Here are 5 US stocks for Australian investors other than the Magnificent Seven!

When thinking about US stocks for Australian investors, it is easy to just name the Magnificent Seven and be done with it, but that’d be lazy.

The NYSE and NASDAQ are major exchanges with tonnes of companies other than the Magnificent Seven. The Dow Jones is home to 30 companies – a list that only includes 3 of the Magnificent Seven; and the S&P 500 hosts (you guessed it) 500. And the NASDAQ composite, while weighted heavily to tech stocks, includes just about all nearly 4,000 stocks calling that bourse home.

But where abouts to look? Let

5 US stocks for Australian investors other than the Magnificent Seven!

Atlassian (NDQ:TEAM)

Let’s start with US stock that is also a home-grown company. Its specialist is software enabling collaboration, particularly software developers. Scott Farquhar and Mike Cannon-Brookes founded the company right out of university in 2002 and they listed the company in the USA in 2015.

Whenever interviewed and asked why the company is listed in the USA rather than the ASX, Farquhar and Cannon-Brookes would typically state the US market was bigger and mature. But you have to suspect the ASX’s intolerance to dual class share structures is another.

The company hasn’t had an easy 12 months having to downgrade its 3-year revenue growth target from 20% to 16%, missing consensus estimates a couple of times and its net loss widening. Concerns about Farquhar standing aside arguably have had an impact too, in the sense that there is uncertaity as to where it goes now.

But we think, the company may be destined for a few good years. While some companies have little or nothing to counter AI, Atlassian is responding by launching a new AI assistant, Rovo. It purports to have an opportunity of $67bn, a figure growing 13% annually and there is $18bn within its existing customer base alone.

Sherwin-Williams (NYSE:SHW)

Sherwin-Williams is a global developer, manufacturer, and distributor of paints, coatings, and related products. The company is a unique US stock because it is a so-called Dividend Aristocrat. This moniker has been earned because it has raised dividends each year for over 25 years – in this company’s case, 46 to be exact.

It closed 2024 with US$23.1bn in net sales (a record for the company), $4.49bn of EBITDA (up 6%). It made $10.55 EPS, which represents a profit of $11.2bn – a 4% increase. It has guided to $11.65-12.05 EPS for CY25.

The long-term looks positive. The typical square footage of a house (at least in the USA) continues to grow so more will be needed. You name any generation and their life moves will need paint of some sort. Baby Boomers are downsizing and/or moving to assisted living facilities. Gen X and millennials are upsizing, or perhaps buying homes for the first time. And fresh paint is one of the best ways to add value to it.

On top of that, the balance between Professional and DIY is returning to the pre-COVID norm where the former segment was more dominant. It has very low turnover for a retail company because its staff are not your typical ‘check out chicks or guys’, they are essentially account managers for customers (particularly commercial customers that will keep coming back).

McDonalds (NYSE:MCD)

Here’s a US stock with a bit to do in Australia. This company is Australia’s largest youth employer and the land Down Under is the company’s 4th largest market.

Its business model is unique, requiring franchisees to pay not just royalties on sales but rent for running ‘their’ business on a property – not to mention a whopping US$1.5m upfront charge that must be financed with the franchisees’ own money (yes, their own – not borrowed funds).

McDonalds tends to buy cheap land that will inevitably grow over a 20-year period during which their franchisees are contracted with them. And it sets up its stores with a plain, simple and consistent layout meaning minimal upfront costs for them.

Analysts expect $26.4bn in revenue (up 2%) and an $8.8bn profit (up 7%), or $12.21 EPS, for the full 2025.

Thermo Fisher (NYSE:TMO)

This is one of the most unique US stocks in the healthcare space. If you name something to do with healthcare, it is more likelier than not that Thermo Fisher does that. The Massachusetts-headquartered company is one of those companies that is already big, but has potential to become even bigger.

It purports to have a total market size of $240bn which can grow 4-6% in the long-term. There likely won’t be one game-changing produce, but several smaller innovations. Oneexample in the last year include the iCAP MX Series ICP-MS, a plsama mass spectrometry platform that streamlines trace elemental analysis.

Adobe (NDQ:ADBE)

This US stocks is up there with the software legends of the bouse. You may know this company because it is behind PhotoShop and PDFs.  It has a long history, but a focal point was its decision to switch from perpetual licenses to a subscription model in the early 2010s.

The lgacy business is going strong with 400 billion pdfs opened and 16 billion documents edited. The company claims that every 1 million documents signed through its software saves 105 million litres of water, 31,000 trees, and the equivalent of taking 2,300 cars off the road for a year—plus reducing costs by more than $7.2 million.

The company purports to have an overall TAM (Total Addressable Market) of over $200bn for its segments both at home in the USA and abroad. Recently, it launched Adobe Firefly which creates AI-generated images.

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