A select group of ASX All Ords stocks look well-placed to outperform the All Ordinaries Index (ASX: XAO) heading into 2026.
Amid forecasts of a looming rebound for many raw materials, though not necessarily iron ore, many analysts are forecasting that the long-awaited rotation from high-performing S&P/ASX 200 Index (ASX: XJO) bank stocks into underperforming ASX mining stocks is about to kick off.
ASX 200 superstar Commonwealth Bank of Australia (ASX: CBA) could face some of the steeper selling. CBA shares have soared some 40% over the past year, making it the biggest company on the ASX with a market cap of $299.6 billion.
With the BHP Group Ltd (ASX: BHP) share price down around 14% over 12 months, the mining giant has slipped to number two on the ASX, with a market cap of $195.9 billion.
A number of analysts expect that BHP shares stand to benefit from the forecast rotation out of CBA shares (particularly with BHP's growing copper exposure). However, Perennial portfolio manager Sam Berridge believes a handful of ASX All Ords stocks should perform significantly better.
According to Berridge (quoted by The Australian Financial Review):
If we get a normalisation of this trade war and the US continues to cut rates because tariffs aren't as inflationary as expected, that should sow the seeds for a decent commodities rally towards the end of this calendar year and certainly into 2026.
But Berridge doesn't expect BHP shares to be the biggest beneficiary.
Instead, Perennial's Strategic Natural Resources Fund is investing in ASX All Ords stocks with strong exposure to raw materials, including aluminium, copper, rare earths, and gold.
For copper exposure, his fund holds FireFly Metals Ltd (ASX: FFM), among others. The FireFly Metals share price is up 32% over the past year, currently trading for $1.10 a share.
As for some of Perennial's top gold bets, Berridge named Ramelius Resources Ltd (ASX: RMS) and Turaco Gold Ltd (ASX: TCG). Amid a soaring gold price, the Ramelius Resources share price is up 27% over 12 months. Turaco Gold shares have rocketed 138% over this same time.
Gold is currently trading for US$3,331 per ounce, up around 29% in 12 months.
Berridge also expects to see a rare earths rally, which could usher in a welcome turnaround for ASX All Ords stock Brazilian Rare Earths Ltd (ASX: BRE). Shares in the rare earths miner are down 28% since this time last year.
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