Top 10 ASX growth stocks to watch in November 2024
Read on for an overview of growth stocks, why they’re special, and a list of the top 10 ASX growth stocks in November 2024, selected based on recent market news and ranked by the largest share price return over the past 3 months.
What is an ASX growth stock?
Growth stocks are shares in companies that are expected to grow much faster than either the average growth of a company within the wider market or within its specific sector.
Instead of paying out dividends, any profits generated are ploughed back into the business to help accelerate growth. Accordingly, investors are usually hoping to make a profit on capital gains in the short term, with dividend income a potential outcome once major growth has been established.
Some of the best growth stocks, especially those occupying a specialist niche, trade at a high price-to-earnings ratio. Therefore, would-be investors usually end up paying a premium in hope of future growth. This means that growth stocks can see rapid declines if the company underperforms, even in just one quarter.
Common traits of the most popular ASX growth stocks often include holding patents or technologies that grant the company a unique marketplace advantage. Therefore, many have a loyal customer base and disproportionately high market share.
One key misunderstanding is that all growth stocks are small caps that might have weaker financials or be confined to domestic business. While many are, larger companies can also qualify as growth stocks depending on how much market share remains realistically available.
As an extreme example, US$570 billion market titan Tesla is by all accounts still a growth stock, delivering less than one million of the 66.7 million automobiles sold in 2021.
High risk, high reward?
One of the best-known rules of investing is the risk-reward ratio, whereby investors balance an equilibrium that sees higher-risk companies deliver either negative capital growth or far better rewards than comes from value or income investing.
For context, penny stock investing is generally regarded as being very high risk, but with the potential for exceptional returns.
Conversely, income stock investing through blue chip companies for dividends is relatively low risk, but returns can take years to become meaningful.
ASX growth stocks take their place somewhere in the middle. Of course, many investors choose to invest in a diversified portfolio that includes multiple different growth stocks to account for the risk of an individual failure. And in this recessionary environment, it can make sense to buy the dip slowly through dollar-cost averaging to further mitigate the chances of losing capital.
But fundamentally, all investing comes with risk. For example, Tesla proponents believe the EV trailblazer could one day become the automobile production market leader; but any threat to this goal through competition or similar could see a sharp correction in the future. Conversely, if Tesla succeeds, its future market cap may make the current valuation look small.
Another common growth stock example is biotech companies, some of which have their valuations underpinned by one drug or treatment. If the drug fails in the trial stages, their share price can collapse, as happened to Synairgen, BridgeBio Pharma, Sensorion, and Rafael, alongside countless others.
What makes ASX growth stocks special right now?
The Australian dollar recently hit a six-month high, reaching 67.7 US cents for the first time since early January. This surge is driven by the RBA’s preference for higher interest rates compared to the Fed, strong commodity prices, and signs of economic stabilisation in China. This strength in the Aussie dollar is particularly relevant for ASX stocks, influencing various sectors significantly.
Morgan Stanley forecasts a structurally higher Australian dollar for FY25, which could pose challenges for companies with substantial overseas earnings. Factors driving this include possible RBA rate hikes, favourable relative growth expectations for Australia, and strong risk sentiment tied to equities.
For ASX stocks, a stronger Australian dollar means cheaper imported goods and more expensive exports, which can push inflation down but also slow GDP growth. In the commodity markets, a rising Aussie dollar boosts risk appetite for resources, though impacts may be tempered by external factors like the upcoming US election.
The higher dollar could also spur inbound M&A activity, as investors seek valuation opportunities before significant shifts in Enterprise Value. However, sectors like healthcare and global growth stocks (e.g., Treasury Wine Estates, Aristocrat Leisure, Macquarie) may face earnings pressure if the dollar continues to rise.
In summary, while a stronger Australian dollar presents challenges for some sectors, it can benefit the broader ASX, particularly in materials, resources, and diversified financials. This dynamic is crucial for investors focused on ASX growth stocks, highlighting both opportunities and risks in the current market.
With that in mind, here is a list of ten ASX growth stocks for investors to consider.
Remember, past performance is not an indicator of future returns.
Top 10 ASX growth stocks to watch
These shares have been selected due to their substantial share price returns over the past three months. While they may not necessarily represent the best long-term growth investments, they have garnered significant investor interest.
Ovanti (ASX: OVT)
Ovanti Ltd is an Australian fintech company specialising in digital commerce solutions across Southeast Asia. The company offers a proprietary platform that enables institutional clients to securely authenticate end-user customers and process banking, purchase, and payment transactions. Operating primarily in Malaysia and Indonesia, Ovanti’s services encompass mobile banking, digital payments, and digital services, effectively extending IT applications to mobile devices and facilitating seamless financial interactions.
Investors may find Ovanti appealing due to its strategic positioning in the rapidly growing Southeast Asian digital economy. The company’s focus on innovation and secure financial transactions aligns with the increasing demand for digital payment solutions in the region. Additionally, Ovanti’s recent initiatives, such as accelerating its entry into the US market and appointing experienced leadership, demonstrate a commitment to expansion and adaptability. These factors suggest potential for significant growth, making Ovanti a compelling stock to monitor.
Ovanti has achieved a 800% share price return over the last three months.
Market cap: $50.75 million
Larvotto Resources (ASX: LRV)
Larvotto Resources Ltd is an Australian-based exploration company dedicated to unlocking the potential of gold, copper, and lithium deposits. The company is well-positioned in regions known for rich mineral resources, with key projects such as the Mt Isa copper project in Queensland and the Ohakuri gold project in New Zealand. Larvotto’s approach leverages cutting-edge exploration techniques to identify promising opportunities in largely underexplored areas.
What sets Larvotto apart is its strategic focus on critical minerals, such as copper and lithium, which are essential for green energy technologies and the growing electric vehicle market. Coupled with a management team experienced in both exploration and resource development, the company presents a compelling option for investors interested in sectors poised for long-term growth. The diversification across valuable commodities further strengthens Larvotto’s appeal in a competitive industry.
Larvotto Resources has achieved a 500% share price return over the last three months.
Market cap: $225.91 million
Osmond Resources (ASX: OSM)
Osmond Resources Ltd is an Australian exploration company focused on discovering and developing mineral resources, particularly in gold, copper, and nickel regions. The company’s key projects are strategically located in South Australia and Western Victoria, areas known for their geological potential. Osmond Resources employs advanced exploration techniques to target underexplored sites, aiming to unlock significant mineral deposits.
The company’s success stems from its well-positioned projects, experienced management team, and commitment to responsible exploration. By focusing on commodities like gold and copper, which have strong market demand, Osmond Resources offers investors exposure to potential high-growth assets in a favourable mining jurisdiction. The company’s strategic approach and promising exploration results make it an appealing option for those looking to invest in the resource sector.
Osmond Resources has achieved a 494.2% share price return over the last three months.
Market cap: $29.74 million
James Bay Minerals (ASX: JBY)
James Bay Minerals Ltd is a bold Australian explorer carving a niche in the lithium and gold sectors across North America. Focused on Quebec’s mineral-rich James Bay region, the company holds 100% ownership of promising assets, including the La Grande Project with key properties like Joule, Aero, and Aqua, renowned for their high lithium potential. In 2024, James Bay Minerals expanded its footprint with the acquisition of the Independence Gold Project in Nevada, a high-grade gold site that marks a strategic move into the US market.
This dual focus on lithium and gold positions James Bay Minerals as a strong contender in the energy transition landscape, catering to rising demand for electric vehicle resources and gold’s enduring value. For investors, the company’s strategic portfolio, recent discoveries, and calculated expansion into lucrative US regions signal a promising trajectory. James Bay Minerals is a stock worth watching for its potential to capture key market opportunities in the evolving energy and resource sectors.
James Bay Minerals has achieved a 361.5% share price return over the last three months.
Market cap: $23.41 million
Appen (ASX: APX)
Appen Ltd is a global leader in providing high-quality data for machine learning and artificial intelligence (AI) applications. The company works with major technology players to improve AI systems by supplying data used in training models for speech recognition, natural language processing, and computer vision. With a diverse workforce and operations spanning over 170 languages, Appen’s data solutions help optimise cutting-edge technologies across industries.
Appen’s success lies in its ability to deliver scalable, high-quality data sets to some of the world’s largest tech companies, positioning it as a key player in the rapidly expanding AI market. For investors, the company offers exposure to the booming AI and machine learning sectors, which are expected to see continued growth as businesses increasingly rely on automation and intelligent systems to enhance productivity and innovation.
Appen has achieved a 333% share price return over the last three months.
Market cap: $507.10 million
African Gold (ASX: A1G)
African Gold Ltd is an Australian exploration company dedicated to uncovering significant gold deposits across West Africa. Its flagship asset, the Didievi Gold Project in Côte d’Ivoire, is situated within the prolific Oumé-Fetekro greenstone belt, an area renowned for substantial gold mineralisation. The company’s strategic focus on this region underscores its commitment to capitalising on high-potential gold territories.
For investors, African Gold presents a compelling opportunity. The company’s recent drilling campaigns at Didievi have yielded high-grade gold intersections, highlighting the project’s robust potential. Additionally, African Gold’s experienced management team brings a track record of successful mineral exploration and development, enhancing confidence in its operational capabilities. As global demand for gold remains strong, African Gold’s strategic positioning and promising project portfolio make it a noteworthy stock to watch in the resource sector.
African Gold has achieved a 309.1% share price return over the last three months.
Market cap: $29.07 million
Trigg Minerals Limited (ASX: TMG)
Trigg Minerals Ltd is an Australian exploration company focusing on antimony and gold projects. The company holds 100% ownership of the Achilles, Taylors Arm, and Spartan Antimony Projects in New South Wales, with the Achilles Project hosting Australia’s highest-grade undeveloped antimony resource. Additionally, Trigg is advancing its gold exploration efforts in Queensland’s Drummond Basin.
Investors may find Trigg Minerals appealing due to its strategic focus on antimony, a critical mineral essential for renewable energy technologies and defence applications. The company’s recent capital raise of $2.5 million, supported by strategic investors and global funds, underscores strong investor confidence in its direction. These funds are allocated to exploration and drilling activities across its antimony projects, positioning Trigg to meet the growing global demand for this vital resource.
Trigg Minerals has achieved a 300% share price return over the last three months.
Market cap: $32.52 million
Mithril Resources(ASX: MTH)
Mithril Resources is an Australian exploration company focused on precious metals, primarily gold and silver, within Mexico’s prolific Sierra Madre Gold-Silver Trend. The company’s flagship asset, the Copalquin Gold-Silver Project in Durango State, spans 70 square kilometres and encompasses several historic mining sites. Recent drilling campaigns have yielded high-grade intercepts, including 33 metres at 31.8 grams per tonne (g/t) gold and 274 g/t silver, underscoring the project’s significant potential.
For investors, Mithril presents a compelling opportunity due to its strategic positioning in a region renowned for substantial gold and silver deposits. The company’s commitment to expanding its resource base, coupled with the promising results from its exploration activities, indicates a clear trajectory towards growth. Additionally, Mithril’s experienced management team and focus on high-grade targets enhance its potential to deliver substantial returns, making it a noteworthy stock to monitor in the precious metals sector.
Mithril Resources has achieved a 276.7% share price return over the last three months.
Market cap: $61.88 million
Kalina Power (ASX: KPO)
Kalina Power Ltd is an Australian clean-tech company specialising in waste heat recovery and geothermal energy solutions. Utilising its proprietary Kalina Cycle® technology, the company converts low-temperature heat sources into electricity, enhancing energy efficiency and reducing emissions. Kalina Power’s projects span Canada, China, and the United States, with a focus on industrial applications and renewable energy generation.
For investors, Kalina Power offers a compelling opportunity in the growing clean energy sector. The company’s innovative technology addresses the increasing demand for sustainable energy solutions. Recent developments, such as a memorandum of understanding with a substantial US-based data centre developer to explore natural gas and carbon capture for powering data centres, highlight Kalina’s strategic initiatives and potential for growth. These factors position Kalina Power as a noteworthy stock to watch in the evolving energy landscape.
Kalina Power has achieved a 272.4% share price return over the last three months.
Market cap: $36.17 million
Metal Hawk (ASX: MHK)
Metal Hawk Ltd is an Australian mineral exploration company focused on early-stage discovery of gold and nickel sulphides. The company’s key projects are located in Western Australia’s Eastern Goldfields and Albany-Fraser regions, areas renowned for their rich mineralisation. Notably, the Kanowna East Project, situated near the world-class Kanowna Belle gold mine, has shown promising results in recent drilling campaigns, highlighting its potential for significant gold deposits.
For investors, Metal Hawk presents a compelling opportunity due to its strategic focus on high-potential regions and its commitment to systematic exploration. The company’s experienced management team, with a proven track record in mineral discovery, enhances confidence in its exploration activities. Additionally, Metal Hawk’s recent capital raisings and partnerships with industry leaders underscore its financial stability and growth prospects. These factors position Metal Hawk as a noteworthy stock to watch in the resource sector.
Metal Hawk has achieved a 269.6% share price return over the last three months.
Market cap: $16.64 million
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