Best ASX Stocks to Buy Now (December 11, 2025): Top Australian Shares for 2026 Growth & Income

Australia’s sharemarket is limping into the end of 2025, but the outlook for 2026 is far more upbeat than the recent volatility suggests.

With just weeks to go in the year, the ASX 200 is up about 5.4% year‑to‑date and trading near 8,600, putting it on track for a third straight year of gains. ^[1] The index, however, now sits on a forward P/E of roughly 18x, well above its long‑term average of around 14.8x – meaning investors need to be more selective. ^[2]

At the same time, major global houses are modestly bullish on Australian equities for 2026:

UBS sees the ASX 200 at 8,900 by the end of 2026, implying around 6% price upside plus dividends and a mining‑led earnings upgrade cycle. ^[3]
Morgan Stanley is even more optimistic, targeting 9,250 and flagging ~10–12% total returns driven largely by resources. ^[4]
IG’s 2026 outlook suggests the index could grind toward the 9,300–9,500 area if October’s correction holds as a medium‑term low. ^[5]

Below, we’ll walk through the most interesting ASX stocks to buy now, based on the very latest news, broker research and 2026 forecasts up to 11 December 2025. This article is general information only, not personal financial advice.

1. Where the ASX Stands Today

Expensive headline, but big dispersion under the surface

IG’s 2026 outlook highlights three key facts about the Australian market: ^[6]

The ASX 200 has gained ~5.4% in 2025, but
The forward P/E multiple (18.1x) is well above its long‑run average (~14.8x), and
Performance has been highly sector‑skewed:
- Materials +24.5%, Industrials +11.4%, Utilities +9.2% year‑to‑date
- Healthcare –20.4% and IT –15.4% are the only sectors in the red

In the last week, volatility has been driven by rate and Fed nerves. On 10 December, the ASX 200 dipped 0.1% to 8,579 as traders waited on the US Federal Reserve, with materials leading (gold and silver miners, Newmont, Northern Star, Ramelius, St Barbara) and tech dragging. ^[7] Earlier in the month, lithium names like Liontown, Pilbara Minerals and Mineral Resources spiked after an upgraded UBS lithium demand outlook, while telecoms and defensives held up. ^[8]

Takeaway: Indices look expensive, but leadership has rotated. The most compelling ideas tend to sit in:

Resources (especially miners and lithium)
Data‑centre and digital‑infrastructure plays
Global growth franchises in tech and healthcare
Selective high‑quality dividend payers

2. How This “Best Stocks” List Was Built

This list focuses on ASX companies that, as of 11 December 2025:

Have fresh catalysts or newsflow (results, acquisitions, contracts, M&A);
Enjoy supportive broker or institutional research, often with clear upside to target prices; and
Fit into structural or cyclical themes that line up with the 2026 macro outlook (commodities, AI & data centres, resilient consumer, healthcare digitisation).

You should still check your own risk tolerance, time horizon and tax position, and preferably speak to a licensed adviser before making decisions.

3. High‑Conviction Growth: Data Centres, Cloud & Tech

3.1 NEXTDC (ASX: NXT) – AI infrastructure flagship

Why it’s on the list

NEXTDC is rapidly becoming Australia’s flagship AI and cloud infrastructure play:

On 4 December, Reuters reported that NEXTDC signed an MoU with OpenAI to develop a hyperscale AI campus and GPU supercluster at its S7 site in Sydney’s Eastern Creek, ultimately targeting around 550 MW of capacity. Shares jumped more than 10% on the news. ^[9]
IG notes that NEXTDC is building a $7 billion, 650 MW data centre at Eastern Creek which would be the largest in the southern hemisphere, with OpenAI as the anchor customer – a major vote of confidence in its platform. ^[10]

What brokers are saying

IG’s Macro Intelligence piece reports that Morgan Stanley has an overweight on NXT with a $21 target (roughly ~50% upside from current levels). ^[11]
Ord Minnett has lifted its target to around $20.50 and maintained a buy rating, estimating the OpenAI partnership alone could add about $2.10 per share to fair value by FY30–31. ^[12]

Key risks

Very capex‑heavy: mis‑timed expansion or overruns would hurt returns.
IG flags that technical momentum is still weak, with price below its 200‑day moving average – so the stock may stay volatile in the near term. ^[13]

Who it suits: Investors comfortable with infrastructure‑style, capital‑intensive growth and AI exposure, who can tolerate short‑term share price swings.

3.2 Megaport (ASX: MP1) – Cloud connectivity with renewed momentum

Megaport offers Network‑as‑a‑Service, helping enterprises connect to major cloud and SaaS providers.

Fresh catalysts

Macquarie recently raised its 12‑month target price to $21.70, implying about 60% upside, and reiterated an outperform/buy case driven by margin expansion and global customer growth. ^[14]
Jefferies upgraded Megaport from Hold to Buy, lifting its target to $20, citing improved execution and the strategic value of a recent acquisition. ^[15]
Today, the company announced it had completed a share purchase plan raising A$18.2 million, shoring up its balance sheet for further growth. ^[16]

Key risks

Still a mid‑cap tech stock with meaningful volatility.
Needs to keep growing while managing capital wisely after recent equity raisings.

Who it suits: Growth‑oriented investors who want leveraged exposure to cloud adoption without picking individual US tech names.

3.3 CAR Group (ASX: CAR) – Quality classifieds with valuation upside

CAR Group runs online car marketplaces like carsales.com.au and international platforms.

Why it’s interesting now

In a broker round‑up this week, CAR was highlighted as a buy‑rated tech name on attractive valuation despite recent volatility in the sector. ^[17]
MarketIndex reporting notes that Bell Potter has retained a buy on CAR with a price target around A$42.20. ^[18]
TipRanks data show an average 12‑month target near A$41–42, implying roughly 25–26% upside from recent prices. ^[19]

Key risks

Cyclical exposure: if used‑car prices or listings volumes fall, growth could slow.
Valuation is not cheap vs global peers, so execution needs to stay strong.

Who it suits: Investors seeking a profitable, cash‑generative tech platform with solid analyst support and moderate upside rather than “moonshot” potential.

3.4 Pro Medicus (ASX: PME) – Healthcare software with long contracts

Pro Medicus develops Visage 7, radiology imaging software used by large hospitals, especially in the US.

Recent news and forecasts

At its AGM in late November, Pro Medicus reported FY26 year‑to‑date contract wins totalling at least A$273 million, ahead of its internal growth budget and three‑year targets. ^[20]
On 24 November, the stock rose ~3.5% as it announced three new US contracts worth at least A$29 million. ^[21]
Citi recently upgraded PME to a buy with a A$350 target, while Morgans shifted to an accumulate rating, both pointing to continued contract momentum and high margin recurring revenue. ^[22]

Analysts expect 30–40% earnings growth to continue into FY26, albeit off an already‑elevated base.

Key risks

PME trades on very high valuation multiples; a single contract disappointment can trigger sharp pullbacks – as seen when the stock temporarily dropped ~15% in November before recovering. ^[23]
Heavy reliance on the US healthcare system and a concentrated customer base.

Who it suits: Long‑term growth investors comfortable paying premium multiples for top‑tier software franchises.

3.5 Catapult Sports (ASX: CAT) – Niche sports tech with broker‑backed upside

Catapult provides wearables and analytics to elite sporting teams worldwide.

Why it’s on growth watchlists

Bell Potter and Morgans have both called out Catapult as a buy‑rated growth stock, pointing to positive EBITDA, free cash flow and under‑penetrated markets. ^[24]
A recent broker note cited by Motley Fool highlights a A$6.25 price target, which implies roughly 30–40% upside from recent trading levels (~A$4.50+). ^[25]

Key risks

Smaller cap, hence more volatile and less liquid than the bigger names on this list.
Needs to keep renewing and upselling major team contracts to justify growth assumptions.

Who it suits: Investors willing to take mid‑cap tech risk in exchange for asymmetric upside backed by broker forecasts.

4. Cyclical Recovery & Travel

Flight Centre Travel Group (ASX: FLT) – Travel rebound + cruise expansion

Flight Centre is one of the most widely followed cyclical plays on the ASX.

Today’s catalyst

Today, the Courier‑Mail reported that Flight Centre will acquire UK cruise agency Iglu for A$200 million, lifting its cruise transaction value to A$2 billion per year, hitting a strategic goal two years ahead of schedule. The company also raised FY26 profit guidance to A$315–350 million, indicating roughly 15% year‑on‑year growth. ^[26]

Analyst support

Investing.com reports that Jefferies upgraded FLT from Hold to Buy in November, lifting its target from A$13.50 to A$14, after Asia returned to profitability and group profit‑before‑tax beat expectations. ^[27]
Another recent roundup shows that 11 of 14 analysts currently rate FLT buy or strong buy, with the highest target price around A$18.26, implying substantial potential upside from current levels around the mid‑teens. ^[28]

Key risks

Highly exposed to consumer confidence, airline capacity, and geopolitical shocks.
Integration risk around Iglu, and dependence on the cruise boom persisting.

Who it suits: Investors comfortable with cyclical risk seeking a play on ongoing recovery in global travel and cruising.

5. Resources & Lithium: Riding the 2026 Commodities Cycle

5.1 BHP Group (ASX: BHP) – Core exposure to the mining upturn

BHP remains the anchor resources holding on the ASX.

Recent developments

On 9 December, BHP announced a US$2 billion (A$3+ billion) funding deal with Global Infrastructure Partners (now owned by BlackRock) for its Western Australia Iron Ore power network. BHP will keep operational control while paying a tariff over 25 years, effectively recycling capital and freeing its balance sheet for growth. ^[29]
Earlier commentary from Sanlam Private Wealth suggested now could be an attractive entry point, with the average 12‑month target around A$44.80, just above recent prices near A$44.50, plus a fully franked dividend yield on top. ^[30]

Combined with the UBS and Morgan Stanley view that mining will lead ASX earnings growth in 2026, BHP is often seen as a low‑risk way to get exposure to that theme. ^[31]

Key risks

Iron ore prices remain the biggest swing factor; demand from China (still dealing with weak property and industrial activity) will be crucial. ^[32]
ESG and decarbonisation pressures could increase capex needs over time.

Who it suits: Investors wanting core, relatively lower‑risk resources exposure with franked dividends.

5.2 Lithium basket: Liontown, Mineral Resources, Pilbara, IGO

Lithium has roared back to life after a brutal first half of 2025.

What changed?

UBS’s global battery team recently raised lithium price forecasts by ~64% and now expects lithium markets to move into deficit from 2026, with peak prices around 2027. ^[33]
The bank upgraded IGO and Pilbara Minerals (PLS) from Sell to Neutral, and lifted Liontown Resources (LTR) and Mineral Resources (MIN) to Buy, expecting 11–125% EPS upgrades across the sector. ^[34]
Following the upgrade, Liontown shares surged around 15% in a single day, and lithium names led the ASX 200’s top movers list. ^[35]

Why consider them

Rather than picking a single winner, many investors prefer basket exposure to the better‑capitalised ASX lithium names:

Liontown (LTR) – higher risk, but UBS now sees upside as it moves towards production. ^[36]
Mineral Resources (MIN) – diversified across iron ore, mining services and lithium. ^[37]
Pilbara Minerals (PLS) – established producer with strong leverage to higher prices. ^[38]
IGO (IGO) – rebounding after a tough period; now back to Neutral from previous Sell at UBS. ^[39]

Key risks

Lithium remains notoriously cyclical; forecasts could be wrong if EV growth slows or supply surprises on the upside.
Balance‑sheet and execution risk is higher in the more leveraged developers.

Who it suits: Higher‑risk investors who want leverage to a potential lithium deficit from 2026 onward, accepting that volatility will be extreme.

6. Dividend & Income Ideas

Dividend yields on the ASX have dropped as prices rose; IML’s Michael O’Neill estimates the index‑level forward yield is now about 3.3%, well below historical norms. ^[40] But he notes there are still attractive individual income names if you focus on sustainability and balance‑sheet strength, not just headline yield.

6.1 Super Retail Group (ASX: SUL)

Super Retail Group owns Rebel, Super Cheap Auto, BCF and Macpac.

A recent Simply Wall St–powered screener of “Top ASX Dividend Stocks” highlighted SUL as one of the most attractive combinations of yield, coverage and valuation: ^[41]

Dividend yield ~5.9%, placing it in the top quartile of the market.
Payout ratios around 67% of earnings and ~53% of cash flow, which suggests the dividend is sustainable rather than overstretched.
The shares are estimated to trade at a material discount (around a third) to fair value, based on their valuation model.

Risks: Exposure to discretionary consumer spending; a sharp downturn in retail could hit earnings and trigger a de‑rating.

6.2 Other dividend names on the radar

The same dividend screener flagged several mid‑cap income plays such as Treasury Wine Estates (TWE), Accent Group (AX1), Smartgroup (SIQ), Lindsay Australia (LAU), MFF Capital Investments (MFF), Kina Securities (KSL) and Fiducian Group (FID), each offering a blend of moderate‑to‑high yield and solid coverage ratios. ^[42]

Meanwhile, income‑focused managers like IML emphasise that:

Utilities and energy sit at the higher‑yielding end of the market,
Banks’ yields have compressed as prices rerated, and
The best income portfolios balance reasonable starting yield with growth and resilience, not just headline payout. ^[43]

For investors who prioritise stability and franking credits, pairing something like BHP plus a handful of these mid‑cap dividend names can create a more balanced income basket than banks alone.

7. Sectors to Approach with Caution

Banks: priced for perfection?

Morgan Stanley’s 2026 outlook argues that Australian banks are likely to underperform the broader market next year, even though fundamentals like margins and loan growth look fine. ^[44]

Why?

Major bank P/E multiples have expanded from ~13.5x to around 19x since the end of the rate‑hiking cycle – a bigger re‑rating than in past cycles. ^[45]
Much of the benefit from rate cuts and provisions releases appears fully priced in, raising the odds of a valuation de‑rating if sentiment sours.

Morgan Stanley still has a preference order (ANZ, NAB, WBC, CBA), but overall sees better risk‑reward in resources over banks. ^[46]

Over‑hyped defence, critical minerals and AI names

UBS and Schroders both warn that parts of the market linked to defence, critical minerals and AI themes may have valuation levels not fully backed by fundamentals, with hype sometimes outrunning cash‑flow reality. ^[47]

That doesn’t mean you must avoid these themes entirely – but it reinforces the need to distinguish between quality compounders (like NEXTDC or Pro Medicus) and story‑only microcaps.

8. How to Use This List (Without Over‑Trading)

A few practical ways to turn this research into a plan:

Anchor the portfolio in core holdings
- Use BHP plus an ASX 200 ETF as the foundation, then add 1–3 high‑conviction growth names (e.g., NXT, MP1, PME) and 1–3 income names (e.g., SUL, a utility or infrastructure stock).
Size the high‑beta plays carefully
- Lithium names (LTR, MIN, PLS, IGO), Catapult and sometimes Flight Centre will move much more than the index. Keeping each at small position sizes helps manage portfolio risk.
Think in 3–5‑year terms, not 3–5 weeks
- Most of the upside cases cited by UBS, Morgan Stanley, IG and brokers rely on multi‑year themes – mining upcycles, AI/data‑centre growth, healthcare digitisation. ^[48]
Re‑check the thesis every results season
- Watch for: contract wins at NXT/PME, updates to lithium capex and price forecasts, and dividend coverage and same‑store sales trends for retailers like SUL.

9. Final word

As of 11 December 2025, the Australian market looks:

Expensive at the index level,
Attractive in selected pockets – especially resources, data‑centre infrastructure, high‑quality tech and specific dividend stocks, and
Supported by broadly positive 2026 forecasts from major investment banks and market strategists. ^[49]

None of the stocks above is a guaranteed winner, but they are among the most actively endorsed ASX ideas right now by brokers and institutional research, with clear catalysts and measurable upside into 2026.