10 industries and 17 stocks poised to break out in 2025

Buy Hold Sell, by Livewire Markets

Move over big tech, there are more opportunities in town.

After starting 2024 with earnings downgrades for a range of sectors and a slowdown in consumer spending, it was a bumper year for a number of sectors. Consumer discretionary was one surprise winner, with well-positioned brands like JB Hi-Fi and Nick Scali taking charge. Australian banks facing into a tougher environment continued to outperform, as did the financial sector on the whole, with insurers taking advantage of higher premiums. Biotech also started to surge, as falling rates outside of Australia and a number of successful clinical trials bolstered the sector.

Of course, the big tech companies continued to dominate and push markets to record highs - it's hard to ignore the extraordinary growth in the likes of Nvidia for example, but it's worth noting the pace of the growth seems to be moderating somewhat. With valuations at a premium in the tech sector, there are a range of other areas where fund managers are hunting for big growth. Now could be a great time to be looking at these industries and economies.

2025 has started on a promising footing. Inflation seems to be moderating, global rates are finally falling, and there are signs of strength and improvement in a range of economies. The scene has been set for a big year in markets. Is it any wonder the experts seem decidedly bullish?

2025 could be the year for healthcare companies to continue to really fly, the energy transition to push certain commodities to new heights and the return of manufacturing.

As part of Livewire’s annual Outlook Series, we recently asked 10 of Australia’s top fund managers to answer which industries, sectors or areas of the market they see the biggest growth potential in for 2025. We also asked them to name at least one stock they are using for exposure.

Our featured fund managers include (in order of appearance):

• Sam Ruiz, T.Rowe Price
• Jessica Farr-Jones, Regal Funds Management
• Nick Guidera, Eley Griffiths Group
• Elise Kennedy, Schroders
• Lucas Goode, IML
• Zoe Middleton, Platinum Asset Management
• Todd Warren, Tribeca Investment Partners
• Rachel Folder, Pendal Group
• Brittany Isakka, Spheria Asset Management
• James Barker, Ellerston Capital

Note: The information provided is not intended to be a recommendation and is offered in the spirit of the Outlook Series. None of the fund managers invest in a single industry or theme; they incorporate these within a broader diversified portfolio where they adjust exposures over time based on their analysis of activity and stocks. Please do your own research and seek advice from a professional before making any investment decisions. Past performance is not a reliable indicator of future returns.

You can watch the video by clicking the player, listen to the podcast, or read an edited transcript at the following website. These interviews were filmed on Tuesday, 10 December 2024.