In this piece, we will look at the best ASX stocks to buy.

While the Federal Reserve cut interest rates in the US a couple of days back, in Australia, the trend appears to be moving in the opposite direction. RBA Governor Michele Bullock, in a statement on December 9th, commented that “I don’t think there are interest rate cuts in the horizon for the foreseeable future.” The official added that the question was whether “is it just an extended hold from here or is it, um, possibility of a rate rise.” The Reserve Bank’s board will analyze these trends in the coming months, according to Bullock.

Bloomberg’s Swati Pandey discussed Governor Bullock’s statements in The Bloomberg Australia Podcast. She commented that while it was expected that the bank would leave rates unchanged at its latest meeting, it was nevertheless “quite surprising to a lot of people when she gave a very clear signal that further interest rate cuts are off the table.” Pandey added that “given where the economy is tracking, given where inflation was, and the upside risks to both, it looks like, forget about interest rate cut, in fact, it’s interest rate hike that we will be staring at for 2026.”

According to Pandey, it was surprising to a lot of people that Bullock was “that clear in signalling that interest rate cuts were off the table and in fact preparing the ground for a hike.” One economist she spoke to during the conference explained to her that the governor was laying the markers for a “full pivot” towards a tightening bias from the conditional bias right now to prepare market participants in case of a “bad” inflation report in January.

Our Methodology

To compile our list of the 7 best ASX stocks to buy, we used Finviz and Yahoo stock screeners to identify companies that are dual-listed in the United States and Australia. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

7 Best ASX Stocks to Buy Right Now

7. Immuron Limited (NASDAQ:IMRN)

Number of Hedge Fund Holdings: 1

Immuron Limited (NASDAQ:IMRN) is a biotechnology company that provides a medicine to prevent diarrhea and is also developing similar medicines. Its shares were dealt a hefty setback on Wednesday when they closed 25.8% lower after the firm announced that its clinical trial for an ETEC hyperimmune bovine colostrum product had failed to reach a statistically significant level for its primary endpoint. The study was conducted by the Uniformed Services University to evaluate the product for maintaining gut health during travel and deployment. Immuron Limited (NASDAQ:IMRN) asserted that since the product was not administered according to the rules that apply to its Travelan product and was manufactured by a third party, the firm did not consider the results to reflect Travelan’s performance.

In other news, on November 5th, the Food and Drug Administration (FDA) cleared Immuron Limited (NASDAQ:IMRN)’s IMM-529 drug for a phase 2 clinical trial. IMM-529 is for patients with Clostridioides difficile infection, a disease of the gut that causes diarrhea, abdominal pain, fever, and other symptoms. The study is expected to commence in the first half of 2026 and enroll as many as 60 participants who are suffering from the disease for the first time or experiencing a recurring episode.

6. Radiopharm Theranostics Limited (NASDAQ:RADX)

Number of Hedge Fund Holdings: 2

Radiopharm Theranostics Limited (NASDAQ:RADX) is a biotechnology company developing treatments for ailments such as brain metastasis and prostate cancer. B. Riley lowered its share price target for the firm to $13 from $15 and kept a Buy rating for the shares on November 26th. As part of its coverage, the research firm discussed Radiopharm Theranostics Limited (NASDAQ:RADX)’s RAD 101 imaging agent and its RAD 204 diagnostic compound. B. Riley explained that the agents have experienced important clinical progress, with RAD101 having shown proof of concept and RAD204’s dose levels being marked as safe.

Radiopharm Theranostics Limited (NASDAQ:RADX) shared its latest update for these programs on October 20th. The firm explained that RAD 204’s phase 1 clinical trial for patients suffering from small cell lung cancer, non-small cell lung cancer, neck cancer, head cancer, and breast cancer showed uptake (absorption) similar to a previous imaging study. Radiopharm Theranostics Limited (NASDAQ:RADX) added that RAD 101 was currently in a Phase 2b clinical trial and had received the FDA’s Fast Track Designation. According to the firm, RAD 101 targets cerebral metastases, and early results of the trial could lead to a global Phase 3 registrational trial. According to Radiopharm Theranostics Limited (NASDAQ:RADX), the market potential for RAD 101 is promising since 300,000 people in the US are diagnosed with cerebral metastases annually.