What are the best ASX stocks of 2022? (January update)
We found 20 stocks worth watching in the year ahead.
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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. At the time of writing, the ASX200 index is up more than 49% since the bottom of the 2020 market crash.
And that's not including our world leading dividends.
If you're feeling bullish about the ASX in 2022 but not sure where to start, we've put together a list of ASX stocks that could be worth watching in 2022.
Stock themes for 2022
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 2022:
- 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 2022
With all that in mind, it's not easy picking quality stocks. To help identify stock picks for 2022, 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 6 January 2022.
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.
11: Ansell Limited
13: APA Group
14: Appen Limited
15: Arena REIT
17: Aristocrat Leisure Limited
18: ASX Limited
Adbri Limited (ABC.AU)
Adbri Limited manufactures, imports, distributes, and markets construction materials in Australia. The company operates in two segments, Cement, Lime, Concrete and Aggregates; and Concrete Products.- Market cap: A$1.828 billion
- YTD performance: -16.11%
- 1-year performance: 0.72%
- 5-year performance: 53.14%
- P/E ratio: 15.0811
- Headquarters: Australia
AGL Energy Limited (AGL.AU)
AGL Energy Limited supplies energy and other services to residential, small and large businesses, and wholesale customers in Australia. It operates in three segments: Customer Markets, Integrated Energy, and Investments.- Market cap: A$4.919 billion
- YTD performance: -56.5%
- 1-year performance: 2.16%
- 5-year performance: 2.16%
- P/E ratio: N/A
- Headquarters: Australia
Air New Zealand Limited (AIZ.AU)
Air New Zealand Limited provides passenger and cargo transportation services on scheduled airlines primarily in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States. The company also offers ground handling services; engineering and maintenance services, including aircraft and component maintenance, repair, and overhaul services; aviation services; and aircraft leasing and financing services.- Market cap: A$3.187 billion
- YTD performance: -14.71%
- 1-year performance: 4.03%
- 5-year performance: 73.18%
- P/E ratio: N/A
- Headquarters: Australia
ALS Limited (ALQ.AU)
ALS Limited provides professional technical services primarily in the areas of testing, measurement, and inspection in Africa, Asia/Pacific, Europe, the Middle East, North Africa, and the Americas. The company operates through three segments: Commodities, Life Sciences, and Industrial.- Market cap: A$6.202 billion
- YTD performance: 43.2%
- 1-year performance: 48.72%
- 5-year performance: 201.96%
- P/E ratio: 34.837
- Headquarters: Australia
Altium Limited (ALU.AU)
Altium Limited develops and sells computer software for the design of electronic products in the United States and internationally. It operates through Board and Systems; Microcontrollers and Embedded Systems; and Nexar segments.- Market cap: A$5.212 billion
- YTD performance: 16.11%
- 1-year performance: 65.84%
- 5-year performance: 457.43%
- P/E ratio: 35.4562
- Headquarters: Australia
Alumina Limited (AWC.AU)
Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. The company has a network of bauxite mines and alumina refineries in Australia, Guinea, Brazil, and Spain, and Saudi Arabia; and a 55% interest in the Portland aluminium smelter in Victoria, Australia.- Market cap: A$5.947 billion
- YTD performance: 0.82%
- 1-year performance: 21.72%
- 5-year performance: 38.58%
- P/E ratio: 33.0645
- Headquarters: Australia
Amcor plc (AMC.AU)
Amcor plc develops, produces, and sells packaging products for food, beverage, pharmaceutical, medical, home- and personal-care, and other products worldwide. It operates through two segments, Flexibles and Rigid Packaging.- Market cap: A$25.942 billion
- YTD performance: 0.86%
- 1-year performance: 7.93%
- 5-year performance: 55.52%
- P/E ratio: 20.2878
- Headquarters: Australia
AMP Limited (AMP.AU)
AMP Limited operates as a wealth management company in Australia and internationally. The company offers financial advice and platform administration services, unit linked superannuation products, and retirement income and managed investment products for individuals; and residential mortgages, residential and investment property home loans, deposits, transaction banking services, SMSF products, and loans to AMP-aligned financial adviser practices through digital, online, and phone channels, as well as through financial advisers and home loan brokers.- Market cap: A$3.12 billion
- YTD performance: -35.89%
- 1-year performance: 10.5%
- 5-year performance: 10.5%
- P/E ratio: 28.0882
- Headquarters: Australia
Ampol Limited (ALD.AU)
Ampol Limited engages in purchasing, refining, and distributing petroleum products in Australia, New Zealand, Singapore, and the United States. The company operates through Convenience Retail, and Fuels and Infrastructure segments.- Market cap: A$7.3 billion
- YTD performance: 8.4%
- 1-year performance: 31.96%
- 5-year performance: 62.48%
- P/E ratio: 15.9781
- Headquarters: Australia
AngloGold Ashanti Limited (AGG.AU)
AngloGold Ashanti Limited operates as a gold mining company. It also produces gold, silver, uranium, and sulphuric acid; and dóre bars.- Market cap: A$11.728 billion
- YTD performance: -6.27%
- 1-year performance: 41.65%
- 5-year performance: 184%
- P/E ratio: 1.9273
- Headquarters: Australia
Ansell Limited (ANN.AU)
Ansell Limited designs, develops, and manufactures protection solutions in the Asia Pacific, Europe, the Middle East, Africa, Latin America, the Caribbean, and North America. It operates in two segments, Healthcare and Industrial.- Market cap: A$4.358 billion
- YTD performance: -12.85%
- 1-year performance: 0%
- 5-year performance: 46.85%
- P/E ratio: 13.0952
- 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$3.305 billion
- YTD performance: 8.14%
- 1-year performance: 14.82%
- 5-year performance: 396.24%
- P/E ratio: 9.7944
- Headquarters: Australia
APA Group (APA.AU)
APA Group develops, owns, and operates natural gas transportation and energy infrastructure in Australia. The company operates through three segments: Energy Infrastructure, Asset Management, and Energy Investments.- Market cap: A$35.645 billion
- YTD performance: -7.17%
- 1-year performance: 8.39%
- 5-year performance: 17.39%
- P/E ratio: 3356.6665
- Headquarters: Australia
Appen Limited (APX.AU)
Appen Limited, together with its subsidiaries, provides data solutions and services for machine learning and artificial intelligence applications for technology companies, auto manufacturers, and government agencies in Australia, the United States, and internationally. It operates through two segments, Relevance and Speech and Image.- Market cap: A$1.209 billion
- YTD performance: -54.88%
- 1-year performance: 33.42%
- 5-year performance: 363.38%
- P/E ratio: 30.1227
- 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: 27.72%
- 5-year performance: 180%
- P/E ratio: 10.339
- Headquarters: Australia
Argo Investments Limited (ARG.AU)
Argo Investments Limited is a publicly owned investment manager. The firm manages separate client focused equity portfolios for its clients.- Market cap: A$7.453 billion
- YTD performance: 12.77%
- 1-year performance: 13.04%
- 5-year performance: 71.82%
- P/E ratio: 42.5311
- Headquarters: Australia
Aristocrat Leisure Limited (ALL.AU)
Aristocrat Leisure Limited, together with its subsidiaries, engages in the development, assembly, sale, distribution, and servicing of games and systems in the Americas, Australia, New Zealand, and internationally. The company offers gaming content; and platforms and systems, including electronic gaming machines, digital social games, and casino management systems, as well as free-to-play mobile games.- Market cap: A$29.069 billion
- YTD performance: 52.73%
- 1-year performance: 58.29%
- 5-year performance: 211.58%
- P/E ratio: 33.7821
- Headquarters: Australia
ASX Limited (ASX.AU)
ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. The company provides listings, trading, clearing, settlement, technical and information services, and other post-trade services; securities and derivatives exchange, and ancillary services; and central counterparty clearing services.- Market cap: A$17.656 billion
- YTD performance: 29.67%
- 1-year performance: 40.48%
- 5-year performance: 91.76%
- P/E ratio: 36.715
- Headquarters: Australia
Atlas Arteria Limited (ALX.AU)
Atlas Arteria Limited owns, develops, and operates toll roads. It holds a 13.4% interest in 22-kilometer toll road investors partnership II (TRIP II), the concessionaire for Dulles Greenway toll road located in Virginia, the United States.- Market cap: A$6.531 billion
- YTD performance: -0.76%
- 1-year performance: 19.64%
- 5-year performance: 51.28%
- P/E ratio: 48.2979
- Headquarters: Australia
AUB Group Limited (AUB.AU)
AUB Group Limited provides engages in the insurance broking and underwriting businesses in Australia and New Zealand. The company provides insurance broking and advisory services primarily to SME clients; operates insurance broking networks represented by approximately 75 businesses, as well as distributes ancillary products; and underwrites, distributes, and manages insurance products and portfolios on behalf of licensed insurance companies.- Market cap: A$1.889 billion
- YTD performance: 31.57%
- 1-year performance: 34.39%
- 5-year performance: 130.52%
- P/E ratio: 26.7511
- 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.
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.
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