There are more than 2,000 individual stocks listed on the ASX, including Australia’s best stocks. Selecting the best ASX stocks from such a large pool can be a formidable challenge. ‘Best’ is a subjective term, but all investors can agree that there is one standard that makes an ASX stock a potential best buy: profit growth.
Investing is all about generating return on the investment dollar. For traders looking to invest in Australian stocks, we have picked out some of the best ASX stocks to buy based on positive opinions from the ASX analyst community.
BUY, OVERWEIGHT, OUTPERFORM, and even HOLD recommendations are virtually always reflective of analyst research indicating that the stock has future growth potential.
Here, then, are five of the best ASX stocks to buy now.
CSL Limited (ASX: CSL)
CSL Limited continues to grow, despite the wisdom quoted from legendary investor Peter Lynch that big companies don’t make big moves.
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The market for CSL’s blood plasma treatments and influenza vaccines has multiple tailwinds propelling the stock that other large cap stocks can only dream of. The largest generation that the US had ever seen – the baby boomers – continues to retire. The boomers and the Millennials – the newly anointed largest generation as of 2011 – and all the generations to follow are living longer lives, extending the time during which they could benefit from CSL products.
The company invests heavily in R&D (research and development), with multiple non-plasma products in its pipeline to promote growth.
CSL’s financial performance throughout the COVID-19 pandemic did not go unscathed, as hospitals worldwide put elective treatments on hold. However, the company did manage to grow revenue, with net profit showing a decline between FY 2021 and FY 2022 and again in FY 2023 but rebounded in both FY 2024 and FY 2025..
CSL Limited Financials
Source: ASX 26 February 2026
Year over year date the share price has dropped 34.9.%. CSL did not cut dividends following COVID. In FY 2025 the company paid dividends of USD $2.92 per share, up from $2.64 in FY 2024.
Analyst coverage of CSL places the company as a strong contender for a spot on any best ASX shares to buy list. At marketscrener.com 10 analysts of 16 reporting have a BUY recommendation, 3 are at OUTPERFORM, and 3 are at HOLD.
The Wall Street Journal has an OVERWEIGHT rating on CSL, with 12 of the 18 analysts reporting at BUY, 2 at OVERWEIGHT, and 4 at HOLD.
ResMed Inc (ASX: RMD)
This US-based provider of high-tech solutions for two of life’s essential functions – breathing and sleeping – has an additional tailwind at its back beyond an ageing, obese and long-life population.
Its flagship products are for the treatment of sleep apnoea. The distinguished British journal The Lancet Respiratory Medicine reported the startling estimate of one billion people between the ages of 30 and 69 affected by obstructive sleep apnoea, suggesting that the condition is both “under-recognised and underdiagnosed”.
To add to this, ResMed’s primary competitor – Philips Respironics – is in the midst of a product recall. ResMed produces a line of sophisticated, digitally connected sleep apnoea treatment products and other devices for respiratory conditions.
While the company makes respirators, the COVID-19 pandemic shut down the sleep centre labs where clients undergo testing for sleep apnoea. Despite these headwinds, the company managed to grow revenues from FY 2020 to FY 2022, with net income slipping from $621m USD in FY 2020 to $474m in FY 2021 before rebounding strongly in FY 2022 with a net profit of $779m. By FY 2023, the company’s financials appeared to have fully recovered, with revenues up 21% and net income up 15%. The trend continued through FY 2024 into FY 2025.:
ResMed Financial Performance
Source: ASX 26 February 2026
In addition to the challenges posed by the COVID Pandemic, ResMed is facing challenges from weight loss drugs, since obesity can lead to sleep apnoea, a core part of ResMed’s business. The company has responded, pointing out sleep apnoea is caused by more than weight loss.
Over the challenging period of five years the share price is up about 34%.
Like CSL, some analysts see ResMed as a best Australian stock to buy. Marketscreener.com has a consensus OUTPERFORM rating on RMD, with 9 of the 19 analysts reporting at BUY, 3 at OUTPERFORM, 6 at HOLD, and 1 at SELL.
The Wall Street Journal has a consensus OVERWEIGHT rating on RMD, with 13 of the 29 analysts reporting at BUY, 9 at OVERWEIGHT, 6 at HOLD, and 1 at SELL
The consensus rating is BUY, with one STRONG BUY, three BUYS, three HOLDS, and one UNDERPERFORM.
Risk-averse investors should consider both ResMed and CSL as best ASX stocks right now, if for no other reason than that these two companies are as ‘inflation proof’ as is possible. Both have high-demand products with the power to raise prices without cutting into demand, as Medicare and private insurance are the payers, not the end consumer.
WiseTech Global (ASX: WTC)
WiseTech Global is a provider of software services offering door-to-door solutions for the logistics sector. The company’s flagship product is CargoWise, a complex analytical and control software platform for managing every facet of supply chains unique to each of the company’s customers.
Listing on the ASX in April 2016 with a first-dayfirst day closing price of $5.37 AUD per share, WTC shares have risen 2more than 1,600% but have been badly battered during the downturns in high growth technology stocks in 2025. Year over year the share price is down 44.4%
The company began paying dividends in its full year of operation and has maintained dividend payments even in the face of massive challenges as the COVID-19 pandemic wreaked havoc on global supply chains.
Despite challenging conditions in its sector, WiseTech has grown both revenue and net profit in each of the last four fiscal years.
WiseTech Global Financial Performance
Source: ASX 26 February 2026
Analysts see beyond the challenges the company may continue to face and have become bullish on the stock.are of mixed opinion as to WiseTech’s status as an ASX best stock to buy . Marketscreener.com has a consensus BUY rating on WiseTech shares, with 10 of the 17 analysts reporting at BUY, 2 at OUTPERFORM, and 5 at HOLD.
The Wall Street Journal has a consensus OVERWEIGHT rating on WiseTech shares, with 12 of the 18 analysts reporting at BUY, 1 at OVERWEIGHT, and 5 at HOLD.
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NextDC Limited (ASX: NXT)
NextDC Limited owns and operates 11 independent data centres across Australia designed and developed by the company. Client servers can be ‘colocated’ or stored at a NextDC data centre, eliminating the need for expansion at the client site. NextDC offers a full range of connectivity services with other enterprises, information communications technology (ICT) providers, and telecommunication providers via the cloud.
NextDC clients have cloud access to Australia’s leading ICT partners, value-added service providers, and managed and professional services providers. The share price, affected by global tech stock volatility in 2022, benefited from projected data center demand driven by the AI boom in 2025 The share price did not escape the global tech stock Over five years the share price is up 17%
The company’s business model calls for anticipating data centre demand with construction of new centres before they are needed. The capital expenditures involved has led to the company not posting a profit since FY 2022, with posted losses increasing each year as spending to ramp up data centre supply increased.
NextDC Financials
Source: ASX 26 June 2025
The analyst community strongly concurs that NXT is an ASX best stock to buy. right now. Marletscreener.com has an analyst consensus rating on NXT at BUY, with 9 of the 15 analysts reporting at BUY, 5 at OUTPERFORM, and 1 at HOLD.
The Wall Street Journal has an analyst consensus rating on NXT at BUY, with 10 of the 15 analysts reporting at BUY, 4 at OVERWEIGHT, and 1 at HOLD.
Xero Limited (XRO)
New Zealand based Xero Limited was reportedly a “first mover” in providing cloud-based accounting software. Xero caters to SMEs (small to medium sized enterprises) and the accounting professionals working in that client space. The company has grown to grab the number two position of the largest technology stocks on the ASX.
A few years back the Australian investment community coined an acronym – WAAX – in response to the US coining some of their top tech stocks with the FANG acronym. The use of both has faded away but some investors remember that Xero made the list with a market cap of about AU $9.5 billion dollars. In the six years since the WAAX acronym came on the stage, Xero has nearly doubled its market cap, rising to over AUD $20 billion dollars as of 1 December of 2025.
Like other ASX tech stocks, Xero got hit hard in 2022 and the share price’s upward trend halted in the volatility of 2025. Over five years the share price has dropped 8.3%.
The company lost money in FY 2022 and 2023 but returned to profitability in FY 2024 and FY 2025. The positive trend continued with the Half Year 2026 results, showing a 20% revenue increase and a 42% rise in net profit but income from operations dropped 20%,
The loss came from a major acquisition Xero made to ramp up its presence in the US market. Some analysts feel the acquisition will not produce in the near-term, disappointing investors. The company is looking to grab market share in the US and believes this acquisition will help reach that goal in the long term.
Analysts like Xero, with marketscreener.com showing 15 analysts reporting with a consensus rating at BUY and 9 of the 15 at BUY, 3 at OUTPERFORM, 2 at HOLD and 1 at UNDERPERFORM.
The Wall Street Journal has an analyst consensus rating at OVERWEIGHT with 9 of the 15 reporting at BUY, 3 at OVERWEIGHT, 2 at HOLD and 1 at UNDERWEIGHT.
For investors looking for the best Australian shares to buy, profit is the ‘holy grail’. Profitable companies over time generate higher share prices, which generate higher returns on an investor’s initial investment in the stock.
Profit growth in the future, not in the past, is one measure of the best shares on the ASX. Professional analysts thoroughly research a company’s business operations, opportunities and competition, reserving STRONG BUY, BUY, and OUTPERFORM recommendations for stocks likely to grow profit, and HOLD recommendations with stable profit outlooks.
ASX Stocks FAQs
How Many Stocks are on the ASX?
The ASX has more than 2000 companies listed. The exact number changes from month to month, but it was reported as 2,121 in April 2023.
How do you Short ASX Stocks?
To short ASX stocks, you first borrow a stock from a broker and sell it at the current price. You then buy it back at a later date once, hopefully, the price has moved in your favour. This method of short selling is usually only available to institutional investors. Retail investors instead use CFDs and take a sell position, as CFDs don’t involve the underlying asset.
How do you Research ASX Stocks?
To research ASX stocks you need to gather data from several sources to identify ASX stocks that meet your investment needs. Stock screening tools allow you to search for ASX stocks that meet your criteria and create a shortlist of potential stocks to invest in. These companies will then need to be researched to find out if they are a good investment. Australian companies are required to produce annual reports providing information to investors. These reports contain a wealth of information that will help you decide if you should buy shares in the company.
Are ASX Shares a Good Buy?
Whether or not ASX shares are a good buy depends entirely on the company you are investing in. There are a wide range of companies with shares listed on the ASX, from top tier mining companies, world-leading banks and technology firms. Before investing you should do your own research to determine whether these shares fit your overall investment goals.
