5 ASX stocks to watch for the new year
2025 is just around the corner – and with a new year comes new investing opportunities.
Although the ASX has seen its shares of ups and downs over the last 12 months, there are promising signs ahead in light of the recent US election1.
With this in mind, we spoke to Josh Gilbert of eToro to get his insights into a range of ASX stocks, spanning retail to mining.
Wesfarmers
Wesfarmers has been an attractive prospect for consumers throughout 2024, thanks to its brands like Kmart, Bunnings and Officeworks.
"They offer lower prices due to solid cost efficiency, which will continue to be attractive to consumers who are looking for value," says Gilbert.
Gilbert notes that this has translated into solid yearly results as of August 2024, with growing profits and increased dividends.
"Although the business will have challenges to navigate over the months ahead, it seems to be in a great position to benefit from consumer preferences," says Gilbert.
Santos
The energy sector has had a rough year on the ASX200, largely due to volatility in energy prices. But Gilbert believes there are still reasons to be positive about future prospects.
"Santos is one company strategically positioned to benefit from both traditional energy sources and the growing demand for cleaner alternatives as global economies grapple with energy transition," says Gilbert.
Operating across Australia, Papua New Guinea and Asia, Gilbert notes that Santos has paid out a healthy 6.7% dividend in the last 12 months and has grown its dividend by almost 50% in the last 3 years.
Trading ASX stocks
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eToro is a broker and marketplace in one – so you'll have protection as a buyer and seller.
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James Hardie
Post-US election, Gilbert notes it's worth looking at which stocks may benefit from President-Elect Trump taking the Oval Office.
"With US interest rates already being slashed by 75bps and set to fall further, we would expect to see an acceleration of homebuilding," says Gilbert. "This could put James Hardie in a strong position to benefit from increased demand in the housing and renovation sectors."
Currently, James Hardie Industries is a global leader in fibre cement products for the building industry. The business supplies materials primarily for residential construction, specialising in durable, low-maintenance fibre cement siding and boards.
Temple & Webster
eCommerce is a tightly competitive industry – but Gilbert notes Temple & Webster has done a considerable amount to establish itself as a dominant presence in the Australian market.
"FY 2024 saw Temple & Webster's market share of the total furniture & homewares market expand to 2.3% – up 31% year-on-year," says Gilbert.
Gilbert points to the company's asset-light business model as key to profitability, while still allowing for improvement and future growth.
"The business finished the year with AUD$116 million in cash and no debt, allowing Temple & Webster to enter into an AUD$30 million on-market buyback," says Gilbert.
Fortescue Metals Group
With concerns about reducing emissions and long-term stability gaining traction in the mining industry, Gilbert notes that Fortescue Metals Group has positioned itself in recent months to stand out from the crowd.
"Fortescue has announced it will pay $2.8 billion to replace two-thirds of its fleet of haulage trucks and equipment in Western Australia with electric versions to cut diesel consumption and meet ambitious emissions-reduction targets," says Gilbert.
Additionally, once China does roll out a new stimulus package – likely early next year – iron ore miners will stand to benefit.
Fortescue Metals Group @ eToro
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