In 2024, the ASX200 hit record highs, the RBA left rates at decade highs, supermarkets came under scrutiny, and retailers enjoyed a surprisingly good year. This combined made for a decent year for the local market, while overseas US stocks have seen some of their best years in history. Heading into 2025, investors face a new landscape shaped by macroeconomic factors, with inflation easing and rate cuts on the horizon. The next year offers both opportunities and uncertainties. Here are a few stocks to keep an eye on as we head into the New Year.
Apple
Apple was dethroned as the world’s largest stock in 2024 by Nvidia. It was the second worst performer of the Magnificent Seven, but it still returned over 32%, which shows how ‘Magnificent’ these seven stocks really are. Apple struggled throughout 2024 with slowing iPhone sales, and billionaire investor Warren Buffet continued to trim his outsized stake in the firm. But 2025 could be a far better year for the iPhone maker. The rollout of Apple Intelligence, Apple’s answer to AI, could drive a new upgrade cycle in the year ahead, helping to propel growth in its iPhone segment that it lacked in 2024. Apple has been laying the groundwork for its AI strategy over the last few years, and it will take time to come to fruition, but investors will start to see early signs of that next year. AI will go through Apple’s ecosystem, and with over 20% of the world’s population interacting with AI on an Apple device in the next few years, there’s a lot of potential ahead.

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ResMed
ResMed is a global blue-chip healthcare company that rallied over 48% in 2024. The company dominates the sleep apnea market with significant growth potential as the condition remains widely untreated globally. The domination of that market comes from a serious lack of competition that gives it further room to run in 2025. Its valuation remains fair at 25x earnings, lower than that of Commonwealth Bank as earnings continue to grow. The business generates over USD$1.3 billion in free cash flow each year, has very little debt, and continues to grow margins. According to a study by McKinsey, sleep wellness is one of the growing trends in the wellness market, with consumers’ desire for a good night’s sleep growing. With fears diminishing from GLP-1 drugs and awareness of sleep apnea growing, ResMed looks to have a lot of momentum, helping investors to rest easier.

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BHP
It’s one of the largest mining stocks in the world and is a powerhouse business, but it has struggled in 2024 as iron ore prices have slumped. But, with a potential stimulus package from China early next year, investors should have a little more optimism for the miner in 2025. To add to that optimism, the average crude steel output in the nation during the first 20 days of November reached the highest for that time of year since 2020, according to data from the China Iron and Steel Association. BHP continues to grow its production, but that production needs to be matched by demand from China. If that demand is met and prices rise, alongside higher production, BHP will be sitting much prettier come the end of 2025. Let’s not forget that the mining giant still pays a gross dividend of almost 8%, an excellent income return.
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CSL Ltd
One of Australia’s healthcare darlings, CSL, underperformed in 2024, finishing the year basically flat. It had a lacklustre year for a few reasons. CSL’s acquisition of Vifor Pharma focused on iron deficiency treatments, has underperformed expectations, hurting its earnings. Regulatory issues over manufacturing flagged by US authorities have also impacted the company’s pipeline progress. However, shares are now trading at their lowest valuation since 2023 at 26x forward earnings and well below their 10-year average. Positives for the new year include its new ‘Rika’ system, which is helping to drive plasma collection while decreasing the time needed to collect donations, which should help margins. That could mark an opportunity for investors and analysts to agree with 15 buy ratings and 3 holds, with an average price target of AUD$330, signalling over 17% upside. Earnings are set to grow by over 22% in 2025, the fastest growth since 2018.

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