The Australian economy has a unique profile weighted towards specific sectors. One great way to capture these is by investing in thematic ASX ETFs. 

When you look at the S&P/ASX 200 Index (ASX: XJO), you notice it is heavily weighted towards sectors like financials (big banks) and materials/resource giants. 

In fact, these two sectors make up more than half of the ASX 200 in terms of market cap.

While it’s important to have a diversified portfolio, investing in these markets can also capture strong returns when they outperform. 

If you are looking to ride the returns of Australia’s largest sectors, here are some thematic ASX ETFs to consider. 

BetaShares S&P/ASX 200 Resources Sector ETF (ASX: QRE)

This ASX ETF offers exposure to the largest ASX-listed companies in the resources sector, including BHP, Rio Tinto, Woodside Petroleum and more.

Investors should be aware it is heavily weighted towards BHP Group (ASX: BHP) which makes up 33% of the fund. 

In total, it is made up of 43 holdings. 

A bet on Australian resources over the last 10 years has proved a strong investment. 

This ASX ETF is up more than 200% since January 2016. 

This includes a rise of more than 30% in the last 12 months. 

VanEck Vectors Australian Banks ETF (ASX: MVB)

Australian banks make up a massive part of the economy thanks to the dominance of the big four. 

This ASX ETF from VanEck offers a portfolio of ASX-listed banks and financial institutions in one trade. 

The fund is made up of 7 holdings: 

• Commonwealth Bank of Australia (ASX: CBA) 
• National Australia Bank Limited (ASX: NAB)
• Westpac Banking Corporation (ASX: WBC) 
• Australia And New Zealand Banking Group (ASX:ANZ) 
• Macquarie Group Limited (ASX: MQG)
• Bendigo and Adelaide Bank Limited (ASX: BEN)
• Bank of Queensland (ASX: BOQ)

The fund has an almost equal weighting of 20% each for the big four banks. 

Essentially, these four make up 80% of the fund, with Macquarie representing a 17.5% weighting and the final two, smaller banks combining for a 2.6% weighting. 

The fund has risen 66% in the last 5 years. 

VanEck Vectors Australian Property ETF (ASX: MVA)

While real estate isn’t one of the biggest sectors on the ASX, it remains a vital component of the Australian economy due to its role in investment, employment, and housing.

This ASX ETF from VanEck gives investors exposure to a diversified portfolio of Australian REITs.

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

This fund from VanEck is made up of 13 holdings, and includes a 4% dividend yield.

It has risen 13% over the last year. 

The post Best ASX ETFs to target winning Aussie sectors in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group and National Australia Bank. 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 Bendigo And Adelaide Bank and Macquarie 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.

The S&P/ASX 200 Index (ASX: XJO) increased by 6.8% and provided total returns, including dividends, of 10.32% last year.

Industrials was the second-best performer among the 11 ASX 200 market sectors, rising 10.2% with total returns of 13.98%.

Let’s check out the top performing ASX 200 industrial shares of the year.

5 best ASX 200 industrial shares for capital growth

These were the five best-performing shares for price growth in 2025.

1. DroneShield Ltd (ASX: DRO)

ASX 200 defence share Droneshield leapt 300% to close at $3.08 on 31 December.

That was actually a major retreat on the industrial share’s 52-week high of $6.61.

Droneshield is riding the wave of increased 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. 

2. Austal Ltd (ASX: ASB)

Fellow ASX 200 defence share, Austal, increased 116% to close at $6.69 per share on 31 December.

Austal’s 52-week high last year was $8.60 per share.

Austal is Australia’s largest defence exporter.

Its clients include the Australian Navy and the US Navy, and it owns shipyards in the US, Australia, Vietnam, and the Philippines.

Austal announced several new contracts last year, including a $1.029 billion design and construct contract for the Australian Army.

In December, Treasurer Jim Chalmers and the Foreign Investment Review Board (FIRB) approved an application lodged by a long-time suitor for Austal to buy up to a 19.9% stake.

South Korean shipbuilder Hanwha Corp is a Fortune 500 company the offered to buy Austal for $2.825 per share in cash in 2024.

3. Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price ripped 89% to close the year at $26.51. Its 52-week high was $27.83.

Monadelphous provides engineering, construction, and maintenance services in the resources, energy, and industrial sectors.

At the company’s AGM in November, chair Rob Velletri said Monadelphous had secured about $2.3 billion in new contracts and extensions in FY25, which was a record, plus another $570 million since the end of the financial year.

The following month, Monadelphous announced a $250 million contract with Rio Tinto Ltd (ASX: RIO) for it Brockman Syncline 1 iron ore development.

4. Silex Systems Ltd (ASX: SLX)

The Silex Systems share price soared 71% to finish the year at $8.63.

The industrial share’s annual high was $10.85 per share.

The nuclear technology developer ascended into the benchmark index in the December rebalance.

My colleague, Leigh Gant, describes Silex Systems as “one of the most fascinating energy technology stories on the ASX“.

The company is working on one of the most advanced enrichment processes in the world.

Its proprietary SILEX laser system separates uranium isotopes more efficiently than traditional centrifuge methods.

The system recently gained TRL-6 validation, and could redefine how nuclear fuel is produced in the future.

5. Ventia Services Group Ltd (ASX: VNT)

The Ventia Services share price rose 65% to close 2025 at $5.95 per share. The 52-week high was $6.05.

Ventia is a leading infrastructure maintenance services provider in Australia and New Zealand.

Ventia announced several new contracts in 2025.

This included a $100 million NSW Whole‑of‑Government cleaning contract for Western Sydney, with a potential one-year extension.

During the August earnings season, Ventia reported a 19.4% lift in the value of work in hand to a record $20.6 billion for 1H FY25.

The post 5 best ASX 200 industrial shares of 2025 appeared first on The Motley Fool Australia.

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• Why Andean Silver, CBA, Life360, and Silex shares are dropping today

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 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark index fell 0.5% to 8,682.8 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rise on Wednesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.5% higher this morning. In late trade in the United States, the Dow Jones is up 1%, the S&P 500 is up 0.65%, and the Nasdaq is up 0.6%.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$57.11 a barrel and the Brent crude oil price is down 1.75% to US$60.68 a barrel. This was driven by a lower supply outlook and Venezuelan output uncertainty.

BHP and Rio Tinto on watch

It could be a good session for BHP Group Ltd (ASX: BHP) shares and Rio Tinto Ltd (ASX: RIO) shares on Wednesday. Overnight on the NYSE, both mining giants saw their US-listed shares rise over 2% to new 52-week highs. This bodes well for the performance of their ASX-listed shares during today’s session.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price pushed higher again. According to CNBC, the gold futures price is up 0.85% to US$4,490.6 an ounce. The precious metal neared a record high after geopolitical risks boosted demand for safe haven assets.

Buy Aeris shares

Bell Potter thinks that Aeris Resources Ltd (ASX: AIS) shares are in the buy zone. The broker has retained its buy rating on the copper miner’s shares with an improved price target of 82 cents (from 65 cents). It said: “AIS is a copper-dominant producer, with its near-term outlook highly leveraged to the copper price, increasing production at Tritton and gold production at Cracow. Tritton is an attractive corporate target, in our view, with upside to our Target Price supported by low valuation multiples. Our Target Price lifts 26% to $0.82/sh. We maintain our Buy recommendation.”

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

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

Defensive shares can be a strong investment decision to weather the storm of volatile markets. 

Last year, global geopolitical events contributed to market volatility, particularly in April, which saw a strong dip for ASX shares around the US liberation day tariff announcements. 

Already in 2026, we have witnessed the US capturing of Venezuelan President Maduro.

While here in Australia we might feel far removed, it’s important to understand how these kinds of geopolitical events can impact local markets. 

Interconnected markets 

Regardless of your political stance, geopolitical events can impact ASX shares by increasing global uncertainty, which prompts investors to reduce exposure to riskier assets such as equities. 

Because Australia is closely integrated into global financial markets and relies heavily on foreign investment, sudden shifts to “risk-off” sentiment can trigger capital outflows from the ASX even when the event occurs overseas. 

Such shocks often cause volatility in commodity prices and the Australian dollar. Both of these strongly influence major Australian sectors like mining, energy, and banking. 

As investors reassess growth prospects, inflation risks, and credit conditions, Australian share prices may fall due to weaker confidence rather than any direct damage to the domestic economy.

Of course, on the flip side, global events can create supply and demand shifts, which can also positively impact certain sectors.

Yesterday, the Motley Fool’s Bernd Struben covered how recent the recent events in Venezuela might influence ASX energy shares.

Defensive shares 

It’s often a fool’s game to predict the future of the stock market. But one thing that is guaranteed is there will always be periods of volatility.

However, for investors looking to position themselves with some safety, a good option is to consider defensive shares. 

Defensive stocks are typically defined as established, dividend-paying companies that earn steady profits regardless of economic conditions. 

They often operate in essential sectors like consumer staples, healthcare, utilities, and fast food, where demand stays strong even during economic downturns.

Should the ASX experience volatility in 2026, from emerging geopolitical events or unrelated economic downturn, here are three defensive shares to consider. 

Telstra Corporation Ltd (ASX: TLS)

As Australia’s largest telecommunications provider, Telstra supplies essential services such as mobile, internet, and fixed-line connectivity that households and businesses continue to use during economic downturns. 

Its large, recurring subscription revenues, strong market position, and historically reliable dividend payments make its cash flows more predictable than cyclical companies. 

Investors often view Telstra as a safer place to park capital during periods of market uncertainty.

Transurban Group (ASX: TCL)

Transurban operates tollways in Australia, Canada, and the United States. 

Demand for road transport is relatively steady. People and freight keep moving even in downturns. 

Essentially, it generates stable, long-term, inflation-linked cash flows regardless of economic cycles.

Woolworths Group Ltd (ASX: WOW)

Another option for a defensive investment is Woolworths. 

Data shows Woolworths has 38% of supermarket grocery sales nationally, which means Australians depend on the company for essential groceries. 

This dependence keeps Woolworths essential to the Australian economy regardless of market conditions. 

Its large scale, strong market position, and steady cash flows help insulate earnings from economic downturns, making Woolworths relatively resilient during periods of market volatility.

The post Expecting a down year for the ASX? Here’s 3 ASX defensive shares to target appeared first on The Motley Fool Australia.

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• How I’d build a growing passive income stream from ASX shares over 15 years
• Forecast: Here’s what $10,000 invested in Telstra shares could be worth next year
• Why I think Telstra and Woolworths shares are buys for passive income

Motley Fool contributor Aaron Bell 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market has no shortage of high-quality companies with the potential to grow earnings well above the market average over the long term.

While short-term volatility is always part of investing, history suggests that owning outstanding businesses with structural tailwinds, strong competitive positions, and scalable business models can be a powerful way to build wealth over time.

With 2026 shaping up to be another year where innovation, technology adoption, and global expansion matter, here are five ASX growth stocks that I think could be well worth a closer look for long-term investors.

Life360 Ltd (ASX: 360)

Life360 has established itself as a global leader in family safety and location-based services, with over 90 million monthly active users worldwide.

The company continues to execute on a highly scalable subscription model, converting free users into paying subscribers while expanding average revenue per user through new features and services. Importantly, Life360 has reached a point where strong revenue growth is now being matched by improving margins and cash flow.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is widely regarded as one of the highest-quality businesses on the ASX.

Its Visage imaging platform is increasingly becoming the system of choice for large hospital networks in the United States, thanks to its speed, scalability, and cloud-based architecture. Long-term contracts, high switching costs, and expanding margins underpin a business model that is both resilient and highly profitable.

With strong earnings visibility, a growing pipeline of major contract wins, and a backdrop of radiologist shortages, I think Pro Medicus remains a standout ASX growth stock for investors.

REA Group Ltd (ASX: REA)

REA Group could be another ASX growth stock to buy. It is the property listings company best known for realestate.com.au, which remains the clear market leader in Australian property listings.

What makes REA a compelling growth stock is not just its dominant position, but its ability to monetise that leadership through premium products, data services, and advertising tools. The company also has exposure to offshore markets, such as India, providing additional growth optionality over time.

ResMed Inc. (ASX: RMD)

Another ASX growth stock that could be an incredible buy in 2026 is ResMed. It operates in the growing global sleep health and respiratory care market, supported by powerful demographic tailwinds.

Rising awareness of sleep apnoea, increasing diagnosis rates, and ongoing innovation in connected medical devices continue to drive long-term demand. The company’s expanding software and data ecosystem also provides opportunities to deepen relationships with healthcare providers and patients.

WiseTech Global Ltd (ASX: WTC)

Finally, WiseTech Global could be a great option for growth investors in 2026. It operates at the heart of global supply chains through its CargoWise logistics software platform.

After a disappointing 2025 marked by leadership controversies and product launch delays, WiseTech Global’s long-term growth story remains compelling. Global trade continues to become more complex, increasing demand for software that improves efficiency, compliance, and visibility across logistics networks.

And with its shares down heavily over the past 12 months, now could be a great time to make a patient long-term investment.

The post 5 incredible ASX growth stocks to buy for 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, REA Group, ResMed, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, ResMed, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, ResMed, and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When an S&P/ASX 300 Index (ASX: XKO) share is trading substantially below its underlying value, I think it’s a great idea to invest while the opportunity is there.

The two businesses I want to highlight in this article both have excellent long-term potential – one because of the longevity of the assets it owns and the other one because of its growth runway.

I already own a piece of both of these ASX 300 shares and I’d happily invest more if someone gave me $5,000 to invest in them.

Rural Funds Group (ASX: RFF)

Farming has been an important asset for many centuries, if not thousands of years. We all need to eat food, so I imagine its assets will remain in demand for the rest of my lifetime (and beyond).

The business is a real estate investment trust (REIT) that owns farmland across Australia, which includes cattle, almonds, macadamias, vineyards and cropping farms.

Pleasingly, Rural Funds’ properties are spread across different states and climate conditions, giving the business pleasing diversification.

Rural Funds has long-term leases with its tenants, giving the business pleasing income security and visibility. Some of its tenants include names like Select Harvests Ltd (ASX: SHV), Treasury Wine Estates Ltd (ASX: TWE) and Australian Agricultural Company Ltd (ASX: AAC).

The ASX 300 share has in-built rental increases with most of its contracts, which are predominantly either linked to inflation or the increases are fixed at an annual pace each year. This gives the business a pleasing tailwind for rental profit growth and an improvement in the underlying value of the farms.

It reported its adjusted net asset value (NAV) was $3.08 at 30 June 2025, so the current Rural Funds unit price is trading at a 36% discount to this. That’s a very attractive discount!

Siteminder Ltd (ASX: SDR)

Siteminder is a tech business that provides software for hotel management and booking.

The business is responsible for helping hotels generate more than 130 million reservations worth more than A$85 billion in revenue each year.

This ASX 300 share is truly a global company, with offices in Bangalore, Barcelona, Berlin, Dallas, Galway, London, Manila and Mexico City.

The company wants to achieve 30% annual revenue growth in the medium-term, which it could achieve through winning new subscribers and offering them more advanced software to help subscribers maximise their revenue.

Siteminder is seeing its gross profit margin increase over time thanks to operating leverage and efficiencies.

I’m expecting the company’s operating profit (EBITDA), net profit and free cash flow margins to increase in the coming years as revenue rises. If revenue can continue growing at a compound annual growth rate (CAGR) of more than 20% over the next few years, then I think the business could be substantially undervalued today.

Since 29 October 2025, the Siteminder share price has dropped by 24%, making this growing business a lot cheaper. I think this ASX 300 share could be a top performer over the next five years.

The post 2 unmissable ASX 300 shares that look too cheap to ignore! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Rural Funds Group, SiteMinder, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to buy a few quality S&P/ASX 200 Index (ASX: XJO) shares to add to your 2026 investment portfolio?

Then you may wish to run your slide rule over Aussie electronics retailer JB Hi-Fi Ltd (ASX: JBH) and home furnishings and whitegoods retailer Harvey Norman Holdings Ltd (ASX: HVN).

The past year delivered widely differing results from the two ASX 200 shares.

But with Commonwealth Bank of Australia (ASX: CBA) forecasting an ongoing rebound for the Australian dollar, 2026 could see both stocks outperforming.

If you’ve been following currency moves, you’ll know that the Aussie dollar plumbed a five-year low of 59.22 US cents in April amid the height of US tariff fears and uncertainties. At market close on Tuesday, that same dollar was worth 67.22 US cents.

And CBA expects further strengthening in the months ahead.

The bank noted, “The Aussie typically does well against most currencies when the world economy is in a cyclical upswing.”

CBA also expects growth-supportive US tax cuts and US Fed interest rate cuts (while the RBA holds firm or possibly hikes rates) to drive gains in the Aussie dollar.

Indeed, CommBank noted that analysts are forecasting the Australian dollar could reach 73 US cents in 2026 “if tariff fears ease and US tax cuts support growth”.

As for ASX 200 shares that could stand to benefit, CBA noted, “A stronger currency is good news for local companies that re-sell imported goods, especially volume retailers such as Harvey Norman and JB Hi-Fi.”

What’s been happening with these quality ASX 200 shares?

As mentioned above, JB Hi-Fi and Harvey Norman shares delivered very disparate returns to stockholders over the past 12 months.

Turning to JB Hi-Fi first, shares in the electronics retailer closed yesterday trading for $93.99 apiece. This sees the ASX 200 share down 0.8% since this time last year.

Though investors will also have received two fully franked dividends totalling $3.75 a share over this time, putting them back in the green. JB Hi-Fi shares trade on a fully franked trailing dividend yield of 4%.

Harvey Norman stockholders have enjoyed a much more profitable year.

Harvey Norman shares closed on Tuesday trading for $6.90. That puts this ASX 200 share up 46% over 12 months.

Harvey Norman shares also trade on a 3.8% fully-franked trailing dividend yield.

Looking ahead, both companies stand to benefit from lower realised costs for their imported electronics, furniture, and appliances should the Aussie dollar continue to appreciate as CBA forecasts.

The post 2 quality ASX 200 shares to buy now amid a rising Aussie dollar appeared first on The Motley Fool Australia.

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

I’m always on the lookout for ASX growth share ideas that could become the next sizeable growth name like CAR Group Ltd (ASX: CAR) or Altium.

This doesn’t mean I’m expecting the business in this article to become worth tens of billions of dollars. But I want to find companies that have a very long growth runway.

I think the following two ASX growth shares are very exciting stocks for the next decade.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of affordable jewellery with a global store network.

The company has already demonstrated significant growth potential by establishing a large store network in places like the USA, Australia, France, Germany, Spain, South Africa, and the UK.

This ASX growth share is exciting to me because it can expand its store network in existing markets and enter new countries. Places like Poland, Italy, Mexico, Vietnam and China are all fairly new additions and offer further growth potential.

As long as its same store (comparable) sales remain positive over time, I’m expecting Lovisa’s total sales to grow at a pleasing double-digit pace in percentage terms in the coming years.

Further scaling in the company’s existing markets could considerably help margins as it grows.

According to the forecast on CMC Markets, the business is trading at 21x FY28’s estimated earnings, which I think is too low for how much long-term potential the ASX growth share has.

Tuas Ltd (ASX: TUA)

Tuas is one of the businesses I’m most bullish about, which is why it’s one of my largest holdings.

It’s an Asian telecommunications business based in Singapore. It is led by David Teoh, who helped TPG Telecom Ltd (ASX: TPG) become a fierce competitor before its merger with Vodafone Australia.

Tuas is using the same playbook – winning market share by offering great value to customers. It now has well over 1 million mobile subscribers in Singapore, with no signs of stopping.

Telco businesses are usually scalable, so more users are helping grow the company’s operating profit (EBITDA) and net profit margins. I expect this trend to continue for the ASX growth share, helping the bottom line substantially.

Tuas is also working on acquiring competitor M1, which will give the ASX telco share a greater market share in mobile, broadband and other areas. This move is expected to significantly boost Tuas’ profitability and will also add expertise to the overall business.

I believe Tuas will be a much larger business in five to ten years, particularly if it expands to neighbouring countries such as Malaysia or Indonesia.

The post These 2 ASX growth shares are ideal for Australians! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Tuas. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended CAR Group Ltd and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Aussie bank stocks endured a horrid day yesterday. 

At the close of trading, the big four banks all were in the red. 

• Commonwealth Bank of Australia (ASX: CBA) – down 2.95%
• National Australia Bank Ltd (ASX: NAB) – down 2.37%
• Westpac Banking Corporation (ASX: WBC) – down 2.2%
• Australia And New Zealand Banking Group (ASX: ANZ) – down 1.96%

While it’s just one day of trading, and we never overreact to a single day, the dominance of bank stocks in the Australian economy will often mean portfolios are impacted by poor performance. 

After a down day, are any of these stocks worth buying?

Let’s quickly recap how bank stocks have performed recently. 

2025 performance

ANZ shares were the clear winner amongst the big four in 2025. 

These bank shares sit 24% higher than a year ago. 

Westpac shares were also a winner in 2025. 

At the time of writing, Westpac shares sit almost 17% higher than a year ago. 

Following behind, NAB are almost 10% higher than the start of 2025, while CBA are now almost even with January 2025. 

Which big four shares could be a buy in 2026?

With a strong performance amongst the big four bank shares in 2025, it seems experts are largely bearish in 2026. 

Valuations on these stocks remain full, with little upside tipped amongst brokers. 

Morgans has put a sell rating and $31.46 price target on NAB’s shares, which would be a 24% decline from current levels. 

Westpac has an average one year price target of $33.41 according to TradingView (12% below current levels). 

ANZ’s second half results disappointed Morgans.

The broker has a trim rating on ANZ’s shares with a $33.09 price target (current share price hovering around $36). 

Meanwhile, CBA shares are tipped to keep falling from its current price of around $155: 

• Morgan Stanley has a price target of $144.80
• Jefferies has a target price of $143.87
• Morgans has a target of $99.81

Is it time to look outside the big four banks?

With little upside tipped for the big four banks, it could be an opportunity to look elsewhere. 

Despite being down roughly 5% over the past year, Judo Capital Holdings Ltd (ASX: JDO) is drawing attention from experts. 

The fast-growing challenger focussed on servicing small and medium enterprises (SMEs) is projected to generate impressive profit in 2026. 

UBS has a price target of $2.20 on these bank shares which indicates upside of almost 28%. 

The post Australian Bank Stocks: Which ones look like a buy (and which don’t) appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in National Australia Bank. 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.

I think the best investments to go for are the ones with the potential to deliver the biggest returns over the long-term. With that in mind, I’d go for ASX shares I’m expecting to grow earnings significantly over time but also trade at valuations that seem too low for the outlook.

Some of the ASX tech shares are trading much cheaper than they were at the start of 2025. But, I’m going to highlight other investments today.

I’m optimistic that over ten years, both of the below ideas can outperform the S&P/ASX 200 Index (ASX: XJO).

Propel Funeral Partners Ltd (ASX: PFP)

This a morbid idea, but it’s one that comes with ultra-long-term tailwinds.

Sadly, there are a certain number of funerals required each year, giving the business a very defensive set of earnings. As the saying goes, there are only two things certain in life – death and taxes.

Due to Australia’s growing and ageing population, the business has significant tailwinds for demand in the coming decade or two.

According to Propel, the number of deaths is expected to increase in Australia by an average of 2.8% per year between 2025 to 2035 and then grow by 2.4% between 2036 to 2045. In other words, the company is expected to benefit from that tailwind for at least the next 20 years.

On top of that, the business is seeing its average revenue per funeral increase, which is helping offset inflation impacts. Between FY15 and FY25, the company saw its average revenue per funeral increase at an average of 3.1% per year. It has also made the occasional acquisition to boost its geographic presence.

Overall, I think the ASX share is likely to see rising earnings over time, which should provide a compelling tailwind for a higher Propel Funeral Partners share price.

Global X S&P World EX Australia Garp ETF (ASX: GARP)

This leading exchange-traded fund (ETF) gives investors exposure to some of the best businesses in the world, in my view.

The fund goes through a selection process to find businesses that could generate growth at a reasonable price (GARP). There are three different core factors it uses to identify great companies.

First, growth. It looks at the three-year sales per share growth and earnings per share (EPS) growth.

Second, value. The GARP ETF considers the earnings to price ratio, which is another way of calculating the price to earnings (P/E) ratio.

Third, quality. The fund looks at how much debt these businesses have (meaning debt levels) as well as the return on equity (ROE).

Overall, it has 250 companies spread across multiple countries and sectors, giving it good diversification. I’m calling this an ASX share because we can buy it on the ASX and it’s invested in shares.

Past performance is not a guarantee of future performance, but the index this fund tracks has outperformed the global share market return over the past year, three years and five years.

It seems like a fund of great businesses trading at reasonable prices.

The post 2 compelling ASX shares I’d buy in a heartbeat appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.