The All Ordinaries Index (ASX: XAO) is just about flat in morning trade, but that’s not holding back this surging ASX All Ords lithium share.

The fast-rising stock in question is Wildcat Resources Ltd (ASX: WC8).

Wildcat shares closed yesterday trading for 43.5 cents. In late morning trade on Friday, shares are swapping hands for 45 cents apiece, up 3.5%.

This sees the Wildcat Resources share price up 80% over 12 months, racing ahead of the 7.3% gains delivered by the All Ords over this same period.

And investors who bought the 20 June dip on the ASX All Ords lithium share will be sitting on gains of 246.2% at the time of writing.

Boom!

Here’s what’s catching investor interest today.

ASX All Ords lithium share lifts on quarterly results

The Wildcat Resources share price is charging higher again today following the release of the miner’s December quarter update.

Over the three months to 31 December, the ASX All Ords lithium share continued to advance its Western Australian lithium assets.

Management highlighted the success at the company’s Bolt Cutter Central Lithium Project, located in close proximity to its Tabba Tabba Project. They noted that exploratory drilling at Bolt Cutter “expanded a large, stacked spodumene-bearing pegmatite system that remains open”.

Standout results from the reverse circulation (RC) drilling program over the quarter included: 12m at 1.65% Li2O from 90.0m; and 11m at 1.32% Li2O from 54.0m.

Wildcat intends to commence diamond drilling at Bolt Cutter in 2026.

And Definitive Feasibility Study (DFS) work progressed at Tabba Tabba. The miner said that metallurgical test work had demonstrated the potential to unlock additional ore and by-product credits. The flagship project has a spodumene-dominant Mineral Resource of 74.1Mt at 1.0% Li2O (at a 0.45% Li2O cut-off grade) and a tantalum Mineral Resource of 1.2Mt at 482ppm Ta2O5.

What else happened over the quarter?

In other key developments over the quarter, the ASX All Ords lithium share acquired a tenement adjoining Tabba Tabba. The miner said it expects the new tenement holding to “materially improve mine layout flexibility and deliver potential operating and capital cost efficiencies”.

Also moving Tabba Tabba closer to development over the quarter, Wildcat Resources executed a Native Title Agreement with the Nyamal native title holders, which management called “a critical milestone”.

Turning to the balance sheet, as at 31 December, the ASX All Ords lithium share had $48.5 million in cash, leaving it well funded for the next stages of exploration.

The post Guess which surging ASX All Ords lithium share is smashing the benchmark again today appeared first on The Motley Fool Australia.

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• Up 240% since June, guess which ASX All Ords lithium share is jumping higher again on Tuesday
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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 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.

Mining stocks are back in the spotlight as 2026 gets underway, with strong copper prices and rising global demand driving momentum.

Copper prices have pulled back slightly from recent record highs, but they remain historically elevated. Copper is trading around US$6 per pound, up roughly 36% over the past year, according to Trading Economics. Even after the recent dip, prices are still near all-time highs.

Demand is being driven by electric vehicles, renewable energy, power grids, and the rapid expansion of data centres. With supply struggling to keep pace, many analysts believe copper could be one of the most important commodities of the next decade.

Why copper demand is accelerating

Copper is essential to electrification. It is used in EVs, charging stations, wind turbines, solar farms, batteries, and data centres. A single electric vehicle uses roughly three to four times as much copper as a traditional petrol car.

According to industry forecasts, global copper demand could rise from about 28 million tonnes today to more than 40 million tonnes by 2040. At the same time, new copper supply is limited. Large discoveries are becoming rarer, and new mines take many years and billions of dollars to develop.

That supply-demand imbalance is a key reason copper prices have surged over the past year and why many analysts expect prices to remain elevated.

Sandfire Resources Ltd (ASX: SFR)

Sandfire Resources is one of the largest copper-focused companies on the ASX. Unlike diversified miners, Sandfire offers more direct exposure to copper prices.

The company operates copper assets in Spain and Botswana and has a market capitalisation of around $8.8 billion. Sandfire shares are currently trading near $19.09, and the stock is up about 103% over the past 12 months, reflecting strong copper prices and improving investor sentiment.

Because Sandfire is more concentrated in copper, its share price can be volatile. However, that leverage can work in investors’ favour when copper prices are rising.

For investors who are bullish on copper, Sandfire provides a clear and focused way to gain exposure.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto is one of the world’s largest mining companies, with operations spanning iron ore, aluminium, lithium, and copper. The company has a market capitalisation of roughly $55 billion.

Rio shares are trading around $147.20 and are up about 23% over the past year. While iron ore remains its biggest earnings driver, copper is becoming increasingly important to the business.

Rio has been expanding its copper exposure and recently secured supply agreements linked to data centre and technology infrastructure demand. The company also offers income appeal, with a dividend yield of about 4%.

For investors who want copper exposure without taking on the higher risk of a pure-play miner, Rio offers scale, diversification, and strong cash generation.

Foolish bottom line

Copper is emerging as a key commodity for the decade ahead, driven by electrification, clean energy, and growing AI infrastructure demand.

Sandfire Resources offers higher-risk, higher-reward exposure to rising copper prices, while Rio Tinto provides a more stable and diversified way to gain exposure.

For investors considering mining opportunities in early 2026, both stocks could surprise as the copper story continues to unfold.

The post Mining momentum: 2 ASX stocks that could surprise investors this January appeared first on The Motley Fool Australia.

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• A fourth contract win in under a month has this ASX 200 company’s shares at a new record high
• Monadelphous secures $300m Rio Tinto contract
• Why I look at past performance of ASX shares to help think about the future performance outlook

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.

James Hardie Industries PLC (ASX: JHX) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $34.99. In morning trade on Friday, shares are changing hands for $35.70 apiece, up 2%.

For some context, the ASX 200 is down 0.1% at this same time.

This outperformance follows the release of an update on the company’s manufacturing optimisation plans.

Here’s what we know.

James Hardie shares lift on forecast cost savings

Before market open today, James Hardie announced some of the steps it is taking to optimise its manufacturing operations as part of its “commitment to operational excellence” through the Hardie Operating System.

Among the efficiency actions that could support James Hardie shares longer term, the company will close its manufacturing facilities in Fontana, California, and Summerville, South Carolina, within the next 60 days.

The soon-to-be shuttered sites represent around 6% of James Hardie’s year-to-date North American manufacturing volume. The company said this volume will be absorbed by its other facilities.

The company’s Fontana site’s Innovation and Research & Development functions will remain in operation.

Management expects the site closures and optimisation initiatives to realise cost savings of approximately $25 million a year beginning in Q1 FY 2027.

On the cost front, James Hardie shares could be facing some modest pushback amid the forecast $40 million to $44 million one-time pre-tax charges the company expects to incur in connection with its site closures and optimisation actions. Those costs will primarily be recognised in Q4 FY 2026 and split evenly between cash and non-cash items.

James Hardie reaffirmed the guidance for the full year of FY 2026 that it previously provided on November 18.

What did management say?

Commenting on the optimisation initiatives helping to boost James Hardie shares today, CEO Aaron Erter said, “During the past several years, James Hardie has made significant investments in modernising our manufacturing facilities to improve efficiency, support our material conversion opportunities, and to better serve our customers.”

Erter added:

Following a comprehensive review of our manufacturing network, we have decided to transfer more production volume to our modern, advanced plants. These actions will further improve our cost structure, increase productivity, and reinforce the Hardie Operating System, while ensuring we have the capacity needed to support our growth initiatives.

Addressing the impacted employees, Erter concluded, “We are grateful for their many contributions… The decision to close our plants in Fontana, California, and Summerville, South Carolina was not taken lightly.”

The post James Hardie shares lift off on $25 million cost saving initiatives appeared first on The Motley Fool Australia.

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• The least sexy ASX stocks for 2026 (Don’t even think about buying these unless you want to make money)
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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 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 ANZ Group Holdings Ltd (ASX: ANZ) share price has been an incredible performer over the last 12 months, rising by close to 30%, as the chart below shows.

There are few times in ANZ’s history where it has risen by so much in just one year.

The ASX bank share’s rise hasn’t yet been driven by a huge jump in earnings, but profit could improve in FY26.

Let’s take a look at whether experts think the business can rise further and how much profit the bank could deliver in FY26.

ANZ share price prediction

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

CMC Markets has a collation of eight ratings on the ASX bank share, with an average price target of $34.37. That implies the group of analysts think the ANZ share price could drop by around 8% within a year, from the valuation at the time of writing.

But, that’s just the average price target, there are views that are both more optimistic and more pessimistic. The best price target suggests a possible rise of 8%, while the most pessimistic one implies a possible decline of close to 20% for the ANZ share price.

Time will tell whether analysts are right to be generally negative on the valuation or not.

Which way is net profit projected to go?

The broker pointed out in a note that after ANZ’s AGM in December, the bank’s CEO said there were five priorities.

First, it’s embedding the new leadership team.

Second, it’s aiming to accelerate the integration of Suncorp Bank by June 2027.

Third, it’s delivering the ANZ Plus digital front-end to retail and small and medium enterprise (SME) banking customers by September 2027.

Fourth, it’s aiming to simplify the organisation.

Fifth and finally, it’s looking to enhance its non-financial risk efforts.

UBS highlighted that these priorities are within ANZ’s 2030 strategy, which will be executed in two phases. First, in FY26 and FY27, it’ll focus on substantial productivity improvements and an initial investment for growth. Second, beyond FY27, it’ll look to accelerate growth and outperform the market.

The bank’s success with these efforts could be integral for the ANZ share price.

A key part of ANZ’s targets include reducing its cost-to-income ratio to the mid-40s by FY28 and sustaining that through to FY30, along with improving the return on tangible equity (ROTE) from 10.3% in FY24 to 12% by FY28, then 13% by FY30.

The cost reduction program includes 3,500 staff cuts, with around $543 million in savings – this is underway.

But, at the same time, it plans to increase its number of bankers in retail and business and private banking by up to 50% over the next five years. UBS said it’s targeting top-line revenue growth in a saturated market.

The ASX bank share has some work to do considering it’s still losing market, according to UBS. The new CEO is targeting an improvement in these metrics from March 2026.

UBS predicts that ANZ’s statutory net profit could be $7.28 billion in FY26, with underlying net profit of $7.4 billion. That means the ANZ bank share is trading at 15x FY26’s estimated earnings. The broker UBS rates ANZ shares as a sell.

The post Is the ANZ share price a buy today? appeared first on The Motley Fool Australia.

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

If I had $10,000 sitting in cash and wanted to put it to work on the ASX, I would be tempted to use exchange-traded funds (ETFs).

These financial instruments allow investors to effortlessly buy large groups of shares through a single investment.

But rather than trying to predict which market will perform best over the next 12 months, I would build exposure across Australian shares, global equities, emerging markets, and high-quality businesses with competitive advantages.

Here is how I would invest that $10,000 today.

Vanguard Australian Shares Index ETF (ASX: VAS)

I would start with Australian equities through the Vanguard Australian Shares Index ETF.

The VAS ETF provides access to the largest companies listed on the ASX. This includes the big four banks, mega-cap miners, healthcare leaders, and retail stars. It offers broad diversification and a strong income profile thanks to its franked dividends.

Australia remains a concentrated market, but it is one I am comfortable owning as a foundation. Many ASX shares generate offshore earnings, and the dividend income can be attractive for long-term investors.

If I were allocating $10,000, I would likely put around $3,000 into the Vanguard Australian Shares Index ETF as a core holding.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The next piece would be global diversification through the Vanguard MSCI Index International Shares ETF.

This ETF provides access to around 1,300 companies across developed markets outside Australia. It includes many of the world’s most influential businesses across technology, healthcare, and consumer sectors.

Holdings such as Microsoft, Apple, Nvidia, and Alphabet give investors access to long-term global growth themes without having to pick stocks.

I like the VGS ETF as a buy-and-hold investment that captures global economic growth over decades. I would allocate roughly $3,000 here.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

To complement broad market exposure, I would add a quality focus through the VanEck Morningstar Wide Moat ETF.

The MOAT ETF focuses on US-listed companies that have competitive advantages, or economic moats. These are generally described as businesses with strong brands, pricing power, or structural advantages that make them difficult to disrupt. Essentially, they are companies that should be around for the long term.

While it is more concentrated than a broad index ETF, I like the emphasis on quality and capital discipline. Over the long term, businesses with competitive advantages tend to compound value more reliably than others.

I would invest around $2,000 into this ETF as a way to tilt the portfolio toward high-quality global companies.

Vanguard FTSE Asia ex Japan Shares ETF (ASX: VAE)

Finally, I would allocate a smaller portion to growth outside developed markets through the Vanguard FTSE Asia ex Japan Shares ETF.

The VAE ETF provides exposure to major Asian economies, including China, India, Taiwan, and South Korea. These regions offer higher long-term growth potential, albeit with greater volatility and risk.

I think some exposure to this area makes sense given the size and importance of Asian economies in global growth over the coming decades.

For that reason, I would invest the remaining $2,000 into this ETF.

Foolish Takeaway

This is not a portfolio designed to shoot the lights out in any single year. Instead, it is built for balance.

Between the VAS, VGS, MOAT, and VAE ETFs, investors get exposure to Australian income, global growth, high-quality US companies, and emerging Asian markets. For a $10,000 investment, that feels like a sensible way to spread risk while still aiming for long-term compounding.

The post I would put $10,000 of my savings into these ETFs appeared first on The Motley Fool Australia.

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• 3 ASX ETFs that could be perfect for beginner investors in 2026
• Investing in the Vangaurd International Shares ETF (VGS)? Here’s what you’re really buying
• 1 Vanguard ETF I’m buying in 2026 and holding forever
• Where I would invest $5,000 in ASX ETFs in January

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Microsoft, and Nvidia. 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, Apple, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For generations of Australians, the retirement playbook has been simple: pay off the home, park superannuation in cash, maybe add an investment property, and live off the income.

It feels safe. Familiar. Sensible.

Yet for retirees facing longer life expectancies and rising living costs, that approach may be carrying more risk than many realise.

Two blind spots stand out: the silent erosion of purchasing power, and the belief that property is the only “real” way to generate passive income in retirement.

The hidden danger of playing it too safe with superannuation

Cash has an important role in retirement. It provides stability, liquidity, and peace of mind. High-interest savings accounts and term deposits can feel especially attractive when rates are elevated.

The problem is what happens over time.

Even when interest rates look healthy on paper, they can struggle to keep up with the real cost of living. 

Headline CPI is a blunt instrument. Retirees don’t spend like the “average household”. Healthcare, insurance, utilities, food, travel, and services often rise faster than the official inflation number.

When savings sit entirely in cash, purchasing power can quietly decline year after year. A bit like the frog in the boiling water – the balance might look stable, but what it buys subtly shrinks.

That is why many retirement portfolios are built with a mix of assets. Not to chase returns, but to ensure part of the portfolio continues to grow and generate income that can adapt to rising costs over decades.

Property isn’t the only path to retirement income

Ask Australians about investing, and property dominates the conversation. Investment properties are seen as tangible, reliable, and proven.

But that reputation often ignores the full picture.

Property ownership comes with concentration risk, high upfront costs, ongoing maintenance, vacancy risk, and a level of physical and emotional effort that doesn’t always suit retirees. Net rental income can be far lower than headline yields once expenses are considered.

Shares, on the other hand, have historically delivered strong long-term returns across multiple time periods, with far less hands-on involvement. Importantly, share market returns already account for reinvestment, operating costs, and business expenses before income reaches investors.

For retirees, that difference matters.

Using shares to support both income and longevity

Shares don’t have to mean speculation or sleepless nights. Many retirees and superannuation funds use diversified portfolios designed to deliver a blend of income and capital growth over long periods of time.

Exchange-traded funds (ETFs) can play a central role by removing much of the complexity and ongoing effort. Rather than picking individual companies, investors can access broad diversification and built-in discipline through a small number of holdings.

For income, something like Vanguard Australian Shares High Yield ETF (ASX: VHY) provides exposure to higher-yielding Australian companies, offering regular distributions that may help support retirement cash flow. To complement that, a growth-oriented option such as Vanguard Diversified High Growth Index ETF (ASX: VDHG) blends Australian and global shares into a single diversified investment designed to grow capital over time.

The precise mix will always depend on personal circumstances, but these examples highlight how retirees can combine income and growth in a broadly diversified, low-maintenance way — without the hands-on demands of managing property or constantly monitoring markets.

Crucially, this approach avoids the capital concentration and illiquidity of a single investment property, while offering daily liquidity and the potential for compounding income and capital growth that cash in a bank account alone often struggles to deliver over decades.

Cash still matters

None of this means abandoning cash or property altogether. Cash remains valuable for short-term spending needs, emergency buffers, and smoothing out market volatility. Property may still suit some investors depending on their circumstances.

The key idea is balance.

A retirement portfolio designed for longevity often blends cash for stability, income-producing assets for spending needs, and growth assets to protect purchasing power over decades.

Rethinking retirement in a longer-lived world

Australians are living longer than ever. A retirement that lasts 25 or 30 years demands more than safety alone. It requires adaptability.

Superannuation was designed to be invested, not frozen. By thinking beyond bank accounts and property alone, retirees can build portfolios that aim to generate passive income while still growing enough to support the years ahead.

Sometimes the biggest risk in retirement isn’t market volatility — it’s standing still.

The post Why superannuation tied only to property and cash could fail retirees appeared first on The Motley Fool Australia.

More reading

• 2 beaten-down ASX shares to consider before they recover
• Can this ASX 200 stock recover after losing 51%?
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Motley Fool contributor Leigh Gant 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 Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices do not move in straight lines. Even high-quality ASX shares can fall sharply when sentiment shifts, expectations reset, or short-term issues dominate the narrative.

For long-term investors, those periods can be uncomfortable, but they can also create opportunities to look past the price chart and focus on the underlying business.

I think two ASX shares fit that description right now. Both are well established, both have been sold off heavily over the past year, and both still operate businesses with long-term relevance. They are as follows:

WiseTech Global Ltd (ASX: WTC)

WiseTech’s share price fall has been dramatic, down more than 40% over the past 12 months, but the business it operates remains central to global trade.

At its core, WiseTech provides software that helps freight forwarders and logistics providers manage highly complex international shipments. That complexity is not going away. If anything, global trade is becoming more regulated, more data-driven, and more difficult to manage manually.

What has weighed on the share price is not a collapse in relevance, but a reassessment of growth expectations and valuation. After years of strong performance, the market has become far more cautious after management drama and product launch delays. That shift has been painful for shareholders, but it has also brought the company’s valuation back to levels that long-term investors may find more reasonable.

WiseTech still benefits from deep customer integration, high switching costs, and a platform that becomes more valuable as it expands. If management executes its business model transformation successfully, its share price could re-rate significantly over the coming years.

REA Group Ltd (ASX: REA)

REA Group’s shares have pulled back by 20% over the past 12 months. This pullback reflects softer property market conditions rather than a breakdown in its business model.

The company remains the dominant digital gateway for Australian real estate, controlling a platform that buyers, sellers, and agents continue to rely on. What has changed is activity. Lower transaction volumes and cautious sentiment have flowed through to earnings expectations, and the share price has adjusted accordingly.

What often gets overlooked during these periods is how embedded REA Group has become in the real estate ecosystem. Its value is not limited to listings alone. Data, analytics, agent services, and adjacent products have steadily increased its role across the property transaction process over the past decade.

As housing markets normalise, this ASX share does not need volumes to surge to recover. Even modest improvements, combined with its pricing power and product expansion, could support earnings growth over time. For investors willing to look through the cycle, the recent weakness may offer a more attractive entry point than has been available for some time.

The post 2 beaten-down ASX shares to consider before they recover appeared first on The Motley Fool Australia.

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

This S&P/ASX 200 Index (ASX: XJO) wine stock lost 5% on Thursday to finish the day at $5.08. This comes after Treasury Wine Estates Ltd (ASX: TWE) endured a punishing year on the share market, losing 51% of its value.

Thursday’s plunge placed Treasury Wine among the worst performers in the ASX 200 Index. It marks a stunning fall for a 68-year-old company that owns global wine labels such as Penfolds, 19 Crimes, and Lindeman’s.

Investors are right to ask whether the sell-off has gone too far and whether the prestigious ASX 200 stock can recover. Let’s go and find out.

Structural US worries

This is not just a case of short-term market jitters. Treasury Wine’s share price reflects deeper structural challenges that are weighing on the business. Management of the ASX 200 stock has pointed to ongoing distribution problems in the US, one of its most important and profitable markets.

Analysts at Morgans commented in a recent note on the ASX 200 wine stock:

As we feared, but even weaker than expected, TWE’s trading update meant that consensus estimates were far too high. Its US performance was particularly disappointing given of all the capital spent in recent years. Gearing is now well above TWE’s target range and will remain high for the next couple of years.

Disappointing Chinese recovery

At the same time, China’s recovery has disappointed. Despite the easing of trade restrictions in 2024, sales momentum has been slower than expected.

Adding to the pressure are shifting geopolitical and trade dynamics, particularly in the US, which continue to inject uncertainty into the outlook for global consumer brands.

These headwinds have forced the company to take defensive action. Treasury Wine has downgraded earnings expectations, withdrawn formal earnings guidance, and paused its $200 million share buyback program. Each move has further dented investor confidence and accelerated the sell-off.

So where to from here?

Broker sentiment on the ASX 200 stock is turning cautious. As a result, the most recent share price drop may have been driven by a broker note out of Citi on Thursday morning.

According to the report, the broker has downgraded the wine giant’s shares to a sell rating (from neutral) with a $4.80 price target, representing a potential 6% loss. The broker has concerns over its outlook in the US.

Analysts at Morgans share similar worries but maintained a hold rating. However, they did decrease their 12-month price target from $6.10 to $5.25 per share, which suggests a potential gain of 9%.

Morgans noted:

While we made large downgrades to our forecasts only two weeks ago following the goodwill write-down, TWE’s new trading update has seen us make another round of material revisions. We stress that earnings uncertainty remains high. It will take time for new management to deliver more acceptable returns and for TWE to rebuild credibility with the market. We maintain a HOLD rating.

The post Can this ASX 200 stock recover after losing 51%? 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trying to time the market is a tough game. Even professional investors struggle to consistently predict what will happen next.

That’s why, in 2026, I still believe one of the best ways to build wealth on the ASX is by buying high-quality ASX shares when they appear undervalued and then holding them for the long term.

This approach isn’t about guessing short-term price movements. Instead, it is about identifying businesses with sustainable competitive advantages and buying them when the market is overly pessimistic.

Here’s how I would do it.

Start by looking where others aren’t

At any point in time, certain parts of the share market are fashionable, while others are being actively avoided. At present, gold and lithium are where investors are putting their hard-earned money, whereas healthcare and tech are being sold off.

More often than not, undervalued ASX shares are found in the latter group.

This is where I would begin my search. A sector or company being unloved doesn’t automatically make it a buy, but it does increase the odds that valuations are more reasonable than usual.

The key is working out whether the challenges are short term in nature or something more structural.

Quality always comes first

A low valuation alone is never enough to justify an investment in ASX shares.

Before considering a company’s share price, I would want to be confident in the quality of the underlying business. Does it have a strong market position? Can it generate consistent cash flow? Does it benefit from long-term demand drivers?

In the current environment, balance sheet strength also matters. Companies with manageable debt levels and financial flexibility are far better placed to navigate uncertainty and capitalise on opportunities when conditions improve.

If a business doesn’t pass these tests, a cheap share price can quickly turn into a value trap.

Pay attention to company updates

Some of the best opportunities appear when the market reacts emotionally to short-term news.

By digging into company results, trading updates, and investor presentations, it is often possible to spot a disconnect between share price movements and underlying business performance.

Sometimes earnings are temporarily under pressure, but margins are improving. Other times, investment spending weighs on profits today but sets the company up for stronger growth tomorrow.

In my experience, the market doesn’t always wait around for the full story to play out, and that can work in favour of patient investors.

Take a long-term mindset with undervalued ASX shares

Undervalued ASX shares don’t usually rerate overnight. The payoff often comes gradually, through earnings growth, dividend increases, and improving sentiment over many years.

That’s why I would spread my bets across a range of high-quality businesses rather than relying on a single idea. Diversification helps manage risk and improves the chances of owning at least a few standout performers.

By focusing on quality, valuation, and time in the market, I believe investors can give themselves a strong chance of building long-term wealth on the ASX, even in an uncertain world.

Which shares are undervalued?

The good news is that at present, I think there are a number of undervalued ASX shares available to patient investors.

This includes CSL Ltd (ASX: CSL), WiseTech Global Ltd (ASX: WTC), Accent Group Ltd (ASX: AX1), TechnologyOne Ltd (ASX: TNE), and Domino’s Pizza Enterprises Ltd (ASX: DMP). They could be worth further investigation.

The post How I’d go about finding undervalued ASX shares to buy and hold forever in 2026 appeared first on The Motley Fool Australia.

More reading

• 2 beaten-down ASX shares to consider before they recover
• 4 ASX shares I’d buy with $10,000 today
• Is Wisetech a buy, sell or hold at current levels?
• Top Australian stocks to buy with $2,000 right now
• 3 quality ASX healthcare shares worth buying now

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

These ASX shares have caught my eye this week. With upsides as high as 700% and robust business growth planned for 2026, this is where I’d be investing my money.

Electro Optic Systems Holdings Ltd (ASX: EOS) 

EOS shares are catching headlines this week. At the close of the ASX on Thursday afternoon, the stock was 1.21% lower for the day at $9.90 a piece. But the dip has barely dented the electro-optic tech developer and producer’s huge annual gains. 

At the time of writing, the shares are 723.53% higher than this time last year.

This year, the business is well-placed to capture surging demand for defence stocks as global military spending hits all-time highs. And it already won some impressive contracts over the past 12 months.

Xero Ltd (ASX: XRO)

Xero shares slumped 4.12% to $103.16 at the close of the ASX on Thursday. And the stock is still 37.7% below its trading levels from this time last year after facing a number of headwinds and loss of investor confidence throughout 2025.

But I think the investor sell-off last year was unwarranted and overdone. The business looks to be stable and poised for an uptick in business growth this year. It’s actively expanding and investing in new revenue streams.

I think Xero shares have the potential to double in value this year.

CSL Ltd (ASX: CSL)

I still have my eye on the ASX-listed global biotechnology company’s shares. Like Xero, the business suffered several strong headwinds in 2025 that sent its shares spiralling.

But now, CSL is well-positioned for a boom in demand. The company is entering a key investment phase, which could help boost its financials, and I’d expect demand for its products and investor confidence to follow suit.

Metcash Ltd (ASX: MTS)

Metcash, a wholesale distribution and marketing company specialising in food, liquor, and hardware, suffered a 15% share price crash in late November following its subdued FY26 half-year results. But analysts seem confident the business can turn it around in 2026.

Unlike the stocks I’ve listed above, I don’t think we’ll see explosive numbers out of this ASX company’s shares in 2026, but I do think we’ll see consistent growth over the next 12 months, which will outpace the likes of supermarket giants Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

The post 4 ASX shares I’d buy with $10,000 today appeared first on The Motley Fool Australia.

More reading

• How I’d go about finding undervalued ASX shares to buy and hold forever in 2026
• How I’d look for ASX growth shares today that could double my money
• Up 735% in a year! The red-hot EOS share price is smashing Droneshield and other defence stocks
• Why EOS, Humm, Pantoro Gold, and Robex shares are dropping today
• 2 ASX growth shares set to skyrocket in 2026 and beyond

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Electro Optic Systems, and Xero. The Motley Fool Australia has positions in and has recommended Woolworths Group and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.