Top 5 Stocks To Buy Report

This is our current list of the top 5 ASX-listed stocks we think are worth buying right now. Each pick is backed by detailed institutional research and we update this page regularly as new data comes through.

Last updated 1 May 2026.

Life360 Inc (ASX: 360)

Research published 3 March 2026. Price target and upside based on prices at time of publication.

Life360 is a family safety and location sharing platform operating a freemium mobile app used by over 70 million monthly active users globally. The company generates revenue through three channels, subscriptions, hardware via Tile trackers, and advertising and partnerships through the Nativo platform. Life360 is listed on the ASX and headquartered in San Francisco, with a market cap of A$5.2bn and enterprise value of A$4.6bn.

4Q25 Result and Key Metrics

We think Life360 is one of the most compelling risk-reward setups on the ASX right now. The 12-month price target sits at A$38.40, implying 88.6% upside from the current price of A$20.36. The 4Q25 result delivered a 20% beat at the adjusted EBITDA line, with subscription revenue growing 30% to US$102.5m. Monthly active users reached 95.8 million, up 20% on the prior year, and paying circles hit 2.8 million, up 25%. These are the metrics that matter most for the long-term value of the platform, and both came in strong.

Average revenue per paying circle (ARPPC) landed at US$140, with US ARPPCs at $163 representing 5% growth, and international ARPPCs at $82 representing 16% growth. The international figure is particularly interesting because it shows the monetisation gap that still exists outside the US, which gives Life360 a long runway to expand revenue per user as the product matures in newer markets.

FY26 Outlook and Growth Drivers

FY26 revenue guidance of US$640-680m breaks down as follows:

• Subscription revenue of $460-470m
• Hardware revenue of $40-50m
• Other revenue (including advertising and partnerships) of $140-160m

The advertising and partnership segment is where the growth inflection is most visible. Q4 partnership revenue came in at $15.8m, representing 94% quarter-on-quarter growth and 215% year-on-year growth. The Nativo revenue run rate is slightly lower heading into FY26 but $52m of digital advertising revenue is embedded in the outlook. Management has reiterated 20% MAU growth for FY26 and expects a softer Q1, around 19%, recovering above 20% from Q2 through Q4.

FY26 adjusted EBITDA guidance of US$128-138m implies 43% growth year-on-year and margins around 20%. We expect a second-half skew underpinned by Q1 one-off costs including pet GPS price testing and the wind-down of brick-and-mortar retail, which together represent a mid-single-digit million dollar drag. Statutory EBITDA will look softer than adjusted numbers due to elevated share-based compensation, expected at $77m in FY26 versus $56m in FY25, largely driven by Nativo-related headcount. That is worth flagging but does not change our view on the underlying economics.

Valuation

On valuation, Life360 is trading at an NTM EV/EBITDA of roughly 22.5x, which is a 4-year low. The share price reaction of negative 18% on results day looks overdone to us. The price target was adjusted down to A$38.40 from A$41.20 to reflect a higher share count, but this was offset by earnings upgrades. We see a business growing revenue at roughly 35% in FY26, entering new expanding markets in advertising and pet tracking, and improving profitability with EBITDA margins expected to expand by 200 basis points. At this valuation, we think the market is significantly underpricing the trajectory.

Temple and Webster Group (ASX: TPW)

Research published 13 February 2026. Price target and upside based on prices at time of publication.

Temple and Webster is Australia’s leading online furniture and homewares retailer, operating a pure-play e-commerce model with no physical stores and offering over 200,000 products including a growing exclusive and private label range that now represents 45% of the product mix. The company is listed on the ASX, headquartered in Sydney, with a market cap of A$952m and enterprise value of A$806m.

1H26 Results and Earnings Revisions

TPW offers the highest upside on this list at 110.1%, with a 12-month price target of A$16.05 against a current price of A$7.64. The 1H26 result was mixed on the surface. EBITDA came in roughly 12% below consensus, driven by weaker delivered margin, though revenue managed a modest 1% beat. Management has been running proactive promotions to drive top-line growth, and that choice to prioritise volume over margin is deliberate. The target remains A$1 billion in revenue by FY28, and we think management is right to chase scale while the competitive dynamics allow it.

The delivered margin miss has led to meaningful estimate reductions:

• FY26 EBITDA reduced from A$28m to A$25m (-11%)
• FY27 EBITDA reduced from A$42m to A$35m (-16%)
• FY28 EBITDA reduced from A$60m to A$47m (-22%)

We think the market has over-reacted to these cuts. The price target was reduced from A$18.70 to A$16.05 but the Buy rating is retained, and we agree with that view. Updated delivered margin estimates now only factor in a modest 12bp expansion across FY26-28, which feels conservative given the promotional intensity should moderate as macro conditions improve.

Fixed Cost Leverage and Growth Runway

The real story here is fixed cost leverage. Revised estimates factor 111bp of EBITDA margin expansion over FY26-28, with roughly 70% of that coming from fixed cost leverage and only about 32bp from delivered margin and marketing leverage combined. A 19% revenue CAGR through to FY28 should see fixed costs reduce from current levels to 8.9% of sales. Revenue is segmented across core at A$514m, home improvement at A$42m, and trade and commercial at A$48m. The trade and commercial channel in particular has room to grow as TPW targets a customer segment that has historically been underserved online.

Customer behaviour remains firmly value-focused, which plays to TPW’s strengths as a low-cost operator without the overhead of a physical store network. Average order values are holding up well with customers continuing to purchase bigger items, and the active customer count is expected to grow from 1.4 million to 1.6 million in FY26, with customer acquisition cost around A$111.

Valuation

On valuation, TPW is trading at 0.6x FY27 EV/EBITDA versus a global scaled marketplaces average of 1.0x. The valuation is based on a 100% DCF model running FY26-36 with a WACC of 9.9% and terminal growth rate of 3.5%. Second-half revenue growth comparisons get less difficult from here, and the 1H26 exit rate alongside the 6-week trading update were strong. We think the combination of structural growth, improving cost leverage, and a meaningful valuation discount to global peers makes TPW an attractive medium-term holding.

Pro Medicus Ltd (ASX: PME)

Research published 12 February 2026. Price target and upside based on prices at time of publication.

Pro Medicus is a leading health technology company providing radiology IT solutions. Its flagship product Visage 7 is a cloud-native PACS used by major hospitals and health systems primarily in the US, as well as Australia and Europe. The company is listed on the ASX, headquartered in Melbourne, with a market cap of A$17.7bn and enterprise value of A$17.5bn.

1H26 Result and Revenue Acceleration

We see PME as the highest quality business on this list, and the 12-month price target of A$250.00 implies 47.5% upside from the current price of A$169.47. The 1H26 result came in with sales, EBITDA and NPAT all growing 28-29% versus the prior year to A$125m, A$94m and A$67m respectively. These numbers were 4-8% below sell-side estimates, but the miss was driven entirely by the phasing of new contracts rather than any deterioration in the underlying business. We think this distinction matters.

Growth is expected to accelerate into 2H26, with revenue growth estimated at 30% versus 28% in 1H26. The key driver is contract phasing, with 4 of 5 Trinity Health cohorts completing implementation by the end of FY26 and reaching full run-rate revenue in FY27. The contracted revenue pipeline gives strong visibility, with FY26 at A$215.3m, FY27 at A$295.5m, and FY28 at A$364.5m.

Pipeline and Growth Catalysts

The sales pipeline is arguably the most encouraging part of the result. Management noted more sales activity in the last 6 months than in the prior 12 months, which speaks to the network effect that is building as more hospitals move to modern cloud-native systems. Key upcoming catalysts include:

• 4 additional customer implementations including UC Health (April 2026) covering both radiology and cardiology
• VISN 23 migration within the US Veterans Affairs system, serving as a reference site for broader VA cloud migration
• An RFI process with the US Department of Defense, representing roughly 50 million additional scans
• Pathology launch with the first client expected imminently, opening an adjacent vertical

The expansion into cardiology is meaningful because it roughly doubles the addressable market within existing hospital customers. The contracted pipeline includes major names such as BayCare, Children’s of Alabama, Roswell Park, Vancouver Clinic, Advanced Radiology Management, University Hospital Heidelberg, Franciscan Missionaries, UC Health, and Trinity Health.

Margins and Valuation

EBITDA margins dipped 275 basis points to 75.1% in 1H26 versus 77.9% in 2H25, reflecting increased headcount and continued R&D investment. We view this as a sensible trade-off given the scale of the opportunity in front of the business. FY26-28 EBITDA estimates have been revised down 4-5% to reflect slower contract phasing, and the 12-month target was trimmed 7% to A$250 incorporating a beta increase to 1.3. On 12-month forward EV/EBITDA, PME is trading 39% below its 5-year average, which is rare for a business with this kind of competitive moat. The valuation framework blends 85% fundamental DCF with 15% M&A valuation at 115x FY27 EV/EBITDA, reflecting the strategic value of the asset. AI progress continues but monetisation remains limited to date, which we see as optionality rather than a near-term catalyst.

WEB Travel Group (ASX: WEB)

Research published 25 November 2025. Price target and upside based on prices at time of publication.

WEB Travel Group operates WebBeds, the world’s second-largest B2B accommodation platform. The company connects travel trade buyers including travel agents, airlines and tour operators with accommodation providers globally, processing over A$4.9 billion in total transaction value annually across more than 200 countries. WEB is listed on the ASX, headquartered in Melbourne, with a market cap of A$1.6bn and enterprise value of A$1.4bn.

1H26 Result and Market Share Gains

The 12-month price target of A$6.60 implies 51.0% upside from the current price of A$4.37. The 1H26 results showed TTV, revenue and EBITDA growth of 22%, 20% and 21% respectively versus the prior year, with all key metrics coming in slightly above consensus. TTV was in line with the October trading update, and the revenue margin of 6.5% exceeded the guidance range of 6.2-6.4%, which is a positive signal on business mix and pricing discipline.

The share gain story is the centrepiece of the investment case. Both 1H26 and the first 7 weeks of 2H26 showed TTV growth of 22% and 23%, well ahead of the broader accommodation market. WEB continues to outperform its closest listed competitor, HBX, whose latest guidance implies just 2-7% TTV growth for the comparable period. In the US specifically, booking growth of 36% is running dramatically ahead of the latest STR industry data showing roughly 1.4% third-quarter RevPAR growth. Sales to the largest global OTAs are growing faster than underlying booking growth at 18%, which is important because it alleviates the fear that online travel agencies might escalate competitive threats by building their own supply networks.

Margins and Operating Leverage

We think the margin trajectory is underappreciated. Revenue margin uplift from direct contracting is running ahead of expectations, and the growing portion of directly contracted sales is a structural positive. Direct contracting investment should contribute to higher revenue margins, offsetting the natural dilution from faster growth in the lower-margin US and APAC regions. FY27 revenue margin guidance is stable at roughly 6.5%, and we think there could be upside to that number if direct contracting penetration continues to surprise.

The operating leverage inherent in the WebBeds model is significant. The cost base is roughly 75% fixed, 10% semi-variable, and only 15% truly variable. Stable expenses into the second half should support improved margins, and the targeted WebBeds EBITDA margin has been revised upward to 50% by FY26, up from a previous estimate of 46%. The FY25-28 outlook supports:

• TTV CAGR of 16.6%
• Revenue CAGR of 15.0%
• EBITDA CAGR of 22.0%

FY26 EBITDA guidance of A$147-155m was provided at the result, and FY26-28 estimates have been nudged up 2-3%.

Valuation

The 12-month price target moved up 6% to A$6.60. The valuation framework blends 85% fundamental value, split equally between EV/EBITDA and DCF, with 15% M&A at 17.0x EV/EBITDA. Convertible notes are no longer assumed to convert, which simplifies the equity story. For a business delivering consistent above-market growth with improving margins and strong cash conversion, we think the current price significantly undervalues the platform.

Accent Group (ASX: AX1)

Research published 26 February 2026. Price target and upside based on prices at time of publication.

Accent Group is one of the largest footwear and apparel retailers in Australia and New Zealand, operating over 890 stores across a portfolio of brands including TAF (The Athlete’s Foot), Hoka, Merrell, Nude Lucy, Platypus, Skechers, and Rebel under licence. The company also runs a growing digital and e-commerce business alongside its expanding Sports Direct partnership via ID Sport APAC. Accent Group is listed on the ASX, headquartered in Melbourne, with a market cap of A$598m and enterprise value of A$722m.

1H26 Result and LFL Recovery

The 12-month price target of A$1.30 implies 30.7% upside from the current price of A$1.00. The 1H26 result came in with EBIT in line with guidance, and 2H26 EBIT guidance was maintained at A$30-35m. The headline numbers are unchanged but the market responded positively to the underlying trends, specifically the sequential improvement in like-for-like sales momentum through the half. Group LFL improved from negative 1.7% in Q1 to positive 2.8% in Q2, and the brands driving that recovery are the ones that matter most. TAF, Hoka, Merrell and Nude Lucy all delivered strong growth, and Platypus has returned to positive LFL territory.

Margin Dynamics and Operational Levers

The gross margin story has two parts. In 1H26, gross margin declined 263 basis points year-on-year, reflecting elevated promotional intensity across the sector and roughly 80bp of FX headwind from a weaker Australian dollar. Looking forward, the FX dynamic reverses. With the AUD trading above 70 cents, we expect a meaningful tailwind to gross profit margins into 2H26 and FY27. Historically, a 1 cent move in the AUD equates to roughly A$5m in gross profit, so the magnitude of this lever is substantial for a business of this size.

The closure of MySale and Glue is the other key operational lever. The 1H26 results included approximately $16.2m of impact from trading losses and closure provisions related to these businesses, which dragged headline earnings well below the underlying performance of the continuing operations. Pro-forma 1H26 results excluding OzSale and Glue suggest roughly 130bp of uplift to gross margins. This is not a one-off benefit but a permanent improvement to the cost base.

Earnings Outlook and Valuation

Factoring in the closures and improving LFL trends, we expect 27% FY27 EBIT growth. Key forward estimates:

• Revenue of A$1,565m in FY26, growing to A$1,604m in FY27
• EBITDA margins recovering from 19.0% to 19.9%
• FY27 EBIT of A$115m (+27.8%), growing to A$126m in FY28
• Dividend yield of 4.7% in FY26 and 5.3% in FY27
• Store count stabilising at 887 in FY26 before growing to 901 in FY27 and 912 in FY28

On valuation, Accent Group is trading at an NTM PE of roughly 10x, representing a 37% discount to youth apparel retailer Universal Store at 16x. That compares to a long-term average 3% premium for Accent Group, which suggests the market is pricing in a structurally weaker business rather than a cyclical trough. The price target was lifted to A$1.30 from A$1.20 with EBIT estimates revised up 3-5%. The valuation framework blends 50% DCF with 50% EV/EBIT at a 9.0x FY27 multiple, using a WACC of 9.9%. We think this is a recovery story with near-term catalysts in FX, cost reductions, and easing comparisons.

Final Thoughts

All five names on this list carry Buy ratings with meaningful upside to their 12-month price targets, ranging from 30% for Accent Group up to 110% for Temple and Webster. We see a mix of growth and recovery stories here, with several trading at multi-year valuation lows relative to their own history. Our analysis draws on institutional research alongside our own views on each company’s positioning and outlook. We will continue to update this page as new research and results come through, so check back regularly.

If you would like to discuss any of these names or how they might fit within your portfolio, request a callback or call us on 1300 889 603.