Investing with a five-year view requires more than just picking what's hot today.
It is about identifying Australian shares with sustainable competitive advantages, scalable business models, and strong structural tailwinds.
With that in mind, here are three high-quality Australian shares that analysts think could deliver great returns over the next five years. They are as follows:
ResMed Inc. (ASX: RMD)
ResMed is a global heavyweight in sleep apnoea treatment, commanding a major share of the homecare device market. This has been boosted by rival Philips currently being restricted from selling new devices in the US due to regulatory constraints.
Ord Minnett believes ResMed is well-positioned for strong growth in the coming years. And with its shares trading at an attractive valuation, the broker thinks now is a great time to invest. It said:
ResMed is in a strong position for continued growth in earnings, noting we forecast EPS growth of 14% in FY26, while the company's balance sheet can accommodate an increase in its share buyback program. Combined with an appealing valuation, Ord Minnett raises its recommendation on ResMed to Buy from Accumulate
Ord Minnett has a buy rating and $46.50 price target on its shares.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix is emerging as a leader in radiopharmaceuticals. It is busy building a vertically integrated model across research, isotope production, distribution, and commercialisation, aimed at maximising margins and controlling the full value chain.
Its strategy is already bearing fruit according to Bell Potter. Its analysts are forecasting further explosive earnings growth in the coming years. The broker recently said:
The company aims to initially dominate the urology space with a range of products for imaging, therapy and surgery. Valuations are attractive, with 12MF P/E now at 38x, supported by a 2yr EPS CAGR of 46%.
Bell Potter has a buy rating and $34.00 price target on the Australian share.
Web Travel Group Ltd (ASX: WEB)
Following the demerger of Webjet, Web Travel Group is now focused entirely on WebBeds, its high-margin B2B accommodation platform.
After a tough period, the team at Macquarie is feeling bullish about the Australian share's outlook. It recently said:
We expect WEB will continue to scale TTV and are increasingly confident it will reach its $10bn FY30 target. Visibility concerning medium-term revenue and UEBITDA margins has improved. WEB should outperform other ASX travel peers in volatile macro conditions.
Macquarie has an outperform rating and $6.19 price target on its shares.
