In this article, we will discuss the 10 Best Long Term ASX Stocks to Buy Now.
Vanguard believes that Australia’s economy remains well-placed to recover gradually in 2025 after the broader economy witnessed its slowest growth in 32 years in 2024 amid sticky inflation and higher interest rates. The investment firm expects modest improvement in economic momentum, courtesy of higher real household incomes as inflation subsides. Furthermore, a rebounding housing market and expectations of rate cuts might also provide some support.
Key Indicators Likely to Shape Australia’s Economy in 2025
The Reserve Bank of Australia (RBA) kept the policy rate target unchanged at 4.35% on December 10. However, the bank noted that it continues to see signs of inflation moving sustainably towards the target. That being said, Vanguard expects that RBA will remain patient and that a tight labor market is expected to keep RBA from initiating rate cuts until Q2 2025. Furthermore, stagnant labor productivity has been contributing to higher inflation.
The employment-to-population ratio of 64.5%, and the labor force participation rate of 67.1% both were at record levels in December 2024. With the broader economy remaining close to full capacity, businesses are required to hire, which can keep the labor market tight and unit labor costs at elevated levels, opines Vanguard. Notably, the unemployment rate increased to a seasonally adjusted 4.0% in December, reflecting a rise from 3.9% in November. The investment firm anticipates that the unemployment rate can rise to ~4.6% in 2025 due to tightened financial conditions amidst higher interest rates.
Outlook on Australian Equities
As per Paul Taylor, Portfolio Manager at Fidelity International, the long-term prospects for Australian equities are promising thanks to numerous structural tailwinds. Notably, population growth fueled by immigration and the associated increase in consumption offer a robust foundation for economic expansion. The persistent service sector inflation is expected to be a critical indicator for RBA to monitor. If the service inflation begins to ease, it can hint at the potential for rate cuts, providing relief for younger Australians witnessing higher mortgage costs and higher living costs.
Furthermore, Taylor believes that the relationship between China and the Trump administration is expected to be critical. If China responds through fiscal stimulus measures to aid the domestic economy, Australian materials companies might benefit. This is due to strong linkages between China’s economy and the broader Australian materials sector.
With this in mind, let us now have a look at the 10 Best Long Term ASX Stocks to Buy Now.
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Our Methodology
To list the 10 Best Long Term ASX Stocks to Buy Now, we used a screener to shortlist the stocks that are trading on ASX and the US exchanges. Next, we chose the ones which were popular among hedge funds. Finally, the shortlisted stocks were arranged in ascending order of their hedge fund sentiments, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Long Term ASX Stocks to Buy Now
10) Telix Pharmaceuticals Limited (NASDAQ:TLX)
Number of Hedge Fund Holders: N/A
Telix Pharmaceuticals Limited (NASDAQ:TLX) is a commercial-stage biopharmaceutical company, which is focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals for cancer and rare diseases in Australia, Belgium, Japan, Switzerland, and the US. The company’s revenue is currently generated predominantly from sales of Illuccix®, its diagnostic radiopharmaceutical for prostate cancer PET2 imaging. Notably, FY 2024 investment into R&D is in line with guidance, financed by earnings generated from product sales.
In Q4 2024, the company saw unaudited revenue of ~US$142 million (AU$218 million), representing an increase of 46% over the prior-year corresponding quarter and a QoQ increase of 5%. Telix Pharmaceuticals Limited (NASDAQ:TLX) highlighted that robust sales of Illuccix led the company to close out the year with revenue above guidance while progressing its strategic priorities. The company remains well-placed for a significant expansion, which includes planned launches of multiple imaging products in key markets and advancing late-stage therapeutic assets into pivotal trials.
Therefore, 2025 continues to be a transformative year for Telix Pharmaceuticals Limited (NASDAQ:TLX). The company submitted a Biologics License Application (BLA) for its renal cancer imaging candidate on December 27 and it targets a US commercial launch in H2 2025. UBS Group upped the stock’s price target from $21.00 to $22.00, giving a “Buy” rating.
