As the US election draws ever closer, and the S&P/ASX 200 Index (ASX: XJO) hovers just 250 points shy of its all-time high, finding ASX shares with meaningful upside potential can seem challenging.
However, regardless of what unfolds in Washington next week, our team reckons the Aussie market is still ripe with prime investment candidates – for those with a long-term outlook.
So, if you're looking to add some new wealth-building heavy hitters to your investment portfolio in November, here are the ASX shares our Foolish writers are backing:
7 top ASX shares for November 2024 (smallest to largest)
- Jumbo Interactive Ltd (ASX: JIN), $810.79 million
- Web Travel Group Ltd (ASX: WEB), $1.57 billion
- Tuas Ltd (ASX: TUA), $2.39 billion
- Vanguard MSCI Index International Shares ETF (ASX: VGS), $9.35 billion
- ResMed Inc (ASX: RMD), $54.77 billion
- WiseTech Global Ltd (ASX: WTC), $38.59 billion
- CSL Ltd (ASX: CSL), $139.19 billion
(Market capitalisations as of market close 31 October 2024)
Why our Fool writers love these ASX stocks
Jumbo Interactive Ltd
What it does: Jumbo is one of the main companies in Australia making online lotteries possible. Most will know the business by its Oz Lotteries banner through which it operates its core lottery retailing segment. Additionally, Jumbo generates revenue from software-as-a-service and managed services – the latter a white glove service in fundraising for the not-for-profit sector.
By Mitchell Lawler: As the one-year chart above shows, the Jumbo Interactive share price has hardly made its shareholders feel like they've won the lotto. After a couple of twists and turns, shares are in the red for the 12-month stretch.
However, I believe how the share price has performed recently is meaningless. While the shares are down, nearly every single key operational measure at Jumbo has improved compared to a year ago — revenue is up 34%, underlying net profit is up 30%, and free cash flow is up 14%. The company's operating earnings (EBITDA) margin ticked down to 48.1% from 49.6% – not exactly catastrophic.
On a forward price-to-earnings (P/E) ratio of around 19 times, this highly profitable business seems dirt cheap to me.
Motley Fool contributor Mitchell Lawler owns shares of Jumbo Interactive Ltd.
Web Travel Group Ltd
What it does: Web Travel is a global business-to-business travel company operating the WebBeds brand. It provides technology that connects hotels and other travel sellers to a diverse network of travel buyers all over the world.
By James Mickleboro: I think Web Travel Group could be a great ASX stock to buy this month after its shares were sold off in October. That sell-off came after management provided a trading update that fell short of expectations due to revenue margin weakness in the European market.
While this was disappointing, I believe it has created a compelling buying opportunity for long-term investors. Especially given the company is the number one player in a massive market and management is targeting explosive growth over the remainder of the decade.
For example, Web Travel aims to grow its total transaction value (TTV) by 25% to $5 billion in FY 2025 and then to $10 billion in TTV by 2030.
Because of this strong growth outlook, Goldman Sachs has put a buy rating and $6.70 price target on Web Travel shares. The broker notes that "trading at FY25e P/E of 18x vs FY24-27e EPS CAGR of 10.1%, which is still undemanding relative to our broader ANZ Consumer coverage."
Motley Fool contributor James Mickleboro owns shares of Web Travel Group Ltd.
Tuas Ltd
What it does: Tuas is a Singapore-based telecommunications company that was spun out of TPG Telecom Ltd (ASX: TPG). Tuas is led by David Teoh, who helped TPG grow into the business it is today.
By Tristan Harrison: I'm still very bullish on the long-term prospects for Tuas shares. It was my top pick last month, and there are a number of reasons why it's still compelling to me. I think Teoh can utilise the same playbook of offering low-cost telco services to subscribers who are looking for great value.
Tuas is doing well in Singapore despite its relatively young age. The telco recently reported its FY24 result, which showed strong progress across a number of metrics.
The company reported that its revenue increased by 36% to $117.1 million, largely driven by a 28% rise in subscribers. It also reported a 3.3% rise in the mobile average revenue per user (ARPU) to $9.68.
Tuas is demonstrating pleasing operating leverage, with rising profit margins enabling the bottom line to rise faster than revenue. Operating profit (EBITDA) increased by 60%, with the EBITDA margin rising to 42% (up from 36%).
I think the business can continue growing subscribers in Singapore and it's also looking to grow its broadband customers. At the end of FY24, it had 4,000 broadband subscribers and reported strong consumer interest in its offering, which bodes well for FY25 and beyond.
One of the most exciting reasons to consider Tuas is that I believe it may expand to other countries with much larger populations in the future, such as Indonesia or Malaysia.
Motley Fool contributor Tristan Harrison owns shares of Tuas Ltd.
Vanguard MSCI Index International Shares ETF
What it does: The Vanguard MSCI Index International Shares ETF is an exchange-traded fund (ETF) that provides exposure to 1,300+ international companies listed in several developed nations.
By Bronwyn Allen: International shares are popular among Aussie investors this year following the outperformance of the S&P 500 Index (SP: .INX) and the Nasdaq Composite Index (NASDAQ: .IXIC) compared to the ASX 200 in FY24.
Investors are also increasingly drawn to ETFs given their easy diversification and, arguably, lower risk compared to individual stocks. Not surprisingly, these two trends have come together, with ETF provider Vanguard reporting that its Vanguard MSCI Index International Shares ETF was the most popular ETF in its group during the September quarter, attracting cash inflows that were almost double its second-most popular ETF.
I see several benefits to the ASX VGS. There's great geographical and sector diversification, with the ETF exposed to 1,300+ listed companies across 11 market sectors in developed nations. I also like this ETF's focus on large, global businesses, with about 80% of holdings being large-cap stocks.
Motley Fool contributor Bronwyn Allen does not own units of the Vanguard MSCI Index International Shares ETF.
ResMed Inc
What it does: ResMed manufactures and sells respiratory devices and software that help with sleep, mainly continuous positive airway pressure (CPAP) machines, used to manage sleep apnoea. It has a large share of this market after competitor Philips recalled its CPAP devices in recent years.
By Zach Bristow: ResMed's market position places it at the tip of the spear in the respiratory device market and centres it well to capture several structural tailwinds in my view.
One, the push into artificial intelligence (AI) has ResMed already partnering with developers to build 'detection' software for sleep apnoea. This could drive further growth in operating profits, up 21% last year to US$1.5 billion.
Two, around 1 billion people suffer from sleep apnoea worldwide – representing a large, untapped market. ResMed currently has 26 million devices in the field, 2.6% of this population.
Three, GLP-1 weight loss drugs could drive more people to treat their sleep-related issues, and their choices are limited – ResMed products in most instances.
Macquarie rates the stock a buy with a $41.10 price target. With shares trading off recent highs, this could be an attractive entry point for the long term.
Motley Fool contributor Zach Bristow does not own shares of ResMed Inc.
WiseTech Global Ltd
What it does: WiseTech provides logistics software to improve the efficiency of global supply chains. The company's software solutions, including its flagship CargoWise One solution, are used by more than 17,000 logistics organisations, including all of the top 25 global freight forwarders.
By Bernd Struben: WiseTech shares took a big, and in my opinion undeserved, hit following a series of unflattering allegations involving the personal life of founder and CEO Richard White. This led to White stepping down last week. Fortunately for the company, he will stay aboard in a high-level, long-term consulting role to drive product and business development.
While WiseTech shares have mostly recovered from the 26% fall they suffered from 15 to 24 October, shares remain down almost 14% from their 'pre-scandal' highs, which could be a bargain long-term entry point into this thriving ASX growth stock.
What kind of growth are we talking about?
In its FY 2024 results, WiseTech reported a 28% year-on-year increase in total revenue to $1.04 billion, while underlying net profit after tax (NPAT) of $284 million was up 15%.
The WiseTech share price is up by around 104% in 12 months. I don't foresee it doubling again in a year. But I do think the ASX 200 tech stock is likely to amply reward patient shareholders.
Motley Fool contributor Bernd Struben does not own shares of WiseTech Global Ltd.
CSL Ltd
What it does: CSL is a massive healthcare company, with significant operations in medicine, blood plasma products, and vaccinations.
By Sebastian Bowen: This November, I am conscious that the markets remain very close to their all-time record highs, with many ASX 200 shares looking pricey. One stock that isn't looking too expensive, though, is healthcare giant CSL. Today, CSL shares, at under $290 each, remain at a similar price to what you could have bought them for nearly five years ago.
Yet I think the market is missing something here. CSL remains a growth company. Back in August, it revealed an 11% rise in revenues for its 2024 financial year and an 11% hike in net profits. CSL also guided that it expects profits to grow by another 10% to 13% in FY 2025.
This is a global-scale healthcare giant with an impressive R&D pipeline and, thus, a bright future ahead of it. With these healthy numbers, I think CSL is a smart buy when compared to most other ASX blue chips this month.
Motley Fool contributor Sebastian Bowen owns shares of CSL Ltd.
