It has already been a huge year for Santos Ltd (ASX: STO) shares.

The Santos share price is down 1.72% to $8.58 at the time of writing, but the stock is still up almost 40% since the start of 2026.

Just yesterday, it traded as high as $8.75, a level not seen since late 2014.

Yes, buying after a run like that can feel uncomfortable. Nobody wants to turn up after most of the gains have already been made.

But despite the much higher share price, I’d still be happy buying Santos today.

Here’s why.

Production is about to step up

The biggest reason is that Santos is entering a very different stage of its growth phase.

After years of heavy spending, major projects such as Pikka in Alaska and Barossa are now producing and ramping up.

Pikka achieved first oil in May and has already reached around 40,000 barrels of gross production per day.

Santos is targeting roughly 80,000 barrels per day by the end of the third quarter.

Barossa is starting to contribute as well, giving the company another source of production growth.

Santos expects second-half production to be around 20% to 30% higher than the first half.

And that’s the part I really like.

The company has already done much of the expensive work.

Investors should now start to see greater benefits from those projects, including higher production and stronger cash flow.

The next project is already lined up

Pikka and Barossa aren’t the end of it either.

Santos recently agreed to increase its interest in the Papua LNG project by an additional 3.3% for approximately US$189 million.

That gives the company another sizeable growth project beyond those already contributing.

Papua LNG is still further down the track, but it adds another potential production source without Santos having to rely too heavily on Pikka and Barossa.

The company also has operations across Australia, Papua New Guinea and the United States, which gives it a decent spread of assets.

And with oil prices above US$100 a barrel, Santos is getting some help from higher energy prices as well.

Would I worry about the valuation?

TipRanks shows 9 ranked analysts covering Santos, with 7 buys and 2 holds.

The average 12-month price target is $8.64, which is nearly identical to the current share price.

But there are more bullish targets out there.

Bernstein sits at $10.10, while Citi has a $9.35 target and Macquarie recently lifted its target to $9.25.

So, I wouldn’t buy Santos expecting another 40% gain in the next few months.

My interest is more about what the business could look like over the next few years.

The post Santos shares are up 40% in 2026. Here’s why I’d still buy them today appeared first on The Motley Fool Australia.

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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.

Commonwealth Bank of Australia (ASX: CBA) shares have tumbled further into the red in Tuesday’s trade.

At the time of writing, the shares are down by around another 1% and changing hands at $153 each. 

The latest decrease means the banking giant has now shed around 12% since it posted its FY26 results in mid-August. The shares are also now down around 5% year to date and 9% lower than 12 months ago.

Why are CBA shares still falling?

It’s been a tough month for ASX bank shares across the board as investor confidence continues to take a beating.

Growing concerns about higher-than-expected inflation, the prospect of further interest rate hikes, and fears of a rising cost of living have led many investors to shy away from ASX shares recently.

And all this came against a backdrop of falling mortgage demand, a weakening housing market, and tight competition squeezing margins.

The bank’s FY26 results, which it posted in mid-August, didn’t help spark investor confidence.

CBA posted a 7% increase in cash NPAT and an 8% increase in statutory NPAT. Operating income also increased by 6.2%. The bank announced a $2.70-per-share fully franked final dividend and a fully franked full-year dividend of $5.05, up 20 cents.

On a positive note, CBA said it is the first time it has reported growth at or above system in each of its five core domestic product categories: home lending, business lending, consumer finance, household deposits, and business deposits.

But going forward, CBA flagged a cautious outlook, with softer household spending and slower economic growth. This raised concerns about the bank’s earnings strength and its already-high valuation amid a weakening market.

Now the question is, are CBA shares approaching the bottom? Or is there more downside ahead?

Are the shares a buy, sell or hold now?

CBA shares have finally made their long-awaited correction, but I don’t think the end is in sight yet.

Market Index data shows all brokers still have a strong sell rating on the shares. The $125.20 average target price implies the shares could fall another 19% over the next 12 months, at the time of writing.

On TradingView data, the majority (14 out of 16) have a sell/strong sell rating on CBA. The average $127.86 target price implies a potential 16% downside, and the minimum $90 suggests the shares could fall another 41%, at the time of writing.

Shaw and Partners has named the Big Four bank as an ASX share to sell this week. The broker highlights that CBA shares continue to trade at a significant premium to peers despite its subdued earnings growth outlook and warns that there is limited scope for further earnings-driven upside.

Medallion Financial Group’s Stuart Bromley also has a sell recommendation on CBA shares. He agrees that the bank’s valuation is strengthened and that better valuation opportunities exist elsewhere. 

The post Down 12%: Are CBA shares a buy, sell or hold now? appeared first on The Motley Fool Australia.

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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 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.

Zip Co Ltd (ASX: ZIP) and New Hope Corp Ltd (ASX: NHC) shares don’t have much in common.

After all, one is an S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock while the other is an ASX 200 coal stock.

One thing they do have in common is their strong outperformance today.

In morning trade on Tuesday, the ASX 200 is down 0.5%.

New Hope shares, on the other hand, are up 2.9%, changing hands for $6.46 each. And Zip shares are soaring 4.3%, trading for $2.19 apiece.

Zip shares look to be getting a boost today after the company announced that, in line with its 20 August announcement, Zip commenced the on-market share buyback of up to $50 million worth of its shares on Monday.

As for New Hope, the coal miner released its FY 2026 results this morning.

New Hope reported a full year net profit after tax (NPAT) of $161 million. And management declared a fully franked final dividend of 30 cents per share, up from last year’s final passive income payout of 15 cents per share.

That’s this week’s price action.

Now, if you’d invested $10,000 in both ASX 200 stocks three years ago, here’s what you’d have today.

(As for our benchmark, the ASX 200 has gained 19.5% since 15 September 2023.)

New Hope share gains driven by dividends

Three years ago, New Hope shares were trading for $6.22 apiece.

So, for $10,000 you could have bought 1,607 shares in the ASX 200 coal miner.

At today’s $6.46, you could sell those same shares for $10,381.

While that’s not much of a capital gain over three years, we haven’t factored in the New Hope dividends yet.

We can’t count the 30 cent per share final dividend declared today, as you’d need to own the stock at market close this Friday to be eligible for that passive income payout.

But if you’d owned the coal miner for the past three years you would have received the past six fully franked dividend totalling $1.13 a share.

If we add that back in to today’s share price, then the accumulated value of the New Hope shares you bought for $10,000 three years ago is now worth $7.59 each.

And those 1,607 shares are worth an accumulated $12,197.

Zip shares strong rebound from post pandemic beating

Unlike New Hope shares, Zip shares were beaten down badly by 15 September 2023, trading for just 32 cents each.

For $10,000, then, you could have picked up 31,250 shares in the ASX 200 BNPL stock.

Now, Zip doesn’t pay any dividends.

But at today’s $2.19 share price, those 31,250 shares are worth a cool $68,438.

How about in 2026?

It’s a vastly different story in 2026.

Year to date Zip shares remain down 34% while New Hope shares have surged 61% and paid an interim dividend.

The post $10,000 invested in Zip and New Hope shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• New Hope shares near 52-week high. Here’s what stood out in the result
• New Hope reveals major 2026 coal resource increases
• These are the 10 most shorted ASX shares
• Energy shares rose while the ASX 200 slumped last week. Here’s why
• Zip shares crash another 11% this week: What is going on?

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