Top ASX Shares to Buy in September 2024

Team Veye | 02-Sep-2024

With stock markets near record highs and many important events on the horizon, the following are the Best Stocks to Invest in currently.

ARB Corporation Limited (ASX: ARB)

ARB Corporation is one of the good Fundamental Stocks that emerges as a compelling investment opportunity with a robust distribution network encompassing company-owned and licensed stores, ensuring market reach across diverse segments. Key alliances with automotive giants like Ford and Toyota provide exclusive advantages and establish ARB as an industry leader. 

Since fiscal year 2020, ARB has achieved notable growth in key financial metrics. Sales revenue has grown at a robust CAGR of 13%, demonstrating the company's strong market traction and ability to capitalize on opportunities. 

From June 2021 to December 2023, ARB demonstrated strong financial performance with consistent stability in revenue, EBITDA, and NPAT on a quarterly basis. During this period, there was a notable increase in net cash flow from operating activities, rising from $45.06 million in June 2021 to $71.55 million by December 2023. The company maintained above-average margins throughout, indicating robust profitability and effective cost management.

ARB Corporation Limited is one of the Best Companies to Invest in having established itself as a consistent dividend payer over the years, maintaining a steadfast commitment to providing reliable returns to its shareholders. 

ARB Corporation Limited, very well suited for Long Term Holding,

is positioned for robust growth in both FY2024 and FY2025, buoyed by secured contracts from original equipment manufacturers (OEMs). The ongoing property redevelopment program, slated for completion by the end of 2024, underscores ARB's commitment to enhancing operational efficiency and capacity. A strategic partnership with Ford Australia through the FLA (Ford Licensed Accessories) program provides a significant competitive edge in the market. 

ARB Corporation Limited maintains a robust leadership foundation in the automotive accessories industry, primed for future expansion. Its strategic distribution approach and continuous innovation solidify ARB's position as a dynamic player in the market. Supported by a strong order book and a track record of solid performance, ARB demonstrates resilience and growth potential. Strategic investments totaling $26.1 million in assets and $11.0 million in U.S. associates (ORW and Nacho) underscore ARB's commitment to expansion. These investments highlight ARB's strategic foresight in capitalizing on growth opportunities both domestically and internationally, positioning the company for sustained success in the competitive automotive sector. 

Xero Limited (ASX: XRO)

Xero Limited reported solid results for the fiscal year ending 31 March 2024, demonstrating notable improvements across key financial and operational metrics.

In FY24, Xero saw strong growth across its markets. Revenue in Australia and New Zealand rose 22% to NZD 969.9 million, driven by a 11% increase in ARPU to NZD 37.97 and a total of 2.4 million subscribers. Australia added 205,000 subscribers, reaching 1.8 million, while New Zealand gained 38,000, totaling 605,000. Internationally, revenue grew 24% to NZD 743.9 million, with ARPU up 17% to NZD 41.05 and subscribers reaching 1.8 million. The UK added 107,000 subscribers to reach 1.1 million, North America grew by 38,000 to 422,000, and the Rest of World added 31,000 subscribers, reaching 285,000.

Xero Limited is among Growth Potential Stocks as its financial history from 2020 to 2024 reflects a trajectory of evolving growth and profitability. Over this period, the company's revenue surged from NZD 718.2 million to NZD 1,713.8 million, highlighting robust demand for its software solutions and successful market expansion.

For FY Mar-2025, FY Mar-2026, and FY Mar-2027, Xero Limited's financial outlook demonstrates an improving and favorable trend. The company's EV/Revenue multiple is expected to decline from 11.16x in FY Mar-2025 to 8.40x by FY Mar-2027, suggesting that revenue growth will outpace the growth in enterprise value, indicating increasing valuation attractiveness. 

On the profitability front, Xero's return on assets is forecasted to rise from 10.39% to 14.86%, while return on equity will increase from 17.68% to 20.33%, and return on invested capital will grow significantly from 24.33% to 39.18%. These trends indicate that Xero is expected to achieve higher efficiency, profitability, and capital utilization, reinforcing a strong financial performance outlook and enhanced investor confidence in the company's future growth.

Genesis Minerals Limited (ASX: GMD)

Genesis Minerals Limited is among the Best ASX Stocks consistently realizing substantial growth in production, while simultaneously aiming to enhance ore processing capacities and increase ore stockpiles. 

Genesis Minerals Limited has announced enhancing its FY25 production outlook on earlier re-start at Laverton mill. In its quarterly financial results for the period concluding on 30 June 2024, it achieved a gold production of 34,617 ounces, with an all-in sustaining cost (AISC) of $2,698 per ounce. 

Genesis reported a significant rise in surface ore stockpiles, which increased to approximately 314,000 tonnes by 30 June 2024, a substantial increase from about 5,000 tonnes on 30 June 2023.

The cash and bullion accumulation for the June quarter amounted to $26.9 million, prior to an investment of $34.6 million in growth capital and exploration aimed at enhancing production capacity. This investment included $7.5 million allocated for the early acquisition of the Leonora Lodge.

As of 30 June 2024, Genesis Minerals reported holding $173.0 million in cash and bullion, a decrease from $180.7 million on 31 March 2024, while maintaining a position of no bank debt.

The company is consistently achieving significant enhancements in its processing capabilities, particularly evident at its Leonara mill. In the fiscal year 2024, the mill recorded its highest processing output since fiscal year 2015, reaching 1.15 million tonnes, thereby greatly enhancing confidence in the potential for production growth. Additionally, the company's initiative to recommence operations at the 3 million tonnes per annum Laverton mill sooner than initially planned is anticipated to markedly improve processing rates. This strategic decision allows the company to leverage its stockpiles in response to the favorable pricing dynamics of gold, which are currently advantageous for Genesis.

Genesis has exhibited remarkable and consistent advancement in the growth of long-term shareholder value. Recently, the company reached a pivotal milestone in commercialization, resulting in a significant financial achievement during the first half of FY24. Anticipated positive fiscal outcomes for the full year are likely to enhance investor confidence in the security. Furthermore, Genesis has built a solid foundation for earnings and cash generation, while also presenting highly encouraging prospects for production expansion in FY25. The company possesses the potential for steady scalability over the next decade, indicating opportunities for sustained capital appreciation for investors.

Source: Company’s Report

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024

(+61)

DIVIDEND
INVESTER REPORT

Dividend-Investor-Report

Each week we cover companies offering a good combination of growth & dividends, maintaining a balance between stable 'cash flow' and risker 'raising stars'. Our guidance helps you choose companies with regular dividends and opportunities for lower-risk capital growth.

  • The best High Yield Dividend Stocks picked by our team of analysts every week.
  • Detailed in-depth Analysis with our expert Recommendations Buy, Hold or Sell.
  • Free Daily Analysis Report to keep up with the latest on what's hot and what's not.
  • Gain instant access to a wide range of Dividend Share Reports, exclusive to members only.
Frequency: Every Tuesday