Here are the 4 best ASX stocks for June 2024

Nick Sundich Nick Sundich, May 31, 2024

Here are the 4 best ASX stocks for June 2024!

Each month, we look at the best ASX stocks of the month. We like to look at companies with upcoming catalysts, be it good results (as forecasted by consensus estimates), or other expected news such as clinical trial results. We have found a handful of stocks with upcoming catalysts, or that are worth holding for a few months if you have the patience.

 

Universal Store (ASX:UNI)

Universal Store is a chain of casual fashion stores aimed at Millennial and Gen Z customers (think 18-35 year olds). Universal Store has 79 stores across Australia, which tend to be in major shopping centres, as well as a further 20 or so stores exclusive for particular brands like Perfect Stranger, and the group makes 14% of its sales online. Both curated third-party products and private brand products are sold in-house, although the former dominates.

It is a good business, but has been hit by perceptions that its customers will cut back their spending because they feel the brunt of the cost of living crisis. We think the recent Taylor Swift shows and the merchandise spent by them (estimated to be over $60m at the concerts alone) show that they will still spend when they perceive value.

In FY23, total Sales were up $263.1m, up 26.5% overall, although like for like sales were only up 1.2%. It made underlying EBIT of $40.4m, up 24%) and an NPAT of $23.6m, up 15%. Not bad in the rising interest rate environment. This was because the company was better able to manage inventory and offset costs of doing business. We are optimistic for further growth in the next 12 months as the Stage 3 Tax cuts come into effect. The revised package will put more money into the pockets of Universal Store’s customer base.

 

Capricorn Metals (ASX:CMM)

We couldn’t write an article of best ASX stocks to buy in June 2024 without including a gold stock. Capricorn Metals is in a unique position of having a producing gold mine, and being about to bring a second gold mine into production that will be even better than the second. Its Karlawinda Gold Mine, near Newman in WA’s Pilbara, produces over 100,000 ounces a year. And its Mt Gibson project will be bought into production in the next couple of years. Specifically, Capricorn is hoping to commence production within 12 months of completing the permitting process, which it has just commenced.

The company has built up a 1.45Moz Ore Reserve Estimate, with an operation delivering A$1.2bn in free cash flow and with an NPV of A$828m. It anticipates an average of 152kozpa for the first 7.5 years and a full mine life of 10 years. The development is fully funded with A$258m banked up to December 2023.

 

Metals Acquisition (ASX:MAC)

Now let’s look at a copper miner – Metals Acquisition. This company is not just any copper miner, but one that owns one of the most famous copper mines in Australia. Namely, the Cornish, Scottish and Australia (CSA) copper mine, which it bought from Glencore in June 2023. The mine was named after the nationalities of its first owners. CSA lies 11km northwest of the NSW town of Cobar and has been producing high-grade copper for almost 60 years. The company expects 38-43,000t in 2024, 43-48,000t in 2025 and 48-53,000t in 2026.

One downside to the project was that it was only projected to last until 2029. That is, until last month when it updated its Resource, which allows for an extension of its life until 2034. It has 8Mt at 5.2% for 413,000t of copper. 4.7Mt at 4.9% for 229kt of copper is Measured and Indicated. There has been limited exploration away from known deposits, and the company has indicated this is a route it could take.

Copper has been volatile, but is currently at levels not seen in 2 years, and expected to play a major role in decarbonisation. And don’t be surprised to see this company buy further assets, including potentially neighbouring Aurelia (ASX:AMI).

 

Breville (ASX:BRG)

One of the reason this company is on the list of best ASX stocks to buy in June is shared with fellow listee Universal Store. Namely, the Stage 3 tax cuts which could lead to an increase in discretionary spending. Even prior to July, it could see a windfall in June due to the EOFY sales.

This company is a premium kitchen appliances business that sells nearly $1.5bn in goods each year in over 100 countries globally and caters to middle to higher income earners. So far as FY24 guidance is concerned, Breville has only told investors to expect EBIT growth of 5-7.5%.

 

What are the Best ASX Stocks to invest in right now?

Check our buy/sell tips

 

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