As the financial year unfolds, investors are keenly observing the shifts and turns of the market especially where February has seen companies across the board unveil their financial results and share prices have adjusted to reflect these revelations. A select group of stocks have distinguished themselves, delivering impressive performances that have caught the eye of market watchers and investors garnishing our take on the top 10 stocks in australia for 2024.

Has the bright performance continued after the earnings season? In this article, we shine a light on the top 10 best-performing stocks in Australia based on YTD return in 2024 to check out.

1. Goodman Group (ASX: GMG)

Market Cap: A$64B

PE Ratio (TTM): 41.23

PB Ratio: 22.23

YTD: +33.64%

Despite facing a net loss due to property revaluations and the adverse impact of increasing long-term government bond yields, Goodman Group maintained a positive broader business outlook. This confidence in the company's future performance, driven by its successful navigation of prevailing structural market trends and a strong commitment to capital management and development initiatives, led to a notable surge in its share price.

On the day the financial results were released, the company's stock price climbed by over 7%. This rally continued, with share prices reaching their highest point in over 15 years, following an upward revision of the company's annual earnings forecast. Even with this increase, analysts at Jefferies suggested that the stock was still undervalued, indicating potential for further growth.

2. Light & Wonder Inc (ASX: LNW)

Market Cap: A$14B

PE Ratio (TTM): 62.26

PB Ratio: 12.29

YTD: +32.25%

Light & Wonder Inc., a global gaming company renowned for its cross-platform content and strong presence in digital markets, has experienced a significant rise in its share value from a low point of A$114 to a peak of A$167.

This upward trajectory in share price was mirrored by the company's financial performance. Light & Wonder Inc. reported a year-over-year (YoY) increase of 13% in consolidated revenue, reaching $770 million and also witnessed a 16% jump in its full-year consolidated revenue, surpassing market expectations.Looking forward, Light & Wonder Inc. plans to expand its business operations in 2024, targeting new markets. This strategic venture into diverse gaming verticals underscores the company's ambition to bolster its market position and tap into new revenue streams.

3. QBE Insurance Group QBE Ltd (ASX: QBE)

Market Cap: A$27B

PE Ratio (TTM): 14.10

PB Ratio: 1.78

YTD: +25.93%

QBE, a company primarily engaged in global property and casualty insurance, also operates a reinsurance business that contributed significantly to the robust performance showcased in the group's full-year results released on February 26th.

The insurer reported a substantial increase in its full-year net profits, more than doubling the figure from the previous year. This financial success was attributed to robust premium growth, which was fueled by both renewal rate hikes and the acquisition of new business. Morgan Stanley forecasted the possibility of further margin growth for the sector. This optimism was based on the insurers's demonstrated ability to achieve strong pricing, coupled with a trend towards the normalization of costs. The combination of these factors suggests a favourable outlook for QBE and its peers in the Australian insurance industry.

4. Reece Ltd (ASX: REH)

Market Cap: A$18B

PE Ratio (TTM): 42.71

PB Ratio: 4.94

YTD: +25.86%

Reece Limited is a company that specializes in the wholesale distribution of a diverse array of products, including plumbing, waterworks, and fixtures for bathrooms, as well as systems for heating, ventilation, air-conditioning, and refrigeration. Following the release of its financial results, which showed improved revenue and profit for the six months ending December 31, 2023, Reece's shares saw a notable rise.

Despite forecasting moderated demand in the second half of the year, Reece is committed to its long-term investment strategy. With the ambitious goal of becoming the most valuable partner to trade by 2030, Reece demonstrates a strong belief in its ability to adapt to market fluctuations and maintain its leadership position within the industry. This vision reflects the company's dedication to growth and excellence in serving its customers' evolving needs.

5. WiseTech Global Ltd (ASX: WTC)

Market Cap: A$31B

PE Ratio (TTM): 140.64

PB Ratio: 15.50

YTD: +24.75%

WiseTech Global Limited, based in Australia, is a provider of cutting-edge cloud-based logistics software catering to an international market. Their premier platform, CargoWise, is instrumental in streamlining the operations of warehousing and transactions for an extensive customer base that spans over 18,000 organizations in 170 countries.

The company recently reported a 5% rise in its profit for the first half of the fiscal year. In response to this strong financial performance, WiseTech Global declared a hike in its dividend payout and concurrently revised its full-year profit margin forecast upwards, extending the upper range. This move is indicative of the firm's robust financial health and its optimistic future financial projections.

6. Wesfarmers Ltd (ASX: WES)

Market Cap: A$78B

PE Ratio (TTM): 30.94

PB Ratio: 9.22

YTD: +21.65%

Wesfarmers Ltd, a conglomerate known for its varied portfolio, has successfully utilized its retail and industrial sectors to achieve impressive financial outcomes, earning it favour among investors. For the six-month period that ended on December 31, 2023, Wesfarmers reported net profit and revenue figures that surpassed expectations.

This strong performance was primarily driven by heightened sales within its Kmart and Bunnings divisions, which significantly outperformed the analysts' forecast of A$1.184 billion. In light of Wesfarmers' solid financial results, several investment banks have not only revised their ratings to reflect a more positive outlook but have also increased their target prices for Wesfarmers' shares, indicating confidence in the company's continued financial health and growth potential.

7. Suncorp Group Ltd (ASX: SUN)

Market Cap: A$21B

PE Ratio (TTM): 18.04

PB Ratio: 1.52

YTD: +20.92%

Suncorp Group, a provider of financial services, has reported a strong performance bolstered by a robust insurance segment and a strategic plan that has been well received by the market. The company announced a half-year revenue of A$9.65 billion, marking a substantial 23% increase from the previous year. Reflecting this positive financial outcome, the directors of Suncorp declared an interim dividend of 34 Australian cents per share, a slight increase from the 33 Australian cents per share distributed last year.

Looking ahead, Suncorp appears to be on course to meet or even exceed the mid-point of its forecasted underlying margin target for the fiscal year. Additionally, there is an anticipation of a significant capital return following the divestiture of its banking unit. This anticipated move could potentially lead to a revaluation of Suncorp's shares, aligning the company's price-to-earnings ratio more closely with that of its industry counterpart, Insurance Australia Group (IAG).

8. Brambles Ltd (ASX: BXB)

Market Cap: A$22B

PE Ratio (TTM): 20.16

PB Ratio: 4.70

YTD: +20.55%

Brambles, a company specializing in supply chain logistics solutions, has thrived by addressing the escalating demand for efficient distribution amid global trade challenges, consequently driving its share price to new peaks. The pallet supplier exceeded market profit expectations for the half-year period ending in December and subsequently raised its forecast for annual performance. Moreover, Brambles has managed to reduce its capital expenditures to $527.5 million, down significantly from $862.2 million in the previous year.

Part of Brambles' success can be attributed to the company's strategic investment in the digitization of its pallet-pool tracking system, which has enhanced the speed of pallet returns. The other contributing factor is the company's proactive measures to improve asset efficiency, including initiatives around the utilization and integration of data.

9. ResMed Inc (ASX: RMD)

Market Cap: A$44B

PE Ratio (TTM): 33.99

PB Ratio: 6.47

YTD: +18.81%

ResMed Inc. is a global leader in digital health, offering a suite of cloud-connected medical devices that are revolutionizing care for individuals with sleep apnea, chronic obstructive pulmonary disease (COPD), and other chronic conditions.

The company has experienced impressive performance on the stock market, with its shares rising by a significant 18% over the past three months. As of December 31, 2023, the company reported a notable revenue growth of 12.48%, indicating a substantial increase in its top-line financial results. The financial robustness of ResMed is further evidenced by its exceptional return on equity (ROE) and return on assets (ROA), which highlight the company's effective utilization of assets to generate optimal returns.

10. Xero Ltd (ASX: XRO)

Market Cap: A$20B

PE Ratio (TTM): Loss

PB Ratio: 18.38

YTD: +18.72%

Xero, a technology firm based in New Zealand, specializes in providing cloud-based accounting software designed specifically for small to medium-sized enterprises (SMEs). In an unusual shift from its typical February earnings report, Xero has postponed its earnings disclosure until May.

Despite this delay, the company's shares have shown impressive performance in the market. This positive investor sentiment is attributable, in part, to the increased confidence in Xero's financial outlook, which was bolstered by insights shared at the company's recent investor day. Additionally, Xero's announcement that it plans to expedite the launch of new products has likely played a role in fueling investor enthusiasm.

Conclusion

The financial results season has brought a new dimension to the ASX, showcasing the top 10 stocks in Australia that are not just surviving but thriving in the current economic climate. From industrial giants to tech innovators, the ten best-performing stocks of 2024 thus far have demonstrated resilience, adaptability, and a clear vision for success. As the year progresses, these companies will undoubtedly continue to be closely watched over time, as investors will benefit from those with strong financial performance and positive business outlooks.

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