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 25 May 2026.
| Stock | Rating | Price Target | Last Price | Upside | Div Yield |
| Metcash (ASX: MTS) | Buy | A$3.80 | A$3.07 | 23.8% | 5.8% |
| Supply Network (ASX: SNL) | Buy | A$38.10 | A$29.18 | 30.6% | |
| PWR Holdings (ASX: PWH) | Buy | A$10.40 | A$9.34 | 11.3% | |
| Codan (ASX: CDA) | Buy | A$38.50 | A$40.42 | -4.8% | |
| Collins Food (ASX: CKF) | Buy | A$12.10 | A$8.58 | 41.0% |
Our Top 5 Stocks To Buy Right Now on the ASX
Table of Contents
WEB Travel Group (ASX: WEB)
Buy, 12-month price target A$4.70 (110.8% upside). Price target and upside based on prices at time of publication.
WEB Travel Group operates WebBeds, the world’s second-largest B2B accommodation wholesaler behind Expedia’s B2B segment. The platform connects hotels with travel providers including OTAs, traditional agents, airlines and tour operators. WEB was demerged from Webjet Limited in 2024, separating the B2B wholesale operations from the consumer-facing business (now Webjet Group, ASX: WJL). Market cap of approximately A$813 million with a 30 June fiscal year end.
The hotel bed wholesaling sector is growing at double-digit rates across every major player. WEB posted 17 per cent constant-currency TTV growth in 1H26, HBX is guiding 11 to 17 per cent, and Expedia B2B grew gross bookings 22 per cent in 1Q26. Near-term headwinds from the Middle East conflict and a stronger Australian dollar have compressed estimates by 6 to 18 per cent, but the Middle East represents less than 9 per cent of group TTV and the impact is cyclical rather than structural. Americas share gains continue to come through in results.
At 9 times forward earnings against a 16 times historical average, the market is pricing in a permanent impairment that the numbers do not support. The target of A$4.70 is derived from a blend of FY27 EV/EBITDA fundamental value (85% weight at 9.0x) and theoretical M&A (15% weight at 17.0x). The risk-reward at current levels looks compelling for investors willing to look through the near-term noise. Read the full article on WEB Travel Group here.
Aristocrat Leisure Ltd (ASX: ALL)
Buy, 12-month price target A$61.00 (33.0% upside), ~2.0% forward dividend yield. Price target and upside based on prices at time of publication.
Aristocrat Leisure is the global leader in land-based gaming content and cabinets, with a market share above 40 per cent in key jurisdictions. The company also operates Product Madness (social casino) and a growing real-money iGaming and iLottery segment. Listed on the ASX since 1996 with a September fiscal year end.
We rate Aristocrat a Buy with a 12-month price target of A$61.00, implying 33 per cent upside from current levels. The 1H26 result showed Gaming revenue growing 5 per cent on a normalised basis, with net machine adds tracking to the upper end of management guidance. The Board has lifted the on-market buyback to A$1 billion for FY26 and the interim dividend was increased to 50 cents per share, accelerating capital returns well beyond the prior pace.
On consensus estimates, the forward P/E compresses from 27 times today to roughly 14 times by FY28 as earnings growth catches up. This does not require multiple expansion, just delivery on the existing growth trajectory. For a business with this quality of franchise and capital allocation discipline, 14 times forward earnings represents a meaningful discount to global gaming peers. Read the full article on Aristocrat Leisure here.
Nick Scali Ltd (ASX: NCK)
Buy, 12-month price target A$20.10 (38.9% upside), ~5.0% fully franked forward dividend yield. Price target and upside based on prices at time of publication.
Nick Scali is Australia’s premium furniture retailer, operating more than 60 stores under the Nick Scali brand and approximately 70 under the Plush Sofas banner. The business carries ANZ gross margins above 65 per cent, a level that is structurally above most Australian retail peers and reflects a direct-from-manufacturer sourcing model that bypasses the discount brackets where margins compress. The 1H26 result confirmed the margin advantage is holding even through active promotional periods.
The stock has re-rated significantly from its February 2026 post-result levels, bringing the forward P/E back to approximately 14 times FY27 earnings. At that multiple, with a forward fully franked yield approaching 5 per cent and early traction in the UK expansion visible through 32 per cent like-for-like growth in refurbished UK stores, the risk-reward is materially more attractive than it was at A$24. The dividend is well-supported by A$101 million in FY25 free cash flow. Read the full article on Nick Scali here.
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.
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.
