It is not often you find ASX shares trading for less than a takeaway coffee.

But price alone does not tell you much about value. What matters more, in my view, is whether the business has a large opportunity ahead of it and a clear path to grow into that opportunity over time.

Here are three ASX shares under $5 that I think have the potential to be much bigger businesses in the years ahead.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a niche that is becoming increasingly important.

Its technology is designed to detect and counter drones, which are now being used across defence, security, and critical infrastructure. That demand backdrop has shifted quickly in recent years, particularly as geopolitical tensions have increased.

What I like most is the scale of the opportunity. Counter-drone technology is still relatively early in its adoption curve, but the use cases are expanding rapidly. Governments, airports, and private operators are all potential customers.

I think the key question is not whether demand exists, but how large it could become.

DroneShield is positioning itself as a specialist provider in this space, and if adoption continues to broaden, the addressable market could grow significantly from here. That does not guarantee success, but it does create the kind of long-term optionality I look for in smaller companies.

Catapult Group International Ltd (ASX: CAT)

Catapult sits at the heart of sport, data, and performance technology.

This ASX share provides analytics and wearable tracking solutions to professional sports teams, helping them optimise performance and reduce injury risk. That might sound niche, but the company is already working with more than 3,000 teams across over 40 sports globally.

What I find interesting is how the growth opportunity is evolving.

According to the company’s recent analyst day presentation, the professional team market alone includes more than 20,000 teams, with significant room for further penetration. That gives a sense of the existing total addressable market, before even considering adjacent opportunities.

But it goes further than that. Catapult is increasingly focused on expanding revenue per customer. Its land and expand strategy is built around adding more products and increasing average contract value over time, with a long-term ambition to grow annualised contract value materially.

To me, that combination is important. It is not just about adding more teams. It is about deepening relationships with existing ones, which can be a powerful driver of long-term growth if executed well.

SiteMinder Ltd (ASX: SDR)

SiteMinder is building what it describes as a global platform for hotel commerce.

Its software helps hotels manage bookings, distribution channels, and pricing across a highly fragmented ecosystem. That might not sound exciting at first glance, but the scale of the network is significant.

The platform already connects around 53,000 properties globally and facilitates tens of millions of reservations each year.

What I find compelling is the underlying market opportunity. The ASX share sits at the centre of a global hotel ecosystem, connecting hundreds of systems, apps, and distribution channels. As that ecosystem becomes more complex, particularly with the rise of AI-driven pricing and distribution, the need for a central platform could increase.

There is also a clear monetisation opportunity. SiteMinder has outlined a potential 5x uplift in revenue per customer as more products are adopted across its existing base. That suggests a large internal growth runway, even without relying solely on new customer additions.

Foolish takeaway

Shares trading under $5 can sometimes be overlooked, but they can also offer exposure to businesses with meaningful long-term growth potential.

DroneShield is operating in a market that is still emerging but expanding quickly, Catapult has a clear pathway to grow both its customer base and revenue per customer, and SiteMinder is building a global platform with increasing relevance as the hotel industry becomes more complex.

None of these are guaranteed winners, and all come with risks. But for me, they each have something that matters more than their share price. A large opportunity and a strategy to grow into it over time.

The post 3 ASX shares below $5 with huge potential appeared first on The Motley Fool Australia.

More reading

• Is now a good time to invest $5,000 into DroneShield shares?
• 2 ASX growth shares to buy now while they’re on sale
• These are the 10 most shorted ASX shares
• Why I’d buy BHP and DroneShield shares next week
• 3 ASX shares tipped to grow 100% or more in the next 12 months

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, DroneShield, and SiteMinder and is short shares of DroneShield. The Motley Fool Australia has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re feeling dizzy watching CSL Ltd (ASX: CSL) shares, you’re not alone.

This has been one of the wildest rides among ASX large caps. Sharp sell-offs. Sudden rebounds. Constant swings in sentiment tied to earnings, guidance, and pipeline concerns.

Just look at the numbers. CSL shares hit a 52-week high of $275.79 in August. Fast forward to March, and it was scraping a low of $133.35. Even now, it’s still hovering near those lows at $138.08 at the time of writing.

The biotech stock is down 20% year to date and a brutal 42% over the past 12 months.

So what’s going on and where to next?

Profit and revenue downgrades

Start with the biggest issue: growth. CSL shocked investors when it cut its FY26 revenue growth forecast to 2–3%, down from 4–5%. Profit growth was also downgraded to 4–7%, from a previous 7–10%. That’s a big shift for a company that built its reputation on consistent double-digit growth.

It didn’t stop there. Management of CSL shares also trimmed its medium-term outlook, lowering expected NPAT growth from low-teens to high-single digits for FY27 and FY28. That’s a clear signal: the high-growth era has slowed.

And perhaps more concerning, the downgrade came shortly after the original guidance was issued. That raised eyebrows. Did conditions deteriorate that quickly or were expectations simply too optimistic to begin with?

Either way, confidence took a hit.

Healthcare backdrop

Then there’s the broader market backdrop. ASX healthcare stocks, including CSL, have fallen out of favour in 2026. Investors have rotated into energy, resources, and defensive plays as geopolitical risks rise. That shift has dragged on sentiment across the sector, regardless of individual company performance.

But here’s where things get interesting. Despite the heavy sell-off, many analysts believe CSL shares are now oversold.

According to TradingView data, 12 out of 18 analysts rate the biotech stock as a buy or strong buy. The most bullish price target sits at $264.45, implying a potential upside of around 91% from current levels.

That’s a massive disconnect.

Dominant global plasma player

Why the optimism? Because the core business remains strong.

CSL dominates the global market for plasma-derived therapies, including immunoglobulins, albumin, and clotting factors. These are critical treatments for rare and chronic conditions and demand is not going away.

In fact, it’s growing. There’s strong, recurring global demand for these therapies, and competition remains limited. That gives CSL shares a powerful long-term position, even if short-term growth has slowed.

The company is also still growing, just at a more moderate pace. And over time, those growth forecasts still point to a recovery trajectory.

So what’s the market missing?

Right now, it’s all about expectations. CSL shares were priced as a high-growth machine. When that growth slowed, the valuation reset — hard.

CSL hasn’t lost its edge. But it has lost its growth premium, at least for now.

If growth stabilises and sentiment shifts, there’s clear upside on the table. But until then, investors should expect more volatility.

The post What on earth’s going on with CSL shares? appeared first on The Motley Fool Australia.

More reading

• How I would build the ultimate beginner portfolio with $10,000
• Just starting out? These 5 ASX shares could be the perfect first buy
• 3 quality ASX shares I’d buy while everyone else is nervous
• $5,000 to invest? 3 ASX shares that could be no-brainer buys right now
• 5 ASX 200 shares that could be a bargain right now

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 CSL. 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.

The All Ordinaries Index (ASX: XAO) is very unlikely to return 79% over the next year, but this ASX All Ords gold stock has been tipped to do just that.

The promising gold miner in question is Saturn Metals Ltd (ASX: STN), which is primarily focused on its 100% owned Apollo Hill Gold Project, located in Western Australia.

Saturn Metals shares have already delivered some smashing gains to stockholders over the past year.

Indeed, 12 months ago, you could have bought the ASX All Ords gold stock for 28.5 cents a share. On Tuesday, shares closed up 3.7% to end the day trading for 56.0 cents apiece. This sees the Saturn Metals share price up 96.5% over the past 12 months, smashing the 15.1% one-year gains posted by the benchmark index.

And according to the analysts at Canaccord Genuity, Saturn Metals shares could have a lot further to run yet.

Here’s why.

Should you buy this ASX All Ords gold stock today?

Canaccord noted that Apollo Hill hosts a resource of 2.24 million ounces at 0.51 grams of gold per tonne (2.24Moz @ 0.51g/t Au), with the project being assessed as a potential, large open pit heap leach operation.

Canaccord said that since Saturn Metals listed in 2018, the ASX All Ords gold stock has “scaled and de-risked Apollo Hill through drilling, metallurgy and staged studies”.

These have helped the miner define a bulk-tonnage, low-strip, single open pit enabled by heap leach, which Canaccord said is key differentiator among Australian developers.

The broker said that after falling out of favour around 2018, heap leaching is re-emerging in Australia as a “disciplined, mainstream development pathway rather than a low-cost fallback”.

Canaccord said this return is being driven by three key shifts. According to the broker:

Decades of global operating experience have de-risked design, agglomeration, stacking and monitoring; WA offers ideal conditions with low seismicity, flat terrain, arid climate, strong regulation and deep technical capability; and modern workflows assess heap leach viability early, using detailed mineralogy, large-scale column testwork and improved geosynthetics to define realistic recoveries and performance.

Commenting on how this could help Saturn Metals’ returns, Canaccord added:

This proven, predictable positioning of heap leach as a tool to be selectively applied where ore characteristics and jurisdictional conditions are amenable align with the development route being advanced at Apollo Hill.

Connecting the dots, on 31 March the broker initiated coverage of the ASX All Ords gold stock with a speculative buy rating and a price target of $1.00 a share. That represents a potential upside of 78.6% from Saturn Metals’ closing price on Tuesday.

Saturn Metal shares have gained 36.6% since market close on 30 March, spurred by new high-grade gold results from ongoing drilling at Apollo Hill.

The post Why this surging ASX All Ords gold stock is tipped to rocket another 79% appeared first on The Motley Fool Australia.

More reading

• This ASX gold explorer could more than double according to the team at Canaccord Genuity

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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.5% to 8,970.8 points.

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

ASX 200 to rise again

The Australian share market looks set to rise again on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.5% higher. In the United States, the Dow Jones rose 0.65%, the S&P 500 climbed 1.2%, and the Nasdaq jumped 1.95%.

Oil prices sink

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 6.95% to US$92.20 a barrel and the Brent crude oil price is down 4.4% to US$88.85 a barrel. The catalyst for this was optimism that a US-Iran peace deal could be on the way.

Telix shares on watch

Telix Pharmaceuticals Ltd (ASX: TLX) shares will be on watch on Wednesday after the radiopharmaceuticals company announced a US$550 million convertible notes offering. The company’s managing director and CEO, Dr. Christian Behrenbruch, said: “The refinance of the existing Convertible Bonds represents our proactive approach to capital management. The new Convertible Bonds will continue to provide the business with cost effective financing.” Telix notes that the new convertible bonds represent attractive, low-cost financing and are non-dilutive until any potential future conversions occur. The initial conversion price will be at a premium to Telix’s current share price.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 2% to US$4,864.5 an ounce. This was driven by confirmation that a second round of US-Iran peace talks are taking place.

Mineral Resources shares downgraded

Morgans has downgraded Mineral Resources Ltd (ASX: MIN) shares this week. According to the note, the broker has reduced its rating to accumulate (from buy) and cut its price target to $67.00 (from $68.00). It said: “We have updated our 2H26 forecasts to reflect weather impacts in 3Q26, which we expect to have a modest effect on Onslow iron ore shipments, alongside minor increases to cost and capex assumptions driven by inflation in shipping and fuel.”

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

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• Westpac Banking Corporation: Items impacting first-half 2026 results
• 3 quality ASX shares I’d buy while everyone else is nervous

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 positions in and has recommended 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.

Passive income can mean different things to different investors. For me, it is about building a stream of dividends that I can rely on over time, rather than chasing the highest yield available today.

That usually leads me toward businesses with steady cash flow, resilient demand, and a track record of returning capital to shareholders.

Here are three ASX shares I would consider for passive income in April and beyond.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the more straightforward income plays on the ASX. It operates critical telecommunications infrastructure that underpins how Australians connect, work, and consume data. That creates a large and relatively stable customer base.

What I like most is the consistency. Mobile plans, broadband services, and enterprise contracts all contribute to recurring revenue, which supports earnings visibility. That, in turn, helps underpin its dividend.

Telstra may not deliver rapid growth, but I think it offers a level of stability that suits an income-focused approach.

Transurban Group (ASX: TCL)

Transurban provides a different type of income exposure. It owns and operates toll roads, which generate revenue from everyday usage. These assets are long-dated and often linked to inflation, which can help support distribution growth over time.

What I like here is the predictability. Traffic volumes can fluctuate in the short term, but over longer periods, usage tends to grow alongside population and economic activity.

The company has also been guiding to higher distributions, which reflects confidence in its underlying cash flow.

For income investors, that kind of visibility can be valuable.

Coles Group Ltd (ASX: COL)

Lastly, Coles adds exposure to everyday consumer spending. Grocery retail is not immune to competition, but demand for food and essentials remains relatively stable.

That creates a consistent revenue base, which supports earnings and dividends.

What I find appealing is the balance. Coles may not offer the highest dividend yield on the market, but it combines income with a business that people rely on regularly.

Over time, incremental improvements in efficiency and operations can also support gradual growth in earnings.

Foolish takeaway

For me, building passive income is about combining businesses that can continue generating cash flow through different conditions.

Telstra offers stable, recurring income from essential services, Transurban provides exposure to infrastructure with long-term revenue streams, and Coles adds defensiveness through everyday consumer demand.

Together, they represent the kind of foundation I would look for when building an income-focused portfolio over time.

The post The ASX shares I’d buy for passive income in April and beyond appeared first on The Motley Fool Australia.

More reading

• Just starting out? These 5 ASX shares could be the perfect first buy
• Have Telstra shares peaked, or is there more upside ahead?
• 3 simple ASX shares to start investing today
• 3 ASX dividend shares I’d buy for reliable passive income
• How to build a winning 10 ASX share portfolio from scratch in 2026

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

Commonwealth Bank of Australia (ASX: CBA) shares closed the day in the green again on Tuesday. When the bell rang at 4:00pm, the shares were 0.18% higher at $183.52 a piece.

The uptick means CBA shares have now climbed 9.5% in April alone.

They’re also up 13.9% for the year-to-date and 16.7% higher than this time a year ago.

What’s most surprising is that CBA shares have been considered overvalued for some time now. But they keep on climbing higher!

Analysts have widely commented that the bank’s share price is overvalued relative to its peers, and that its bumper price tag isn’t supported well by its business fundamentals. 

CBA’s price-to-earnings (P/E) ratio, at the time of writing, is 29.52, which is much higher (and therefore more expensive) than the other major big four Australian banks. 

Are the shares a buy, sell or hold?

Analysts are mostly bearish on the outlook for CBA shares, with consensus of a downturn ahead for its share price. 

TradingView data shows that 14 out of 16 analysts have a sell or strong sell rating on the stock. The average target price is $129.98, which implies a 29.2% downside at the time of writing. But some think the share price could crash 50.7% to just $90 within the next 12 months.

The reality is, while CBA shares offer reliable passive income from a defensive stock with strong operational performance and potential for further growth, investors can also find this elsewhere at a lower price.

If that’s the case, why are CBA shares still climbing higher?

It’s a good question, and one which boils down to several different factors. 

CBA is a defensive stock, which means it can remain stable in times of economic crisis. Because of this, it generally has strong and consistent operational performance and earnings, even when markets are mostly weak.

For example, the banking giant posted an unexpectedly-positive half-year FY26 result earlier this week. Its share price has been climbing ever since. 

The bank is huge, dominant, and highly profitable, which means investors are struggling to see it as anything other than a safe haven during times of volatility. Scarcity of quality stocks on the ASX also means investors pile into the same dominant players, like CBA.

Not only that, but because of its defensive nature and strong momentum, it’s able to pay a decent dividend to investors. It’s another perk for investors.

CBA has paid dividends twice per year consistently since 2006. The bank last paid a fully franked dividend of $2.35 per share to investors in late-March.

While a stock might be considered overvalued based on rational pricing and business fundamentals, share prices also run off investor sentiment and demand. So, while CBA continues to look attractive to investors, its share price could keep climbing as more and more buy into the ASX bank stock.

The post CBA shares jump another 9.5% in April: Buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

• Just starting out? These 5 ASX shares could be the perfect first buy
• Forget CBA shares and buy this ASX 200 stock: Shaw & Partners
• Sell alert! Why this expert is calling time on CBA and Woodside shares
• Buy, hold, sell: CBA, Reece, and Wesfarmers shares
• ASX 200 shares rip with financials leading a remarkable recovery last week

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Getting started in the share market can feel overwhelming. Thousands of ASX shares, endless opinions, and constant noise.

But here’s the truth: your first investments don’t need to be complicated.

What you want are businesses that are easy to understand, financially strong, and spread across different sectors. That way, you’re building a solid foundation from day one.

Here are five ASX heavyweights that tick those boxes.

Commonwealth Bank of Australia (ASX: CBA)

If you want simplicity, start with a bank.

Commonwealth Bank is Australia’s largest bank and a dominant force in mortgages and retail banking. It generates consistent profits, pays reliable dividends, and benefits from its scale and brand strength.

It’s not the fastest grower, but it’s steady. For beginners, that stability can be invaluable.

CSL Ltd (ASX: CSL)

CSL gives you exposure to global healthcare, a sector with long-term tailwinds.

The company develops and delivers life-saving therapies, with operations spanning the world. It’s a high-quality business with strong margins and a history of growth.

This ASX healthcare share can be volatile at times, but its long-term track record speaks for itself.

Wesfarmers Ltd (ASX: WES)

ASX share Wesfarmers is all about diversification.

From Bunnings to Kmart and Officeworks, this ASX share owns a portfolio of well-known retail and industrial businesses. That mix helps smooth earnings and reduces reliance on any single segment.

It’s a simple way to get exposure to multiple parts of the economy in one stock.

BHP Group Ltd (ASX: BHP)

Want exposure to global resources? This $275 billion ASX share is the go-to.

As one of the world’s largest miners, BHP produces essential commodities like iron ore and copper. These materials underpin infrastructure, construction, and the energy transition.

It’s cyclical, meaning earnings can rise and fall with commodity prices, but over time, it has delivered strong returns and dividends.

Transurban Group (ASX: TCL)

For something more defensive, Transurban offers a different angle.

It owns and operates toll roads across Australia and North America. These assets generate steady, predictable cash flow as people continue to commute and transport goods.

That makes it appealing for investors seeking more stability and income.

Foolish Takeaway

These five ASX shares won’t all shoot the lights out overnight.

But that’s not the point. They’re established, resilient, and operate across banking, healthcare, retail, resources, and infrastructure. Together, they offer a strong starting mix for any new investor.

Because when you’re just starting out, building a solid base matters far more than chasing the next big thing.

The post Just starting out? These 5 ASX shares could be the perfect first buy appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d buy for passive income in April and beyond
• CBA shares jump another 9.5% in April: Buy, sell or hold?
• Up 67% in a year! The red-hot South32 share price is smashing BHP, Rio and Fortescue
• 3 quality ASX shares I’d buy while everyone else is nervous
• Forget CBA shares and buy this ASX 200 stock: Shaw & Partners

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The South32 Ltd (ASX: S32) share price closed 1% higher on Tuesday afternoon, at $4.67 a piece. 

The latest uptick means the shares are now up 32% for the year-to-date and have soared an impressive 67% higher over the past 12 months.

ASX 200 mining shares went on a rollercoaster ride over the March quarter. Commodity prices rocketed in January, sending South32 higher. In fact, South32 was one of the best performers on the ASX 200 index in January. 

The miner benefited from a perfect storm of strong central bank buying, falling US interest rates, and dwindling expectations for the US dollar. These all drove investors to safe-haven commodities like gold, silver, and copper. 

But it all changed when the war between the US and Iran escalated in late-February. An injection of fear about rising oil prices, energy costs, and supply quickly cooled the mining sector in March. 

While most ASX mining shares have since recovered some of their losses, South32 is streaking ahead. Compared to its mining peers BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG), South32 shares have outperformed over the past month, year-to-date and past 12 months.

Why is the South32 share price racing ahead?

South32 mines and produces commodities, including bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese, and metallurgical coal, so it has been well-positioned to absorb the uptick in demand across several minerals and metals.

Unlike BHP, Rio Tinto, and Fortescue, it is not heavily tied to iron or and benefits from diversity across other metals and minerals. 

Because of this diversity, the miner has been able to post some strong financial results, solid production figures and shown it has great momentum.

In January, the miner announced that it had exceeded expectations for first-half production. Alumina production was up 3% in the first half. Meanwhile, aluminium production was up 2%, zinc up 13%, and manganese up 58%. Overall, the company’s results were ahead of consensus. 

Later in February the diversified miner reported a 29% jump in profit and 16% increase in underlying earnings.

Can the shares keep climbing?

If this momentum continues, alongside a continued uptick of commodity demand and prices, I think the South32 share price could continue to outpace BHP, Rio Tinto and Fortescue in 2026.

TradingView data shows that the majority of brokers (12 out of 16) have a buy or strong buy rating on South32 shares. Another three have a hold rating and one rates the shares as a sell.

The average target price of $4.93 implies a potential 6% upside at the time of writing. But some brokers are more bullish and are tipping the share price to jump another 18% to $5.51.

The post Up 67% in a year! The red-hot South32 share price is smashing BHP, Rio and Fortescue appeared first on The Motley Fool Australia.

More reading

• Why Rio Tinto shares just hit a new record high on Tuesday
• Missed BHP shares’ massive run? Here’s what could happen next
• Better buy? CSL vs Rio Tinto shares
• Why I’d buy BHP and DroneShield shares next week
• Why ASX dividend investing still works for building long-term wealth

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

Woodside Energy Group Ltd (ASX: WDS) shares closed 0.56% lower at $33.96 on Tuesday afternoon.

Despite closing the day in the red, the oil and gas producer’s shares are up 7.4% for the month and 71.08% higher than just one year ago.

Woodside shares have rallied 43.5% higher for the year to date, with the most significant increase seen after the conflict between the US and Iran escalated in late February. 

Rising oil prices have acted as a strong tailwind for the oil and gas giant’s shares over the past six weeks. Conflict in the Middle East has threatened the movement of oil in the region, while shipping disruptions and production cuts caused prices to skyrocket to a multi-year high. While the price of oil has now softened, it’s still significantly higher than in late February. 

So, if I bought $10,000 worth of Woodside shares at the start of 2026, what are they worth now?

Woodside shares were trading at $23.66 a piece on the first day of trading in January. The 43.5% increase in the trading price at the time of writing means that $10,000 worth of shares bought on the 2nd of January is now worth a huge $14,350.

Meanwhile, any investor who bought $10,000 worth of Woodside shares 12 months ago would now be sitting on $17,108!

Can Woodside shares keep climbing higher?

I think there is great potential for another share price rally this year.

Global oil supply concerns arising from the ongoing conflict in the Middle East are acting as a significant tailwind for Woodside shares. Peace talks between the US and Iran ended early Sunday morning in Islamabad, Pakistan, without a deal to end the war, sparking concerns that the two nations could be a long way away from a ceasefire agreement.

Meanwhile, Woodside has robust financials and reported a strong 2025 result in late February, suggesting that the company is well-positioned for continued growth.

The announcement confirmed an all-time high full-year production of 198.8 million barrels of oil equivalent (MMboe), topping guidance. Its costs fell 4% for the calendar year, and while revenue dropped 1%, its EBITDA was in line with 2024. 

What do analysts think of the stock?

I think Woodside shares are a screaming buy right now, but analysts are a little more reserved. 

TradingView data shows that seven out of 14 brokers have a hold rating on the stock, while another five have a buy or strong buy rating on Woodside shares. Another two brokers have a sell or strong sell rating.

The average target price is $32.93, which implies a potential 3.04% downside at the time of writing. However, others are more bullish and think the shares could jump 26.8% to $43.05 over the next 12 months. 

The post $10,000 invested in Woodside shares at the beginning of 2026 is already worth a whopping…. appeared first on The Motley Fool Australia.

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• Buy, hold, sell: AGL, Origin Energy, and Woodside shares
• 2 ASX 200 blue-chip shares worth owning in April 2026

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Telstra Group Ltd (ASX: TLS) shares are sitting near a nine-year high, trading around $5.41 at the time of writing.

It’s been a strong run, with the telco up 11% year to date and 22% over the past 12 months. By comparison the S&P/ASX 200 Index (ASX: XJO) gained 3% in 2026 and 16% in the past year.

So, is this as good as it gets for Telstra shares or is there still more in the tank?

Go-to share in volatile markets

Let’s start with the strengths of Telstra shares. The business remains Australia’s dominant telecommunications provider, with unmatched scale across mobile networks and infrastructure. That leadership matters. It gives the company real pricing power. And right now, it’s using it.

Recent price hikes on mobile plans are a key catalyst. With customers relatively sticky, higher prices are expected to flow straight through to revenue and margins. In a high-cost environment, that’s a powerful advantage.

It also helps that Telstra operates in a defensive sector. Connectivity is no longer optional. Whether the economy is booming or slowing, people still pay their phone and internet bills. That stability makes Telstra a go-to in volatile markets.

Attractive yield and reliability

Then there’s the income appeal. Telstra shares has long been a favourite for dividend investors, backed by steady cash flow and a mature business model. Its payout ratio sits close to 100% of earnings, underlining its focus on returning capital to shareholders.

The company pays two dividends a year. Just last month, investors received an interim dividend of 10.5 cents per share, 90.48% franked. Management is forecasting a full-year dividend of 20 cents for FY26.

That combination of yield and reliability continues to attract investors searching for income.

Steady gains, fierce competition

But it’s not all smooth sailing for Telstra shares. Growth remains modest. Telstra isn’t a high-flying tech disruptor, it’s a mature business. That means gains tend to be steady rather than explosive.

Competition is another ongoing challenge. Rivals continue to push for market share in both mobile and broadband. While Telstra’s network advantage is real, it’s not untouchable. Any slip in execution could open the door for competitors.

There’s also a limit to pricing power. Push prices too far, and even loyal customers may start to look elsewhere. That’s a delicate balance Telstra will need to manage carefully.

The bottom line?

Telstra shares have already delivered solid gains, but the story may not be finished.

With strong pricing power, dependable income, and defensive appeal, the telco still has room to edge higher. Just don’t expect fireworks.

Analysts at Macquarie Group Ltd (ASX: MQG) have an outperform rating on Telstra shares. They expect recent price increases to support both earnings and dividends. It has set a 12-month price target of $5.64, implying modest upside of around 4.5% from current levels.

This is a steady compounder, not a rocket ship.

The post Have Telstra shares peaked, or is there more upside ahead? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.