The 11 top-returning ASX 200 stocks of FY24 (across each sector)

Following a trend that rolled out across developed markets, Technology was Australia’s top-performing sector in FY24. Locally, this was followed by Financials, Consumer Discretionary, Real Estate, Healthcare and Utilities – all of which ended the 12-month period in positive territory.

Among those that ended the financial year with negative returns, the “least worst” was the Industrials sector. Things look progressively worse across Telecommunications, Materials, Energy and Consumer Staples, all of which ended FY24 in the red.

Digging deeper, in the following wire, we look at which ASX 200 company was the top performer in each sector. In most cases, they’ve featured among recent commentary from one or more professional investors on Livewire Markets. Where possible, we also bring you some broker views on the companies.

Note: The following information is based on backward-looking data and is intended as general information only. This list of companies should not be considered as financial advice; before making any investment decision, you should do your own research and consult an investment professional.

Information Technology

Life360 (ASX: 360)

• 1-year return: 108.5%
• Market cap: $3.5 billion
• Market Index Broker Consensus: STRONG BUY (4 Buy, 0 Hold, 0 Sell)

Life360 was the top-performing ASX 200 company in FY24, as highlighted by my colleague Kerry Sun this week. Its cross-listing on the NASDAQ index in early June is the biggest recent news for the location-based technology services firm. But before that, the company’s share price soared 40% in a single day on 1 March, on the back of its above-consensus full-year earnings result and management’s upgraded guidance.

The company was recently highlighted as a high-conviction stock pick by Solaris Portfolio Manager Michael Bell. Ahead of his Pinnacle Investment Summit presentation, Bell said: “Combined with expansion into Europe and beyond, Life360 is set for substantial growth in earnings.”

What the brokers think

Morgan Stanley rates Life360 as OVERWEIGHT. It was discussed among several other ASX tech firms in a Morgan Stanley deep dive on local AI-exposed companies. Placing it in a “data ownership” category, analysts said: “We expect the data insights to become more granular over time…[and] see significant potential in terms of both monetisation and user experience of consumers being served compelling offers.”

UBS carries a NEUTRAL rating on the company, with a price target of $32.

Learn more about this company on Market Index.

Financials

GQG Partners (ASX: GQG)

• 1-year return: 96.8%
• Market cap: $8.2 billion
• Market Index Broker Consensus: STRONG BUY (3 Buy, 0 Hold, 0 Sell)

In Livewire’s most-read article of 2024 so far, ASX-listed global equities fund manager GQG Partners was one of two stocks discussed last month by Centennial Asset Management’s Michael Carmody. “Compared to the outlook and the market, we see the company as being inexpensive and expect the aligned management team to deliver share price outperform in the current environment,” he wrote on 11 June.

GQG was also cited as a high-conviction stock pick by 1851 Capital’s Chris Stott, during a Rules of Investing interview in May.

What the brokers think

Goldman Sachs rated GQG as a BUY with a price target of $2.40 as of 19 February.

Macquarie rated the company OUTPERFORM with a price target of $2.25 on 25 January.

Learn more about this company on Market Index.

Consumer Discretionary

Lovisa Holdings (ASX: LOV)

• 1-year return: 58.1%
• Market cap: $3.4 billion
• Market Index Broker Consensus: BUY (2 Buy, 4 Hold, 0 Sell)

The “fast fashion” jewellery retailer made financial press headlines last month with the news its high-profile CEO Victor Herrero would be replaced by John Cheston. Cheston was poached from Solomon Lew’s stable of retail brands, having previously headed Smiggle.

Tribeca’s Jun Bei Liu singled out Lovisa as one of the highest-quality small-cap stocks on the ASX during a Buy Hold Sell episode at the end of May. 

“The rollout has been quite incredible in the US and it has also now started going into Asia. This company will deliver very good growth for many years to come,” she said.

What the brokers think

In mid-June, several brokers including Canaccord Genuity, Evans and Partners, Morgan Stanley and Barrenjoey downgraded their ratings from Buy to Neutral, as my colleague Kerry Sun wrote.

Learn more about this company on Market Index.

Real Estate

HMC Capital (ASX: HMC)

• 1-year return: 39.8%
• Market cap: $2.6 billion
• Market Index Broker Consensus: HOLD (2 Buy, 2 Hold, 1 Sell)

A fund manager focused on Alternatives including real assets, HMC Capital manages properties for several well-known Australian retailers including Baby Bunting. The company was named as a growth stock to watch over the next five years by OC Funds Management’s Aaron Yeoh, during Livewire’s Buy Hold Sell in May. 

“The company's got a medium-term target to double its AUM to $20 billion over the medium-term,” Yeoh said. “We think the market is underestimating the timeframe to get there. We think HMC can grow well north of 20% per annum over the next three to five years. So yeah, strong buy from us.”

Learn more about this company on Market Index.

Healthcare

Clarity Pharmaceuticals (ASX: CU6)

• 1-year return: 577%
• Market cap: $1.6 billion

A biotech company that develops imaging products, Clarity Pharmaceuticals was named a compelling growth stock by Datt Capital’s Emanuel Datt in May.

“It ticks all our boxes in terms of the ability to grow rapidly through de-risking over time through the various clinical trials, as well as significant partnerships potentially,” Datt said during a Buy Hold Sell interview.

The company was also called out as one of the fastest-growing stocks in its sector by Independent Investment Research’s Claire Aitchison last month.

Learn more about this company on Market Index.

Utilities

Origin Energy (ASX: ORG)

• 1-year return: 29.1%
• Market cap $18.8 billion
• Market Index Broker Consensus: STRONG BUY (5 Buy, 1 Hold, 0 Sell)

A diversified energy company that operates across each of the downstream, mid-stream and distribution parts of the value chain, Origin was one of just a few portfolio holdings discussed by income-focused portfolio manager Dr Don Hamson recently.

Noting the firm’s gas production and power generation businesses have been doing well, alongside the ongoing energy demand outlook, “they've had their tough times, but I think it's going to do pretty well for the next five years.”

Origin also surfaced as a standout in some analysis conducted by Livewire’s Carl Capolingua, one of a few among the ASX’s most consistent dividend payers displaying “nice grossed-up yield uptrends.”

Learn more about this company on Market Index.

Industrials

Ventia Services Group (ASX: VNT)

• 1-year return: 28.3%
• Market cap: $3.4 billion

An infrastructure services company operating primarily in Australia and New Zealand, Ventia operates, maintains and manages various public and private assets. It spans a diverse range of essential industries including defence, education, energy, transport and mining.

Ventia was named as a potential dividend stock to watch by Martin Currie’s Reece Birtles, during an interview with Livewire’s Chris Conway in mid-June.

What the brokers think

Canaccord Genuity rates Ventia as BUY, with a price target of $4.40 as of 1 July.

CLSA downgraded the company to OUTPERFORM from Buy on 31 October.

Learn more about this company on Market Index.

Telecommunications

Tuas Limited (ASX: TUA)

• 1-year return: 109.8%
• Market cap: $2 billion

Spun out of TPG Telecom after its merger with Vodafone Australia in mid-2020, Tuas comprises the former economic interests of TPG Singapore. It is headed up by David Teoh, who founded TPG Australia.

Tuas has long been a favourite of small-cap specialist Callum Newman from Fat Tail Investment Research. In late March, he noted the company was up 220% since he first recommended it a year earlier.

Learn more about this company on Market Index.

Materials

RED 5 (ASX: RED)

• 1-year return: 87.5%
• Market cap: $2.5 billion

Ranking #3 in the ASX 200’s best performing stocks during FY2024, West Australian gold miner Red 5 recently scaled-up with the $2.2 billion acquisition of competitor Silver Lake Resources – a deal that was announced in February and finalised in late May.

What the brokers think

Macquarie rates RED as OUTPERFORM with a price target of 50 cents as of 17 June.

Moelis Australia rates the company as BUY with a price target of 40 cents as of 4 March.

Learn more about this company on Market Index.

Energy

Paladin Energy (ASX: PDN)

• 1-year return: 67.3%
• Market cap $3.7 billion
• Market Index Broker Consensus: STRONG BUY (3 Buy, 0 Hold, 0 Sell)

Uranium bulls lauded the miner’s recent $1.25 billion bid to acquire Canada’s Fission Uranium Corp. 

Morgan Stanley analysts this week reaffirmed their OVERWEIGHT rating for Paladin Energy, with a $16.65 price target.

Citi analysts said, “For the uranium bulls, as we are, this transaction looks attractive as it could lift our Paladin Energy NPV ~37% to ~$21.7 per share using our base case long-term uranium forecast of US$115/lb.”

Learn more about this company on Market Index.

Consumer Staples

A2 Milk Company (ASX: A2M)

• 1-year return: 32.3%
• Market cap: $4.8 billion

A New Zealand-founded dairy products company, A2 Milk is heavily reliant on its infant formula business, which is particularly strong in China. Wilson Asset Management’s Tobias Yao recently explained his thesis on the company – including the massive potential in China, strong brand recognition and robust management.

“With a focus on expanding market share in China and a resilient brand presence, the company is poised for earnings growth and shareholder value appreciation,” Yao said.

What the brokers think

Citi rates A2M as BUY with a $7.85 price target as of 26 June.

Learn more about this company on Market Index.