Top ASX Stock Picks for 2025: 4 Companies on Our Radar

The Traits of High-Quality ASX Stocks — And Our Top ASX Stock Picks for 2025

With close to 2,000 listed companies on the ASX, identifying future winners can be a challenge for retail investors and even seasoned professionals. Stock picking is never straightforward, but there are signals that can improve the odds of success and help investors make better risk-reward decisions over time.

One key factor is pricing power. Companies that can maintain or expand margins as revenue grows often demonstrate scalable business models with durable competitive advantages. Financial health is another important consideration. Businesses carrying excessive debt or relying heavily on equity raises may struggle to deliver sustainable returns, so assessing how management allocates capital is essential. The goal is to understand whether borrowed funds or shareholder capital are being deployed to drive long-term growth and profitability.

Finally, management quality and alignment matter. Insider ownership and additional share purchases can signal that leadership is confident in the company’s growth strategy, offering investors another layer of conviction.

With these principles in mind, we highlight a selection of ASX-listed companies that we believe are positioned to deliver strong performance in the years ahead.

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AML3D (ASX: AL3) Taps U.S. Defence Opportunity

AML3D is pioneering the production of large, high-strength metal components through advanced robotic 3D printing, offering a faster and more flexible alternative to traditional methods such as casting or machining. Its Wire Arc Additive Manufacturing (WAM) process uses robotic welding to melt metal wire and build parts layer by layer, enabling efficient, customised solutions for sectors including aerospace, defence, oil and gas, marine, mining, and general engineering.

A key growth driver is AML3D’s partnership with the U.S. Department of Defense via BlueForge Alliance. The U.S. Navy recently awarded BlueForge a contract worth US$951 million to expand its submarine industrial base, creating a significant opportunity for AML3D to benefit from increased demand. The company has already sold its 3D printing systems to support submarine production, with installations underway in Virginia and Tennessee. Given the scale of U.S. investment into this program, AML3D appears well positioned to capture ongoing growth in the defence market.

Metallium (ASX: MTM) Targets Growth in Critical Metal Recovery

Metallium Limited, formerly MTM Critical Metals, has shifted its focus from traditional mineral exploration to the recovery of critical metals and rare earth elements. At the centre of its strategy is Flash Joule Heating, a patented technology designed to extract high-value metals such as gallium, germanium, rare earths, and gold. Through its U.S. subsidiary, Flash Metals USA Inc., Metallium is strategically positioned to benefit from nearly US$1 billion in new U.S. Department of Energy funding aimed at expanding rare earth refining capacity.

The company’s growth potential rests on its early-mover position in electrothermal recovery, which could pave the way for long-term offtake agreements, licensing opportunities, and the roll-out of modular refining facilities in global markets. For investors, the development of these modular initiatives will be a key indicator of progress, alongside continued collaborations with partners such as Rice University. These partnerships provide important research and development support, helping accelerate the commercialisation of Metallium’s patented technology and strengthening its position in the evolving critical minerals supply chain.

Nanoveu (ASX: NVU) Boosts Drone Endurance With Edge AI Chip

The ECS Dot Edge AI Chip, developed by Nanoveu’s EMASS subsidiary, is a specialised semiconductor designed to process artificial intelligence workloads directly on a drone. Instead of transmitting large volumes of data to a central server, the chip analyses sensor inputs in real time, enabling faster and more efficient decision-making for navigation, obstacle detection, and power management. 

This optimisation allows drones to adjust motor speed, flight paths, and energy use more effectively, reducing wasted power and extending endurance, with trials showing improvements of up to 80 percent. By minimising the need for data transmission, the chip delivers further energy savings and enhances overall performance.

Importantly, the ECS Dot chip is compatible with multiple drone types, expanding its addressable market and revenue potential. Nanoveu is pursuing a licensing and intellectual property model and has begun engaging with global drone manufacturers to explore integration into next-generation platforms. This positions the company to benefit from the growing role of edge AI in improving efficiency across aviation and related industries.

4DMedical (ASX: 4DX) Targets U.S. Growth With Next-Gen Lung Imaging

4DMedical is an Australian company redefining how clinicians assess and monitor lung health. Its technology transforms routine chest imaging into quantitative maps that measure ventilation, or how evenly air moves through the lungs, and perfusion, or how effectively blood collects oxygen through tiny vessels. These insights go beyond what traditional CT scans can provide, offering earlier and more precise detection of respiratory conditions.

The company’s product suite includes CT:VQ, which converts standard CT scans into colour-coded maps of airflow and blood flow and is currently under FDA review, with the potential to replace older nuclear medicine scans. CT LVAS delivers cloud-based lung function analysis, while XV LVAS uses real-time X-ray video to visualise airflow in motion. In addition, Lung Density AI, developed in partnership with Olympus, is already helping US clinicians detect early signs of lung damage such as emphysema.

4DMedical generates revenue through a SaaS model with per-scan fees and subscription agreements, supported by US reimbursement pathways. Customers include leading hospitals such as Stanford Medicine and the University of Michigan, validating the technology’s clinical value. The company recently secured a AUD 10 million senior secured facility to accelerate commercial rollout, complementing regulatory progress as it awaits FDA clearance for CT:VQ. Strategic partnerships, particularly with Pro Medicus, could further expand 4DMedical’s reach, driving adoption across major US healthcare networks.

Some of the Top ASX Stock Picks mentioned are research clients of Pitt Street Research. In addition, directors of Pitt Street Research hold shares in these companies.