In this article, we discuss 5 best ASX stocks to buy now. If you want to see more best ASX stocks to buy now, the risk/reward, and methodology of this list, go directly to 10 Best ASX Stocks to Buy Now.
5. ANZ Group Holdings Limited (ASX:ANZ.AX)
Market Capitalization as of 3/20 in Australian Dollars: 67.546 billion
ANZ Group Holdings Limited (ASX:ANZ.AX) is a leading Australian bank that provides banking and financial products and services to more than 8.5 million retail and business customers. Over the years, ANZ Group Holdings Limited (ASX:ANZ.AX) has grown organically thanks to the strong Australian economy and also through M&A. In July of 2022, ANZ Group Holdings Limited (ASX:ANZ.AX) agreed to acquire Suncorp Bank in a deal that hasn’t closed yet but that could help the company grow further if regulators approve, especially in the the Queensland market. Queensland contributes around 18% of Australia’s GDP and the region has had a good history of economic growth and workforce participation since March 2020.
ANZ Group Holdings Limited (ASX:ANZ.AX) CEO Shayne Elliott said, “The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland. With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business. This will result in a stronger more balanced bank for customers and shareholders.”
4. Westpac Banking Corporation (ASX:WBC.AX)
Market Capitalization as of 3/20 in Australian Dollars: 73.837 billion
Westpac Banking Corporation (ASX:WBC.AX) ranks #4 on our list of 10 Best ASX Stocks to Buy Now given its market capitalization of A$73.837 billion as of 3/20. Westpac Banking Corporation (ASX:WBC.AX) also ranks as one of Australia’s four largest banks with over 13.9 million customers, providing various services such as consumer, business and institutional banking and wealth management services. Like many other banks, Westpac Banking Corporation (ASX:WBC.AX) faces near term headwinds in 2023 given the resulting financial system instability in the United States as a result of the Silicon Valley Bank bankruptcy. Nevertheless, Westpac Banking Corporation (ASX:WBC.AX) has attractive long term normalized earnings potential as the Australian economy continues to expand.
3. National Australia Bank Limited (ASX:NAB.AX)
Market Capitalization as of 3/20 in Australian Dollars: 87.454 billion
National Australia Bank Limited (ASX:NAB.AX) is another of Australia’s big four banks. Specifically, the bank supports over eight and half million customers in Australia, New Zealand, and overseas. Like many other banks, National Australia Bank Limited (ASX:NAB.AX) faces near term headwinds given the recent shocks to the global financial system as a result of several regional bank failures in the United States. Banks also face more economic uncertainty given higher interest rates and still high inflation. Nevertheless, National Australia Bank Limited (ASX:NAB.AX) believes the strong labor market along with substantial household and business savings in Australia will provide resilience to the country’s economy.
2. CSL Limited (ASX:CSL.AX)
Market Capitalization as of 3/20 in Australian Dollars: 137.427 billion
CSL Limited (ASX:CSL.AX) is an Australian biotech company with global operations that focuses on serious and rare diseases. For the 6 months ended December 31, 2022, the company had net profit after tax of US$1.62 billion, steady on a constant currency basis. Underlying profit was up 10% year over year and revenue was up 25% year over year on a constant currency basis. For the period, CSL Limited (ASX:CSL.AX) experienced strong growth in immunoglobulin and albumin sales as well as record levels of plasma collections. If it keeps innovating successfully, CSL Limited (ASX:CSL.AX) could continue to grow.
1. Commonwealth Bank of Australia (ASX:CBA.AX)
Market Capitalization as of 3/20 in Australian Dollars: 162.086 billion
Commonwealth Bank of Australia (ASX:CBA.AX) ranks #1 on our list of 10 Best ASX Stocks to Buy Now given its market capitalization of A$162.086 billion as of 3/20. Commonwealth Bank of Australia (ASX:CBA.AX), also known as CommBank, is Australia’s largest bank that holds over 25% of all Australia’s resident deposits. For the six months ended December 31, 2022, Commonwealth Bank of Australia (ASX:CBA.AX) had statutory NPAT of A$5.216 billion, up 10% year over year. Net interest margin was 2.1% and the company’s common equity tier 1 capital ratio was 11.4% for the period. Like other banks, Commonwealth Bank of Australia (ASX:CBA.AX) could face near term headwinds but still has long term growth potential.
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