2024’s Top ASX Stock Picks: 5 Opportunities You Can’t Miss
ResMed, Goodman Group and Treasury Wine Estates are among this market analyst’s top stock picks for the new year
2 min
It’s been a tumultuous year for the ASX 200, which has moved within a broad range of between 7,568 points in February and 6,751 points in October. The benchmark index has recorded just 3.3% growth in the year to date. High interest rates and inflation have put pressure on businesses and forced consumers to rein in spending, while economic growth has weakened to an annual rate of just 2.1 percent.
Analysts at top brokerage house Morgan Stanley have a 12-month target of 7,350 points for the ASX 200, indicating more of the same for the market next year. Joe Wright of Airlie Funds Management comments: “ASX valuations have returned to more or less the average of their last 20 years”.
As always, some ASX stocks will shine, and eToro market analyst Josh Gilbert has announced his five top picks for 2024, as published on Finder.
ResMed CDI (ASX: RMD)
The ResMed share price has fallen 18.6% in 2023 to $24.79. Its 52-week high is $36.37. “Much of this recent weakness has come from the expectation that the new highly coveted Ozempic drug will dampen demand for ResMed’s sleep apnea devices,” says Mr Gilbert. “ResMed is a fundamentally quality business, and its recent sell-off has made its valuation more attractive.” Top broker Goldman Sachs rates ResMed shares a buy and has a 12-month share price target of $32 on the company.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne stock has lifted 16.1% in the year to date to $15.17 per share. The 52-week peak is $17.12. “With inflation falling and central banks set to cut interest rates, technology shares could see their winning streaks continue,” says Mr Gilbert. “The good news for shareholders is the business has significant cash and investment holdings of $223 million and no debt, putting them in the position to continue its growth.” Goldman Sachs also rates this tech stock a buy with a 12-month price target of $18.05.
Goodman Group (ASX: GMG)
The Goodman Group share price has soared 34.7% in 2023 to $23.31. Its 52-week high is $23.69. Mr Gilbert says real estate shares should benefit from stabilising and potentially falling interest rates in 2024. “Goodman Group is in a strong position in the real estate sector, focused on logistics and warehouses. It also has a growing exposure to data centres – a booming area thanks to AI.” Top broker Citi says Goodman shares are a buy. Its analysts have a 12-month price target of $25.50.
TPG Telecom Ltd (ASX: TPG)
The TPG share price has essentially moved sideways in 2023, down 1.05% to $4.79. Its 52-week peak is $5.72. “As the telecom industry continues to transition to 5G technology, revenue could continue to grow,” says Mr Gilbert. The broker consensus recommendation published on CommSec was downgraded late last month from a moderate buy rating to a hold rating.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine shares have tumbled 20% in 2023 to $10.36 per share. The 52-week high is $14.69. “The good news for Treasury Wines is that the Albanese government is renewing Australia’s relationship with China, which could mean good news for removing those tariffs denting Treasury’s sales,” Mr Gilbert says. Leading brokerage Morgans has an add rating on Treasury Wine shares with a 12-month price target of $14.15.
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Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
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