Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares have already delivered stockholders some smashing gains in 2026.

And both S&P/ASX 200 Index (ASX: XJO) energy stocks are outperforming again today.

In morning trade on Monday, Santos shares are swapping hands for $8.68 apiece, up 1%. Woodside shares are trading for $33.14 each, up 0.9%.

For some context, the ASX 200 is just about flat at this same time.

Taking a step back, the ASX 200 is up a slender 0.2% so far in 2026. That compares to the 41.2% year-to-date gains for Santos stock and the 40.1% gains posted by Woodside.

Atop those capital gains, both ASX 200 energy stocks have paid (or shortly will pay) two dividends this calendar year, making them appealing passive income plays.

Santos shares currently trade on a 3.5% unfranked dividend yield, while Woodside shares trade on a fully-franked 4.9% dividend yield. That equates to a 7% yield grossed up.

What’s been sending the ASX 200 energy stocks flying?

The Aussie oil and gas giants have been clear beneficiaries of surging global oil prices in the wake of the Iran war.

Indeed, on 1 January, Brent crude oil was trading for a mere US$60.85 per barrel. The oil price then topped US$118 per barrel in April, before sinking back to US$72.01 per barrel in July.

But oil has been on the rise again since then, and Brent surged back to US$107.36 per barrel over the weekend as the Middle East conflict heated back up.

That means the vital Strait of Hormuz oil shipping route is unlikely to reopen for normal business anytime soon.

And with Iranian-backed Houthi forces increasing their attacks over the weekend and threatening to block another Red Sea shipping chokepoint, oil supplies could remain restricted for some time.

While that’s bad news for inflation and the economy, it could support further gains in Santos and Woodside shares, as well as boost their next round of dividends.

Why Santos and Woodside shares still look like a good buy

Despite their strong outperformance already this year, I think Santos and Woodside shares are well-placed to keep outperforming in the year ahead.

Just how well they perform will depend to a significant extent on global oil prices.

On that front, Commonwealth Bank of Australia (ASX: CBA) head of commodities Vivek Dhar said (quoted by the Australian Financial Review):

US tolerance to delay any peace deal with Iran … rising Chinese imports and lower supply outside the Middle East in 2026 indicate that Brent oil futures may stay above US$100 a barrel for longer than it did in late July.

RBC Capital Markets head of commodity strategy Helima Croft added, “Maritime traffic … is gravely imperilled by the Houthi advances, bringing into focus our high oil price forecast.”

Croft noted that the latest attacks had “reduced the efficacy of one of the key oil release valves for the six-month Iran war”.

Croft said that if the conflict between the Houthis and Saudi Arabia escalated, it could see the oil price hit US$118 per barrel in 2026 and potentially reach US$130 per barrel in 2027.

At those levels, both ASX 200 energy stocks would see their profit margins grow, likely supporting higher dividends and spurring further increases in the Santos and Woodside share price.

The post Why I’d buy Santos and Woodside shares today appeared first on The Motley Fool Australia.

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• If I buy $4,000 of Woodside shares, how much dividend income will I receive?
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• Buy, hold, sell: NextDC, South32, CBA shares

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.

Qantas Airways Ltd (ASX: QAN) shares have had a tough run on the market recently.

The shares are trading around $9.01 today, well below their 52-week high of $11.39.

I think that weakness has made the valuation more interesting, particularly for investors prepared to look beyond the next few months.

Here’s why I would invest $10,000 in Qantas shares today.

The underlying business still looks strong

Qantas remains in a powerful position in Australian aviation.

Its domestic network gives the group strong exposure to business and leisure travel, while Jetstar provides a lower-cost option for customers who are more sensitive to price.

I also like the contribution from Qantas Loyalty. Its Frequent Flyer program gives the company another way to earn from its customer base outside the airline itself, while also encouraging passengers to remain within the wider Qantas ecosystem.

Then there is the fleet renewal program and Project Sunrise, which should gradually modernise the airline and expand what Qantas can offer on long-haul routes.

None of those opportunities depends on the share price recovering quickly. They are reasons I think the business itself can keep improving over the coming years.

Near-term pressure would not put me off

One issue I would watch closely is the oil price. Fuel is a major expense for airlines, so a sustained rise in oil prices could put pressure on Qantas’ margins in the near term.

That could make earnings more volatile than investors would like and is one risk I would keep in mind at the current price.

I would not ignore that risk. At the same time, I still think Qantas is well placed to deliver solid earnings over the next few years. The company has significant scale, a strong domestic position, multiple brands, and several sources of revenue beyond simply selling airline seats.

For me, that gives the business more resilience than the share price currently seems to imply.

The valuation looks attractive

I think Qantas shares are looking attractive at current prices.

According to CommSec, consensus forecasts point to earnings per share of $1.04 in FY27, rising to $1.30 in FY28 and $1.50 in FY29.

At $9.01, Qantas is trading on a PE ratio of roughly 8.7 times forecast FY27 earnings.

If the FY29 estimate is achieved, that multiple falls to around six times earnings.

I think that looks cheap enough to compensate for some of the risks that come with owning an airline.

Investors may also receive a growing stream of dividends while waiting.

Consensus forecasts suggest dividends per share of 39.6 cents in FY27, 43.1 cents in FY28, and 49.6 cents in FY29.

At today’s share price, those estimates represent forward dividend yields of roughly 4.4%, 4.8%, and 5.5%, respectively.

Foolish takeaway

I would be comfortable investing $10,000 into Qantas shares at current levels.

The airline industry will always bring volatility, but Qantas has several strong businesses underneath the headline brand and a clear path to higher earnings if current expectations are met.

At around $9.01, I think the shares offer enough value to make that risk worthwhile.

The post Why I’d invest $10,000 into Qantas shares today appeared first on The Motley Fool Australia.

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• Looking to bank the final Qantas dividend? You’d better hurry!
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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 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.

Shares in Telix Pharmaceuticals Ltd (ASX: TLX) were trading more than 5% higher on Monday after the company secured a key approval from the US Food and Drug Administration.

New drug gets the regulator’s tick

The company said in a statement to the ASX that the FDA had approved its new drug application for Pixclara, an amino acid positron emission tomography (PET) drug for imaging gliomas (brain cancer).

Telix shares traded as high as $17.65 before settling back to be 5.4% higher at $16.52.

RBC Capital Markets said it was positive for the company. The broker has a $19 price target on Telix shares.

The broker said:

Telix has announced the FDA has approved Pixclara, the company’s imaging agent for use in characterising recurrent or progressive brain cancer (glioma). Pixclara is the first FDA-approved targeted amino acid PET imaging agent for glioma in the United States. Importantly, this demonstrates the company’s ability to overcome the initial setback from the Complete Response Letter and sets the foundation for the company’s complementary prospective therapeutic asset, TLX-101-Tx, as well as further indication expansion within brain metastases.

RBC estimated the total addressable market for Pixclara’s current use to be US$140 to US$160 million per year.

The broker added:

Assuming a penetration rate of ~60% in FY35, we estimate Pixclara’s first indication would be valued at $0.56/share with further upside potential of $0.62/share if Pixclara achieves ~80% penetration. If the company is successful in securing approval to expand Pixclara’s indication to include brain metastases, we estimate this could potentially add as much as ~$3.85/share to our price target.

Large unmet need

Telix said gliomas were the most common form of central nervous system cancer, accounting for approximately 30% of all brain and central nervous system tumours and 80% of all malignant brain tumours.

The company said about 24,000 new glioma cases were diagnosed each year in the US.

Telix Precision Medicine Chief Executive Officer Kevin Richardson said:

FDA approval of Pixclara will enable broad access in the U.S. to FET-PET imaging, which is already recognized in international clinical practice guidelines. As the first FDA-approved PET imaging drug for glioma, Pixclara will provide physicians in the U.S. with more certainty in their diagnoses and greater confidence in their treatment planning for patients.

Pixclara is a small molecule targeting compound that is labelled with a diagnostic radioisotope, fluorine-18.

After administration into the bloodstream, Pixclara targets membrane transport proteins known as L-type amino acid transporters 1 and 2.

Once bound, energy emissions from the radioisotope can be detected by a PET scanner.

Telix is valued at $5.32 billion.

The post Why are Telix Pharmaceuticals shares charging higher today? appeared first on The Motley Fool Australia.

More reading

• Telix Pharmaceuticals shares: FDA approves Pixclara brain cancer drug
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Motley Fool contributor Cameron England has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.