Top Australian shares to watch in 2026

Why consider Australian shares?

For those operating within the Australian market, there are several structural and strategic reasons to focus on domestic shares. Whether we’re looking at it from the perspective of a share trader or a CFD trader, the local landscape offers unique advantages that are often missing from international markets.

For share traders, there’s a home-ground advantage in information. Investors are naturally more exposed to news regarding Australian regulatory shifts, local consumer trends and domestic economic data. This proximity allows for a more intuitive understanding of a business's health.

For CFD traders, the Australian market is particularly attractive due to its specific sector weightings. The ASX is heavily weighted towards materials and financials, sectors that are highly sensitive to global macro events, interest rate decisions by the RBA and commodity price shifts. This creates the oscillation required for short-term trading. A stock like Electro Optic Systems, for example, can experience sharp price movements based on a single government contract announcement, providing the volatility that traders thrive on.

Risks of Australian shares

It’s important to distinguish between the risks of traditional share trading and the specific mechanics of CFD trading, especially when dealing with high-momentum mid-cap stocks like the ones we’ve selected. While both involve market exposure, the way risk manifests – and its potential impact on a portfolio – differs significantly.

Share traders

• Sector-specific volatility: Many of the companies on our list are sensitive to specific external factors. For instance, Sandfire Resources is heavily tied to the spot price of copper. If global industrial demand slumps, the share price could drop regardless of how well the company is managed
• Regulatory and clinical: Companies like Telix Pharmaceuticals and 4DMedical rely on approvals from regulatory bodies. If a clinical trial fails or a regulatory application is rejected, the share price can experience a permanent downward shift
• Liquidity: While these five are currently popular, mid-cap stocks can sometimes suffer from lower liquidity than blue chips. This means that if a sell-off occurs, it may be difficult to exit a large position at a desirable price without further driving the price down
• Concentration: Because these firms are often specialists in one niche – such as Electro Optic Systems in defence – share traders lack the natural hedge that a diversified company might offer. A single contract cancellation or a shift in government policy can have a disproportionate impact on the entire investment

CFD traders

• News volatility: While market movements create opportunities for CFD traders, it’s still inherently risky. Central bank decisions, earnings reports or sudden changes in commodity prices can cause massive swings in the market, and trading with leverage magnifies the potential for bigger profits and losses
• Regulation and compliance: Mining companies, for example, must deal with environmental and political risks, both at home and overseas. These factors can make share prices extremely volatile

Top 5 Australian shares to watch in 2026

These five companies represent a diverse cross-section of the Australian shares market, spanning resources, high-tech manufacturing, healthcare and industrial services. Most have demonstrated strong upward momentum over the past six months, driven by specific strategic milestones or shifting global demand.

It’s no surprise that these companies are made up of these sectors – some are the cornerstones of the Australian economy.

Overview of the shares in this article

You can share trade and CFD trade all of the shares in this article through us.

All figures are correct as of 20 March 2026.

1. Sandfire Resources (ASX: SFR)

Industry: Other metals/minerals

Market cap: A$7.33 billion¹

Sandfire Resources operates as a mid-tier mining and exploration entity with a primary focus on copper production.

Its business model shifted significantly following the wind-down of its flagship Australian DeGrussa mine, pivoting towards large-scale international assets, most notably the MATSA mining complex in Spain and the Motheo copper mine in Botswana.

A major development has been the fast-tracking of waste stripping at its Motheo site, which is intended to de-risk future production targets. Additionally, strategic expansion continues through new exploration alliances in South Australia and progress on its US-based projects, signalling a busy pipeline for the remainder of 2026.

For CFD traders, this stock offers high liquidity and frequent price swings tied to daily fluctuations in copper prices and macroeconomic data from China.

For share traders, the clear strategic growth path and exposure to essential green metals offer a compelling narrative for those willing to hold through the typical cycles of the mining industry.

Highlights:

• By positioning itself as a pure-play copper producer, it aims to benefit directly from the global electrification trend and the resulting long-term demand for industrial metals
• The market appears to be rewarding the company’s successful transition, with the stock recently testing new highs
• Its share price has increased by 24.70% over the past six months²

2. Telix Pharmaceuticals Limited (ASX: TLX)

Industry: Biotechnology

Market cap: A$4.21 billion³

Operating within the specialised field of radiopharmaceuticals, Telix Pharmaceuticals develops theranostics – products that can both image and treat cancer. Its business model relies on a proprietary platform that targets specific cancer cells with radioactive isotopes, allowing for more precise diagnosis and therapy.

The company generates significant revenue from its lead imaging product for prostate cancer, which it uses to fund a deep research pipeline targeting brain, kidney and bone marrow cancers.

CFD traders may find this stock appealing due to its sensitivity to regulatory announcements and clinical trial data, which often trigger rapid price movements.

For share traders, the company represents a more mature biotech play with a proven ability to commercialise its technology, potentially offering a steadier growth outlook as its newer products move toward market approval.

Highlights:

• The last six months have been defining for the company, marked by a series of successful regulatory milestones and commercial expansions
• The company’s share price decreased by 9.70% over the past six months, but has seen strong growth over the past month, sitting at a 40.88% improvement in performance over this recent period⁴

3. Reece Limited (ASX: REH)

Industry: Wholesale distributors

Market cap: A$8.62 billion⁵

Reece is a leading distributor of plumbing, waterworks and heating products, with a massive footprint across Australia, New Zealand and the United States. Its business model is built on providing essential supplies to trade customers in the residential, commercial and infrastructure sectors. By operating a vast network of physical branches alongside integrated digital tools, it acts as a critical link in the construction supply chain, maintaining strong brand loyalty among professional contractors.

In the past six months, news has been dominated by the company's half-year results, which highlighted its resilience in a challenging global housing market. Despite high interest rates impacting new home construction, Reece has continued to expand its network, adding dozens of new branches in the US and several in Australia.

The stock might be suitable for share traders looking for a solid cyclical play with a history of strong management and defensive qualities. Its daily price action is typically less volatile than speculative tech stock. It presents a more stable option for those who prefer a company with tangible assets and a dominant market position.

Highlights:

• Over the past six months, the stock has defied broader concerns about the construction sector, delivering a solid increase in its share price
• Its share price has soared a decent 29.76% over the past six months⁶

4. Electro Optic Systems Holdings Limited (ASX: EOS)

Industry: Aerospace and defence

Market cap: A$1.86 billion⁷

Electro Optic Systems Holdings operates across the global space, defence and communications domains. It focuses on developing advanced remote weapon systems, satellite communications terminals and space debris tracking services. It often works on long-term government contracts, providing sophisticated hardware and software solutions that are increasingly in demand due to shifting global geopolitical tensions.

Six-month news has centred on several large-scale international contract wins for its remote weapon systems and a strategic focus on improving cash flow.

Performance over the past six months has been solid, with the share price seeing a dramatic recovery from previous lows. This surge has been driven by a combination of positive contract news and a broader investor interest in the defence technology sector. While the stock has experienced some sharp retracements after rapid gains, the overall trend has been one of significant capital appreciation as the company proves its commercial viability.

This share is a classic candidate for CFD traders, as its share price can oscillate wildly based on contract wins or geopolitical news. This volatility creates high-reward opportunities for those who track sector-specific developments.

For share traders, the appeal lies in the company’s role in the critical defence sector, though the stock remains higher on the risk-reward spectrum compared to more established industrial names.

Highlights:

• Market sentiment was particularly boosted by recent announcements that full-year earnings exceeded analyst expectations, marking a potential turning point in the company's financial health
• Its share price has surpassed 28% growth over the past six months⁸

5. 4DMedical Limited (ASX: 4DX)

Industry: Information technology services

Market cap: A$2.37 billion⁹

Specialising in respiratory imaging, 4DMedical has developed patented software that provides a four-dimensional view of lung function. Its business model is based on a Software-as-a-Service (SaaS) delivery, where it charges for scans processed through its AI-driven platform.

Unlike traditional static X-rays, its technology allows clinicians to see exactly how air moves through the lungs in real-time, providing far more detailed diagnostic insights for chronic conditions.

Recent news has been highly positive, particularly regarding the company’s expansion into the lucrative US healthcare market. A major highlight was the recent inclusion of the company in a prominent Australian stock market index, which typically leads to increased interest from institutional funds.

For CFD traders, the recent surge in liquidity and the stock's tendency to react strongly to new hospital partnerships make it an active play for short-term strategies.

For share traders, the company offers an early-stage growth story with a high-margin business model.

Highlights:

• Price action has been characterised by strong momentum, with the stock frequently hitting new highs as it achieves key commercial milestones
• The share price grew a whopping 139.55% over the past six months¹⁰

How to trade Australian shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for Australian shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for Australian shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about Australian shares

Footnotes
 

1. TradingView, March 2026
2. TradingView, March 2026
3. TradingView, March 2026
4. TradingView, March 2026
5. TradingView, March 2026
6. TradingView, March 2026
7. TradingView, March 2026
8. TradingView, March 2026
9. TradingView, March 2026
10. TradingView, March 2026
11. ASX, March 2026