Fig.: A 6-month chart represents S&P ASX 200 performance.
Source: Yahoo Finance.
The S&P ASX 200 has been rising steadily and is predicted to continue doing so. The broader index increased by roughly 7.62% over the course of the last six months, from 28 August 2023, to 28 February 2024.This strong momentum could lead to a new high in 2024.
The market is expected to remain strong in 2024, according to analysts from various broking houses. In the monetary policy meeting, the Reserve Bank of Australia (RBA) recently adopted a holding stance regarding interest rate decisions. This indicates that there is less likelihood of future rate hikes, which bodes well for the ASX markets in 2024. The market rally also received additional support from the U.S. 10-year bond yield softening.
Given the significant share price correction experienced by many essentially sound businesses with compelling value propositions; this offers a lucrative opportunity for investors. Let's watch out at four best ASX Shares to Buy that have produced superior returns over the past year and perhaps could be potential, are as follows:
Note: Market cap and share prices are mentioned as of 28 February 2024 for the below-given ASX stocks.
Droneshield Limited (ASX: DRO)
Market Cap: $547.88 million
CMP: $0.895
Return: ~149% in one year (1 March 2023 to 28 February 2024)
Droneshield Limited (ASX: DRO): The company's commitment to improving the utility and efficiency of its current product, DroneSentry-X Mk2, and expanding its cross-selling opportunities is demonstrated by the recent introduction of the EFS. The company has a significant competitive advantage due to its latest global fleet of C-UAS devices, which has undergone a significant update. The update includes key improvements that set the company's services apart and further solidify its position in the market.
PharmAust Limited (ASX: PAA)
Market Cap: $129.72 million
CMP: $0.335
Return: ~313% in one year (1 March 2023 to 28 February 2024)
PharmAust Limited (ASX: PAA): During December 2023, PharmAust successfully secured additional capital to fuel its operations and research initiatives. The company conducted an oversubscribed placement, raising $3.5 million at a premium. In addition to this, approximately $396,000 was generated through an options offer, and an additional $553,000 was obtained through a Research and Development (R&D) tax rebate.
Cauldron Energy Limited (ASX: CXU)
Market Cap: $49.70 million
CMP: $0.041
Return: ~486% in one year (1 March 2023 to 28 February 2024)
Cauldron Energy Limited (ASX: CXU): With two major projects in the Bennet Well Uranium Deposit that are in an advanced stage and have project economics defined by scoping studies, Cauldron has a robust pipeline of projects. In order to move the project forward to the pre-feasibility study stage in the next 12 to 18 months, the company now intends to focus on expanding the project's mineral resource base and conducting additional test work. Drilling at the Melrose Project has begun, opening up possibilities for more research.
Mader Group Limited (ASX: MAD)
Market Cap: $1.37 billion
CMP: $6.87
Return: ~59% in one year (1 March 2023 to 28 February 2024)
Mader Group Limited (ASX: MAD) is anticipated to generate significant revenue and earnings growth for the current fiscal year, indicating that it is well-positioned to maintain its steady growth trajectory. A rise in security prices over the past few years has been attributed to increased stakeholder confidence and a positive outlook that is consistent with the company's historical growth pattern. With $189.3 million at the end of Q2, the company's revenue for the quarter was record high, up 31% from the previous corresponding period (PCP). With a strong 34% increase over the PCP, Q2's positive momentum carried over into 1H FY24, generating a total revenue of $374.4 million.
*All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters
Frequently Asked Questions (F.A.Q.)
What are the best shares to look at in 2024?
The ASX shares, which are likely to show potential, are PharmAust Limited and Nuix Limited. Although investors need to take on additional risk and should conduct due diligence before investing in the following companies, these businesses may be able to overcome obstacles and continue to perform well. One will be in charge of their own investments when making investments in ASX companies.
Which ASX companies are the leading providers of financial services?
Numerous financial services firms, including those in banking, insurance, asset management, and share brokerage, are present in the ASX market. A sizeable portion of the ASX financial sector is made up of the top bank shares. ANZ Group Holdings Limited (ASX: ANZ), National Australia Bank Limited (ASX: NAB), Westpac Banking Corporation (ASX: WBC), and Commonwealth Bank of Australia (ASX: CBA) are a few of the well-known names.
Which stock is currently the most profitable to purchase?
The technology, combined with AI, is playing a critical role, with major players in Australia and around the world investing heavily in response to AI's growing emergence. Some of the leading ASX technology names, such as Wisetech Global Limited, Xero Limited, and Readytech Holdings Limited, are expected to be the key prospects.
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