The copper price has reached a new all-time high in London trading, surpassing US$13,000 per tonne, as demand for the metal, which is crucial for electrification, remains strong.

There are some key Australian-listed stocks that provide good exposure to copper, but more on that later.

Firstly, why is demand for copper so strong, and what’s the outlook for this year?

Outages and demand bolstering price

MineLife director Gavin Wendt recently issued a research note on copper and said the rally in the copper price over 2025 reflected mine supply disruptions and distortions of trade flows caused by President Trump’s tariff policies.

In terms of the disruptions, an incident at Freeport McMoran‘s Grasberg mine in Indonesia, which was producing about 4% of global supply, would continue to have an impact this year.

As Mr Wendt said:

Grasberg is the world’s second-largest copper mine, contributing around 4% of global production. Two minor mining areas recovered production as planned in November, while the main area, which is responsible for 70% of output, is expected to slowly resume operations next year. A full recovery is expected in 2027. The disruption at Grasberg has added to the already high number of supply disruptions this year, including the flooding of the Kamoa-Kakula mine in the Democratic Repunlic of Congo in May and an accident hitting the El Teniente mine in Chile in July.

Mr Wendt said the copper supply chain was “under strain”, with mines in Chile struggling with falling ore grades, and refined metal flows being disrupted by tariff risks and unusually high US stockpiles.

He said:

The refined copper balance for 2026 is now showing a deficit of around 600,000 tonnes for 2026, following a deficit of 200,000 tonnes in 2025.

Stocks in focus

In terms of Australian-listed companies set to benefit, Wilsons Advisory issued a research note in early December, naming Sandfire Resources Ltd (ASX: SFR) as its preferred pick in the sector.

The Wilsons teams said:

As the only pureplay ASX 100 copper producer, Sandfire has a best-in-class track record of operational delivery, which continues to underpin reliable leverage to the copper price.

Sandfire shares hit a new record high of $18.45 on Monday and have more than doubled from 12-month lows of $8.05.

Australian mining giant BHP Group Ltd (ASX: BHP) is also highly leveraged to copper, with its three South Australian mines and its major Escondida mine in Chile contributing to the company’s production of more than two million tonnes of copper for the first time in FY25. BHP has boosted copper production by 28% since 2022, according to the company’s annual report.

Rio Tinto Ltd (ASX: RIO) is also highly leveraged to copper, having recently upgraded its copper production guidance to 860,000-875,000 tonnes for 2025, up from its previous guidance of 780,000-850,000 tonnes.

Wilsons also said in early December that outside of the majors, copper exposure could be had from the $14.5 billion Capstone Copper Corp (ASX: CSC), while at the junior end, South Australian miner Hillgrove Resources Ltd (ASX: HGO) was a pure-play copper company.

The post With the copper price hitting a new record, how can you get exposure? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 company is celebrating its second major contract win in as many months
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• Silver rebounds putting ASX silver stocks back in focus
• Here are the top 10 ASX 200 shares today
• Own Rio Tinto shares? They just hit a new record high

Motley Fool contributor Cameron England 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.

Monadelphous Group Ltd (ASX: MND) shares are trading higher after the company announced it had won a major contract with BHP Group Ltd (ASX: BHP), continuing the company’s bullish run in recent months.

The company said it had been awarded the construction contract for a car dumper project at Finucane Island in Port Hedland, Western Australia, which was part of BHP’s iron ore operations.

Monadelphous went on to say:

The contract, valued at approximately $175 million, includes civil, structural, mechanical, piping and electrical works associated with the replacement of key equipment during a planned major shutdown.

Monadelphous Managing Director Zoran Bebic said the contract win reflected the company’s deep experience in delivering such projects, built up over many years.

He added:

We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.

ASX mining stock backing up another recent win

The new contract is the second major contract win in as many months for Monadelphous, which in December announced it had been awarded a $250 million contract with Rio Tinto Ltd (ASX: RIO) for the Brockman Syncline 1 iron ore development.

The company said at the time:

The multidisciplinary contract, valued at approximately $250 million, includes fabrication and supply, detailed earthworks and concrete, structural, mechanical, piping and electrical and instrumentation works associated with the construction of a new primary crusher and overland conveyor, as well as modifications to existing plant. Work under the contract will commence immediately and is expected to be completed in 2027.

ASX mining stock outlook strong

At the company’s AGM in late November, chair Rob Velletri said the company had in 2025, secured about $2.3 billion in new contracts and contract extensions, which was a record, plus had added another $570 million since the end of the financial year.

Mr Bebic said at the time the company was forecasting revenue for the half year ending December 30 of about $1.5 billion, with full-year revenue expected to be about 20% to 25% higher than the previous year.

Shares in Monadelphous Group have more than doubled over the past year, and were changing hands for $27.09 on Tuesday morning, up 0.3%.

The stock has increased from lows of $13.36 over the past year. The company was valued at $2.7 billion at the close of trade on Monday.

The post This ASX 200 company is celebrating its second major contract win in as many months appeared first on The Motley Fool Australia.

More reading

• Monadelphous awarded $175 million BHP contract: Key details for investors
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• Guess which ASX All Ords share is leaping higher on BHP and Fortescue contract news

Motley Fool contributor Cameron England 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.

Insurance Australia Group Ltd (ASX: IAG) shares are in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $7.85. In morning trade on Tuesday, shares are changing hands for $7.80 apiece, down 0.6%.

For some context, the ASX 200 is up 0.2% at this same time.

Here’s what investors are mulling over today.

IAG shares dip on Queensland news

On 1 September 2025, IAG reported it had completed its acquisition of the Royal Automobile Club of Queensland (RACQ) for the tidy sum of $855 million, with IAG owning 90% of RACQ shares.

“Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG, and strengthening our commitment to Queensland,” IAG CEO Nick Hawkins said at the time.

IAG shares closed up 0.6% on the day.

Today, the ASX 200 insurance company announced the successful integration of RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements, and aggregate stop-loss protection.

IAG also revealed that it has expanded its WAQS arrangements to now cover 35% of the consolidated business. Management reiterated that they have maintained RACQI’s separate standalone reinsurance program that comprised quota share and catastrophe protections.

Cutting to the chase, IAG shares could gain longer-term support with its RACQI branch now also covered by the catastrophe reinsurance program for the 2026 calendar year.

IAG’s total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

The company noted that RACQI’s quota shares have now been replaced by IAG’s WAQS arrangements, adding that the total proportion ceded has increased by 2.5% to now represent 35% of IAG’s combined business.

What did management say?

Commenting on the reinsurance program integration that has yet to lift IAG shares today, chief financial officer William McDonnell said, “We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies.”

McDonnell added:

Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.

How have IAG shares been tracking?

With today’s intraday dip factored in, IAG shares are down 8.5% over the past 12 months.

The ASX 200 insurance stock also trades on a 3.9% partly franked trailing dividend yield.

IAG is scheduled to announce its half-year results for the six months to 31 December on 12 February.

The post Why are IAG shares slipping today? appeared first on The Motley Fool Australia.

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• IAG integrates RACQ Insurance into reinsurance
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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 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.

BlueScope Steel Ltd (ASX: BSL) shares are charging higher on Tuesday morning.

At the time of writing, the steel products company’s shares are up 20% to $29.22.

This compares favourably to the ASX 200 index, which is up 0.2% in early trade.

Why are BlueScope shares charging higher?

Investors have been scrambling to buy the company’s shares this morning following the release of an announcement after the market close on Monday in response to takeover speculation in the media.

Well, it turns out that the speculation was correct, with BlueScope revealing that it has received four takeover offers since 2024 from the same suitor.

According to the release, on 12 December it received an unsolicited, non-binding, and indicative proposal from an Australian and US consortium to acquire all BlueScope shares by way of a scheme of arrangement.

The consortium, which comprises SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD), has tabled an offer of $30.00 cash per BlueScope share.

The company notes that the indicative proposal would see SGH acquire all of BlueScope’s shares and then on-sell BlueScope’s North American businesses to Steel Dynamics.

The proposal is subject to a number of conditions. This includes exclusivity, due diligence, no material adverse change in BlueScope’s business, a unanimous recommendation from the BlueScope board, approval of BlueScope shareholders, no further share buy-backs, final approvals from SGH and Steel Dynamics’ boards, and necessary regulatory approvals.

BlueScope also highlights that the indicative proposal includes highly conditional debt funding support.

What’s next?

BlueScope is yet to make a decision on this proposal and is considering the offer.

However, it is worth noting that after rejecting previous offers of $24.00 per share, $27.50 per share, and $29.00 per share “as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes”, it remains to be seen whether this latest proposal will be enough to get a deal over the line.

Commenting on the offer, SGH’s managing director and CEO, Ryan Stokes, said:

We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.

Steel Dynamics’ CEO, Mark Millett, adds:

We believe the acquisition of BlueScope’s North American Assets will be highly complementary to our existing operations and further expands our capabilities domestically. The combination of BSL’s North American teams and assets with SDI would be an excellent fit in every sense and create value for all stakeholders.

The post BlueScope shares jump 20% on takeover news appeared first on The Motley Fool Australia.

More reading

• SGH confirms $13.2 billion acquisition offer for BlueScope Steel
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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 recommended Steel Dynamics. 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 disappointment for CSL Ltd (ASX: CSL) shares and shareholders.

The biotechnology leader was amongst the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline that shocked the investment world.

The question now is whether this high-quality laggard from last year can outperform that benchmark in 2026 as fundamentals stabilise and sentiment improves.

Looking ahead, I believe the setup is quietly improving, which raises a genuine case for CSL to outperform the ASX 200 Index.

Why CSL shares fell so hard in 2025

At a headline level, CSL’s FY25 result was not a disaster. Group earnings came in slightly ahead of expectations, helped by lower tax and operating costs. The problem was where the growth came from, and where it didn’t.

The market had been positioning CSL Behring, the key plasma therapies division, as the engine room of long-term growth.

Instead, that business barely grew in the second half of FY25. Revenue at CSL Behring increased just 1% in the second half, with flagship immunoglobulin sales declining by 1%. This was deeply disappointing given that Behring had been expected to drive double-digit earnings per share growth for much of the coming decade.

Adding to the pain, management cut its FY26 guidance in the following months, reducing expected revenue growth to around 3% and net profit growth to roughly 6% at the midpoint. The key driver was weaker-than-expected influenza vaccination rates in the US, which weighed on the Seqirus vaccines business. CSL also delayed plans to demerge Seqirus, choosing to wait for conditions in the US vaccine market to improve, and warned of albumin weakness in China.

The core of the investment case remains intact

At its heart, CSL is a plasma powerhouse. It is one of just three tier 1 plasma therapy companies globally, along with Grifols and Takeda, operating in an oligopolistic and highly consolidated market. Plasma collection is the key constraint in production, and CSL is exceptionally well-positioned, owning roughly 30% of global plasma collection centres after years of heavy investment.

That scale matters. It creates high barriers to entry, supports pricing power, and allows CSL to benefit disproportionately as plasma supply conditions normalise.

Encouragingly, plasma efficiency initiatives are already underway with the Horizon project. Management expects plasma gross margins to recover meaningfully by 2028, with the bulk of that improvement driven by faster and larger plasma collections. These benefits have not yet fully flowed through earnings, which means 2026 could mark the beginning of visible margin recovery.

Why 2026 could look better than 2025

For CSL to outperform the ASX 200 in 2026, it doesn’t need everything to go right. It just needs less to go wrong.

Expectations are now firmly lower. The vaccines business is now a smaller part of the earnings mix than many assume. Plasma margins are likely to improve as efficiency initiatives take hold. And long-term demand drivers for immunoglobulins remain intact.

I don’t think sentiment needs to return to peak optimism for CSL shares to beat the index. A combination of stabilising earnings, early signs of margin recovery, and improved sentiment could be enough to drive relative outperformance from a reset base.

What could still go wrong

That said, CSL is not without risk. Gene therapy remains the biggest long-term threat to plasma-derived treatments, aiming to cure rather than treat disease. Adoption may be slow due to cost, but the risk is real. Competition in haemophilia and hereditary angioedema also continues to pressure certain segments.

And research and development (R&D) outcomes are, by nature, uncertain.

However, I believe that CSL’s long track record of disciplined capital allocation and commercial-focused R&D reduces the risk of further value destruction.

Foolish Takeaway

If the ASX 200 delivers a solid return in 2026, I think CSL shares have a credible path to doing better.

The business remains a global leader with competitive advantages, improving plasma economics, and long-term growth drivers that have not gone away.

After a painful reset in 2025, expectations are lower, its valuation is more reasonable, and the risk-reward looks more balanced. I wouldn’t expect fireworks. But if margins begin to recover and sentiment improves even modestly, CSL shares could beat the ASX 200 in 2026 and remind investors why the company has been a long-term winner in the first place.

The post Could CSL shares outperform the ASX 200 in 2026? appeared first on The Motley Fool Australia.

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

At the beginning of a new year, I like to narrow my focus rather than expand it. Instead of looking at dozens of ASX stocks, I concentrate on a small group of businesses I would genuinely be happy to own for the long term.

These are companies with proven models, clear growth pathways, and management teams that have shown they can execute. They are not risk-free, but they are businesses I believe have the right foundations in place.

With that in mind, here are five ASX stocks that stand out to me as 2026 gets underway.

Sigma Healthcare Ltd (ASX: SIG)

Sigma has quietly become a very different business over the past year.

The merger with Chemist Warehouse has created a vertically integrated healthcare group with scale across wholesale distribution, franchising, and retail. With hundreds of pharmacies under its umbrella, Sigma now sits at the centre of Australia’s community pharmacy network.

Healthcare demand is structural rather than cyclical, which gives Sigma resilience. As integration benefits flow through and scale advantages are realised, I think this ASX stock has the potential to deliver robust growth into 2026 and beyond.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX stock that I would consider buying in 2026.

Its enterprise software is deeply embedded in government, education, and large organisations, where switching costs are high and contracts are long-dated. The ongoing transition to a SaaS model has improved revenue visibility, while its international expansion provides an additional growth lever.

It’s not a flashy stock, but it’s exactly the kind of business I want exposure to when markets start rewarding reliability again.

Wesfarmers (ASX: WES)

Wesfarmers could be a key long-term portfolio holding.

With its Bunnings, Kmart, Officeworks, and healthcare businesses, Wesfarmers benefits from diversification and disciplined capital allocation. Management has repeatedly shown a willingness to reshape the portfolio and reinvest where returns look attractive.

As conditions normalise in 2026, I see Wesfarmers continuing to compound steadily.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa brings a different dynamic to the mix.

It’s a globally scaled specialty retailer of fashion jewellery with a fast-moving store rollout model and a clear focus on return on capital. While retail can be volatile, Lovisa’s international footprint and ability to quickly adapt ranges and pricing give it more flexibility than most.

If consumer confidence improves in 2026, Lovisa could benefit from both operating leverage and continued store expansion across global markets.

DroneShield Ltd (ASX: DRO)

DroneShield is the highest-risk stock on this list, and potentially the highest reward.

The company operates in counter-drone technology, a market that is becoming increasingly important for defence, government, and critical infrastructure. While contract timing can make results lumpy, the underlying demand drivers are structural, not cyclical.

As global defence spending remains elevated, DroneShield’s technology and growing customer base could position it well heading into 2026, provided execution continues.

The post My top 5 ASX stocks to buy in early 2026 appeared first on The Motley Fool Australia.

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

The Telstra Group Ltd (ASX: TLS) share price is essentially where it was six months ago, as the chart below shows. Experts think the ASX telco share could be headed for positive returns from here.

Telstra is the clear leader of the telecommunications space of Australia with the most subscribers, the best spectrum assets, and the widest network coverage. This gives the company a strong foundation to deliver solid earnings and dividends.

Rising profit certainly would help provide a tailwind for a higher share price, though that’s not guaranteed to happen. It partly depends on company updates, and it partly depends on wider investor confidence about the entire (ASX) share market.

Let’s see where experts think the Telstra share price could be in a year and what that could mean for a $10,000 investment today.

Expert views on the ASX telco share

According to CMC Markets, of four recent analyst ratings, there are two buy ratings and two hold ratings. That averages out to a generally positive view on the business.

A price target is where analysts think the share price will be in 12 months from the investment call.

CMC Markets says that the average price target is $5 from those four recent analyst calls, suggesting a possible rise of 3% within the next year (at the time of writing). That wouldn’t be a huge return, though the most optimistic price target suggests a possible rise of more than 11% within a year.

However, there’s more to the return than just the Telstra share price – dividend payments also play their part.

The forecast on CMC Markets suggests that the ASX telco share could pay an annual dividend of 20 cents per share in the 2026 financial year. At the current Telstra share price, that translates into a possible grossed-up dividend yield of 5.9%, including franking credits, or 4.1% excluding them.

Therefore, the ‘total shareholder return’ (which excludes franking credits) is currently projected to be around 7% for 2026.

What could this mean for a $10,000 investment in Telstra shares?

A $10,000 investment could deliver decent performance for a shareholder in the year ahead. A 3% rise would mean the capital value grows to approximately $10,300.

Meanwhile, the dividend would translate into roughly $410 of an annual cash payment, or roughly $585 of grossed-up dividend income, including the franking credits. That’d be total wealth growth of just over $700.

Time will tell how much of a return Telstra actually makes, but there’s a fair chance it could outperform the S&P/ASX 200 Index (ASX: XJO), particularly if Telstra’s net profit outperforms expectations.

According to the projection on CMC Markets, Telstra could generate earnings per share (EPS) of 20.5 cents in FY26. That means the Telstra share price is trading at under 24x FY26’s estimated earnings.

The post Forecast: Here’s what $10,000 invested in Telstra shares could be worth next year appeared first on The Motley Fool Australia.

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

If passive income had a postcode, it would likely be shared by the 2 major ASX energy stocks, Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

Neither stock is exciting in the Silicon Valley sense, but that’s kind of the point. Passive income isn’t about adrenaline; it’s about reliability.

And these 2 major ASX oil and gas stocks continue to offer sizeable and consistent cash returns to shareholders. Let’s have a closer look.

Woodside

Let’s start with Woodside Energy, the grand old dame of the ASX energy sector. The $45 billion ASX energy stock has turned its sprawling LNG empire into a dividend machine. It is helped by long-dated contracts, disciplined capital spending, and a management team that treats shareholder payouts like a sacred ritual.

Even as oil and gas prices wobble, Woodside’s diversified portfolio and conservative balance sheet give it room to keep distributions flowing. The result? Fully franked dividends that make income investors feel like they’re still invited to the party, even when energy markets cool.

At a current share price of $23.66, the company is offering a fully franked dividend yield of roughly 7.05%. That is a standout number when you compare it to many of the large-cap stocks on the market today. In the last financial year, Woodside paid out close to $1.65 per share in dividends.

Of course, Woodside isn’t risk-free. Big projects mean big capital requirements, and the global energy transition looms large. But for now, LNG remains in demand, Asia keeps buying, and Woodside keeps writing cheques. For passive income seekers, that’s the holy trinity.

Santos

Then there’s Santos, the slightly scrappier but no less cash-hungry cousin. This ASX energy stock doesn’t have Woodside’s scale, but it makes up for it with operational focus and a knack for sweating its assets.

From PNG to Queensland, Santos has built a portfolio that throws off reliable free cash flow, the lifeblood of dividends. Santos’ appeal lies in its payout discipline. Management has made it clear: dividends matter.

That commitment has translated into yields that regularly turn heads, especially for investors tired of waiting for growth stocks to grow up. Add in exposure to LNG and domestic gas — both still critical to Australia’s energy mix — and Santos looks like a steady income workhorse rather than a boom-or-bust cowboy.

The ASX energy stock still boasts a respectable dividend yield of approximately 5.9% based on recent payouts and its share price of $6.15 at the time of writing.

The company already pays out a meaningful share of its free cash flow and expects to lift those returns from 2026. That focus on rewarding investors has captured the attention of those seeking both income and long-term growth.

Naturally, there are wrinkles. Santos carries more balance-sheet risk than Woodside and faces ongoing regulatory and environmental scrutiny. But as long as gas remains essential to keeping the lights on, income investors will get a slice.

The post After strong dividends? Look at these 2 major ASX energy stocks appeared first on The Motley Fool Australia.

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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 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 share was the best share in the technology sector last year.

Codan Ltd (ASX: CDA) soared 76.5% in 2025. But in the past month, the shine has dulled as the tech stock lost 6% in value.

After rocketing to a fresh all-time high of $36.92 in early November, Codan’s share price has stumbled. In just two months, the ASX tech share has shed 21.5% from its peak price.

Monday delivered another tiny dent, with Codan closing at $28.97, 0.2% lower on the day.

Tech, but not as you know it

Codan isn’t your typical ASX tech play. Based in Adelaide, the company runs a two-engine business spanning communications and metal detection. It’s an unusual mix that gives it exposure to both defence budgets and goldfields.

That blend is increasingly working in its favour.

The communications division has emerged as Codan’s growth powerhouse, designing and manufacturing mission-critical communications systems, drones, and defence and public safety equipment.

As defence spending rises globally, the ASX tech share is shifting away from the boom-and-bust cycles that come with gold prospecting.

Meanwhile, its Minelab brand — acquired nearly two decades ago — remains a global leader in metal detection. Codan’s products are used everywhere from weekend gold hunters to humanitarian demining operations and security agencies.

Gold, growth and a dream run

The ASX tech share was on fire in 2025, with the stock up over 76%, including a blistering 20% surge in October alone.

The numbers backed it up. In FY25, group revenue jumped 22%, EBIT climbed 28%, and net profit after tax (NPAT) rose 27%. Communications stole the show, delivering 26% revenue growth and a 34% lift in profits.

Gold has also played its part. Prices surged to a new record, turbocharging demand for Minelab detectors — particularly across Africa.

Valuation reality check

So why the sudden wobble?

Valuation looks to be the culprit. After such a blistering run, investors appear to be locking in profits, and analysts are warning that much of the good news may already be priced in, with market watchers’ recommendations being neutral.

Broker sentiment has cooled significantly in the past few months. Many now see the ASX tech share trading closer to fair value than it did months earlier. The average 12-month broker price target is $34.59, suggesting a 19% upside from the current share price.

Petra Capital has a hold rating on Codan with a 12-month share price target of $32.70.

Canaccord Genuity is the most upbeat broker. It seems to think that Codan’s long-term story is intact and has a buy rating with a $37.54 target, which implies a 29% upside.

The post Has this red-hot ASX tech share hit the brakes? appeared first on The Motley Fool Australia.

More reading

• Top 5 ASX 200 tech shares for growth in 2025
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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 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.

Cryptocurrency, or crypto for short, surged to all-time highs by the third quarter of 2025 as investor interest in major players like Bitcoin (CRYPTO: BTC) peaked. 

Volatility returned towards the end of the calendar year as sentiment cooled and risk appetites shifted. As a result, much of the huge gains seen earlier in the year were reversed by the 31st of December.

Bitcoin declined around 17% throughout 2025, XRP (CRYPTO: XRP) dropped around 30%, and Dogecoin (CRYPTO: DOGE) dropped just over 70% in 2025.

As we move closer into the new year, among Bitcoin, XRP, and Dogecoin, which is the better buy for investors?

The case for Bitcoin

In 2025, Bitcoin suffered the biggest price plummet seen since 2021. By November, the coin’s value had dropped to around US$85,000 per coin. While Bitcoin regained some of that value in the weeks after, it slumped again in December. For context, Bitcoin peaked at US$124,739 per coin in early October.

So far in 2026, the cryptocurrency has climbed 4.92%, sparking excitement that it could be on a path for recovery.

Bitcoin is widely regarded as the global leader in the cryptocurrency market. It has a fixed supply, is experiencing growing institutional adoption, and is dominant in the cryptocurrency space.

The downside is that Bitcoin is less likely to be as explosive as some of the smaller cryptocurrencies. But as it is generally considered one of the most reliable coins to hold long term, it would be the best option for risk-averse, longer-term investors in 2026.

The case for XRP

XRP was one of the fastest-rising altcoins in 2025. It had explosive growth of over 56% in early July alone, rising to an annual high of US$3.65 per coin. It then tumbled just over 47% by the close of 2025.

In 2026, so far, XRP has recovered 16.29% of its value. At the time of writing, it is trading for US$2.14 per token.

XRP is known for being a fast and low-cost global payment. It acts as a bridge between different currencies, without the need for traditional banks. If the uptake of the technology continues in 2026, it has the potential to outperform major coins like Bitcoin. 

The downside is that XRP comes with a lot more risk, so this is the best option for investors who want higher growth and have a larger appetite for risk.

The case for Dogecoin

Dogecoin was launched as a meme-based parody of Bitcoin in 2013 and has been a wildly volatile token ever since. It is primarily driven by sentiment, community support, and social media attention, rather than any fundamental factors. 

There was a huge spike in interest from investors in late-2025 and early-2025, but over the year, the coin shed around 70% of its value. 

So far in 2026, Dogecoin has jumped 24.44% to 15 cents per coin. 

The benefits of this coin are that it can surge quickly. But it lacks the institutional backing that Bitcoin or XRP have, so it’s a high-risk option most suited to short-term investors. 

So which is the best option for investors?

There is no crystal ball to tell us how the crypto market will play out in 2026, so the answer to this question depends on an investors’ risk appetite. 

Bitcoin is a more reliable and stable play. Meanwhile, XRP has the potential to yield explosive returns to those willing to take on more risk, and Dogecoin is best suited for short-term traders.

The post Better Buy in 2026: XRP, Dogecoin, or Bitcoin? appeared first on The Motley Fool Australia.

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