Since the pandemic sent global markets tumbling in March 2020, the ASX has lagged in performance when compared to other major stock markets in the world. The technology sector has been the best performing sector globally. However, the ASX-200 is not as weighted towards technology stocks when compared to other big market indices such as the S&P 500.
2021 is the year of recovery from the pandemic on the back of not one but several vaccines that have been approved globally. There have been a few favourite growth stocks during the pandemic that have performed exceptionally well. Healthcare as a sector outperformed the ASX 200 as well during this time and the ASX is home to some of the best healthcare stocks.
As we start to enter the post Covid phase and given all the macro economic factors that are at play, there will be a few stocks and sectors that will continue to perform well and there will also be new winners. Here are the best ASX shares to hold on to.
The California based medical equipment manufacturing company also now offers a cloud-based software for diagnosis and treatment without the need for a hospital. Telemedicine and out-of-hospital healthcare looks to be booming and the pandemic has accelerated this shift. As a result, ResMed has benefitted and is aiming to serve 250 million patients through its products by 2025. An ambitious growth strategy that is well within reach for the company. Both sleep & respiratory care, and their SaaS offering has seen steady growth in the past few years and all our estimates point towards ResMed being a good investment in the long-term. Resmed demands a valuation of over $40 billion and is a growth stock to keep an eye out for.
Meridian Energy is dual listed stock – both on the ASX and NZE. It is a 100% renewable electricity generator that retails to homes, farms, and businesses. Meridian generates electricity using solar, wind, and hydro sources. The firm is the largest electricity generator in New Zealand. Meridian generates approximately 30% of the national electricity in New Zealand and retails through Meridian Energy and Powershop. The renewable energy industry is poised for high growth and will be supported by a lot of investments as the world will move towards clean energy. The stock has returned over 35% in the past 3 months. With a lot of tailwinds for the entire industry, MEZ is a growth stock to look out for.
The airline industry is one of the most damaged industries not just in Australia, but globally. This is due to the high operating costs that are associated with these firms. Qantas is the symbol of Australia and the same sentiment has resulted in the government bailing the airline out of the financial crisis.
This results in Qantas emerging out of the crisis with most of its competitors wiped out. The firm has also been under massive restructuring to decrease their costs and operate under a lighter load going forward. With domestic travel open and international travel due to begin sometime next year, Qatas will benefit from the lack of competitors. Qantas has been one of the best performers among ASX industrial stocks in the past few months and with the recent consolidation, the stock is once again trading at an attractive price with one major tailwind imminent as vaccine deployment begins – the reopening of international travel. This makes Qantas an ASX listed stock to keep a close eye on over the next few months.
Origin Energy is one of the best oil stocks on the ASX. It demands a market capitalisation of over $8 billion. The performance in 2020 for all oil stocks has been miserable. However, in the last 3 months ORG has returned 9.13% to investors.
Origin Energy reported September 2020 quarter production was stable compared to the prior quarter, with higher operating production offset by reduced non-operated production due to planned maintenance. Origin has reaffirmed its FY2021 guidance. With electricity demand set to rise and the firm’s halted expansion project estimated to resume soon, Origin Energy is one of the best ASX stocks for a post covid world.
Coal is not finished just yet. Yes, renewables are the future, however, coal still has a vital role to play while the shift towards renewable energy is made in the following decades. This gives plenty of room for investors to take advantage of the high coal prices and increased economic activity increasing the demand for the highly controversial commodity. WHC has performed well off late and we even have our analysts following it religiously. The news of a vaccine and countries starting to recover from the pandemic has added tailwinds to the business and this looks like a top ASX share to hold on to as a part of your portfolio.
Its vital to start thinking about entering the stock markets as we move away from the pandemic and it looks like we will be stuck with low interest rates for the next couple of years. Shares in Value can help assist you make informed decisions when picking stocks.