2024 was a standout year for investors, with the S&P/ASX 200 Index (ASX: XJO) delivering an impressive 9% upside.
If you've been looking to add to your portfolio and waiting for the right moment, you might be kicking yourself for not diving in sooner.
Now, with last year's gains in the rearview mirror, you may be wondering if it's worth holding off in the hopes of securing a better entry point before buying more shares.
While a 9% gain is certainly worth celebrating, it's important to remember that, over the past 24 years, the ASX 200 has delivered average returns of 8.2% per annum. In fact, only five of those 24 years have ended in the red for the Aussie market.
Could the market dip from here? Absolutely! But, looking at the big picture, short-term volatility is a small price to pay for such robust long-term gains.
Plus, time spent on the sidelines can also result in missed opportunities and lost profits.
So, if you're looking to add new holdings to your portfolio in 2025, it's quite possible there's no better time than right now!
On that note, we asked Foolish writers which ASX shares they think make top buying in January.
Here is what they told us:
6 top ASX shares for January 2025 (smallest to largest)
- VanEck Australian Equal Weight ETF (ASX: MVW), $2.59 billion
- Tuas Ltd (ASX: TUA), $2.96 billion
- Codan Ltd (ASX: CDA), $2.97 billion
- Northern Star Resources Ltd (ASX: NST), $17.89 billion
- Pro Medicus Limited (ASX: PME), $26.93 billion
- WiseTech Global Ltd (ASX: WTC), $41.14 billion
(Market capitalisations as of market close 31 December 2024)
Why our Fool writers love these ASX stocks
VanEck Australian Equal Weight ETF
What it does: This ASX exchange-traded fund (ETF) is an index fund with a twist. It holds the largest 200 stocks on the ASX in equal proportions.
By Sebastian Bowen: I'm a big fan of traditional ASX index funds. However, with the largest holdings in the ASX 200 (namely the big four banks) rocketing in valuation over 2024 despite stagnant earnings, I have grown concerned with the prudence of investing in these traditional funds right now.
Instead, a better option to consider this January might be the VanEck Equal Weight ETF.
Unlike a traditional index fund, MVW allocates each of the largest stocks in our market an equal weighting in its portfolio instead of the market capitalisation-weighting we would typically see.
This means that everything from the Commonwealth Bank of Australia (ASX: CBA) to Ampol Ltd (ASX: ALD) gets the same allocation. As mentioned, this is a vastly different approach to a market capitalisation-weighted index fund, which normally sees the big four banks get around 25 cents of every dollar (with CBA alone worth around 11 cents of each dollar at present).
I think MVW's equal-weight approach might well do better over the coming years than a traditional index fund, thus making it a great idea to consider as we start 2025.
Motley Fool contributor Sebastian Bowen does not own units of the VanEck Australian Equal Weight ETF.
Tuas Ltd
What it does: Tuas is a Singaporean telecommunications business listed on the ASX. It was founded by David Teoh, the man who helped TPG Telecom Ltd (ASX: TPG) grow into a major player in Australia before its merger with Vodafone Australia.
By Tristan Harrison: I'm bullish about the long-term future of Tuas for many reasons.
First, it's growing mobile subscribers at a decent pace. At the end of the first quarter of FY25, Tuas had reached 1.11 million subscribers, representing an increase of 26.6% year over year and a rise of 5.7% quarter over quarter. Its low-cost offering could also continue to attract new subscribers.
Second, I'm excited by the company's potential to grow in the broadband space. As of the end of November 2024, Tuas had more than 10,000 broadband subscribers, and this number could significantly increase in the coming years.
Third, the ASX telco is rapidly growing revenue – in FY24, revenue rose by 36%. Furthermore, I believe revenue growth will closely follow the company's strong subscriber growth.
Fourth, Tuas is seeing good profit margin growth, which means it should be able to grow profit faster than revenue. In FY24, the company's operating profit (EBITDA) margin improved to 42%, up from 36%.
Finally, the company may, over time, expand to other Asian countries, such as Indonesia and Malaysia, which have much larger populations than Singapore, potentially delivering a further boost to subscriber and revenue growth.
Motley Fool contributor Tristan Harrison owns shares of Tuas Ltd and does not own shares of TPG Telecom Ltd.
Codan Ltd
What it does: Codan flaunts deep expertise in radio-based communications. The company's electronics prowess powers three product pillars: tactical communications, critical communications, and metal detection.
By Mitchell Lawler: Codan receives little attention despite its instrumental role in public safety, military capability, and recreational metal detecting. What started as a high-frequency radio equipment manufacturer 65 years ago has become a comms powerhouse.
After numerous acquisitions, Codan now generates 59% of its revenue from products used by the military, law enforcement, and public safety. From my perspective, the advantage here is the sticky and permeable nature of communications in these markets. Government customers want simplicity and reliability, which lends itself to a single provider and long relationships.
The company's shares aren't as cheap as they once were. However, I suspect we'll begin to see operating leverage in Codan's consolidated solutions over the next few years, which could see earnings exceed revenue growth.
Motley Fool contributor Mitchell Lawler does not own shares of Codan Ltd.
Northern Star Resources Ltd
What it does: Northern Star is one of the world's top 10 gold producers. The miner has three production centres and operations in Western Australia and the US state of Alaska.
By Bernd Struben: Northern Star shares gained 13% in 2024 amid a rising gold price. The ASX 200 gold miner also paid 40 cents per share in unfranked dividends.
I think Northern Star can keep outperforming and increase its dividends in 2025, in part based on potentially higher gold prices. CBA analysts are forecasting gold prices will average US$3,000 per ounce (AU$4,722/oz) in the fourth quarter of 2025, up from US$2,653 today.
In September, Northern Star provided FY 2025 guidance of 1.65 million to 1.80 million ounces of gold sold at an all-in sustaining cost (AISC) of AU$1,850 to AU$2,100 per ounce (less than half CBA's forecast spot gold price for Q4).
I also like the look of the balance sheet, which shows Northern Star holding cash and bullion worth AU$998 million as of 30 September.
And if Northern Star's AU$5 billion acquisition of gold miner De Grey Mining Limited (ASX: DEG) goes through, it will own De Grey's low-cost, long-life, and large-scale Hemi project in Western Australia.
Forecast gold production from Hemi stands at 530,000 ounces per year over its first 10 years.
Motley Fool contributor Bernd Struben does not own shares of Northern Star Resources Ltd.
Pro Medicus Limited
What it does: Pro Medicus is a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres, and healthcare groups worldwide.
By James Mickleboro: I think Pro Medicus could be a great option for investors in January. It was among the best performers on the ASX 200 in 2024, but I don't believe it is too late to invest. Far from it!
This health imaging technology company appears well-positioned to grow at an explosive rate for many years to come. This is thanks to its Visage 7 platform, which is the clear market leader.
A testament to this is the massive contracts the company continues to win from some of the most respected players in the healthcare sector. This includes November's $330 million, 10-year contract with Trinity Health, which is one of the largest not-for-profit healthcare systems in the United States.
Even after winning this contract, management stated that its "pipeline remains strong and spans all market segments." In addition, Pro Medicus is expanding into adjacent solutions, including artificial intelligence (AI) and cardiology, which could both deliver significant upsides in the future.
Morgan Stanley is very bullish on the company. So much so that last month, it initiated coverage with an overweight rating and a $300.00 price target on Pro Medicus shares.
Motley Fool contributor James Mickleboro owns shares of Pro Medicus Limited.
WiseTech Global Ltd
What it does: WiseTech is a logistics software company that works with major logistics players in the freight forwarding and cargo transport industries.
By Zach Bristow: Wisetech shares wobbled throughout October and November of 2024 as founder and former CEO Richard White caught a number of headlines for personal conduct outside of the business.
After a sharp drop in early October, Wisetech shares recovered to a 52-week high of $141.61 during intraday trading on 21 November. However, they have since retreated to $121 apiece at the time of writing.
In my opinion, this pullback provides an excellent opportunity to own a high-quality stock at an attractive starting value.
WiseTech's earnings have grown by 34% per year, on average, since FY18, hitting 81 cents per share in FY24. UBS projects this growth to continue for the next five years, with the broker forecasting WiseTech's profits to grow by 36% per year out to FY29.
Meanwhile, according to CommSec, the consensus of analyst estimates projects 33% earnings growth over the next two years.
With the company's internal issues now seemingly sorted, its growing market position, and these growth numbers in mind, I believe WiseTech is primed for a good year in 2025.
Motley Fool contributor Zach Bristow does not own shares of WiseTech Global Ltd.
