The top ASX shares to buy in December 2023
ASX markets are getting stabilized, and numbers of ASX stocks are poised to shoot up due to their strong fundamentals. There are many stocks that have corrected from its all-time high and again offer a favorable price to buy. The upcoming New Year provides ample opportunity for investors to reassess their portfolios and look at some special stocks to diversify. Let us examine five stocks that could be a good addition to your portfolio as we look ahead and start to plan for 2024.
#1. Sandfire Resources Limited (ASX: SFR)
Market capitalization: $2.82 billion.(01, Dec 2023)
Sector: Basic Materials.
Current Market price: $6.26
In the September quarter, the metals sales recorded at MATSA were broadly aligned to metal production, with 14,001t of copper, 15,064t of zinc, 1,813t of lead, and 406 koz of silver sold. The underlying mine operating costs at MATSA were reported to have reduced by 7% from the June 2023 quarter to US$82 million, reflecting the modest improvement in productivity and efficiency.
The long-term fundamentals for copper will remain strong. The company will substantially capitalize on its copper equivalent production growth of 50% from continuing operations across the two years to the end of FY2025.
#2. CSL Ltd. (ASX: CSL)
Market capitalization: 126.57 billion. (01, Dec 2023)
Sector: Healthcare.
Current Market price: $262.23
Revenue saw growth of 31% on a constant currency basis in FY2023. The NPATA was $2.6 billion, up 20% at constant currency. The net profit after tax was $2.2 billion, up 8% at constant currency, and includes the one-off costs associated with the acquisition of CSL Vifor.
The company delivered its revenue growth projection to be in the range of approximately 9% to 11% on a constant currency basis over FY2023. The NPATA is expected to be in the range of approximately $2.9 billion to $3 billion at constant currency and growth of between 13% and 17%. The growth percentage does not take into account the one-off gain made from the sale proceeds of property in FY2023 of $44 million.
#3. Capral Ltd. (ASX: CAA)
Market capitalization: -155.97 million. (01, Dec 2023)
Sector: Basic Materials.
Current Market price: $8.72
The company increased its production capabilities and product portfolio as a paint line was installed late in 2022, providing Capral with powder coating capability in NSW for the first time. The company’s efforts towards ESG also saw it introduce lower-carbon aluminum options to the Australian market. Further, the company’s restructure of its largest manufacturing operation at Bremer Park in Queensland back in 2019 continues to deliver cost savings and improved operational efficiencies to date, as Bremer Park delivered a strong profit contribution to the group.
#4. HAZER Group Ltd. (ASX: HZR)
Market capitalization: 130.71 million. (01, Dec 2023)
Sector: Basic Materials.
Current Market price: $0.65
Hazer has set a mark for low-cost, low-emission hydrogen technology. The cost of hydrogen ($/kg) production has become a critical turning point all over the world. The competitive advantage for the company is that, due to its establishment in the existing infrastructure, shipping is eliminated. Ammonia is transportable, but the reconversion technology is yet to be upgraded and could be expensive. The company sells cheaper gas and power on the North American market. Significant strategic partnerships have seen collaboration with FortisBC, Hatch, Engie SA, Chubu Electric Power, and Chiyoda Corporation with the aim of boosting the production capacity of hydrogen and graphitic carbon at large scales.
Frequently Asked Questions (F.A.Q)
What are good stocks to invest in right now in 2023?
ASX markets are getting stabilized, and numbers of ASX stocks are poised to shoot up due to their strong fundamentals. There are many stocks that have corrected from their all-time highs and again offer a favorable price to buy. Some of the stocks tend to move upside, such as Sandfire Resources Limited, Capral Ltd., and CSL Ltd.
What is the best strategy to choose an ASX stock?
There are multiple parameters that matter when it comes to selecting a company for buying; a single winning strategy is not enough. The past track records and balance sheet strength strongly favor future prediction.
What are the stocks that have the most potential to grow in 2023?
Capral Limited's restructure of its largest manufacturing operation at Bremer Park in Queensland back in 2019 continues to deliver cost savings and improved operational efficiencies to date, as Bremer Park delivered a strong profit contribution to the group. CSL Limited has delivered strong revenue projections. Hazer Group Limited has the unique advantage of selling cheaper gas and power on the North American market, and significant strategic partnerships provide an advantage for notable future growth.
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