Top 3 ASX Growth stocks for 2024
Analysts from the giant research institutes are hoping that 2024 may be a wonderful year for the financial markets.
The various industries, which had taken a toll on much of the financial stress because of global geopolitical events, the Ukraine war, rolling Chinese pandemic lockdowns, and currently the expected global slowdown, are contributing to sizeable share price falls among many of even the fundamentally good ASX companies and growth ASX stocks as well.
ASX growth stocks have taken a hit in 2022. The combined impact of rising inflation and increasing interest rates has been making it much tougher to achieve economic growth. The monthly CPI indicator rose 4.9% in the 12 months to October. The Consumer Price Index (CPI) increased by 1% in the September quarter and by 5.4% over the year. Inflation has declined further in year-ended terms, but it remains high, and underlying measures were stronger than expected in the September quarter of 2023. The Reserve Bank of Australia has a cash target of 3.10%.
“Bad times always come at a good price, and good times always come at a high price, while good times and good prices are rare”.
However, stocks can only be at a reasonable price when there is a correction or blood bath in the markets. This could also make them excellent buying opportunities on the dip, despite the associated risks.
Reasons that make ASX growth stocks special at the moment
The recessionary environment could be changing the investment calculation. The RBA is fighting lower inflation than its counterparts in the USA, UK, and EU, and in theory, this could keep interest rates proportionately lower for longer.
Some of the ASX growth based companies from various sectors that we have identified could show potential to generate return in the near term, these are as follows:
Pro Medicus Ltd (ASX: PME) has a market cap of $9.65 billion and current price of $ as 12 December 2023. The stock has delivered 1 year return of approximately 62% (YTD as of 13 December 2023).
Sector: Healthcare.
Fig: Above presented 1 year chart of Pro Medicus Ltd.
Source: Yahoo finance.
Pro Medicus Ltd continues to maintain a strong project pipeline and has seen further growth in the same with the number of added contracts during FY2023 and the subsequent period. The recently secured contracts are all notably in the United States and support PME’s rapid expansion into North American academic medical centers.
The transaction-based model of the company adds utility and value for both the company and the clients since it opens up space for scaling up while also allowing marketability as clients are only supposed to pay for what they use, regardless of their size.
Iperionx Ltd (ASX: IPX) has a market cap of $273.40 million and share price of $1.25 as 13 December 2023. The stock has produced 1 year return of approximately 76% (YTD as of 13 December 2023).
Sector: Basic Material.
Fig: Above presented 1 year chart of Iperionx Ltd.
Source: Yahoo finance.
Iperionx announced on 7 September 2023, that it had executed a Test Services Agreement and Statement of Work with the U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center (DEVCOM GVSC). On 6 September 2023, the company announced that it signed an agreement with Heroux-Devtek (TSE: HRX) to underpin a 100% recycled titanium supply chain using scrap titanium metal from the aerospace industry.
Frequently Asked Questions (F.A.Q)
Are there any good ASX-growth stocks to buy right now?
There are dozens of ASX growth stocks that provide buying opportunities; currently, Pro Medicus Ltd. (ASX: PME) has a market cap of $9.65 billion as 12 December 2023. There is a tremendous upside potential of 25% to 35% share price growth.
Is there any ASX growth stock where a stake of $1000 could make sense for future growth?
The growth stocks have a high tendency to generate multi-times returns during the market rally. Investors with a high risk appetite are only suitable to take a call on investing in these stocks.
What are the names that suggest an ASX growth stock?
Emerald Resources NL (ASX: EMR) is the perfect example of an ASX growth stock; it has a market cap of $1.59 billion and a current market price of $2.55 (as of 13 December 2023). The company's ROE of approximately 25% shows strong value creation for the shareholders. The PE multiple of 23x and EPS of $0.101 provide a fair value-buying opportunity for investors. The ASX stock has delivered an approximately 123% return in a 1-year period (YTD as of 13 December 2023).
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