Tag: Stock pick

S&P/ASX 200 Index (ASX: XJO) shares are down 1.1% to 8.816.7 points on Friday.

This week, brokers see new potential in several ASX shares.

Let’s take a look at them.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is $1.41, down 2.6% today.

Over the past month, this ASX 200 energy share has lost almost a third of its value.

Morgans downgraded Karoon Energy shares from a trim to hold rating on Tuesday.

The broker said:

A good company in a difficult position, dealing with multiple operational issues, albeit enjoying a nice bump in earnings resulting from the Middle East conflict.

Operator LLOG advised of ongoing operational issues leading to a 41% downgrade to Who Dat production in 2026, an 11% downgrade at group level. Down 20% in two sessions, KAR is trading close to our revised target price.

As a result, we lift our Trim rating to HOLD with a A$1.67 target price.

Morgans has a 12-month price target of $1.90, which implies very healthy upside of 35% ahead.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price is $4.78, down 0.6% today.

Over the past month, this ASX wine share has risen 10%.

Citi upgraded Treasury Wine Estates shares to a buy rating on Tuesday.

The broker lifted its 12-month price target from $4.25 to $5.50.

This implies a potential 15% upside ahead.

Liontown Ltd (ASX: LTR)

The Liontown share price is $1.96, down 4.1% today.

In 2026, this ASX 200 lithium share has gained 21% in value.

Lithium commodity prices are rapidly recovering from a devastating two-year decline.

The carbonate price is now 43% higher YTD, following a 58% rise in 2025.

Macquarie upgraded Liontown shares to a buy rating on Monday.

The broker lifted its 12-month price target from $2.20 to $2.30.

This implies a potential 17% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is $12.55, down 5% today.

In 2026, this ASX 200 gold share has dipped 1%.

Macquarie upgraded Evolution shares to a buy rating on Tuesday.

The broker shaved its 12-month price target from $14 to $13.

This suggests just 3% potential upside ahead.

Sims Ltd (ASX: SGM)

The Sims share price is $29.45, down 1.8% today.

Over the past month, this ASX industrial share has ripped 31%.

Jefferies upgraded Sims shares to a hold rating on Wednesday.

The broker lifted its 12-month price target from $19 to $31.

This indicates a potential 6% upside over the next year. 

Accent Group Ltd (ASX: AX1)

The Accent share price is 73 cents, down 0.7% today.

Over the past month, this ASX consumer discretionary share has soared 31%.

On Monday, Frasers Group plc (LSE: FRAS) made an unconditional on-market cash takeover offer of 65 cents per share.

Following the bid, Morgan Stanley upgraded Accent shares to a hold rating.

The broker has a 12-month target of 75 cents.

This suggests the ASX retail share is almost fully valued.

The post 6 ASX shares upgraded by analysts this week appeared first on The Motley Fool Australia.

More reading

• 7 ASX gold stocks to buy now
• 5 things to watch on the ASX 200 on Friday
• Buy, hold, sell: Liontown, Wildcat Resources, PLS Group shares
• This crushed ASX wine stock could surprise investors
• Is the ASX takeover target a buy?

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are charging higher on Friday after the company returned from a trading halt with a major contract update.

At the time of writing, the EOS share price is up 14.24% to $10.67.

That adds to what has already been a huge run for the defence company. Its shares are now up around 22% over the past month and almost 300% higher than this time last year.

Let’s take a closer look at the announcement.

US$124 million order lands

According to the release, EOS said it has received a US$124 million order for its Slinger counter-drone remote weapon system (RWS).

The order has come from Generation 5 Holding LLC, or Gen5, which is a UAE-based company headquartered in Abu Dhabi.

Gen5 is 100% owned by Odeley Investments, which is a private office of defence equipment, technology, and services.

The order includes the RWS, cannons, spares, training, and other supplies.

EOS said the systems are being supplied against a backdrop of ongoing regional tensions in the Middle East.

The company also described Slinger as the leading product in its counter-drone defence offering.

The systems are expected to be manufactured in Australia and the UAE, with delivery planned across 2027 and 2028.

The order is still subject to Gen5’s customary terms, as well as export approval requirements.

A new Middle East joint venture

In addition to the contract news, EOS also announced a conditional joint venture shareholders agreement with Gen5.

The proposed 50/50 venture would be based in Abu Dhabi, and would focus on high-energy laser weapons (HELW) and RWS across the Middle East and North Africa.

Under the arrangement, Gen5 is expected to contribute US$40 million of equity. EOS would contribute intellectual property covering laser and RWS technology.

The joint venture is expected to focus on developing and selling next-generation 200kW to 300kW HELW. It would also handle manufacturing and distribution of certain existing EOS systems, including the R400, R500, and R800, in the UAE and selected markets.

What comes next?

EOS expects work on the joint venture to continue during 2026, with the venture potentially starting to contribute to results from 2027 or 2028.

But the announcement includes some big targets. Gen5 and EOS are aiming to secure a minimum US$250 million order for the 200kW to 300kW laser weapon product within 12 months.

They are also targeting a minimum US$290 million contract within 9 months for 100kW laser weapons to be developed through the joint venture.

The post This ASX defence stock just jumped 14%. Here’s the big news appeared first on The Motley Fool Australia.

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• SpaceX climbs nearly 20% after its IPO. Here’s why that is good news for these ASX shares
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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 positions in and has recommended Electro Optic Systems. 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.

If you are hunting outsized returns for your portfolio and have a high risk tolerance, then read on.

This article looks at one ASX share that Bell Potter believes could more than double in value over the next 12 months.

Which ASX share?

The stock that Bell Potter is bullish on is Paradigm Biopharmaceuticals Ltd (ASX: PAR).

It is an Australian biotechnology company focused on repurposing Pentosan Polysulfate Sodium (PPS) under the brand name Zilosul for the treatment of osteoarthritis (OA) in the knee.

Bell Potter notes that the global market for a safe, effective treatment that provides superior patient outcomes compared to the standard of care is a multiple blockbuster.

The good news is that the recently completed phase 2 study produced some highly encouraging results that it believes are worthy of further clinical trials.

Speaking of which, Bell Potter points out that enrolment for a phase 3 trial is now complete. It said:

PAR has achieved a key milestone in the development of iPPS for the treatment of osteoarthritis of the knee with the announcement of completion of enrolment of the first of its Phase 3 clinical trials. Enrolment was extended to 538 participants – 72 more than anticipated following a period of rapid enrolment in Japan and Moldova. Numerous patients had met the enrolment criteria and it was decided to include these for ethical reasons with the added benefit of increasing the powering of the study.

Bell Potter was impressed with the way that management completed this enrolment in a cost-efficient manner. It adds:

PAR has been phenomenally cost-efficient spending a mere A$27m on PARA_OA_012 over the course of the first 9 months of FY26 during which it completed 50% enrolment, with remaining participants (~300) enrolled in a little over 2 months since 31 March. This rapid enrolment has been a function meticulous planning and the exhaustive clinical program in the period leading into the phase 3 trial where the clinical outcomes had consistently indicated highly effective reduction in pain (when dosed at the 2mg/kg twice weekly dose) with an attractive adverse event profile.

Big potential returns

According to the note, the broker has retained its speculative buy rating on the company’s shares with a reduced price target of 45 cents (from 65 cents).

Based on its current share price of 17 cents, this implies potential upside of more than 160% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

Enrolment is complete and PARA_OA_012 is in the home straight, now awaiting interim and headline data in the coming months. Following the recent cap raise, the company has $40m in notional cash inclusive of undrawn credit with a further $5.4m from R&D tax refund also due in the coming months. Cash burn is currently $11m/qtr and expected to step down over the next 6 months as participant screening and recruitment reduces to nil. The company will require significant additional funding for a confirmatory Phase 3, however, the upcoming data will be instrumental to valuation.

The post Bell Potter says this ASX share could rise 150%+ appeared first on The Motley Fool Australia.

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• Why are EOS shares rocketing 20% 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 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.

Supermarket giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have been locked in a rivalry for decades.

From grocery prices and product ranges to revenue growth and share price performance, the two retailers compete across nearly every corner of Australia’s supermarket sector.

In recent weeks, both ASX supermarket shares have delivered strong gains, but the pace has been closely matched. Woolworths shares are up around 12% this month, while Coles shares have risen roughly 10%.

However, the story looks very different when zooming out to the 2026 performance so far.

Woolworths: Strong rebound, valuation questionable

Woolworths shares have staged a solid recovery this year, rising around 30% year to date. That strength reflects improving investor sentiment after a period of operational and cost-related challenges, as well as renewed confidence in the company’s core supermarket operations.

The market has also responded positively to signs of stabilising margins and a more disciplined approach to capital allocation. Woolworths remains the dominant player in Australian grocery retail, giving it scale advantages in procurement and distribution.

However, not all analysts are convinced the recent rally can continue.

Bell Potter is currently cautious on Woolworths shares, assigning a hold rating. The broker has set a price target of $35.50, which sits below the current share price of $38.12.

From an income perspective, Bell Potter expects Woolworths to pay dividends of 91 cents per share in FY26 and 94 cents in FY27. This translates to forward dividend yields of approximately 2.4% and 2.5%, respectively.

For investors, this suggests Woolworths may be trading ahead of fair value following its strong run.

Coles: Steadier growth and dividend appeal

Coles shares have also performed well, though their gains have been more modest than Woolworths’. The stock is up around 9% so far in 2026.

Unlike Woolworths, which has seen a sharper rebound, Coles has delivered a more gradual and steady performance profile, reflecting its reputation as a defensive, operationally disciplined retailer.

Investors continue to favour Coles for its consistent execution, stable earnings base, and reliable dividend profile. While it lacks Woolworths’ scale advantage, it has built a reputation for efficiency and steady returns.

UBS remains positive on Coles shares, maintaining a buy rating with a $25.50 price target. Based on the current share price of $23.37, this implies potential upside of approximately 9%.

From an income perspective, UBS forecasts dividends of 77 cents per share in FY26 and 89 cents in FY27. This equates to forward dividend yields of approximately 3.3% and 3.8%, respectively.

Buy, hold, or sell?

Both Woolworths and Coles remain high-quality ASX supermarket shares with strong market positions and reliable earnings.

However, they are currently offering very different investment profiles. Woolworths appears to be priced for growth following a strong rally, while Coles offers a more attractive dividend yield and modest upside, according to analysts.

For investors, the decision may come down to whether they prefer Woolworths’ dominant scale or Coles’ steadier income-focused profile.

The post Woolworths shares vs Coles: Buy, hold, or sell these ASX giants? 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.

The CSL Ltd (ASX: CSL) share price has seen a very painful last 12 months, as the chart below shows. It’s not normal for an ASX 200 healthcare share to fall that much over a relatively short time period.

At the time of writing, the CSL share price has declined by 55% in the past year. Theoretically, if it were to go back to that previous level, it would need to rise around 125%.

Of course, we shouldn’t anchor our thoughts to a previous CSL share price. Just because it was at that price before doesn’t mean it’s going to go back there in the foreseeable future.

But, the CSL share price will move in the coming weeks and months. Let’s see what analysts think will happen.

Expert views on the CSL share price

A number of analysts have had their say on the business over the last three months. Considering the huge decline of the CSL share price, it’s not surprising that the business has had analysts lining up to give their view.

In the past three months, there has been 11 ratings on the business. Of those 11 ratings, three ratings were a buy and eight were a hold. So, on average, the investment community are neutral on the the business, though there are a few positive ratings on the ASX healthcare share too.

A price target is also a very interest aspect to look at. Price targets aren’t guarantees of future returns. Rather, they’re analyst expectations about where share prices will be in 12 months from the time of the investment call.

The average price target on the CSL share price of those 11 ratings is $135.80, which suggests a possible rise of 27% over the next year, at the time of writing.

The most optimistic price target is $234.62, suggesting a huge possible rise of approximately 120% in the year ahead.

But, not every analyst is convinced that the declines have finished. One analyst has a price target $99.79, which implies a possible decline of more than 6% from where it is at the time of writing.

What’s the valuation?

According to the earnings projection on CMC Invest, the company’s forward price/earnings (P/E) ratio suggests the business is trading at around 12x FY26’s estimated earnings.

The forecasts then suggest profit could slightly rise in FY27 and then another 6% in FY28. If earnings can indeed rise, then the CSL share price could be very good value today. But, there are other ASX share names that could deliver stronger earnings growth over the rest of the decade.

The post How much could the CSL share price rise in the 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 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.

Looking at the AGL Energy Ltd (ASX: AGL) share price today, it might appear that there is a lot to like.

For one, AGL shares look fairly beaten down. At a share price of $8.53 at the time of writing, this energy generator and retailer is down about 8.5% year to date in 2026. It’s also down about 20% from its February peak of over $10.60 a share, and 17.4% from where it was this time last year.

AGL is even in the red over a five-year period by about 8.6%.

For another, the company is seemingly trading on a dividend yield of 5.73%. That’s significantly higher than what most ASX blue-chip stocks are offering right now. Heck, it’s almost double the yield of Commonwealth Bank of Australia (ASX: CBA). Plus, AGL’s last few dividends have come with full-franking credits attached, meaning that the yield grosses up to an eye-catching 8.19% if we include the value of those credits.

AGL is also a company that sells services that we tend to need to spend money on. Even if money is tight, the last thing to go out of the household or company budget would be electricity and gas.

Unfortunately, we have to consider some complications as well, though.

AGL share price: Should we buy today?

Yes, AGL has all of these things going for it. However, it is a company that is in the eye of a storm of disruption. The energy market is shifting rapidly, with ageing coal-fired power stations being steadily replaced by renewable energy projects and large-scale batteries. Unfortunately for AGL, it has to fund and manage much of this transition, which comes with a plethora of uncertainties

AGL also must handle government regulation of the energy market, as well as the complex National Electricity Market pricing system.

Operating in this not-so-free market has its downfalls. To illustrate, here’s some of what ASX broker Ord Minnett recently stated about the AGL share price:

Battery-capacity additions are now running at close to double the pace implied by system requirements to 2030, meaning anticipated needs are likely to be met as early as 2027. Many of the coal-fired power station closures assumed in long term planning, however, have yet to occur. This timing mismatch has materially reduced volatility across the electricity market, and is evident in lower gas demand from power generation, a sharp fall in capacity contract prices, weaker frequency control ancillary services revenue, and narrower intraday price spreads.

Thus, AGL can be viewed as a cyclical stock with an uncertain future. As such, its dividends arguably cannot be considered at the high end of the ASX’s income reliability spectrum.

AGL is an important company in Australia and will likely remain so for the foreseeable future. And when the stars align, it does have a lot of dividend potential. Thus, AGL could conceivably have a comfortable place in a diversified portfolio that prioritises maximising franked dividend income.

As this isn’t a primary goal of my portfolio, I won’t be buying AGL shares at their current level anytime soon.

The post Is the AGL share price a buy at $8.50 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

Although the gold price has pulled back from its high, it is still at elevated levels compared to where it has been over the past decade.

This means that ASX gold stocks are continuing to generate strong cash margins and deliver bumper profits.

In light of this and recent weakness in the gold industry, now could be a good time to look for exposure to this side of the market.

But which ASX gold stocks could be buys? Let’s look at seven that Bell Potter currently rates as buys.

Tailwinds re-emerging

Before looking at the gold miners that could be buys, let’s hear what Bell Potter is saying about the gold price.

The good news is that the broker believes the precious metal could strengthen as tailwinds re-emerge. It explains:

The last few months have seen markets reacting to Presidential social media posts more than fundamentals. We are now looking for the drivers that may re-emerge for the gold price, with a bit of clear air. In the first instance we see opportunities for:

Central Banks purchasing remains a price insensitive tailwind. The World Gold Council’s annual survey of Central Bank purchasing intentions reinforces they remain positive on gold, highlighting its significance as a reserve asset in a volatile geopolitical and economic environment.

Iran conflict continues on a trajectory to resolution: The war in Iran has been pushing oil / real yields higher and gold lower. We expect a deescalation to do the reverse. While it is a bumpy road, we expect the trend to remain towards a ceasefire / peace deal. Gold equities have pulled back but balance sheets, margins and exploration momentum remain strong. Quality companies and projects are attractive.

The ASX gold stocks to buy

The seven ASX gold stocks that Bell Potter is bullish on are as follows:

The broker has a buy rating and $2.10 price target on Alkane Resources Ltd (ASX: ALK) shares.

Catalyst Metals Ltd (ASX: CYL) shares have been given a buy rating and $14.60 price target.

Bell Potter rates Capricorn Metals Ltd (ASX: CMM) shares as a buy with a $16.25 price target.

Gold giant Evolution Mining Ltd (ASX: EVN) has been given a buy rating and $16.45 price target.

Bell Potter has a buy rating and $9.90 price target on Genesis Minerals Ltd (ASX: GMD) shares.

Minerals 260 Ltd (ASX: MI6) shares have a buy rating and $1.35 price target on them.

Finally, the broker rates ASX gold stock Regis Resources Ltd (ASX: RRL) as a buy with a $9.45 price target.

The post 7 ASX gold stocks to buy now appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares 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 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 ASX share market is a wonderful hunting ground to find ideas that can provide enormous dividend yields.

The passive income can be particularly attractive thanks to a combination of a low valuation, a rewarding dividend payout ratio and potentially franking credits.

I’m going to highlight two businesses that are delivering large dividend yields.

Centuria Office REIT (ASX: COF)

This business describes itself as Australia’s largest listed pure play office real estate investment trust (REIT). It says it owns a portfolio of high-quality office assets situated in core submarkets throughout Australia.

Office properties are not exactly a ‘hot’ sector. But, I think this business is deeply undervalued.

Its FY26 third quarter update was very promising – it reported a four-year weighted average lease expiry (WALE) of four years with an occupancy rate of 90%. That means it’s generating a significant level of rental income from its portfolio.

But, the most pleasing element of the ASX share’s update on the rental side was that it announced 5,742sqm of lease terms agreed, with an 8.6% re-leasing spread. In other words, the new rental contracts are generating 8.6% more rental income than the old contracts. This could bode well for future rental contracts.

It also noted it had refinanced $1 billion of debt, with a 30 basis point (0.30%) reduction of debt margins, while the debt expiry was extended to 4.3 years.

For me, one of the main reasons why it has such a large dividend yield and why it looks undervalued is because it’s trading at a massive discount to its reported underlying value. It reported net tangible assets (NTA) of $1.72 as at 31 December 2025 – it’s trading at a 47% discount to this.

The fund manager of the REIT, Belinda Cheung, recently said:

Looking ahead, we maintain an optimistic outlook for the Australia metropolitan office markets across the medium term. Diminishing forecast supply has been further impacted by rising rates and inflation and is expected to amplify the significant disconnect between replacement costs and current valuations. The widening gap of economic rents to prevailing market rents not only prohibits feasible office development but provides ample room for current market rents to continue to grow and underpin future valuations, reinforcing the relative value of existing high-quality, well-located office assets.

It’s generating real rental profit and paying large distributions with that rental income. Its FY26 annual distribution translates into a distribution yield of 11%.

GQG Partners Inc (ASX: GQG)

The other ASX share I want to highlight is the fund manager GQG, which, up until recently, had an excellent long-term track record of investment returns.

Following a 40% decline since July 2025, I think the ASX share is now very cheap with a single-digit price/earnings (P/E) ratio.

While the company is still experiencing fund outflows, that pace of the outflows have reduced and if it can deliver positive investment returns then its funds under management (FUM) could still climb, despite the headwind of outflows.

I believe the market is mispricing the potential of GQG to start achieving positive net inflows again.

The ASX share’s latest quarterly dividend of AU 4.878 cents translates into a dividend yield of 3.4%. Annualised, that’s a dividend yield of 13.4%. That’s a huge yield! The dividend returns alone could outperform the S&P/ASX 200 Index (ASX: XJO) for the foreseeable future.

The post 2 ASX shares with dividend yields above 10% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: PEXA Group, Domino’s Pizza, GQG Partners shares
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• Morgans says these ASX shares could deliver 23% to 60% returns
• Here are the top 10 ASX 200 shares today

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 recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett has long favoured businesses that can stay strong for a very long time.

One way to think about this is through the idea of a moat.

A moat is the defence around a business. It is what makes it hard for competitors to come in, steal customers, crush margins, or copy the model.

That moat can come from a powerful brand, scale, patents, network effects, customer loyalty, cost advantages, or products that are painful to replace once they are embedded.

Its value is that it can give a company more time, more pricing power, and more room to keep earning attractive returns.

Fortunately, ASX investors do not have to identify every moat stock themselves. These two ASX exchange traded funds (ETFs) are built around that idea.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

One way to put the moat idea to work is through the VanEck Morningstar Wide Moat ETF.

This fund focuses on US companies that have durable competitive strengths, while also taking valuation into account.

That second part is important. A great business can still be a poor investment if the price is too high.

The portfolio can look quite different from a standard US index fund. Holdings currently include Fortinet (NASDAQ: FTNT), NXP Semiconductors (NASDAQ: NXPI), and NVIDIA (NASDAQ: NVDA).

That mix shows the fund is not trying to follow one theme. Fortinet gives exposure to cybersecurity, NXP sits inside the semiconductor supply chain, and NVIDIA remains one of the most important companies in advanced computing and artificial intelligence.

The common thread is not the industry. It is the idea that each business has characteristics that may help it defend its economics over time.

For investors who want a more selective way to own US shares, this ETF could be a top option.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

Another ASX ETF that uses the same philosophy is the VanEck Morningstar International Wide Moat ETF.

This fund gives investors exposure to moat-style companies outside Australia, creating a wider opportunity set than the local market can offer.

Its holdings currently include Murata Manufacturing (FRA: MUR1), Etsy Inc (NYSE: ETSY), and Novo Nordisk (NYSE: NVO).

These companies are very different from one another. Murata is tied to electronic components, Etsy operates an online marketplace, and Novo Nordisk is a global healthcare leader.

But that is part of the appeal of this type of fund. It is not trying to tell investors that one sector will dominate the next decade. It is trying to find businesses with strong positions that may be able to keep earning good returns across different industries and markets.

That can make the fund useful for investors who like the Warren Buffett idea of owning quality businesses, but want more geographic variety than a US-only approach.

The post Invest like Warren Buffett with these top ASX ETFs appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Etsy, Fortinet, NXP Semiconductors, Novo Nordisk, and Nvidia. The Motley Fool Australia has recommended Nvidia, VanEck Morningstar International Wide Moat ETF, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors’ portfolios will have a strong allocation to the large banks and miners that dominate the ASX 200. 

The market cap of several companies has a big impact on Australia’s benchmark index. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 2% in 2026. 

This is far below the historical average. 

However some of the biggest ASX companies have outperformed this in 2026. 

Let’s see which blue-chips have outperformed the market this year. 

Materials leading the way 

The S&P/ASX 200 Materials (ASX: XMJ) index has far outperformed the ASX 200. 

It has risen by over 20% year to date. 

This has been led by the two largest materials companies: 

• BHP Group Ltd (ASX: BHP) shares have risen 42% year to date
• Rio Tinto Group Ltd (ASX: RIO) shares are up 24%. 

This outperformance has been driven by a broad rally across iron ore, copper, and gold, supported by a weaker US dollar, falling bond yields, and improved sentiment following the Iran peace deal.

Bank shares disappoint 

The big four bank shares have all underperformed this year. 

The best performer has been Commonwealth Bank Of Australia (ASX: CBA) which is essentially flat year to date. 

Meanwhile, the remaining three have all fallen between 3% and 12%. 

Looking outside the big four, a blue-chip bank stock that has performed well has been Macquarie Group Ltd (ASX: MQG), which is up 24% for the year to date. 

Another blue-chip stock that has performed well (outside of banking) has been Wesfarmers Ltd (ASX: WES). 

Its defensive profile has held up well amidst broader market headwinds. 

How to avoid over concentration 

While these companies dominate the ASX 200, there is also a risk that investors become overconcentrated on just a few companies. 

Many investors could end up overly exposed to banks or miners without realising, by owning individual stocks as well as ASX ETFs that are heavily weighted towards the same shares. 

In case you are unaware, the big four banks and BHP account for over 32% of the entire ASX 200. 

One way to avoid this is with an equal weighted ASX ETF such as the VanEck Vectors Australian Equal Weight ETF (ASX: MVW).

It provides a more balanced and diversified approach to the Aussie market. 

It aims for true diversification by equally weighting across companies and reducing sector concentration.

MVW has less exposure to the mega-caps that dominate the S&P/ASX 200 Index compared to many Australian equity portfolios. MVW is underweight mega cap companies and overweight those large companies outside the mega-caps. Relative to the S&P/ASX 200, MVW has a higher weighting to stocks outside the top 15.

The post Which Aussie blue-chip stock is the best performer so far in 2026? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers shares have surged 20% in a month. Buy now?
• Warning! 5 ASX stocks to fall 20% or more: Experts
• 4 ASX 200 shares downgraded by brokers this week
• Macquarie shares hit another record high. Has the rally gone too far?
• Why has the ASX 200 given up its early rebound today?

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