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.
dan-freeman-7Zb7kUyQg1E-unsplash
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.
5. Immutep Limited (NASDAQ:IMMP)
Number of Hedge Fund Holdings: 2
Immutep Limited (NASDAQ:IMMP) is a biotechnology company developing therapies for cancer and autoimmune diseases. The firm’s shares underwent notable traction earlier this week after Indian firm Dr. Reddy’s Laboratories Ltd.’s subsidiary entered into an agreement with its subsidiary to develop and commercialize a drug outside countries in North America, Europe, Japan, and Greater China. This drug is Immutep Limited (NASDAQ:IMMP)’s Eftilagimod Alfa medicine, which is designed to activate the immune system in order to fight against cancer. The deal benefits the firm as not only does it retain the manufacturing rights for the drug, but it will also receive a $20 million upfront payment from Dr. Reddy.
This cancer drug is dubbed ‘efti,’ and Immutep Limited (NASDAQ:IMMP) secured the deal with Dr. Reddy after reporting positive results from phase one and phase two studies in mid-November. The results for the phase two study demonstrated efficacy in patients with soft tissue sarcoma after being combined with radiotherapy and Merck’s blockbuster cancer drug, Keytruda. The phase one study combined efti with Keytruda and chemotherapy and, according to Immutep Limited (NASDAQ:IMMP), demonstrated an 81% survival rate over 24 months while being used as a first-line treatment for metastatic non-squamous non-small cell lung cancer.
4. Mesoblast Limited (NASDAQ:MESO)
Number of Hedge Fund Holdings: 2
Mesoblast Limited (NASDAQ:MESO) is a biotechnology company developing treatments for inflammatory diseases, heart failure, and other ailments. On November 25th, Jefferies upgraded the firm’s shares to Buy from Hold and increased the share price target to AUD3.30 from AUD3.00. The financial firm cited Mesoblast Limited (NASDAQ:MESO)’s Ryoncil drug as the reason behind its optimism. Jefferies explained that Ryoncil brought in $30 million in gross revenue in Mesoblast Limited (NASDAQ:MESO)’s fiscal second quarter to meet Jefferies’ estimates. Jefferies also estimated that 14 patients completed treatment with the medicine during the second quarter, and added that a total of 78 patients could complete treatment in 2026.
Mesoblast Limited (NASDAQ:MESO) has been scoring major wins with Ryoncil in 2026. For instance, the firm announced on October 3rd that its drug had secured a J-Code by the Medicare and Medicaid services. The classification was an important win for Mesoblast Limited (NASDAQ:MESO) since it allowed the drug to benefit from Medicare and Medicaid reimbursements and expanded its availability across the US. Additionally, Ryoncil was the first drug of its kind to receive this designation. The drug is designed to be used in pediatric patients whose cells are being attacked by donor cells after a stem cell transplant.
3. Telix Pharmaceuticals Limited (NASDAQ:TLX)
Number of Hedge Fund Holdings: 2
Telix Pharmaceuticals Limited (NASDAQ:TLX) is a biotechnology company developing treatments for ailments such as prostate and kidney cancer. The firm’s prostate cancer therapy candidate TLX591 is currently in a phase three study. On this front, Telix Pharmaceuticals Limited (NASDAQ:TLX) shared important news on December 8th when it announced that it had dosed the first patient in the study’s part two. The phase three study is called ProstACT, and according to Telix Pharmaceuticals Limited (NASDAQ:TLX), part two will enroll roughly 490 patients. The firm will also share part one’s results with the Food and Drug Administration (FDA) as part of its bid to bring the part two study to the US.
Telix Pharmaceuticals Limited (NASDAQ:TLX) also made additional inroads to the US in September when it announced on the 23rd that it had received Medicare and Medicaid’s Transitional Pass-Through payment status for its prostate cancer imaging agent Gozellix. This status means that hospitals will get a separate reimbursement for using the imaging agent. Telix Pharmaceuticals Limited (NASDAQ:TLX)’s third-quarter financial report, released on October 14th, saw it report $206 million in revenue to mark 53% annual growth. It also increased its fiscal 2025 revenue guidance to $820 million from $800 million and shared that revenue from imaging products such as Gozellix accounted for the bulk of its sales.
2. Woodside Energy Group Ltd (NYSE:WDS)
Number of Hedge Fund Holdings: 10
Woodside Energy Group Ltd (NYSE:WDS) is an Australian oil and gas exploration and production company. The firm was at the center of an intense and crucial oil and gas drilling rights bidding process on December 10th. According to Reuters, Woodside Energy Group Ltd (NYSE:WDS), along with oil giants Chevron and BP, came out on top of the US government’s first drilling rights sale for the Gulf of Mexico. This was the first auction of its kind since 2023, and it generated $279 million in high bids. Woodside Energy Group Ltd (NYSE:WDS) made $38 million worth of bids, and its joint bid with Deepwater and Repsol for an area in the Walker Ridge region was the second-highest bid.
Additionally, Woodside Energy Group Ltd (NYSE:WDS) also announced on December 9th that it had extracted more than 50 million barrels of oil from its Sangomar oilfield in offshore Senegal. The firm’s Vice President-Senegal, Clive Jones, outlined that the extraction represented 8% of the total estimated resources present at the field. Jones was speaking at the MSBC Oil, Gas & Power 2025 conference. His remarks came after Woodside Energy Group Ltd (NYSE:WDS) had filed arbitration proceedings against Sengal in May over a dispute involving outstanding taxes, as the firm insisted that it had no outstanding taxes payable.
1. BHP Group (NYSE:BHP)
Number of Hedge Fund Holdings: 24
BHP Group (NYSE:BHP) is one of the biggest mining companies in the world. The firm made an important announcement on December 9th when it revealed that BlackRock’s Global Infrastructure Partners would invest $2 billion in Western Australia Iron Ore’s inland power network. Through the deal, BHP Group (NYSE:BHP) will retain operational control of the site, and the two companies will create an entity in which the firm will hold a 51% stake. The mining company will pay a tariff to the new entity corresponding to its share.
Late November and early December also saw considerable action by analysts for BHP Group (NYSE:BHP)’s shares. For instance, on December 3rd, JPMorgan increased its share price target for the firm to GBp 2,300 from GBp 2,100 and kept a Neutral rating on the shares. On November 24th, Bank of America Securities kept a Buy rating and an A$49 share price target. BHP Group (NYSE:BHP) also made an important announcement on November 24th when it announced that it was “no longer considering” a combination with Anglo American plc. The firm cited the “potential of its own organic growth strategy” as one of the reasons behind walking away from a deal that many thought was in response to Anglo teaming up with Teck Resources to create a sizable entity in the copper industry.
While we acknowledge the potential of BHP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BHP and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
