My top 10 ASX stocks to buy for 2026

These are my top picks for 2026.

Key points
  • Xero appears undervalued and poised for recovery; Weebit Nano's unique technology positions it for market dominance; CSL shows potential for rebound amid consistent demand.
  • Mesoblast offers strong growth prospects in biotech, while Judo Capital stands out with strong lending momentum and positive outlook.
  • Flight Centre and Megaport present buying opportunities with growth potential; Woolworths and Soul Pattinson provide stable dividends; Plato Income offers high monthly payouts for income seekers.

As 2025 draws to a close, all eyes are on the best ASX stocks to buy in 2026. These are my top picks.

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Image source: Getty Images

Xero Ltd (ASX: XRO)

Xero shares have faced a couple of headwinds in 2025, but I think the latest investor sell-off was unwarranted and overdone. The New Zealand-based cloud-based accounting software company looks like a great buying opportunity at the current trading price. Analysts also expect the shares to double in value next year. Seems like a no-brainer to me.

Weebit Nano Ltd (ASX: WBT) 

Weebit develops and licenses a new memory technology (Resistive Random-Access Memory, or ReRAM), which is designed to replace traditional Flash memory. The company has had an exceptionally strong start to the financial year, and given that there are very few businesses that can replicate its technology in-house, it looks like Weebit could quickly become a dominant market player. 

CSL Ltd (ASX: CSL)

It's no secret that CSL shares have been through the wringer this year, suffering not one, but two brutal sell-offs. But I think we could be beginning to see green shoots of recovery. But CSL's core business remains robust, and demand for its products continues to grow globally. I think there is now an opportunity to buy the biotech company's shares at a rare discount.

Mesoblast Ltd (ASX: MSB)

If you're unsure about CSL shares, Mesoblast is another Australian clinical-stage biotech company that has exceptional potential for strong growth. The company is also well-funded and won't be subject to the US 100% tariff on pharmaceuticals. What's not to like?

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares have stormed higher over the past 6 weeks following a promising trading update in November. The company said it is off to a positive start for FY26 and expects more growth over the next 12 months. I think that the current share price dip presents a great opportunity for investors to buy into the stock for cheap.

Judo Capital Holdings Ltd (ASX: JDO)

The outlook for ASX bank stocks doesn't look very promising right now, with the exception of Judo Bank, of course. Unlike its larger peers, the bank has had a strong start to FY26, and it looks set to continue. At its latest AGM, it said lending momentum was strong over the first quarter and that it's confident it can achieve FY26 guidance of $180-$190 million.

Megaport Ltd (ASX: MP1)

The software-defined network (SDN) service provider is another favourite of mine. The ASX stock has suffered amid the tech-sector-wide investor sell-off over the past couple of months, but I'm very optimistic that there is a huge share price upside ahead. Megaport is rapidly expanding and reinvesting into growth plans.

Woolworths Group Ltd (ASX: WOW)

Woolworths' oligopoly, with supermarket rival Coles, means the two ASX stocks have significant power over the Australian grocery sector. It's this dominance that gives Woolworths a competitive advantage in the retail space. The business is huge, it is defensive, and Woolworths is well-known for its lengthy history of paying consistent, and sometimes generous, dividends.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts is Australian dividend royalty. The diversified Australian investment house pays its fully-franked dividends twice per year and has offered a consistent yield of 2.3% to 2.4% since 2016. In FY25, it paid a total $1.03 per share, 100% fully franked. Any investors which don't have Soul Patts in their portfolio should buy the ASX stock in 2026.

Plato Income Maximiser Ltd (ASX: PL8) 

Investors looking for a reliable passive income but want the payouts to be more regular should look into Plato. It's a perfect ASX retirement stock that pays out around 4.58% every single month. The ASX dividend stock is focused on delivering high, reliable monthly income with franking credits from an actively managed, diversified portfolio of Australian shares.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Megaport, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited, Woolworths Group, and Xero. The Motley Fool Australia has recommended CSL and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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