The ASX presents diverse investment opportunities regardless of your long-term strategy or risk tolerance. However, with so many options at your disposal, it can be challenging to know where to begin.
Here, we look at 25 top ASX stocks you may want to consider adding to your portfolio. From established industry leaders to promising up-and-comers, these companies appeal to different investors and risk profiles.
Consumer Discretionary
ASX consumer discretionary companies produce goods and services that are considered non-essential – typically comprising the retail, leisure and entertainment industries.
- Wesfarmers Limited (WES.ASX): With a diverse portfolio of subsidiary businesses that operate in retail, industrial, chemical operations and more, Wesfarmers is a popular ASX stock with a history of stable dividends and a strong track record of growth.
- Aristocrat Leisure Limited (ALL.ASX): Holds a leading position in the global gaming industry, particularly in developing and supplying electronic gaming machines. The company has a strong balance sheet, a history of growth and is well-positioned to benefit from increased demand for online gaming.
Consumer Staples
ASX consumer staples companies produce essential goods and services, such as food and beverages, household goods and personal care items.
- Woolworths Group Limited (WOW.ASX): Boasts a dominant position in the retail sector, particularly with its nationwide supermarket chain. The Woolworths Group has a strong brand and a well-diversified portfolio of businesses, including supermarkets, liquor stores, hotels, and more.
- Coles Group Limited (COL.ASX): Like Woolworths Group, Coles Group manages one of the largest supermarket chains in the country. It has a long and robust brand in Australia, and a history of consistent dividends paid out to investors.
Energy
ASX energy companies tend to be involved in the exploration, production and distribution of oil, gas, solar, wind and other forms of energy.
- Woodside Energy Group Ltd (WDS.ASX): Australia’s largest independent oil and gas company, with diverse assets domestically and internationally. The company has a track record of delivering shareholder value through exploration and development activities and maintaining a stable dividend policy.
- Santos Limited (STO.ASX): A leading independent oil and gas producer in the Asia-Pacific region. The company boasts strong production growth and focuses on cost-control measures to improve profitability.
- Washington H. Soul Pattinson and Company Limited (SOL.ASX): Invests in various industries, from telecommunications and mining to financial services. The company has a conservative investment approach, which has helped it weather economic downturns in the past.
Financials
Financial stocks on the ASX are generally companies that provide banking, insurance, investment management and real estate services.
- Commonwealth Bank of Australia (CBA.ASX): One of the country’s largest and most profitable banks, with a strong balance sheet and a history of consistent dividend payouts. CBA also has a leading market share in home loans and credit cards and is committed to innovation and digital transformation to improve the customer experience.
- National Australia Bank (NAB.ASX): As one of the ‘Big Four’ banks, NAB is regarded as one of the most diversified banks in the country, with a strong focus on business and institutional banking. The bank is well-positioned to benefit from Australia’s economic recovery over the coming years.
- Westpac Banking Corp (WBC.ASX): Like CBA and NAB, Westpac strongly focuses on retail and business banking and may provide positive long-term benefits for investors.
Healthcare
Companies operating in the ASX’s healthcare sector may work across research, development and distribution of pharmaceuticals, medical devices and healthcare services.
- ResMed Inc (RMD.ASX): A global leader in developing, manufacturing and distributing medical equipment for various respiratory disorders. ResMed has an innovative approach to research and development and will continue to cater to an ageing population with a greater awareness of the importance of sleep health.
- Sonic Healthcare Limited (SHL.ASX): A leading provider of medical diagnostic services and lab medicine. Sonic Healthcare has grown consistently through intelligent acquisitions, a diverse portfolio of businesses and investments in technology to improve patient outcomes and drive profitability.
Industrials
ASX industrials companies may be involved in manufacturing, engineering, construction, transportation and logistics.
- Transurban Group (TCL.ASX): A toll road developer and operator with a diversified portfolio of assets in Australia, the US and Canada. Investors may appreciate its history of steady revenue and earnings growth and its robust pipeline of upcoming development projects.
- Brambles Limited (BXB.ASX): A big name in supply chain logistics, Brambles’ primary focus is on pooling pallets, crates and containers. The company is committed to sustainable practices and corporate responsibility.
Information Technology
ASX information technology (IT) stocks involve companies that operate in the tech sector, including software development, hardware manufacturing and IT services.
- WiseTech Global Limited (WTC.ASX): Delivers software solutions for logistics and supply chain businesses. WiseTech enjoys a large and growing addressable market driven by the increasing complexity and globalisation of supply chains.
- Xero Limited (XRO.ASX): A leading supplier of cloud-based accounting software for small and medium-sized businesses in Australia and globally. Investors may look favourably at Xero being a market leader in a space where the adoption of cloud-based accounting solutions is only increasing.
Materials
ASX materials stocks include mining, metal production, chemicals and forestry.
- BHP Group Limited (BHP.ASX): One of the biggest global mining and resources companies, BHP’s portfolio comprises businesses across a range of commodities, including iron ore, copper and petroleum, resulting in a history of strong cash flow generation.
- Rio Tinto (RIO.ASX): A global mining and resources company that spans iron ore, aluminium, copper and other commodities. Rio Tinto is focused on strategic capital allocation and has recently announced more sustainable and responsible mining measures.
- Fortescue Metals Group (FMG.ASX): A global iron ore producer, Fortescue Metals is best known for its mining operations in Western Australia’s Pilbara region. The company has delivered consistent revenue growth over the years and is committed to sustainable practices through renewable energy and low-emissions technology.
Real Estate
ASX real estate stocks are usually companies involved in the development, ownership and management of property (residential, commercial and industrial).
- Goodman Group (GMG.ASX): Develops and manages industrial property, with a preference for high-quality logistics and warehouse facilities in key global markets. Goodman Group is operating in a market now driven by higher demand for e-commerce and logistics infrastructure.
- Scentre Group Limited (SCG.ASX): One of the largest owners and managers of shopping centres in Australia and New Zealand, Scentre boasts a considerable portfolio of high-quality assets. The company is backed by years of solid cash flow and has a large tenant base across various industries.
Telecommunications
ASX telecommunications companies deliver phone, internet and other communication services.
- Telstra Group Limited (TLS.ASX): Australia’s largest telecommunications provider with a dominant share of mobile and fixed-line services. Telstra also has a growing presence in digital media and technology, and its commitment to regular dividend payments has made it a popular option among ASX investors.
- REA Group Ltd (REA.ASX): The largest online real estate advertising company in Australia and has a growing presence in other international markets. REA Group is focused on innovation and customer experience to maintain its competitive advantage.
Utilities
Operating in the ASX’s utilities sector, these companies are involved in producing and distributing electricity, gas and water.
- Origin Energy Limited (ORG.ASX): One of Australia’s largest integrated energy companies, managing assets across natural gas, electricity and retail energy services. The company has recently shifted its attention to sustainability to meet the increasing demand for clean energy.
- APA Group (APA.ASX): Australia’s largest natural gas infrastructure company, APA Group, has a network of pipelines and storage facilities transporting natural gas across Australia. The company tends to rely on long-term contracted revenues to reduce volatility around commodity prices.
The ASX offers diverse opportunities for those looking to invest in different Australian sectors. You can make more informed investment decisions by identifying the top ASX stocks and doing your own due diligence.
eToro Service ARSN 637 489 466 operated by eToro Asset Management Limited ABN 51 122 005 396 AFSL 319 738 and promoted by eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Investing in shares via a managed investment scheme does not result in direct ownership of the underlying assets. The scheme has legal ownership, the investor has beneficial ownership i.e. the shares are held on your behalf. As the scheme has legal ownership, you have no rights in the securities, including voting rights. Shares are non transferable. Your capital is at risk. Refer to the Product Disclosure Statement and Target Market Determination (PDS and TMD) before transacting. See full disclaimer.
This communication is general information and education purposes only and should not be taken as financial product advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial product. It has been prepared without taking your objectives, financial situation or needs into account. Any references to past performance and future indications are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.