Unfortunately there's no one magic stock or ETF that's 'best' for everyone. Instead, you should look at your own individual needs and investment strategy to decide what stock is right for you. Further, nobody can say for certain which direction a share will go as past performance is no guarantee of future results. So keep in mind these are stock ideas only and should not be taken as personal financial advice.
Looking for the best ASX shares to buy for 2024? We've compiled a list of stocks using an algorithm that considers factors such as price performance, volatility levels and profit margins to find 20 stocks that might be worth watching over the year ahead.
Stock themes for 2024
Unless you have a crystal ball, it's impossible to say what the next 6-12 months will look like. But there are some big themes that are currently driving the market in 2024:
- The August stock market crash has left investors jittery
- The risk of recession in the US and elsewhere (including Australia)
- How likely interest rate drops may cause inflation to start rising again
- Commodities continue to outperform
Stocks to watch in 2024
With all that in mind, it's not easy picking quality stocks. To help identify stock picks for 2024, we used Finder's proprietary algorithm to filter Australia-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. We filtered out stocks that have been listed on the ASX for less than 5 years to better compare historical data.
Again, this doesn't mean these are the best ASX stocks for you or your personal situation. Always do your own research and chat with a professional when in doubt.
The algorithm was last updated 01 October 2024.
How did we pick this list?
Our proprietary algorithm rates ASX-listed stocks based on price performance, profit, revenue and dividends. For more information about our methodology, head to our stock rating methodology page. The companies displayed on this page may not be the best for you and you're encouraged to do your own research. Investments can go up and down and we do not guarantee the performance or returns of any investment.
12: Rea Group Ltd
13: Codan Ltd
15: MFF Capital Investments Ltd
16: Northern Star Resources Ltd
18: Alpha HPA Ltd
20: Arena REIT
Ramelius Resources Ltd (RMS.AU)
Ramelius Resources Limited engages in the exploration, evaluation, mine development and operation, production, and sale of gold. The company operates through three segments: Mt Magnet, Edna May, and Exploration.- Market cap: A$2.12 billion
- YTD performance: A$2.12 billion
- 1-year performance: 64.11%
- 5-year performance: 276.48%
- P/E ratio: 11.5789
- Headquarters: Australia
Pro Medicus Ltd (PME.AU)
Pro Medicus Limited, a healthcare informatics company, engages in the development and supply of healthcare imaging software, and radiology information (RIS) system software and services to hospitals, imaging centers, and health care groups in Australia, North America, and Europe. The company offers Visage RIS Visage 7 Enterprise Imaging Platform, a healthcare imaging software that provides radiologists, physicians, and clinicians with access and visualization capability for viewing 2-D, 3-D, and 4-D medical images; and picture archive and communication system (PACS)/digital imaging software.- Market cap: A$12.84 billion
- YTD performance: A$12.84 billion
- 1-year performance: 148.28%
- 5-year performance: 1161.49%
- P/E ratio: 238.7564
- Headquarters: Australia
Genesis Minerals Ltd (GMD.AU)
Genesis Minerals Limited engages in the exploration, production, and development of gold deposits in Western Australia. The company was incorporated in 2007 and is based in Perth, Australia..- Market cap: A$2.27 billion
- YTD performance: A$2.27 billion
- 1-year performance: 46.29%
- 5-year performance: 9309.1%
- P/E ratio: 29.5714
- 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$3.27 billion
- YTD performance: A$3.27 billion
- 1-year performance: 153.6%
- 5-year performance: 628.74%
- P/E ratio: 41.3913
- Headquarters: Australia
Commonwealth Bank (CBA.AU)
Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments.- Market cap: A$213.7 billion
- YTD performance: A$213.7 billion
- 1-year performance: 41.46%
- 5-year performance: 144.28%
- P/E ratio: 24.0924
- Headquarters: Australia
DroneShield (DRO.AU)
DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security in Australia and the United States. It offers DroneGun Tactical, a portable rifle shape drone disruptor, causing the drone to safely land, or fly back to the starting point; DroneGun Mk4, a rugged handheld counter-unmanned aircraft system (UAS) effector; DroneGun Mk3, a pistol shaped compact drone disruptor; RfPatrol Mk2, a wearable AI-enabled multi-mission detection tool; DroneSentry-X, a cross-vehicle compatible automated 360° detect and defeat device; and DroneSentry-X Mk2 is a software-defined detection and adaptive disruption system.- Market cap: A$1.06 billion
- 1-year performance: 346.16%
- 5-year performance: 1233.34%
- P/E ratio: 60.75
- Headquarters: Australia
Netwealth Group (NWL.AU)
Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. The company operates a platform that offers superannuation, including accumulation and retirement income products; investor directed portfolio services for self-managed superannuation and non-superannuation investments; managed accounts and funds, self-managed superannuation funds administration; and non-custodial administration and reporting services.- Market cap: A$5.35 billion
- YTD performance: A$5.35 billion
- 1-year performance: 124.6%
- 5-year performance: 436.21%
- P/E ratio: 80.8824
- Headquarters: Australia
Perseus Mining Limited (PRU.AU)
Perseus Mining Limited, together with its subsidiaries, explores, evaluates, develops, and mines for gold properties in West Africa. The company holds interests in the Edikan gold mine project located in Ghana; and the Sissingué and Yaouré gold mine projects located in Republic of Côte d'Ivoire.- Market cap: A$3.34 billion
- YTD performance: A$3.34 billion
- 1-year performance: 72.42%
- 5-year performance: 298.56%
- P/E ratio: 7.6857
- Headquarters: Australia
Carsales.Com Ltd (CAR.AU)
CAR Group Limited engages in the operation of online automotive, motorcycle, and marine classifieds business in Australia, New Zealand, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, the United States, and Mexico. The company operates through six segments: Australia " Online Advertising Services; Australia " Data, Research and Services; Investments; North America; Latin America; and Asia segments.- Market cap: A$12.35 billion
- YTD performance: A$12.35 billion
- 1-year performance: 37.23%
- 5-year performance: 273.69%
- P/E ratio: 57.197
- Headquarters: Australia
HUB24 Limited (HUB.AU)
HUB24 Limited, a financial services company, provides integrated platform, technology, and data solutions to wealth industry in Australia. It operates through Platform and Tech Solutions segments.- Market cap: A$3.85 billion
- YTD performance: A$3.85 billion
- 1-year performance: 111.23%
- 5-year performance: 903.33%
- P/E ratio: 113.9286
- Headquarters: Australia
L1 Long Short Fund (LSF.AU)
L1 Long Short Fund Limited is a equity fund launched and managed by L1 Capital Pty Ltd. The fund investments predominantly in Australian and New Zealand securities.- Market cap: A$1.914 billion
- 1-year performance: 14.08%
- 5-year performance: 340%
- P/E ratio: 11.3333
- Headquarters: Australia
Rea Group (REA.AU)
REA Group Limited, together with its subsidiaries, engages in online property advertising business in Australia, India, the United States, Malaysia, Singapore, Thailand, Vietnam, and internationally. It provides property and property-related services on websites and mobile applications.- Market cap: A$25 billion
- YTD performance: A$25 billion
- 1-year performance: 55.05%
- 5-year performance: 227.41%
- P/E ratio: 95.1616
- Headquarters: Australia
Codan Ltd (CDA.AU)
Codan Limited develops technology solutions for United Nations organizations, security and military groups, government departments, individuals, and small-scale miners. It operates through Communications and Metal Detection segments.- Market cap: A$2.13 billion
- YTD performance: A$2.13 billion
- 1-year performance: 107.64%
- 5-year performance: 332.62%
- P/E ratio: 35.3778
- Headquarters: Australia
Evolution Mining (EVN.AU)
Evolution Mining Limited engages in the exploration, mine development and operation, and sale of gold and gold-copper concentrates in Australia and Canada. The company also explores for copper and silver deposits.- Market cap: A$7.71 billion
- YTD performance: A$7.71 billion
- 1-year performance: 63.2%
- 5-year performance: 158.96%
- P/E ratio: 20.7727
- Headquarters: Australia
MFF Capital Investments Limited (MFF.ASX)
MFF Capital Investments Limited is a closed ended equity mutual fund launched and managed by Magellan Asset Management Limited. The fund invests in public equity markets across the globe.- Market cap: A$2.18 billion
- YTD performance: A$2.18 billion
- 1-year performance: 42.86%
- 5-year performance: 83.97%
- P/E ratio: 5.013
- Headquarters: Australia
Northern Star Resources (NST.AU)
Northern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits. The company also sells refined gold.- Market cap: A$16.3 billion
- YTD performance: A$16.3 billion
- 1-year performance: 44.22%
- 5-year performance: 143.89%
- P/E ratio: 29.0364
- Headquarters: Australia
Ora Banda Mining (OBM.AU)
Ora Banda Mining Limited engages in the exploration, operation, and development of mineral properties in Australia. It primarily explores for gold, nickel, copper, lithium, and base metal deposits, as well as sells gold.- Market cap: A$1.175 billion
- 1-year performance: 509.1%
- 5-year performance: 2580%
- P/E ratio: 63
- Headquarters: Australia
Aristocrat (ALL.AU)
Aristocrat Leisure Limited, together with its subsidiaries, operates as a gaming content and technology company in Australia and internationally. The company designs, develops, assembles, distributes, sells, and services gaming content, platforms, and systems, including electronic gaming machines, casino management systems, and free-to-play mobile games.- Market cap: A$32.19 billion
- YTD performance: A$32.19 billion
- 1-year performance: 50.53%
- 5-year performance: 284.08%
- P/E ratio: 25.2328
- 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: A$1.046 billion
- YTD performance: A$1.046 billion
- 1-year performance: 30.07%
- 5-year performance: 216.16%
- P/E ratio: 10.339
- Headquarters: Australia
Buy ASX stocks through a broker
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
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 ASX stocks are those that perform well in the future. And if the last few years has taught us anything, markets can defy expectations.
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.
What are some stocks to watch?
Michael Gable
Managing Director, Fairmont Equities
I will be focusing on resource stocks due to demand for commodities, supply constraints, and a falling US dollar. Gold should also do well, but investors need to remember that it is not a hedge or a long-term investment. You only hold it when the US dollar is falling. That should happen but don't fall in love with it, you need to trade it and remain nimble.
What's been happening in the market?
The past couple of years have been marked as some of the most volatile periods in stock market history. This volatility was largely driven by persistent inflation, rising interest rates, and soaring commodity prices, significantly influenced by the geopolitical tensions and conflicts across different regions.
Interestingly, this period saw a unique trend where bad economic news, such as a slowdown in GDP or a rise in unemployment, was often viewed positively by investors as potential indicators of peaking inflation.
Key attributes to consider in 2024
These issues remain central to market dynamics, but signs of inflation possibly stabilising have emerged. This has led global central banks to stay alert, continually adjusting interest rates to manage the economy effectively.
During these times of uncertainty, certain sectors such as commodities, real estate, and industrials have traditionally been perceived as safe havens. Consequently, these sectors were notably dominant in the market throughout the past year.
The way investors responded to these market conditions varied significantly, heavily influenced by their individual investment strategies. Long-term investors, with ample time before needing to liquidate their shares, might have perceived this market environment as an opportunity to invest in undervalued stocks and ETFs, potentially ripe for improvement during such volatile times.
On the other hand, specific investor groups, including older Australians requiring immediate funds, active traders, and those with readily available cash reserves, might have monitored the market more closely.
This cautionary approach was often adopted by those seeking immediate returns or needing to manage their investment risks more actively in the face of ongoing market fluctuations.
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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Image source: Getty
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