ASX Stocks That Became 10x Multibaggers

Achieving a tenfold return on an investment, known as a “10-bagger,” is a significant milestone for any investor. On the Australian Securities Exchange (ASX), several companies have reached this benchmark, offering valuable insights into the characteristics of high-performing stocks.

What Is a 10-Bagger?

A “10-bagger” refers to a stock that has appreciated ten times its original purchase price. This term, popularized by renowned investor Peter Lynch, signifies a 1,000% return on investment. Identifying such stocks requires thorough research, patience, and a long-term investment perspective.

Notable ASX 10-Baggers

Between 2013 and 2023, several ASX-listed companies achieved 10-bagger status:

• Pilbara Minerals Ltd (ASX: PLS)

A lithium-tantalum producer, PLS experienced a staggering 35,330% increase in share price, driven by the global demand for lithium in electric vehicles.

• Liontown Resources Ltd (ASX: LTR)

Specializing in lithium exploration, LTR saw its shares rise by 18,040% over the decade.

• Pro Medicus Ltd (ASX: PME)

A healthcare imaging IT provider, PME achieved a 13,170% gain, reflecting its successful expansion and technological advancements.

• Bellevue Gold Ltd (ASX: BGL)

Focused on gold exploration, BGL’s shares increased by 5,210%, benefiting from favorable gold market conditions.

• Capricorn Metals Ltd (ASX: CMM)

Another gold miner, CMM experienced a 4,450% rise, highlighting the potential in the mining sector.

These examples illustrate the significant returns possible in sectors like mining and healthcare, where innovation and global demand drive growth.

Key Factors Behind Their Success

Several common elements contributed to these companies’ impressive performances:

• Sector Trends

Companies in booming sectors, such as lithium for electric vehicles and healthcare technology, benefited from increased demand.

• Strategic Management

Effective leadership and strategic decisions, including timely acquisitions and expansions, played crucial roles.

• Innovation

Investing in research and development allowed these companies to stay ahead of competitors and meet emerging market needs.

• Global Expansion

Tapping into international markets provided additional revenue streams and growth opportunities.

Lessons for Investors

Investors aiming to identify potential 10-baggers should consider the following:

• Long-Term Perspective

Significant returns often require years to materialize, emphasizing the importance of patience.

• In-Depth Research

Understanding a company’s fundamentals, industry position, and growth prospects is essential.

• Risk Management

Diversifying investments and being prepared for volatility can help mitigate risks associated with high-growth stocks.

• Staying Informed

Keeping abreast of industry trends and company developments enables timely investment decisions.

Conclusion

The ASX has been home to several remarkable 10-bagger stocks over the past decade. By studying these success stories, investors can glean insights into identifying and nurturing high-potential investments. While past performance doesn’t guarantee future results, the principles underlying these companies’ growth can serve as valuable guides for aspiring investors.

Disclaimer:

Pristine Gaze Pty Ltd trading as Pristine Gaze (ABN 66 680 815 678) and (ACN 680 815 678) is a Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757). The information provided is general information only. Any advice is general advice only. No consideration has been given or will be given to individual objectives, financial situation, or specific needs of any particular person or organisation. The decision to engage our services and the method selected is a personal decision and involves inherent risks, and you must undertake your own investigations and obtain independent advice regarding suitability for your circumstances. Past performance, examples, or projections are not indicative of future results. While we strive to provide accurate information, we make no guarantees regarding the accuracy or completeness of our materials. The website may also contain links to third-party websites or resources, for which Pristine Gaze is not responsible. All content and intellectual property on the Pristine Gaze website, including but not limited to text, graphics, logos, and images, are the property of Pristine Gaze and are protected by applicable copyright and trademark laws. By accessing or using the Pristine Gaze website, you acknowledge and agree to the terms of this disclaimer. Please read our Terms and Conditions, Privacy Policy and Financial Service Guide for further information. Please read our Terms and Conditions, Privacy Policy and Financial Service Guide for further information.

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ASX All Ords Stock Spikes on Takeover News

One ASX All Ords stock is breaking away from the broader market trend today after a major acquisition announcement.

In morning trade, Smartpay Holdings Ltd (ASX: SMP) surged 12% to $1.05—even as the All Ordinaries index slipped 0.95%.

What’s Behind Smartpay’s Share Price Jump?

Investors are piling into Smartpay after it announced a takeover deal with US-based fintech company Shift4 Payments.

Shift4 is a global payments platform that processes over US$260 billion annually, serving more than 200,000 customers across 45+ countries and 100+ payment methods.

Under a new scheme implementation agreement, Shift4 will acquire all shares of Smartpay for NZ$1.20 (A$1.11) per share in cash. This values Smartpay at roughly A$274 million in equity and A$283 million in enterprise value.

A Premium Worth Noticing

The deal price represents a 46.5% premium to Smartpay’s 90-day volume-weighted average price (VWAP) of NZ$0.82. That’s an acquisition multiple of 14.2x Smartpay’s FY25 normalised EBITDA, excluding New Zealand investment costs.

Shift4 has labeled this offer as its “best and final price”, unless a competing bid appears.

The Smartpay board has unanimously endorsed the deal, subject to:

• An independent expert confirming it’s in the best interest of shareholders
• No competing superior offers

Smartpay’s largest shareholder, Microequities Asset Management (ASX: MAM), which owns about 13.3% of the stock, has voiced full support and intends to vote in favour.

Leadership Comments on the Deal

CEO Marty Pomeroy said:

“Smartpay remains focused on being the payments partner of choice, investing and adding scale to our existing Australian and New Zealand business. The proposed transaction, if completed, will see Shift4 partner with Smartpay to deliver an enhanced value proposition to our customers, employees and other stakeholders while delivering immediate and derisked value to our current shareholders.”

This confidence is helping position Smartpay among the top stocks to look out for on the ASX right now.

What’s Next for the Takeover?

The deal still needs to pass key conditions, including:

• Shareholder approval
• Clearance under the NZ Overseas Investment Act
• Final green light from the NZ High Court

A special shareholder meeting is expected in Q3 2025 to vote on the scheme.

Meanwhile, the news has rattled competitors. Tyro Payments Ltd (ASX: TYR) shares are sliding today. Tyro had previously submitted its own NZ$1.20 bid for Smartpay, but Shift4 seems to have edged it out with better terms and stronger backing.

With this development, Smartpay is now firmly on the radar among active ASX All Ords traders and those watching the ASX tech and fintech sectors for momentum plays and merger-driven gains.

This could mark the start of further consolidation moves in the space—making it one of the ASX stories to track closely in the months ahead.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

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US Strikes Iran: Oil Surges, Markets Tumble — Is This a Buying Moment for ASX Investors?

Tensions in the Middle East have once again spilled over into global financial markets.

Following a US military strike on Iran over the weekend, the S&P/ASX 200 Index (ASX: XJO) has taken a hit, dropping 0.63% and falling back below the 8,500-point mark.

While geopolitical conflict is always tragic, investors are right to ask: What does this mean for markets in the days ahead? And more importantly — could this moment present an opportunity for long-term Australian investors?

Initial Market Reaction: A Global Shakeup

The ASX market downturn on Monday reflects investor anxiety over possible economic fallout, especially through energy markets. While the full impact on Wall Street won’t be known until US markets open later tonight, early commentary is already predicting major tremors.

According to the Australian Financial Review’s Chanticleer column, BCA Research chief strategist Marko Papic warns that the S&P 500 could drop by as much as 10%, citing a surge in oil prices as the main driver.

Why Oil Prices Could Keep Climbing

Before the conflict escalated, West Texas Intermediate (WTI) crude oil was hovering around US$60 a barrel. Since the US strike, prices have jumped to over US$75, and Papic believes they could reach US$85 in the coming days.

That’s a significant shift, especially considering that markets had already priced in lower oil values.

But things could get worse if Iran chooses to retaliate in a way that disrupts global oil supply.

One of the biggest concerns right now is the Strait of Hormuz, a narrow but critical shipping lane bordering Iran. Around 20% of the world’s oil supply flows through this strait. If Iran halts tanker traffic in the region, it could trigger a major supply shock — and send oil prices soaring.

Is This a Buying Opportunity for ASX Investors?

Market volatility often rattles short-term traders, but seasoned investors know that uncertainty can breed opportunity.

Increased oil prices could benefit ASX energy stocks and mining companies in Australia with oil-linked exposure. At the same time, a broader pullback in global equities could offer attractive entry points into quality ASX stocks to look out for in 2025.

Defensive sectors such as healthcare, utilities, and select mining stocks may hold up better if global uncertainty lingers.

It’s also worth watching gold, which often rallies during geopolitical crises — giving ASX gold stocks a potential boost.

What Comes Next?

Markets hate uncertainty, and this situation remains highly fluid.

If tensions escalate or oil supply chains are interrupted, we could see further sell-offs and spikes in commodities.

But if diplomatic channels prevail and oil disruptions remain contained, much of the fear-driven selling could reverse just as quickly.

For now, ASX investors would be wise to stay informed, keep emotions in check, and look beyond the headlines for well-valued opportunities amid the noise.

This is one of those rare moments where watching the markets closely may reward the patient and the prepared.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

 

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Where Smart Money Is Going in Australia Today: The Sectors and Stocks You Need to Watch

In today’s market—where headlines shout louder than fundamentals—savvy investors are stepping back from the hype. They’re not chasing short-term fads anymore. Instead, they’re asking the big question:
 Where’s the smart money going?

Right now, it’s flowing toward stability. Toward resources. Toward value-backed Aussie stocks with long-term growth potential and real global relevance.

From energy to infrastructure, certain sectors are magnetizing big capital—both institutional and retail. If you’re wondering where to invest in Australia right now, here’s your roadmap.

Why the Smart Money Shift Matters

Smart money isn’t about luck or hype—it’s about patterns, insight, and data-backed decisions.
These investors—think pension funds, hedge funds, and top-tier analysts—dig deeper. They look past the daily volatility to spot long-term stocks with staying power.

And right now, their eyes are set firmly on energy.

Why?

Because despite the world’s shift toward clean energy, traditional fuels—especially natural gas—are still very much in play. In fact, they’re essential in bridging the gap toward renewables. This is pushing capital back into an unexpected sector: energy.

Energy Stocks Are Back in the Spotlight

You might be surprised. Weren’t oil and gas yesterday’s news?

Not exactly.

• Global LNG demand is rising, especially from Asia.
• Geopolitical instability is making nations prioritize energy security.
• Oil prices remain firm, and Australian LNG contracts offer long-term stability.

So, which top ASX stocks are catching the smart money’s attention?

Let’s explore two names that are climbing investor watchlists—quietly but confidently.

 1. Woodside Energy (ASX: WDS)

The Smart Energy Giant with a Vision

Woodside isn’t just another oil & gas stock—it’s Australia’s largest independent energy company and a key global LNG supplier. But what’s most impressive is how it’s managing today while preparing for tomorrow.

FY24 Performance Snapshot:

Revenue: A$21 billion

Net Profit: A$5.42 billion

Dividend: A$0.849/share (7.4% yield)

P/E Ratio: 9.16 (value territory)

These aren’t just strong numbers—they’re a signal. While markets wobble, Woodside remains a cash-generating machine, supported by robust oil prices and long-term LNG contracts.

But there’s more.

Woodside’s Scarborough project is one of Australia’s largest resource developments, poised to increase LNG output significantly. Plus, the company is investing in low-carbon solutions, including hydrogen and carbon capture, as part of its energy transition strategy.

Why Smart Money Likes WDS:

Strong dividend and undervaluation

Global LNG exposure

Scalable infrastructure and energy transition roadmap

If you’re on the hunt for the best shares to buy right now in Australia, Woodside deserves serious attention. It ticks both income and growth boxes.

 2. Beach Energy (ASX: BPT)

The Underdog Building Quiet Momentum

Beach Energy might not get the same headlines as Woodside—but behind the scenes, it’s becoming a smart money favorite. Why? Solid assets, bold infrastructure investments, and exposure to high-potential gas plays.

FY24 Snapshot:

Revenue: A$1.8 billion

P/E Ratio: 32.96 (growth premium)

Dividend: $0.03/share (3.85% yield)

Beach operates across Australia and New Zealand, exploring and producing gas in strategic basins. The company is aggressively investing in expansion projects, such as the Waitsia gas development—one of the country’s most significant domestic gas undertakings.

Waitsia is expected to enhance production capacity and improve earnings visibility, which has made institutions take note.

Why BPT Is Catching Attention:

Strong position in domestic and export gas

Ongoing investment in scalable infrastructure

Attractive for long-term energy demand growth

For investors who want exposure to share market picks within Australia’s energy ecosystem—Beach Energy offers both speculative upside and strong fundamentals.

 What the Smart Money Is Thinking

Here’s the deal:

 Energy is no longer just a defensive play—it’s becoming an offensive one. The sector offers real cash flows, global relevance, and future adaptability.

 ASX energy companies like WDS and BPT are not just oil plays—they’re evolving to meet the future, while delivering returns today.

 With global instability, investing in Australia—especially in real asset-based businesses—offers both safety and upside.

When you combine solid numbers with strategic execution, you get long term stocks that the smart money loves.

 Final Thoughts: Follow the Fundamentals, Not the Noise

In 2025, smart money isn’t chasing what’s loud—it’s investing in what lasts. And Australia’s energy sector is making a compelling case for both stability and strategic growth.

Whether you’re a seasoned investor or just starting to explore aussie stocks, the message is clear:

Look for cash-generating businesses
Prioritize strategic expansion over speculative hype
Align with sectors backed by long-term global demand

And in doing that, you’ll likely end up where the smart money already is.

 

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculativ
e mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

 

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Top ASX Stocks for Long-Term Investment

Investing in the Australian Securities Exchange (ASX) offers a plethora of opportunities for those seeking long-term growth and stability. As of May 5, 2025, several stocks stand out due to their robust fundamentals, consistent performance, and promising future prospects. This article delves into some of these top ASX-listed companies that are well-suited for long-term investment.

CSL Limited (ASX: CSL)

CSL Limited is a global biotechnology company that develops and delivers innovative biotherapies and influenza vaccines. With a strong R&D pipeline and a presence in over 60 countries, CSL has consistently demonstrated resilience and growth.

Key Highlights:

• Global Reach: Operations in over 60 countries, catering to various therapeutic areas.
• Strong Financials: Consistent revenue growth and solid profit margins.
• Innovative Pipeline: Continuous investment in research and development ensures a steady flow of new products.

CSL’s commitment to innovation and global expansion makes it a compelling choice for long-term investors.

Commonwealth Bank of Australia (ASX: CBA)

As one of Australia’s “Big Four” banks, the Commonwealth Bank boasts a vast customer base and a diversified portfolio of financial services. Its strong capital position and focus on digital transformation have positioned it well for future growth.

Key Highlights:

• Market Leadership: Dominant position in retail banking and wealth management.
• Digital Innovation: Significant investments in technology to enhance customer experience.
• Stable Dividends: A history of consistent dividend payouts, appealing to income-focused investors.

CBA’s robust financial health and strategic initiatives make it a solid pick for those seeking stability and growth.

BHP Group Limited (ASX: BHP)

BHP is a leading global resources company, extracting and processing minerals, oil, and gas. Its diversified portfolio and commitment to sustainable practices have ensured its prominence in the industry.

Key Highlights:

• Diversified Operations: Engagement in various commodities, reducing dependency on a single resource.
• Strong Balance Sheet: Prudent financial management and low debt levels.
• Sustainability Focus: Initiatives aimed at reducing environmental impact and promoting responsible mining.

BHP’s global footprint and emphasis on sustainability make it an attractive option for long-term investors.

Wesfarmers Limited (ASX: WES)

Wesfarmers is a diversified conglomerate with interests spanning retail, industrial, and resources sectors. Its portfolio includes well-known brands like Bunnings, Kmart, and Officeworks.

Key Highlights:

• Diversified Portfolio: Exposure to multiple sectors mitigates risk.
• Strong Retail Presence: Ownership of leading retail chains ensures steady revenue streams.
• Strategic Investments: Continuous evaluation and acquisition of businesses to drive growth.

Wesfarmers’ diversified operations and strategic approach position it well for sustained long-term performance.

Telstra Group Limited (ASX: TLS)

Telstra is Australia’s largest telecommunications company, offering a range of services including mobile, internet, and pay television. Its extensive network infrastructure and focus on innovation have solidified its market leadership.

Key Highlights:

• Extensive Network: Comprehensive coverage across Australia, ensuring service reliability.
• Innovation Drive: Investments in 5G and other emerging technologies.
• Consistent Dividends: A track record of regular dividend payments.

Telstra’s commitment to technological advancement and customer service makes it a dependable choice for long-term investors.

Final Thoughts

Investing in the ASX offers numerous opportunities for those aiming for long-term growth and income. Companies like CSL, CBA, BHP, Wesfarmers, and Telstra have demonstrated resilience, innovation, and consistent performance, making them worthy considerations for any long-term investment portfolio. As always, it’s crucial to conduct thorough research and consult with financial advisors to align investments with individual financial goals and risk tolerance.

Disclaimer: Pristine Gaze Pty Ltd trading as Pristine Gaze (ABN 66 680 815 678) and (ACN 680 815 678) is a Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757). The information provided is general information only. Any advice is general advice only. No consideration has been given or will be given to individual objectives, financial situation, or specific needs of any particular person or organisation. The decision to engage our services and the method selected is a personal decision and involves inherent risks, and you must undertake your own investigations and obtain independent advice regarding suitability for your circumstances. Past performance, examples, or projections are not indicative of future results. While we strive to provide accurate information, we make no guarantees regarding the accuracy or completeness of our materials. The website may also contain links to third-party websites or resources, for which Pristine Gaze is not responsible. All content and intellectual property on the Pristine Gaze website, including but not limited to text, graphics, logos, and images, are the property of Pristine Gaze and are protected by applicable copyright and trademark laws. By accessing or using the Pristine Gaze website, you ac
knowledge and agree to the terms of this disclaimer. Please read our Terms and Conditions ,Privacy Policy and Financial Service Guide for further information. Please read our Terms and Conditions, Privacy Policy and Financial Service Guide for further information.

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Are ASX Defence Stocks the Next Big Opportunity?

ASX defence stocks might be flying under the radar, but analysts believe they could be the next big investment opportunity.

At the recent ASX Investor Day in Sydney, industry experts highlighted the significant tailwinds driving the defence sector globally. The growing consensus is that a worldwide boost in defence spending is reshaping how investors view mining stocks and industrial equities tied to security and military contracts.

Why is Defence Gaining Investor Interest?

Analysts cited several macroeconomic and geopolitical reasons behind this emerging trend:

• Many governments are increasing military budgets due to concerns over the US’s shifting foreign policy.
• The US has urged NATO allies to spend up to 5% of GDP on defence.
• China and Russia’s growing alliance is prompting neighbouring countries to fortify their military capabilities.

Amid these dynamics, Australia’s role in international defence alliances like AUKUS has also come into sharper focus. The US is currently reviewing its commitment under this agreement, urging Australia to step up its military expenditure.

Let’s now explore one ASX-listed defence company and two newly launched defence ETFs that are gaining investor traction.

Austal Ltd (ASX: ASB)

Established in 1988, Austal is a Perth-based shipbuilder serving major navies around the world. Its operations span the US, Vietnam, the Philippines, and Australia.

The Austal share price recently hit an all-time high of $6.38, reflecting increased investor confidence and market momentum. Over the last year, the stock has surged 167%, vastly outperforming many other ASX industrial and defence shares.

Recent excitement stemmed from reports that a South Korean company is seeking to increase its stake in Austal. The company is also set to join the S&P/ASX 200 Index in the June rebalance.

Macquarie has rated Austal as “Outperform,” though the current share price is above their latest 12-month target of $4.75.

VanEck Global Defence ETF (ASX: DFND)

Launched in September 2024, the VanEck Global Defence ETF has delivered a 68.22% return since inception. Trading near its all-time high, the ETF tracks the MarketVector Global Defence Industry Index.

Key facts:

• 29 global holdings
• 2% exposure to US stocks
• Sector allocation: 68.8% aerospace & defence, 19.6% professional services, 10.3% software

Top holdings include:

• Palantir Technologies
• Leonardo SpA
• RTX Corp
• Thales SA
• Hanwha Aerospace (which is also linked to Austal)

The ETF has a management fee of 0.65% and distributes dividends annually.

Betashares Global Defence ETF (ASX: ARMR)

Another entrant in the ASX ETF space is Betashares ARMR, launched in October 2024. It has delivered a 52.12% return to date and is also trading near a record high.

ARMR tracks the VettaFi Global Defence Leaders Index and provides exposure to up to 60 companies deriving over half their revenue from defence technology or equipment.

Highlights:

• 7% sector allocation to aerospace & defence
• 5% of holdings in US stocks
• 55% management fee

Top holdings include:

• Rheinmetall AG
• Palantir Technologies
• BAE Systems
• Safran SA
• Raytheon Technologies

Final Thoughts

Increased global defence spending could be a strong tailwind for both individual defence companies like Austal and sector-specific ETFs like DFND and ARMR. With growing geopolitical tensions and rising military budgets, ASX defence stocks might soon become core components of diversified portfolios.

As you explore stocks to look out for in the current market, consider adding mining companies in Australia that support the defence sector or directly benefit from increased government contracts and capital expenditure.

 

Disclaimer

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd

(ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative

(CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and

regulated by the Australian Securities and Investments Commission under the

Corporations Act 2001 (Cth). This report contains general financial product advice only

and has been prepared without consideration of your personal objectives, financial

situation, specific needs, circumstances, or investment experience. The information is

not tailored to individual circumstances and may not be suitable for your particular

situation. Before acting on any information contained herein, you should carefully

consider its appropriateness having regard to your personal objectives, financial

situation, and needs, and consider seeking personal financial advice from a qualified

financial adviser who can assess your individual circumstances and provide tailored

recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and

different investment strategies may carry varying levels of risk exposure including total

loss of invested capital. The value of investments and income derived from them can

fluctuate significantly due to market conditions, economic factors, company-specific

events, regulatory changes, commodity price volatility, currency fluctuations, interest

rate movements, and other factors beyond our control. Securities markets are subject

to market risk from general economic conditions and investor sentiment, liquidity risk

affecting the ability to buy or sell securities at desired prices, credit risk from issuer

default or deterioration, operational risk from inadequate internal processes,

sector-specific risks including industry regulatory changes, technology obsolescence,

management changes, competitive pressures, supply chain disruptions, and

mining-specific risks including resource estimation uncertainty, operational hazards,

environmental compliance, permitting delays, commodity price cycles, geopolitical

factors affecting mining operations, and exploration risks. Small-cap and speculative

mining stocks carry additional risks including limited liquidity, higher volatility,

dependence on key personnel, limited operating history, uncertain cash flows, and

potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information

accuracy and reliability, we make no representations or warranties (express or implied)

regarding the accuracy, reliability, completeness, timeliness, or suitability of information

provided, except where liability cannot be excluded under applicable law. This report

may include information from third-party sources including company announcements,

regulatory filings, research reports, market data providers, financial news services, and

publicly a
vailable information, which we do not independently verify and for which we

 

assume no responsibility. Past performance, examples, historical data, or projections are

not indicative of future results, and no guarantee of future returns is provided or

implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha

Securities Pty Ltd, together with their respective directors, officers, employees,

representatives, and related entities, exclude all liability for any errors, omissions,

inaccuracies, loss or damage (including direct, indirect, consequential, or special

damages) arising from reliance on information provided, investment decisions made

based on this report, market losses, opportunity costs, and technical issues or system

failures.

Distribution and Regulatory Compliance: This report is prepared for distribution

within Australia only to wholesale and retail clients and must not be distributed to

investors outside Australia without appropriate regulatory approvals and compliance

with applicable foreign laws. Information contained herein may not be suitable for

investors in other jurisdictions due to different regulatory requirements, market

conditions, tax implications, or investment practices. Recipients are responsible for

ensuring their receipt and use of this information complies with all applicable laws and

regulations in their jurisdiction. This report does not constitute an offer to sell or a

solicitation to buy securities in any jurisdiction where such offer or solicitation would

be unlawful.

No Contractual Obligations: Nothing contained in this report shall create, evidence, or

constitute any agreement, contract, or binding obligation between Pristine Gaze Pty

Ltd, Alpha Securities Pty Ltd, or their respective related entities with the recipient or

any third party. No contractual obligations shall arise from this report unless a formal

written agreement is executed by authorised signatories following appropriate legal

review. Individual employees and representatives do not have authority to bind either

entity to contractual obligations through this report or related communications.

Privacy and Data Protection: Our collection, use, and disclosure of personal

information is governed by our Privacy Policy available at www.pristinegaze.com.au and

complies with the Privacy Act 1988 (Cth) and applicable privacy principles. We may

retain copies of this report and related communications for record-keeping,

compliance, and business purposes in accordance with document retention policies and

regulatory requirements.

Complaints and Contact Information: For questions regarding this disclaimer, our

services, or to make a complaint, contact Pristine Gaze Pty Ltd at Ground Floor/470 St

Kilda Rd, Melbourne VIC 3004, telephone 0489 990 844, email

[email protected], or Alpha Securities Pty Ltd at Level 14, 5 Martin Place, Sydney

NSW 2000, telephone 1300 316 357, email [email protected]. If unsatisfied

with our complaint response, you may refer matters to the Australian Financial

Complaints Authority at www.afca.org.au, email [email protected], telephone 1800 931

678, or mail GPO Box 3, Melbourne VIC 3001.

 

 

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