Home Wealth Investment The Aussie stocks topping charts around the world

The Aussie stocks topping charts around the world

Australia loves an underdog. So does the world.

Azal Khan

Digital Journalist, Your Money

Editor’s note: This article contains information only. It is not intended as general or personal advice. Your Money recommends seeking professional advice specific to your personal circumstances.


Some Aussie companies are household names but others are flying under the radar despite being leaders in their field.

For investors looking for quality companies to back, there’s a case to be made on the value of home-grown companies.

The Motley Fool’s chief investment officer Scott Phillips rounded up the top Aussie stocks across the sectors that are global winners.

Mining

BHP and Rio Tinto are two big mining companies that dominate the iron ore mining space globally and put Australia on the map as a “place to do business”.

Newcrest Mining in the gold space is also a dominant player, Phillips said.

Healthcare

“Healthcare we really do a fantastic job globally, some of these names are big winners not only on the ASX but globally,” Phillips said.

Phillips’ top picks included CSL, Ramsay Healthcare, Cochlear and Resmed.

“The next generation of Australian winners will probably come from this space as well. There are some other companies that aren’t quite yet world beaters, but this is a space where we do really well.

Technology, research and development and passion for development puts Australian medical technology companies on par with US tech companies, Phillips said.

“In medical tech, we punch well above our weight.”

Investors looking for growth stocks should keep an eye on Nanosonics and Promedicus.

Banking

Macquarie Group is one of the companies in the financial sector that gives Phillips the most confidence.

“It’s nice to have a financial company that actually is doing well globally. Almost every one of the other big four banks have been overseas and come back with a tail between their legs

“ANZ tried to go to Asia, NAB tried to go to the UK and the US and had a shocker, Westpac has kept their nose reasonably clean as has Commonwealth,” Phillips said.

Macquarie’s unique model, “both the infrastructure model it used to have and now that investment banking, almost trading model” set the company apart and makes it a standout Australian company that is a big global player.

ComputerShare is another Australian company Phillips is hedging his bets on “that does a really good job of collecting bills, mortgages, doing the administration jobs that governments and other private companies require, and Computershare are really good at it.”

Consumer

Treasury Wines is a winner in Phillips’ books.

The company has achieved success by taking Australian wines to the world and also buying overseas brands to become a global player through acquisition and growth.

Under its umbrella, Treasury Wine houses “a lot of American brands, some French brands as well for Treasury, and of course the Penfolds name that we know and love, and so do the Chinese in record numbers at the moment. They are doing really well.”

News Corp is an Australian success story that started with one newspaper, the Adelaide Advertiser, by Keith Murdoch, and is now a global media empire.

The conglomerate is a “really strong consumer business” that has “revolutionised print and consumer TV.”

Technology

Home-grown tech success story Atlassian has grown from strength to strength.

Accounting software company Xero is technically a New Zealand company, but Phillips says “in the tradition of pavlova and Phar Lap, we might claim it.”

Wisetech, Appen and Altium are doing “good things overseas from relatively humble beginnings. Phillips says these companies are not quite globally dominant in the same way as companies like BHP, but are market leaders in their niche.

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