The February–March 2026 reporting season is now well underway, with many ASX-listed companies reporting earnings and updating guidance.
Market expectations are improving, with consensus forecasts pointing to a return to positive earnings-per-share (EPS) growth in 2026following several years of subdued performance. This rebound is led by the resources sector, with additional support from banks and industrials. All major banks reported underlying results ahead of consensus expectations.
The top 10 best-performing ASX stocks over the past six months have all come from the resources sector, driven by strong commodity price gains. Over the past year, gold (+88%), silver (+268%),copper (+40%) and lithium (+122%) have recorded substantial increases, while Australia’s largest export, iron ore, has lagged (+5%). Reflecting this divergence, and given its growing copper exposure, BHP has overtaken CBA as the largest company on the ASX.
Corporations in Australia and abroad have proven resilient by demonstrating an ability to increase earnings, regardless of numerous challenges, including COVID, supply chain disruption, inflation and interest rate movements, tariffs, geopolitical tension and so on. Investors have been well served focusing on earnings strength and resilience, rather than uncontrollable macro issues.
Uranium’s Investment Case and How to Get Exposure
The growing and widening uranium supply/demand gap is creating potential opportunities for investors. Global uranium mine supply does not meet current world reactor demand. The current 3% supply/demand deficit in 2025 is expected to grow significantly with demand for uranium expected to double by 2040.
Main Drivers of New Demand
- Rising rate of energy consumption growth from a growing demand for clean reliable baseload power.
- Climate targets reinforcing nuclear adoption.
- AI and digital infrastructure accelerating data center power use.
- Nuclear’s role in the growing focus on energy security.
- The growth and increasing focus on small modular nuclear reactors providing scalable and accessible power.
The Momentum Behind Nuclear’s Growth
- The AI powered nuclear renaissance is being driven by the Tech giants like Microsoft, Meta and Amazon who are paying premiums for nuclear’s reliable, zero-emission energy to power their rapidly growing data center numbers.
- Longer term nuclear expansion was recently enhanced when Cameco announced a transformational partnership with the US Department of Commerce for the development of over US$80 billion of new reactors.
- In the shorter term, Asia’s nuclear expansion is well underway with India and China leading the way. China alone accounts for over 40% of planned global capacity with 10 new reactors
approved in April 2025. With an average build time of just over 5 years – significantly less than the US – and with strong industrial and government investment, Asia is emerging as the global leader in nuclear development. In this framework India is expected to treble nuclear capacity by 2032. Six reactors or 5.2 GW of nuclear capacity is currently under construction as at the end of 2025. That’s enough to support up to 3.5 million homes.