• Here are the top 10 ASX 200 shares today

    A man cheers after winning computer game, while woman sitting next to him looks upset.

    It was a disappointing hump day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares today. After starting out strong this morning, the latest inflation numbers put a dampener on investors’ mood and pushed the market lower all afternoon.

    By the time trading wrapped up this Wednesday, the ASX 200 had drifted down 0.086%, leaving the index at 8,933.9 points.

    This disappointing mid-week session for the Australian stock market comes after a mixed morning over on Wall Street.

    The Dow Jones Industrial Average Index (DJX: .DJI) had a rough one, dropping 0.83%.

    However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) went the other way, managing to bank a 0.91% gain.

    But let’s return to the local markets now, and check out how today’s market machinations percolated into the various ASX sectors.

    Winners and losers

    There were only a few sectors that managed to escape the market’s malaise this afternoon. But more on those momentarily.

    First up, it was once again tech stocks that led the charge off the proverbial cliff. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was punished this session, cratering by 2.79%.

    Healthcare shares had a rather unhealthy session too, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) tanking 1.4%.

    Consumer discretionary stocks weren’t in vogue either. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) took a 1.26% tumble.

    We could say the same for communications shares, as you can see from the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 1.06% dive.

    Consumer staples stocks were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) took a 0.94% hit today.

    Real estate investment trusts (REITs) also weren’t spared, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) dipping 0.88%.

    Financial shares fared a little better. The S&P/ASX 200 Financials Index (ASX: XFJ) still wilted by 0.33% though.

    Industrial stocks performed similarly, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.26% slide.

    Our last losers were utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) slipped 0.2% lower by the closing bell.

    Let’s turn to the winners now. Energy stocks led the charge higher, with the S&P/ASX 200 Energy Index (ASX: XEJ) soaring 2.33% higher.

    Gold shares continued to delight. The All Ordinaries Gold Index (ASX: XGD) surged up 2.24% this Wednesday.

    Finally, broader mining stocks didn’t miss out either, evidenced by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 1.35% lift.

    Top 10 ASX 200 shares countdown

    Leading today’s winners was uranium stock Deep Yellow Ltd (ASX: DYL). Deep Yellow shares rocketed 10.68% higher this hump day to close at $2.59 each.

    This sizeable jump came despite there being no news or announcements from Deep Yellow.

    Here’s how the other winners from today’s trading tied up at the dock:

    ASX-listed company Share price Price change
    Deep Yellow Ltd (ASX: DYL) $2.59 10.68%
    Boss Energy Ltd (ASX: BOE) $1.98 10.00%
    Paladin Energy Ltd (ASX: PDN) $13.94 5.37%
    Capstone Copper Corp (ASX: CSC) $16.78 4.42%
    Evolution Mining Ltd (ASX: EVN) $15.35 4.00%
    DigiCo Infrastructure REIT (ASX: DGT) $2.71 3.83%
    Data#3 Ltd (ASX: DTL) $9.91 3.66%
    West African Resources Ltd (ASX: WAF) $3.84 3.50%
    Northern Star Resources Ltd (ASX: NST) $28.60 3.25%
    Santos Ltd (ASX: STO) $6.82 3.02%

    Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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

    Before you buy Deep Yellow 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 Deep Yellow 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 1 Jan 2026

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    Motley Fool contributor Sebastian Bowen 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.

  • Broker says these ASX defence stocks are investment weapons

    Soldier in military uniform using laptop for drone controlling.

    If you are looking for exposure to the booming defence sector for your portfolio, then the ASX stocks in this article could be worth considering.

    That’s because analysts at Bell Potter think they are investment weapons with very bright futures. Here’s what the broker is recommending:

    Electro Optic Systems Holdings Ltd (ASX: EOS)

    The first ASX defence stock that Bell Potter is bullish on is defence and space company EOS.

    Following the release of a stronger than expected fourth quarter update, the broker has retained its buy rating and $12.00 price target on the ASX defence stock.

    As a market leader in C-UAS solutions, Bell Potter believes the company is well-placed to be a big winner from increased spending on these technologies. It explains:

    We retain our Buy rating and raise our TP to $12.00. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards. At 44x CY26e EV / EBITDA, EOS trades at a 26% discount to the Global drone peer group mean.

    Elsight Ltd (ASX: ELS)

    Bell Potter is also feeling very positive about Elsight, which is a supplier of communication modules to drone original equipment manufacturers (OEMs).

    In response to its quarterly update, the broker has retained its buy rating on the ASX defence stock with an improved price target of $5.50.

    It believes that Elsight has developed a market leading product and is well-positioned to benefit from growth in the unmanned systems industry. It said:

    We retain our Buy rating. We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

    We believe ELS shares offer relative value at 37x CY26e EV/EBITDA given its recurring revenue, capital-light business model, relative valuation vs. other drone exposed stocks (42% discount to mean of global peers) and long runway of growth. We believe ELS can close this valuation gap via a broadening in its customer base (an estimated >80% of revenue generated from one customer in CY25e). We view ELS as a prime candidate for an OEM looking to vertically integrate.

    The post Broker says these ASX defence stocks are investment weapons appeared first on The Motley Fool Australia.

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

    Before you buy Elsight 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 Elsight 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 1 Jan 2026

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    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 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.

  • 5 ASX ETFs to buy for passive income

    Man holding Australian dollar notes, symbolising dividends.

    These days, building a passive income stream does not have to mean picking individual dividend ASX shares.

    ASX exchange trade funds (ETFs) make it possible to access diversified income streams in a simple, low-maintenance way. By combining different income styles, investors can spread risk while still targeting regular payouts over time.

    Here are five ASX ETFs that could be worth considering for passive income investors.

    Vanguard Australian Shares Index ETF (ASX: VAS)

    The first ETF to consider is the Vanguard Australian Shares Index ETF. While it is not designed specifically for income, this ASX ETF provides exposure to the broad Australian share market, which has historically been one of the more generous dividend markets globally. Banks, miners, and industrials all contribute to a steady stream of distributions, often with franking credits attached.

    Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

    Another ASX ETF to look at is the Betashares S&P Australian Shares High Yield ETF. It focuses on higher-yielding Australian shares, using a rules-based approach to tilt the portfolio toward companies paying above-average dividends. It offers a more income-focused alternative to broad market ETFs. It was recently recommended by analysts at Betashares.

    Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

    A different style of passive income comes from the Betashares S&P 500 Yield Maximiser Complex ETF. Rather than relying purely on dividends, this clever fund uses an options-based strategy over the S&P 500 to generate income. This can result in higher cash distributions than you would expect, but it also means capital growth may be more limited compared to traditional equity ETFs.

    Betashares Global Royalties ETF (ASX: ROYL)

    The Betashares Global Royalties ETF offers an unconventional source of passive income. The ASX ETF invests in global stocks that earn royalties from assets such as music, energy infrastructure, and intellectual property. These revenue streams are often contract-based and less sensitive to economic cycles. For income investors, the Betashares Global Royalties ETF can provide diversification away from traditional dividend sectors like banks and resources. It was also recently recommended by analysts at Betashares.

    Vanguard Australian Shares High Yield ETF (ASX: VHY)

    A final ASX ETF to consider is the popular Vanguard Australian Shares High Yield ETF. It concentrates on Australian shares with higher forecast dividend yields, offering an income-focused alternative to the Vanguard Australian Shares Index ETF. But it does this with diversification in mind, limiting how much is invested in individual shares and sectors.

    The post 5 ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Betashares S&P Australian Shares High Yield Etf right now?

    Before you buy Betashares S&P Australian Shares High Yield Etf 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 Betashares S&P Australian Shares High Yield Etf 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 1 Jan 2026

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. 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.

  • Does an 8.5% yield make WAM Capital shares a slam-dunk buy?

    A dad holds his son up high so he can shoot the basketball into the ring.

    I think most ASX dividend investors would agree that seeing a popular ASX income share trading with a dividend yield of 8.5% is well worth a second look. That’s exactly what’s on display with WAM Capital Ltd (ASX: WAM) shares right now.

    Yep, WAM Capital shares are currently trading at a price of $1.82. At this price, this dividend share and listed investment company (LIC) is indeed trading with a trailing dividend yield of 8.49% at the time of writing.

    That’s more than double what you could expect from a term deposit or savings account right now. And well north of what most popular ASX dividend shares are paying investors at the moment.

    So does this make WAM Capital shares a slam-dunk buy for income?

    As with any investment offering such an outsized yield, it’s worth digging a little deeper to determine whether this is a compelling cash flow opportunity or a dreaded dividend trap.

    Is the 8.5% yield on WAM Capital shares too good to be true?

    Well, WAM Capital shares’ 8.5% yield is indeed legitimate. The company paid out two dividends over 2025. The interim dividend that was doled out in April, as well as October’s final dividend, were both worth 7.75 cents per share. That annual total of 15.5 cents per share gets us to that 8.49% yield at the current $1.82 WAM Capital share price. In an added bonus for investors, those payments also came with some franking credits attached. Both payments were partially franked at 60%.

    However, as any good dividend investor knows, dividend yields represent the past, not the future. For WAM to truly be a slam-dunk buy for income, investors would need to have a high degree of confidence that this LIC is able to continue to fund annual dividend payments of at least 15.5 cents per share for the foreseeable future. And that’s where some red flags start to pop up.

    Each month, WAM Capital tells investors how much cash it has in its ‘profit reserve’, which funds its dividends. This profit reserve is filled by both the underlying dividends that WAM Capital receives from its portfolio, as well as the proceeds of stock sales.

    As of 31 December, this profit reserve stood at 21.1 cents per share. That means that WAM Capital only has enough cash to cover its payouts for about 18 months. As such, future dividends are highly dependent on this company’s ability to continue to pick the right stocks.

    Risk and reward

    Now, it could get lucky. But there’s also not much of a cushion for mistakes or misfortune. And unfortunately, WAM Capital’s recent share price track record is not fantastic. If you had bought shares of this company five years ago today, you would have lost 18.5% of your capital investment. Over that same period, the S&P/ASX 200 Index (ASX: XJO) is up a healthy 35% or so.

    The market doesn’t let high-quality dividend payers sit with an 8.5% dividend yield for long. As such, the market consensus is that WAM Capital’s dividend is highly likely to be unsustainable and that this stock is a high-risk investment. Now, things could work out well for WAM Capital shares. But they might also continue to go pear-shaped. And based on this company’s recent performance, it’s not a bet I’d be willing to take.

    The post Does an 8.5% yield make WAM Capital shares a slam-dunk buy? appeared first on The Motley Fool Australia.

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

    Before you buy WAM Capital 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 WAM Capital 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 1 Jan 2026

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    Motley Fool contributor Sebastian Bowen 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 ASX defence stock is down 10% in a week. Is the next leg higher already lining up?

    defence personnel operating and discussing defence technology

    Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) have pulled back over the past week, sliding almost 10% to around $9.69 at the time of writing.

    That dip comes after an extraordinary run. EOS shares are still up more than 700% over the past year, making it one of the ASX’s standout performers.

    After a move like that, some profit-taking from short-term traders was inevitable.

    What matters the most is that nothing has changed inside the business.

    Let’s take a closer look.

    A contract book that keeps growing

    This week’s pullback followed EOS’ latest quarterly update, which met expectations but did not deliver a fresh surprise.

    However, the numbers themselves still point in the right direction.

    The standout figure remains EOS’ contract backlog, which climbed to around $459 million at the end of December. That marks a sharp increase over the past year and provides clear revenue visibility into 2026 and beyond.

    During the quarter, EOS continued delivering remote weapon systems across multiple regions, including Australia, Europe, North America, and the Middle East. Manufacturing activity lifted as production rates increased, and customer receipts jumped sharply as more contracts moved into the delivery phase.

    That translated into positive operating cash flow for the quarter, a key milestone after years of heavy investment. Cash on hand also rose to more than $100 million, leaving the balance sheet in a much stronger position.

    Why investors are focused on what comes next

    What keeps investors interested is not just what EOS has already delivered, but what could come next.

    Management confirmed it is in advanced discussions with several customers around high-energy laser systems and expanded counter-drone capabilities. These programs are moving beyond development, with EOS demonstrating working systems and progressing toward operational deployments.

    There has also been ongoing speculation around a potential South Korean contract, following recent conditional agreements and inspection milestones. While nothing has been confirmed, any conversion into a firm order would likely be a significant sentiment boost.

    More broadly, rising global tensions continue to support higher defence spending. Counter-drone systems have shifted from optional to essential, and EOS operates in a niche with relatively few credible competitors.

    My Foolish take

    After a 700% run, some volatility is normal. A 10% pullback looks far more like a reset within a strong uptrend than the start of any meaningful reversal.

    EOS has moved into execution mode, with positive cash flow, a deepening contract book, and clear visibility as production scales. With multiple potential contract announcements still ahead, the setup increasingly favours upside rather than downside.

    Looking at the long-term outlook, this dip looks like a chance to add exposure at more attractive levels.

    The post This ASX defence stock is down 10% in a week. Is the next leg higher already lining up? 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 1 Jan 2026

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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 positions in and has recommended 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.

  • Should I sell my CBA shares in 2026?

    A young girl looks up and balances a pencil on her nose, while thinking about a decision she has to make.

    Commonwealth Bank of Australia (ASX: CBA) shares are up 0.47% for the day at $150.77 a piece, at the time of writing. For the year to date, the shares are down 6.42% and they’re 5.34% below this time last year.

    In 2025, CBA shares enjoyed a strong share price rally, peaking at an all-time high of $192 per share in June. But strong headwinds sent the share price plummeting. 

    This week, the banking giant dropped out of first place as the largest stock on the S&P/ASX 200 Index (ASX: XJO). BHP Group Ltd (ASX: BHP) shares crossed over $50 a share for the first time in more than a year yesterday. Although CBA stock is also in the green at the time of writing, BHP’s move has pushed the miner to a market capitalisation of just over $253.5 billion. CBA is now in second place with a value of around $251.9 billion.

    Now the question is, is it time to sell up? Or is there any upside ahead for CBA shares in 2026?

    CBA shares: Buy, hold or sell for 2026?

    I personally think CBA shares could crash below $100 this year. I’d look at potentially selling up before the downturn accelerates further.

    Analysts are pessimistic about the outlook for CBA shares too. TradingView data shows that 13 out of 15 analysts have a sell or strong sell rating on the banking giant. The average target price is $124.60, which implies a potential 17.18% downside at the time of writing. 

    But some thing the share price could slump even lower to $99.81 a piece. That implies a 33.54T downside at the time of writing.

    Why is sentiment so negative?

    The issue is, CBA’s share price is overvalued versus its peers and the bumper price tag isn’t supported by the bank’s earnings results or business fundamentals. CBA’s current price to earnings (P/E) ratio, at the time of writing, is 24.86, which is much higher (and therefore more expensive) than other major banks.

    For comparison, ANZ Group Holdings Limited (ASX: ANZ)’s P/E ratio is 18.43, National Australia Bank (ASX: NAB)’s P/E ratio is 19.18 and Westpac Banking Corp (ASX: WBC)’s P/E ratio is 19.43.

    Not only is the valuation high, but CBA is facing ongoing net interest margin pressure due to intense market competition in home loan lending and deposit products, and also regulatory changes. 

    And not to mention, it looks like the Reserve Bank will keep the cash rate on hold for an extended period in 2026, or even hike rates. This puts even more pressure on banks to compete.

    The post Should I sell my CBA shares in 2026? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank of Australia right now?

    Before you buy Commonwealth Bank of Australia 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 Commonwealth Bank of Australia 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 1 Jan 2026

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

  • This ASX stock just delivered more standout niobium results. Why is the market still on the fence?

    A man looks at a map, totally confused.

    WA1 Resources Ltd (ASX: WA1) has delivered another busy quarterly update, yet the share price reaction has been relatively modest.

    WA1 shares are up 1.51% to $18.14 at the time of writing. Zooming out, the stock is still nearly 10% lower than this time last year, even as activity ramps up at the Luni niobium project.

    Here is what the company reported.

    Drilling delivers standout niobium grades

    The key highlight from the quarter was another strong set of drilling results from the Luni Niobium Project in Western Australia.

    WA1 reported further infill and extensional drilling across high grade zones, with results continuing to exceed expectations.

    Some of the standout intercepts included 67.3 metres at 5.4% Nb2O5, including a higher grade core of 30 metres at 9.8% Nb2O5. Additional holes returned 28.1 metres at 4.6% Nb2O5 and 36.5 metres at 2.9% Nb2O5.

    Importantly, drilling to the east of Luni extended mineralisation beyond the current mineral resource envelope. That included wide intercepts of 73 metres at 1.8% Nb2O5 and 35 metres at 3.2% Nb2O5, pointing to potential future resource growth.

    In total, around 35,000 metres of drilling was completed during 2025, with the results expected to feed into an updated mineral resource estimate later this year.

    Major Project Status adds momentum

    WA1 also confirmed that the Luni Niobium Project has been granted Major Project Status (MPS) by the Australian Federal Government for an initial 3-year period.

    This designation recognises Luni as a project of national significance and provides WA1 with coordinated access to federal agencies through the Major Projects Facilitation Agency.

    At the same time, pre development works continued on site, including construction of a temporary airstrip and completion of bore installation and pump testing to support hydrogeological studies.

    A very strong balance sheet

    The company finished the December quarter with roughly $138.5 million in cash and no debt. Based on current spending levels, WA1 estimates it has close to 10 quarters of funding available, giving it significant flexibility to progress studies without near term capital raising risk.

    Quarterly exploration and evaluation spend came in at $13.4 million, with most of that directed toward drilling and on-site programs.

    What to watch next

    While WA1 shares remain below last year’s levels, operational momentum at Luni continues to build.

    The market will now be watching for an updated resource estimate and further drilling success. Progress on development studies could be key to unlocking the project’s longer-term value.

    WA1 remains a stock worth watching this year.

    The post This ASX stock just delivered more standout niobium results. Why is the market still on the fence? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wa1 Resources right now?

    Before you buy Wa1 Resources 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 Wa1 Resources 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 1 Jan 2026

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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.

  • ASX Limited shares keep getting cheaper, but the market still isn’t convinced

    ASX board.

    ASX Ltd (ASX: ASX) shares are slightly lower today, extending a run that’s left the stock down around 12% over the past year and down 25% over the last 5 years.

    It’s a situation that at one point would have been very hard to believe, given the ASX’s long-admired status as a monopoly with a significant moat.

    But of course, the ASX has faced its fair share of challenges, including a slowdown in the IPO market, regulatory challenges, significant IT capital expenditure requirements, and a rising cost base.

    Despite all this, today’s announcement confirmed that the ASX is still growing revenues, remains highly profitable, and continues to generate strong cash flows. But the market’s response tells us that more needs to be done before investors rush back in.

    What is the takeaway from today’s announcement?

    The key takeaway from today’s announcement is that ASX’s cost base is moving structurally higher. Management lifted FY26 expense growth guidance, largely due to heavier investment in technology, risk management, and governance following the ASIC Inquiry. These aren’t one-off costs that disappear next year. They reflect a reset in how ASX must operate as a critical national infrastructure.

    In other words, ASX isn’t choosing to spend more to chase growth. It’s spending more to meet a higher regulatory and operational standard.

    That distinction matters.

    The ASX remains an exceptional business by most measures. Operating margins are still above 55%, net profit margins are around the mid-40s, and earnings per share has held up well over time. Few companies on the ASX can match that level of consistency or pricing power. Dividends also remain solid, and cash generation is dependable.

    But the direction of travel has changed. Margins have gradually drifted lower over the past few years, returns on equity have flattened, and more capital is being tied up in systems, compliance, and buffers rather than flowing through to shareholders.

    The market is responding by applying a lower valuation multiple than it once did.

    A cheaper stock?

    At roughly 20 times earnings, the ASX now trades below its own historical averages. On the surface, that looks cheaper. But cheaper doesn’t automatically mean undervalued. It can also mean expectations have reset.

    The market no longer sees ASX as an unencumbered monopoly with expanding returns. It increasingly looks at it as a high-cost base and highly regulated infrastructure asset. One that has very high-quality fundamentals, is very reliable, but has capped upside.

    That helps explain why solid results haven’t translated into share price momentum.

    Despite all that, the ASX isn’t broken. It’s evolving, and investors are being asked to recalibrate what they can expect in return.

    Today’s announcement reinforces the view that the ASX’s future is about building stability and resilience, not margin expansion. For investors, that shifts the story from growth to durability, and the share price is adjusting accordingly.

    Perhaps at some point, cheaper will become cheap enoug,h and investors will rush back in.

    The post ASX Limited shares keep getting cheaper, but the market still isn’t convinced appeared first on The Motley Fool Australia.

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

    Before you buy ASX 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 ASX 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.*

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    Motley Fool contributor Kevin Gandiya has no positions 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.

  • Domino’s Pizza announces board refresh as turnaround continues

    Happy friends at a party enjoying pizza, symbolising the Domino's Pizza share price.

    Domino’s Pizza Enterprises Ltd (ASX: DMP) has announced further changes at Board level, appointing a new Independent Non-Executive Director while saying farewell to a long-serving member of its Board.

    The moves come as the pizza chain continues to reshape its leadership team amid a broader operational and strategic reset.

    What did Domino’s Pizza Enterprises announce?

    Domino’s today announced:

    • Judith Swales has been appointed as an Independent Non-Executive Director, effective 24 February 2026
    • Longstanding director Grant Bourke will retire from the board on the same date, after nearly 25 years of service
    • A search is underway for an additional Non-Executive Director as part of the board’s ongoing renewal process

    What else should investors know?

    Judith Swales brings extensive experience across large, consumer-facing organisations, both as an Executive and a Director. She is currently Non-Executive Chair of Super Retail Group and has previously held senior leadership roles including as CEO, Global Markets at Fonterra, Managing Director of Heinz Australia, and CEO and Managing Director of Goodyear Dunlop Australia and New Zealand.

    She has also served on the boards of Virgin Australia, DuluxGroup, and Foster’s. Ms Swales will join Domino’s Audit and Risk Committee, Nomination, Culture and Remuneration Committee, and Independent Board Committee

    Grant Bourke’s retirement marks the end of an era. He joined Domino’s as a franchisee in 1993, became a director in 2001, and played a role in the company’s ASX listing in 2005. Over his career, Bourke also held senior operational roles, including Managing Director of Europe and Head of Corporate Store Operations in Australia and New Zealand, before serving as a Non-Executive Director for almost two decades.

    What did Domino’s management say?

    Executive Chairman Jack Cowin paid tribute to Bourke’s contribution and welcomed the new appointment.

    I have been fortunate to have worked alongside Grant for more than 30 years and throughout he has demonstrated his passion for the Domino’s brand, our franchise partners, and the potential of this business.

    On Swales’ appointment, Cowin added:

    Judith is one of the most experienced retail executives and directors in Australia, and will add her expertise in large-scale operations, brand stewardship and governance to our deliberations.

    What’s next for Domino’s Pizza Enterprises?

    These board changes follow an announcement earlier this month of new executive leadership roles, including a new CEO for Australia and New Zealand and expanded responsibilities for the Group CFO, as Domino’s works through a broader leadership transition.

    The board says progress continues on the search for a permanent Group Chief Executive Officer, with further updates expected in due course. Investors will be watching closely to see whether the refreshed board and executive team can stabilise performance, rebuild franchisee confidence, and return the business to more consistent growth.

    Domino’s Pizza Enterprises share price snapshot

    Over the past 12 months, Domino’s Pizza Enterprises shares are down around 22%, underperforming the ASX 200 in that period.

    The post Domino’s Pizza announces board refresh as turnaround continues appeared first on The Motley Fool Australia.

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

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    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…

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

  • Top brokers name 3 ASX shares to buy today

    A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

    Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

    Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

    DroneShield Ltd (ASX: DRO)

    According to a note out of Bell Potter, its analysts have retained their buy rating and $5.00 price target on this counter-drone technology company’s shares. This follows the release of another strong update from DroneShield this week. Bell Potter notes that the company’s sales growth was stronger than it was expecting. And while its sales pipeline has shrunk since October, it isn’t concerned. It believes this reflects the loss of low probability contracts or potential contracts that have been reduced in size. Outside this, the broker believes the company has a market leading offering and a competitive advantage owing to its years of battlefield experience. This bodes well for 2026 given how Bell Potter believes this year will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending. The DroneShield share price is trading at $4.00 on Wednesday afternoon.

    Life360 Inc. (ASX: 360)

    A note out of Citi reveals that its analysts have retained their buy rating on this location technology company’s shares with a reduced price target of $40.75. The broker was pleased with Life360’s fourth quarter and full year update, highlighting that it was stronger than expected with monthly active users (MAUs) and guidance for FY 2026 surprising to the upside. The latter includes guidance for 20% growth in MAUs, which Citi believes should ease concerns that its user growth was slowing. Overall, it thinks the result was strong and investors should be snapping up shares at current levels. The Life360 share price is fetching $28.67 at the time of writing.

    Light & Wonder Inc (ASX: LNW)

    Analysts at Morgan Stanley have initiated coverage on this gaming technology company’s shares with an overweight rating and $220.00 price target. The broker believes that recent developments position Light & Wonder to grow quicker than the industry over the medium term. In light of this and its attractive valuation, Morgan Stanley sees potential for a material re-rating in its valuation in the near term. This will especially be the case if the company executes its growth strategies successfully. The Light & Wonder share price is trading at $163.81 this afternoon.

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

    Should you invest $1,000 in Life360 right now?

    Before you buy Life360 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 Life360 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…

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    Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Life360, and Light & Wonder Inc. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.