint: It’s not Nvidia)
• Which AI chip stock is the better buy for 2026: Nvidia or Alphabet?
• Should you buy this “Magnificent Seven” stock before 2026?

Motley Fool contributor Lyle Daly has positions in Alphabet, Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Warren Buffett has many favorite stocks, ones that have played an important role in his portfolio for years and that have helped the billionaire deliver market-beating returns over time. Buffett, as chairman and chief executive officer, has led Berkshire Hathaway to a compounded annual increase of nearly 20% over 59 years. That’s compared to the 10% compounded annual gain for the S&P 500 over that time period. 

Buffett chooses companies that he believes have solid competitive advantages and that can withstand the test of time. The investing giant aims to invest for the long term, so he looks for companies that may excel for years to come. And he aims to get in on them at a reasonable price.

I consider the following stock Buffett’s favorite as it holds a special place in his portfolio: the top spot. Clearly, the company is a solid investment — but could it double your money in five years? Let’s find out. 

Taking a bet on technology

Buffett first bought shares of this player back in 2016, taking a bet on an industry he usually doesn’t invest in — technology. This stock is Apple (NASDAQ: AAPL), seller of the famous iPhone, Mac, and other leading devices. Buffett surely noticed Apple’s fantastic moat, brand strength that keeps customers coming back.

Over time, this has driven revenue and profit growth and stock performance, too. Buffett is so grateful for these results that he thanked Apple CEO Tim Cook during the latest Berkshire Hathaway shareholders meeting back in May. Apple stock has advanced about 900% since Buffett initially bought the shares.

Buffett in recent quarters cut his position in Apple, and though he didn’t spell out the reason, it’s possible that the movement was simply to lock in gains after such a solid performance. Meanwhile, the fact that Apple remains his biggest holding shows he still believes in the company’s prospects.

An $8 trillion market value

Now, let’s consider whether this Buffett stock could double your money in five years. To do so, the stock price would rise to about $550, bringing the stock’s market cap to $8.1 trillion. Let’s do some math, involving the company’s sales growth, to imagine the path to this level.

From Apple’s actual 2023 sales of $383 billion through analysts’ average estimates for $482 billion in annual sales next year, Apple has delivered a compound annual growth rate (CAGR) of 5.9%. And the stock trades for just under 10x sales.

A CAGR of 5.9% from 2023 through 2030 would imply annual revenue advancing to $610 billion by the end of that period. And revenue at that level would bring Apple to a price-to-sales ratio of 13, higher than it’s ever traded in the past.

AAPL PS Ratio data by YCharts

Considering a market value of $8.1 trillion, to maintain a PS ratio of about 10, Apple would have to reach $800 billion in annual sales by 2030, suggesting a CAGR of 9.6% from 2023.

So, Apple’s growth rate would have to accelerate quite a bit from current levels, and revenue itself would have to double from last year’s level over the coming five years. This scenario is possible, but I don’t think it’s extremely likely. This doesn’t mean Apple makes a bad investment, though.

Growth you can count on

Apple actually represents an excellent buy today as the stock, even if it doesn’t double in a few years, could generate steady growth you can count on. The company has built out a massive presence of active devices around the world, and those are creating recurrent revenue that’s reaching record levels — this is as users sign up for Apple’s services.

As mentioned earlier, Apple has brand strength that has equaled successful launches of iPhone updates, so we may expect growth with each innovation.

Finally, Apple got in on artificial intelligence (AI) later than rivals, with the rollout of AI features across its devices beginning about a year ago. This may have held Apple’s performance back earlier in the AI boom, but the company today is well-positioned to benefit from its progress in AI.

All of these points make Apple a great wealth-building Buffett favorite to buy and hold — even if it doesn’t double your money in five years.

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

The post Could Warren Buffett’s favorite stock double your money in 5 years? appeared first on The Motley Fool Australia.

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

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

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Adria Cimino 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 Apple and Berkshire Hathaway. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.