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Theres no single share thats best for all investors as all our needs are different – and whats best for you might not be best for someone else. No-one can say for certain which direction stocks will go; these are ideas only and should not be taken as financial advice.

GameStop and Reddit might be the show-stealers so far this year, but the Australian Securities Exchange (ASX) has been making some pretty big moves itself lately. After a US sell-off drove the Australian share market to its worst session in months in early February, the ASX200 index has since staged an impressive rebound. At the time of writing, the ASX200 index is up more than 5% since February 1.

If youre feeling bullish about the ASX in 2021 but not sure where to start, weve put together a list of ASX stocks that could be worth watching in the year ahead.

Stock themes for 2021

Unless you have a crystal ball, its impossible to say what the next 12 months will look like. But we do know some of the big themes that will probably continue to drive prices in 2021:

Stocks to watch in 2021

With all that in mind, its not easy picking quality stocks. To help identify stock picks for 2021, we used Finders proprietary algorithm to filter Australian-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. In order to better compare historical data, we filtered out stocks that have been listed on the ASX for less than five years.

This doesnt mean these are the best stocks for you. Always do your own research and chat with a professional when in doubt.

The algorithm was last updated 2 August 2021.


How did we pick this list?

We use a proprietary algorithm that rates ASX-listed stocks based on price performance, profit, revenue and dividends. The information provided is general in nature, not personal financial advice, and your personal objectives, financial situation or needs have not been taken into consideration. The companies displayed on this page may not be the best for you and you’re encouraged to do your own research. Always remember that past performance is no guarantee of future results. Investments can go up and down and we do not guarantee the performance of or returns of any investment. For more information about our algorithm, head to our stock ranking page.



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Australian Foundation Investment Company Limited (AFI.AU)

Australian Foundation Investment Company Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia and New Zealand.

  • Market cap: A$10.256 billion
  • YTD performance: 7.67%
  • 1 Year performance: 25.93%
  • 5 Year performance: 59.64%
  • P/E Ratio: 43.5233
  • Headquarters: Australia

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Fortescue Metals Group Limited (FMG.AU)

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It also explores for copper and gold deposits.

  • Market cap: A$61.58 billion
  • YTD performance: -0.25%
  • 1 Year performance: 50.26%
  • 5 Year performance: 566.2%
  • P/E Ratio: 7.0621
  • Headquarters: Australia

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Goodman Group (GMG.AU)

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally.

  • Market cap: A$41.808 billion
  • YTD performance: 13.48%
  • 1 Year performance: 29.17%
  • 5 Year performance: 240.07%
  • P/E Ratio: 18.534
  • Headquarters: Australia

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Pinnacle Investment Management Group Limited (PNI.AU)

Pinnacle Investment Management Group Limited operates as an investment management company in Australia. The company offers third party distribution, and fund infrastructure and support services to its affiliates and various investment managers.

  • Market cap: A$3.315 billion
  • YTD performance: 43.45%
  • 1 Year performance: 114.88%
  • 5 Year performance: 474.59%
  • P/E Ratio: 47.726
  • Headquarters: Australia

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Aventus Group (AVN.AU)

Aventus Group is Australias largest fully-integrated owner, manager and developer of large format retail centres in Australia with a portfolio of 20 centres valued at $2.2 billion. Aventus Group portfolio spans 536,000m2 in gross leasable area and features a diverse tenant base of 593 quality tenancies, with national tenants representing 87 per cent of the total portfolio.

  • Market cap: A$5.609 billion
  • YTD performance: 14.91%
  • 1 Year performance: 36.8%
  • 5 Year performance: 132.36%
  • P/E Ratio: 20.7595
  • Headquarters: Australia

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Milton Corporation Limited (MLT.AU)

Milton Corporation Limited is a publicly owned investment manager. It invests in the public equity and fixed income markets of Australia.

  • Market cap: A$4.572 billion
  • YTD performance: 7.36%
  • 1 Year performance: 27.12%
  • 5 Year performance: 62.23%
  • P/E Ratio: 49.4891
  • Headquarters: Australia

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Clinuvel Pharmaceuticals Limited (CUV.AU)

Clinuvel Pharmaceuticals Limited, a biopharmaceutical company, focuses on developing and delivering drugs for the treatment of patients with severe genetic and skin disorders worldwide. Its lead drug candidate is SCENESSE, a photoprotective drug for the prevention of phototoxicity in adult patients with erythropoietic protoporphyria (EPP).

  • Market cap: A$1.705 billion
  • YTD performance: 24.28%
  • 1 Year performance: 40.21%
  • 5 Year performance: 447.06%
  • P/E Ratio: 77.3318
  • Headquarters: Australia

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SeaLink Travel Group Limited (SLK.AU)

SeaLink Travel Group Limited provides land and marine, tourism, and public transport services in Australia, Singapore, and the United Kingdom. It operates through Marine & Tourism, Australian Bus, and International Bus segments.

  • Market cap: A$1.99 billion
  • YTD performance: 39.16%
  • 1 Year performance: 94.53%
  • 5 Year performance: 255.39%
  • P/E Ratio: 52.659
  • Headquarters: Australia

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Iluka Resources Limited (ILU.AU)

Iluka Resources Limited engages in the exploration, project development, mining, processing, marketing, and rehabilitation of mineral sands. The company operates through Jacinth-Ambrosia/Mid West, Cataby/South West, Sierra Rutile, and United States/Murray Basin segments.

  • Market cap: A$3.891 billion
  • YTD performance: 31.46%
  • 1 Year performance: 78.43%
  • 5 Year performance: 156.57%
  • P/E Ratio: 1.6183
  • Headquarters: Australia

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MFF Capital Investments Limited (MFF.ASX)

MFF Capital Investments Limited is a closed ended equity mutual fund launched and managed by Magellan Asset Management Limited. The fund invests in public equity markets across the globe.

  • Market cap: A$1.688 billion
  • YTD performance: A$1.688 billion
  • 1 Year performance: 21.39%
  • 5 Year performance: 73.66%
  • P/E Ratio: 7.732
  • Headquarters: Australia

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Rio Tinto Group (RIO.AU)

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium.

  • Market cap: A$177.605 billion
  • YTD performance: 10.05%
  • 1 Year performance: 38.65%
  • 5 Year performance: 170.39%
  • P/E Ratio: 6.8907
  • Headquarters: Australia

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Eagers Automotive Limited (APE.AU)

Eagers Automotive Limited engages in the ownership and operation of motor vehicle and truck dealerships in Australia and New Zealand. It operates through four segments: Car Retailing, Truck Retailing, Property, and Investments.

  • Market cap: A$4.165 billion
  • YTD performance: 16.27%
  • 1 Year performance: 79.91%
  • 5 Year performance: 433.57%
  • P/E Ratio: 28.2897
  • Headquarters: Australia

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Centuria Capital Group (CNI.AU)

Centuria Capital Group, an investment manager, markets and manages investment products primarily in Australia. It operates through five segments: Property Funds Management, Developments, Investment Bonds Management, Co-Investments, and Corporate.

  • Market cap: A$7.942 billion
  • YTD performance: 1.15%
  • 1 Year performance: 33.82%
  • 5 Year performance: 168.52%
  • P/E Ratio: 83.75
  • Headquarters: Australia

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Charter Hall Social Infrastructure REIT (CQE.AU)

Charter Hall Social Infrastructure REIT is the largest Australian ASX-listed real estate investment trust (A-REIT) that invests in social infrastructure properties. Charter Hall Social Infrastructure REIT is managed by Charter Hall Group (ASX:CHC).

  • Market cap: A$1.314 billion
  • YTD performance: 11.97%
  • 1 Year performance: 37.74%
  • 5 Year performance: 129.56%
  • P/E Ratio: 7.4896
  • Headquarters: Australia

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WiseTech Global Limited (WTC.AU)

WiseTech Global Limited provides software solutions to the logistics industry in the Asia Pacific, the Americas, Europe, the Middle East, and Africa. The company develops, sells, and implements software solutions that enable logistics service providers to facilitate the movement and storage of goods and information.

  • Market cap: A$14.94 billion
  • YTD performance: 0.39%
  • 1 Year performance: 22.34%
  • 5 Year performance: 536.91%
  • P/E Ratio: 139.6084
  • Headquarters: Australia

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Charter Hall Group (CHC.AU)

With over 30 years experience in property investment and funds management, were one of Australias leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors ? office, retail, industrial & logistics and social infrastructure.

  • Market cap: A$24.635 billion
  • YTD performance: 4.26%
  • 1 Year performance: 31.32%
  • 5 Year performance: 260.52%
  • P/E Ratio: 16.7109
  • Headquarters: Australia

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Integral Diagnostics Limited (IDX.ASX)

Integral Diagnostics Limited, a healthcare services company, provides diagnostic imaging services to general practitioners, medical specialists, and allied health professionals and their patients in Australia and New Zealand. The company provides its services through 64 radiology clinics, including 20 hospital sites.

  • Market cap: A$1.041 billion
  • YTD performance: A$1.041 billion
  • 1 Year performance: 42.35%
  • 5 Year performance: 396.95%
  • P/E Ratio: 32.3457
  • Headquarters: Australia

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Janus Henderson Group plc (JHG.AU)

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients.

  • Market cap: A$10.429 billion
  • YTD performance: 28.38%
  • 1 Year performance: 104.1%
  • 5 Year performance: 1463.96%
  • P/E Ratio: 12.9851
  • Headquarters: Australia

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Lifestyle Communities Limited (LIC.AU)

Lifestyle Communities Limited, together with its subsidiaries, builds, owns, and operates land lease communities that provides affordable housing options in Australia. The company operates 18 communities and approximately 5000 homes.

  • Market cap: A$2.042 billion
  • YTD performance: 14.05%
  • 1 Year performance: 60.66%
  • 5 Year performance: 356.53%
  • P/E Ratio: 22.4225
  • Headquarters: Australia

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Pilbara Minerals Limited (PLS.AU)

Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia. The company primarily holds a 100% interest in the Pilgangoora lithium-tantalum project located in the Pilbara region of Western Australia.

  • Market cap: A$6.077 billion
  • YTD performance: 72.99%
  • 1 Year performance: 370.32%
  • 5 Year performance: 937.94%
  • P/E Ratio: N/A
  • Headquarters: Australia

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Name Product Standard brokerage fee Inactivity fee Markets International

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How to pick stocks

Theres no single winning strategy to filter good stocks because the most important consideration is your own circumstances. Besides, the best stocks are those that perform well in the future. And if 2020 has taught us anything, its that stock market predictions are often wrong.

But that doesnt mean you shouldnt do your homework. Whether you care more about short-term capital gains or long-term dividend growth, its important to know whether a stock is performing well, making a profit, paying dividends or going backwards.

Successful vaccine scenario

Theres a lot riding on whether a global vaccine rollout is successful. In the best-case scenario, vaccines are delivered to the masses quickly and effectively, borders open and life gets back to normal.

In this case, stocks in the travel, banking and energy sectors are expected to benefit as business picks up again. At the same time, IT stocks that rallied thanks to working from home conditions could slow down as portfolios are adjusted.

Of course, we can all envision the worst-case scenario, but the reality probably lies somewhere in between. Regardless, the outcome will likely have a big impact on which stocks perform the best.

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.


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