If you have $1,000 to invest in Australian stocks, but can’t decide where to put it, then read on!

That’s because listed below are two popular stocks that analysts rate highly and could be no-brainer buys right now.

Here’s what they are recommending to clients this month:

NextDC Ltd (ASX: NXT)

The first Australian stock that could be a no-brainer buy is NextDC. It develops and operates data centres that support cloud computing, enterprise IT, and increasingly, artificial intelligence workloads.

As more data is created, stored, and processed, demand for secure, high-performance data centre capacity continues to grow. You only need to look at its recent updates to see this. NextDC revealed that its pro forma contracted utilisation increased to 412MW during the first half of FY 2026. This is up 68% from 245MW at the end of June.

What makes NextDC compelling is that it is still in a build-out phase. Many of its facilities are yet to reach maturity, meaning earnings can grow as utilisation rises without a proportional increase in costs. Over time, this operating leverage could be powerful.

Morgans is bullish on the company’s outlook and has put a buy rating and $19.00 price target on its shares. Based on its current share price of $12.48, this suggests that upside of over 50% is possible between now and this time next year.

Pro Medicus Ltd (ASX: PME)

Another Australian stock that is highly rated is Pro Medicus. Through its Visage imaging platform, the company provides mission-critical software to hospitals and healthcare networks, particularly in the United States.

Once installed, the software becomes deeply embedded in clinical workflows, making it difficult and risky to replace.

It appears well-placed for growth over the long term given its global market opportunity and favourable industry trends. Medical imaging volumes continue to rise, datasets are becoming larger and more complex, radiologists are in short supply, and hospitals are under pressure to improve efficiency. Pro Medicus addresses all of these challenges with a capital-light, high-margin model.

It is partly for this reason that the team at Bell Potter is so bullish on Pro Medicus. The broker currently has a buy rating and $320.00 price target on its shares. Based on its current share price of $209.66, this also implies potential upside of over 50% for investors over the next 12 months.

The post 2 no-brainer Australian stocks to buy with $1,000 right now appeared first on The Motley Fool Australia.

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

This ASX dividend share might be hard to ignore for Income investors, but it comes with material risk attached.

Toll-road operator Atlas Arteria Ltd (ASX: ALX) is trading near its 52-week low at $4.87, pushing its forecast dividend yield above 8.2%. As a result, the $7 billion company sits comfortably in the top tier of Aussie dividend payers.

On the surface, the ASX 200 dividend share looks like a classic cheap and cheerful income play. Dig a little deeper, though, and the shine starts to dull.

Dividend with a warning

In a market where reliable income is getting harder to find, that sort of yield can make even cautious investors start doing mental maths. But as always, the real story isn’t the size of the dividend, it’s whether it can last.

First, that headline yield comes with a warning label. The ASX dividend share is paying out more in dividends than it generates in reported earnings. That’s not automatically fatal – infrastructure stocks often smooth income over time – but it does raise eyebrows.

When payouts consistently outstrip profits, the margin for error shrinks fast. Investors may be enjoying generous cheques today, but they’re doing so without a thick earnings cushion underneath.

Wobbling cash flows

Then there’s the business of the ASX dividend share itself. Atlas Arteria owns toll roads across France, Germany and the United States. These are assets that are long-life, inflation-linked and generally predictable. But predictable doesn’t mean immune.

Traffic volumes, interest rates, inflation and political decisions all feed into earnings. In calm conditions, toll roads hum along nicely. In rougher macro environments, cash flows can wobble and dividends are often the first thing analysts put under the microscope.

Finally, the share price tells its own story. Atlas Arteria hovering close to a year low suggests the market is either baking in higher risk or rotating away from yield-heavy stocks altogether. Sometimes that creates opportunity. Other times, it’s a quiet warning that investors should tread carefully.

So where does that leave income seekers?

If you’re a yield chaser with a strong stomach and a long-term view on toll-road resilience, this ASX dividend share might look interesting at these levels. But if you prioritise dependable, well-covered income over eye-catching yields, this could be a case of spectacle over substance.

The analysts‘ view on Atlas Arteria is also mixed, with most of them seeing the toll-operator as a hold. The average 12-month price target is set at $5.26, which suggests an 8% upside.

The most optimistic broker predicts a potential plus of 21%, while the most pessimistic one sees a possible loss of 3%.

The post This high-yield ASX dividend stock is near its 52-week low – is it a buy? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Why did Morgans just downgrade its view on this ASX industrials stock?
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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 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) was the best performer on the S&P/ASX 200 Index (ASX: XJO) and one of the fastest-growing stocks on the planet in 2025.

The counter drone technology company’s shares opened at 76 cents per share on the 3rd of January 2025 and closed for the year at $3.08 a piece 12 months later on the 31st of December. That’s an enormous 305.26% increase in just 12 months.

That means that $10,000 invested at the start of the year would have exploded to over $40,000 by the end of 2025.

For context, the ASX 200 Index increased a healthy 6.16% over the same period. 

So, what’s next?

The ASX 200 share price will keep climbing higher

After a couple of setbacks this year, it looks like Droneshield‘s share price has hit the bottom and will keep climbing higher in 2026.

Droneshield shares closed 1.3% higher on Tuesday afternoon, at $3.90 a piece. The latest increase means the shares have already climbed an impressive 26.62% so far in 2026.

We’re still a long way from the $6.36 all-time peak seen last October, but I’m confident that the company’s growth strategy this year will put Droneshield shares back on track this year.

Analysts are incredibly bullish that there is plenty more upside ahead for the ASX 200 company’s shares in 2026, too.

TradingView data shows that analysts consensus is a strong buy rating on the stock. The maximum target price is $5.00, which implies another 28.21% upside for the shares this year, at the time of writing.

Bell Potter has a buy rating on this ASX All Ords share with a 12-month price target of $4.50. The broker said that it expects 2026 will be an inflection point for the global counter-drone industry with countries poised to spend more on their defence.

The business will benefit from an explosion of demand

Droneshield has a strong growth strategy ahead for 2026. It plans to scale its manufacturing capacity, expand its global footprint and continue converting its huge sales pipeline into secured contracts. The company is early on in its growth cycle too, which means there is a great upside if its customer base and technology keeps growing at the current rate.

The growth strategy should be an easy feat for the counter-drone business, especially against the backdrop of continued geopolitical uncertainty.

Late last week, defence stocks enjoyed an uptick in their share prices after US President Donald Trump said that he’d like to see a massive increase in defence spending. He said that the 2027 US defence budget should be US$1.5 trillion, well above the US$901 million so far approved. President Trump’s comments come off the back of the latest US-Venezuela situation. Investors think recent developments will translate to higher demand for counter drone solutions.

DroneShield has significant business in the US. In December, DroneShield announced an new $8.2 million contract from an in-country reseller for delivery to a western military end-customer. It also announced a new $49.6 million contract with a European reseller that is contractually required to distribute the products to a European military end-customer.

As global tensions continue rising, I can only see demand for AI-operated drone technology to continue to increase this year. Perhaps Droneshield will be the best-performing stock of 2026 too?

The post What’s next for the best-performing ASX 200 stock of 2025? appeared first on The Motley Fool Australia.

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

ASX healthcare stocks were among the worst performing over the last year. 

In fact, the S&P/ASX 200 Health Care (ASX:XHJ) index is down more than 24% over the last 12 months. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 7.5% in that same span. 

One of the many healthcare stocks have stumbled in the last year is EBR Systems Inc. (ASX: EBR). 

Its share price has fallen by 20% in that time.

However it has drawn an attractive buy recommendation and valuation from the team at Morgans. 

Let’s find out what’s behind the positive outlook. 

Introducing EBR Systems

EBR Systems is a medical technology company that develops innovative, implantable cardiac pacing devices designed to treat cardiac rhythm diseases, especially heart failure.

Its’ key technology is the Wireless Stimulation Endocardially (WiSE) technology, which was developed to eliminate the need for cardiac pacing leads.

Back in December, the company made headlines due to successfully implanting the first patient in a key clinical trial.

The company behind this healthcare stock said:

The initial product is designed to eliminate the need for coronary sinus leads to stimulate the left ventricle in heart failure patients requiring Cardiac Resynchronisation Therapy (CRT). Future products potentially address wireless endocardial stimulation for bradycardia and other non-cardiac indications.

Commercial and Clinical Progress

In its Q4 announcement released on Monday, the company said the WiSE System was implanted in 18 commercial patients during Q4 2025, doubling the number performed in Q3 2025.

The company also said it expects to report revenue in the range of US$870K and US$935K for Q4 2025, and total 2025 revenue in the range of US$1,552K and $1,617K, based on preliminary unaudited year-end results and subject to yearend closing adjustments. 

John McCutcheon, EBR Systems’ President & Chief Executive Officer said:

In Q4 2025, we continued to make solid progress across both our commercial and clinical programs. Case volumes increased meaningfully, reflecting growing physician experience and expanding site readiness. Additionally, we advanced important clinical initiatives, including the commencement of the WiSE-UP post-approval study and the first patient enrolled and implanted in the TLC-AU feasibility study.

What’s Morgans’ view?

In a note out of Morgans yesterday, the broker said 4Q25 delivered a clear step-up in commercial execution, with case volumes doubling q/q and revenue materially ahead of expectations, confirming accelerating physician uptake during the Limited Market Release (LMR). 

Preliminary 4Q revenue of US$0.87-0.94m exceeded its estimate by c60%, with FY25 revenue of US$1.55-1.62m validating early pricing and demand assumptions. 

We view clinical momentum with the WiSE-UP post-approval study and the TLC-AU feasibility study as supporting longer-term adoption and label expansion. Updated TAM of US$5.8bn (+60%) highlights a materially larger opportunity, underpinned by growth in leadless pacing and de novo CRT applications.

The broker has adjusted CY25-27 forecasts, with its DCF-based valuation increasing to $2.95. 

This updated price target indicates an upside of more than 180% from yesterday’s closing price of $1.05. 

The post Top broker says this ASX small-cap healthcare stock could be set to double appeared first on The Motley Fool Australia.

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• What’s next for the best-performing ASX 200 stock of 2025?

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

Great investments are often the ones that do not need constant attention. They just sit in your portfolio and compound year after year, building wealth quietly and consistently.

But not all Australian shares are capable of doing this. So, which ones could be worth considering if you want shares to hold forever?

Here are two Australian shares that I would be happy owning forever, backed by businesses with enduring demand and the ability to navigate change over time. They are as follows:

Cochlear Ltd (ASX: COH)

Cochlear is an example of a company whose relevance is largely independent of economic conditions.

As the global leader in implantable hearing solutions, Cochlear operates in a highly specialised medical field with significant barriers to entry. Its technology, intellectual property, and long-standing relationships with clinicians give it a competitive position that is difficult to challenge.

What stands out over a full market cycle is the stickiness of Cochlear’s ecosystem. Patients often remain with the same implant platform for life, creating ongoing demand for upgrades, accessories, and services. This generates recurring revenue that helps smooth earnings through different environments.

Demographic trends also work in Cochlear’s favour. Ageing populations and improved access to healthcare globally continue to support long-term demand, regardless of short-term economic fluctuations.

ResMed Inc. (ASX: RMD)

Another Australian share that could be a top option for investors is ResMed.

It also operates in a part of the healthcare system that does not depend on discretionary spending or economic confidence.

ResMed is a global leader in sleep apnoea and respiratory care devices, serving millions of patients worldwide. Importantly, the condition it treats remains significantly underdiagnosed, which creates a long runway for growth even without favourable economic conditions.

Management estimates that there are over 1 billion people worldwide suffering from sleep apnoea. This gives it a significant growth runway over the next decade and beyond.

Another positive is how embedded its products are in patient care. Once a patient begins therapy, ongoing use, replacement cycles, and software-driven monitoring create recurring demand. This shifts the business away from one-off device sales and toward a more durable revenue base.

ResMed has also invested heavily in digital health platforms and connected devices, which is strengthening relationships with clinicians and patients. That investment allows it to adapt as healthcare delivery evolves, rather than being disrupted by it.

Across different market cycles, demand for effective sleep and respiratory treatment is unlikely to fade, which is why ResMed remains a business I would be comfortable holding forever.

The post The outstanding Australian shares I’d be happy owning forever appeared first on The Motley Fool Australia.

More reading

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

There are a few ASX dividend stocks that have as defensive earnings as Coles Group Ltd (ASX: COL). The nature of its operations and the dividend record make it a truly impressive option.

As one of Australia’s major national supermarket companies, it has a very important role in keeping the country fed. I’d say there are few businesses that have as resilient earnings as Coles.

While it may not be the cheapest retailer around, it offers households a number of advantages such as the large number of supermarkets with long opening hours. It also has an online offering which is seeing rapid growth. Let’s dive into the company’s appeal.

Strong growth

Coles Group’s impressive sales performance shows how the business is executing its game plan better than Woolworths Group Ltd (ASX: WOW).

In the first three months of FY26, the Coles supermarket division saw sales revenue growth excluding tobacco of 7% year-over-year. Inflation excluding tobacco was 1.2%, so clearly the company is doing a good job at selling more items.

Coles supermarkets delivered e-commerce sales growth of 27.9% to $1.3 billion, with e-commerce sales now representing 13.3% of overall sales, showing its increasing importance to the overall picture.

The ASX dividend stock noted that during that quarterly period, two new supermarkets were opened and three were renewed.

With Australia’s population steadily increasing, combined with a little bit of underlying inflation for food items, I’m expecting Coles’ revenue to continue rising over the long-term, even if it doesn’t always outperform Woolworths as much as it is right now.

Broker UBS estimates that Coles could grow its revenue to $45.9 billion in FY26 and then reach $47 million in FY27.

Don’t forget that Coles’ Witron automated distribution centres should help significantly with efficiencies, boosting margins and stock flow.

ASX dividend stock credentials

Coles has increased its annual payout every year since 2019 – I prefer this steady approach to a dividend that bounces around. The company has shown how it can grow its payout in all types of market conditions during the last several years, making it an appealing business to own in any market.

If I’m relying on the cash payments, I’d want to see the dividend payout continue flowing reliably into my bank account, even in a downturn.

The broker UBS thinks the ASX dividend stock could hike its payout to 79 cents per share in FY26, which would be a grossed-up dividend yield of 5.3%, including franking credits, at the time of writing.

In FY27, the annual dividend per share could grow again to 93 cents per share, which would be a grossed-up dividend yield of 6.3%, including franking credits.

The post I’d buy this ASX dividend stock in any market 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When markets feel uncertain, I think it makes sense to look for resilience. That is where Telstra Group Ltd (ASX: TLS) excels.

Telstra is not a stock I expect to double quickly, nor is it one that regularly features in conversations about the next big growth trend. But for defensive investors, and particularly those focused on blue-chip income and stability, Telstra shares still tick a number of important boxes.

A business built around essential services

At its core, Telstra provides services that Australians rely on every day. Mobile connectivity, broadband, and enterprise network services are not discretionary spending items for most households or businesses.

This gives Telstra a level of demand stability that many companies could only dream of. Even when economic conditions soften, people tend to prioritise their phone and internet bills. That characteristic alone makes Telstra shares appealing to defensive investors who want exposure to more predictable revenue streams.

The company’s dominant position in mobile also matters. Telstra continues to hold the largest share of the Australian mobile market, supported by network quality and coverage. While competition exists, Telstra’s scale and infrastructure investment create a barrier that is difficult for smaller players to replicate.

A reliable income profile

Another reason Telstra shares appeal to blue-chip investors is income.

Based on current pricing, Telstra offers a dividend yield of around 4%, which is attractive in the context of a large, established ASX company. Importantly, this dividend is underpinned by recurring cash flows rather than aggressive payout assumptions.

I do not view Telstra as a high-growth dividend stock. What I value more is the likelihood that its distributions remain sustainable through different economic environments. For investors who rely on portfolio income, that consistency is hugely important.

Improved focus and capital discipline

Telstra today looks very different from the Telstra of a decade ago.

The business has simplified its structure, exited non-core operations, and sharpened its focus on areas where it believes it has genuine advantages. Management has also placed greater emphasis on capital discipline, network efficiency, and cost control.

This does not eliminate risk, but it does improve visibility. For defensive investors, understanding how a company makes money and where it allocates capital is critical. Telstra’s strategy is easier to follow now than it has been in the past.

Exposure to long-term digital demand

While Telstra is often labelled as defensive and will never be described as a high-growth technology stock, it is not standing still.

Data consumption continues to grow, enterprise customers are investing in connectivity and digital infrastructure, and network reliability is becoming more important rather than less. Telstra’s exposure to these trends provides a steady growth outlook.

Telstra shares have a role in a diversified portfolio

For me, Telstra shares make the most sense when viewed as part of a broader portfolio.

They can help offset the volatility that comes with growth stocks, cyclicals, or more economically sensitive businesses. In periods of market stress, shares like Telstra often attract renewed interest from investors seeking stability and income.

But with every investment, Telstra shares are not risk-free. Competitive pressures, regulatory changes, and capital expenditure requirements remain ongoing considerations. But relative to many ASX shares, I think Telstra offers a balance of scale, predictability, and income that defensive investors often value.

Foolish takeaway

Telstra may not be exciting, but defensive investing rarely is.

I think its essential services, recurring revenue, solid dividend profile, and improved operational focus continue to make Telstra shares appealing for investors who prioritise blue-chip stability over rapid growth.

The post Why I think Telstra shares are a strong blue-chip buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

Many ASX 200 stocks enjoyed a steady climb yesterday as the S&P/ASX 200 Index (ASX: XJO) rose 0.56% 

However two stocks that were heavily sold off were Zip Co Ltd (ASX: ZIP) and GQG Partners Inc. (ASX: GQG). 

These two ASX 200 stocks fell by 7.6% and 8.6% respectively. 

So what was behind the sell-off? And is it a buy the dip opportunity?

Let’s find out. 

Zip Co Ltd (ASX: ZIP) 

The buy now, pay later (BNPL) company saw its share price tumble more than 7% yesterday. 

It appears investors were likely profit-taking. 

There was no sensitive news out of the ASX 200 company yesterday. 

Zip shares were up more than 27% in the six months prior to yesterday’s sell-off which had been on the back of measured and strategic growth. 

Following yesterday’s decline, it appears this could be a true, buy the dip opportunity for investors. 

Despite yesterday’s sharp fall, Zip is fundamentally the same company. There was no change in guidance or forecast, just a slightly lower valuation. 

Looking at price targets out of analysts, it seems they would tend to agree. 

Earlier this month, Macquarie retained an outperform rating and $4.85 price target on Zip shares. 

From yesterday’s closing price of almost 48% from yesterday’s closing price of $3.28. 

Furthermore, the Motley Fool’s Grace Alvino reported yesterday that Commsec Data shows a projected earnings per share of 7.9 cents in FY26, rising to 12.1 cents in FY27. 

The upside tipped from TradingView is even more, with an average one year price target of $5.45 for this ASX 200 stock. 

This indicates more than 66% upside. 

GQG Partners Inc. (ASX: GQG)

Yesterday was an equally tough day for GQG Partners shares. 

This ASX 200 company saw its share price fall by 8.6%. 

This came after the global fund manager reported Funds Under Management (FUM) of US$163.9 billion at 31 December 2025. 

This was up from US$153.0 billion a year ago.

However, it also reported December 2025 net outflows of US$2.1 billion which may have contributed to the sell off as overall, annual net inflows were negative. 

After dropping 8% however, it could now be a good entry opportunity for investors. 

Macquarie currently has an outperform rating and $2.50 price target on its shares.

This indicates an upside of more than 52%. 

Even more tempting for income investors is the projected yield of approximately 12% in the coming years. 

The post After crashing 8% yesterday, should investors buy the dip on these ASX 200 stocks? appeared first on The Motley Fool Australia.

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• Zip shares slide 10% today as investors head for the exits. Here’s why
• The 3 stocks I’d buy and hold into 2026
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• GQG Partners reports US$163.9bn FUM for 2025

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. 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) is off to a positive start in 2026. 

The benchmark index is already 1.6% higher than the start of the year. 

However that pales in comparison to these two ASX 200 stocks. 

Greatland Resources Ltd (ASX: GGP) and Austal Ltd (ASX: ASB) have already increased by 20% and 31% respectively. 

The question must be asked if this growth is too good to pass up, or just a fleeting new years rise.

Here’s what analysts are saying. 

Greatland Resources Ltd (ASX: GGP)

Greatland Resources operates as a gold and copper mining company.

As you might expect, it’s been one of many ASX gold shares that has rocketed over the past year as investors have turned to the safe-haven asset. 

Its share price is up more than 72% in the last year. 

They enjoyed a 5% rise yesterday and 7% rise on January 7 on the back of a strong quarterly update.

The company reported gold production of 86,273 ounces for the quarter, in addition to copper output of 3,528 tonnes. This marks a big improvement on the September quarter. 

The company also reported an impressive balance sheet that included $948 million in cash and no debt.

So what’s ahead?

The Motley Fool’s Aaron Teboneras reported that the gold price surged to new record highs yesterday. 

This has come amidst more global political unrest along with tensions involving Iran, Israel, Venezuela, and the US that have increased fears of broader conflict. 

These factors could continue to see investors push towards safe-haven assets like gold. 

Despite this, analysts’ views on this ASX 200 stock indicate it may be trading at an inflated value. 

TradingView has an average 12 month price target of $11.12 which is almost 12% above its current share price. 

Austal Ltd (ASX: ASB)

Many of the same geopolitical factors have helped push Austal shares higher to start 2026. 

The company is an Australian-based shipbuilder. Its products include naval vessels, defence surface warfare combatants, high-speed support vessels, patrol boats for law enforcement, offshore vessels, as well as passenger and vehicle ferries. 

The company also installs and maintains vessel command and control systems, communication and radar technology, and information management systems.

Global defence spending has been on the rise which has contributed to several key contracts being won by this ASX 200 company. 

Its share price is now up 183% over the last 12 months. 

In recent news, US President Donald Trump also said that the 2027 US defence budget should be US$1.5 trillion, well above the US$901 million so far approved.

This could be further good news for Austal. 

At the time of writing, Bell Potter has an $8.00 price target and hold recommendation, suggesting the current share price is close to fair value. 

The post These ASX 200 stocks are already up 20-30% in 2026! Are they a must buy? appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) lifted 6.8% and delivered a total return, including dividends, of 10.32% last year.

The following three ASX 200 shares were the star performers of their sectors, achieving the highest capital growth among their peers.

Are they still good buys?

Let’s defer to the experts.

Deep Yellow Ltd (ASX: DYL)

ASX 200 uranium explorer Deep Yellow was the No. 1 share in the energy sector for 2025.

Deep Yellow shares rose 63% to close at $1.84 per share on 31 December.

The uranium price was volatile last year but gained momentum in the second half due to higher demand and constrained supply.

The US increased its commitment to nuclear power with an $80 billion deal with Canadian Westinghouse Electric to build nuclear reactors.

The uranium price closed at US$82.85 per pound yesterday, up 12% over 12 months.

Ord Minnett has a buy rating on Deep Yellow with a share price target of $2.

Jefferies has a hold rating with a target of $1.85.

Yesterday, the ASX 200 uranium share closed at $2.01, down 1%.

Generation Development Group Ltd (ASX: GDG)

Retirement and investment solutions provider Generation Development Group was the highest riser in the financials sector in 2025.

The Generation Development Group share price rose 66% to finish the year at $5.89.

Macquarie gives Generation Development Group shares an outperform rating with a 12-month price target of $6.70.

Yesterday, the ASX 200 financial share closed at $6.05, down 1.3%.

Codan Ltd (ASX: CDA)

Electronics solutions provider Codan was the No. 1 share in the tech sector for 2025.

The Codan share price ripped 77% to finish the year at $28.43.

Codan designs and manufactures electronics solutions for government, corporate, NGO, and consumer clients.

Yesterday, UBS reiterated its hold rating on Codan shares and increased its 12-month share price target from $34 to $37.

MA Financial has a buy rating on the ASX 200 tech share with a $42.31 target.

Last Friday, the Codan share price ripped 17% after an impressive half-year profit update.

Yesterday, Codan shares closed at $37, up 0.8%.

The post These 3 ASX 200 shares led their sectors last year. Are they still good buys? appeared first on The Motley Fool Australia.

More reading

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• Codan shares hit another all-time high. Can the rally keep going?
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• 5 best ASX 200 energy shares of 2025

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Generation Development Group and Ma Financial Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.