The National Australia Bank Ltd (ASX: NAB) share price return has been pleasing over the last year, rising by 11%. Add in dividends as well, that’s a solid return. It’ll be interesting to see how the ASX bank share performs in the coming year and beyond.

The ASX banking sector is a very competitive space because so many institutions are focused on protecting and increasing their market share. This can be a challenge for lenders wanting to maintain or increase the net interest margin (NIM).

The NIM tells investors about how much profit a bank is making on its lending, which includes the loan rate and the cost of funding those loans (including term deposits and savings accounts).

Expert views on the ASX bank share

The bank has a few different goals and broker UBS has provided some commentary on the business.

One goal is to grow its business bank, which is a key earnings generator for the bank. UBS noted that NAB delivered strong momentum over the past 12 months, growing at around 1.3x the overall loan system, gaining around 40 basis points (0.40%) of lending market share.

However, as competition intensifies, UBS believes management will need to focus on defending the bank’s NIM, which declined by around 5 basis points in FY25.

Another goal of NAB’s is to drive deposit growth. NAB lost around 10 basis points (0.10%) of market share in 2025, highlighting an area for improvement, especially considering the deposit impact on the NIM.

The third goal for NAB is strengthening its proprietary (own channel) home lending. In the second half of FY25, 41% of new home loans were originated through proprietary channels, below its peer average of 46%.

UBS suggested that proprietary lending could benefit significantly from AI, enabling bankers to deliver faster, more personalised service compared to broker channels.

Is the NAB share price a buy?

Broker UBS has a neutral rating on the NAB shares, with a price target of $42.50. That suggests the bank may not see any gains over the next 12 months.

UBS said that the ASX bank share is trading at 19x FY26’s estimated earnings, which is more expensive than it usually is.

The broker projects that it could generate $7.2 billion of net profit in the 2026 financial year and that the bank’s earnings could rise in FY27, FY28, FY29 and FY30. Therefore, the rest of the decade could be positive for the ASX bank share.

The post Is the NAB share price a buy today? appeared first on The Motley Fool Australia.

More reading

• 3 reasons some brokers think it’s time to sell CBA shares
• The perfect retirement stock with a 4.4% payout each month
• Which of the big 4 ASX 200 bank stocks paid the most passive income in 2025?
• Australian Bank Stocks: Which ones look like a buy (and which don’t)
• Buy, hold, sell: Light & Wonder, NAB, and Woodside shares

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.

When it comes to thematic investing, global instability and increased geopolitical uncertainty often push investors towards gold as a safe haven.

There are other options, such as investing in defence companies such as Austal Ltd (ASX: ASB), DroneShield Ltd (ASX: DRO), and Electro Optic Systems Ltd (ASX: EOS).

But if you’re looking for more diversification, there are some exchange-traded funds (ETFs) on offer which might be worth a look.

Global outlook

The first one we’ll look at is the Betashares Global Defence ETF (ASX: ARMR).

This fund aims to access leading global defence companies aligned with NATO allied countries.

The ARMR website goes on to say:

ARMR provides exposure to up to 60 leading companies which derive more than 50% of their revenues from the development and manufacturing of military and defence equipment, as well as defence technology, including Lockheed Martin, BAE Systems, General Dynamics and Palantir Technologies.

The website adds that global defence and security spending has “significantly increased” in recent times due to evolving geopolitical risks, and the spend is projected to continue for the foreseeable future.

ARMR has delivered an impressive 47.84% one-year return measured at the end of December, and 29.9% over five years.

Second cab off the rank is the Van Eck Global Defence ETF (ASX: DFND).

This ETF aims to give “exposure to the largest global companies involved in aerospace & defence, research and consulting, application software and electronic equipment & instruments, that are typically under-represented in benchmarks”.

The Van Eck website adds:

DFND is likely to be appropriate for a consumer who is seeking capital growth, is intending to use the product as a minor or satellite allocation within a portfolio, has an investment timeframe of at least 5 years, and has a very high risk/return profile.

DFND is up 85.5% from its lows over the past year and is changing hands for $44.85, with the fund valued at $305.3 million.

Another solid performer is the Global X Defence Tech ETF (ASX: DTEC), which “provides investors with access to companies at the forefront of defence innovation”.

The website goes on to say:

As global security concerns shift towards more technology-driven solutions, DTEC captures the sectors driving the future of defence. This includes AI, drones, and cybersecurity – all crucial components in today’s modern defence landscape.

DTEC is up 88.4% from its lows over the past year, with the fund valued at $128.5 million.

Then, finally, there is the Betashares Global Cybersecurity ETF (ASX: HACK), which, as the name suggests, aims to give exposure to the best cybersecurity companies globally.

As the Betashares website explains:

With cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. In one trade, get diversified, cost-effective exposure to global cybersecurity companies, a sector that is heavily under-represented on the ASX.

Hack hasn’t performed as well as the other defence ETFs and has been trending lower in recent months. That said, it’s still up 15.1% from its low point over the past 12 months and, over a three-year horizon, has returned 23.5% per annum.

The post Where to invest as global tensions rise? These ETFs might be worth a look appeared first on The Motley Fool Australia.

More reading

• Own MNRS or ARMR ETFs? Here’s why it’s a big day for you
• Where to invest $10,000 in ASX ETFs right now
• Own DTEC or SEMI ETFs? Here’s why it’s a big day for you
• 3 ASX ETFs that returned 32% to 64% in 2025
• Which ASX defence ETF performed best in 2025?

Motley Fool contributor Cameron England has positions in Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, DroneShield, Electro Optic Systems, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BAE Systems and Lockheed Martin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is in focus following the release of new guidance, with DAYBUE global net sales now projected to reach around US$700 million in 2028. The company highlighted that these royalties and milestone payments are currently Neuren’s only source of product revenue.

What did Neuren Pharmaceuticals report?

• DAYBUE global net sales projected to reach approximately US$700 million in 2028
• 2025 guidance for DAYBUE net sales remains at US$385–400 million
• Estimated Neuren royalties for 2025 are between A$63 million and A$66 million
• Exclusive worldwide licence granted to Acadia Pharmaceuticals for DAYBUE commercialisation
• International expansion anticipated, pending European approval (decision expected Q1 2026)

What else do investors need to know?

Neuren receives all its current product revenue from Acadia’s DAYBUE, with royalties and milestone payments tied directly to DAYBUE’s net sales. Acadia’s projections assume continued growth, including a rollout of DAYBUE STIX (approved in December 2025) and expansion into new markets if regulatory approvals are secured.

The latest forecast reflects stronger anticipated patient uptake and benefits from expanded US customer-facing teams. Investors should note that further guidance, including 2026 DAYBUE sales, is expected after Acadia’s Q4 results release in February.

What did Neuren Pharmaceuticals management say?

 Chief Financial Officer Ms Lauren Frazer said:

As noted above, royalties and milestone payments from ACAD are currently NEU’s sole source of product revenue. Those royalties and milestone payments are directly linked to the DAYBUE net sales achieved by ACAD. Given ACAD’s disclosed projection of DAYBUE net sales in 2028 reflects significant growth from its published guidance for net sales in 2025, NEU considers that the Information would have a material impact on NEU’s future revenue.

What’s next for Neuren Pharmaceuticals?

Neuren will continue to track DAYBUE’s performance and expects further clarity on European market entry in Q1 2026. The company remains focused on supporting Acadia’s international expansion plans and will provide updates as new sales projections or milestone triggers unfold.

Investors may want to keep an eye on regulatory milestones and subsequent guidance, as these could materially impact Neuren’s future royalty streams and the Neuren Pharmaceuticals share price.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, Neuren Pharmaceuticals shares have risen 48%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period. 

View Original Announcement

The post Neuren Pharmaceuticals revises DAYBUE revenue projections to reach US$700 million in 2028 appeared first on The Motley Fool Australia.

More reading

• This ASX stock just hit an all-time high. Is there more upside ahead?
• The best and worst ASX sectors of the past 12 months
• 5 things to watch on the ASX 200 on Monday
• ASX 200 materials sector outperforms as mining shares continue their ascent
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There’s no shortage of heavyweights among ASX healthcare shares. Few debates are as enduring as CSL Ltd (ASX: CSL) versus Sonic Healthcare Ltd (ASX: SHL).

Both businesses are global operators, both are high quality, and both have recently tested investor patience.

The question is which ASX healthcare share offers the better opportunity from here.

CSL: The global powerhouse with something to prove

CSL remains the crown jewel of the ASX healthcare sector. Its plasma therapies, vaccines, and biologics underpin a global business with deep competitive moats and scale few rivals can match.

Long term, the structural drivers are firmly in its favour: ageing populations, rising demand for specialty treatments, and an unmatched plasma collection network.

However, the past couple of years have been bumpy. Margin pressure, higher costs, and operational complexity have weighed on earnings momentum, while investors have questioned whether the largest ASX healthcare share’s valuation is still justified. The share price pullback reflects those concerns.

That said, CSL’s strength lies in its ability to invest through the cycle. Balance sheet capacity, heavy R&D spending, and a long history of successful execution suggest earnings growth should re-accelerate over time. For patient investors, periods of uncertainty have historically proven to be attractive entry points.

At the time of writing, the ASX healthcare share is trading for $175.53 apiece. The company’s shares have been hovering near a 52-week low for a while now, having fallen more than 30% over the past six months.

Many analysts believe the drop marks a rare long-term buying opportunity. CSL is widely rated a buy or strong buy, with an average 12-month price target of $232, implying potential upside of around 32%.

Sonic Healthcare: Steady operator, less drama

The $11 billion ASX healthcare share offers a very different investment profile. Sonic’s pathology and diagnostic imaging businesses generate recurring revenue across Australia, Europe, and North America. Demand is defensive by nature and largely independent of economic cycles.

Post-pandemic, Sonic Healthcare has faced falling COVID-related testing volumes and margin pressure, which has dragged on earnings and the share price. Unlike CSL, there is no blockbuster innovation angle. Growth is incremental, driven by population growth, ageing demographics, and bolt-on acquisitions.

The appeal lies in valuation and stability. Sonic typically trades at lower multiples than CSL, carries a solid balance sheet, and offers more predictable cash flows. It may lack excitement, but it rarely delivers nasty surprises.

Bell Potter has initiated coverage with a buy rating and a $33.30 price target. With the shares trading at $23.25 at the time of writing, this suggests a potential 31% upside over the next 12 months.

Bell Potter’s outlook is more optimistic than the broader market, where the average 12-month price target is $26.73, implying 18% upside. When combined with a forecast dividend yield of 5.2%, total returns in 2026 could exceed 20%.

Foolish Takeaway

For long-term growth-focused investors, CSL still looks like the higher-quality asset. Its global reach, innovation pipeline, and industry leadership give it the potential to deliver superior returns over a decade, albeit with more volatility along the way.

For income and risk-aware investors, Sonic Healthcare may be the more comfortable holding. The earnings of this ASX healthcare share are steadier, its valuation more restrained, and its business model easier to forecast.

The post Is CSL or Sonic Healthcare the smarter ASX healthcare share buy? appeared first on The Motley Fool Australia.

More reading

• 1 ASX dividend stock down 36% I’d buy right now
• 2 ASX 200 shares to buy and hold for 10 years
• No savings at 50? Here’s how I’d use Warren Buffett’s playbook to build wealth and retire comfortably
• A once-in-a-decade opportunity to buy CSL shares?
• How I’d go about finding undervalued ASX shares to buy and hold forever 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 positions in and has recommended CSL. The Motley Fool Australia has recommended CSL and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After finishing 2025 on a relatively calm note, uranium is beginning to attract renewed attention in early 2026.

While the move has been gradual rather than explosive, uranium prices have been trending higher over the past month. The spot price has climbed back above US$82 per pound, marking roughly an 8% rise since mid-December.

Demand is quietly strengthening

The biggest driver behind uranium’s recent lift is improving demand visibility across global nuclear markets.

Nuclear power is regaining its status as a reliable baseload energy source. Governments are extending the lives of existing reactors, approving new builds, and backing nuclear as a low-carbon solution alongside renewables.

The US is seeing particularly strong activity. Utilities are actively securing long-term uranium supply as domestic production struggles to keep up with reactor demand. At the same time, restrictions on Russian nuclear fuel imports are forcing Western utilities to source supply elsewhere, tightening the global market.

Another emerging tailwind is electricity demand from data centres and AI infrastructure. Nuclear power is increasingly viewed as one of the few scalable energy sources capable of delivering reliable, emissions-free power at scale.

Some analysts now believe uranium prices could test US$90 to US$100 per pound during 2026 if utility contracting accelerates.

ASX uranium stocks back in focus

On the ASX, uranium miners are beginning to reflect this improving outlook.

Paladin Energy Ltd (ASX: PDN) has been back in favour in early January, with investors responding to stronger uranium prices and improving confidence around nuclear expansion in key markets. Currently up more than 15% so far in 2026, Paladin is well-positioned to benefit if uranium prices continue to rise.

Meanwhile, Deep Yellow Ltd (ASX: DYL) continues to progress its long-term growth strategy. The company’s focus on advancing its Namibian uranium projects and strengthening its production pipeline positions it well for a higher price environment. That progress has been reflected in the share price, which is up almost 17% so far in 2026.

Will uranium keep rising?

Uranium is a small and specialised market, so prices can move quickly in both directions. Spot prices remain below some long-term contract levels, and further gains will depend on steady buying from nuclear power companies rather than short-term trading.

Even so, the outlook looks positive. New supply is limited, global trade is being reshaped by geopolitics, and nuclear power is firmly back in favour as a reliable energy source.

The past month may be an early sign of a new uranium cycle, though it is still early.

The post Why uranium is gaining momentum as 2026 gets underway appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Buy, hold, sell: Catalyst Metals, NRW, and Paladin Energy shares
• Bell Potter names the best ASX uranium stocks to buy now
• Deep Yellow welcomes new CEO as part of ongoing uranium growth strategy
• These 3 ASX 200 shares led their sectors last year. Are they still good buys?

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.

The meteoric rise of 4DMedical Ltd (ASX: 4DX) has grabbed the attention of ASX investors this year. On Friday, the stock closed up 12.14% at $5.08, marking not only a strong weekly finish but also a fresh all-time high for the respiratory imaging specialist.

Over the past 12 months, 4DX shares have surged an astonishing 815%, putting it among the best-performing stocks on the ASX.

So, what’s driving this extraordinary rally, and can the momentum continue?

Let’s take a closer look.

What does 4DMedical do?

4DMedical is a healthcare technology company focused on advanced respiratory imaging.

Its flagship product, CT:VQ, uses software to convert standard CT scans into detailed functional lung images. This allows clinicians to assess lung ventilation and blood flow without radioactive tracers, offering a faster and less invasive alternative to traditional nuclear medicine scans.

The technology is designed to help diagnose and monitor conditions such as pulmonary embolism, chronic obstructive pulmonary disease, and other respiratory illnesses.

US adoption gathering pace

One of the biggest catalysts for the share price this year has been accelerating adoption in the United States.

Earlier this month, 4DMedical announced that UC San Diego Health had begun clinical adoption of CT:VQ. This followed earlier uptake by major institutions, including Stanford University, the Cleveland Clinic, and the University of Miami.

These high-profile academic centres are seen as important reference sites. Their adoption helps validate the technology and supports broader rollout across hospital networks.

The company has structured its early deployments under launch agreements, with a pathway toward full commercial contracts over time.

$150 million placement strengthens balance sheet

Adding further momentum, 4DMedical recently completed a $150 million institutional placement.

The capital raise strengthens the balance sheet and provides funding to accelerate US commercialisation, expand sales capability, and support ongoing product development.

While the placement results in dilution for existing shareholders, the market response suggests investors view the funding as an important step to support long-term growth.

What are the risks?

Despite the strong share price performance, the risks remain.

4DMedical is still in the early stages of commercialisation and is not yet profitable. So, execution will be critical, particularly in converting pilot and launch sites into recurring revenue contracts.

The valuation has also risen sharply to around $2.7 billion, meaning expectations are now very high.

Foolish Takeaway

4DMedical’s rise has been nothing short of remarkable.

With FDA clearance, growing US adoption, and a well-funded expansion plan, the company has strong momentum behind it.

However, after an 800% rally in just 12 months, investors should expect volatility and keep a close eye on execution as the next phase of growth unfolds.

The post Up more than 800% in a year. Why this ASX medical tech stock just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Amaero, Clarity Pharmaceuticals, and Treasury Wine shares are falling today
• Up 700% in 12 months! Why this ASX tech stock just raised $150m
• Why are 4DMedical shares in a trading halt today?
• Why 4DMedical, DroneShield, Super Retail, and Tamboran shares are falling today
• These three biotechs show how the sector can produce huge outsized gains, but are they still good value?

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.

If I were looking to make some additions to my investment portfolio this week, I would seriously consider the five ASX 200 shares in this article.

Not only could they be good value at current prices, but I think they have the potential to outperform the benchmark this year.

Hub24 Ltd (ASX: HUB)

Hub24 is one of my preferred ways to gain exposure to Australia’s wealth management industry.

The long-term shift toward platform-based investing continues to work in its favour, particularly as advisers move toward more transparent, client-focused solutions. Hub24 benefits from strong operating leverage as funds under administration grow, which means earnings can scale faster than costs over time.

While its shares are not cheap on traditional metrics, I think that reflects the quality of the business, its consistent execution, and long-term earnings growth potential. For investors looking for a long-term compounder, Hub24 could be one of the standouts on the ASX.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare has gone through a major transformation, and I think that is still underappreciated by the market.

The merger with Chemist Warehouse has created a vertically integrated healthcare group with scale across wholesale distribution, franchising, and retail. The combined business now supports hundreds of pharmacies under brands such as Chemist Warehouse, Amcal, and Discount Drug Stores, while also supplying thousands of pharmacies across Australia.

As integration benefits emerge and scale advantages are realised, I see scope for earnings to grow robustly over time.

James Hardie Industries plc (ASX: JHX)

This ASX 200 share is a high-quality building materials business with global exposure.

Its fibre cement products have strong brand recognition and are increasingly specified in residential construction, particularly in the United States. While housing cycles can be volatile, I think James Hardie’s market position and product innovation give it an edge over the long term.

Short-term earnings can move around with construction activity, but I am comfortable looking through that. Over a full cycle, I believe James Hardie has the potential to deliver solid earnings growth and strong returns on capital.

Qantas Airways Ltd (ASX: QAN)

Qantas has emerged from a challenging period as a more focused and financially disciplined business.

Capacity constraints across the aviation industry, combined with strong travel demand, have supported profitability. At the same time, management has been working to simplify the business, improve reliability, and strengthen the balance sheet.

Airlines are never risk-free investments, just ask Warren Buffett, but Qantas has a dominant position in the Australian market and valuable loyalty and international assets. If execution continues, I think this ASX 200 share can deliver attractive returns through the cycle.

Megaport Ltd (ASX: MP1)

Megaport is not a household name, but it plays an important role in global digital infrastructure.

The ASX 200 share provides on-demand connectivity between data centres, cloud providers, and enterprise networks. As cloud architectures become more complex and data-intensive workloads grow, that flexibility becomes increasingly valuable.

Megaport has also expanded beyond pure connectivity into adjacent infrastructure services with the acquisition of Latitude, which deepens customer relationships and increases the relevance of its platform. After a reset in expectations and a share price pullback, I think it offers an appealing risk-reward balance for patient investors.

Foolish takeaway

None of these shares are guaranteed winners, and each comes with its own risks.

But what they share is a clear business model, long-term demand drivers, and management teams that have demonstrated an ability to navigate change. For investors willing to take a medium to long-term view, I believe these five ASX 200 shares offer a solid mix of growth, quality, and resilience.

The post 5 ASX 200 shares I think could beat the market in 2026 appeared first on The Motley Fool Australia.

More reading

• ASX income stocks: A once-in-a-decade chance to get rich
• No savings at 50? Here’s how I’d use Warren Buffett’s playbook to build wealth and retire comfortably
• 2 ASX shares highly recommended to buy: Experts
• $10,000 invested in Qantas shares two years ago is now worth…
• James Hardie shares lift off on $25 million cost saving initiatives

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 and Megaport. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $2,500 to invest today and my goal was income, I would be looking for businesses with reliable cash flows, sustainable dividends, and long-term relevance. I would not be trying to chase the highest yield available. 

Instead, I would focus on quality income that I can reasonably expect to grow over time.

With that said, here are two ASX income stocks I would buy with that $2,500 in January.

Transurban Group (ASX: TCL)

Transurban is one of the most dependable income stocks on the ASX in my view.

The company owns and operates toll roads across Australia and North America, giving it access to long-life infrastructure assets with inflation-linked revenue. Traffic volumes tend to grow over time as cities expand, while tolls are typically indexed to inflation or set increases.

That combination supports highly predictable cash flows, which is exactly what income investors want.

For FY26, Transurban intends to increase its distribution to 69 cents per share, up from 65 cents in FY25. At current prices, that represents a dividend yield of around 5%.

Importantly, this income is backed by assets that remain essential regardless of economic conditions. People may cut discretionary spending, but they still need to commute, move goods, and travel through major cities.

If I were allocating $2,500, Transurban would likely take the largest share of that investment.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX income stock that continues to appeal to defensive investors.

The company benefits from its dominant position in Australia’s telecommunications market, with mobile and broadband services that households and businesses rely on every day. That recurring demand underpins steady earnings and a relatively resilient dividend profile.

According to CommSec, the consensus estimate is a fully franked 20 cents per share dividend in FY26. This means that Telstra currently offers an estimated forward dividend yield of around 4.15%, which is attractive when combined with its defensive characteristics. While Telstra is not a high-growth business, it does not need to be for income-focused investors.

What I like most is that Telstra’s earnings are less sensitive to economic cycles than many other ASX companies. That makes it a useful stabiliser in an income portfolio.

For someone investing $2,500, Telstra provides diversification away from infrastructure while still maintaining a focus on dependable income.

Foolish takeaway

With a relatively modest amount like $2,500, I think it makes sense to prioritise quality and reliability over chasing yield.

Transurban and Telstra offer exposure to two essential parts of the economy, transport and communications, while providing income that investors can reasonably expect to persist over the long term.

They would not make anyone rich overnight, but for building a steady income stream, I think they are two sensible places to start.

The post 2 ASX income stocks I would buy with $2,500 in January appeared first on The Motley Fool Australia.

More reading

• My simple 5-share ASX retirement portfolio
• How to turn ASX dividends into long-term wealth
• Here’s my top ASX dividend stock for 2026
• DIY investors: How to build a stable income portfolio starting with $50,000
• Why Telstra and these ASX dividend shares could be top buys

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

There are not many S&P/ASX 200 Index (ASX: XJO) shares that have performed worse over the last two years than one of the largest ASX energy shares. The Woodside Energy Group Ltd (ASX: WDS) share price has declined by around 35%. It has dropped around 12% since 12 November, as the below chart shows.

It’s normal for there to be volatility on the share market and it’s particularly normal for energy shares to experience ups and downs. Energy prices are always on the move and this can sometimes lead to big swings of share prices.

Production costs don’t typically change much month to month, so energy price shifts can dramatically change profitability. Any extra revenue for the same volume of production can largely add to net profit, while a reduction of revenue dollars will mostly flow onto the net profit line too.

Let’s look at expert views on energy prices before looking at the appeal of the Woodside share price.

2026 surplus

In a note last week, broker UBS cut its 2026 oil price forecast by US$2 per barrel to US$62 per barrel, driven by a larger oil surplus that’s now up to 1.9 million barrels per day for this year, in line with 2025.

However, UBS expects the surplus to narrow over the course of the year, leading to its oil forecast of US$60 per barrel in the first quarter of 2026, rising to US$64 per barrel in the fourth quarter of 2026.

The broker noted that geopolitical risks persist and potential supply disruptions in Russia, Venezuela and Iran could keep volatility elevated.

A decline of 0.5 million barrels per day in supply may support the oil price in the mid-to-high US$60s per barrel, according to UBS.

UBS then commented:

We see some risk of oil demand being underestimated noting that the IEA has been lifting estimates of ‘missing barrels’ & oil on water, with tracking challenged by evolving logistics for sanctioned producers. However we see upside risk as likely capped due to OPEC+ retaining spare capacity of 4.1mb/d (ex-Iran/Venezuela).

We expect OPEC+ policy to be a less important driver for 2026 (vs 2025) as much of the voluntary cuts have already been unwound. Our base case assumes OPEC+ unwinds the remainder of the 1.65Mb/d voluntary cuts from Apr-Dec26.

Is the Woodside share price attractive?

UBS is expecting Woodside’s quarterly production performance for the three months to December 2025 to show production was in line with expectations.

The broker noted the earlier-than-expected arrival of the floating production unit on site in WA introduces the potential for Scarborough gas to flow earlier than the current estimate of the fourth quarter of 2026, which could mean production is a bit stronger than expected.

UBS says that it’s neutral on the Woodside share price, with a price target of $23.50. That implies little movement over the next 12 months.

The broker projects Woodside generated $1.082 of earnings per share (EPS) in 2025. It reduced its projection for 2026 EPS by 12% to 57.7 cents and reduced the 2027 EPS projection by 3% to 95.4 cents.

The post Is the Woodside share price an opportunity too good to pass up? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today
• 5 things to watch on the ASX 200 on Friday
• After 5 days of straight gains, is oil setting up for its next move?
• Woodside shares lift today. Is the worst behind this ASX energy giant?

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.

As we move into 2026, some high-quality ASX companies are trading well below their previous highs. In some cases, short-term concerns have pushed share prices lower, even though the underlying businesses continue to perform well.

For investors looking for value, several well-established companies now appear mispriced by the market.

Here are 3 ASX shares that stand out as undervalued as January draws to a close.

Wisetech Global Ltd (ASX: WTC)

Wisetech is a global leader in logistics software, used by freight forwarders and supply chain operators worldwide. Its platform is deeply embedded in customer operations, creating sticky, recurring revenue.

Despite that strong position, the share price has fallen sharply. Wisetech shares are trading around $67, well down from their 2025 highs.

Several brokers believe the market has become too pessimistic. Consensus price targets sit well above current levels, with some estimates around $100 to $110, pointing to meaningful upside if growth expectations stabilise.

The recent sell-off was driven by softer near-term guidance and investor concerns around governance. However, the long-term outlook has not changed. Global trade volumes continue to grow over time, and logistics software remains essential.

If earnings momentum improves, Wisetech shares could recover strongly from current levels.

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides medical imaging and radiology software to hospitals and imaging groups across the US, Europe, and Australia.

The company has delivered strong long-term growth, but the share price has since pulled back. Shares are trading around $203, below broker expectations.

Broker sentiment remains positive. Average price targets are above $320, reflecting confidence in ongoing contract wins, high margins, and recurring revenue.

While the valuation still looks expensive, many analysts are willing to pay a premium for quality. Pro Medicus operates in a niche market with high barriers to entry and growing demand for digital healthcare solutions.

This recent weakness may offer a rare chance to buy a top-tier healthcare technology business at a heavily discounted price.

CAR Group Ltd (ASX: CAR)

CAR Group owns online automotive marketplaces such as carsales, with operations across Australia and several international markets.

The share price has lagged as investors worry about slowing car sales and softer economic conditions. Even so, the business continues to generate strong cash flow and holds leading market positions.

Brokers remain broadly supportive. The average 12-month price target sits around $40 to $42, around 30% to 35% above current levels.

Analysts continue to point to CAR’s pricing power, high margins, and global expansion strategy as key strengths. Its leading market share allows it to raise prices over time without losing customers, which helps support earnings even in softer conditions.

CAR also offers a mix of growth and resilience, which can be attractive for investors during uncertain market periods.

Foolish takeaway

All 3 of these ASX shares have strong underlying businesses, but their share prices have been weighed down by short-term concerns.

Periods like this can create opportunities for investors willing to look beyond near-term market moves.

For investors building positions in January, these stocks look well worth watching as markets reset for 2026.

The post The 3 best undervalued ASX shares I’d pick up in January appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• No savings at 50? Here’s how I’d use Warren Buffett’s playbook to build wealth and retire comfortably
• Why a smaller dividend yield can lead to more passive income
• 2 beaten-down ASX shares to consider before they recover
• How I’d go about finding undervalued ASX shares to buy and hold forever in 2026

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