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What are the best ASX stocks of 2021? (June update)
We found 20 stocks worth watching in the year ahead.
Investments
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Important note
There's no single share that's best for all investors as all our needs are different – and what's best for you might not be best for someone else. No-one can say for certain which direction stocks will go; these are ideas only and should not be taken as financial advice.
GameStop and Reddit might be the show-stealers so far this year, but the Australian Securities Exchange (ASX) has been making some pretty big moves itself lately. After a US sell-off drove the Australian share market to its worst session in months in early February, the ASX200 index has since staged an impressive rebound. At the time of writing, the ASX200 index is up more than 5% since February 1.
If you're feeling bullish about the ASX in 2021 but not sure where to start, we've put together a list of ASX stocks that could be worth watching in the year ahead.
Stock themes for 2021
Unless you have a crystal ball, it's impossible to say what the next 12 months will look like. But we do know some of the big themes that will probably continue to drive prices in 2021:
- COVID-19 vaccine rollouts
- Working from home trends
- US political divisions
- Australia-China tensions
- Cannabis legalisation
- Cryptocurrency and gold
- Low interest rates
Stocks to watch in 2021
With all that in mind, it's not easy picking quality stocks. To help identify stock picks for 2021, we used Finder's proprietary algorithm to filter Australian-listed companies that have strong fundamentals. We take into account historical prices, dividends, revenue growth, (low) price volatility and profit margins, which might indicate a quality stock.
To avoid speculative stocks, we only include companies with a market cap of more than $1 billion. In order to better compare historical data, we filtered out stocks that have been listed on the ASX for less than five years.
This doesn't mean these are the best stocks for you. Always do your own research and chat with a professional when in doubt.
The algorithm was last updated 10 June 2021.
How did we pick this list?
We use a proprietary algorithm that rates ASX-listed stocks based on price performance, profit, revenue and dividends. The information provided is general in nature, not personal financial advice, and your personal objectives, financial situation or needs have not been taken into consideration. The companies displayed on this page may not be the best for you and you’re encouraged to do your own research. Always remember that past performance is no guarantee of future results. Investments can go up and down and we do not guarantee the performance of or returns of any investment. For more information about our algorithm, head to our stock ranking page.
4: Fortescue Metals Group Limited
6: Charter Hall Social Infrastructure REIT
7: Pinnacle Investment Management Group Limited
Zimplats Holdings Ltd (ZIM.ASX)
Zimplats Holdings engages in the production of platinum and associated metals mined from the Great Dyke in Zimbabwe. The company produces platinum, palladium, rhodium, iridium, and ruthenium, as well as nickel, gold, copper, cobalt, and silver deposits.- Market cap: $2.745 billion
- YTD performance: $2.745 billion
- 1 Year performance: 143.25%
- 5 Year performance: 521.63%
- P/E Ratio: 4.9095
- Headquarters: Australia
Goodman Group (GMG.AU)
Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.- Market cap: A$38.353 billion
- YTD performance: 10.3%
- 1 Year performance: 40.29%
- 5 Year performance: 230.53%
- P/E Ratio: 22.5898
- Headquarters: Australia
Aventus Group (AVN.AU)
Aventus Group is Australia's largest fully-integrated owner, manager and developer of large format retail centres in Australia with a portfolio of 20 centres valued at $2.2 billion. Aventus Group portfolio spans 536,000m2 in gross leasable area and features a diverse tenant base of 593 quality tenancies, with national tenants representing 87 per cent of the total portfolio.- Market cap: A$5.25 billion
- YTD performance: 10.91%
- 1 Year performance: 51.75%
- 5 Year performance: 124.27%
- P/E Ratio: 19.4304
- Headquarters: Australia
Fortescue Metals Group Limited (FMG.AU)
Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It also explores for copper and gold deposits.- Market cap: A$69.616 billion
- YTD performance: -6.7%
- 1 Year performance: 62.29%
- 5 Year performance: 564.27%
- P/E Ratio: 8.4334
- Headquarters: Australia
Mineral Resources Limited (MIN.AU)
Mineral Resources Limited, together with subsidiaries, operates as a mining services and processing company in Australia, China, and Singapore. It operates through three segments: Mining Services, Commodities, and Central.- Market cap: A$9.075 billion
- YTD performance: 25.02%
- 1 Year performance: 149.59%
- 5 Year performance: 504.6%
- P/E Ratio: 14.1996
- Headquarters: Australia
Charter Hall Social Infrastructure REIT (CQE.AU)
Charter Hall Social Infrastructure REIT is the largest Australian ASX-listed real estate investment trust (A-REIT) that invests in social infrastructure properties. Charter Hall Social Infrastructure REIT is managed by Charter Hall Group (ASX:CHC).- Market cap: A$1.288 billion
- YTD performance: 10.43%
- 1 Year performance: 58.6%
- 5 Year performance: 126.42%
- P/E Ratio: 12.724
- Headquarters: Australia
Pinnacle Investment Management Group Limited (PNI.AU)
Pinnacle Investment Management Group Limited operates as an investment management company in Australia. The company offers third party distribution, and fund infrastructure and support services to its affiliates and various investment managers.- Market cap: A$2.03 billion
- YTD performance: 43.45%
- 1 Year performance: 175.87%
- 5 Year performance: 637.59%
- P/E Ratio: 39.5911
- Headquarters: Australia
SeaLink Travel Group Limited (SLK.AU)
SeaLink Travel Group Limited operates as a tourism and transport company in Australia, Singapore, and the United Kingdom. It operates through Marine & Tourism, Australian Bus, and International Bus segments.- Market cap: A$2.108 billion
- YTD performance: 40.82%
- 1 Year performance: 128.05%
- 5 Year performance: 259.62%
- P/E Ratio: 214.4444
- Headquarters: Australia
Eagers Automotive Limited (APE.AU)
Eagers Automotive Limited engages in the ownership and operation of motor vehicle and truck dealerships in Australia and New Zealand. It operates through four segments: Car Retailing, Truck Retailing, Property, and Investments.- Market cap: A$3.962 billion
- YTD performance: 13.89%
- 1 Year performance: 150.99%
- 5 Year performance: 422.61%
- P/E Ratio: 26.911
- Headquarters: Australia
Clinuvel Pharmaceuticals Limited (CUV.AU)
Clinuvel Pharmaceuticals Limited, a biopharmaceutical company, focuses on developing and delivering drugs for the treatment of patients with severe genetic and skin disorders worldwide. Its lead drug candidate is SCENESSE, a photoprotective drug for the prevention of phototoxicity in adult patients with erythropoietic protoporphyria (EPP).- Market cap: A$1.344 billion
- YTD performance: 24.28%
- 1 Year performance: 40.21%
- 5 Year performance: 580.49%
- P/E Ratio: 60.9641
- Headquarters: Australia
WiseTech Global Limited (WTC.AU)
WiseTech Global Limited provides software solutions to the logistics industry in the Asia Pacific, the Americas, Europe, the Middle East, and Africa. The company develops, sells, and implements software solutions that enable logistics service providers to facilitate the movement and storage of goods and information.- Market cap: A$10.402 billion
- YTD performance: 0.1%
- 1 Year performance: 64.01%
- 5 Year performance: 635.09%
- P/E Ratio: 71.5521
- Headquarters: Australia
Arena REIT (ARF.ASX)
Arena REIT is an ASX300 listed property group that owns, manages and develops social infrastructure properties across Australia..- Market cap: $1.046 billion
- YTD performance: $1.046 billion
- 1 Year performance: 64.16%
- 5 Year performance: 167.7%
- P/E Ratio: 10.339
- Headquarters: Australia
Australia and New Zealand Banking Group Limited (ANZ.AU)
Australia and New Zealand Banking Group Limited provides various banking and financial products and services in Australia, New Zealand, the Asia Pacific, Europe, and the United States. Its Australia Retail and Commercial division offers various products and services to consumer customers through the branch network, mortgage specialists, contact centers, self-service channels, and third-party brokers, as well as financial planning services.- Market cap: A$83.176 billion
- YTD performance: 24.87%
- 1 Year performance: 71.21%
- 5 Year performance: 96.01%
- P/E Ratio: 17.7474
- Headquarters: Australia
Centuria Capital Group (CNI.AU)
Centuria Capital Group, an investment manager, markets and manages investment products primarily in Australia. It operates through four segments: Property Funds Management, Investment Bonds Management, Co-Investments, and Corporate.- Market cap: A$1.932 billion
- YTD performance: 1.15%
- 1 Year performance: 60.18%
- 5 Year performance: 168.52%
- P/E Ratio: 55.8696
- Headquarters: Australia
Charter Hall Group (CHC.AU)
With over 30 years' experience in property investment and funds management, we're one of Australia's leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors ? office, retail, industrial & logistics and social infrastructure.- Market cap: A$21.24 billion
- YTD performance: 4.26%
- 1 Year performance: 64.68%
- 5 Year performance: 260.52%
- P/E Ratio: 34.2342
- Headquarters: Australia
Pro Medicus Limited (PME.AU)
Pro Medicus Limited provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualization solutions in Australia, Europe, and North America. It offers medical software for practice management; integration products; Promedicus.net secure email; healthcare software that provides radiologist and clinicians with advanced visualization capability for viewing 2-D, 3-D, and 4-D medical images; and PACS/Digital imaging software.- Market cap: A$5.817 billion
- YTD performance: 58.76%
- 1 Year performance: 142.26%
- 5 Year performance: 1184.73%
- P/E Ratio: 237.4894
- Headquarters: Australia
Washington H. Soul Pattinson and Company Limited (SOL.AU)
Washington H. Soul Pattinson and Company Limited, together with its subsidiaries, engages in the equity investment, mining, and property investment businesses.- Market cap: A$7.477 billion
- YTD performance: 2.13%
- 1 Year performance: 58.98%
- 5 Year performance: 112.82%
- P/E Ratio: 7.6997
- Headquarters: Australia
Brickworks Limited (BKW.AU)
Brickworks Limited manufactures, sells, and distributes building products for the residential and commercial markets in Australia and internationally. It operates through Building Products Australia, Building Products North America, Property, and Investments segments.- Market cap: A$3.596 billion
- YTD performance: 21.03%
- 1 Year performance: 56.82%
- 5 Year performance: 96.67%
- P/E Ratio: 11.4479
- Headquarters: Australia
Centuria Industrial REIT (CIP.ASX)
CIP is Australia's largest domestic pure play industrial REIT and is included in the S&P/ASX 200 Index. CIP's portfolio of high-quality industrial assets is situated in key metropolitan locations throughout Australia and is underpinned by a quality and diverse tenant base.- Market cap: $1.625 billion
- YTD performance: $1.625 billion
- 1 Year performance: 27.56%
- 5 Year performance: 64.75%
- P/E Ratio: 8.806
- Headquarters: Australia
Iluka Resources Limited (ILU.AU)
Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Jacinth-Ambrosia/Mid West, Cataby/South West, Sierra Rutile, and United States/Murray Basin segments.- Market cap: A$3.366 billion
- YTD performance: 17.33%
- 1 Year performance: 73.67%
- 5 Year performance: 128.98%
- P/E Ratio: 1.3943
- Headquarters: Australia
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How to pick stocks
There's no single winning strategy to filter "good stocks" because the most important consideration is your own circumstances. Besides, the best stocks are those that perform well in the future. And if 2020 has taught us anything, it's that stock market predictions are often wrong.
But that doesn't mean you shouldn't do your homework. Whether you care more about short-term capital gains or long-term dividend growth, it's important to know whether a stock is performing well, making a profit, paying dividends or going backwards.
Successful vaccine scenario
There's a lot riding on whether a global vaccine rollout is successful. In the best-case scenario, vaccines are delivered to the masses quickly and effectively, borders open and life gets back to normal.
In this case, stocks in the travel, banking and energy sectors are expected to benefit as business picks up again. At the same time, IT stocks that rallied thanks to working from home conditions could slow down as portfolios are adjusted.
Of course, we can all envision the worst-case scenario, but the reality probably lies somewhere in between. Regardless, the outcome will likely have a big impact on which stocks perform the best.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
News
- Why is the CBA, NAB share price under pressure today?
- Today’s ASX top stocks: Imricor Medical Systems (IMR ↑12.5%), Betmakers Technology Group (BET ↑11.1%)
- Today’s ASX top stocks: Opthea (OPT ↑15.6%), Bigtincan Holdings (BTH ↑11.8%)
- Why has the Coles (COL) share price dived?
- Today’s ASX top stocks: 8Vi Holdings (8VI ↑23.6%), Avita Medical (AVH ↑12.6%)
Image source: Getty
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