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 rest of the year (and beyond) will look like. But there are some big themes that are currently driving the market in 2024:
The risk of recession in the US, Australia and elsewhere
The fallout from the US election
When interest rates are likely to drop and how that will impact markets
Whether 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 28 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.
4. Pinnacle Investment Management Group Ltd (ASX:PNI)
Market cap: A$3.46 billion
YTD performance: 99.41%
1-year performance: 163.27%
5-year performance: 315.26%
P/E ratio: 42.93
Headquarters: Sydney
5. Commonwealth Bank of Australia (ASX:CBA)
Market cap: A$238.85 billion
YTD performance: 27.79%
1-year performance: 47.21%
5-year performance: 78.53%
P/E ratio: 26.50
Headquarters: Sydney
6. DroneShield Ltd (ASX:DRO)
Market cap: A$793.62 million
YTD performance: 144.00%
1-year performance: 251.92%
5-year performance: 112.79%
P/E ratio: 73.985
Headquarters: Sydney
7. Netwealth Group Ltd (ASX:NWL)
Market cap: A$6.79 billion
YTD performance: 80.85%
1-year performance: 122.61%
5-year performance: 211.91%
P/E ratio: 74.39
Headquarters: Melbourne
8. Perseus Mining Ltd (ASX:PRU)
Market cap: A$3.99 billion
YTD performance: 55.14%
1-year performance: 67.84%
5-year performance: 247.88%
P/E ratio: 8.11
Headquarters: Subiaco
9. Car Group Ltd (ASX:CAR)
Market cap: A$14.16 billion
YTD performance: 19.11%
1-year performance: 35.59%
5-year performance: 156.60%
P/E ratio: 56.62
Headquarters: Richmond
10. Hub24 Ltd (ASX:HUB)
Market cap: A$5.60 billion
YTD performance: 91.38%
1-year performance: 129.38%
5-year performance: 457.57%
P/E ratio: 122.67
Headquarters: Sydney
11. L1 Long Short Fund Ltd (ASX:LSF)
Market cap: A$1.94 billion
YTD performance: 4.39%
1-year performance: 12.77%
5-year performance: 93.73%
P/E ratio: 11.31
Headquarters: Melbourne
12. REA Group Ltd (ASX:REA)
Market cap: A$26.42 billion
YTD performance: 24.84%
1-year performance: 60.62%
5-year performance: 107.93%
P/E ratio: 96.95
Headquarters: Richmond
13. Codan Ltd (ASX:CDA)
Market cap: A$2.85 billion
YTD performance: 84.72%
1-year performance: 96.84%
5-year performance: 139.85%
P/E ratio: 35.08
Headquarters: Mawson Lakes
14. Evolution Mining Ltd (ASX:EVN)
Market cap: A$10.36 billion
YTD performance: 33.42%
1-year performance: 45.28%
5-year performance: 23.06%
P/E ratio: 24.12
Headquarters: Sydney
15. MFF Capital Investments Ltd (ASX:MFF)
Market cap: A$2.27 billion
YTD performance: 27.10%
1-year performance: 43.80%
5-year performance: 17.26%
P/E ratio: 5.04
Headquarters: Sydney
16. Northern Star Reources Ltd (ASX:NST)
Market cap: A$18.66 billion
YTD performance: 33.11%
1-year performance: 51.85%
5-year performance: 77.44%
P/E ratio: 29.47
Headquarters: Subiaco
17. Ora Banda Mining Ltd (ASX:OBM)
Market cap: A$1.50 billion
YTD performance: 297.92%
1-year performance: 496.88%
5-year performance: 467.22%
P/E ratio: 43.880
Headquarters: West Perth
18. Alpha HPA Ltd (ASX:A4N)
Market cap: A$1.16 billion
YTD performance: -3.77%
1-year performance: 31.61%
5-year performance: 580.00%
Headquarters: Sydney
19. Aristocrat Leisure Ltd (ASX:ALL)
Market cap: A$38.18 billion
YTD performance: 50.47%
1-year performance: 56.52%
5-year performance: 92.76%
P/E ratio: 26.15
Headquarters: Sydney
20. Arena REIT (ASX:ARF)
Market cap: A$1.58 billion
YTD performance: 8.40%
1-year performance: 26.58%
5-year performance: 31.15%
P/E ratio: 24.95
Headquarters: Melbourne
Did you know?
You could save $1,046 a year on average in brokerage fees by switching to a more suitable online broker, according to Finder research. You might even save money by having more than one platform, especially if you are investing both in Australia and internationally.
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.
Frequently asked questions
If you have $5,000 you'll actually have a number of options as to where you want to invest it. These can range from having it in a high interest savings account, to superannuation, P2P platforms, or even buying shares/ETFs or robo advisers.
If you would like to see more, head over to our page about how to invest $5,000 to see how you could be making your money work harder for you.
Nobody really knows how the share market will perform over the short term, although active traders will try to exploit these movements. If you are a long-term accumulator of assets you might not need to focus on whether or not stocks boom in 2024.
The most expensive stock on the ASX quite frequently fluctuates, but as of 6 August 2024, the most expensive stock was Cochlear (COH) followed by CSL (CSL) and Macquarie Group (MQG).
Generally speaking "time in the market beats timing the market". This means when it comes to buying stocks, you're usually better off consistently dollar cost averaging into the shares regardless of the stock price or market backdrop. Although there's a big caveat to this. You need to be investing in the right shares. Buying and holding a stock that is falling and has little prospects of turning around won't be beneficial.
The reason to buy and hold stocks is because nobody really knows how the stock market will perform. After all, predicting the future is incredibly difficult. As such, simply adding money regularly can be a more prudent strategy.
The ASX 200 is up 6.61% as of November 2024, suggesting the Australian stock market will close out 2024 in a relatively strong position.
Experts have been torn when it comes to whether or not the ASX will have a strong year. Some thought it will outperform the American markets due to a high concentration of resource companies. Others point out that Australia might have a recession, which will hurt our sharemarket. Of course, nobody really knows for certain what the future holds.
If you're looking to buy dividend stocks you're usually looking at more mature businesses that have more predictable payouts.
As such, you should be looking at companies with a strong track record of growth over a number of years as this can be an indicator of future dividend payouts.
When it comes to buying dividend stocks you should also look for businesses that have strong cash flows, low debt and have a large share of their chosen field.
If you are looking to track dividend you could also look into 3 metrics, being dividend yield, dividend payout ratio and dividend payout growth rate.
Dividend yield – This ratio shows how much a company pays in dividend relative to its share price.
Dividend payout ratio – This is the percentage a company's earnings is used to cover dividend payments.
Dividend growth rate/dividend payout growth – These are 2 terms that describe the same thing. It is the average percentage rate of growth a stock's dividend has experienced over a time frame.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio
Kylie's expertise
Kylie has written 134 Finder guides across topics including:
If you’re thinking of investing in gold, our guide will explain how and where to buy gold in Australia as well as the pros and cons of investing in it.
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