• Why Woodside shares could face short-term pressure as oil prices slide

    ASX energy shares falling prices of oil demonstrated by a red arrow

    The Woodside Energy Group Ltd (ASX: WDS) share price could come under pressure in the near term. This comes as global oil prices weaken amid fresh geopolitical developments.

    At last week’s market close, the company’s shares finished at $23.66.

    Woodside is Australia’s largest oil and gas producer, so changes in oil prices directly affect earnings and investor sentiment.

    Right now, the outlook for oil prices is turning softer, which could weigh on the share price.

    Here’s why.

    Oil prices are already under pressure

    Oil prices have been trending lower in recent months, and the weakness has continued into early 2026.

    According to Trading Economics, WTI crude is trading around US$57.30 a barrel. That is down roughly 22.5% over the past year.

    Brent crude, the global benchmark, is sitting near US$60.75 a barrel. That puts Brent down around 20.6% year-on-year.

    The weakness is being driven by slower global economic growth, high inventory levels, and rising production from non-OPEC countries. Supply growth has continued even as demand growth cools, particularly from China.

    The International Energy Agency expects the global oil market to run a surplus of about 3.8 million barrels per day in 2026. That surplus is limiting the impact of geopolitical risks and keeping prices under pressure.

    The US action in Venezuela adds more supply risk

    Recent events in Venezuela could also make the oil oversupply problem worse.

    The United States has taken direct control following the removal of Venezuela’s president. US leadership has signalled it plans to stabilise and manage the country during a transition period.

    Importantly for markets, the US has also made clear it wants to bring Venezuela’s oil industry back online.

    Venezuela holds the largest proven oil reserves in the world. However, years of sanctions, underinvestment, and poor management have crushed production.

    If US companies are allowed to step in, as President Trump has indicated, production could rise over time.

    Even the possibility of more Venezuelan oil returning to global markets puts pressure on prices today.

    Why this matters for Woodside

    Woodside’s earnings are closely linked to oil prices, particularly for its oil-heavy assets.

    Lower oil prices generally mean:

    • Lower revenue

    • Weaker cash flow

    • Less room for dividend growth

    • Softer investor confidence

    Even if Woodside’s production remains strong, falling oil prices can still hurt profitability.

    In the current environment, investors may want to become more cautious on oil-exposed stocks, including Woodside.

    Foolish bottom line

    Woodside is a quality energy business, but oil markets move in cycles.

    With oil prices under pressure and the risk of more global supply emerging, Woodside shares may face short-term downside. Investors should keep a close eye on oil prices and be prepared for volatility before conditions improve.

    The post Why Woodside shares could face short-term pressure as oil prices slide appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woodside Petroleum Ltd right now?

    Before you buy Woodside Petroleum Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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

  • Down 20% in a year, can REA Group shares rebound in 2026?

    Red arrow on a stand going down with wooden houses next to it.

    REA Group Ltd (ASX: REA) shares have fallen out of favour after several strong years on the ASX. The share price is now down around 20% over the past 12 months and almost 5% in the last month alone.

    That pullback has raised fresh questions about whether a rebound could be on the cards in 2026.

    Here’s what’s driving the share price lower, what brokers are saying, and whether this blue-chip could rebound.

    What’s driving the weakness?

    REA Group shares were much higher in early 2025, supported by strong profits and its dominant position in online property listings.

    Since then, the share price has fallen as investors shifted away from technology and growth stocks. In 2025, the ASX tech sector lagged the broader market, even as the overall share market posted modest gains.

    A steady flow of company news has also weighed on sentiment. Management changes, regulatory filings and recent share price moves have added to investor uncertainty.

    While REA’s core Australian business continues to perform well, some overseas operations have been weaker. In India, for example, revenue fell in the first quarter, raising questions about growth outside Australia.

    Earnings still showing strength

    Even though the share price has fallen, REA’s latest results show the business continues to grow.

    In the first quarter of FY26, revenue rose by about 4% compared with last year, while profits increased by roughly 5%, supported by steady demand in REA’s key markets.

    The company also said usage of realestate.com.au remains strong, with high levels of customer engagement. REA continues to invest in technology to defend its leading position in online property listings, even as growth moderates.

    What brokers think

    Brokers do not all agree on REA Group, but most still see upside from current share price levels.

    Macquarie has a neutral rating and a price target of $220. This suggests the broker sees some upside, but expects a more gradual recovery.

    Other brokers are more optimistic. UBS has a price target of $255, Bell Potter sits at $244, and Jefferies has a target of $225. While some targets have been trimmed recently, they still sit above last week’s closing share price of $184.78.

    Overall, the average broker price target is closer to $240. That implies potential upside of roughly 30% over the next 12 months if the company meets expectations.

    So, is a rebound likely?

    A rebound is not certain, but there are signs that the worst of the sell-off may be over.

    REA remains profitable, broker targets sit above current levels, and sentiment could improve if interest rate cuts support growth stocks.

    REA is not a short-term trade, but 2026 could appeal to long-term investors comfortable with volatility.

    The post Down 20% in a year, can REA Group shares rebound in 2026? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in REA Group right now?

    Before you buy REA Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and REA Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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

  • Is Wesfarmers stock a buy for its 3.6% dividend yield?

    Male hands holding Australian dollar banknotes, symbolising dividends.

    Investors can buy a variety of blue-chips on the ASX, with Wesfarmers Ltd (ASX: WES) stock being a popular option. The owner of Bunnings and Kmart may not be the biggest business on the ASX, but there are reasons to think it’s one of the more appealing for its dividend yield.

    I like it when a company can provide investors with growing dividends and capital growth as that can lead to compelling total returns. Dividends are a powerful form of passive income and Wesfarmers is one of the leaders of the ASX at providing payouts.

    Let’s take a look at whether it’s an appealing option for its dividend yield.

    Impressive passive income record

    The company is committed to growing its payout for shareholders over time. Wesfarmers has an ultimate goal of delivering satisfactory returns to shareholders, and dividends are a part of that.

    It wants to invest in businesses where there are opportunities, and acquire or divest businesses to increase long-term shareholder wealth. Management also manages the company’s balance sheet to achieve an appropriate risk profile and optimise the cost of capital, while maintaining the flexibility to take advantage of opportunities as they arise.

    In terms of dividends, Wesfarmers stated on its website:

    As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow.

    The company has grown its annual dividend per share each year since divesting the Coles Group Ltd (ASX: COL) business. Not many ASX blue-chip shares can say they’ve increased their payout every year since 2020.

    The latest annual dividend per share in FY25 came to $2.06, representing a year-over-year increase of 4%. At the current Wesfarmers stock price, that represents a grossed-up dividend yield of 3.6%, including franking credits.

    On the dividend side if things, the payout isn’t significant or attractive. But, growth is expected in the 2026 financial year and 2027 financial year.

    According to the projection on Commsec, Wesfarmers is forecast to pay an annual dividend per share of $2.39 in FY27. That translates into a potential future grossed-up dividend yield of 4.2%, including franking credits.

    Is the Wesfarmers stock price a buy?

    From my perspective, Wesfarmers is one of the highest-quality businesses around because of the strong returns on capital (ROC) that Bunnings and Kmart deliver for Wesfarmers, enabling the business to deliver a return on equity (ROE) of more than 30%.

    Over time, I’m expecting Wesfarmers to deliver strong levels of earnings thanks its ability to invest in its growing segments and unlock further opportunities in new areas such as healthcare, lithium mining and Anko retailing in the Philippines. In five years, I think there will be more businesses in the Wesfarmers stable.

    I think it can deliver over the long-term, however, it’s priced at 33x FY26’s estimated earnings – this is higher than the price/earnings (P/E) ratio has been over the long-term.

    Additionally, according to Commsec, there are currently six analyst sell ratings on the business, seven hold ratings and one buy rating. In other words, the experts are seeing better value elsewhere.

    The post Is Wesfarmers stock a buy for its 3.6% dividend yield? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers Limited right now?

    Before you buy Wesfarmers Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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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 positions in and has recommended Wesfarmers. 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.

  • Is this ASX platinum miner back in favour after a sharp rebound?

    Miner and company person analysing results of a mining company.

    Shares in Zimplats Holdings Ltd (ASX: ZIM) have surged back into the spotlight.

    The ASX miner’s share price is up roughly 75% in 2025, including a 25% jump over the past month, as platinum prices rebound sharply from last year’s lows.

    With momentum returning to the platinum market, is Zimplats now worth buying after this strong rally?

    Let’s break it down.

    Platinum prices have turned a corner

    The biggest driver behind Zimplats’ recent rally has been the turnaround in platinum prices.

    After a difficult period in 2024, platinum has rebounded strongly into early 2026. Prices are now trading above US$2,100 per ounce, supported by tighter supply conditions and renewed investor interest in precious metals.

    Supply constraints in South Africa remain a major factor. Ongoing power issues, rising costs, and operational disruptions have limited output across the region, helping to tighten the global market.

    At the same time, demand has held up better than expected. Platinum is used mainly in car exhaust systems to reduce emissions and in various industrial products. Investor interest in precious metals has also increased as commodity prices rise.

    What Zimplats reported in its latest update

    In its most recent quarterly activities report, Zimplats highlighted steady operational performance across its Zimbabwe mines.

    Mining and processing volumes were similar to the previous quarter, although metal output dipped slightly due to lower ore quality. Overall, production remained close to expectations.

    Costs, however, moved higher. Cash costs per ounce rose by about 30% compared with the previous quarter, mainly due to higher labour, power and input costs. The company said it is continuing to focus on cost control to manage these pressures.

    Despite higher costs, Zimplats remains in a strong financial position. The company reported a net cash balance, meaning it has more cash than debt on its balance sheet.

    Is Zimplats a buy?

    Zimplats gives investors direct exposure to a recovering platinum price and operates long life mines with existing infrastructure.

    However, after a 75% rise in 2025, much of the short-term optimism may already be priced in. Investors need to be comfortable with ups and downs in platinum prices and the risks of operating mines in Zimbabwe.

    Higher costs and changes in metal prices remain key risks to watch over the year ahead.

    While the longer-term outlook for platinum is improving, I would prefer to watch Zimplats for now rather than buy at current levels. A pullback in the share price could offer a more attractive entry point.

    The post Is this ASX platinum miner back in favour after a sharp rebound? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Zimplats right now?

    Before you buy Zimplats shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zimplats wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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

  • 2 ASX mining shares to buy for 2026

    Smiling man sits in front of a graph on computer while using his mobile phone.

    ASX 200 materials was the best performer of the 11 market sectors in 2025, mostly because of rising ASX mining shares.

    The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and produced total returns, including dividends, of 36.21%.

    The sector outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 4:1.

    Wilson Asset Management lead portfolio manager Matthew Haupt expects the new year to remain favourable for ASX mining shares.

    China is pivoting its construction focus from property to AI infrastructure, providing support to iron ore and aluminium prices.

    China is also implementing measures to support electric vehicle (EV) manufacturing, which bodes well for lithium prices.

    The measures include a plan to double EV charging capacity to 180 gigawatts by 2027 amid EVs forming the majority of new car sales in China for the first time in October.

    Many of the best-performing commodities of 2025 reflect the green energy transition taking hold of the global economy, as well as a preference for safe-haven investing.

    The silver price ripped 147%, gold rallied 65%, lithium increased 58%, copper rose 42%, and aluminium increased 17%.

    Amid all these tailwinds, here are two ASX mining shares with buy recommendations from the experts.

    Capstone Copper Corp CDI (ASX: CSC)

    The Capstone Copper share price has risen by 43.5% over the past 12 months.

    The ASX copper mining share closed at $14.54 apiece on Friday.

    Capstone Copper has a portfolio of long-life copper mines in Chile, Mexico, and the United States.

    Macquarie has a buy rating on Capstone Copper shares with a 12-month price target of $17.

    In a recent note, the broker said:

    We increase CSC EPS 9%/18% in CY25/26e due to Cu price upgrades, remaining our preference in the Cu space due to its strong organic growth profile and attractive relative value.

    Resolute Mining Ltd (ASX: RSG)

    The Resolute Mining share price has charged 201% higher over 12 months.

    The ASX gold mining share closed at $1.24 on Friday.

    Resolute Mining is an African-focused gold miner currently developing a third gold project, Doropo, in Cote d’Ivoire to supplement existing production from the Syama mine in Mali and the Mako mine in Senegal.

    Resolute Mining shares ascended into the benchmark index in the December rebalance.

    Macquarie has an outperform rating on Resolute Mining shares with a 12-month price target of $1.45.

    The broker raised its price target after Resolute issued a major update on Doropo last month.

    The post 2 ASX mining shares to buy for 2026 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Macquarie Group Limited right now?

    Before you buy Macquarie Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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    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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Can Santos shares reignite after a 20% slide?

    Oil industry worker climbing up metal construction and smiling.

    Santos Ltd (ASX: STO) shares spent much of 2025 under a cloud.

    By Friday’s close, Santos shares sat at $6.15, down 20.4% in the past 6 months. Takeover drama, environmental criticism and regulatory headaches have all taken turns knocking the energy stock lower.

    Still, some analysts reckon the selling may have gone too far. This begs the question, whether the ASX energy share is good value at this level.

    Takeover chaos

    Last year delivered no shortage of fireworks for Santos shares. A failed takeover attempt from an ADNOC-led consortium put Santos firmly in the spotlight. It exposed how quickly governance and regulatory hurdles can derail big-ticket deals and send the share price south.

    Behind the noise, though, Santos continues to generate solid cash flow. Management is pushing ahead with LNG expansion plans while talking up carbon initiatives designed to keep the company relevant in a transitioning energy system.

    Projects like Barossa are central to that strategy. Once online, Barossa is expected to lift LNG volumes to Asian markets that still want reliable, high-calorific gas. Santos has also locked in mid-term LNG supply contracts this year, a sign demand for its product hasn’t evaporated.

    If those gains hold, stronger cash flow and more flexibility for shareholder returns should follow.

    Size and geographics matter

    Scale remains one of Santos’ biggest advantages. Alongside Barossa, the company’s projects in PNG and Alaska add geographic diversity and reduce reliance on any single asset.

    Santos is also leaning hard into low-emissions technology, arguing it can keep producing gas while lowering its carbon footprint. Whether critics are convinced is another question, but the strategy matters as regulators and investors sharpen their focus on emissions.

    Analyst’s takeout

    This is no free kick. Operational disruptions from weather and outages, volatile gas prices and ongoing scrutiny of emissions programs keep Santos firmly in the risk column. Oil prices just experienced their worst year since 2020.

    The failed takeover attempt also showed just how sensitive the stock can be to external shocks.

    Despite the risks, analysts remain cautiously constructive. Santos offers exposure to a large, cash-generating gas producer with production growth ahead and a stated plan for lower-carbon operations.

    The average 12-month price target sits near $7.30, implying 19% upside. Some analysts are significantly more optimistic and think the share price could climb to $8.73 next year. That represents an impressive 42% upside from the current trading price.

    UBS is one of the brokers that rates the Santos share price as a buy, with a price target of $8.10. The broker said it thinks the company could generate US$1.5 billion of net profit in FY26 and US$1.7 billion in FY28.

    The post Can Santos shares reignite after a 20% slide? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Santos Limited right now?

    Before you buy Santos Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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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.

  • 5 best ASX 200 mining shares of 2025

    Happy man in high vis vest and hard hat holds his arms up with fists clenched.

    ASX 200 mining shares enjoyed a strong finish to 2025 after several commodities surged over the year.

    The silver price rose by a staggering 147% and reached a record US$83.62 per ounce in December.

    Demand for silver increased due to surging industrial usage and the US designating it a critical material.

    The gold price increased another 65% in 2025, its greatest annual rise in more than four decades, building on its 27% gain in 2024.

    Strong central bank purchasing, lower interest rates, and less confidence in the US dollar as the reserve currency fuelled the rally.

    A Goldman Sachs poll conducted in November found that one in three institutional investors expect gold to rise above US$5,000 this year.

    Lithium began a long-awaited recovery in July after three years of dramatic declines followed by stagnation.

    The lithium carbonate price rose 58% in 2025 amid improving demand for batteries, EVs, and new infrastructure.

    Analysts at Trading Economics say the lithium carbonate price is now at a 19-month high.

    Copper, which is a key ingredient in electrification, rose 42% as the green energy transition pushed global demand higher.

    Commodity price strength led to the materials sector experiencing the strongest capital growth of the 11 market sectors in 2025.

    The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and produced total returns, including dividends, of 36.21%.

    Materials outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 4:1.

    The ASX 200 rose 6.8% and delivered total returns of 10.32%.

    Mining stocks dominate the materials sector, so let’s check out the top performers of 2025.

    5 best ASX 200 mining shares for capital growth

    Pantoro Gold Ltd (ASX: PNR)

    This ASX 200 gold share skyrocketed 220% to close out 2025 at $4.89.

    Pantoro Gold only joined the benchmark index in the December quarter rebalance.

    Its 52-week high in 2025 was $6.61.

    Resolute Mining Ltd (ASX: RSG)

    Fellow ASX 200 gold share Resolute Mining streaked 206% to finish the year at $1.23.

    Its 52-week high was $1.32.

    Liontown Ltd (ASX: LTR)

    The Liontown share price roared 197% higher to finish the year at $1.58.

    The ASX lithium share’s 52-week high was $1.75.

    Regis Resources Ltd (ASX: RRL)

    The Regis Resources share price exploded 196% to close at $7.55 on 31 December.

    The ASX 200 gold share’s 52-week high was $7.83.

    Genesis Minerals Ltd (ASX: GMD)

    The Genesis Minerals share price soared 194% to close out the year at $7.25.

    Its annual high was $7.63.

    The post 5 best ASX 200 mining shares of 2025 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Genesis Minerals Limited right now?

    Before you buy Genesis Minerals Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Genesis Minerals Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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    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 Goldman Sachs Group. 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.

  • EOS shares are near all-time highs. Here’s why I think $15 is next in 2026

    Military engineer works on drone

    Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) have delivered one of the strongest performances on the ASX over the past year. In fact, the stock ranked 4th for share price growth within the S&P/ASX 300 Index (ASX: XKO).

    The defence technology company’s shares surged 668% in 2025, closing last week at $9.95, just below record highs. So, is it too late to buy?

    Based on what’s building inside the business, I don’t think it is.

    Here’s why I believe EOS shares could reach $15 in 2026.

    This is no longer a speculative story

    A year ago, EOS was still seen by many as a high-risk defence technology play.

    Today, the company now has a large and growing contract book, established customers, and improving cash flow. The focus has shifted from future potential to executing signed contracts.

    As at late 2025, EOS reported an unconditional contract backlog of more than $400 million, giving the company strong revenue visibility into 2026 and beyond.

    A flood of contracts late in 2025

    EOS finished 2025 with a string of major announcements that, in my view, set up a strong 2026.

    Here are some of the highlights.

    In December 2025, EOS secured a $33 million contract supporting a US Army program, further expanding its presence in North America.

    Just days earlier, the company announced a US$21 million remote weapon systems order from a North American customer, with production scheduled through 2026 and 2027.

    EOS also entered a US$80 million conditional contract for high-energy laser systems in mid-December with South Korea, opening the door to a large Asian defence market.

    These wins came on top of earlier 2025 contracts, including the $108 million LAND 400 Phase 3 remote weapon station contract and multiple Slinger counter-drone orders across Europe and the Middle East.

    Why the backlog could keep growing

    What makes EOS especially interesting right now is not just what it has already won, but what could come next.

    Management has been clear that many of its systems are now proven in the field. In defence, that often leads to repeat orders, upgrades, spare parts, and long-term support contracts.

    EOS has also flagged follow-on remote weapon system orders, rising counter-drone demand, and multiple high-energy laser opportunities that could be signed over 2026 and 2027.

    Some of these future programs are very large. In previous updates, EOS has pointed to potential opportunities worth hundreds of millions of dollars if negotiations turn into signed contracts.

    The global backdrop is doing EOS a big favour

    Governments around the world are increasing defence spending, particularly in areas like drone defence, vehicle protection, and automated battlefield systems. These are exactly the markets EOS operates in.

    Importantly, EOS is not trying to sell early-stage or unproven technology. Its systems are already deployed and operating, which lowers risk for customers and helps speed up procurement decisions.

    That matters when compared with competitors.

    For example, Rheinmetall and other European groups have been investing in laser weapons for years, but commercial products are still not widely available. In France and Israel, several defence companies are working on laser and counter-drone systems, but efforts are often spread across multiple partners, with technology ownership shared and deployment still limited.

    By contrast, EOS fully owns its key laser technologies and intellectual property, can manufacture independently, and has already secured export contracts.

    Why I think EOS can reach $15

    At $9.95, EOS is no longer a small or unknown stock. But that doesn’t mean it’s expensive.

    Today, EOS has a market capitalisation of roughly $1.92 billion, while holding more than $400 million in secured contract backlog scheduled to be delivered over the next few years.

    With margins improving and multiple large contracts moving from signing into delivery, I believe earnings could rise sharply over the next two years.

    If EOS continues converting its backlog into revenue and secures even a portion of its future pipeline, today’s valuation may end up looking conservative.

    That’s why I think $15 in 2026 is achievable.

    How EOS stacks up against peers

    The valuation case becomes even more interesting when compared with other ASX defence stocks.

    For example, DroneShield Ltd (ASX: DRO) currently has a market capitalisation of around $3.04 billion, despite having a smaller value of signed contracts and lower revenue visibility than EOS.

    DroneShield focuses mainly on so-called soft-kill counter-drone systems, which disrupt or disable drones electronically. These systems play an important role, but outcomes can vary depending on conditions and countermeasures.

    By contrast, EOS specialises in hard-kill solutions using kinetic weapons integrated into remote weapon systems. These systems physically neutralise threats and have been tested extensively in customer field trials, making them attractive for frontline military use.

    This difference in capability, combined with EOS’s larger secured backlog and growing export footprint, helps explain why I see further upside in EOS shares from here.

    Final thoughts

    EOS shares have already delivered exceptional returns, but I don’t think the market is fully pricing in what lies ahead.

    With a growing backlog and multiple large contracts moving into delivery, EOS appears to be entering a new phase of earnings growth.

    For investors willing to accept some volatility, I believe EOS shares can reach $15 in 2026 as earnings continue to accelerate.

    The post EOS shares are near all-time highs. Here’s why I think $15 is next in 2026 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Electro Optic Systems Holdings Limited right now?

    Before you buy Electro Optic Systems Holdings Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Electro Optic Systems Holdings Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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    Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Which ASX shares paid the best dividends in 2025?

    A wad of $100 bills of Australian currency lies stashed in a bird's nest.

    There are many investing strategies that can bring you strong returns – one of which is dividend investing. 

    A dividend is a portion of a company’s profits paid to shareholders, and investors may target dividend-paying shares because they provide passive income.

    This can bring returns even if a stock price falls. 

    On the flip side, if a dividend stock also increases in value, you’ve brought yourself the magical combination of passive income and capital growth. 

    Dividends are shrinking

    According to S&P Global, Australia has historically been one of the highest-yielding equity markets in the world. 

    However, this has shifted in the last few years. 

    As of December 31, 2024, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was approximately 3.5%.

    While this still outpaced Europe, Canada and the US, it’s significantly lower than its long-term average of approximately 4.5%.

    So what does this mean for dividend investors?

    Broadly speaking, it’s harder to capture high yields, and high paying yields are increasingly coming from a smaller pool of companies. 

    With that in mind, here are two dividend shares that paid out some of the best yields in 2025. 

    APA Group (ASX: APA)

    APA Group is Australia’s largest energy infrastructure company. 

    In 2025, it paid out an annual dividend of 57 cents per share. 

    This has been on a yearly uptick for more than 20 years. 

    Based on its current share price, this equates to a dividend yield of roughly 6.3%, well above the average trailing yield of the ASX 300.

    If an investor held $10,000 worth of shares in APA Group, they would have earned more than $800 in passive income based on last year’s opening share price of $7.03. 

    Not only did it reward investors with strong dividends, it also rose more than 28% last year.

    Woodside Energy Group Ltd (ASX: WDS)

    Woodside is the largest operator of oil and gas production in Australia and is Australia’s largest independent dedicated oil and gas company.

    Last year, it paid roughly $1.66 per share in total dividends for the year.

    Based on its current share price, that equates to a dividend yield of approximately 7%. 

    At the start of last year, shares were trading at roughly $25.00 per share. 

    An investor who held $10,000 in Woodside shares at that price for the last year would have enjoyed $700 in passive income. 

    Woodside also may appeal to dividend investors as it maintains its status as one of Australia’s largest companies. 

    This means investors hold a quality company with a proven track record, as well as one that pays strong yearly dividends. 

    The post Which ASX shares paid the best dividends in 2025? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woodside Petroleum Ltd right now?

    Before you buy Woodside Petroleum Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 18 November 2025

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

  • ASX 200 energy sector leads the market ahead of OPEC+ meeting

    Three women dance and splash about in the shallow water of a beautiful beach on a sunny day.

    ASX 200 energy shares outperformed the 10 other market sectors last week, rising 1.5%.

    Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.35% over the short trading week to close at 8,727.8 points.

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

    Let’s review.

    Energy shares led the ASX sectors last week

    Brent crude oil futures rose by 0.66% to US$61.25 per barrel on Friday, the first day of trading for the new year.

    The Brent oil price experienced its biggest annual fall in five years last year due to ongoing geopolitical uncertainty.

    On Friday, Trading Economics analysts said:

    Geopolitical developments remained a backdrop, as Washington stepped up pressure on Venezuela’s energy sector by targeting China and Hong Kong based firms and vessels allegedly involved in bypassing export restrictions.

    Separately, tensions between Russia and Ukraine flared over the New Year period, with reciprocal strikes hitting Black Sea port facilities and damaging key energy infrastructure.

    Meanwhile, OPEC+ will meet today (Australian time) to decide whether to maintain its November agreement to pause output increases.

    Let’s take a look at how some of the ASX 200 energy shares performed last week.

    The Woodside Energy Group Ltd (ASX: WDS) share price rose 2.24% to close the week at $23.66.

    The Santos Ltd (ASX: STO) share price lifted 1.15% to $6.15.

    The Beach Energy Ltd (ASX: BPT) share price ascended 1.29% to $1.17.

    Ampol Ltd (ASX: ALD) shares fell 0.14% to $32.12 apiece.

    The Viva Energy Group Ltd (ASX: VEA) share price eased 0.24% to $2.09 on Friday.

    The Karoon Energy Ltd (ASX: KAR) share price finished the week steady at $1.56.

    ASX 200 uranium share Paladin Energy Ltd (ASX: PDN) jumped 4.09% to close the week at $10.13.

    The Deep Yellow Ltd (ASX: DYL) share price lifted 3.99% to $1.95.

    ASX 200 coal share Yancoal Australia Ltd (ASX: YAL) rose 0.81% to $5.01.

    Whitehaven Coal Ltd (ASX: WHC) shares fell 0.89% to $7.81 apiece.

    The New Hope Corporation Ltd (ASX: NHC) share price rose 0.25% to $4.05.

    ASX 200 market sector snapshot

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

    Over the four trading days of last week:

    S&P/ASX 200 market sector Change last week
    Energy (ASX: XEJ) 1.5%
    Communication (ASX: XTJ) 0.22%
    Financials (ASX: XFJ) 0.17%
    Consumer Staples (ASX: XSJ) 0.02%
    Consumer Discretionary (ASX: XDJ) (0.24%)
    Industrials (ASX: XNJ) (0.32%)
    Utilities (ASX: XUJ) (0.48%)
    Healthcare (ASX: XHJ) (0.65%)
    Materials (ASX: XMJ) (0.94%)
    Information Technology (ASX: XIJ) (1.3%)
    A-REIT (ASX: XPJ) (1.87%)

    The post ASX 200 energy sector leads the market ahead of OPEC+ meeting appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    * Returns as of 18 November 2025

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