If you’re looking for the next ASX tenbagger, you won’t find it here. At BlueRock Investments, our approach is about disciplined investing with a long-term view. We grow wealth without exposing our clients to unnecessary risk or excessive fees.
With stock markets at all-time-highs , investor hesitation is understandable. Price-Earnings ratios are elevated and some valuations continue to push above expectations. But diversification, staying invested for the long term and doing your research to understand a company’s future outlook are all traits of successful investors.
So, on that note, here are 5 ASX-listed companies we see as good investments in 2025 and beyond.
Why We Like James Hardie Industries (ASX:JHX)
James Hardie Industries (JHX) is a leading international building materials group which produces a wide range of fibre cement building materials used in the exterior and interior of residential and commercial buildings, from exterior cladding and internal lining to pipes, bracing, decorative elements and fencing. JHX is the dominant manufacturer of fibre cement in the US, Australia, New Zealand and the Philippines.
At their latest update, James Hardie adjusted its full-year guidance, now expecting net income between USD $630m-$700m, with lower capital expenditure of USD $420m-$440m (down from earlier projections of $500m-$550m). Management also announced a new USD $300m share buyback program, following the completion of the prior program, reflecting confidence in the company’s long-term prospects. Looking ahead, James Hardie is poised to benefit from a recovery in US housing construction, supported by potential further interest rate cuts and improving consumer sentiment.
The company’s emphasis on product innovation, pricing power, and market share growth ensures it remains well-positioned for sustained long-term growth. The continuation of its share buyback program highlights its commitment to enhancing shareholder returns even during challenging market periods.
Why We Like Goodman Group (ASX:GMG)
Goodman Group (GMG) owns, develops, and manages industrial properties such as logistics facilities, warehouses, and business parks. They have historically focused on the logistics property space but recently announced plans to expand its focus on the development, construction, and co-ownership of data centres. Goodman Group has maintained its strong momentum, benefiting from continued demand for logistics and data centre assets.
Following its FY24 results, the company reiterated FY25 guidance of 9% growth in operating EPS, with analysts anticipating potential upgrades during the second half of the financial year. Its disciplined approach, founder-led management, and significant alignment of interests with shareholders underscore its long-term growth prospects.
Trading at a slight discount to analyst targets, GMG continues to be a compelling exposure to the growth of both e-commerce and data centres.
Why We Like L1 Long Short Fund (ASX:LSF)
L1 Long Short Fund (LSF) provides investors access to an absolute return fund that offers a highly diversified portfolio of long and short positions based on a fundamental bottom-up research process.
LSF's long-term performance has been very strong with the fund returning 17.3% over the past 5 years. This is compared to the ASX200 accumulation index which has delivered an average return of 8.2% in that period. If you expect markets to be volatile in 2025, this fund can provide some portfolio protection through its short positions.
The fund typically does very well in falling and sideways markets and performs in-line with markets when they are rising.
Why We Like Challenger (ASX:CGF)
Challenger (CGF) specialises in selling annuity products in the Australian and Japanese retirement markets, providing investors with guaranteed regular payments to protect against outliving their savings. The company’s annuity sales, constituting 80% of its yearly Australian sales, are now increasingly diversified across advisor, institutional, and retail channels.
Recent strategic moves, including partnerships with State Street and Accenture, aim to enhance the efficiency and profitability of their fund management division, Fidante Partners. Despite disruptions from the financial advice industry and COVID-19, Challenger's sales have stabilised, reflecting stronger-than-expected quarterly results with a significant uplift in Japanese sales.
The firm's focus on cost efficiency and a growing aging population positions CGF for continued growth. This combined with an outlook for higher interest rates in the coming decade will help make the headline rates available on annuities more attractive. We view it as undervalued given its improving Return on Equity. The market's projected earnings growth appears conservative, making CGF a compelling risk vs reward investment at the current share price.
Why We Like CSL (ASX:CSL)
CSL (CSL) is a global leader in biotechnology, operates mainly through CSL Behring and Seqirus. CSL Behring focuses on treating various medical conditions using plasma-derived proteins or recombinants, covering immunodeficiencies, bleeding disorders, and neurological issues. Seqirus, acquired in 2015, is now the second-largest influenza vaccination business worldwide. CSL Vifor, acquired in 2021, strengthens the firm's expertise in iron deficiency and kidney disease. Despite setbacks, including halted Phase 3 trials and lower-than-expected Vifor therapies performance, CSL's RIKA device is set to improve plasma collection yields.
CEO Paul McKenzie expects double-digit earnings growth, driven by the core blood products business, contingent on returning to pre-COVID performance levels.
Despite recent share price volatility due to US health policy uncertainties, particularly around vaccines, CSL remains robust with an attractive FY26 PE ratio around 25x. With its strong R&D track record and diversified revenue streams, CSL presents a compelling investment case bolstered by its defensive earnings and projected growth.
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Disclaimer: The information in this article is intended as general information only and should not be considered as advice on any matter and should not be relied upon as such. This information has been prepared without taking into account any individual objectives, financial situation or needs. You should therefore consider the appropriateness of the information before acting or seek advice before making any financial decisions.
