Best Shares To Buy Right Now Australia – Beginner’s Guide 2022 

Fact Checked by Gary McFarlane

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

With the stock market averaging annual returns of about 10%, you might be seeking out the best shares to buy right now. But how do you filter out the good from the bad and the ugly?  

Last month the S&P 500 index lost just under 5%, putting the stock market on a bearish ebb and flow. The combination of rising interest and inflation rates, more austere monetary policies, China’s real estate issues, and the recent fuel crisis sent markets lower. Nevertheless, here are the best shares to buy right now.

Table of Contents

eToro – Best Place to Buy Shares Right Now Australia

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*Price data and returns are correct as of May 23, 2022.

Best Shares to Buy Right Now Australia

Before we dive deeper into each of the best shares to buy right now Australia, here are the top ten stocks that made our list for May 2022: 

  1. Westpac Banking Corp (ASX: WBC) – Overall Best Australian Company to Invest In
  2. Zynga Inc (NASDAQ: ZNGA) – Exciting Game Developer Going Through Lucrative Merger
  3. Merck & Company (NYSE: MRK) – Established Company with Long-Term Growth Prospects
  4. Rio Tinto (ASX: RIO) – Best Mining Stock to Buy
  5. Fisker Inc (NYSE: FSR) – Best Electric Vehicle Stock to Buy
  6. Pfizer Inc (NYSE: PFE) – Best Pharmaceutical Stock to Buy
  7. Advanced Micro Devices (NASDAQ: AMD) – Best Semiconductor Stock to Buy
  8. Southwestern Energy Company (NYSE: SWN) – Energy Stock Nearing Yearly Highs
  9. Coterra Energy (NYSE: CTRA) – Best Energy Stock to Invest In
  10. Fiverr International (NYSE: FVRR) – Exciting Growth Stock with Huge Potential

For more on how to buy shares in Australia, read our in-depth guide.

Best Shares to Buy Australia – Reviewed

1. Westpac Banking Corp (ASX: WBC) – Overall Best Australian Company to Invest In

westpac price chart

  • Industry: Banking
  • Current price: $23.41
  • Market value: 81.96bn AUD
  • Dividend yield: 5.53%
  • YTD return: +8.08%

May 23 to May 27: Westpac Banking Corporation, commonly known as Westpac, is a bank based in Sydney, Australia. Westpac is the oldest operating Australian bank and is one of the ‘big four’ within the country. The company’s shares rose admirably until November 2021 but have since pulled back around 15%.

This pullback was due to poor financial results, with optimism draining regarding some aspects of the income statement, such as margins and expenses. However, the decrease in the share price does provide a more attractive level for investors to buy shares at. Considering the share price increased by around 35% between the start of 2021 and November 2021, now could be a great time to invest.

Furthermore, Westpac is an excellent buy for dividend investors, which equates to a yield of 5.53%. Westpac also bought back around $3.5bn worth of shares, which is a bullish signal overall. With numerous analysts expecting dividends to increase in 2022, Westpac is our best pick in the market for Australian shares.

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2. Zynga Inc (NASDAQ: ZNGA) – Exciting Game Developer Going Through Lucrative Merger

Zynga price chart

  • Industry: Electronic Gaming & Multimedia
  • Current price: $8.18
  • Market value: $9.30bn
  • Dividend yield: N/A
  • YTD return: +25.08%

May 23 to May 27: Zynga is a US-based game developer best known for creating the popular Farmville game for Facebook. The company has also made widely-used platforms like Zynga Poker and Words with Friends 2, which led to Take-Two Interactive announcing its intention to acquire Zynga earlier this year. This prompted a 55% boost in the ZNGA share price, with more potential gains on the horizon.

Zynga is estimated to have an enterprise value of $12.7 billion based on Take-Two’s offer, consisting of cash plus shares. The deal is expected to close in the next few months, which will mean Zynga becomes a division of Take-Two. Considering the latter has produced popular franchises like Grand Theft Auto, this merger seems to have all the makings of a successful relationship.

Ultimately, Zynga’s experience in the mobile market will dovetail with Take-Two’s expertise in the console market, hoping to create some lucrative synergies in the years ahead. This will undoubtedly help the share price (with shares transitioning to Take-Two soon), making ZNGA a great addition to your portfolio.

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Merck & Company (NYSE: MRK) – Established Company with Long-Term Growth Prospects

Merck & Co price chart

  • Industry: Healthcare
  • Current price: $94.07
  • Market value: $238.11bn
  • Dividend yield: 3.18%
  • YTD return: +22.38%

May 23 to May 27: Merck & Co. is a US-based pharmaceutical company that produces medicines, vaccines, and animal health products. Merck’s healthcare products are used to treat various ailments, from HPV to diabetes. After hitting a yearly low in February, Merck & Co’s shares have bounced back and surged by 17%.

One of Merck & Co’s most popular products is Keytruda, a drug used to treat cancer. Sales of Keytruda continue to grow rapidly, producing over $17 billion in revenue for Merck & Co last year. Sales of Merck’s HPV vaccines were also up drastically in 2021, capping off a successful year in terms of growth.

Merck & Co’s revenue for the whole of 2021 was $48.7 billion – a 17% increase from 2020. This solid performance has helped Merck & Co deliver a solid dividend yield of 3.18%, providing scope for a noteworthy passive income stream. Finally, with the company’s forward P/E ratio still sitting at 11.99, there’s even an argument that MRK shares are currently undervalued.

68% of retail investor accounts lose money when trading CFDs with this provider.

4. Rio Tinto (ASX: RIO) – Best Mining Stock to Buy

RIO price chart

  • Industry: Metals & Mining
  • Current price: 109.50 AUD
  • Market value: 158.84bn AUD
  • Dividend yield: 9.63%
  • YTD return: +9.84%

May 23 to May 27: Rio Tinto is one of the world’s largest metal and mining companies and has been in operation for over 140 years. The company deals in various commodities, including iron ore, copper, uranium, aluminium, and diamonds. RIO shares have been up and down lately, although they are now hovering around the $112 level.

One of the main reasons to add RIO shares to your portfolio is the company’s attractive dividend. Based on today’s date, the yield stands at 9.63%, which is hugely beneficial in today’s high-inflation environment. Notably, Rio Tinto’s forward yield is 11.18%, highlighting that RIO shares will be ideal for long-term passive income.

Although shares have dipped recently due to lockdown fears in China and poor shipment figures from Q1 2022, this does provide an opportunity to buy at a discount. Operating margins are a remarkable 46.79%, and the company’s forward P/E ratio is only 6.24 – hinting there could be some fantastic value potential in RIO shares.

68% of retail investor accounts lose money when trading CFDs with this provider.

5. Fisker Inc (NYSE: FSR) – Best Electric Vehicle Stock to Buy

Fisker price chart

  • Industry: Auto Manufacturers
  • Current price: $10.96
  • Market value: $3.26bn
  • Dividend yield: N/A
  • YTD return: -34.41%

May 23 to May 27: Fisker is a US-based electric vehicle manufacturer headquartered in Los Angeles. The company went public in mid-2020 through a merger with Spartan Energy Acquisition Corp, although it completed a reverse merger later that year. Shares have had a tough time of late, as have all growth stocks, although there could be signs of optimism soon.

Fisker announced last month that it had over 40,000 reservations for its Ocean SUV, which is scheduled to begin being produced in November. Although these SUVs will likely not start rolling out until 2023, this does highlight the demand that Fisker is experiencing since the models on offer have a price point that will be attractive to many consumers.

Fisker’s SUV will be built by Magna International, which means that the company doesn’t have to invest in setting up a production facility. This means Fisker has a different business plan than the likes of Tesla and Rivian, making the business a lot leaner. Overall, it’ll be interesting to see if this strategy pays off down the line – meaning Fisker could be an EV stock with huge potential.

68% of retail investor accounts lose money when trading CFDs with this provider.

6. Pfizer Inc (NYSE: PFE) – Best Pharmaceutical Stock to Buy

Pfizer share price

  • Industry: Pharmaceuticals
  • Current price: $52.47
  • Market value: $294.40bn
  • Dividend yield: 3.05%
  • YTD return: -7.38%

May 23 to May 27: Pfizer is a pharmaceutical corporation that derives most of its revenue from the production of vaccines. The company entered the public consciousness in 2021 due to the rollout of its COVID-19 vaccine, which has been deployed worldwide. The PFE share price has been on a rollercoaster this year, although it is up by over 12% in the past month.

The company’s prospects hinge on the FDA’s decision about whether Pfizer’s COVID-19 vaccine can be used on children under five years old. Children within that age group have not yet received vaccines, so if Pfizer does get the green light, it would be a massive boost to the company’s revenues. However, Moderna’s vaccine is also being considered, meaning there will be some hefty competition.

Pfizer has estimated that it will generate $32 billion in revenue from its COVID-19 vaccine in 2022 – which could be boosted further if the company can deploy it to under five-year-olds. Finally, given that the FCA has recently given emergency use authorization for the company to provide its vaccine booster to 5-11-year-olds, the signs are definitely positive for Pfizer.

68% of retail investor accounts lose money when trading CFDs with this provider.

7. Advanced Micro Devices (NASDAQ: AMD) – Best Semiconductor Stock to Buy (BUY)

AMD price chart

  • Industry: Semiconductors
  • Current price: $93.75
  • Market value: $151.94bn
  • Dividend yield: N/A
  • YTD return: -37.60%

May 23 to May 27: Advanced Micro Devices (commonly referred to as AMD) is a US-based semiconductor manufacturer. The company develops products for a wide range of industries, including motherboards, GPUs, server chips, and more. Although the AMD share price has been bearish of late, the recent 22% surge has given hope to investors.

Much of this was to do with investment bank Piper Sandler raising its price target drastically. This was seen as a hugely bullish move, which combined well with AMD’s recent quarterly results. These results showcased a revenue increase of 55%, which soared to 71% when including the revenue from recently-acquired Xilinx.

The acquisition of Xilinx, which should help AMD gain an even larger share of the semiconductor market, and the company’s strong financials prompted management to raise full-year revenue guidance by nearly $5 billion. With AMD currently having a forward P/E ratio of 21.37, well below NVIDIA’s, there’s certainly scope for a rebound with this stock.

68% of retail investor accounts lose money when trading CFDs with this provider.

8. Southwestern Energy Company (NYSE: SWN) – Energy Stock Nearing Yearly Highs

SWN share price

  • Industry: Energy
  • Current price: $7.09
  • Market value: $7.91bn
  • Dividend yield: N/A
  • YTD return: +51.17%

May 23 to May 27: Southwestern Energy is a US-based company specializing in natural gas exploration. Most of the company’s produce is in the form of natural gas, although it also produces natural gas liquids and a small amount of petroleum. The SWN share price is trading at $7.57 at the time of writing – a 20% increase in the past ten days.

The company’s shares benefitted from Capital One Finance raising their price estimates for Q2 2022 EPS. Capital One’s analysts increased EPS estimates by $0.04, highlighting their bullish sentiment. In addition to this, Southwestern Energy has also been boosted due to the rise in natural gas prices, which are at their highest level since 2008.

Southwestern’s forward P/E is also still attractive, currently sitting at 5.28. This hints that shares could still be undervalued relative to earnings, which will be of note to investors looking to gain exposure to the energy sector.

68% of retail investor accounts lose money when trading CFDs with this provider.

9. Coterra Energy (NYSE: CTRA) – Best Energy Stock to Invest In

Coterra price chart

  • Industry: Energy
  • Current price: $31.69
  • Market value: $577.20m
  • Dividend yield: 1.84%
  • YTD return: +61.93%

May 23 to May 27: Coterra Energy is a hydrocarbon exploration company headquartered in Houston, Texas. The company’s main product is natural gas, although it also produces petroleum and natural gas liquids. CTRA shares have had an exceptional 2022 so far and recently hit the same level that they were back in 2015.

Although oil isn’t Coterra’s main product, the company has benefited from rising oil prices. This is excellent news considering that Coterra has increased its oil production by 9% from Q4 2021, with natural gas prices also contributing to its solid quarterly revenues.

As you can imagine, Coterra is currently generating vast amounts of free cash flow, which allowed the company to boost its quarterly dividend to $0.15 per share. This equates to a 20% dividend increase, although Coterra also has a variable component to its dividend, which pushes the yield even higher. Combine this with the company’s ongoing share repurchase programme, and the signs all point to CTRA shares being a great way to gain exposure to the energy sector.

68% of retail investor accounts lose money when trading CFDs with this provider.

10. Fiverr International (NYSE: FVRR) – Exciting Growth Stock with Huge Potential

Fiverr price chart

  • Industry: Internet Content & Information
  • Current price: $38.15
  • Market value: $1.40bn
  • Dividend yield: N/A
  • YTD return: -65.16%

May 23 to May 27: Rounding off our list of the best stocks to buy now is Fiverr. Fiverr is an online marketplace for freelancers, allowing clients to connect with people who can perform the work they need in a fully-digital manner. After hitting an all-time high in February 2021, the FVRR share price has sunk rapidly and now trades 87% below that level.

However, shares did rise by 41% last week, which piqued investors’ interest. Last week, Fiverr released its Q1 2022 results, which saw non-GAAP EPS hit $0.11. This easily beat analysts’ estimates and was far better than the company’s loss in Q1 2021.

Revenue also hit $86.7 million, which was higher than analysts expected. Although management decreased their full-year guidance slightly, there are still signs of optimism about Fiverr’s prospects. With new service additions coming and a continuing trend towards remote work, Fiverr could be an outstanding growth stock to buy for its rebound potential.

68% of retail investor accounts lose money when trading CFDs with this provider.

Best Shares To Buy Right Now & Watch – May 23 to May 27

Best shares to buy now

When looking for the best shares to buy right now, some didn’t quite make the list. As such, here’s another stock that we think is worth adding to your watchlist in May 2022. 

Zillow Group (NASDAQ: ZG)

Zillow recently announced the suspension of Zillow Offers, its home-buying programme, justifying the move on supply chain problems and labor shortages. This announcement sent the stock price on a downward spiral, worsening Wall Street’s already bearish temperament, and Zillow stock is now trading at -55.56% below its 52-week high. 

That’s bad for existing shareholders, but for long-term investors, this is a great opportunity to buy while the stock price is low in anticipation of eventual growth. 

Zillow is a real estate technology company that focuses on residential properties. Its platform connects buyers, sellers, and renters with brokers and property managers. Zillow also offers mortgage and closing services to homebuyers, as well as Zillow Offers, which buys, restores, and resells homes.

What does the future hold for Zillow Group? 

Thinking forwards, Zillow has a lot of space for growth. The National Association of Realtors estimates that 6 million existing homes will be sold in the United States by the end of the fourth fiscal quarter. Real estate transaction fees alone raise Zillow’s addressable market to $112 billion, assuming an average selling price of $372,600 and a 5% commission. After accounting for house loans, closing services, and rental properties, Zillow’s target market is estimated to be around $300 billion.

Buy ZG stock with eToro

68% of retail investor accounts lose money when trading CFDs with this provider.

How to Buy the Best Shares Now

Trading stocks online is now a lot easier than it was a decade ago. But as online trading becomes more accessible, the market also becomes more saturated with an influx of stock brokers all offering the best services. So how do you choose the right broker for your needs? 

Fortunately, we’ve spent the time researching the top-rated stock trading platforms so that you don’t have to. All in all, we found eToro to be the best stock broker in 2022. With a minimum investment of just $50 you can buy fractional shares with 0% commission, as well as use copy trading to generate a passive income. 

Without further ado, let’s explore how to invest with eToro Australia

Step 1: Open an eToro Brokerage Account

eToro open an account

Go to the eToro website and click the ‘Join Now’ button. After that, you’ll be prompted to enter a valid email address as well as a username and password. Click ‘Create Account’ once you’re done. 

Step 2: Verify your Account

Since eToro is strictly regulated by the FCA, CySEC, and ASIC, new users must verify their accounts before trading. To do so, go to your account dashboard and select the ‘Complete Profile’ button, then fill out the relevant personal information. To verify your account, you’ll need to upload proof of identity (a copy of your passport or driver’s licence) and proof of address (a copy of a bank statement or utility bill).

Step 3: Fund your Account

 

eToro’s minimum deposit is just $50, making it one of the most low-cost brokers on the market. You’ll also have access to the following deposit methods, which are all completely free:

  • Credit Card
  • Debit Card
  • Bank Transfer
  • PayPal
  • Skrill
  • Neteller
  • Klarna
  • Trustly

Step 4: Buy Shares

You’re ready to trade once you’ve funded your account. Type the name of the stock you want to invest in into the search field — for this guide, we’ll be looking to buy Amazon stock (NASDAQ: AMZN). When you click ‘Trade,’ an order box similar to the one below should pop up.

Search for AMZN stocks on eToro

Simply type in the amount you want to invest (a minimum of $50) in this box. Decide whether you’d like to use a stop-loss or take-profit order. Moreover, if you’re looking to trade CFDs you’ll need to choose the amount of leverage. Click ‘Open Trade’ once you’re satisfied with everything to buy your chosen shares. 

set order

How Do We Decide Which Shares Are Best?

Determining which stocks are the best to buy right now requires extensive research and a thorough understanding of the stock market. We use four forms of analysis to ensure our stock picks are as precise as possible:

How we decide which are the best stocks to buy right now in Australia

 

  • Fundamental Analysis
  • Technical Analysis
  • Analyst Ratings
  • Market News

By integrating these four methods of analysis, we can generate stock recommendations that are supported by sound logic and have a good chance of yielding profits. Let’s take a closer look at how we use different analysis techniques to find the best shares to buy right now. 

Fundamental Analysis 

Fundamental analysis is a technique experienced investors use when trying to assess an assets market value. This type of analysis looks at factors that could influence its future share price. Macroeconomic events, as well as financial statements and industry trends, are all key focus areas that market analysts and expert investors use. 

Fundamental analysis is one of two major types of market analysis. While technical traders rely on charts for all of their trading data, fundamental traders consider aspects other than the asset’s price fluctuations. This could include past performance, P/E ratios, EBITDA and more. 

Technical Analysis 

Technical analysis uses historical price charts and market statistics to examine and forecast price movements in the financial markets. It is founded on the concept that if a trader can pick out historical market trends and patterns, they may be able to anticipate future price movements accurately.

While fundamental analysis focuses on an asset’s ‘real value,’ taking into account both external and intrinsic elements, technical analysis is only based on an asset’s price charts. The only way to predict future movements is to recognise patterns on a chart.

Analyst Ratings 

analyst ratings

The analyst ratings scale is a little more complicated than the usual “buy, hold, and sell” recommendations. Multiple phrases for each of the ratings (sell, strong sell, buy, strong buy), as well as a couple of new terms: underperform and outperform, can be used interchangeably, but they carry different meanings. 

To make matters worse, not every company follows the same rating system: a “outperform” for one analyst could be a “buy” for another, while a “sell” for one investor could be a “market perform” for another. When considering analyst ratings, it’s a good idea to familiarise yourself with the rating scale used by the provider, just so you know exactly what they’re inferring. 

Market News 

Market News

In the investment world, market news can have a big impact on the volatile stock market. It can update you with useful information to help you make informed investment decisions — for example, once a business releases its earnings report, you can get some useful insights to help you decide whether to go long or short.

But it doesn’t end there; market news might influence your feelings about a certain investment, company, sector, or market. In other words, market news can shape and affect your feelings and opinions, which might lead to a buy or sell decision. 

If you would like to learn more about the stock trading process, you can read our how to buy shares Australia guide for a closer look.

Let’s look at a recent example…

Take, for example, the global pandemic. As Covid-19 spread rapidly last year, most countries chose to roll out social lockdowns, requiring businesses to close and consumers to sit at home. Investors panicked when faced with bad news and uncertainty, and markets all over the world plummeted in March 2020. 

Then, as governments announced new measures to boost the global economy, investors were less skeptical, and markets began to rise again.

With that in mind, we also consider the latest market news when picking the best shares to buy right now. This way, we give you access to the best shares to buy right now Australia that are backed by the latest market news. 

Best Shares to Buy – Bottom Line

There’s a global effort to reduce carbon emissions and electrify the economy. This means investors are keeping a close eye on the renewable energy and electric vehicle sectors. Westpac and Fisker, Inc shares are two to watch throughout 2022. Furthermore, the Covid-19 pandemic has reshaped the way most companies operate. With more people working from home, companies like Zynga have seen a huge upswing in engagement over recent months.  

All in all, if you’re looking for the best shares to buy right now, we recommend using eToro. This leading copy trading platform is home to over 24 million traders, is regulated by several top-tier financial authorities, offers commission-free stock trading, and offers the best trading app Australia

Get started today by opening an account with eToro right now!

eToro – Best Shares to Buy Right Now with 0% Commission

68% of retail investor accounts lose money when trading CFDs with this provider.

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About Dassos Troullides PRO INVESTOR

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, forex, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading. Dassos also writes for TradingPlatforms.com, BuyShares.co.uk, LearnBonds.com, InsideBitcoins.com and ForexCrunch.com