Investors are closely monitoring the market as the fiscal year progresses, particularly in light of the fact that numerous companies released their financial results recently, which caused share values to fluctuate in response. A few stocks have stood out, and we highlight the top 10 Australian equities that have performed the best in terms of YTD return for 2024.
1. Goodman Group (ASX: GMG)
The negative effects of rising long-term government bond rates and revaluations in the property market resulted in a net loss for Goodman Group, although overall business conditions remained favorable. The company's share price experienced a significant increase due to its strong dedication to capital management and development initiatives, as well as its good mastery of current trends.
The company’s shares have increased by more than 7% when financial reports were made public. Share prices have continued to rise, hitting their highest level in over 15 years due to annual earnings projections and analysts at Jefferies think it is still cheap, suggesting room for more gains.
2. Light & Wonder Inc (ASX: LNW)
From a low point of A$114 to a height of A$167, Light & Wonder Inc., a multinational gaming company has grown significantly and its value has risen dramatically. The company's earnings performance was consistent with this rising share price trend as it announced a 16% increase in its full-year consolidated revenue, above market forecasts. Furthermore, a 13% year-over-year (YoY) growth in consolidated revenue to $770 million has boosted the share price further. Light & Wonder Inc. intends to pursue new markets as it grows its company activities in 2024 and the company intends to strengthen its market position and access additional revenue streams from a variety of gaming sectors.
3. QBE Insurance Group QBE Ltd (ASX: QBE)
In addition to its primary business of providing worldwide property and casualty insurance, QBE also runs a reinsurance business, which made a substantial contribution to the strong performance in the group's full-year results that were made public on February 26. The insurer said its net profits for the entire year increased significantly, more than tripling the amount from the previous year. Strong premium growth, driven by both renewal rates and new business acquisitions, drove its strong results.
4. Reece Ltd (ASX: REH)
Reece Limited is a corporation that specializes in the wholesale distribution of a wide range of products, such as systems for heating, ventilation, air conditioning, and refrigeration; plumbing; waterworks; and bathroom fittings. Reece's shares increased significantly when the company revealed its financial results and profit recently. Reece remains dedicated to its long-term investment strategy even though it anticipates moderated demand in the second part of the year.
5. WiseTech Global Ltd (ASX: WTC)
WiseTech Global Limited, an Australian company, offers state-of-the-art cloud-based logistics software to a global clientele. Their flagship product, CargoWise, helps more than 18,000 companies across 170 countries—by simplifying the warehousing and transaction processes. Its profit for the first half of the fiscal year increased by 5% and it increased its dividend payment and the upper range of its full-year profit margin prediction due to the robust financial performance. This action demonstrates the company's strong financial standing and its hopeful outlook for the future.
6. Wesfarmers Ltd (ASX: WES)
Wesfarmers Ltd, a conglomerate known for its varied portfolio, has successfully utilized its retail and industrial sectors to achieve impressive financial outcomes, earning it favor among investors. Revenues rose 0.5% to $22,673 in 2023 while Earnings Before Interest and Tax (EBIT) rose 1.6% to $2,195 million. Meanwhile, its share price has risen by 25.60% on a year-to-date basis and is currently trading at $71.64.
7. Suncorp Group Ltd (ASX: SUN)
Financial services company Suncorp Group has achieved outstanding performance supported by a strong insurance business and a well-received strategy plan from the market. With a significant 23% growth from last year, the corporation reported half-year sales of A$9.65 billion. In light of this profitable result, Suncorp's board decided to declare an interim dividend of 34 Australian cents per share, which is a marginal increase over the 33 Australian cents per share that was paid out the previous year. It looks like Suncorp will reach, if not surpass, the midpoint of its projected underlying margin objective for the fiscal year. It also expects to receive a sizable capital return after selling off its banking division.
8. Brambles Ltd (ASX: BXB)
Brambles is a provider of supply chain logistics solutions. It has prospered by meeting the growing need for effective distribution in the face of difficulties to global trade, which has led to record highs for its share price. The pallet supplier upped its annual performance projection after exceeding market profit forecasts for the six months that ended in December.
In addition, Brambles has successfully decreased its capital expenditures to $527.5 million from $862.2 million in the prior year. The company's calculated decision to digitize its pallet-pool tracking system, which sped up pallet returns, is partly responsible for Brambles' success. The other component that contributes to asset efficiency is the proactive steps taken by the organization, such as the integration and use of data.
9. ResMed Inc (ASX: RMD)
Leading the way in digital health, ResMed Inc. provides a range of cloud-connected medical devices that are transforming the way people with chronic illnesses like COPD and sleep apnea are treated. The company has performed admirably on the stock market, with a notable 18% increase in share price during the last three months.
By reporting a noteworthy 12.48% gain in sales as of December 31, 2023, the company demonstrated a significant improvement in its top-line financial results. ResMed's strong financial performance is further demonstrated by its outstanding return on equity (ROE) and return on assets (ROA), which demonstrate how well the business uses its assets to produce maximum returns.
10. Xero Ltd (ASX: XRO)
Xero is a potentially good share to look at in July. Its cloud accounting platform has over 4 million subscribers. Goldman Sachs finds that over 100 million businesses could leverage its products, pushing its share price up and making it a behemoth amongst its peers. Its $164 price target on Xero shares and strong buy rating mean current holders could see their portfolio rise by 22%. Its share price has risen by 20% when compared to one year ago.
If you are looking for an upside in the ASX, this list can provide some guidance for you. According to analysts and major firms, these shares coils rise by 10% - 25% on average. This makes them a good buy opportunity now as strong prospects and good performance over the last year are recipes for success in the coming months.
As the ASX continues to offer a range of opportunities, these ten stocks have shown strong performance and potential for further growth. From established companies like Wesfarmers and QBE Insurance Group to innovative firms like WiseTech Global and Xero, these equities offer a balance of stability and growth prospects. Investors may find value in considering these stocks, given their solid fundamentals, strategic growth plans, and positive financial outlooks. These companies are likely to perform well in the coming months and are worth monitoring closely.
