With most brokers taking a break over the holiday period, there haven’t been many notes hitting the wires.

But don’t worry because summarised below are three recent recommendations that remain very relevant today. Here’s what brokers are recommending to clients:

Catapult Sports Ltd (ASX: CAT)

According to a note out of Bell Potter, its analysts retained their buy rating on this sports technology company’s shares with a trimmed price target of $6.50. This followed the release of a strong result, which revealed that Catapult delivered earnings ahead of both guidance and Bell Potter’s estimates. The broker highlights that this was driven by a higher margin than forecast. Looking ahead, Bell Potter sees strong double-digit growth in the core business and believes this will be boosted by the cross-sell opportunity from the recent IMPECT acquisition, as well as potential expansion into other sports. And while Bell Potter trimmed its valuation, it points out that this reflects a change in multiples due to the recent de-rating of the tech sector. The Catapult share price ended the week at $4.14.

Generation Development Group Ltd (ASX: GDG)

A note out of Macquarie revealed that its analysts initiated coverage on this diversified financial services company’s shares with an outperform rating and $6.70 price target. The broker highlights that Generation Development Group’s businesses are market leaders in growth sectors and well positioned to scale. This includes the key Evidentia managed accounts business, which it believes is poised to capture an outsized share of industry growth over 2024 to 2030. Another positive that Macquarie highlights is that management incentives support alignment with investors. This includes the top end of long term incentives requiring an earnings per share growth hurdle of +27.5%. The Generation Development Group share price was fetching $6.00 at the end of the week.

TechnologyOne Ltd (ASX: TNE)

Analysts at Morgan Stanley upgraded this enterprise software provider’s shares to an overweight rating with an improved price target of $36.50. This followed the release of TechnologyOne’s full year results for FY 2025. Although the broker acknowledges that there has been a slight slowdown in its growth outside the UK, it remains highly profitable and is generating significant cash flow. In light of this and its positive growth outlook and defensive earnings, Morgan Stanley thinks that recent share price weakness has created a buying opportunity for investors. The TechnologyOne share price was trading at $27.50 at Friday’s close.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• How to become rich with ASX shares over the next 10 years
• Here are my top 10 ASX stocks for 2026
• 10 ASX shares I’d buy with $10,000 in 2026 to beat the market
• Named: The best ASX shares to buy in January
• Why these ASX growth stocks could be much bigger in 2030 than today

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

ASX 200 materials lead the market sectors last week, rising 3.67% amid a slew of mining shares setting new 52-week highs.

Reflecting the miners’ dominance, the S&P/ASX 300 Metal & Mining Index (ASX: XMM) rose 3.64% last week and the S&P/ASX All Ords Gold Index (ASX: XGD) lifted 1.41%, while the benchmark S&P/ASX 200 Index (ASX: XJO) weakened 0.11% to finish at 8,717.8 points.

Only four of the 11 market sectors finished the week in the green.

Let’s recap.

Scores of ASX 200 mining shares reach 52-week highs

Ongoing strength in commodity prices boosted ASX 200 mining shares last week.

At the time of writing, the iron ore price is up 0.45% for the week at US$107.65 per tonne.

This helped send several ASX 200 iron ore shares to 52-week highs.

BHP Group Ltd (ASX: BHP) shares reached $48.49, Rio Tinto Ltd (ASX: RIO) $154.75, and Mineral Resources Ltd (ASX: MIN) $58.64.

The Fortescue Ltd (ASX: FMG) share price didn’t reach an annual high but increased 2.57% over the week to close at $22.71 on Friday.

Copper futures surged above US$6 per pound, a new record, which also supported BHP given it is now the world’s largest producer.

Several ASX 200 copper shares also reached 52-week peaks, including the market’s largest pure-play Sandfire Resources Ltd (ASX: SFR).

The Sandfire Resources share price hit an all-time record of $19.43, as did Capstone Copper Corp (ASX: CSC) shares at $15.89.

Lithium prices also surged, with the carbonate price streaking 16% higher for the week and 49% over the past month.

Unsurprisingly, ASX 200 lithium shares ripped, with many also setting new 52-week price milestones last week.

PLS Group Ltd (ASX: PLS) shares rose to $4.89 apiece, Liontown Ltd (ASX: LTR) hit $2.10, and IGO Ltd (ASX: IGO) reached $8.95.

ASX 200 rare earths shares increased on news that China will limit exports of rare earths to Japan.

Lynas Rare Earths Ltd (ASX: LYC) shares shot the lights out, ripping 15.38% to close the week at $14.10.

The Arafura Rare Earths Ltd (ASX: ARU) share price flew 9.26% to close at 30 cents per share.

What about gold?

The gold price rose 3% last week to above US$4,467 per ounce in late trading on Friday Australian time.

The market’s largest ASX 200 gold share, Northern Star Resources Ltd (ASX: NST) rose 1.19% to close at $24.72 on Friday.

The Evolution Mining Ltd (ASX: EVN) share price rose 1.1% to close at $12.82.

Newmont Corporation CDI (ASX: NEM) shares hit a record high of $162.45 apiece last week.

Vault Minerals Ltd (ASX: VAU) shares hit a 52-week high of $5.80, as did Regis Resources Ltd (ASX: RRL) shares at $7.84.

Gold and copper miner, Greatland Resources Ltd (ASX: GGP) lifted 9.09% over the week to close at $11.52.

The Greatland Resources share price reached a record high of $11.66 on Friday.

Silver continues its amazing run, up 5% over the week and 152% over the past 12 months.

This helped ASX 200 diversified miner South32 Ltd (ASX: S32) hit a 52-week high of $3.87 per share.

South32 is exposed to silver via its Cannington mine, which is one of the world’s largest producers of silver and lead.

The rising aluminium price also supported South32 shares.

Aluminium gained 2.2% last week and is up 22% over the past year.

This also helped bauxite and alumina producer Alcoa Corporation CDI (ASX: AAI) hit a 52-week high of $94.31 last week.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Materials (ASX: XMJ)	3.67%
Healthcare (ASX: XHJ)	0.65%
Consumer Staples (ASX: XSJ)	0.53%
Industrials (ASX: XNJ)	0.13%
Energy (ASX: XEJ)	(0.06%)
Information Technology (ASX: XIJ)	(0.51%)
Communication (ASX: XTJ)	(0.7%)
Consumer Discretionary (ASX: XDJ)	(0.77%)
Utilities (ASX: XUJ)	(1.11%)
A-REIT (ASX: XPJ)	(1.33%)
Financials (ASX: XFJ)	(2.49%)

Final word on the week

Here at the Fool, we continued to dissect all the results of 2025 for your review last week.

We revealed the 5 best ASX 200 mining shares of 2025 for capital growth.

We also considered what $10,000 invested in the BetaShares Australian Resources Sector ETF (ASX: QRE) returned over the past year.

You might also be interested in the 5 top ASX 200 gold shares, the 12 best performing commodities, and the best sectors for dividends.

The post ASX 200 materials sector dominates as scores of mining shares hit new highs appeared first on The Motley Fool Australia.

More reading

• PLS Group shares: After a year of outperformance, is it still a buy?
• 3 monster stocks to hold for the next 3 years
• Fortescue, Rio Tinto or BHP shares? Guess which ASX mining stock paid the most passive income in 2025
• Top Australian stocks to buy with $5,000 in 2026
• Why Core Lithium, Paladin Energy, Pro Medicus, and Rio Tinto shares are dropping today

Motley Fool contributor Bronwyn Allen has positions in Alcoa, BHP Group, and South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

The PLS Group Ltd (ASX: PLS) share price has been an incredible performer, more than doubling in the past year, as the chart below shows.

It has been a great time to own a piece of the ASX lithium share. Now investors may be wondering whether the miner can continue surging ahead or whether it has finished rising.

Let’s take a look at what experts think the prospects are for the PLS Group share price.

Demand upgrades for lithium

In December, UBS pointed out that after a couple of years of difficult conditions for lithium miners, it is seeing positives for the lithium sector because of “ongoing supply disruptions, further anticipated disruptions to Chinese lepidolite producers (CATL) and resilient overall demand.”

In that December note, UBS increased its short-term to mid-term thoughts following an 11% increase in lithium demand, driven by batteries.

The broker can see the lithium market moving into a deficit from 2026 onwards. Based on that, it decided to lift its lithium (SC6 CFR China) forecast compared to its previous forecast by:

• 64% in 2026 to US$1,800 per tonne
• 148% in 2027 to US$2,850 per tonne
• 94% in 2028 to US$2,625 per tonne

However, the broker decided to leave its long-term incentive-based price for lithium unchanged at US$1,200 per tonne.

After that, the broker decided to revise its earnings projections for the lithium shares PLS Group,  IGO Ltd (ASX: IGO) and Liontown Ltd (ASX: LTR) by upwards of 100% and it’s now forecasting free cash flow yields of up to 18%, which is a “a steep turnaround from burning cash” as recently as last quarter for some.

On the battery energy storage systems (BESS) demand side of things, UBS wrote:

The global battery team has upgraded 2025-30E global battery demand by up to 11% through to 2030e, with a 4-37% lift in BESS the main driver. On their numbers, BESS will account for ~31% (1.2TWh) of total battery demand by 2030e vs. ~20% today.

PLS Group share price target

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

UBS decided to hike its price target on PLS Group shares by 67% to $4 after taking the positive conditions into account.

However, despite that huge increase of the price target, it still suggests a negative return in 2026. Indeed, it implies a fall of 14% this year.

With that in mind, other ASX shares may seem more appealing at the current valuation.

The post PLS Group shares: After a year of outperformance, is it still a buy? appeared first on The Motley Fool Australia.

More reading

• 3 monster stocks to hold for the next 3 years
• 12 ASX lithium shares rip to 52-week highs
• Buy, hold, sell: AGL, Coles, and PLS shares
• 10 best ASX 200 large-cap shares of 2025
• Here are the top 10 ASX 200 shares today

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.

Investing for the next 10 years is very different from investing for the next 10 months.

Over a decade, short-term market moves, interest rate speculation, and daily headlines fade into the background. What matters far more is owning the right businesses, staying invested through cycles, and allowing compounding to do its work.

If I were investing on the ASX with a clear 10-year horizon, this is how I would approach it.

Start with a long-term mindset

The biggest mistake investors make is letting short-term expectations drive long-term decisions.

Over the next decade, there will almost certainly be recessions, rallies, corrections, and periods of uncertainty. None of these are reasons to abandon a long-term plan. In fact, they are part of the reason long-term investing works at all.

Instead of asking where the market is heading next, I would focus on what the world is likely to need more of in 10 years’ time. Healthcare, digital infrastructure, software, logistics, and essential services are far easier to forecast than the next market swing.

Build around high-quality ASX shares

For a 10-year timeframe, quality matters most.

High-quality businesses tend to have sustainable competitive advantages, pricing power, robust balance sheets, and talented management teams. These traits help companies adapt as conditions change.

On the ASX, examples of businesses with these characteristics include global healthcare leaders like CSL Ltd (ASX: CSL) and ResMed Inc. (ASX: RMD), infrastructure-linked compounders such as Goodman Group (ASX: GMG), and software businesses with recurring revenue like TechnologyOne Ltd (ASX: TNE) and Xero Ltd (ASX: XRO).

You do not need a large number of stocks. A focused portfolio of quality businesses you understand well is often easier to hold through volatility than a long list of ideas.

Time in the market

Over 10 years, the biggest advantage an investor has is time.

Regular investing smooths out market ups and downs and reduces the pressure to time entries perfectly through dollar-cost averaging. Whether you are investing monthly, quarterly, or when cash becomes available, consistency matters more than precision.

Importantly, staying invested allows compounding to work uninterrupted. Interrupting that process by jumping in and out of the market can significantly reduce long-term returns.

For example, by investing $1,000 a month into ASX shares and achieving an average total return of 10% per annum, you could grow your portfolio to $200,000 in 10 years.

Reinvest and review

For most of the next decade, reinvestment should be the default.

Dividends that are reinvested buy more ASX shares, which generate more dividends, which then compound further. This flywheel effect becomes increasingly powerful over time.

This isn’t necessarily set and forget, investors ought to review their holdings periodically. I would focus on whether the underlying businesses are still executing, not whether the share price has moved recently. Selling decisions should be driven by fundamentals.

Foolish takeaway

Investing on the ASX for the next 10 years is not about predicting the future. It is about positioning for it.

By focusing on high-quality businesses, staying consistent, reinvesting returns, and resisting the urge to react to short-term noise, investors give themselves the best chance of benefiting from long-term compounding.

The post How to become rich with ASX shares over the next 10 years appeared first on The Motley Fool Australia.

More reading

• Here are my top 10 ASX stocks for 2026
• Buy, hold, sell: CBA, CSL, and DroneShield shares
• 10 ASX shares I’d buy with $10,000 in 2026 to beat the market
• How to build a $250,000 ASX share portfolio starting at zero
• Top Australian stocks to buy with $5,000 in 2026

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

When Australians talk about retirement, the conversation often turns to a single number. How much super do I need? But that question only makes sense once you understand what kind of retirement you’re aiming for.

In Australia, retirement spending expectations are commonly broken into two broad categories: modest and comfortable.

These aren’t marketing terms. They are practical benchmarks designed to show what different superannuation balances can realistically support in day-to-day life.

So, what does your superannuation actually buy you in retirement? Let’s break it down.

What is a modest retirement?

A modest retirement is best described as a lifestyle that covers the basics, with a little left over for simple pleasures.

According to the Association of Superannuation Funds of Australia (ASFA), a modest retirement allows retirees to meet essential living costs. This includes housing-related expenses, groceries, utilities, transport, and basic health insurance. There is room for some leisure activities, but they tend to be low-cost and infrequent.

This might mean occasional meals out, limited domestic travel, and a fairly tight discretionary budget. Overseas holidays, frequent entertainment, and major lifestyle upgrades are generally off the table, unfortunately.

In today’s dollars, ASFA estimates that both singles and couples need $100,000 in superannuation, combined with the Age Pension, to fund a modest retirement.

For many Australians, this level of retirement is achievable, but it often requires careful budgeting and reliance on the Age Pension as a core income source.

How much superannuation for a comfortable retirement?

A comfortable retirement paints a very different picture.

ASFA defines a comfortable retirement as one that enables retirees to enjoy a higher standard of living, not just get by. This includes good-quality private health insurance with Medibank Private Ltd (ASX: MPL) or NIB Holdings Limited (ASX: NHF), reliable transport, regular leisure activities, dining out, and the ability to travel both domestically and internationally with Qantas Airways Ltd (ASX: QAN) or Virgin Australia Holdings Ltd (ASX: VGN).

Importantly, it also allows retirees to absorb unexpected expenses without stress, whether that is medical costs, home maintenance, or helping family members.

To support this lifestyle, ASFA estimates that a single person needs around $595,000 in super, while a couple needs approximately $690,000 combined. This assumes they own their home outright.

At this level, superannuation becomes the primary income source, with the Age Pension playing a smaller or supplementary role.

Foolish takeaway

Your superannuation doesn’t just fund retirement, it defines your options.

A modest retirement covers the essentials and relies heavily on the Age Pension. A comfortable retirement offers flexibility, security, and the freedom to enjoy life without constant budgeting.

Understanding the difference helps you set realistic goals, measure your progress, and decide whether you need to make changes now, while there is still time for compounding to do its work.

The post Modest vs comfortable retirement: What your superannuation really buys you appeared first on The Motley Fool Australia.

More reading

• How Qantas shares could catch a welcome uplift in 2026
• Are Qantas shares a buy, hold or sell for 2026?
• Buy, hold, sell: Fortescue, Qantas, and WiseTech shares
• ASX travel shares to watch in 2026
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026

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

For many working-age Aussies, a wage is the main (and only) source of income. That’s better than having no income at all, but wouldn’t it be great to create a second income from ASX shares?

There are only so many hours in a week, so wage earnings are limited by how much we work. Creating a portfolio of ASX shares that are making passive income would significantly improve our financial stability.

What amount of a second income does someone need?

I don’t know about you, but when I’m in my 70s, I don’t want to be in a position where I have to work. I have a goal of generating enough annual dividends which can cover my core life expenditure. At that point, I’d be financially independent!

That’s a large, long-term goal which is a long time away.

When I first started investing in ASX dividend shares, I thought of the second income it produced as just budget-boosting dollars that unlocked additional spending in discretionary categories. Passive income returns don’t necessarily need to be locked away for decades like superannuation.

A $1,000 investment could create enough annual income to pay for a couple of takeaways or a restaurant meal with friends.

Building an ASX dividend share portfolio of $10,000 could mean making enough annual passive income to pay for an overnight stay (and associated spending) somewhere.

Or, the money could just be used to give more breathing room in someone’s budget that year.

If we regularly invest spare money into ASX shares, we could quickly find that plenty of money is hitting our bank accounts each year.

The power of a dividend yield

I really like ASX dividend shares for creating a second income because you don’t need to take on debt to do it (unlike buying a property). It can be done with small, regular investments.

Most importantly, businesses can pay passive income without necessarily hurting the ability to increase the dividend next year. That’s why I prefer ASX dividend shares to term deposits – there is growth potential for the income and capital value.

If I were investing with income in mind, I’d only want to buy stocks I have good confidence would deliver a similar (or larger) payout each year. I’ll run through a few examples of compelling names for a second income.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a diversified investment house that has increased its annual dividend every year for the past 27 years in a row. At the time of writing, it has a grossed-up dividend yield of 3.8%, including franking credits.

Wesfarmers Ltd (ASX: WES) is a major blue-chip that owns Bunnings, Kmart, Officeworks and Priceline. It has a focus on shareholder returns, with a goal of regularly growing the dividend. At the time of writing, it has a grossed-up dividend yield of 3.6%, including franking credits.

Future Generation Australia Ltd (ASX: FGX) is a listed investment company (LIC) that doesn’t have any management fees, instead donating 1% of net assets each year to youth charities. The fund-of-funds portfolio strategy gives significant diversification. It has a grossed-up dividend yield of 7.7%, including franking credits, at the time of writing. The ASX dividend share has increased its annual payout each year over the past decade.

Telstra Group Ltd (ASX: TLS) is Australia’s leading telecommunications business with a market-leading network that attracts more customers each year. Its growing mobile earnings are helping fund a growing dividend and it has a grossed-up dividend yield of 5.6%, including franking credits, at the time of writing.

Of course, these aren’t the only ASX shares worth investing in for a second income.

The post Don’t want to rely on your wage? Build a second income with these ASX shares appeared first on The Motley Fool Australia.

More reading

• Here are my top 10 ASX stocks for 2026
• 2 ASX dividend stocks thst should be in every income portfolio
• 10 ASX shares I’d buy with $10,000 in 2026 to beat the market
• 5 reasons to hold Telstra shares until 2030
• Where to invest $7,000 in Janaury

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many S&P/ASX 200 Index (ASX: XJO) investors on the hunt for passive income in 2025 were attracted to the likes of Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT), and Woodside Energy Group Ltd (ASX: WDS) shares.

And for good reason.

All three ASX 200 energy stocks offer market-beating dividend yields. And both BHP and Beach Energy paid out fully franked dividends in 2025. Meaning investors may be able to hold onto more of that passive income when the ATO comes knocking.

But which stock offered the best payouts? Santos, Beach Energy, or Woodside?

Let’s drill in.

Tapping into Beach Energy, Santos, and Woodside shares for passive income

Kicking off with Woodside, the ASX 200 energy stock paid a final fully franked dividend of 84.9 cents per share on 2 April. Eligible stockholders will then have received the interim Woodside dividend of 81.8 cents per share on 24 September.

That equates to a full 2025 calendar year passive income payout of $1.667 per share.

Woodside shares closed on Friday changing hands for $23.59 apiece. This sees Woodside shares trading on a fully-franked trailing dividend yield of 7.1%.

Moving on to Santos shares, the oil and gas company paid its final unfranked dividend of 16.3 cents per share on 26 March. Santos paid out its interim dividend of 20.3 cents per share, franked at 10%, on 1 October.

This works out to a full year, dividend payout of 36.6 cents per share.

At Friday’s closing price of $6.15, Santos shares trade on a partly franked trailing dividend yield of 6%.

Which brings us to the passive income on tap from Beach Energy shares in 2025.

If you owned Beach Energy stock throughout 2025, you’d have received the company’s fully-franked interim dividend of 3 cents per share on 31 March. Beach Energy then paid an all-time high final dividend of 6 cents per share on 30 September.

That totals 9 cents per share in dividend payouts in 2025.

At Friday’s closing price of $1.10 a share, this sees Beach Energy trading on a fully-franked trailing dividend yield of 8.2%.

Which ASX 200 energy shares paid the most passive income in 2025?

On a per-share basis, the $1.667 in passive income delivered by Woodside in 2025 is the clear leader.

But Woodside shares are also by far the most expensive.

The award for best dividend yield goes to Beach Energy, at 8.2%, fully franked.

How have these ASX 200 energy shares been tracking?

Over the 12 months through to market close on Friday, the ASX 200 has gained 4.67%.

Not including the passive income they’ve paid out, here’s how these three ASX 200 energy stocks have performed over this same period:

• Santos shares are down 12%
• Woodside shares are down 7%
• Beach Energy shares are down 23%

The post Santos, Beach Energy, or Woodside shares. Which ASX energy share paid the most passive income in 2025? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Codan, DroneShield, Mesoblast, and Woodside shares are storming higher today
• 5 things to watch on the ASX 200 on Friday
• Oil prices bounce after sharp sell off. Is the worst finally over?
• 5 things to watch on the ASX 200 on Thursday

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.

In 2026, I’m focused on owning businesses with clear competitive advantages, sensible balance sheets, and management teams that have proven they can execute.

They are ASX stocks I would be comfortable holding through market volatility, with the expectation that time and fundamentals do most of the work.

With that in mind, here are my top 10 ASX stocks for 2026.

CSL Ltd (ASX: CSL)

For me, CSL remains one of the highest-quality healthcare companies on the ASX. While 2025 was a difficult year, expectations have now reset. I believe the core plasma business remains structurally strong, with scale and barriers to entry that few competitors can match. As margins recover and efficiency initiatives flow through, CSL could quietly reassert itself.

SiteMinder Ltd (ASX: SDR)

SiteMinder provides mission-critical software to the global hotel industry. Its platform is deeply embedded in hotel operations, which creates strong switching costs. While profitability is still developing, the long-term opportunity remains compelling if management continues to execute.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a globally scaled specialty retailer focused on fashion jewellery with an impressive store rollout model. I like its focus on return on capital and its ability to adapt pricing and ranges quickly. If consumer conditions stabilise in 2026, Lovisa has the potential to benefit from both operating leverage and continued international expansion.

Wesfarmers Ltd (ASX: WES)

Another ASX stock I rate highly for 2026 is Wesfarmers. It is one of the most reliable blue chips on the ASX. Its Bunnings, Kmart, Officeworks, industrial, and healthcare businesses provide diversification and resilience. I continue to rate management’s capital allocation discipline highly, which I think is a critical ingredient for long-term value creation.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre has reinvented itself multiple times over its four-decade history. I like its exposure to both leisure and corporate travel, as well as its growing presence in higher-margin segments like cruises. As global travel normalises further, this ASX stock could deliver solid earnings growth in 2026.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster provides a platform to access Australian e-commerce. Its asset-light model and strong brand position it well as online penetration in furniture continues to increase. While housing-related demand can be cyclical, I think the long-term opportunity remains significant.

DroneShield Ltd (ASX: DRO)

DroneShield operates in counter-drone technology, a market that is becoming increasingly important for defence and critical infrastructure. While revenue can be lumpy, the long-term demand drivers are structural. I’m comfortable holding through volatility given the size of the opportunity.

Xero Ltd (ASX: XRO)

Xero could be one of the highest-quality software businesses on the ASX. Its platform is deeply entrenched in small business operations, with high retention and recurring revenue. After a significant share price pullback, I think the risk-reward looks more balanced for long-term investors.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare has been transformed by its merger with Chemist Warehouse. The combined business now sits at the centre of Australia’s pharmacy network, with scale across wholesale, franchising, and retail. As integration benefits flow through, I see a credible path to earnings growth.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne rounds out the list as a high-quality, lower-risk growth stock. Its enterprise software is embedded in government and large organisations, with long contracts and high switching costs. The shift to SaaS has improved its earnings quality, while its international expansion adds a long growth runway.

Foolish Takeaway

My top 10 ASX stocks for 2026 reflect how I prefer to invest. I want exposure to quality, structural growth, and businesses that can compound through different market conditions.

No stock is without risk, and not all of these will perform equally in any single year. But taken together, I believe this group offers a well-balanced mix of resilience, growth, and long-term relevance as we head through 2026.

The post Here are my top 10 ASX stocks for 2026 appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, CSL, and DroneShield shares
• This is a great place to invest $1,000 into ASX shares right now
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Motley Fool contributor Grace Alvino has positions in CSL, DroneShield, Lovisa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, DroneShield, Lovisa, SiteMinder, Technology One, Temple & Webster Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has recommended CSL, Flight Centre Travel Group, Lovisa, Technology One, Temple & Webster Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building an ETF portfolio shouldn’t feel like assembling IKEA furniture without instructions. Done right, it’s simple, boring and – most importantly – effective.

Done wrong, it’s a monster of overlapping funds and hot themes that fizzle out. Here’s how to build a sound ETF portfolio that works hard while you get on with life.

Start with the big, boring stuff

The backbone of any ETF portfolio is broad market exposure. Think global equities, not ‘AI blockchain space robotics ETF of the week’. A total world or developed markets ETF, gives you instant access to thousands of companies across countries and sectors.

Here’s an example balanced DIY ETF portfolio tailored for an Australian investor with a moderate risk/return profile. A balanced portfolio typically aims for roughly 50–60 % equities (growth) and 40–50 % bonds (defensive). It’s a classic mix that aims to grow your wealth over time without the wild swings of an all-equity portfolio.

It’s diversification in one click and diversification is the only free lunch in investing.

Home bias: helpful, not obsessive

It’s fine to tilt towards your home market for familiarity, dividends and tax efficiency. But don’t go all in, and allocate say 25% of the equities to homegrown stocks.

Vanguard Australian Shares Index ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200) for instance both offer a broad coverage of Australia’s largest stocks.

A healthy slice of international equities, about 30%, reduces your dependence on one economy, one currency and one political mood swing. Balance is the name of the game.

An ETF such as Vanguard MSCI Index International Shares ETF (ASX: VGS) gives you broad exposure to large and mid-cap companies in developed markets outside Australia like the US, Europe, Japan.

Add bonds for ballast

Equities are the engine; bonds are the shock absorbers. They won’t make headlines at dinner parties, but they reduce risk and help smooth the ride when markets wobble.

iShares Core Composite Bond ETF (ASX: IAF) does just that. It’s a broad fixed-income ETF covering Australian government and corporate bonds.

A broad bond ETF can reduce volatility and give you dry powder when stocks are on sale. The closer you are to needing the money, the more bonds deserve a seat at the table.

Keep costs on a tight leash

Fees matter. A lot. ETFs shine because they’re cheap, but “cheap” isn’t automatic. Check management fees and avoid paying extra for fancy packaging.

Over decades, even small fee differences can mean thousands of dollars more in your pocket—not the fund manager’s.

Resist the siren song of themes

Thematic ETFs are exciting. They’re also often late to the party. By the time a trend has an ETF, expectations are sky-high and valuations stretched.

If you must dabble, keep it small. Your core portfolio should be sturdy, not trendy.

Rebalance, don’t react

Markets move. Your portfolio drifts. Rebalancing – once or twice a year – forces you to trim what’s run hot and top up what’s lagging.

It’s disciplined, slightly boring and surprisingly powerful. Reacting to headlines, on the other hand, is a fast track to regret.

The golden rule: keep it simple

You don’t need 15 ETFs to look sophisticated. Three to five well-chosen funds can cover global shares, home market exposure and bonds. Simple portfolios are easier to stick with and sticking with a strategy beats constantly chasing the next shiny thing.

The post This is how I would build a sound ETF portfolio from scratch appeared first on The Motley Fool Australia.

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• 4 pros and cons of buying the Vanguard Australian Shares ETF (VAS) in 2026!

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 recommended 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.

Both Guzman Y Gomez (ASX: GYG) and Domino’s Pizza Enterprises Ltd (ASX: DMP) shares experienced plenty of volatility in 2025. 

But which is a better buy in 2026?

Here’s what experts are saying. 

Guzman Y Gomez

Guzman Y Gomez shares first listed on the ASX back in mid-2024 opening at approximately $29 per share. 

Following its arrival, the Mexican restaurant chain saw a steady stock price rise as the general sentiment around the company was positive thanks to its growth prospects. 

However after hitting more than $43 per share in December 2024, it’s been pretty much a steady decline for Guzman Y Gomez shares. 

The share price is now down more than 50% since that time, which included a fall of 45% in 2025. 

Why the fall?

Although Guzman Y Gomez reported record sales and profit growth in FY2025, the results still came in below what investors and analysts had expected.

Underlying earnings surged 152% to $14 million in fiscal 2025, driven by a 23% increase in global network sales and an expansion in operating margins. 

However, investor sentiment was dampened by rising losses in the early-stage US business and a slowdown in Australian sales momentum, which overshadowed the otherwise strong performance.

Where to from here?

Experts are seemingly tipping a rebound based on its current share price. 

Guzman Y Gomez shares are hovering around $21.50 at the time of writing.

Last month, Morgans placed a buy rating and $32.30 price target on the Mexican restaurant chain’s shares. 

From yesterday’s stock price, that indicates more than a 50% upside. 

Domino’s Pizza Enterprises

Dominos Pizza shares were down 50% from yearly highs at one point last year. 

After bottoming out around $13 per share, they have now somewhat recovered and are currently trading at around $22.45. 

Dominos shares remain down more than 20% over the last 12 months. 

The sell off largely came following the company’s FY25 financial results. 

This included: 

• Network sales down 0.9% to $4.15 billion
• Revenue down 3.1% to $2,303.7 million
• EBIT down 4.6% to $198.1 million

In 2025 Dominos also changed CEO.

So after a turbulent year, is there any upside for Dominos shares?

Estimates from analysts are mixed. 

On the positive side, Morgans currently has a buy rating and $25.00 price target on Dominos shares. 

This indicates an upside of around 11%. 

Meanwhile, the average analyst rating on TradingView shows Dominos shares are now overvalued by approximately 11%. 

Similarly, online brokerage platform Selfwealth lists Dominos shares as 10% above fair value. 

The post Are Guzman Y Gomez or Dominos shares a better buy in 2026? appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares I’d buy with $10,000 in 2026 to beat the market
• Down 45%: Are Guzman Y Gomez shares a buy yet?
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• The top ASX growth stocks that could rebound in 2026 after a brutal year

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