Tag: Stock pick

When share prices of great ASX shares fall, I view them as unmissable buying opportunities.

When a cyclical business like a miner or retailer falls, it can be difficult to know when it’s a good time to buy – I’d only want to invest when the share price seems to be at around the lowest point of an economic cycle. That should give investors a large margin of safety for good returns.

But, businesses that are consistently growing could be good buys today because it’s clear the forward price/earnings (P/E) ratio has declined to a more appealing number.

The two businesses I’ll highlight below are both trading at valuations that are far too cheap while delivering rapid underlying growth.

REA Group Ltd (ASX: REA)

REA Group is the owner of realestate.com.au, realcommercial.com.au, property.com.au, Mortgage Choice, PropTrack and other Australian-based property businesses. It also has investments in property-related businesses in India, the US and Canada.

As the chart below shows, the REA Group share price is down by almost 30% from August 2025.

I think this is a great opportunity to buy one of the best ASX shares that has built a very strong economic moat and a cash flow cow.

Its strong market position, with regular new features for property vendors, has allowed it to charge a sizeable amount to advertise a property on the portal.

The business has a clear advantage compared to its main rival. Realestate.com.au saw 147.9 million average monthly visits during the first quarter of FY26, 111.4 million more monthly visits on average than the nearest competitor.

That FY26 first quarter saw the business deliver 4% higher revenue, 5% higher operating profit (EBITDA) and 16% higher cash flow, despite there being an 8% decline in national buy listings.

With additional properties being built in Australia every year, REA Group’s total addressable market is increasing and I think this ASX share is an effective way to profit from the residential sector without having to own a property.

Using the projections on CMC Markets, the REA Group share price is valued at 38x FY26’s estimated earnings and less than 33x FY27’s estimated earnings.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that’s “focused on the information technology sector which is actively managed by an experienced team with demonstrated sector experience.”

The company provides exposure to a portfolio of IT companies with global addressable markets. These companies also have the ability to generate repeat revenue, have a proven business model with attractive unit economics, have international revenue generation potential and are founder-led.

Some of the areas that it looks to invest in are: software as a service (SaaS) and other subscription-based internet businesses, online marketplaces, software, e-commerce, high value data, online education and tech-enabled services.

Companies that it’s invested in include Siteminder Ltd (ASX: SDR), DASH, Updoc, Access Telehealth, Expedition Software, Rosterfy, PropHero and Hapana.

In FY25, Bailador’s companies delivered combined portfolio revenue of $592 million, with revenue growth of 47% over the prior 12 months. That’s an excellent revenue growth rate, in my view, and should help push the underlying value of these businesses higher as they continue to grow.

It’s trading at a large discount to its underlying value. Bailador said its pre-tax net tangible assets (NTA) – the portfolio value essentially – was $1.91 per share at November 2025. The Bailador share price is trading at a discount of close to 40%, at the time of writing, which is huge. The post-tax NTA discount is around 30%.

Considering the track record of Bailador and its underlying businesses, I think it’s trading far too cheaply.

The post These 2 great ASX shares are bargain buys! appeared first on The Motley Fool Australia.

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• 3 buy-rated ASX 300 shares at 52-week lows
• 3 Australian shares to buy and hold for 20 more years

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

S&P/ASX 200 Index (ASX: XJO) shares had a strong day on Friday, rising 1.23% to close at 8,697.3 points.

The strong rise capped off a sluggish week for the local bourse, which lifted 0.73% over the five trading days.

ASX shares were depressed earlier in the week after the Reserve Bank confirmed what we all expected — a hold call on interest rates.

Meanwhile, the US Federal Reserve cut rates by 0.25% for the third time in four months to support a slowing economy.

Looking ahead to 2026, brokers are issuing notes on which ASX shares to buy for the new year.

Here are a few examples.

ASX shares to buy for 2026

IGO Ltd (ASX: IGO)

The IGO share price closed at $7.12, up 2% on Friday and up 46.5% in the year to date (YTD).

Macquarie says IGO shares are a buy and the company is its key pick in the lithium segment.

Improving lithium prices prompted Macquarie to upgrade its assumptions for IGO’s earnings.

In a note last week, the broker said:

Incorporating updated commodity prices, FX and changes to our Kwinana costs assumptions drives 14-78% earnings uplift to FY26-FY28 while EPS are also increased by 1-6% for FY29 and FY30E.

Nufarm Ltd (ASX: NUF) 

Nufarm is a chemical and seed-technology company with customers all over the world.

The Nufarm share price closed at $2.20, down 0.9% yesterday and down 39% in 2025.

Morgans has a buy rating on this ASX agriculture share.

Following the company’s FY25 results, Morgans said:

While NUF’s FY25 result was weak, it was slightly above guidance.

Now that there is certainty on Seed Technologies future, industry operating conditions have improved and there is a clear pathway to deleveraging the balance sheet, we upgrade NUF to a Buy recommendation and A$3.20 price target.

Morgans has a 12-month price target of $3.20 on Nufarm shares.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price closed at $35.48, up 0.31% on Friday and up 4% in the YTD.

Jabin Hallihan from Family Financial Solutions says this ASX financial share is a buy.

On The Bull, Hallihan said strong fundamentals and margin recovery supported long-term growth for the private hospital operator.

Ramsay’s shares remain undervalued relative to our fair value estimate of $54, as we expect profitability to improve through higher indexation, digital efficiencies and easing wage pressures.

Capstone Copper Corp CDI (ASX: CSC)

The Capstone Copper share price closed at $14.93, up 3.7% yesterday and up 47% for the year.

Macquarie has a buy rating on the ASX copper share with a 12-month price target of $17.

In a note last week, the broker said Capstone is its preferred copper exposure.

The red metal’s price has lifted 38% in the YTD amid increasing demand due to the clean energy transition.

The broker said:

We increase CSC EPS 9%/18% in CY25/26e due to Cu price upgrades, remaining our preference in the Cu space due to its strong organic growth profile and attractive relative value.

The post Wondering which ASX shares to buy for 2026? Experts weigh in appeared first on The Motley Fool Australia.

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

There are a number of compelling ASX blue-chip shares that could be useful buys for retirees. Coles Group Ltd (ASX: COL) shares could be one of the best options, in my opinion.

There are plenty of reasons to like Coles as an investment. As a retiree, I’d want to have a high level of confidence that the dividend payments continue flowing year after year.

If dividend payments are key to funding someone’s life expenditure, then stability is essential!

Let me explain what makes it so appealing.

Good dividend yield

A good ASX dividend share should be competitive (or better) than a term deposit when it comes to the dividend yield.

A large dividend yield isn’t necessarily the only thing to look for, but it does mean the investment is unlocking a pleasing cash return each year.

In the 2025 financial year, Coles decided to pay annual dividend per share of 69 cents per share, an increase of 1.5% year-over-year.

At the current Coles share price, that represents a grossed-up dividend yield of 4.5%, including franking credits. That’s similar to the best rates offered by term deposits in Australia right now.

But, there’s another reason why Coles shares are an attractive pick for passive income for retirees.

Ongoing dividend growth

Coles is one of the few major ASX blue-chip shares that has increased its annual dividends each year since 2019. That’s one of the main advantages of owning shares over cash in the bank – the investment can deliver growth itself.

The business is predicted by analysts to continue this growth streak in the coming years.

Broker UBS projects that the business could deliver an annual dividend per share of 79 cents in the 2026 financial year and 93 cents per share in the 2027 financial year.

At the current Coles share price, this could mean the supermarket business delivers a grossed-up dividend yield of 5.1% in FY26 and 6% in FY27, including franking credits.

UBS predicts the supermarket business can continue growing its dividend in FY28, FY29 and FY30.

Why this is a good time to buy Coles shares

The Coles share price declined 8% since the end of August 2025, which is a sizeable decline for a business as defensive as Coles.

But, it’s not just a defensive play, in my view. It’s also growing at a reasonable pace.

In the first quarter of FY26, Coles overall sales (which includes the liquor sales) rose 3.9% to $10.96 billion, while supermarket sales rose 4.8% to $9.96 billion. In the supermarket division, sales rose 7% excluding tobacco.

Coles supermarkets are growing sales faster than rival Woolworths Group Ltd (ASX: WOW), with e-commerce sales being a key highlight. Coles supermarket FY26 first quarter e-commerce sales soared by 27.9% to $1.3 billion. But, it’d be unwise to expect stronger growth every quarter forever.

Rising sales, combined with new advanced warehouses, could help the business deliver a higher operating profit (EBIT) margin in the coming years. UBS predicts Coles could achieve a 5.1% EBIT margin FY26, a 5.3% margin in FY27 and a 5.4% margin in FY28.

At this lower valuation, I think the Coles share price is an appealing buy for retirees for both possible passive income and capital growth.

The post Why Coles shares are a retiree’s dream appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
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• Wesfarmers shares offer one thing no other ASX 100 stock does – can it last?

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 Woolworths Group. 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 a popular option for Aussie investors.

You only need to look at its share registry to see that.

According to its annual report, Australia’s largest bank has over 800,000 shareholders.

And even if you don’t own CBA shares directly, there’s a high probability that you have exposure to the bank through your superannuation fund.

In light of this, it isn’t far-fetched to say that the performance of the CBA share price has a major impact on the wealth of the nation.

But has that impact been positive or negative in 2025? Let’s see what $5,000 invested in its shares at the start of the year would be worth now.

$5,000 invested in CBA shares

At the end of 2024, the CBA share price was fetching $153.25.

This means that with $5,000 (and an extra $57.25 for good measure), investors could have picked up a total of 33 shares.

Was this a good idea? Let’s find out.

Well, it certainly was a good idea for the first half of the year. In late June, CBA’s shares hit a record high of $192.00.

At that point, those shares would have had a market value of $6,336. This is almost $1,300 greater than the original investment.

But unfortunately, the second half of the year wasn’t anywhere near as positive after concerns over the bank’s valuation and modest growth outlook finally caught up with its shares.

On Friday, the company’s share price ended the week at $155.96. This is down almost 19% from its June high.

It is also only modestly ahead of the price that investors would have paid at the end of 2024, giving those 33 shares a market value of $5,146.68.

Don’t forget the dividends

Though, it is worth remembering that the bank has paid two fully franked dividends over the period. In March, CBA rewarded shareholders with a $2.25 per share interim dividend. It then followed this up with a fully franked $2.60 per share final dividend in September.

This means that those 33 CBA shares would have pulled in dividend income of $160.05 over the 12 months.

If we assume that those dividends were reinvested, an investor’s shareholding would now be worth a total of $5,306.73.

That’s a total return of 4.9% for investors or approximately $250.00. Not the best, but certainly not the worst in a volatile market.

The post $5,000 in CBA shares at the start of 2025 is now worth… appeared first on The Motley Fool Australia.

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• The CBA share price has fallen 19% since June, is it a buy?

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.

Whenever I buy ASX stocks, I try and think of the teachings of legendary investor Warren Buffett. Buffett has long espoused the value of long-term investing, once famously remarking that his favourite period to hold a stock is “forever”. While this isn’t always practical (Buffett himself has often sold his own shares), I think this idea is still a fantastic north star for any investor to keep in their view.

So today, let’s discuss two magnificent ASX stocks that I think are fantastic choices to own for the long haul.

Two magnificent ASX stocks that I would buy and hold

L1 Long Short Fund Ltd (ASX: LSF)

The L1 Long Short Fund is a listed investment company (LIC) that I’ve had my eye on for a while now. Like most LICs, the Long Short Fund holds an underlying portfolio of shares and investments that it owns and manages on behalf of its investors.

Unlike most LICs, though, the Long Short Fund employs short selling, as well as traditional ‘long’ investing (hence the name). This it has done to great effect, for this company’s portfolio has returned an average of 18.2% per annum over the past five years (as of 30 November). Some of its best positions in recent months have been Light & Wonder Inc (ASX: LNW), Viva Energy Group Ltd (ASX: VEA), and a short position in Commonwealth Bank of Australia (ASX: CBA).

This LIC doesn’t come cheap, with L1 charging an annual management fee of 1.44% per annum. However, if it keeps on delivering those outsized returns, it might be a price well worth paying.

MFF Capital Investments Ltd (ASX: MFF)

Onto another magnificent ASX stock and LIC, we have MFF Capital Investments. MFF is a more traditional LIC, only holding investments. In this case, those investments are mostly American shares.

Like Warren Buffett, MFF prefers to invest in well-positioned companies at compelling prices and hold them for the long term. Many of MFF’s largest positions have been portfolio stalwarts for years. These include Amazon, Visa, Alphabet, Mastercard, and American Express.

MFF has a long track record of delivering sizeable returns for investors. By my calculations, its shareholders have enjoyed an average return of about 15.7% per annum over the past 15 years. MFF also has an attractive dividend growth policy, having raised its payouts from 2 cents per share in 2017 to 17 cents per share investors bagged in 2025 (an annual growth rate of over 30%). Those dividends come fully franked too.

All in all, I believe MFF is another magnificent ASX stock, one that I personally own for the long haul.

The post 2 magnificent ASX stocks to own for the long haul appeared first on The Motley Fool Australia.

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American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Mff Capital Investments, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Light & Wonder Inc, Mastercard, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Light & Wonder Inc, Mastercard, Mff Capital Investments, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

By the time Australians reach 55, retirement stops feeling theoretical and starts looking close enough to plan for.

With roughly 12 years until the age pension begins at 67, many people start taking a hard look at their super and wondering whether they are genuinely on track.

But superannuation isn’t a subject that most people want to talk about, and there is no obvious benchmark to compare yourself against.

So, what does the average 55-year-old actually have saved for retirement? Let’s break it down.

What is the average superannuation balance at age 55?

There isn’t a single precise figure for 55-year-olds, but we can get a clear estimate by looking at the adjacent age groups from data provided by superannuation fund Rest Super. It had approximately 2 million members and around $100 billion in funds under management at the end of September.

According to the data, women aged 50–54 hold an average balance of $176,824, which rises to $228,259 in the 55–59 bracket.

Men in the same groups have $237,084 and $301,922, respectively.

Taking the midpoint of each range gives us a reasonable estimate of where the average 55-year-old sits today:

• Women: approximately $200,000
• Men: approximately $270,000

If your balance is close to these figures, you are tracking broadly in line with the national average. However, being average and being retirement-ready are not always the same thing.

Is this enough for a comfortable retirement?

According to the Association of Superannuation Funds of Australia (ASFA), a single person needs about $595,000 in super to achieve a comfortable retirement.

This type of retirement covers everyday living expenses plus extras like private health insurance, leisure activities, and occasional travel.

Using Rest Super’s calculator, a 55-year-old woman earning $70,000 a year and starting with a $200,000 balance would reach around $375,000 by age 67. Whereas a man starting at $270,000 would finish with about $470,000.

Both figures fall short of ASFA’s comfortable benchmark.

The picture looks far brighter for couples, though. An average 55-year-old couple, combining today’s estimates, would reach roughly $812,000 by age 67. This is comfortably above ASFA’s recommended $690,000 balance for couples.

For those targeting a no frills, modest retirement, the bar is much lower. ASFA estimates a single person needs around $100,000, assuming they will receive the age pension to cover the bulk of living costs.

What if your super balance isn’t where you hoped?

Falling behind the average doesn’t mean your retirement plans are derailed. At 55, there is still meaningful time to boost your savings, particularly with higher concessional contribution caps, downsizer contributions (if eligible), and the compounding effect of strong long-term returns.

It may also be worth reviewing whether your investment option matches your time horizon, your fund’s fees and long-term performance, and whether consolidating multiple accounts could reduce costs.

Small adjustments now can translate into tens of thousands more by retirement.

Foolish takeaway

Understanding the average superannuation balance at 55 is useful, but it is only a starting point. What matters most is whether your super, combined with other savings and future income sources, aligns with the lifestyle you want in retirement.

With more than a decade ahead before reaching pension age, there’s still time to grow your nest egg.

The post Here’s the average Australian superannuation balance at age 55 appeared first on The Motley Fool Australia.

More reading

• $5,000 in CBA shares at the start of 2025 is now worth…
• 2 magnificent ASX stocks to own for the long haul
• 3 great ASX shares I’m buying to become a millionaire
• These ASX 200 shares could rise 50% to 65%
• Will Nvidia crush the market again in 2026?

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.

I like to use ASX shares as the way to build my wealth. It’s easy to progressively add small amounts to my portfolio, and compounding can help grow my portfolio at a very satisfactory pace, if I choose right. Hopefully, I can reach a $1 million portfolio one day.

I don’t want to have to deal with tenants, repairs, land taxes or a rental agent – ASX shares are my preference over investment properties.

What sorts of ASX share investments are the right call? Well, I like to keep one of Warren Buffett’s sayings in mind for this.

He said that the first rule of investing is don’t lose money. The second rule is don’t forget rule number one. It’s with this mindset that I’m putting quite a bit of my regular investment money into the following ASX shares.

MFF Capital Investments Ltd (ASX: MFF)

I’m a big believer that investing in the best businesses makes a lot of sense because of how they compound earnings year after year. If a business grows its earnings at a compound annual growth rate (CAGR) at 10%, the profit will double in less than eight years.

MFF describes its investing strategy as the following:

We take a long-term view and focus on a select group of businesses that offer attractive combinations of quality and value, clear our high opportunity cost hurdle and create the potential for self-reinforcing growth. Our portfolio today comprises approximately 25 individual investments in some of the world’s best exchange-listed businesses.

Its largest seven positions include Alphabet, Mastercard, Visa, Bank of America, American Express, Meta Platforms and Amazon.

I like this ASX share because of the combination of share price growth and dividend growth it has delivered to investors.

Its FY26 guided dividends equate to a grossed-up dividend yield of around 6%, including franking credits. It’s trading at a discount of close 10% of its net tangible assets (NTA), which looks appealing to me.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Long-term investing is easy when you own businesses that have strong long-term potential.

This exchange-traded fund (ETF) looks to invest in US businesses that are seen to have economic moats that are expected to endure for a long time and enable them to generate strong profits for many years to come.

To put a timeframe on it, the Morningstar analysts expect the economic moat to almost certainly last a decade and more likely than not to last two decades. After that, the fund only invests when these great businesses are trading cheaper than what Morningstar analysts think they’re worth.

The MOAT ETF hasn’t needed to rely on the US tech giants for its long-term returns that have averaged in the mid-teens and I think it’s capable of delivering good returns in the coming years.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of my favourite ASX share investments for diversification and long-term returns. It has already been listed on the ASX for 100 years and I think it still has a very long-term history ahead.

It operates as an investment conglomerate that has stakes (or full ownership) of a variety of listed and private businesses. Some of its investments include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Ltd (ASX: NHC), Tuas Ltd (ASX: TUA), Aeris Resources Ltd (ASX: AIS), Electro Optic Systems Holdings Ltd (ASX: EOS), Nexgen Energy (Canada) CDI (ASX: NXG) and plenty more.

I like how the ASX share has built a portfolio of businesses that can perform in all economic conditions and deliver rising cash flow generation along with a growing portfolio value. Its investments can organically grow themselves, plus Soul Patts regularly makes new investments.

The post 3 great ASX shares I’m buying to become a millionaire appeared first on The Motley Fool Australia.

More reading

• 2 magnificent ASX stocks to own for the long haul
• 5 ASX 200 shares I’d buy with $10,000 this week
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• If a 30-year-old invests $1,500 a month in ASX stocks, here’s what they could have by retirement

Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments, Tuas, VanEck Morningstar Wide Moat ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Electro Optic Systems, Mastercard, Meta Platforms, Visa, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking to beat the market in 2026 (who isn’t?), then read on!

That’s because the ASX 200 shares listed below have been tipped by analysts to deliver outsized returns for investors over the next 12 months. Here’s what they are recommending to investors:

Megaport Ltd (ASX: MP1)

The team at Macquarie Group Ltd (ASX: MQG) thinks that this network-as-a-service provider could be an ASX 200 share to buy.

Last week, the broker boosted its earnings estimates to reflect the recent acquisition of Latitude, which it highlights gives the company exposure to a fast-growing end market. It also provides the company with exposure to the blockchain and the growing stablecoin market. Macquarie explains:

Customers already consume compute products, but Megaport (MP1) has not historically sold compute. Latitude’s product offering is highly complementary to the existing product set and offers a direct position in a large and fast-growing end market. Stripe, Mercado Livre and Grok are new customer wins.

With multiple new compute use cases, Latitude expands value prop to high-value customers. It is particularly relevant for stablecoins, with rapid recent growth in this space.

In response, Macquarie has put an outperform rating and $21.70 price target on Megaport’s shares. Based on its current share price of $13.17, this implies potential upside of approximately 65% for investors over the next 12 months.

Guzman Y Gomez Ltd (ASX: GYG)

Another ASX 200 share that could rise strongly in 2026 according to analysts is this Mexican food focused quick service restaurant operator.

Morgans thinks that its shares are undervalued at current levels. Especially given its belief that the company’s latest limited time offer will help drive same store sales growth and be supportive of its margins. 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.

The broker has a buy rating and $32.30 price target on its shares. Based on its current share price of $21.05, this suggests that upside of 53% is possible for investors over the next 12 months.

The post These ASX 200 shares could rise 50% to 65% appeared first on The Motley Fool Australia.

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) has been one of the best stocks to own since 2023. It outperformed the market every year over that period, but 2026 could present some new challenges. The narrative around the artificial intelligence (AI) infrastructure buildout and Nvidia’s dominance in the AI-accelerator chip niche is changing, which could have implications for its stock performance next year.

Many investors who have held the stock for a while are sitting on monster gains. But is it time for folks to take those profits and move on from Nvidia, or is it just getting started? 

All indications point toward more growth

Nvidia makes graphics processing units (GPUs) and other hardware and software to support them. It has been the leading maker of such chips by far for many years, which made it the top dog in the AI accelerator space when demand for such hardware skyrocketed. However, some rivals are stepping up their challenges.

Fellow GPU maker AMD recently announced a partnership with OpenAI to provide it with 6 gigawatts of computing power. (For reference, Nvidia’s deal with OpenAI is for 10 gigawatts). Meanwhile, Broadcom has been making headway by collaborating with several hyperscalers to design custom AI accelerators for more narrowly defined purposes. Among these application-specific integrated circuits (ASICs) are Alphabet‘s Tensor Processing Units, which it has been installing exclusively in its own data centers. However, according to recent news articles, Alphabet is allegedly in talks to sell some TPUs to Meta Platforms — one of Nvidia’s largest customers.

All of this has some investors worried that Nvidia may be losing its dominance in AI. However, I don’t think that’s happening. CEO and founder Jensen Huang noted during the Q3 earnings announcement that it is “sold out” of cloud GPUs. Some AI hyperscalers may be sending some business to alternative computing providers simply because they can’t get all the computing power they need from Nvidia.

So, the narrative shouldn’t be that Nvidia is losing its dominance; it’s that Nvidia is avoiding overextending itself. This should be welcomed, as its shareholders were previously burned when the company overextended itself twice during cryptocurrency bull markets. (GPUs are also well suited for mining proof-of-work cryptos, and were in high demand for that purpose.)

The overall market for artificial intelligence computing devices is massive, and it’s OK if Nvidia doesn’t capture all of it. After all, it expects global data center capital expenditures to rise to a range of $3 trillion to $4 trillion annually by 2030.

But will all of this add up to a stock that outperforms the market in 2026?

The AI buildout continues

All of the AI hyperscalers have informed their investors that they should expect record-setting capital expenditures again in 2026. Wall Street analysts have built those forecasts into their expectations for Nvidia: The average analyst projects 48% sales growth in its fiscal 2027, which will end in January 2027. It would be hard for a stock to underperform the market while posting results like that, unless it was previously drastically overvalued.

Nvidia’s stock trades for 24 times next year’s earnings. That isn’t necessarily cheap, but it’s not terribly expensive either.

NVDA PE Ratio (Forward 1y) data by YCharts.

Compared to AMD and Broadcom, which trade for 33 and 30 times next year’s earnings, respectively, Nvidia does look cheap. It’s also the second-cheapest “Magnificent Seven” stock by this metric.

Unless something drastic happens that changes the spending plans of data center operators, I think Nvidia will outperform the market again in 2026. And with the stock down by more than 10% from its recent high, this could be a perfect time to buy shares.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Will Nvidia crush the market again in 2026? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Should you invest $1,000 in Nvidia right now?
• Nvidia stock price slumped 12.6% in November. What’s next for the artificial intelligence (AI) behemoth?
• 3 excellent ASX ETFs to buy with $3,000 in December
• 3 reasons to buy Nvidia stock like there’s no tomorrow

Keithen Drury has positions in Alphabet, Broadcom, Meta Platforms, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wilson Asset Management lead portfolio manager Matthew Haupt prefers ASX mining shares over bank stocks for 2026.

Let’s find out why.

Fundie explains preference for ASX mining shares in 2026

Haupt said a recent trip to China revealed the nation’s renewed focus on the private sector, infrastructure, and artificial intelligence (AI).

China’s economy is still growing but at a slower pace, with disinflation now entrenched and its property sector in a serious slump.

The Chinese Government appears open to stimulus and wants to take on the US in the AI race.

As a result, Haupt and his team are positive on iron ore, coal, and aluminium as China swaps property construction for AI infrastructure.

In The Australian, Haupt commented:

So there will be a huge amount of investment in AI infrastructure.

What I did off the back of this trip is I bought a whole lot of aluminium stocks, because aluminium looks pretty good. So we got Alcoa Corporation CDI (ASX: AAI).

Coal looks good, so we bought Whitehaven Coal Ltd (ASX: WHC).

Haupt and his team also conducted a deep assessment on global demand for steel.

They are positive on ASX iron ore shares BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), and Rio Tinto Ltd (ASX: RIO) for 2026.

This is despite all three ASX 200 mining shares reaching new 52-week highs this week amid rising commodity prices.

Resources have done pretty well but we still think they look pretty good for 2026.

What about ASX bank shares?

Haupt and his team are concerned about high valuations for ASX bank shares, with the big four all hitting record highs in 2025.

Commonwealth Bank of Australia (ASX: CBA) shares are now in decline following a phenomenal run between November 2023 and June this year.

Meanwhile, BHP shares have surged and appear to be on their way to reclaiming the No. 1 spot on the local bourse from CBA.

The prospect of an interest rate hike in Australia next year also creates a headwind for ASX bank shares.

Haupt notes the recent divergence in US monetary policy from Australian monetary policy in 1H FY26.

This week, the Reserve Bank of Australia (RBA) kept interest rates on hold while the US Fed cut for the third time in four months.

The Australian cash rate is 3.6% while the US interest rate range is now 3.5% to 3.75%.

Haupt says offshore capital is rotating out of Australia and back into North Asia.

The reason why banks and a whole lot of our (major) stocks went crazy was a lot of offshore money was hitting the ASX and also our debt capital markets; basically China was seen as uninvestible.

What we’re seeing now is China’s getting better and capital is flying back.

He added:

So some of those silly valuations we saw, particularly in CBA and the rest of the banking sector and Wesfarmers Ltd (ASX: WES), are in reverse now and we expect that to continue.

The post Why this fundie is backing ASX mining shares over banks in 2026 appeared first on The Motley Fool Australia.

More reading

• How will interest rate hikes impact the big four ASX banks like CBA shares?
• Here are the top 10 ASX 200 shares today
• Why Rio Tinto, Evolution Mining and BHP shares just smashed new 52-week highs
• 3 ASX 200 shares I’m avoiding this week
• Forget Fortescue shares, this ASX iron ore stock is better

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