Finding the best shares to buy on the ASX requires more than just scanning a screener or chasing whatever is up this week. We focus on companies with strong competitive positioning, visible earnings growth, and a catalyst to drive the share price higher over the next 12 months. Every stock on this list has been through a full research process covering financials, industry dynamics, valuation, and management quality.
We update this page regularly as new research is published. The five stocks below represent our most recent work, ordered from newest to oldest. Each summary covers the key points of the investment case, with a link to the full write-up for those who want the detail.
Last updated 24 April 2026.
| Stock | Rating | Price Target | Last Price | Upside | Div Yield |
| Metcash (ASX: MTS) | Buy | A$3.80 | A$2.82 | 34.8% | 5.8% |
| Supply Network (ASX: SNL) | Buy | A$38.10 | A$32.32 | 17.9% | |
| PWR Holdings (ASX: PWH) | Buy | A$10.40 | A$9.13 | 13.9% | |
| Codan (ASX: CDA) | Buy | A$38.50 | A$35.64 | 8.0% | |
| Collins Food (ASX: CKF) | Buy | A$12.10 | A$8.25 | 46.7% |
Our Top 5 Stocks To Buy Right Now on the ASX
PWR Holdings Ltd (ASX: PWH)
Buy, 12-month price target A$10.40 (11.6% upside). Price target and upside based on prices at time of publication.
PWR Holdings designs and manufactures advanced cooling solutions for some of the most demanding applications in the world, including Formula 1, NASCAR, aerospace and defence, OEM automotive and electric vertical takeoff and landing aircraft (eVTOL). The company completed its new Stapylton manufacturing facility in December 2025, which adds more than 100% to production capacity. Global manufacturing utilisation sits at approximately 50% with machine capacity at two-thirds, providing substantial operating leverage as revenue scales. Recent management commentary confirmed that the strategic playbook remains unchanged following the founder transition, with long-serving CFO Sharyn Williams stepping up to CEO/MD.
The growth runway remains intact across all four segments. A US$9.1m follow-up contract from the US Government is expected to transition into recurring revenue over the coming years, validating PWR’s position in mission-critical defence applications. Motorsports continues to benefit from the 2026 F1 regulatory cycle and increasingly complex mid-season upgrades, and eVTOL defence adoption is running ahead of commercial with the 2028 LA Olympics providing a deadline for commercial operators. The 1H26 gross margin compression to 77.4% was tariff and mix-driven, and management has flagged price rises that should lift margins back into the 79% range over time.
PWR is a de-risked growth story with the capex cycle behind it, a deepening defence pipeline and a management transition that signals strategic continuity. Read the full article on PWR Holdings here.
Metcash Ltd (ASX: MTS)
Buy, 12-month price target A$3.80 (31.0% upside), 5.8% dividend yield. Price target and upside based on prices at time of publication.
Metcash is Australia’s leading wholesale distributor operating across three pillars. Food supplies the IGA network, Hardware encompasses IHG, Mitre 10 and Total Tools, and Liquor operates through brands including Cellarbrations and IGA Liquor. The company is trading at a 28% PE discount to the ASX200, which we think significantly overstates the risk here given that earnings are sitting at a cyclical trough rather than reflecting any structural deterioration in the business.
The hardware division is the most interesting part of the story. IHG owned stores are running at 3.7% EBIT margins versus a mid-cycle level of 6% or higher, which implies significant operating leverage as volumes recover. We expect the hardware cycle to turn with rate cuts anticipated from early 2027, and Total Tools continues to grow its network and shift the overall business mix toward higher-margin, higher-growth segments. The combination of cyclical recovery in hardware and steady cash generation from Food gives Metcash a credible path back to normalised earnings.
A dividend yield above 5.8% provides meaningful downside support while investors wait for the cycle to turn. We think this is a well-positioned business at a trough valuation with clear catalysts ahead. Read the full article on Metcash here.
Supply Network Ltd (ASX: SNL)
Buy, 12-month price target A$38.10 (15.8% upside). Price target and upside based on prices at time of publication.
Supply Network is Australia’s leading aftermarket parts distributor for trucks and buses, operating 26 branches across Australia and New Zealand. This is a business that has compounded revenue and net profit at 12% and 19% annually over the past 20 years, which puts it in rare company on the ASX. Australian sales growth accelerated to 18.5% in the first half of FY26, which is a strong signal that the organic growth engine remains firmly intact.
The structural tailwinds here are compelling. The truck fleet is ageing, which means less repair and more full replacement of components. Road freight volumes continue to grow as the economy expands, and there is a steady shift from OEM parts to aftermarket alternatives as fleet operators focus on cost management. Supply Network is expanding capacity across its branch network to capture this demand, and the balance sheet is clean with net cash and a return on equity above 33%.
The premium valuation of roughly 30x PE is justified in our view by the consistency of growth and the quality of returns. This is the kind of business where the compounding does the work over time. Read the full article on Supply Network here.
Codan Ltd (ASX: CDA)
Buy, 12-month price target A$38.50 (5.6% upside). Price target and upside based on prices at time of publication.
Codan is a technology company with two core divisions. Minelab is a global leader in metal detection technology, and Communications encompasses DTC radios, Zetron dispatch systems, and a fast-growing Unmanned Systems business. Unmanned Systems grew more than 100% in FY25 and is expected to become the largest unit within Communications by FY28, which speaks to the scale of the defence and autonomous systems opportunity Codan is capturing.
Minelab is benefiting from the gold price rally, which is up 67% since February 2025, alongside ongoing new product development. Higher gold prices drive increased artisanal mining activity in key markets across Africa, Asia and the Americas, which directly lifts detector sales. On the Communications side, the orderbook sits at A$294m, providing strong near-term revenue visibility. We forecast a 3-year NPAT CAGR of 27%.
The balance sheet is conservatively geared at 0.4x leverage, leaving plenty of capacity for acquisitive growth. Codan has a track record of disciplined capital allocation and we think the current setup offers an attractive combination of organic growth, acquisition optionality, and earnings momentum. Read the full article on Codan here.
Collins Food Ltd (ASX: CKF)
Buy, 12-month price target A$12.10 (40.7% upside). Price target and upside based on prices at time of publication.
Collins Food is Australia’s largest KFC franchisee, operating approximately 280 restaurants with around 80% of the network concentrated in Queensland and Western Australia. Same-store sales momentum is improving, with growth of 3.6% in the first 7 weeks of the second half of FY26. That acceleration is being driven by digital penetration now at 42% of sales, new product launches including Kwench and a breakfast range, and the continued rollout of ordering kiosks across the store network.
The KFC Germany expansion is an underappreciated growth lever. Collins Foods is targeting 56 stores by FY30 with unit economics that are proving up well. At a group level, we forecast NPAT growth of 19% in FY26 as the combination of same-store sales recovery, network expansion, and improving margins flows through to the bottom line.
Collins Food is trading at 17x next-twelve-month PE versus its 5-year average of 20x, which we think undervalues the improving trajectory and the embedded optionality in the German expansion. Read the full article on Collins Food here.
How We Pick Stocks for This List
Our selection process draws on institutional-grade research combined with our own analysis of each company’s competitive positioning, earnings trajectory, and valuation. We focus on ASX-listed businesses with clear catalysts, strong or improving returns on capital, and management teams with a track record of execution. Every stock on this list carries a Buy rating with a defined price target and investment thesis.
We are not trying to pick the next speculative runner. The companies featured here are profitable, have established market positions, and offer a risk-reward profile that we think makes sense for investors looking to build long-term wealth through Australian equities. We refresh this list as new research is completed, typically every few weeks.
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.
