Best Shares to Buy Right Now in Australia: A Comprehensive Guide to ASX's Leading Companies

Understanding Australia’s Premier Investment Opportunities

For investors seeking exposure to Australia’s most compelling equities, the ASX presents a diverse range of opportunities across energy, finance, and materials sectors. The best shares to buy right now in Australia span multiple industries, each offering distinct risk-return profiles. As of mid-April 2023, the market’s most valuable companies demonstrate varying performance metrics worth scrutinizing.

The Australian stock exchange showcases 10 major corporations with market capitalizations ranging from AU$59 billion to AU$312 billion. These best shares to buy right now in Australia represent different investment philosophies—from dividend-focused strategies to growth-oriented approaches.

The Materials Sector: Commodity-Exposed Opportunities

BHP Group Limited (ASX: BHP) leads by market capitalization at AU$312.91 billion. This metals and mining giant operates across iron ore, copper, nickel, coal, potash, and petroleum. Despite a YTD decline of -12.64%, the company’s valuation metrics remain attractive with a P/E ratio of 8.72. Over six months, BHP gained 18.83%, benefiting from elevated coal prices as iron ore faced headwinds. The three-year revenue growth rate stands at 14.2% with a net margin near 46%.

Notably, BHP maintains consistent dividend payments spanning 13 years, currently offering AU$4.74 quarterly with an 8.43% yield as of April 17. CLSA upgraded the stock to ‘Outperform’ on April 5, establishing a price target of AU$46.50.

Fortescue Metals Group Limited (ASX: FMG) presents a contrasting narrative within the materials space. With AU$69.31 billion market cap, FMG is the world’s lowest-cost iron ore producer undergoing transformation toward green energy. The company announced a fully franked interim dividend of AU$0.75 per share. Its subsidiary, Fortescue Future Industries (FFI), is developing green hydrogen, green ammonia, and advanced battery projects across the US, Norway, Queensland, and Kenya.

However, FMG reported declining financials compared to 2022—revenue, net income, profit margin, and EPS all decreased. With a P/E of 7.84 and YTD performance of 3.22%, the company faces a projected 7.2% average annual revenue decline over three years.

Financial Sector: Banking Giants Under Scrutiny

Commonwealth Bank of Australia (ASX: CBA) commands AU$168.40 billion in market capitalization as Australia’s leading financial services provider. In the first half of 2023, CBA reported cash net profit after tax of AU$6.73 billion with operating income reaching AU$17.69 billion—a 19% increase in net interest income year-over-year.

The bank’s interim dividend reached AU$2.73 per share, up AU$0.46 from prior year. Despite these results, the market rated CBA as “Moderate Sell” with consensus price targeting AU$91.14, implying 8.11% downside from the AU$99.18 level. YTD performance stands at -7.38% with a P/E ratio of 17.33.

National Australia Bank Limited (ASX: NAB), with AU$89.99 billion market cap, reported full-year 2022 revenue of AU$18.4 billion (up 8.9% YoY) and net income of AU$7.06 billion (up 9.4% YoY). EPS expanded from AU$1.96 to AU$2.19. The fully franked final dividend of AU$0.78 per share brought full-year distributions to AU$1.51 (up 24% YoY), generating a 5.55% dividend yield.

Analysts assigned NAB a ‘Hold’ rating with AU$30.26 price target, representing 6.31% upside from AU$28.46 current levels. The stock declined 14.41% over one year despite holding a P/E of 13.36.

Westpac Banking Corporation (ASX: WBC), valued at AU$78.11 billion, remains one of Australia’s “Big Four” banks. Despite shares trading 23.5% below five-year levels, WBC offers a fully-franked dividend yield of 5.65%. Morgans ASX broker forecast AU$34.69 target price, suggesting 17% potential upside.

FY2022 saw revenue decline 12% to AU$19.3 billion while net income grew 4.3% to AU$5.69 billion. Profit margin improved to 30%, with EPS climbing to AU$1.60—exceeding estimates by 13%. The P/E ratio sits at 14.45. Management targets expense reduction to AU$11.56 billion by FY24, though inflation and regulatory pressures may constrain progress.

ANZ Group Holdings Limited (ASX: ANZ) reported AU$72.71 billion market cap. Full-year 2022 results showed 9.3% revenue growth to AU$19.7 billion and 16% net income expansion to AU$7.14 billion. Profit margin surged to 36% with EPS improving to AU$2.51. However, ANZ shares underperformed in 2022, declining over 13%—underperforming the S&P/ASX 200 Index and peer banks.

Higher interest rates in 2023 should boost ANZ’s net interest margin (NIM). The bank projects additional net interest income of AU$2.02 billion in FY23 and AU$4.30 billion in FY25. Citi rated ANZ as ‘Buy’ with AU$38.86 target, forecasting fully franked dividends of AU$2.23 per share in FY2023 and AU$2.37 in FY2024, translating to 7.1% and 7.6% yields respectively.

Diversified Financials and Specialized Sectors

Macquarie Group Limited (ASX: MQG) operates as a global financial powerhouse with AU$70.59 billion market cap. The company reported first-half 2023 net profit of AU$2,305 million, up 13% year-over-year but down 13% from second half 2022. Management declared AU$3.00 interim dividend per share (40% franked) with 50% payout ratio.

The group maintained robust capital position with AU$12.2 billion capital surplus exceeding regulatory requirements. Despite 8% share price decline since March 7, 2023, due to global banking turmoil, MQG’s diversified business model positions it for sustainable earnings growth. The stock carries ‘Strong Buy’ consensus rating based on 6 buy and 2 hold recommendations, with P/E of 14.16.

CSL Limited (ASX: CSL) commands AU$145.61 billion valuation. This Australian biotech specialist focuses on plasma-based therapies, vaccines, and pharmaceutical products across 30+ countries, operating in an oligopoly market structure. H1 FY23 delivered 19% revenue growth to AU$9.68 billion with AU$1.44 per share unfranked interim dividend.

Wall Street consensus gives CSL ‘Strong Buy’ with AU$335.86 twelve-month price target—suggesting 11.53% upside from AU$301.14. The company’s 5-year performance reached 88.52% with P/E of 46.58, reflecting premium valuation driven by high return on capital and robust R&D investments.

Energy Sector Dynamics

Woodside Energy Group Ltd (ASX: WDS) achieved remarkable 2022 results with AU$65.94 billion market cap. NPAT surged 228% to AU$8,740 million while operating revenue jumped 142% to AU$22,591 million. Operating cash flow climbed 132% to AU$11,841 million. The company concluded the year with AU$8,325 million cash and AU$13,776 million liquidity, maintaining net debt of AU$768 million (1.6% gearing).

Woodside completed BHP petroleum business merger, advanced Scarborough and Sangomar projects, and finalized Pluto Train 2 sell-down. Full-year dividend reached AU 340.08 cents per share (AU 193.60 final), representing AU$6,465 million total distribution. Currently offering 10.79% dividend yield, Citi forecasts yields of 7.7%, 7.5%, and 6.5% for subsequent three years.

Retail and Diversified Operations

Wesfarmers Limited (ASX: WES) operates AU$59.07 billion market cap conglomerate anchored by Bunnings—Australia’s leading home improvement retailer with 110,000+ products across 507 locations. H1 2022 generated AU$22.558 billion revenue and AU$1.365 billion free cash flow.

FY2022 full-year dividend reached AU$3.40 per share with 6.3% current yield. Citi projects fully franked dividends of AU$3.54, AU$3.44, and AU$2.97 per share for FY2023, FY2024, and FY2025 respectively. Over six months, WES exhibited notable upward trajectory. With diversified operations enabling venture investments, the stock presents compelling ASX 200 opportunity despite reduced valuation appeal versus prior years.

Investment Framework for ASX Selection

Before committing capital to Australia’s best shares to buy right now, investors should establish clear parameters:

Educational Foundation: Thoroughly research equity markets and stock evaluation methodologies. Online resources and formal investing courses provide essential knowledge foundations.

Strategic Planning: Define investment objectives and risk tolerance, then architect a portfolio aligned with those parameters. Specify target stock types, investment quantum, and time horizon.

Portfolio Diversification: Avoid concentration risk through single-stock exposure. Distribute investments across multiple equities and sectors to mitigate portfolio volatility.

Fundamental Analysis: Execute comprehensive due diligence before deployment. Examine financial statements, management quality, industry trends, and macroeconomic factors.

Discipline Maintenance: Execute your investment strategy without deviation driven by short-term market noise. Periodically review and rebalance positioning as market conditions evolve.

Professional Consultation: Investors new to equities or uncertain about strategy should engage qualified financial advisors for market guidance and decision support.

Conclusion

Australia’s best shares to buy right now in Australia span materials, banking, biotech, energy, and retail sectors. The 10 major ASX companies analyzed here offer diverse characteristics—from dividend-focused infrastructure plays to growth-oriented biotech exposures. Each presents distinct risk-reward profiles suitable for different investor mandates.

Successful ASX investing demands rigorous research, disciplined execution, and portfolio diversification. While this analysis highlights Australia’s leading publicly-traded companies, investors must conduct independent due diligence aligned with personal financial objectives and risk parameters to make informed allocation decisions and optimize long-term wealth creation.