There are a lot of ASX stocks out there for investors to choose from.
To narrow things down, let's take a look at three that analysts think could be among the best to buy in 2026.
Here's what they are recommending to investors:
Life360 is the company behind the eponymous family safety app that has become deeply embedded in the daily lives of 91.6 million users, creating a powerful network effect that is difficult for competitors to replicate.
The company's focus on subscription revenue means it benefits from highly predictable cash flows, while its growing user base provides multiple avenues for monetisation over time. Importantly, Life360 has been demonstrating improving operating leverage, with revenue growth increasingly flowing through to profitability and cash flow.
Looking to 2026, the company's global expansion opportunity remains significant, particularly as it continues to convert free users into paying subscribers and its new advertising business builds momentum.
Bell Potter sees potential for big returns in 2026. It has a buy rating and $52.50 price target on Life360's shares.
Another ASX stock that could be a best buy in 2026 is REA Group. It is arguably one of the highest-quality businesses on the Australian share market. Its flagship platform, realestate.com.au, is the clear market leader in online property listings, giving it extraordinary pricing power and scale advantages.
While housing market cycles can create short-term noise, REA's long-term economics remain extremely attractive. The company benefits from a capital-light business model, strong margins, and the ability to lift prices over time without materially impacting demand.
As interest rates stabilise and housing activity normalises, REA Group is well positioned to accelerate its earnings growth. Add in its expanding presence in adjacent services and international markets, and it is easy to see why REA remains a standout long-term compounder heading into 2026.
UBS is positive on the company's outlook and recently put a buy rating and $255.00 price target on its shares.
Finally, Temple & Webster could be an ASX stock to buy for 2026. It offers investors exposure to the ongoing shift towards online retail, specifically in the furniture and homewares category. Despite recent consumer spending pressures, the company has continued to grow its customer base and improve its operating efficiency.
The key attraction here is its growth runway. Online penetration in furniture remains relatively low compared to other retail categories, suggesting that there is plenty of growth ahead.
It is partly for this reason that analysts at Macquarie have an outperform rating and $24.15 price target on its shares.
The post These could be 3 of the best ASX stocks to own in 2026 appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Life360, REA Group, and Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has recommended Temple & Webster 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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