The lagged impact of higher prices, along with resurgent inflation killing the chances of further rate cuts, hit ASX 200 retail shares in 2025.

The Consumer Discretionary Index (ASX: XDJ) rose by just 1.77% and produced a total return, including dividends, of 4.09% last year.

That was a decidedly different performance than 2024, when ASX 200 retail shares delivered extraordinary capital growth of 20.71%.

At the start of last year, annual inflation was within the Reserve Bank’s target of 2% to 3% and interest rates were cut three times.

The consumer discretionary index reached its 52-week peak in August amid the third rate cut, and the economic picture looked healthy.

However, all bets were off when the annual inflation rate jumped from 2.1% in the June 2025 quarter to 3.2% in the September quarter.

The consumer discretionary index began a sharp ongoing decline immediately after the data was released in late October.

Hopes of further rate cuts were dashed, and more data to follow led to the RBA openly flagging the possibility of a rate hike in 2026.

By 31 December, the index was barely in the green, up just 1.77%.

This meant ASX 200 retail shares underperformed the benchmark S&P/ASX 200 Index (ASX: XJO) last year.

The ASX 200 lifted 6.8% and provided total gross returns of 10.32%.

Of course, some retail stocks survived the volatility better than others.

Here are the five best ASX retail shares for price growth in 2025.

5 best ASX 200 retail shares of 2025

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price ripped 113% in 2025.

Stock in the Australian and New Zealand car retailer closed at $24.64 on 31 December.

The stock’s 52-week high was $35.64.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price rocketed 75% to close the year at 99 cents per share.

The ASX 200 retail gaming share’s 52-week high was $1.10.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price soared by 57% in 2025.

The ASX furniture retailer finished the year at $23.57 per share.

Nick Scali’s 52-week high was $25.98 — a record for the company.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price lifted 49% to close out the year at $6.94.

The fellow furniture retailer also reached an all-time high last year at $7.70.

Light & Wonder Inc (ASX: LNW)

The Light & Wonder share price rose 15% to close at $157.57 on 31 December.

The ASX 200 retail gaming share also hit an all-time high of $181.25 last year.

The post Top 5 ASX 200 retail shares of 2025 appeared first on The Motley Fool Australia.

More reading

• Experts rate 3 ASX 200 stars of 2025: Is there more growth ahead?
• 3 monster stocks to hold for the next 3 years
• Here are the top 10 ASX 200 shares today
• Named: The best ASX shares to buy in January
• Forget term deposits and buy these ASX dividend shares

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Temple & Webster Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd and Macquarie Group. The Motley Fool Australia has recommended Jb Hi-Fi, Temple & Webster Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

James Hardie Industries plc (ASX: JHX) shares are showing early signs of stabilising after a tough year.

The building materials group hit a 5-year low of $24.41 on 17 November, capping off months of heavy selling. Since then, the share price has clawed back some ground. On Friday, James Hardie shares jumped 5.12% to close at $32.42.

Even after that rebound, the stock remains around 35% lower than this time last year, highlighting just how far sentiment has fallen. The recent price action suggests investors may now be reassessing whether the pessimism has gone too far.

Let’s take a closer look.

A rough year for a quality business

James Hardie is a global leader in fibre cement products, with strong brands and exposure to long-term housing demand in the US and other key markets.

However, 2025 was a difficult year. Higher interest rates slowed construction activity, while rising costs pressured margins. On top of that, the company’s large AZEK acquisition added complexity, integration costs, and uncertainty around near-term earnings.

As a result, investors steadily downgraded their expectations, driving the share price lower towards the back end of the year.

By the time the stock hit its 5-year low in November, much of the bad news appeared to be priced in.

Recent results offered some relief

In its Q2 FY26 results, James Hardie delivered a mixed but improving update.

Net sales rose 34% to around US$1.29 billion, supported by contributions from AZEK and steady demand across core regions. Adjusted EBITDA increased 25% to approximately US$330 million, leading management to lift full-year EBITDA guidance.

That guidance upgrade helped stabilise sentiment, even though statutory profit remained under pressure due to acquisition-related costs.

Insider activity sends mixed signals

One factor that caught investors’ attention was director Jesse Singh selling a large number of shares at the start of 2026.

While insider selling can occur for many personal reasons, it often makes investors cautious, particularly when a stock has already fallen heavily.

That said, there has also been director buying late in 2025, suggesting views within the board are mixed rather than outright negative.

What the chart is telling us

From a technical perspective, James Hardie shares appear to be forming a short-term uptrend.

Recent price action suggests buyers are gradually stepping back in. However, the broader trend remains weak, and the shares still face resistance in the mid $30 range.

Foolish takeaway

James Hardie’s share price collapse has reset expectations significantly.

The recent rebound suggests investors may be starting to re-rate the stock as earnings stabilise and uncertainty fades. However, a sustained recovery will likely depend on improved margins and smoother execution through 2026.

The post James Hardie shares rebound from 5-year low. Is the worst finally over? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Aristocrat, James Hardie, and TechnologyOne shares
• Shocking declines: Australian shares that disappointed investors in 2025
• Why Morgans rates these popular ASX shares as buys
• These popular ASX 200 shares are in the Boxing Day sales

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.

This ASX tech stock has delivered more twists and turns than a last-minute finals thriller this past year.

Between January and October, Catapult Sports Ltd (ASX: CAT) rocketed more than 110%, only decline 45% from its peak. At the time of writing, the shares sit at $4.14, down 11% for the month.

The wild ride reflects both the promise and the growing pains of a business still learning how to turn global reach into reliable profits. But beneath the share price noise, Catapult is quietly building something substantial.

Growing international footprint

The Melbourne-based ASX tech stock is best known for its wearable GPS trackers and performance analytics. Its footprint in the US and Europe is growing rapidly. More elite teams in the NBA, the Premier League, and top-tier rugby competitions are using Catapult’s tech.

Catapult has also been busy on the acquisition trail. It snapped up strength-training specialist Perch and recently acquired German analytics firm Impect GmbH. The last takeover is to sharpen its edge in elite soccer scouting and data analysis. These deals fit neatly into the ambition of the ASX tech stock to become the global operating system for professional sports.

Fundamentally, things look solid. Annualised contract value jumped 19% to US$115.8 million, contract sizes are rising, and customers now stick around for almost eight years. Still, fears of dilution, integration risk, and a broader tech sell-off spooked some investors.

Small player, exploding arena

What really makes Catapult pop over the long haul is just how big the prize is compared to where it’s sitting today. The ASX tech share is still a small player in a very large arena and that arena is getting bigger fast.

The global professional sports tech market is tipped to surge through the rest of the decade. Data, analytics, and performance tracking is shifting from “nice to have” to absolute must-haves across more sports, leagues, and competitions.

As mentioned here, Bell Potter highlights that “the pro sports technology market is currently valued at US$36 billion in 2025 and is forecast to double to US$72 billion by 2030.” This is great news for the ASX tech stock, especially since being a market leader.

Buy, hold or sell?

Analysts remain upbeat on the ASX tech stock. Their average 12-month target of $6.74 implies a juicy 63% upside from here. The most bullish prediction sees the share price go to $7.73, a potential surge of 87%.

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

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

The post Buy this ASX tech stock now for the long run appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
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• Why these ASX growth stocks could be much bigger in 2030 than today
• Here are the top 10 ASX 200 shares today
• Top 5 ASX 200 tech shares for growth in 2025

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

An exciting thing about the ASX share market is that there are opportunities everywhere.

There are some large winners that are well-known and grow profit virtually every year. But, small companies and cyclical businesses can also be exciting ideas if we buy them at the right time.

Experts from the funds management business Wilson Asset Management (WAM) have outlined two ASX shares in the WAM Capital Ltd (ASX: WAM) portfolio that could be exciting opportunities.

WAM could be well worth listening to because it has outperformed the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA) over the past three years, five years, ten years, and since inception in August 1999. Before fees, expenses and taxes, the WAM Capital portfolio has returned an average of 15.3% per year since 1999.

Maas Group Holdings Ltd (ASX: MGH)

WAM describes Maas Group as a diversified Australian construction materials, equipment and services provider with exposure across civil infrastructure, renewables, mining and real estate markets.

The fund manager pointed out that the Maas share price rose in December after the company announced a major project worth approximately $200 million for its electrical infrastructure subsidiary called JLE Group.

This project aims to supply, deliver and install modular electrical infrastructure for an artificial intelligence (AI) factory builder and operator with the delivery expected throughout the 2026 calendar year.

Excitingly, the project has enabled the ASX share to expand its addressable market into the fast-growing digital infrastructure market. WAM said that if the initial contract value awarded is extrapolated across the remaining pipeline, it “implies a substantial runway exists with JLE Group”.

Tasmea Ltd (ASX: TEA)

The other ASX share that the fund manager highlighted from the WAM Capital portfolio was Tasmea, which operates a portfolio of trade-skilled services businesses, including electrical, mechanical, civil and water (and fluids) services.

In December, the company announced that it had completed the acquisition of WorkPac Group, a leading provider of workforce solutions in Australia.

WAM noted the deal adds to the ASX share’s earnings in the high single digits, with a number of long-term benefits including revenue and cost synergies that will “support multi-year earnings growth”.

Despite that positive, the Tasmea share price fell alongside the broader market – the ASX share declined 12%. WAM believes this drop was because of some concerns that this acquisition was “off strategy”.

The fund manager thinks that the market is underestimating emerging pressures within the east coast labour market, with the WorkPac Group acquisition “positioning the company strongly to capitalise on an expected surge in activity associated with the Brisbane Olympics. WAM also said that the broader commodity price backdrop remains “supportive for demand” within its core verticals.

The post 2 ASX shares these experts rate as a buy right now appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Develop Global, EOS, and Maas shares are racing higher today
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 S&P/ASX 200 Index (ASX: XJO) rose 6.8% in 2025 and gave investors a total return, including dividends, of 10.32%.

These three ASX 200 shares delivered the best capital growth among their sector peers last year.

Do the experts see them as good buys for 2026, or is their phenomenal run done?

Let’s take a look.

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive had the best price growth among ASX 200 consumer discretionary shares in 2025.

The Eagers Automotive share price ripped 113% in 2025.

Stock in the Australian and New Zealand car retailer closed at $24.64 on 31 December.

On Friday, this ASX 200 retail share closed at $26.64, up 4.8%.

Jefferies upgraded Eagers Automotive shares to a buy rating last week with a 12-month price target of $29.50.

Canaccord Genuity also has a buy rating with a target of $33.60.

These targets imply potential upside of between 11% to 26% over the coming 12 months.

Evolution Mining Ltd (ASX: EVN)

ASX 200 gold miner Evolution Mining had the best capital growth of the ASX 200 large-cap shares last year.

Large caps have a market capitalisation of $10 billion or more.

The Evolution Mining share price rose by 164% to $12.68 apiece on 31 December.

The strong running gold price pushed the stock higher in 2025. Gold rallied an incredible 65%, building on a 27% gain in 2024.

On Friday, Evolution Mining shares closed at $12.82, up 0.6%.

Morgans has a sell rating on Evolution Mining shares with a price target of $11.10.

This implies a potential downside of almost 15% in 2026.

Citi sees Evolution Mining shares as fully valued given its hold rating and 12-month target of $12.70.

DroneShield Ltd (ASX: DRO)

ASX 200 defence share Droneshield was the No. 1 stock in the industrials sector for 2025.

The Droneshield share price skyrocketed 300% to close at $3.08 on 31 December.

Droneshield is benefitting from a worldwide lift in global defence spending.

However, investors were alarmed in November when CEO Oleg Vornik sold more than $49 million worth of shares.

In response, DroneShield announced a mandatory minimum shareholding policy for all directors and senior managers. 

On Friday, Droneshield shares closed at $4.02, up 4.4%.

Bell Potter reiterated its buy rating on Droneshield shares last month.

However, the broker reduced its 12-month price target from $5.30 to $4.40.

This still implies a potential upside of almost 10% in the new year ahead.

The post Experts rate 3 ASX 200 stars of 2025: Is there more growth ahead? appeared first on The Motley Fool Australia.

More reading

• Top 5 ASX 200 retail shares of 2025
• ASX 200 materials sector dominates as scores of mining shares hit new highs
• Here are my top 10 ASX stocks for 2026
• 3 monster stocks to hold for the next 3 years
• Buy, hold, sell: CBA, CSL, and DroneShield shares

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investing a meaningful sum like $50,000, my goal is not to be clever. It is to build a portfolio that balances quality, growth, and resilience, while keeping the number of moving parts manageable.

I am not trying to predict short-term market moves. Instead, I want exposure to businesses and assets that I would be comfortable holding through volatility, knowing that time and fundamentals can do the heavy lifting.

If I were investing $50,000 across the ASX right now, this is how I would allocate it.

$15,000 in Wesfarmers Ltd (ASX: WES)

Wesfarmers is not cheap, but I am willing to pay a premium for quality when the business has a long track record of good return and disciplined capital allocation. With exposure to Bunnings, Kmart Group, Officeworks, industrials, and healthcare, Wesfarmers offers diversification within a single holding.

I like having a business in the portfolio that can generate strong cash flows across different economic conditions. Wesfarmers plays that role for me.

$12,000 in CSL Ltd (ASX: CSL)

CSL gives me exposure to global healthcare and long-term structural growth.

After a disappointing period, expectations are lower and sentiment is more balanced. I do not need CSL to deliver spectacular growth to justify owning it. I just need steady execution, margin recovery over time, and continued demand for plasma therapies.

For a medium-sized portfolio, CSL adds global earnings exposure and defensive qualities that complement more cyclical holdings.

$10,000 in TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of two quality growth stocks in this portfolio.

Its enterprise software is deeply embedded in government, education, and large organisations, where switching costs are high and contracts are long-dated. The shift to SaaS has improved earnings visibility and margins, while international expansion adds a longer growth runway.

Together with its ongoing investment in research and development (20% to 25% of annual revenue), I believe this is an ASX share with a bright future.

$8,000 in Xero Ltd (ASX: XRO)

Xero adds more quality growth exposure to the portfolio.

This ASX share has built a global small business platform with strong recurring revenue and high customer retention. While the share price can be volatile, I think it is worth sticking with Xero because the long-term opportunity is immense if management continues to execute. The company estimates that it has a total addressable market worth $100 billion.

I would not make Xero my largest position, but I am comfortable allocating a meaningful amount to a global SaaS leader that now trades at a more reasonable valuation than in recent years.

$5,000 in the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Finally, I would round out the portfolio with an ETF.

The VanEck Morningstar Wide Moat AUD ETF gives exposure to fairly valued US-listed stocks with durable competitive advantages. I like this as a way to add diversification and quality without relying on any single stock.

In a $50,000 portfolio, this ETF helps smooth risk and provides exposure to global businesses with pricing power and strong returns on capital. This is never a bad idea.

Why this mix of ASX shares works for me

This portfolio is deliberately simple. It blends defensive qualities, structural growth, global exposure, and diversification without becoming overly complex.

I am not claiming this is the perfect portfolio, or that it will outperform every year. But it reflects how I prefer to invest. Focus on quality, avoid overtrading, and hold businesses I understand and trust.

The post How I’d invest $50,000 across ASX shares today appeared first on The Motley Fool Australia.

More reading

• Should you buy Wesfarmers shares before February?
• Time to sell? These were my worst ASX shares in 2025
• Snap up these ASX 200 stocks trading close to 52-week lows
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• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Grace Alvino has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Technology One, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL, Technology One, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with the smallest of declines. The benchmark index dropped slightly to 8,717.8 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set for a good start to the week following a positive finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.35% higher. In the United States, the Dow Jones was up 0.5%, the S&P 500 rose 0.65%, and the Nasdaq jumped 0.8%.

Oil prices rise

It could be a good start to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 2.35% to US$59.12 a barrel and the Brent crude oil price was up 2.2% to US$63.34 a barrel. This was driven by concerns over Iranian supply.

Buy Develop Global shares

The team at Bell Potter thinks investors should be buying Develop Global Ltd (ASX: DVP) shares. According to the note, the broker has retained its buy rating on the mining and mining services company’s shares with an improved price target of $5.80. It said: “With Woodlawn de-risking behind us, DVP presents a unique small-cap copper-zinc exposure that is relatively undervalued compared with peers in the Resources space.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price pushed higher again on Friday night. According to CNBC, the gold futures price was up 0.9% to US$4,500.9 an ounce. Geopolitical concerns and US interest rate cut optimism were behind the rise.

Hold Atlas Arteria shares

Analysts at Morgans think that Atlas Arteria Group (ASX: ALX) shares are fairly valued at current levels. They have retained their hold rating on the toll road operator’s shares with a trimmed price target of $4.74. The broker said: “Forecast of ALX free cashflow and cash reserves is downgraded (but we still see ALX as capable of sustaining the current DPS of 40 cps until at least the end of the decade). DCF-based business-as-usual valuation of ALX reduces 30 cps to $4.43/sh, due to the forecast changes. 12 month target price (which includes a mild premium for potential takeover activity) declines 31 cps to $4.74/sh.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Why did Morgans just downgrade its view on this ASX industrials stock?
• ASX 200 materials sector dominates as scores of mining shares hit new highs
• Santos, Beach Energy, or Woodside shares. Which ASX energy share paid the most passive income in 2025?
• Here are the top 10 ASX 200 shares today
• Top Australian stocks to buy with $5,000 in 2026

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

With February reporting season approaching, many investors are asking the same question. Is it worth buying Wesfarmers Ltd (ASX: WES) shares before the company reports or should you wait?

At a current share price of $80.91, Wesfarmers is trading 15% below its 52-week high of $95.18. 

That pullback has reopened the debate, particularly given the company’s reputation for quality and long-term execution. While buying any stock ahead of earnings carries risk, I think there is a reasonable case for considering Wesfarmers before February.

A high-quality ASX stock after a pullback

Wesfarmers is not a cheap stock on traditional valuation metrics. It rarely is. What investors are paying for is the quality of the portfolio, the resilience of earnings, and management’s long track record of disciplined capital allocation.

Consensus estimates from CommSec point to earnings per share of $2.52 in FY26, rising to $2.75 in FY27. That is not explosive growth, but it reflects steady progress from a diversified group that includes Bunnings, Kmart Group, Officeworks, WesCEF, and Wesfarmers Health.

The recent share price weakness does not appear to reflect a fundamental breakdown in the business. Instead, I think it looks more like a reset in expectations after a very strong run.

Dividends remain a key part of the appeal

For long-term investors, dividends matter. Wesfarmers has a strong history here, and current expectations remain supportive.

According to CommSec, fully franked dividends of $2.14 per share are expected in FY26, rising to $2.33 in FY27. At today’s share price, that represents an attractive income stream backed by cash-generative businesses and a strong balance sheet.

While dividends are never guaranteed, I think Wesfarmers’ focus on capital discipline and shareholder returns suggests income remains a priority.

What reporting season could bring for Wesfarmers shares

Buying before reporting season always comes with uncertainty. Short-term market reactions can be unpredictable, even when results are solid.

That said, commentary from the 2025 annual general meeting (AGM) pointed to resilient trading conditions, ongoing investment in productivity, and a diversified portfolio that helps offset weakness in individual divisions.

But if the results were to disappoint, I believe the downside risk from here may be more limited than it was at higher price levels.

Why I lean towards buying before February

For me, the decision comes down to time horizon.

If you are a short-term trader trying to guess the market’s reaction to earnings, waiting may make sense. But if you are a long-term investor looking to own a high-quality ASX 200 stock through multiple cycles, I think the current setup is reasonable.

Wesfarmers shares are not cheap, but I believe they represent value relative to the quality, stability, and long-term earnings power of the business. I would rather lock up a purchase at this price than waiting and risk them rising back towards their 52-week high.

Foolish takeaway

Buying Wesfarmers shares before February is not without risk. Earnings season always carries uncertainty. However, after a meaningful pullback, supported by solid earnings expectations and attractive fully franked dividends, I think the risk-reward balance looks acceptable for long-term investors.

The post Should you buy Wesfarmers shares before February? appeared first on The Motley Fool Australia.

More reading

• Don’t want to rely on your wage? Build a second income with these ASX shares
• Here are my top 10 ASX stocks for 2026
• 3 ASX 200 blue-chip shares I would buy with $100,000
• 5 unbeatable ASX stocks I’m eager to buy in 2026
• My top 5 ASX stocks to buy in early 2026

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

Liontown Ltd (ASX: LTR) has been one of the ASX 200’s standout performers over the past year. The lithium producer’s share price is now sitting at $2.05, up an impressive 266% over the past 12 months, and more than 30% higher in just the past week.

That surge has pushed Liontown’s market capitalisation to around $6 billion, cementing its place among Australia’s most closely watched lithium stocks. After such a powerful run, is there more upside ahead in 2026?

Let’s unpack.

Lithium prices have rebounded sharply

A major driver behind Liontown’s surge has been the recovery in lithium prices.

Spot lithium carbonate prices are currently around US$19,800 per tonne, marking the strongest levels seen in more than 2 years. Prices had collapsed during the downturn but have rebounded as demand from electric vehicles and energy storage improves.

According to Trading Economics, lithium prices are expected to trade in a broad US$11,000 to US$28,000 per tonne range through 2026, depending on supply growth and EV demand. This improving pricing backdrop has lifted sentiment across the lithium sector.

Liontown’s financial position

Liontown is still in a heavy investment phase, which shows clearly in its financials.

Over the past 12 months, the company generated around $298 million in revenue, reflecting its transition into production. However, it remains loss making, with a net loss of roughly $193 million over the same period.

This profile is not unusual for a developing lithium producer, but it does mean the company is highly sensitive to lithium prices, production ramp up, and cost control.

Liontown has approximately 2.94 billion shares on issue, and its 52-week trading range spans from about 42 cents to just over $2.09, highlighting how quickly sentiment has shifted.

What brokers are saying

Broker views on Liontown have become more divided following the sharp rally.

Some analysts remain positive on the long-term outlook for lithium and continue to see strategic value in Liontown’s Kathleen Valley project. That said, valuation concerns are starting to surface at current price levels.

Consensus broker data points to an average 12-month price target of around $1.17, well below the current share price. As a result, many ratings now sit at ‘hold’, reflecting caution around valuation rather than a loss of confidence in lithium’s longer-term demand.

Can the rally continue?

Liontown’s share price momentum has been exceptional, but expectations are now much higher. For the stock to keep climbing, lithium prices will likely need to remain supportive and the company must deliver on production and costs.

After a 260% run, volatility should be expected. Pullbacks are common after moves of this size, particularly in commodity-linked stocks where sentiment can turn quickly.

The post Up 260% in a year, can this ASX 200 lithium stock keep climbing in 2026? appeared first on The Motley Fool Australia.

More reading

• ASX 200 materials sector dominates as scores of mining shares hit new highs
• 3 ASX 200 stocks rocketing higher in the first full trading week of 2026
• 12 ASX lithium shares rip to 52-week highs
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

As I covered this week, 2026 was a decent year for both the S&P/ASX 200 Index (ASX: XJO) and my own portfolio of ASX shares. I was able to slightly outperform the market’s 10.3% return (growth plus dividend income) in 2025, thanks in part to the winners I discussed on Friday.

But not all of my ASX stocks did well in 2025. In fact, two stood out as notable laggards.

Two ASX shares that dragged on my portfolio in 2025

CSL Ltd (ASX: CSL)

I first picked up CSL shares a number of years ago for about $225 each. This healthcare stock had a horrid 2025, which prompted me to pick up some more shares at just under $200. Alas, CSL finished the year at $172.65 each. That means my position went backwards by the best part of 30% last year. Ouch. At least I didn’t buy my entire position on 1 January last year, which would have lost me closer to 40% of my investment.

Even so, CSL was a stinker investment. But I’m not too worried. For one, it is still growing, with the company reporting underlying profit growth of 14% in August for its full-year earnings.

Yes, the company is facing some short-term hurdles, particularly from US tariffs. But as a world-leading vaccine and blood plasma medicine manufacturer, I think its long-term future is bright. Some experts agree, with Morgan Stanley recently giving the company a buy rating and a 12-month share price target of $256.

Kogan.com Ltd (ASX: KGN)

ASX e-commerce share Kogan is my other 2025 stinker. This stock had a disastrous year last year, falling from $6.21 to the $3.67 it finished December. That’s a drop with a nasty 40.9%.

I’ll admit, I didn’t buy this ASX share at the right price. Kogan has had a few issues in recent years, including problems with its acquisition of the New Zealand-based Mighty Ape. But I’m not selling, as I think Kogan is primed for a recovery. Its 2025 financial results were encouraging, with Kogan reporting 6.2% revenue growth and a 12.7% lift in net profits.

With the company writing down some of the goodwill from its Mighty Ape acquisition last year, I feel confident that 2026 will be a better year. I am also encouraged by the ongoing share buyback program Kogan is pursuing. Given the company’s low share price over much of 2025, this should boost shareholder returns quite nicely in the years ahead.

The post Time to sell? These were my worst ASX shares in 2025 appeared first on The Motley Fool Australia.

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