Buy Australian: ASX stocks positioned to beat global markets next year

The share market has a long history of bouncing back from tough periods. Over more than a century, ASX stocks have delivered returns of roughly 10% per annum on average, even while enduring recessions, inflation spikes, rate shocks, and global turmoil.

But every now and then, certain companies emerge from a difficult year in far better shape than they entered it. And after a challenging 2025 for many high-quality businesses, a select group of ASX stocks is now being tipped to outperform not only the local market, but potentially global indices as well.

If you're looking for standout ASX opportunities for 2026, these two names could be the ones to watch.

CSL Ltd (ASX: CSL)

CSL has had a bruising year, with investor sentiment hurt by Seqirus restructuring noise, tariff speculation, and questions around the margin recovery of the key CSL Behring business. Yet beneath the short-term issues sits one of the most successful Australian companies of the past three decades.

This is a business with enormous competitive advantages, entrenched global market share, and a long runway for growth across plasma therapies, vaccines, and emerging treatments. Analysts widely expect margins to normalise over the next couple of years and earnings growth to accelerate.

Importantly, CSL is now trading at one of its cheapest valuations in years. For a company that is historically priced at a premium, today's discount offers long-term investors a window that doesn't appear often.

UBS currently has a buy rating and $275.00 price target on its shares. This implies potential upside of over 50% for investors from current levels.

TechnologyOne Ltd (ASX: TNE)

Another Australian stock that could beat global markets in 2026 is TechnologyOne. It is a software powerhouse that has grown earnings for over 15 consecutive years. And despite delivering another robust year of recurring revenue growth in FY 2025, its share price has pulled back materially, creating an unusually attractive entry point.

With its software-as-a-service (SaaS) platform entrenched in government, education, and large enterprise customers, this ASX stock enjoys some of the stickiest revenues on the Australian share market. In addition, its margins are among the highest in the tech sector, and its shift to subscription income continues to strengthen its long-term earnings base. Throw in its UK expansion and management's belief that it can double in size every five years, and you have a stock that could be a fantastic buy and hold pick.

The team at UBS is also feeling very bullish on this one. It recently put a buy rating and $38.70 price target on its shares. This suggests that upside of almost 40% is possible between now and this time next year.

The post Buy Australian: ASX stocks positioned to beat global markets next year appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in CSL and Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Technology One. The Motley Fool Australia has recommended CSL and Technology One. 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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