Our algorithm suggests 10 ASX stocks, including Zimplats (73.5% 1-year return) for your 2026 watchlist.
Despite recent market growth, consider diverse sectors like commodities and gold amidst 2026's economic uncertainties.
You could save an average of $1,046 annually on brokerage fees by comparing suitable online platforms.
Important note
Unfortunately there's no one magic stock or ETF that's 'best' for everyone. Instead, you should look at your own individual needs and investment strategy to decide what stock is right for you.
Nobody can say for certain which direction a share will go as past performance is no guarantee of future results. So keep in mind these are stock ideas only and should not be taken as personal financial advice.
Looking for the best ASX shares to buy for 2025? We've compiled a list of stocks using an algorithm that considers factors such as price performance, market capitalisation, earnings per share and price-to-earnings ratios.
Stocks to watch in 2026
With all that in mind, it's not easy picking quality stocks. To help identify stock picks for 2026, we used Finder's proprietary algorithm to filter Australia-listed companies that have strong fundamentals.
We take into account positive medium-term price growth, dividends, (low) price volatility, earnings, which might indicate a quality stock that is currently undervalued.
To avoid speculative stocks, we only include companies with a market cap of more than $100 million. We filtered out stocks that have been listed on the ASX for less than 5 years to better compare historical data.
Many of these stocks are market leaders in sectors like mining, resources and banking, with a history of strong dividends and stability.
Again, this doesn't mean these are the best ASX stocks for you or your personal situation. Always do your own research and chat with a professional when in doubt.
Our proprietary algorithm rates ASX-listed stocks based on price performance, earnings and volatility. The companies displayed on this page may not be the best for you and you're encouraged to do your own research. Investments can go up and down and we do not guarantee the performance or returns of any investment.
1. Capral (ASX:CAA)
Market cap: AUD$197.67 million
1-year performance: 23.28%
5-year performance: 66.31%
2. McMillan Shakespeare (ASX:MMS)
Market cap: AUD$1.28 billion
1-year performance: 2.06%
5-year performance: 43.28%
3. QBE Insurance Group (ASX:QBE)
Market cap: AUD$33.88 billion
1-year performance: 4.76%
5-year performance: 123.8%
4. Washington H. Soul Pattinson and Company (ASX:SOL)
Market cap: AUD$16.45 billion
1-year performance: 14.48%
5-year performance: 40.54%
5. Lowell Resources Fund (ASX:LRT)
Market cap: AUD$95.17 million
1-year performance: 81.45%
5-year performance: 32.35%
6. Woodside Energy Group (ASX:WDS)
Market cap: AUD$57.3 billion
1-year performance: 63.96%
5-year performance: 44.88%
7. Santos (ASX:STO)
Market cap: AUD$24.65 billion
1-year performance: 35.47%
5-year performance: 14.9%
8. Yancoal Australia (ASX:YAL)
Market cap: AUD$8.96 billion
1-year performance: 55.15%
5-year performance: 271.01%
9. Ampol (ASX:ALD)
Market cap: AUD$8.12 billion
1-year performance: 50.5%
5-year performance: 35.07%
10. Whitehaven Coal (ASX:WHC)
Market cap: AUD$6.64 billion
1-year performance: 74.7%
5-year performance: 563.85%
Did you know?
You could save $1,046 a year on average in brokerage fees by switching to a more suitable online broker, according to Finder research. You might even save money by having more than one platform, especially if you are investing both in Australia and internationally.
We currently don't have that product, but here are others to consider:
Looking for other options? Check out these similar products.
How we picked these
Finder Score for share trading platforms
We've scored over 30 share trading platforms assessing them for their core features, fees, customer experience and accessibility. Our experts give each platform a score out of 10.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
How to pick stocks
There's no single winning strategy to filter "good stocks" because the most important consideration is your own circumstances. Besides, the best ASX stocks are those that perform well in the future. And if the last few years has taught us anything, markets can defy expectations.
But that doesn't mean you shouldn't do your homework. Whether you care more about short-term capital gains or long-term dividend growth, it's important to know whether a stock is performing well, making a profit, paying dividends or going backwards.
Stock themes for 2026
Unless you have a crystal ball, it's impossible to say what the rest of the year (and beyond) will look like. But there are some big themes that are currently driving the market in 2026:
The weak Australian dollar
The risk of recession in the US, Australia and elsewhere
The impact of Trump's economic policies
If and when interest rates drop
Whether the stock market corrects after years of strong growth
Expert insight: Using a stock picking strategy
"Holding a concentrated portfolio containing some of the biggest stocks in the market place has shown to outperform index tracking ETFs and funds."
The past couple of years have been marked as some of the most volatile periods in stock market history.
This volatility was largely driven by persistent inflation, rising interest rates, and soaring commodity prices, significantly influenced by the geopolitical tensions and conflicts across different regions.
Interestingly, this period saw a unique trend where bad economic news, such as a slowdown in GDP or a rise in unemployment, was often viewed positively by investors as potential indicators of peaking inflation.
As a result, both the US and Australian stock markets have enjoyed strong growth since 2022.
In 2024, the S&P 500 rose 23.31%, while the ASX 200 rose 11.44% (including dividends).
Key attributes to consider in 2025
While inflation has eased, it remains a concern of central banks around the world in 2025. Interest rates have remained high in Australia, while the US eased rates slightly but warned of stubborn inflation.
The US, Australian and other global stock markets have enjoyed growth over the last few years, but some experts warn of a potential slowdown in 20252, or even a stock market downtrend.3
US president Donald Trump's ongoing trade war has also caused a lot of volatility and muddy the global economic picture.
During ongoing times of uncertainty, certain sectors such as commodities, real estate, and industrials have traditionally been perceived as safe havens.
"Store of value" assets like gold therefore enjoyed strong performance in 2024 and may do so again in 2025.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.
Frequently asked questions
If you have $5,000 you'll actually have a number of options as to where you want to invest it. These can range from having it in a high interest savings account, to superannuation, P2P platforms, or even buying shares/ETFs or robo advisers.
If you would like to see more, head over to our page about how to invest $5,000 to see how you could be making your money work harder for you.
Despite what they might tell you, nobody really knows how the share market will perform over the short term, although active traders will try to exploit these movements. If you're taking a long-term approach to investing, short-term volatility shouldn't impact your strategy.
The most expensive stock on the ASX quite frequently fluctuates, but as of 3 February 2025, the most expensive stock was Cochlear (COH) followed by CSL (CSL) and Pro Medicus Limited (PME).
Generally speaking "time in the market beats timing the market". This means when it comes to buying stocks, you're usually better off consistently dollar cost averaging into the shares regardless of the stock price or market backdrop. Although there's a big caveat to this. You need to be investing in the right shares. Buying and holding a stock that is falling and has little prospects of turning around won't be beneficial.
The reason to buy and hold stocks is because nobody really knows how the stock market will perform. After all, predicting the future is incredibly difficult. As such, simply adding money regularly can be a more prudent strategy.
The ASX 200, which represents the 200 largest publicly-traded Australian companies gained 11.20% in 2024. While many are predicting the stock market to continue to grow this year, it's not expected to grow at the same rate as it did in 2024.
If you're looking to buy dividend stocks you're usually looking at more mature businesses that have more predictable payouts.
As such, you should be looking at companies with a strong track record of growth over a number of years as this can be an indicator of future dividend payouts.
When it comes to buying dividend stocks you should also look for businesses that have strong cash flows, low debt and have a large share of their chosen field.
If you are looking to track dividend you could also look into 3 metrics, being dividend yield, dividend payout ratio and dividend payout growth rate.
Dividend yield – This ratio shows how much a company pays in dividend relative to its share price.
Dividend payout ratio – This is the percentage a company's earnings is used to cover dividend payments.
Dividend growth rate/dividend payout growth – These are 2 terms that describe the same thing. It is the average percentage rate of growth a stock's dividend has experienced over a time frame.
Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments.
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