The S&P/ASX 200 Index (ASX: XJO) is weaker on Friday, down 0.71% to 8,864.3 points.

The barnstorming materials sector is dragging the market down today as ripsnorting commodity prices take a breather.

As we covered this week, many ASX 200 mining shares are resetting their 52-week highs amid this emerging resources boom.

Left in the dust are several popular ASX 200 shares in other sectors trading at 52-week lows.

In this article, we look at three in that category.

All of them have come off extraordinary runs, and are in a process of price correction right now.

Take a look.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi sells consumer electronics, electrical goods, and white goods through its JB Hi-Fi and The Good Guys networks.

The JB Hi-Fi share price hit a 52-week low of $79.44 yesterday.

This ASX 200 retail share enjoyed an extraordinary run from late 2023 through to late 2025, rising about 130%.

Many brokers are positive on the stock but have reduced their price targets recently.

RBC Capital Markets reiterated its buy rating on JB Hi-Fi this week but reduced its 12-month price target from $101 to $91.

UBS has a hold rating on the stock and also reduced its target from $110 to $94 this month.

Macquarie has a buy rating but reduced its price target this month from $121 to $112.

Temple & Webster Ltd (ASX: TPW)

Temple & Webster shares recorded a 52-week low of $11.96 on Friday.

This ASX 200 homewares retail share also started roaring in late 2023.

Temple & Webster shares ripped about 220% higher between December 2023 and August 2025.

This month, Goldman Sachs reiterated its buy rating on Temple & Webster shares with a price target of $28.

Earlier this week, my colleague, Marc, outlined three reasons why he thinks this ASX 200 retail share is a buy now.

Wisetech Global Ltd (ASX: WTC)

The Wisetech share price hit a 52-week low of $58.01 today.

The tech sector’s No.1 share by market capitalisation was a flyer between mid-2022 and early 2025.

The Wisetech share price rose about 245% over that period.

Last year was challenging due to governance issues, disappointment over the FY25 results, and a broader decline in tech shares.

The result: Wisetech shares have halved in value over the past 12 months.

But top broker Morgans sees a recovery ahead.

Last month, Morgans retained its buy rating on Wisetech and revised its share price target to $112.50 following the company’s investor day.

Morgans commented:

WTC’s FY25 investor day highlighted the group’s progress and broader outlook for a number of key near to medium-term growth initiatives, which in our view continues to see the group in a solid position to drive value.

This month, Citi reiterated its buy rating on Wisetech shares with a price target of $109.15.

Jarden reiterated its hold rating and raised its price target from $73 to $74.

The post 3 ASX 200 shares trading at 52-week lows: Are they a buy? appeared first on The Motley Fool Australia.

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• How much could $1,000 in WiseTech shares be worth in 3 years?
• 2 stocks that could turn $100,000 into $1 million by 2035
• Down 40% to 50%! Why I think these ASX growth shares are strong buys
• This ASX 200 tech stock just hit a 2-year low. Is it worth a closer look?

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 Goldman Sachs Group, Macquarie Group, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortunately in the current environment, there are lots of ASX gold stocks for Australian investors to choose from on the local share market.

One that Bell Potter thinks has just become an even stronger buy is named below. Let’s see why the broker has just upgraded its valuation.

Which ASX gold stock?

The gold miner that Bell Potter is bullish on is Alkane Resources Ltd (ASX: ALK).

Following its merger with Mandalay Resources last year, the company owns the Costerfield gold-antimony mine in Victoria, the Björkdal gold mine in Sweden, and the Tomingley Gold Operation in Australia.

Bell Potter was very pleased with the ASX gold stock’s performance in the second quarter, with its costs and production slightly better than expected. It said:

ALK released its December 2025 quarterly report, for which group production and costs tracked ahead [of] our forecasts and guidance. Group production was 43,633oz gold equivalent (Aueq) inclusive of 267t antimony (Sb) for the first full quarter of consolidated production from the merged ALK and Mandalay assets. This compared with our forecast of 41,291oz Au plus 227t Sb and guidance of ~42koz Aueq for the full quarter.

All-In-Sustaining-Costs (AISC) were A$2,739/oz, marginally below our forecast of A$2,780/oz and within guidance A$2,600-A$2,900/oz. Production improved at all assets, with higher grades a feature. AISC were well controlled and benefitted from a high by-product credit contribution on higher antimony prices.

Overall, the broker believes management deserve a lot of credit for this strong performance. It adds:

This is a very strong quarterly report and a great first full quarter of operations and integration for ALK. The improved operational performances across the asset portfolio through a period of change are a credit to ALK, from its mine operators to top level management.

Time to buy

According to the note, the broker has retained its buy rating on this ASX gold stock with an improved price target of $1.95 (from $1.40). Based on its current share price of $1.59, this implies potential upside of 23% for investors over the next 12 months.

This valuation upgrade has been driven largely by significant increases to its earnings per share (EPS) estimates to reflect higher gold price forecasts. It explains:

EPS changes in this report are: FY26: +37%; FY27: +69% and FY28: +58%, largely driven by our increased gold price forecasts. ALK offers multi-mine gold and antimony exposure, a strong balance sheet and platform focussed on organic and inorganic growth options. With this update our NPV-based target price increases 39%, to $1.95/sh,.

The post Why Bell Potter just upgraded its valuation of this ASX gold stock by 39% appeared first on The Motley Fool Australia.

More reading

• Which gold miner has just reported record production results?
• Up 177% in a year, why is this ASX 300 gold stock leaping higher again on Friday?

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 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 Vulcan Energy Resources Ltd (ASX: VUL) share price is under pressure on Friday following the release of the company’s latest quarterly update.

At the time of writing, the lithium developer’s shares are down 3.36% to $4.03. This is despite the company outlining what it described as one of the most important periods in its history.

So, what did investors make of it? Let’s unpack.

A transformational quarter for Vulcan

According to the release, Vulcan secured a comprehensive 2.2 billion euro (roughly $3.9 billion) financing package. The funds will be used to support construction of the company’s phase one of its Lionheart Project in Germany’s Upper Rhine Valley.

That package allowed Vulcan’s board to approve a positive final investment decision (FID) in December, marking a major turning point. With that decision in place, Lionheart has moved out of development and into full execution mode.

Phase one Lionheart targets annual production of 24,000 tonnes of battery grade lithium hydroxide, alongside renewable geothermal power and heat. Vulcan is positioning the project as Europe’s first fully integrated, carbon-neutral lithium supply chain.

Construction activity ramps up

During the quarter, Vulcan commenced construction of its integrated geothermal lithium extraction plant in Landau. Development also progressed at its central lithium processing plant in Frankfurt Hochst.

Vulcan finished drilling at the LSC-1 site, and the results showed the wells are producing as expected. A follow-up well drilled in January confirmed those results, with testing equipment running at maximum capacity.

On the commercial front, Vulcan signed an offtake agreement with Glencore covering between 36,000 and 44,000 tonnes of lithium hydroxide over an initial 8-year period.

A look at the balance sheet

Vulcan’s quarterly cash flow report highlights just how significant the funding milestone was.

The company ended the December quarter with cash and cash equivalents of 523 million euros. During the period, Vulcan recorded net financing inflows of more than 508 million euros, reflecting proceeds from equity issues tied to the phase one financing package.

The company is well funded to progress construction, even as operating and investing cash outflows remain elevated during the build-out.

So why are shares falling?

Today’s share price reaction appears more about short-term expectations rather than fundamentals.

Vulcan shares rallied strongly in anticipation of the FID and financing outcome. With those key approvals now behind it, some investors appear to be taking profits while others reassess the next phase.

It also reflects a shift in focus from milestones to execution, with investors now watching closely for delivery risk, cost control, and timeline certainty as construction activity accelerates.

The post Why is the Vulcan share price down today? appeared first on The Motley Fool Australia.

More reading

• Up 10% in a month. Is this ASX lithium stock finally back on track?
• Bell Potter names the ASX lithium stocks to buy

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.

For a lot of investors, the real appeal of the share market is not just watching a portfolio value move around on a screen. It’s the idea of generating a reliable income stream that can grow over time.

That’s where ASX dividend shares tend to shine. Unlike savings accounts or term deposits, shares offer the potential for two sources of return. There is income through dividends, and there is capital growth as the underlying businesses expand. On top of that, Australian investors benefit from franking credits, which can materially lift after-tax returns for many people.

With that in mind, let’s look at what a $300,000 ASX share portfolio could realistically deliver in dividends, using two different dividend yield scenarios.

A conservative income approach with blue chips

One way I could build an income-focused portfolio is to lean on large, established ASX shares with long dividend track records. Think businesses like BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), or Transurban Group (ASX: TCL).

These types of companies may not always offer the highest yields on the market, but they tend to provide a balance of income stability, resilience across cycles, and dividend growth over time.

A diversified portfolio of high-quality blue chips can often deliver a dividend yield of around 4% without taking on excessive risk. Importantly, much of that income is typically franked, which boosts its value for Australian investors.

Chasing higher yield comes with trade-offs

It is possible to push the income higher. A 5% dividend yield from an ASX portfolio is achievable, but it usually requires tilting toward higher-yielding sectors and stocks.

This might include infrastructure, REITs, energy infrastructure, or companies whose share prices have fallen, lifting the headline yield. While that can look attractive on paper, it comes with trade-offs.

Higher yields are not always sustainable. Sometimes they reflect genuine value. Other times, they are a warning sign that earnings are under pressure or that a dividend cut is a real possibility. This is what investors often refer to as a value or yield trap.

That doesn’t mean a 5% yield strategy is wrong. It just means the margin for error is smaller, and portfolio construction becomes more important.

So, how much income are we really talking about?

Let’s now answer the key question.

At a 4% dividend yield, a $300,000 ASX share portfolio would generate around $12,000 per year in dividends. That works out to roughly $1,000 per month before franking credits.

At a 5% dividend yield, the same portfolio would generate about $15,000 per year in dividends, or roughly $1,250 per month before franking credits.

Foolish Takeaway

The key takeaway for me is that dividend income from ASX shares is flexible. Investors can dial risk up or down depending on their needs, time horizon, and tolerance for volatility.

A $300,000 portfolio is not about getting rich overnight. But when invested thoughtfully, it has the potential to deliver a growing income stream that beats cash over time, while also offering capital growth along the way.

That combination is what I think makes ASX dividend investing so compelling for long-term investors.

The post How much could a $300,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

More reading

• Why Bell Potter just upgraded its valuation of this ASX gold stock by 39%
• Why is the Vulcan share price down today?
• Brokers name 3 ASX shares to buy today
• 4 ASX mining shares just re-rated by Morgans
• 4DMedical shares jump again today. Here’s what investors liked

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 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.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Iluka Resources Ltd (ASX: ILU)

According to a note out of Macquarie, its analysts have upgraded this mineral sands producer’s shares to an outperform rating with a reduced price target of $6.50. The broker made the move on valuation grounds following significant share price weakness. And while the broker acknowledges that its guidance for FY 2026 and sizeable one-off charge were disappointing, they are not enough to deter the broker from recommending it. Especially with its revenue coming in stronger than expected during the fourth quarter. The Iluka Resources share price is trading at $5.44 on Friday afternoon.

Liontown Ltd (ASX: LTR)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this lithium miner’s shares with a trimmed price target of $2.42. The broker highlights that Liontown’s quarterly update was softer than expected for production and revenues, but that its unit costs were better than expected. Bell Potter points out that Liontown will be ramping up and de-risking its Kathleen Valley lithium project over the next 18 months. And with the current lithium price strength, it believes the company can rapidly generate cash to support incremental production expansions and shareholder returns. Additionally, it points out that Kathleen Valley is highly strategic in terms of scale, long project life, and location in a tier-one mining jurisdiction. The Liontown share price is fetching $1.88 at the time of writing.

Mineral Resources Ltd (ASX: MIN)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this mining and mining services company’s shares with an improved price target of $70.00. This follows the release of a quarterly update which was stronger than Bell Potter was expecting. The broker was also pleased to see that Mineral Resources is upgrading its spodumene production to take advantage of recent strength in lithium prices. In addition, it notes that Mineral Resources’ balance sheet is deleveraging, which bodes well for the future. The Mineral Resources share price is trading at $57.83 on Friday.

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

More reading

• 4 ASX mining shares just re-rated by Morgans
• Is the Mineral Resources share price going to hit $70.00 this year?
• 5 things to watch on the ASX 200 on Friday
• Why Liontown shares could continue to roar higher
• Why Brainchip, Galan Lithium, Iluka, and Ora Banda shares are tumbling today

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

ASX mining shares are all the rage at the moment as many commodity prices continue to roar higher, particularly gold.

In 2025, the materials sector, which incorporates mining stocks, soared 32% and produced total returns, including dividends, of 36%.

It outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 4:1.

And the momentum is continuing in 2026, with materials up 9.5% compared to the ASX 200, up 1.6%.

Top broker Morgans has just re-rated a bunch of ASX mining shares, so let’s see what they had to say about these four names.

Regis Resources Ltd (ASX: RRL)

Morgans maintained a hold rating on this ASX gold mining share after the company released its latest quarterly report.

However, the broker raised its 12-month share price target significantly from $6.17 to $8.05 due to the runaway gold price.

The Regis Resources share price is $8, down 6.2% on Friday.

Morgans said:

RRL delivered a strong 2Q26, with group gold production of 96.6koz Au supporting record quarterly cash and bullion generation of A$255m, lifting the balance to A$930m.

The result was underpinned by stable performance at Duketon, a sharp uplift in gold sales at Tropicana and continued strength in spot gold prices.

The gold price went close to US$5,600 per ounce this week, and has risen by more than 20% in January alone.

Liontown Ltd (ASX: LTR)

Morgans kept its trim rating on Liontown shares after the lithium producer filed its second-quarter update this week.

The broker increased its 12-month share price target substantially from 89 cents to $2.

The Liontown share price is currently $1.89, down 8%.

The broker said:

2Q26 result beat expectations on production and costs.

Balance sheet de-risked following LG Energy Solution’s election to convert its US$250m convertible notes into equity, removing debt and strengthening flexibility despite dilution.

Maintain TRIM with much of the near-term upside factored into its share price.

Mineral Resources Ltd (ASX: MIN)

Morgans maintained its hold rating on Mineral Resources shares after the miner released its second-quarter report.

But it also raised its 12-month share price target from $47.40 to $66.

The ASX mining share is trading at $58.68, down 3.8% on Friday.

The broker commented:

2Q26 result beat expectations across all divisions.

Lithium optionality increases in the current pricing environment, with potential to increase volumes at Mt Marion and Wodgina and re-start Bald Hill.

Deleveraging has accelerated. Net debt now sits at A$4.9bn (A$5.4bn last quarter).

Valuation appears full at 7x ND/EBITDA but strong execution, balance sheet momentum and a supportive commodity backdrop underpins ongoing exposure.

True North Copper Ltd (ASX: TNC)

Morgans has initiated coverage on this ASX copper mining share with a speculative buy rating and a price target of $1.20 per share.

The True North Copper share price is currently 58 cents, down 3.3%.

True North Copper provided a mineral resource update on its Cloncurry Copper Project this week and released its quarterly activities report today.

Morgans said:

We initiate coverage on TNC following a period of successful exploration led growth, project planning and renewed corporate strategy which importantly avoids early production commitments and debt-funded development, materially reducing financial risk relative to prior operating models employed by previous management.

TNC’s strategy is structured around three pillars: develop, grow, discover with Mt Oxide providing district-scale exploration leverage through the Vero, Aquila and other emerging discoveries, and Cloncurry offering optionality around near-term development and cashflow generation.

ASX copper mining shares surged yesterday after the copper price reached a new record above US$6.30 per pound.

The post 4 ASX mining shares just re-rated by Morgans appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Is the Mineral Resources share price going to hit $70.00 this year?
• 5 things to watch on the ASX 200 on Friday
• Why Liontown shares could continue to roar higher
• This ASX lithium stock is being sold off today. Here’s why

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 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.

4DMedical Ltd (ASX: 4DX) shares are trading higher on Friday following two announcements released at the market open. These included the company’s quarterly update and a fresh commercial development.

At the time of writing, the 4DMedical share price is up 6.12% to $3.64.

The move comes as investors digested positive signs of commercial progress and steady operational momentum.

Here is what stood out.

CT:VQ commercial rollout gathers pace

The key highlight from today’s update is that CT:VQ has moved beyond regulatory approval and into full commercial execution.

4DMedical describes CT:QV as ‘non‑contrast post‑processing technology that transforms routine, chest CTs into quantitative, lobar ventilation (V) and perfusion (Q) maps—without injected contrast or radioisotopes. Delivered via software-as-a-service, results are returned directly into the radiology workflow for interpretation alongside the source CT images.’

During the December quarter, CT:VQ continued to gain traction across leading US academic medical centres. The technology is now in use at Stanford, the Cleveland Clinic, UC San Diego Health, the University of Miami, and the University of Chicago Medicine.

In a separate announcement released this morning, 4DMedical confirmed that UChicago Medicine has expanded its partnership to include commercial deployment of CT:VQ. This makes it the 5th top-tier US academic centre to adopt the product within 5 months of FDA clearance.

Management highlighted that these early adopters act as high-value reference sites, supporting broader US commercial rollout and clinician adoption.

Philips partnership strengthens revenue visibility

Another important driver is the expanding distribution agreement with Philips.

Under the revised arrangement, Philips will distribute CT:VQ across healthcare systems in the United States and Canada. The minimum contractual order commitment is roughly $15 million over 2 years.

This provides 4DMedical with improved revenue visibility as CT:VQ scales, while leveraging Philips’ established sales network to accelerate market penetration.

Health Canada regulatory approval during the quarter further expands the addressable market and opens the door to commercial sales across Canada.

Operating momentum continues to build

Underlying SaaS revenue grew 31% in H1 FY26, with customer receipts up 16% quarter on quarter to $1.5 million. The company delivered SaaS products across 430 sites globally, up 43% year on year, and processed 77,560 scans in Q2, an increase of 115%.

Net operating cash outflows declined 21% quarter on quarter to $9.8 million, reflecting ongoing cost discipline as revenue scales.

A well-funded balance sheet

4DMedical ended the quarter with $56.8 million in cash, rising to a pro forma balance of $206.2 million following a $150 million institutional placement completed in January.

Management estimates the company has around 5.8 quarters of funding available at current burn rates. This gives it ample runway to execute its US commercial strategy.

Foolish takeaway

Today’s share price move reflects growing confidence that CT:VQ is shifting from development toward execution.

Adoption by leading US hospitals and a strengthened partnership with Philips are supporting the rollout.

4DMedical also enters 2026 with a well-funded balance sheet.

The post 4DMedical shares jump again today. Here’s what investors liked appeared first on The Motley Fool Australia.

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• Why 4DMedical and these ASX shares are up 200%+ in just a year
• 4DMedical shares crash 20% this week: Should investors cut their losses on the once-booming stock?
• Why 4DMedical, ARB, Inghams, and Qoria shares are tumbling today
• Up more than 800% in a year. Why this ASX medical tech stock just hit an all-time high

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.

2025 was a year of extremes for Commonwealth Bank of Australia (ASX: CBA) shares. And it came in two halves.

The first half of 2025 saw the incredible run that this ASX 200 bank stock began in 2024 continue with gusto. Between January and June, Commonwealth Bank soared anther 20% or so, topping out at a new all-time record high of $192 a share mid year. But ever since then, investors have been running out of puff.

By the end of the year, CBA had fallen to $160.57 a share. The slump has continued into 2026, with CBA shares commanding a price of just $149.13 a share at the time of writing. That price represents a 22.3% drop from the bank’s record high in June.

CBA’s descent has also resulted in an ignominious loss of its status as the largest stock on the S&P/ASX 200 Index (ASX: XJO). As we documented this week, BHP Group Ltd (ASX: BHP) has nabbed CBA’s crown that it had held for about 18 months.

So one of CBA’s more forgettable periods in recent years.

But what of the future? Where might CBA shares be five years from today?

Of course, it’s impossible to know where any index, let alone an individual stock, will be at any given point in the future. But making a five-year prediction is particularly daunting.

Where will CBA shares be in 2031?

Saying all of that, I have an idea. As I’ve written about before, I think the performance of CSL Ltd (ASX: CSL) is a canary in the coalmine or sorts for CBA.

Over the five years to 2020, CSL went on one of the ASX’s most spectacular runs. The company jumped from about $100 a share in 2015 to the all-time high of $342.75 we saw in early 2020. That run transformed CSL into one of the ASX’s largest stocks. However, sentiment got carried away. Investors priced in far too much growth and were left holding the bag. CSL shares have, to this day, never reclaimed that all-time high and currently sit at $183.53. It’s a classic reversion to the mean, and I think this is what lies in wait for CBA shares.

As it stands today, CBA trades on a price-to-earnings (P/E) ratio of 24.7, well above what most banks trade at. And not just on the ASX, but around the world. Further, this lofty valuation has dampened the appeal of what draws most investors to an ASX bank stock in the first place – the dividend yield. As it currently stands, CBA trades on a yield of 3.25%. That’s well below what investors used to expect from an ASX bank, and also substantially under what the other ASX banks will pay out right now.

This bank is not growing at what one could call a rapid rate, either. Last year’s full-year earnings had CBA report a 4% rise in cash net profits to $10.25 billion. I would be shocked if we see anything materially better over the next few years, given CBA’s size and maturity.

Foolish takeaway

So all in all, I believe CBA shares will be around the same valuation they are today in five years’ time. And that’s an optimistic projection. I wouldn’t be surprised to see CBA ‘do a CSL’ and go backwards either. At the end of the day, the growth that would justify a higher CBA share price going forward just isn’t there, and the bank will probably revert to its own mean given enough time. I could be wrong, of course. But I wouldn’t be buying CBA shares today regardless.

The post Where will CBA shares be in 5 years? appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks I’m avoiding this week
• Forget CBA shares and buy this ASX financial stock
• Is the RBA about to increase interest rates? Here’s the latest forecast from CBA
• How to build income on the ASX without losing sleep at night
• Should I sell my CBA shares in 2026?

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

We’re closing off the first month of 2026, which means all eyes are still on companies tipped to be the top ASX stock climbers this year. While there are some top Australian stocks I’d buy right now with any spare cash, there are also some I’d avoid.

Here are three of them.

Commonwealth Bank of Australia (ASX: CBA) 

CBA shares enjoyed a strong share price rally in mid-2025, with the ASX stock peaking at an all-time high of $192 a piece in June. But strong headwinds sent the share price plummeting. At the time of writing, the share price has dropped 22.24% from that peak price.

And I think the price declines could keep on going. In fact, I think it’s possible the shares could drop below $100 by the end of the year. The problem is, CBA’s share price is overvalued relative to its peers, and its premium price tag isn’t supported by its earnings or business fundamentals. 

At the time of writing, CBA’s current price-to-earnings (P/E) ratio is 24.86. This is much higher (and therefore costs investors more) than other major banks. I’ll be staying clear of the banking major until I see a turnaround.

PLS Group Ltd (ASX: PLS) 

The lithium miner’s shares have had an incredible run during the first month of the year, pushed higher by a rally in lithium prices and demand. The business has gone from strength to strength over the past 12 months, with strong production numbers and revenue upticks.

But I’m concerned that, after such a strong increase, we could see some share price volatility ahead for PLS. I expect the price to cool in the coming months. And while I think we’ll see some more upside much further down the line, I’m going to sit out on this one for now. 

Evolution Mining Ltd (ASX: EVN) 

Evolution Mining has been riding the wave of the 2026 gold price rally. The price of gold rocketed to an all-time high this week, surpassing the US$5,300 per ounce barrier. But I think the ASX miner’s stock price peak is close, or potentially has already passed. Ultimately, the current share price looks overvalued to me, and I expect a correction in the near future.

I’m also wary that the ASX 200 gold miner is heavily reliant on higher-than-ever gold prices. That means that any pullback could send the shares crashing down. I wouldn’t be shocked if the miner’s shares halve in value this year.

The post 3 ASX stocks I’m avoiding this week appeared first on The Motley Fool Australia.

More reading

• Where will CBA shares be in 5 years?
• Up 309% since June, why is the PLS share price leaping higher again on Friday?
• Forget CBA shares and buy this ASX financial stock
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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.

When it comes to finding Australian stocks to buy, I’m more interested in long-term compounding than short-term trades.

Two stocks that I think fit the bill for long-term investments are discussed in this article. Here’s why I’d feel comfortable owning them for the long haul.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the most consistent compounders on the ASX, and I think its recent performance reinforces why it continues to deserve a premium valuation.

The enterprise software company has now delivered 16 consecutive years of record profit, and its shift to the SaaS+ model is proving to be a genuine differentiator rather than just a marketing label. Annual recurring revenue (ARR) climbed 18% in FY25 to $554.6 million, with management now targeting more than $1 billion in ARR by FY30.

What stands out to me is the quality of that revenue. More than 90% of total revenue is now recurring, churn sits around 1%, and net revenue retention remains an impressive 115%. That combination gives TechnologyOne a high degree of earnings visibility and pricing power.

The UK is also becoming a meaningful growth engine. UK ARR grew 49% in FY25, driven by wins in local government and higher education. I think this shows that the product travels well beyond Australia. When you combine that with continued investment in R&D, in-product AI, and the expansion of its SaaS+ ecosystem, I think TechnologyOne still has a long runway ahead.

Seek Ltd (ASX: SEK)

Seek doesn’t get talked about as much as it once did, but I wouldn’t let that put you off.

At its core, this Australian stock remains the dominant employment marketplace in Australia and New Zealand, with a highly profitable domestic business that continues to generate strong cash flow. That cash flow has been used to build exposure to online employment platforms across Asia and Latin America, regions where long-term workforce formalisation and digital hiring trends remain intact.

While short-term hiring conditions can ebb and flow, the structural shift toward online recruitment hasn’t changed. Seek’s investments in platform technology, data, and employer tools are designed to improve matching efficiency, not just volume. Over time, that should support higher yields per job ad and stronger returns when labour markets normalise.

I also like that Seek has been more disciplined in recent years, simplifying its portfolio and focusing on markets where it can be a clear leader. That discipline matters in a business that operates across multiple geographies and economic cycles.

Foolish takeaway

Both of these Australian stocks share a trait I value highly: they are not reliant on perfect conditions to succeed. TechnologyOne benefits from mission-critical software with deeply embedded customers, while Seek operates platforms that become more valuable as economies digitise and hiring rebounds.

If I were adding to my portfolio today with an eye on the next several years rather than the next few months, these are two Australian stocks I’d be very comfortable owning.

The post 2 Australian stocks I would buy in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.