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 30 June 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.

ResMed (ASX: RMD)

Research published 1 May 2026. Price target and upside based on prices at time of publication.

ResMed is the global leader in cloud-connected medical devices for sleep apnea, COPD and other respiratory conditions, with the number-one share position in obstructive sleep apnea devices and a digital health platform spanning more than 18 billion nights of patient data. RMD is dual-listed on the NYSE and ASX, headquartered in San Diego, and sells masks, flow generators and home medical equipment software into the US, EMEA and APAC.

3Q26 Result and the GLP-1 Question

The 12-month price target of A$46.20 implies 60.8% upside from the closing price of A$28.73 on 1 May 2026. The 3Q26 result printed cleanly across the top line, with US devices and masks both growing well ahead of the broader sleep apnea market. Mask revenue grew around 15% with genuine share gains, and VirtuOx referrals into the diagnostic funnel were up 25% year on year, which matters because it directly seeds the future flow generator and mask annuity. The GLP-1 overhang has been the headline reason RMD has been derated, but the actual numbers keep showing the funnel widening rather than narrowing, and we see around 200 basis points of incremental growth contribution coming through as the diagnostic pipeline matures.

The competitive picture is also better than the multiple suggests. RMD continues to take share from Philips Respironics in the US flow generator market while the AirSense 11 launch into China is opening a new geography of meaningful scale. Management has flagged ongoing operational discipline on opex, with R&D and SG&A growing well below revenue, which gives the model room to absorb the cost of the Noctrix integration without breaking margin guidance.

Margin Expansion to FY28

The non-GAAP gross margin path is the second pillar of the call. After the FY22 trough at 56-58%, gross margin tracks management’s 62-63% FY26 guide and steps up to roughly 64% by FY28, around 600 basis points of expansion driven by mix shift to higher-margin Noctrix products and component-cost normalisation as the post-COVID supply chain unwinds. We have FY26-28 EPS estimates trending modestly ahead of the consensus prints, with operating leverage coming through as the fixed-cost base flattens against double-digit revenue growth.

Valuation

RMD trades on 18.8x forward P/E against a medtech peer mean of 22.7x, with Fisher and Paykel, Boston Scientific and Edwards all at 27-29x. Triangulating a 10-year DCF at 8.1% WACC with a 3.0% terminal growth rate, plus a forward EV/EBIT multiple of 21.3x on FY27 estimates, produces a blended fair value of A$46.20. Around A$3.70 of that price target is attributable to the 2030-strategy products that have not yet shown up in the printed numbers, which we treat as embedded option value rather than counted upside. For the global number-one franchise in obstructive sleep apnea, with a 600bps margin expansion path and a four-turn discount to the medtech peer set, the risk-reward looks asymmetric.

ALS Ltd (ASX: ALQ)

Buy (Conviction List), 12-month price target A$28.00 (31.2% upside). Price target and upside based on prices at time of publication.

ALS Ltd is one of the world’s largest testing, inspection and certification (TIC) companies, operating across two primary segments: Commodities (geochemical testing and assaying for mining and exploration clients) and Life Sciences (environmental, food and pharmaceutical testing). The company is listed on the ASX under the ticker ALQ and is headquartered in Brisbane.

The investment case rests on a commodities testing cycle that is accelerating faster than consensus expects. LTM junior mining capital raisings are up approximately 104% year on year as of March 2026, a leading indicator that sample volumes flowing into ALS’s labs will continue to grow. Peer read-across from global TIC companies reinforces the picture: SGS reported Minerals organic growth of +4.2% in 1Q26, Bureau Veritas delivered high-single-digit organic growth in its Metals and Minerals segment in the same period, and Imdex, which has a roughly three-month lead on ALS’s commodities volumes, reported Sensors and SaaS revenue growth of +28% year on year in 3Q26. Management upgraded FY26 Commodities organic revenue guidance to low-to-mid double-digit growth in November 2025 and consensus is not yet pricing the same acceleration into FY27. We think that gap between what the leading indicators are saying and what the numbers imply is where the opportunity sits.

On valuation, ALQ trades at an NTM EV/EBIT of approximately 17x, the highest among its listed global TIC peers on a headline basis. On a growth-adjusted basis however, the stock is trading at a discount to peers, reflecting consensus growth estimates of around 14% per annum that the peer data suggests are conservative. If the acceleration in commodities activity that the leading indicators are signalling flows through into FY27, ALS looks meaningfully cheap relative to where the earnings should land.

Final Thoughts

All five names on this list carry Buy ratings with meaningful upside to their 12-month price targets, ranging from 31% for ALS Ltd up to 202% 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.