Tag: Stock pick

When I’m looking for cheap shares on the S&P/ASX 200 Index (ASX: XJO), I’m not just chasing low valuation multiples or stocks that have fallen sharply. 

What I really want are high-quality businesses where the share price has weakened more than the long-term investment case has deteriorated.

Right now, there are a few ASX 200 names where sentiment looks overly pessimistic to me. These are three that I would genuinely consider at current levels.

CSL Ltd (ASX: CSL)

CSL is one of those rare companies that almost never looks cheap, which is why the current share price stands out. The biotech stock has been under pressure as investors reacted to a cacophony of headwinds hitting at once. This includes a slower CSL Behring margin recovery, weak US influenza vaccine sales, and albumin softness in China.

However, the long-term story still looks intact to me. CSL remains dominant in its key immunoglobulins market, continues to invest heavily in capacity and R&D, and has a long history of working through short-term disruptions.

At today’s share price, market expectations are clearly very low. For a business of CSL’s quality, that is often where longer-term opportunities start to emerge for investors.

Amcor Plc (ASX: AMC)

Amcor is a stock that I think the market is overlooking. Ongoing volume weakness has weighed on the share price.

What changes the picture for me is the acquisition of Berry Global. This was a genuinely game-changing transaction, creating a global packaging leader with significantly greater scale, broader customer relationships, and improved exposure across flexible and rigid packaging markets.

Execution will matter, particularly around integration and cost synergies. But if management delivers, the combined group has the potential to generate stronger cash flows and more resilient earnings than Amcor could on its own. At current levels, I think the market is still heavily discounting that longer-term upside.

James Hardie Industries Plc (ASX: JHX)

James Hardie has been caught up in concerns about the US housing cycle, higher interest rates, slowing construction activity, and the large acquisition of Azek. That has pushed the share price down sharply.

Yet the business remains a clear leader in fibre cement products, with strong brand recognition and meaningful exposure to repair and renovation activity. Housing cycles turn, and when they do, James Hardie has historically been well placed to benefit.

If US housing conditions stabilise over time, the earnings leverage in this business could become very apparent from current levels.

Foolish Takeaway

When I look at the quality of these businesses against the expectations implied by their current share prices, all three look more attractive to me than they have in quite a while.

For patient, long-term investors, that’s often where the best opportunities begin to form.

The post 3 ASX 200 shares that look like cheap buys to me appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Here are the latest growth forecasts for the CSL share price
• Buy, hold, sell: CSL, CBA, and Rio Tinto shares
• The best Australian shares to buy in 2026
• $10,000 in these ASX dividend shares pays how much passive income?

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 positions in and has recommended Amcor Plc. 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.

The Australian share market has had a subdued start to 2026, with many stocks struggling to gain traction over the past few weeks. But there are some Australian stocks which analysts have tipped to rocket in 2026.

Here are three of them, all tipped to climb by more than 100% in the next 12 months!

WiseTech Global (ASX: WTC) 

The WiseTech share price is 1.94% higher in Tuesday afternoon trade. At the time of writing, the shares are changing hands for $63.09 each. That’s a 7.99% decline for the year so far, and a huge 47.28% below where the stock was trading at this time last year.

A number of headwinds have put the logistics software provider’s stock under pressure in 2025, but WiseTech still has strong growth potential ahead of it this year.

The business is strong; it is continually expanding its operations and has a proven track record of company growth, even amid volatility. 

Analysts are incredibly bullish about the outlook for the tech shares. TradingView data shows that 12 out of 14 have a strong buy rating on the stock, and another has a buy rating. The maximum target price is $175.65, which implies the shares could jump a whopping 178.28% this year, at the time of writing.

EBR Systems Inc (ASX: EBR)

EBR Systems is a Silicon Valley-based medical device company that has developed Wireless Stimulation Endocardially (WiSE®) technology. It is the world’s only wireless, leadless left ventricular pacing device for heart failure patients.

The technology helps to treat individuals with cardiac rhythm diseases by sending electrical stimulation directly to the heart. It conducts operations in the US, but it’s primary listing is on the ASX.

At the time of writing, its shares are down 3.19% to 91 cents each. It means the shares are now 48.59% below where they were this time last year.

The Australian stock has reached some excellent milestones over the past year, including the first implant of its WiSE technology and strong Q4 FY25 commercial and clinical progress. 

Analysts are bullish on the outlook of EBR Systems in 2026. TradingView data shows all four analysts have a strong buy rating, with a maximum target price of $2.97 a piece. That implies a potential 226.12% upside at the time of writing. Even the minimum target price of $2.43 implies a potential 167.32% upside in 2026.

Zip Co Ltd (ASX: ZIP)

Zip shares have had a disappointing start to 2026 so far. The shares are down 2.14% today to $2.98 a piece. For the year to date, the stock has dropped 11.19% and it’s now 5.08% below this time last year.

But I think the latest decline represents a great opportunity for investors to get into high-quality stock at a cheap price.

Zip has posted some strong financial results over the past few quarters, and the business has some great growth plans in place for 2026. 

The company is expected to post its FY26 half-year results in February, at which point investors will find out if the company is still on track. Good news could push the share price higher over a short period of time. I think the stock is a screaming buy for 2026.

Analysts are optimistic too. TradingView data shows that 9 out of 11 analysts have a buy or strong buy rating on the stock. The maximum target price is $6.72, which, at the time of writing, implies a potential 126.26% upside ahead over the next 12 months. 

The post 3 Australian stocks tipped to grow 100% (or more) in 2026 appeared first on The Motley Fool Australia.

More reading

• Morgans names 3 ASX shares to buy
• Why experts have put buy recommendations on these ASX shares
• The best Australian shares to buy in 2026
• Top brokers name 3 ASX shares to buy next week
• Forget PLS shares! This ASX growth stock is tipped to rise 60% by 2027

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

The Coronado Global Resources Inc (ASX: CRN) share price is under heavy pressure today, making it one of the ASX’s worst performers.

At the time of writing, the Coronado share price is down 8.78% to 44.7 cents, wiping out a chunk of recent gains. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.7%.

Despite today’s sharp fall, Coronado shares are up almost 40% so far in 2026, supported by a strong rally in metallurgical coal prices.

So, what’s going on?

A sharp pullback after a strong run

Coronado’s share price has staged a solid rebound over recent months, tracking the recovery in met coal markets.

However, after such a fast move higher, the stock appears to be taking a breather. Today’s decline looks more like a pullback than a breakdown, especially given the broader context.

Coking coal, also known as metallurgical coal, is down 0.61% today, according to Trading Economics, but remains up around 13% over the past month. That suggests prices may simply be pausing after a strong rally, rather than starting a sustained decline.

Met coal remains the key driver

Coronado is a pure-play metallurgical coal producer, supplying coal used in steelmaking rather than power generation.

Demand for met coal is closely tied to global steel production, infrastructure spending, and industrial activity. Over recent months, improved sentiment around steel demand and tighter supply conditions have helped lift prices.

As long as met coal prices remain elevated compared to last year’s lows, Coronado’s earnings outlook looks much stronger than it did in 2025.

What the charts are saying

From a technical point of view, Coronado shares were looking a bit stretched before today’s fall.

The relative strength index (RSI), a momentum indicator, had moved into the high 60s and low 70s. That often signals a stock may be due for a pullback.

On the chart, support sits around the low 40-cent level, with stronger support closer to 38 to 40 cents. If selling pressure continues, those levels will be worth watching.

On the upside, resistance remains near 50 cents, which has capped recent rallies.

Coronado also has a high beta, meaning it tends to move more sharply than the broader ASX market. That helps explain why the share price has fallen so sharply today.

Foolish Takeaway

Today’s sell-off is painful, especially for short-term holders.

But Coronado’s strong gains in 2026 show how quickly sentiment can change when coal prices move. If met coal prices remain firm, today’s drop may turn out to be a short-term setback rather than a downward trend.

The post Why is the Coronado share price tanking 9% today appeared first on The Motley Fool Australia.

More reading

• Up 16% in 2026 already – is this ASX small-cap a buy?
• Investors are buying this ASX coal stock again today. Here’s why
• Coronado shares surge 12% after Monday’s sell-off
• Why 4DMedical, Coronado Global, Metallium, and WiseTech Global shares are falling today
• Coronado shares plummet after mine fatality in Queensland

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

Commonwealth Bank of Australia (ASX: CBA) shares are 0.69% higher at $150.51 each at the time of writing on Tuesday.

It’s a welcome reprieve from the multiple share price declines the banking giant has endured over the past few months. 

For the year-to-date, CBA shares are now down 6.57%. They’re 5.49% below the share price this time last year, and 21.3% lower than an all-time high in June last year.

In 2025, CBA shares enjoyed a fantastic rally, peaking at an all-time high of $192.00 per share in June. But the bank is facing strong headwinds right now that I think could keep pushing its share price lower.

CBA’s share price is significantly higher than other major Australian banks. It’s concerning because many experts don’t think the share price is supported by the bank’s earnings and core business strength. 

At the same time, CBA is facing ongoing net interest margin pressure due to intense market competition and regulatory changes. 

And not to mention, it looks like the Reserve Bank could keep the cash rate on hold for the foreseeable future, or even hike rates in 2026. This puts even more pressure on banks to compete.

I even think it’s possible that CBA shares could crash below $100 this year.

I’d buy this ASX bank stock instead

Analysts expect that all of the big four major banks’ shares will drop in 2026. Even sentiment on the smaller banks like Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Limited (ASX: BOQ) is bearish, with many analysts holding buy or sell positions.

But then there is Judo Capital Holdings Ltd (ASX: JDO). Judo Bank is an Australian bank which was built to focus on providing financial services and lending to small and medium enterprises (SMEs). These SMEs have annual turnovers of up to $100 million.

The bank was founded in 2016 and received its banking license in 2019, so it’s relatively new in comparison to the majors. It was listed on the ASX in 2021.

The bank provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.

Unlike its larger peers, the bank has had a strong start to FY26, and it looks set to continue. At its latest AGM, it said lending momentum was strong over the first quarter and that it’s confident it can achieve FY26 guidance of $180-$190 million.

At the time of writing, Judo Bank’s shares are up 0.27% to $1.88 a piece. For the year-to-date the shares are 4.17% higher, although they’re still 4.82% below this time last year.

The best part is analysts are incredibly bullish on Judo Bank shares. 

UBS recently said it rates Judo as a buy, with a price target of $2.20, implying a potential 17.83% upside over the next 12 months. The broker thinks the bank is well placed to meet FY26 targets. It also noted that its new business origination “looks strong”, with agriculture and regional lending doing a lot of the heavy lifting for its growth.

Some are even more optimistic. TradingView data shows 9 out of 10 analysts have a buy or strong buy rating on Judo Bank shares. Analysts have a maximum target price of $2.40. That implies a potential 28.34% upside from here!

The post Forget CBA shares: I’m buying shares in another Aussie bank appeared first on The Motley Fool Australia.

More reading

• Bye bye CBA: BHP is back as the ASX 200’s biggest stock
• UBS just rated ASX bank shares NAB, BOQ and Macquarie as a buy
• Buy, hold, sell: CSL, CBA, and Rio Tinto shares
• Here are the top 10 ASX 200 shares today
• 3 reasons to buy CBA shares in 2026 and one reason not to

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were lucky enough to have $5,000 sitting in cash right now, I would look to put it straight to work in the share market.

I’d focus on building a simple foundation, with one broad exchange-traded fund (ETF) to anchor the portfolio and one high-quality ASX business that I’d be comfortable holding through ups and downs.

This is how I’d do it today.

I’d start with a core ASX ETF

The first thing I’d buy is the iShares S&P 500 AUD ETF (ASX: IVV).

For me, this is still one of the easiest ways to get instant exposure to the share market without having to make dozens of individual decisions. It gives you tech giants, banks, miners, healthcare, retailers, and infrastructure in one hit, and it does so at a low cost.

I like the idea of using the IVV ETF as a core holding because it removes the pressure to constantly monitor news flow. You’re not betting on one company getting everything right. You’re backing the long-term growth of US businesses as a whole, while also picking up a reliable stream of dividends along the way.

If I were starting today, I’d happily put roughly half my $5,000 here and let it compound quietly in the background.

Then I’d add a high-quality ASX business

With the remaining capital, I’d look for a single, high-quality business that has both income and growth characteristics. One that fits that bill for me is Macquarie Group Ltd (ASX: MQG).

Macquarie isn’t a low-risk stock in the short term, but it is a business with a long track record of adapting to different market environments. Its earnings can fluctuate year to year, but over full cycles, it has consistently created value for investors through asset management, infrastructure, and capital markets.

What I like most is that you’re not just buying a bank. You’re buying a global financial services platform with exposure to energy transition, infrastructure investment, and alternative assets, all areas that continue to attract long-term capital.

On top of that, Macquarie has historically paid attractive dividends when conditions allow, which complements the income coming from an ETF like the iShares S&P 500 AUD ETF.

Why this simple mix appeals to me

This kind of split appeals to me because it balances simplicity with opportunity.

The ETF provides diversification and reduces the risk of getting a single stock call wrong. The individual share adds the potential for higher returns if the business executes well over time. Together, they form a portfolio that doesn’t rely on perfect timing or constant tinkering.

It’s not the only way to invest $5,000, and it certainly wouldn’t be the last investment I’d ever make. But if I were starting today and wanted something sensible, flexible, and built for the long term, this is a combination I’d feel comfortable owning. Sometimes the best portfolios are the ones you can stick with.

The post If I had $5,000 to invest on the ASX today, this is how I’d split it appeared first on The Motley Fool Australia.

More reading

• UBS just rated ASX bank shares NAB, BOQ and Macquarie as a buy
• One ASX 200 giant to buy, one to hold, and one to sell
• 5 fantastic ASX shares to buy for an SMSF
• How to make $24,000 in passive income a year
• How to build a $50,000 portfolio with ASX 200 shares

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As a new month approaches, I think it’s a sensible time to take stock of portfolio positioning and consider whether there are opportunities to strengthen the income side of a portfolio.

I’m not suggesting these are the only dividend shares worth owning, but if I were looking to add a mix of income, quality, and resilience, these are three ASX dividend stock names I’d be seriously considering right now.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle isn’t a traditional high-yield income stock. The current dividend yield of around 3.4% is modest, but it comes with genuine growth behind it.

Pinnacle operates a multi-affiliate asset management model, which gives it diversified earnings across a range of investment strategies and market conditions. As funds under management grow, dividends have the potential to grow alongside them. For investors who want income today but also care about what that income could look like in five or ten years, Pinnacle offers an appealing balance.

This is the kind of ASX dividend stock I’m happy to own early in its income journey rather than chasing yield later on.

Sonic Healthcare Ltd (ASX: SHL)

I see Sonic as an attractive option for dividends in February. With a yield of roughly 4.6%, it offers a solid income stream backed by a business that benefits from long-term structural demand rather than economic cycles.

Healthcare testing volumes can fluctuate year to year, but the underlying need for pathology and diagnostic services doesn’t disappear. Sonic’s global footprint also helps smooth earnings across different regions and healthcare systems.

I see Sonic as a classic defensive income holding. It may not deliver fireworks, but it can play an important role in stabilising a portfolio while still paying a respectable dividend.

Transurban Group (ASX: TCL)

Transurban is one of the most reliable dividend stocks on the ASX, in my view. With a dividend yield of around 4.9%, it offers a combination of scale, predictability, and inflation-linked revenue that’s hard to replicate.

Toll roads are long-life assets, traffic volumes tend to grow over time, and many of Transurban’s concessions include built-in price escalation. That makes its cash flows relatively resilient, even when economic conditions are uncertain.

For investors focused on income, Transurban often acts as a cornerstone holding. It may not be cheap, but quality infrastructure rarely is, and I think that premium is justified by the stability it provides.

Foolish takeaway

If I were building or topping up a dividend-focused portfolio heading into February, this trio would give me a mix of growth-linked income, defensive stability, and infrastructure-backed cash flows.

Together, I think they highlight an important point about dividend investing. It isn’t just about chasing the highest yield on offer, but about owning businesses that can keep paying and growing those dividends through different market conditions.

The post My 3 best ASX dividend-focused stocks to buy in February appeared first on The Motley Fool Australia.

More reading

• BHP and 4 strong ASX dividend shares for Aussie income investors to buy
• Here’s how you could turn the stock market into a $1,000 monthly passive income machine
• 5 ASX dividend shares to buy for an income boost
• Passive income: How to earn safe dividends with just $20,000
• 2 ASX shares to buy for growth and dividends

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and Transurban Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Wesfarmers Ltd (ASX: WES) share price is in the green in Tuesday lunchtime trade. At the time of writing, the shares are 2.23% higher for the day, at $84.65 a piece.

For the year-to-date, the shares are now 3.59% higher, and for the year, they are just over 12% higher. But after peaking at an all-time high of $94.76 in August last year, the Wesfarmers share price has dropped 10.83%.

What happened?

Following its peak in 2025, the Wesfarmers share price hopped around a little until the company’s annual general meeting in late October slashed investor confidence and triggered a sharp 15% sell-off. The update revealed that some of Wesfarmers’ business segments saw year-to-date growth, while others faced challenging trading conditions.

The share price has recovered some ground since then, but Wesfarmers was pushed back into the spotlight last week when the AFR reported that it had abruptly called off plans to support the largest franchisee in its Priceline pharmacy network, Infinity Pharmacy Group. 

In a later update, the AFR also said that Wesfarmers reportedly “accused the owner of the largest Priceline franchisee of embarking on a debt-fuelled acquisition spree even as the business teetered on the brink and was falling behind in paying suppliers”.

The news appeared to have temporarily knocked investor confidence, but it quickly rebounded. On Wednesday last week, the shares closed 2.65% lower for the day and have climbed over 4% since. 

All eyes are now on the company’s next update, scheduled for the 19th of February. 

What’s ahead for Wesfarmers in 2026?

Wesfarmers’ growth plans for 2026 centre on strengthening its core retail businesses while improving efficiency. It’s clear from this month’s news that management is willing to exit from a business that doesn’t fit the group’s long-term plans.

Wesfarmers is moving away from weaker assets and instead plans to allocate more capital to opportunities with the potential for higher returns.

The business also plans to continue improving its stores and product ranges across its key divisions, including Bunnings, Kmart and Officeworks.

Is the Wesfarmers share price a buy, hold or sell this year?

TradingView data shows that analysts aren’t too optimistic about whether Wesfarmers can deliver this year, though.

Out of 15 analysts, 7 have a sell or strong sell rating on Wesfarmers shares, and another 6 have a hold rating.

The average target price is $81.64, implying a 3.71% downside over the next 12 months at the time of writing. However, some analysts think the shares could fall another 24.96% to $63.60 over the next 12 months, and others are much more optimistic and expect the Wesfarmers share price to jump 18.01% to $100 per share.

The post Wesfarmers share price down 11% from its peak: Buy, hold or sell for 2026? appeared first on The Motley Fool Australia.

More reading

• 3 reason I would buy Wesfarmers shares today
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 5 fantastic ASX shares to buy for an SMSF
• 1 ASX dividend share set to excel long term, even while down 13%
• 5 ASX stocks to hold for the next decade

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

Markets are pricing in a 56% chance of an interest rate rise next week when the Reserve Bank Board meets for the first time in 2026.

The ASX rate tracker shows the market was factoring in just a 25% likelihood of a 25-basis-point rise early last week.

That changed on Thursday after new data showed a fall in Australia’s unemployment rate in December.

The ABS reported a 0.2% fall in the seasonally adjusted unemployment rate from 4.3% in November to 4.1% in December.

The market’s prediction of a February interest rate rise lifted dramatically to 60% on this news, before easing to 56% on Friday.

Lower unemployment indicates people have more capacity to spend.

The RBA may consider this problematic after resurgent inflation began showing up in the data late last year.

The Consumer Price Index (CPI) rose 3.8% over the 12 months to October, which was the fourth month in a row of price gains.

Annual inflation dipped back to 3.4% in November, and tomorrow, we’ll get the numbers for December.

Here’s what CBA is forecasting for inflation, and the implications for interest rates.

CBA forecast for inflation

In an update released today, CBA senior economist Trent Saunders said:

The December 2025 CPI release will be closely watched, given its importance for the near‑term monetary policy outlook.

We expect headline inflation to rise 0.3%/mth in December on a seasonally adjusted basis, with the annual inflation rate increasing to 3.8%.

The more policy-relevant quarterly trimmed mean CPI is expected to have risen by a firm 0.9%/qtr.

While this represents a modest step down from the 1.0%/qtr increase in Q3 2025, it remains well above the pace consistent with the RBA achieving its inflation target.

On an annual basis, trimmed‑mean inflation is expected to lift to 3.3%, from 3.0% in Q3 2025.

Saunders said the RBA is focused on the medium‑term inflation outlook and is concerned about underlying inflationary pressures.

In our view, this release is likely to confirm that these pressures remain strong.

Saunders concludes that it is likely the RBA will raise interest rates this year, and most likely next week.

We continue to expect the RBA totighten monetary policy in 2026, with the most likely timing for the first cash rate hike being February 2026.

A hike in February will hinge on both the size and composition of the inflation print, as well as the RBA’s assessment of the broader economic environment.

In 2025, the RBA cut interest rates three times in February, May, and August.

The RBA will announce its interest rate decision next Tuesday.

The post Interest rate rise narrowly ‘odds on’ for next week appeared first on The Motley Fool Australia.

More reading

• My 3 best ASX dividend-focused stocks to buy in February
• Wesfarmers share price down 11% from its peak: Buy, hold or sell for 2026?
• Buying silver? Here’s why you might want to think again
• Morgans names 3 ASX shares to buy
• Why the St Barbara share price is halted 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 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.

If you started 2026 hoping to buy silver, or even buy more of the precious metal, you probably wouldn’t be alone. As we discussed last week, the rise of silver has been one of the most shocking events on global financial markets in recent months.

Silver has risen from under US$31 an ounce in early 2025 to the latest record high of over US$117 for that same ounce that we’ve seen in just the past 24 hours. Yep, silver looks like it is on the verge of a quadrupling in value in just the past 12 months. This extraordinary run means that silver has outpaced gold, platinum, Bitcoin (CRYPTO: BTC) and almost every major stock market index in the world over the past year. Many silver shares have done even better.

As such, many investors out there might be thinking that silver might just be the hottest trade in 2026.

One can certainly see the appeal. Apart from the temptation to just hop on a bandwagon that has been so lucrative for investors, silver is a precious metal with many of the same attractions as gold. It has a finite supply, a history of underpinning and being used as money, and as a hedge against inflation, geopolitical uncertainty and financial instability more broadly.

Silver’s narrow supply, thanks to its nature as a byproduct of mining other commodities, also makes the metal vulnerable to sharp price movements. As we discussed regarding gold this morning, putting all of these factors together, one might conclude that there is still time to buy silver in early 2026.

Buying silver in 2026?

However, I don’t think the thesis for silver remaining a buy today is as strong as the one I posited for gold this morning. Any investor who is indeed considering buying silver bullion or a silver exchange-traded fund (ETF) today needs to keep one very important factor in mind.

One of the aspects that makes gold such a unique investment is its use profile. The vast majority of annual gold production goes towards one of two uses. The first is investment-grade bullion. The second, jewellery. In fact, industrial uses of gold only account for about 10% of global demand for the precious metal. This makes gold demand uniquely uncorrelated to the health of the economy amongst commodities. This is partly why gold is viewed as an effective safe-haven asset.

Silver does not share this characteristic, however. The white metal has a myriad of industrial uses. After all, silver is one of the best conductors of electricity on the periodic table, even better than copper. That makes it an essential ingredient of everything from circuit boards and solar panels to electric vehicles and data centres.

Right now, demand for these goods is soaring, which partially explains silver’s record run. However, if there were a recession tomorrow, its highly likely we would see a sharp reduction in the demand for industrial silver. This could lead to a sharp correction in the price of silver itself. Gold, which would not experience such a drop-off, would arguably be the better ‘safe haven’ asset to hold in such a scenario

Foolish takeaway

No one, particularly this writer, knows what will happen in 2026 when it comes to the global economy or the prices of gold or silver. But investors should keep in mind that gold and silver are two different asset classes, whose supply and demand curves are influenced by inconsistent factors. You don’t want to find out that you haven’t invested in a safe-haven asset the hard way.

The post Buying silver? Here’s why you might want to think again appeared first on The Motley Fool Australia.

More reading

• My 3 best ASX dividend-focused stocks to buy in February
• Wesfarmers share price down 11% from its peak: Buy, hold or sell for 2026?
• Interest rate rise narrowly ‘odds on’ for next week
• Morgans names 3 ASX shares to buy
• Why the St Barbara share price is halted today

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Looking for new portfolio additions but can’t decide which ASX shares to buy?

To narrow things down, let’s take a look at three shares that Morgans recently recommended to clients. They are as follows:

Guzman Y Gomez Ltd (ASX: GYG)

Morgans see a lot of value in this quick service restaurant operator’s shares at current levels. It has a buy rating and $32.30 price target on them, which implies potential upside of over 30%.

The broker was pleased with its latest limited time offer and feels that it could support the company’s margins given that it uses existing ingredients. It explains:

GYG has launched its latest limited-time offer (LTO): the BBQ Chicken Double Crunch (BBQ CDC). Early feedback suggests the item is one of GYG’s more indulgent menu items and taste tests have been overwhelmingly positive. The product leverages existing ingredients, meaning no incremental complexity or cost for stores, a margin-friendly innovation that aligns with GYG’s operational discipline. Management has repeatedly emphasised that menu innovation is a key lever for same-store sales (SSS) growth, and this launch reinforces that commitment. We reiterate our BUY rating.

South32 Ltd (ASX: S32)

Another ASX share that Morgans is recommending to clients is diversified miner South32. The broker has a buy rating and $5.00 price target on its shares, which suggests that upside of 11% is possible in 2026.

Morgans was pleased with the company’s performance during the second quarter and believes it is well-placed to benefit from strong commodity prices. It said:

2Q26 was a modest beat at a group level operationally. Supported by strong alumina and silver output. FY26 guidance on operated assets unchanged, Brazil Aluminium under review. We have applied updated house precious metal forecasts to our estimates. Post-Illawarra divestment, S32 is ~90% base metal producer with limited execution risk (ex-Hermosa) and enjoying a healthy (and material) upgrade cycle from copper, aluminium and silver prices. Positioned to benefit from the upcycle, we maintain our BUY rating with a A$5.00 Target Price (was A$4.30).

WiseTech Global Ltd (ASX: WTC)

A final ASX share that has been given the thumbs up by analysts at Morgans is WiseTech Global.

The broker has a buy rating and $112.50 price target on the logistics solutions technology company’s shares. This implies potential upside of over 75% for investors over the next 12 months.

It was pleased with the company’s investor day event late last year and remains confident in its growth outlook. Morgans said:

WTC’s FY25 investor day highlighted the group’s progress and broader outlook for a number of key near to medium-term growth initiatives, which in our view continues to see the group in a solid position to drive value. We retain our BUY rating, with a revised PT of $112.50ps.

The post Morgans names 3 ASX shares to buy appeared first on The Motley Fool Australia.

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