In this article, we look at the 10 best ASX stocks for long-term investing. If you would like to skip the overview of the Australian stock market, please see below. 5 ASX stocks best suited for long-term investment.
Australia is one of the richest countries in the world, rivaling developed countries in Europe and North America in terms of progress and quality of life. However, most of the world's business passes through the United States, so the American stock market is quite large. These facts also apply to Europe's Euronext stock exchange and the London Stock Exchange. Especially since the latter is another hub of global finance.
Although Australia's economy is highly developed, it also relies on traditional sectors such as mining. When analyzing the best stocks on the ASX, especially those that are potentially good for the long term, you need to know which industries dominate Australia, what types of companies operate there, and how these It is important to see what the future prospects for the sector are. Data from the Reserve Bank of Australia is helpful in this regard. According to that data, Australia's five largest industries are mining, healthcare and education, finance, construction and manufacturing. In percentage terms, they account for 14.3%, 12.8%, 7.4%, 7.1% and 5.7% of the Australian economy, respectively.
On this basis, the next question to ask when considering the best ASX stocks is whether the current global macroeconomic environment is favorable for some of the largest sectors of the Australian economy. With mining being Australia's largest industry, it is one of the most sensitive businesses to the health of the global economy. With 27% of Australia's exports going to China and a further 17.5% to Japan, the health of the Asian economy is a key determinant of the performance of Asian stocks.
If you follow Insider Monkey and subscribe to our newsletter, you know that China's economy is in trouble. In fact, even the International Monetary Fund (IMF) has not hesitated to call the economy a “shackle'' on global production. This is a sentiment born out of analysts' unfortunate optimism in early 2023, when many opined that: China's strong recovery will be a blessing, especially for commodities and oil. So with China's growth being lackluster, it's time to see how ASX mining stocks fare in this.
Notable ASX mining stocks that trade exclusively on the Australian Stock Exchange and through American Depositary Receipts (ADRs) on US stock exchanges such as the New York Stock Exchange include BHP Group Limited (NYSE:BHP) , Rio Tinto Group (NYSE:RIO). , Fortescue Ltd (ASX:FMG.AX) and South32 Limited (ASX:S32.AX). Year-to-date performance is -15.05%, -14.17%, -12.56%, and 10.98%, respectively. Looking at this, it is clear that all of these stocks have fallen since the beginning of the year, and that earlier this year, in the minutes of the Australian Central Bank, officials actually announced that they were not willing to raise interest rates further due to uncertainty about the extent of inflation. The stock price was under pressure as it became clear that the deal was being considered. It was completely tame.
But while Australia's biggest industry may be struggling, Australian Stock Exchange shares in its second-largest sectors – health and education – are faring much better. A highly developed education system and a corruption-free society have given Australian healthcare companies an edge over global healthcare companies. The largest Healthcare ASX stocks include CSL Limited (ASX:CSL.AX), Cochlear Limited (ASX:COH.AX), ResMed Inc. (ASX:RMD.AX) and Sonic Healthcare Limited (ASX:SHL.AX). ) there is. .
Year-to-date performance is -0.13%, 12.16%, 18.75%, and -8.69%. Looking at this, healthcare ASX stocks appear to be performing much better than mining stocks, with leading Australian education consultancy IDP Education Limited, whose share price has fallen 9.59% year-to-date during the ratings. It appears to be performing even better than (ASX:IEL.AX). Downgrading by Bell Porter and changes to Canadian visa rules to scrutinize unscrupulous applicants who wish to work in the country without studying in Canada.
Healthcare has been a hot ASX stock sector lately, so here's what management at Australian regenerative medicine company Mesoblast Limited (NASDAQ:MESO) said on the company's Q2 2024 earnings call. That's right.
As at 31 December 2023, cash reserves were $77.6 million after the completion of institutional placements and rights offerings of A$60.3 million during the period. Additionally, during the period, the Company implemented its planned cost containment strategy and reduced cash burn from operating activities. Cash burn from operating activities for the three months ended December 2023 was $12.3 million, which was a 25% decrease over the comparable three months in his 2023 fiscal year. Cash burn for the six months ended December 2023 was down 14%, although his six-month loss in fiscal 2022 was lower. I'm also pleased to report that after-tax loss of $32.5 million decreased by 21%.
With these details in mind, let's take a look at some of the best ASX stocks for the long term. Stocks to watch include Aristocrat Leisure Limited (ASX:ALL.AX), Telstra Group Limited (ASX:TLS.AX) and BHP Group Limited (NYSE:BHP).
Marine Deswart/Shutterstock.com
our methodology
To create a list of the best long-term ASX stocks, we've ranked the 40 most valuable ASX stocks based on analyst average price target upside. All average price target data provided by Yahoo Finance.
10 best ASX stocks for long-term investing
10. QBE Insurance Group Limited (ASX:QBE.AX)
Analyst average price target: A$18.89
Increase rate: 4.19%
QBE Insurance Group Limited (ASX:QBE.AX) is a leading Australian insurance company headquartered in Sydney, New South Wales. The company offers property and casualty insurance, health insurance, and other insurance products. QBE Insurance Group Limited (ASX:QBE.AX) shares also receive an average rating of Strong Buy, making it one of the highest rated stocks on our list. The average price target is A$18.89, reflecting an increase of 4.19% from the latest closing price. The company's CEO also gave a rather interesting speech in February 2024, saying that reinsurers are often cautious about operating in Australia due to natural disasters.
Alongside Telstra Group Limited (ASX:TLS.AX), Aristocrat Leisure Limited (ASX:ALL.AX) and BHP Group Limited (NYSE:BHP), QBE Insurance Group Limited (ASX:QBE.AX) is one of the top long-term occupies a position. ASX stocks, according to analysts.
9. Sonic Healthcare Limited (ASX:SHL.AX)
Analyst average price target: AUD 30.87
Increase rate: 4.96%
Sonic Healthcare Limited (ASX:SHL.AX) is the first Australian healthcare company to make our list, as mining giants and other ASX stocks bear the brunt of high interest rates and the financial crisis. Despite this, it is a division of the ASX that has performed very well recently. Economic slowdown in major Asian countries such as China and Japan. The company is also headquartered in Sydney and employs more than 40,000 people. Sonic Healthcare Limited (ASX:SHL.AX) is a provider of medical equipment and diagnostic services primarily serving the needs of hospitals, health centers and their patients. The company's stock is rated as a “buy” on average, but it is teetering on the edge of a hold.
As the Australian economy continues to struggle, Sonic Healthcare Limited (ASX:SHL.AX) made an important announcement in March 2024, revealing the expansion of its global network. This was achieved through the acquisition of a Swiss research institute for $132 million.
8. CSL Limited (ASX:CSL.AX)
Analyst average price target: A$302
Increase rate: 5.23%
CSL Limited (ASX:CSL.AX) is another major Australian healthcare company. Given ASX Healthcare's performance this year, it's no surprise that it's another one on our list of the best Australian stocks to buy for the long term. CSL Limited (ASX:CSL.AX) shares have an average rating of 'Buy', with an average price target of A$302, indicating an upside of 5.23%. Like Sonic Healthcare, the company has also been active globally in recent years. CSL Limited (ASX:CSL.AX) scored a victory in March 2024 when Canada's medical regulator approved its iron deficiency treatment. At the same time, management also hopes to capture a slice of the U.S. flu vaccine market this season.
7. Washington H. Soule Pattinson & Company Limited (ASX:SOL.AX)
Analyst average price target: A$35.6
Increase rate: 5.92%
Washington H. Soul Pattinson and Company Limited (ASX:SOL.AX) is an Australian small financial services company headquartered in Sydney, Australia. The company was founded in 1872, making it one of the oldest companies on our list. The company invests in public and private companies through the stock market and private equity. There is only one analyst price target available for Washington H. Soule Pattinson & Company Limited (ASX:SOL.AX), with the stock price expected to increase by 5.92%.
6. Santos Limited (ASX:STO.AX)
Analyst average price target: AUD 8.37
Increase rate: 8.00%
Santos Limited (ASX:STO.AX) is an Australian oil and gas exploration and production company headquartered in Adelaide, Australia. It operates in Australia, the United States, Timor-Leste, and Papua New Guinea. The stock has an average rating of Buy, and analysts have an average price target of A$8.38. Santos Limited (ASX:STO.AX) has been relatively quiet in the news of late after negotiations with Australian energy giant Woodside broke down earlier this year.
Aristocrat Leisure Limited (ASX:ALL.AX), Santos Limited (ASX:STO.AX), Telstra Group Limited (ASX:TLS.AX) and BHP Group Limited (NYSE:BHP). These are some ASX stocks with a lot of upside potential.
Click to continue reading 5 ASX stocks best suited for long-term investment.
Recommended articles:
Disclosure. none. 10 ASX stocks that are best for long-term investing Originally published on Insider Monkey.
