We're closing off the first month of 2026, which means all eyes are still on companies tipped to be the top ASX stock climbers this year. While there are some top Australian stocks I'd buy right now with any spare cash, there are also some I'd avoid.
Here are three of them.
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Commonwealth Bank of Australia (ASX: CBA)
CBA shares enjoyed a strong share price rally in mid-2025, with the ASX stock peaking at an all-time high of $192 a piece in June. But strong headwinds sent the share price plummeting. At the time of writing, the share price has dropped 22.24% from that peak price.
And I think the price declines could keep on going. In fact, I think it's possible the shares could drop below $100 by the end of the year. The problem is, CBA's share price is overvalued relative to its peers, and its premium price tag isn't supported by its earnings or business fundamentals.
At the time of writing, CBA's current price-to-earnings (P/E) ratio is 24.86. This is much higher (and therefore costs investors more) than other major banks. I'll be staying clear of the banking major until I see a turnaround.
PLS Group Ltd (ASX: PLS)
The lithium miner's shares have had an incredible run during the first month of the year, pushed higher by a rally in lithium prices and demand. The business has gone from strength to strength over the past 12 months, with strong production numbers and revenue upticks.
But I'm concerned that, after such a strong increase, we could see some share price volatility ahead for PLS. I expect the price to cool in the coming months. And while I think we'll see some more upside much further down the line, I'm going to sit out on this one for now.
Evolution Mining Ltd (ASX: EVN)
Evolution Mining has been riding the wave of the 2026 gold price rally. The price of gold rocketed to an all-time high this week, surpassing the US$5,300 per ounce barrier. But I think the ASX miner's stock price peak is close, or potentially has already passed. Ultimately, the current share price looks overvalued to me, and I expect a correction in the near future.
I'm also wary that the ASX 200 gold miner is heavily reliant on higher-than-ever gold prices. That means that any pullback could send the shares crashing down. I wouldn't be shocked if the miner's shares halve in value this year.
