If you are looking for big returns in 2026, then read on!

That’s because experts believe that the ASX shares in this article have the potential to smash the market next year.

Here’s what they are recommending to clients for the year ahead:

Catapult Sports Ltd (ASX: CAT)

The team at Morgans thinks that this sports technology company’s shares could be strong performers in 2026.

Its analysts have put a buy rating and $6.25 price target on the ASX share. Based on its current share price of $4.14, this implies potential upside of 50% for investors over the next 12 months.

Morgans thinks that Catapult is well-placed to deliver strong top line growth through to at least 2028. It said:

Catapult Sports Ltd (CAT) is a global leader in sports performance technology that provides a comprehensive all-in-one platform for elite professional and collegiate sports. This encompasses coaching, scouting, analytics and athlete management. Initially landing with its core wearables technology, CAT has since expanded its service offering and opened up new key verticals assisting its penetration into a large addressable market of ~20k teams globally. We forecast strong topline growth for CAT, estimating a ~20% ACV 3-year CAGR, reaching ~US$180m by FY28. A scalable platform and strong SaaS metrics should see CAT join the ‘Rule of 40’ club by FY27. We initiate coverage on Catapult Sports (CAT) with a Buy recommendation and a A$6.25 per share price target.

Telix Pharmaceuticals Ltd (ASX: TLX)

Another ASX share with the potential to deliver big returns next year according to experts is radiopharmaceuticals company Telix.

Bell Potter has a buy rating and $23.00 price target on its shares. This is almost double its current share price.

The broker is expecting a better year for Telix, supported by the potential approval of its Zircaix product. It explains:

We are confident regarding the approval in CY 2026 of Zircaix following resubmission of the Biological License Application (BLA). The FDA rejected the original BLA due to CMC (chemistry manufacturing & control) matters at Telix’s manufacturing partner. There were no matters related to safety or efficacy. We expect the market for Zircaix once approved will be in excess of US$500m. The product has been included in guidelines for disease management in the US and Europe and continues to be available in the US under the expanded access program. Elsewhere, sales of Iluuccix/ Gozellix in the PSMA franchise continue to grow and were recently boosted by the refresh on the pass through pricing.

The post 2 ASX shares experts think will smash the market in 2026! appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares I would buy in 2026
• In 2036, you will be glad you bought these ASX shares today
• 5 ASX tech shares to buy and hold until 2035
• These are the 10 most shorted ASX shares
• 2 ASX 200 shares down 30% or more that could be a new years buy

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

Investing doesn’t have to feel stressful. Yet for many people, share market volatility, constant negative headlines, and the fear of picking the wrong stock can turn investing into a source of anxiety rather than wealth creation.

If my goal were simple peace of mind, while still giving my money a strong chance to grow, I would build a portfolio around high-quality, globally diversified ASX exchange traded funds (ETFs).

These would be the kind you can buy, hold, and largely ignore, confident that time and compounding are doing the work for you.

With that in mind, here’s a three-ETF portfolio I would build.

iShares Global Consumer Staples ETF (ASX: IXI)

The foundation of this portfolio would be the iShares Global Consumer Staples ETF.

This fund invests in businesses that sell everyday essentials. These are the products people keep buying regardless of economic conditions. Its holdings include companies like Walmart (NYSE: WMT), Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), PepsiCo (NASDAQ: PEP), and Nestlé (SWX: NESN).

What makes the iShares Global Consumer Staples ETF so appealing from a sleep-well-at-night perspective is its predictability. These companies tend to generate steady cash flows, maintain strong pricing power, and perform relatively well during market downturns. While they may not be the fastest growers, they provide stability when share markets get rough.

iShares S&P 500 ETF (ASX: IVV)

Another addition to the portfolio would be the popular iShares S&P 500 ETF.

This ASX ETF provides exposure to 500 of the largest and most successful stocks in the United States. These span technology, healthcare, finance, consumer goods, and industrials stocks. Its holdings include Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOGL), McDonald’s (NYSE: MCD), and Visa (NYSE: V).

Rather than trying to guess which US stock will win next, this fund lets investors own the entire engine room of American capitalism. Over decades, this broad exposure has proven to be one of the most reliable wealth-building tools available to everyday investors.

Warren Buffett has often suggested that investors just buy a low cost index fund like this one and it isn’t hard to see why.

Betashares Global Quality Leaders ETF (ASX: QLTY)

To round things out, I would add the Betashares Global Quality Leaders ETF to the portfolio.

This ASX ETF focuses on companies with strong balance sheets, high returns on equity, and sustainable competitive advantages. Its portfolio includes names like Visa, Microsoft, Nvidia (NASDAQ: NVDA), L’Oréal (FRA: LOR), and ASML Holding (NASDAQ: ASML).

This ETF is designed to avoid weak businesses and instead concentrate on stocks that can compound earnings through economic cycles.

It was recently recommended by analysts at Betashares.

The post The ASX ETF portfolio I’d build if I wanted to sleep well at night appeared first on The Motley Fool Australia.

More reading

• Own IVV or IOO ETFs? Here’s your next dividend
• How to invest like Warren Buffett without picking ASX stocks
• How to invest your first $500 in ASX shares the smart way
• 3 super strong ASX ETFs to buy with $10,000
• 3 ASX ETFs I’m buying in January 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 positions in and has recommended ASML, Alphabet, Apple, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended ASML, Alphabet, Apple, Microsoft, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a modest year for the S&P/ASX 200 Index (ASX: XJO), rising approximately 6.3%. 

The team at The Motley Fool have been covering top performers, undervalued shares, and everything in between. 

For investors setting their sights on quality companies that could be undervalued heading into the new year, here are three ASX 200 stocks to consider. 

Aristocrat Leisure Ltd (ASX: ALL)

This ASX 200 stock is an Australian gaming technology company licensed in around 340 gaming jurisdictions in more than 100 countries.

Aristocrat offers a range of products and solutions in the gaming space including poker machines and casino management systems.

In 2025, its share price tumbled almost 16%. 

Despite this, the company has a strong market presence both in Australia and the US. 

Furthermore, it boasts healthy financials. 

In November, the gaming company reported: 

• Revenue growth of 11% (8% in constant currency), driven by market share gains across the portfolio and the inclusion of NeoGames for the full 12 month period.
• 12% growth in normalised NPATA to $1.6 billion (9% in constant currency). 
• EBITDA growth of 15.6%

It seems brokers also view this ASX 200 stock as undervalued. 

Bell Potter has a buy rating and $80.00 price target, indicating an upside of more than 38%. 

REA Group Ltd (ASX: REA)

REA Group has been hotly covered here at The Fool over the past months. 

The company behind online real estate marketplace realestate.com.au has seen its share price fall 30% since August. 

It now appears to have fallen below fair value, and could present a buy low opportunity for investors. 

The ASX 200 stock still maintains a dominant market position here in Australia. 

Earlier this month, Macquarie placed a $220.00 price target on REA Group shares, which indicates an upside of almost 20%. 

However the broker did note the risk of Australian rate hikes could present a headwind. 

That being said, I still see this ASX 200 stock as trading below fair value. 

Cochlear Ltd (ASX: COH)

It wasn’t a great year for many ASX healthcare stocks, including Cochlear.

Cochlear’s main products include cochlear implants, bone-anchored hearing devices, and associated sound processors.

Its stock price is down more than 11% over the year. 

However this ASX 200 stock maintains a blue-chip status as the world’s leading cochlear implant device manufacturer with around half of global market share.

Its global positioning will help it benefit long term from ageing populations. 

UBS currently has a buy recommendation with a $350.00 price target, indicating an upside of more than 34%. 

The post 3 ASX 200 bargain buys heading into the new year appeared first on The Motley Fool Australia.

More reading

• The ASX blue chip shares I’d buy during the next correction
• Which ASX gaming stock to buy in 2026: Aristocrat Leisure or Light & Wonder?
• These could be 3 of the best ASX stocks to own in 2026
• The best Australian stocks to buy in 2026
• Should you buy low on these ASX 200 shares before the new year?

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 positions in and has recommended Cochlear. 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.

Trying to predict what the share market will do next month or even next year is a tough game.

But looking a decade ahead is often where long-term investors can gain an edge. Over that timeframe, short-term noise fades away and the quality of the underlying business really starts to matter.

So, if I were building a portfolio with a 10-year mindset, here are three Australian stocks that I think could deliver the goods.

NextDC Ltd (ASX: NXT)

NextDC is well-placed to benefit from several unstoppable trends, including cloud computing, artificial intelligence, and the ongoing digitisation of the economy. As more data is created, stored, and processed, demand for high-quality, secure, and well-connected data centres continues to grow.

What makes NextDC particularly compelling is the long-term nature of its customer contracts and the mission-critical role its infrastructure plays. Once a customer is embedded in a data centre ecosystem, switching is costly and complex.

It is no wonder then that the team at Morgans recently upgraded this Australian stock to a buy rating with a $19.00 price target.

ResMed Inc (ASX: RMD)

Another Australian stock to buy and hold for 10 years is ResMed. It has spent decades building a dominant position in sleep apnoea treatment, and the opportunity ahead remains enormous.

There are an estimated one billion people globally suffering from sleep apnoea, with the vast majority undiagnosed. That gives ResMed a massive, underpenetrated market to keep growing into.

With strong margins, recurring revenue, and a global footprint, ResMed has many of the hallmarks of a long-term compounder that can steadily grow earnings over many years.

The team at Macquarie is bullish on its outlook. It has an outperform rating and $49.20 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Lastly, TechnologyOne could be an Australian stock to buy and hold. It provides enterprise software to governments, councils, and large organisations, sectors that value reliability over experimentation.

Its transition to a software-as-a-service model has delivered highly recurring revenue, strong cash generation, and excellent customer retention. Once embedded, TechnologyOne’s systems become deeply integrated into customer operations, making them very sticky. Over a 10-year horizon, that kind of predictable, compounding growth can be incredibly powerful.

In fact, management believes it can double in size every five years. So, if it delivers on this, it could triple in size over the next decade.

UBS is a fan and has a buy rating and $38.70 price target on its shares.

The post The Australian stocks I’d trust for the next 10 years appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares I would buy in 2026
• My blueprint for monthly income starting with $40,000
• 5 ASX tech shares to buy and hold until 2035
• 1 no-brainer artificial intelligence ASX stock down 30% to buy on the dip in 2026
• 5 things to watch on the ASX 200 on Tuesday

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

When a dividend-paying business is trading too cheaply, it can result in a very pleasing dividend yield. That’s because the lower the price/earnings (P/E) ratio is, the higher the yield is from an ASX dividend stock.

The business Inghams Group Ltd (ASX: ING) is one of the largest poultry businesses in Australia. It has supply arrangements with major retail, wholesalers and quick service restaurant (QSR) customers. Inghams also produces turkey, stockfeed and value-enhanced poultry products for changing consumer preferences.

As the chart below shows, the Inghams share price has declined more than 30% from May 2025 following challenging operating conditions and lower-than-expected profitability.

Analysts expect the ASX dividend stock’s earnings and dividend to bounce back in the medium-term, which is why this could be a good time to consider the business.

Outlook for earnings and dividend rebound

The business is facing the prospect of reporting a difficult first half of FY26, but things could improve significantly after that.

The projection on CMC Markets suggests Inghams could generate earnings per share (EPS) of 19.7 cents in FY26 and it could pay an annual dividend per share of 13.5 cents. That payout would translate into a grossed-up dividend yield of 7.75%, including franking credits.

But, there could then be a significant improvement in FY27. The projections suggest a potential rise of EPS to 25.8 cents and the dividend payout could increase to 17.3 cents per share.

Therefore, the FY27 payout could translate into a grossed-up dividend yield of close to 10%, including franking credits. That’d be very appealing for dividend investors, if that happens.

What positives are there for the ASX dividend stock?

It was only weeks ago that the business gave an update at its annual general meeting (AGM) which was promising considering how cheaply the business is now trading.

The company is expecting to deliver underlying operating profit (EBITDA) of $80 million in the first half of FY26. For the full 2026 financial year, the company has guided between $215 million to $230 million of underlying operating profit.

Inghams says that earnings guidance is heavily weighted to the second half because of weak trading in the fourth quarter of FY25, with the timing of operational improvements and stabilisation of the inventory position after “corrective actions” in the first half of FY26.

The ASX dividend stock is seeing an “improved revenue outlook” thanks to core poultry volumes being slightly higher than FY25, though the net selling price (NSP) was slightly lower.

Inghams also noted that wholesale profit margins are expected to remain favourable.

While operating costs (excluding feed) are rising due to inflation and identified operational challenges, this has been materially offset by between $60 million to $80 million in annualised savings from labour, procurement and site operations initiatives. Feed costs are expected to continue to provide a modest benefit.

At the current Inghams share price, the ASX dividend stock is valued at under 10x FY27’s estimated earnings.

The post 1 ASX dividend stock down 36% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• Corporate Travel Management and Boss Energy shares dumped from ASX 200
• 5 things to watch on the ASX 200 on Monday

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.

Turning $100,000 into $1 million doesn’t happen overnight. It requires years, often decades, of owning businesses that can compound earnings at high rates while reinvesting intelligently.

That narrows the field dramatically.

For me, the most realistic path isn’t chasing speculative moonshots, but backing high-quality companies with long growth runways, strong competitive advantages, and management teams that consistently execute.

Here are two ASX stocks that I believe fit that description.

HUB24 Ltd (ASX: HUB)

HUB24 has quietly become one of the most powerful compounders on the ASX. Over the past 10 years, its shares have achieved an incredible average total return of 35.85% per year. That would have turned a $10,000 investment in 2015 into more than $200,000 today.

Although it is unlikely to achieve the same feat again through to 2035, I believe it can outperform the broader market.

HUB24 operates a leading wealth platform that sits between financial advisers and their clients’ investments. As more Australians seek professional advice, driven by ageing demographics, superannuation complexity, and intergenerational wealth transfer, the demand for high-quality platforms continues to grow.

What makes HUB24 particularly attractive is its operating leverage. As funds under administration rise, its revenue grows faster than costs, allowing margins to expand over time. That’s exactly the kind of business dynamic long-term investors should look for.

The company has also built a broader ecosystem through complementary technology businesses, deepening adviser relationships and increasing switching costs. Importantly, this growth hasn’t come at the expense of balance sheet strength or discipline.

HUB24 shares are not cheap, but they deserve their premium, in my opinion. If it continues to gain market share and scale efficiently, I think it has the potential to deliver the kind of long-term returns needed to turn a six-figure investment into something even more meaningful.

Pro Medicus Ltd (ASX: PME)

If HUB24 represents compounding through financial infrastructure, Pro Medicus represents compounding through technological superiority.

This ASX stock is a quick-growing provider of enterprise medical imaging software to hospitals and healthcare systems. Its Visage platform is known for speed, scalability, and efficiency, and once installed, it tends to become deeply embedded in hospital workflows.

That leads to exceptionally sticky customers, long-term contracts, and recurring revenue.

What stands out to me is Pro Medicus’ combination of very high margins, strong cash generation, and a long growth runway. Healthcare imaging volumes continue to rise, data sizes are exploding, and hospitals are under pressure to improve efficiency. These are all trends that play directly into Pro Medicus’ strengths.

Like HUB24, Pro Medicus is not a bargain stock. But valuation alone doesn’t create wealth; business quality does. I would rather own a high-quality ASX stock at a fair price than a poor-quality stock at a cheap price. Over time, companies that consistently grow earnings at high rates can justify premium valuations and still deliver outstanding shareholder returns. I expect this to be the case over the coming 10 years and beyond.

The post 2 stocks to help turn $100,000 into $1 million appeared first on The Motley Fool Australia.

More reading

• My top 5 ASX 200 shares I would buy with $10,000
• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• Why Brightstar, EVT, Monash IVF, and Pro Medicus shares are dropping today
• Here are the top 10 ASX 200 shares today
• Bell Potter names the best ASX 200 growth shares to buy in 2026

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Financial independence isn’t about chasing the highest dividend yields or finding the next hot stock.

For me, it is about building a portfolio that can reliably pay cash year after year, through good markets and bad, while still growing enough to protect against inflation.

If I were constructing an ASX dividend portfolio with financial independence as the end goal, I would focus on three core principles: reliability, diversification, and sustainability.

The aim wouldn’t be maximum income today, but dependable and growing income over many decades.

The foundation

Every dividend portfolio needs businesses that provide services people simply can’t do without. This is where regulated infrastructure and utilities shine.

I would start with APA Group (ASX: APA). As one of Australia’s largest energy infrastructure owners, it generates stable cash flows from long-term contracts linked to inflation. It may be boring, but it is precisely the kind of dependable income generator that suits a financial independence portfolio.

Transurban Group (ASX: TCL) is another ASX dividend share I would include. It owns critical transport assets with pricing power and decades-long concessions. Traffic volumes have been growing for years and look likely to continue this trend due to population growth and urbanisation.

Defensive income

I would also want exposure to ASX dividend shares that dabble in everyday essentials. After all, these businesses tend to hold up well even when economic conditions deteriorate.

Woolworths Group Ltd (ASX: WOW) fits that bill nicely. Supermarkets generate consistent cash flow, and Woolies has a long history of paying dividends. And while its dividend yield isn’t always the highest, the reliability of its earnings and payouts is what matters when building income you can depend on.

Telstra Group Ltd (ASX: TLS) would also earn a place in my portfolio. Australia’s largest telco benefits from recurring revenue, strong market share, and rising data demand. Another positive is that its dividend profile has improved significantly in recent years after it simplified its business and cut costs.

Diversification

Finally, I would add a diversified ASX ETF to smooth out risk and reduce reliance on individual stocks.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) would be my pick. It provides exposure to a broad basket of dividend-paying Australian shares, helping to spread risk while delivering attractive income.

Combined with the individual ASX dividend shares, I think this would help build a strong portfolio that could allow me achieve financial independence over the long term.

The post The ASX dividend portfolio I’d build for financial independence appeared first on The Motley Fool Australia.

More reading

• The three ETFs I’d buy to set up a starter portfolio
• My top 10 ASX stocks to buy for 2026
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy now
• 3 no-brainer ASX 200 shares to buy with $5,000

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a down year for many ASX energy shares in 2025. 

The S&P/ASX 200 Energy (ASX:XEJ) index fell approximately 4.3% this calendar year. 

For context, the S&P/ASX 200 Index (ASX: XJO) rose roughly 6.3% in the same period. 

However there were some winners amongst the large ASX energy shares. 

Here are three that rose above the rest in 2025. 

Paladin Energy Ltd (ASX: PDN)

Paladin Energy is a uranium production company that focuses on developing and operating uranium mines globally.

It has rocketed 135% higher since 52 week lows in April and now sits approximately 18% higher than the start of the year. 

Paladin’s revenue and share performance have been closely linked to higher global uranium prices, which are driven by strong demand for nuclear energy and tightening supply conditions.

The company’s flagship Langer Heinrich Mine in Namibia has increased production significantly, with quarterly reports showing large year-on-year gains.

Recent guidance from Macquarie suggests there is still upside for these ASX energy shares. 

In November, Macquarie placed a price target of $11.10 on Paladin Energy shares. 

This indicates a further upside of more than 18% from current levels. 

Whitehaven Coal Ltd (ASX: WHC)

Another ASX energy stock that outperformed the broader sector was Whitehaven Coal. 

The company is an Australia-based coal miner that exports high-quality thermal coal (primarily used to generate electricity) and metallurgical coal (primarily used for steel making) from Australia to Asia.

It has risen an impressive 24% this year and 79% since yearly lows in April. 

This rise has been driven by steady production and strong global coal prices. 

These ASX mining shares closed trading yesterday at $7.80. Based on recent price targets from brokers, it appears it is now trading close to fair value. 

Ampol Ltd (ASX: ALD)

Another ASX energy stock that has performed well this year is Ampol.

It is the largest, and only Australian-listed, petroleum refiner and distributor in the country, with around 2,000 branded Ampol service stations across all states and territories.

Its share price has risen approximately 11.8% this year. 

This has been driven by key acquisitions and the execution of bold strategic moves.

Analyst ratings from TradingView indicate there could be more upside. 

Based on an average rating from 10 analysts, TradingView has a one year price target of $35.02.

This indicates a 9.7% upside from yesterday’s closing price. 

The post The ASX energy shares that surged ahead of the rest this year appeared first on The Motley Fool Australia.

More reading

• Up 119% since April, 3 reasons to buy this newly-minted ASX 200 uranium share today
• These are the 10 most shorted ASX shares
• Guess which ASX 200 stock has the highest dividend yield?
• Better dividend stock in December: Woodside or Whitehaven?
• Here are the top 10 ASX 200 shares today

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.

Looking ahead in 2026, I think the best investment opportunities on the ASX could come from a mix of proven compounders, long-term growth stories, and businesses that have already shown they can execute through different market conditions.

Rather than chasing what’s hot, I would focus on ASX shares with large addressable markets, strong competitive advantages, and management teams that have a track record of delivering.

With that in mind, here are 10 ASX shares that I would buy in 2026:

Life360 Inc. (ASX: 360)

Life360 is building a global consumer platform around family safety and location sharing. With 91 million monthly active users and growing subscription penetration, it has a long runway for monetisation as it scales internationally.

CSL Ltd (ASX: CSL)

CSL remains one of Australia’s highest-quality global businesses. Despite recent share price weakness, its leadership in plasma therapies gives it exposure to powerful long-term healthcare demand. After a disappointing time in 2025, I think this biotech could rebound strongly in 2026.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a niche that is only becoming more important. Counter-drone technology is now a priority for defence and security agencies worldwide, and DroneShield is emerging as a key specialist provider. With defence budgets increasing materially, it looks well-placed to benefit.

Goodman Group (ASX: GMG)

Goodman offers a blend of stability and growth. Its global logistics and data centre assets sit at the heart of e-commerce, cloud computing, and artificial intelligence infrastructure. I think it represents one of the best buy and hold options on the Australian share market.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa has quietly become one of the ASX’s best retail growth stories. Its fast-fashion jewellery model continues to scale globally, supported by disciplined store rollouts and strong unit economics. It may have over 1,000 stores globally, but its expansion is far from over.

ResMed Inc. (ASX: RMD)

ResMed addresses a massive and underpenetrated market in sleep apnoea and respiratory care. With ongoing innovation in connected devices and software, it remains well positioned for long-term growth. Especially given the estimated 1 billion sufferers of sleep apnoea globally.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is transitioning from a development-stage biotech to a commercial radiopharmaceutical company. While this hasn’t been a smooth ride, its growing portfolio of imaging and therapeutic products gives it multiple shots at long-term value creation.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is a classic ASX share compounder. Its move to a software-as-a-service model has driven recurring revenue growth, high margins, and strong customer retention across government and enterprise clients. Management believes it can double in size every five years.

WiseTech Global Ltd (ASX: WTC)

WiseTech dominates global logistics software. Its CargoWise platform remains deeply embedded in customers’ operations, supporting a long growth runway as global trade digitises. Its shares were hammered in 2025, potentially setting the stage for a big rebound in 2026.

Xero Ltd (ASX: XRO)

Finally, Xero continues to build a powerful ecosystem for small businesses worldwide. With 4.6 million subscribers and expanding services beyond accounting, it still has significant scope to deepen relationships and lift lifetime value. Especially with a total addressable market estimated to be 100 million small to medium sized businesses.

The post 10 ASX shares I would buy in 2026 appeared first on The Motley Fool Australia.

More reading

• The Australian stocks I’d trust for the next 10 years
• 6 most traded ASX shares of 2025
• My blueprint for monthly income starting with $40,000
• In 2036, you will be glad you bought these ASX shares today
• 2 ASX shares to buy and hold for the next decade!

Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, Life360, Lovisa, ResMed, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, DroneShield, Goodman Group, Life360, Lovisa, ResMed, Technology One, Telix Pharmaceuticals, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended CSL, Goodman Group, Lovisa, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Online trading platform provider, Stake has revealed the top six most traded ASX shares by its retail clients in calendar year 2025.

All six are in the S&P/ASX 200 Index (ASX: XJO), with the No. 1 stock ascending into the benchmark index in September.

Let’s take a look.

Most traded ASX shares of the year

1. DroneShield Ltd (ASX: DRO)

ASX defence share Droneshield is benefitting from rising global defence spending amid ongoing geopolitical tensions.

The Droneshield share price is up 316% in the year-to-date (YTD).

According to Stake’s 2025 Retail Investor Report Card:

DroneShield spent 2025 swinging between euphoria and fear.

After rallying to fresh highs mid-year on the back of booming global demand for counter-drone technology, the stock unwound much of those gains as short interest climbed and investors questioned valuation froth.

Sentiment soured in November when CEO Oleg Vornik sold more than $49M of shares. In the same month, the company withdrew recent U.S. military deal announcements and its U.S. CEO Matt McCrann resigned.

DRO’s share price fell over 70% from its October high to December. 

2. PLS Group (ASX: PLS)

Formerly known as Pilbara Minerals, PLS Group is the market’s largest pure-play ASX lithium share.

PLS Group shares are up 89% YTD.

Stake analysts summed up PLS Group’s performance in 2025:

After spending much of the year battling the same headwinds facing the broader lithium sector, Pilbara Minerals closed 2025 on a bullish note.

Between June and December the stock price surged over 200% as lithium market sentiment improved and EV demand lifted.

Industry-wide production cuts also helped stabilise lithium prices by mid-2025, setting the stage for a rebound.

As of December, the PLS share price is up over 80% since the start of the year. It’s a welcome end to a tough stretch that began in late 2023.

3. Commonwealth Bank of Australia (ASX: CBA)

CBA remains the largest company on the ASX by market capitalisation despite a 12.7% fall in the second half of CY25.

The CBA share price is up 5% overall in the year to date.

The ASX bank stock hit an all-time high of $192 in late June before tumbling in the second half.

According to Stake’s 2025 Retail Investor Report Card:

Australia’s biggest bank ended the year flat, despite a June surge that pushed the stock more than 30% higher.

CBA stock stumbled in November after earnings results missed expectations, with the bank blaming growing competition, higher technology costs and lower interest rates on shrinking margins.

Despite challenges, CBA lifted its total paid dividend in 2025 to $4.85.

4. BHP Group (ASX: BHP)

The market’s largest ASX iron ore share hit a 52-week high of $46.03 per share this month.

BHP, which is also now the world’s largest copper producer, has seen its share price increase 12.8% YTD.

Stake analysts said:

BHP had a stop-start year as softer iron-ore and coal prices weighed on earnings, dragging underlying profit down 26% to June 2025.

The miner grabbed headlines with takeover talks involving mining company Anglo American before ultimately walking away, reassuring investors the company would stick to its organic growth strategy.

Strength in copper, a metal central to the global electrification push, along with bolstered iron ore prices, helped offset some of the weakness.

By year-end, BHP’s share price was recovering alongside improving commodity sentiment.

5. Fortescue Ltd (ASX: FMG)

The market’s second largest ASX mining share is up 17% in the YTD.

Stake analysts commented:

Fortescue moved in near lockstep with the iron-ore market in 2025, dipping early in the year before recovering on revived steel demand out of China.

Investors continued to grapple with the company’s transition away from its green-energy ambitions after a series of executive departures in late 2024.

Still, impressive earnings results and the prospect of another sizable dividend helped support the stock, and FMG finished the year in better shape than where it started.

In 2025, it paid an annual dividend of $1.10.

6. CSL Ltd (ASX: CSL)

CSL remains the largest ASX healthcare share by market cap despite a 39% plunge in CY25.

According to Stake’s report:

It was a bruising year for CSL shareholders.

Despite posting higher underlying profit, investors recoiled at plans to spin out its vaccine arm and cut more than 3,000 jobs globally.

Concerns over the restructuring weighed heavily on the stock, which slid more than 30% across the year.

CSL argued the overhaul would sharpen its focus on high-growth plasma therapies, but the market remained cautious.

Shares only faced further pressure after the firm downgraded FY26 revenue and profit guidance in late October.

The post 6 most traded ASX shares of 2025 appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares I would buy in 2026
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX mining shares with buy ratings for 2026
• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• The pros and cons of buying CBA shares in 2026

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