You'll find that not everyone's definition of top ASX stocks is the same.
Some investors prefer lower-risk blue-chip stocks, while others are willing to take a punt on higher-risk small-cap growth shares. And, of course, passive income investors tend to prioritise dividends and high-yielding stocks.
But I think we can all agree that owning a company that returns 10 times – or more – our initial investment qualifies as a top ASX stock, especially if these gains are delivered in only 10 years.
You may have heard of this illustrious group of stocks referred to as ten-baggers.
And, according to research from online investment platform eToro, the ASX is one of the best exchanges in the world to find ten-baggers. eToro analysed the returns of ASX companies with a market cap minimum of AU$1 billion and FTSE 350 firms from 2013 to 2023.
The data revealed that the ASX currently boasts 19 ten-baggers, with each top ASX stock posting phenomenal growth over the past decade. That compares to just two ten-baggers on the FTSE 350.
As you might expect in Australia, 12 of the 19 ASX ten-baggers operate in the resource sector. Though you'll also find a few healthcare, finance and tech stocks.
Top ASX stocks with ten-bagger plus gains
Now, you're probably wondering which ASX ten-baggers we're talking about.
So, here's how these top ASX stocks performed from 2013 to 2023:
- Pilbara Minerals Ltd (ASX: PLS) shares gained 35,330%
- Liontown Resources Ltd (ASX: LTR) shares gained 18,040%
- Pro Medicus Ltd (ASX: PME) shares gained 13,170%
- Bellevue Gold Ltd (ASX: BGL) shares gained 5,210%
- Capricorn Metals Ltd (ASX: CMM) shares gained 4,450%
- De Grey Mining Ltd (ASX: DEG) shares gained 3,620%
- Emerald Resources (ASX: EMR) shares gained 3,340%
- HUB24 Ltd (ASX: HUB) shares gained 2,980%
- Stanmore Resources Ltd (ASX: SMR) shares gained 2,410%
- Polynovo Ltd (ASX: PNV) shares gained 2,090%
- Altium (ASX: ALU) shares gained 2,020%
- Gold Road Resources Ltd (ASX: GOR) shares gained 1,990%
- Pinnacle Investment Management Group Ltd (ASX: PNI) shares gained 1,930%
- Genesis Minerals Ltd (ASX: GMD) shares gained 1,920%
- Northern Star Resources Ltd (ASX: NST) shares gained 1,770%
- Ramelius Resources Ltd (ASX: RMS) shares gained 1,740%
- Champion Iron Ltd (ASX: CIA) shares gained 1,450%
- Dicker Data Ltd (ASX: DDR) shares gained 1,270%
- Neuren Pharmaceuticals Ltd (ASX: NEU) shares gained 1,090%
That's one heck of a list of top ASX stocks!
Commenting on the data, eToro market analyst Josh Gilbert said: "A ten-bagger is the holy grail for many investors and looking locally could be the ticket for finding that stock when compared to other major markets."
Gilbert added:
The complexity of finding and investing in such opportunities requires careful analysis, risk management, and a willingness to take a long-term view.
Psychological factors are also challenging. Riding a stock to a 1,000% gain without taking profit requires serious patience, belief in the business and a strong mentality.
If you're looking to invest in companies that make the ASX top stock list 10 years from now, be sure to do your own thorough research first. If you're time-poor or don't feel comfortable with that, just reach out for some expert advice.
