Best Shares To Buy Right Now Australia – Beginner’s Guide 2021 

Fact Checked by Gary McFarlane

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

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*Price data and returns are correct as of December 6, 2021.

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 this month in 2021: 

  1. Nike (NYSE: NKE) – Overall Best Share to Buy in Australia
  2. Fiverr (NYSE: FVRR) – Best shares to buy for exposure to a thriving growth market
  3. Rio Tinto (NYSE: RIO) – Best Australian Share for High Dividends
  4. Airbnb (NASDAQ: ABNB) – Best Travel Share to Buy Today
  5. Lululemon Athletica (NASDAQ: LULU) – Best shares to buy right now 
  6. PayPal Holdings (NASDAQ: PYPL) – Best shares to buy as e-commerce continues to grow
  7. Lucid Group (NASDAQ: LCID) – Best Share for Exposure to the EV Market 
  8. BHP Group (ASX: BHP) – Best Australian Share to Buy for 2022
  9. Berkshire Hathaway Inc. (NYSE: BRK.B) – Best shares to buy right now that’s run by Warren Buffett
  10. The Boeing Company (NYSE: BA) – Best Airline Share to Buy Now

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

Best Shares to Buy Australia – Reviewed

1. Nike (NYSE: NKE) – Overall Best Share to Buy in Australia Now (BUY)

Nike price chart

  • Industry: Footwear & Accessories
  • Current price: $170.24
  • Market value: $269.46bn
  • Dividend yield: 0.72%
  • YTD return: +21.51%

December 6 to December 10: Everyone has heard of Nike. The American footwear giant has a market cap of $268.13bn and is the world’s largest athletic shoes and apparel supplier. Nike’s shares reached an all-time high of $179.10 as recently as November 2021, although the price has now pulled back slightly from this level.

However, there are various reasons to consider adding Nike to your portfolio. Firstly, Nike recently increased its dividend to $0.30 per share, an 11% increase from previous levels. This increase has been fuelled by strong financial performance, which saw Nike bring in $12.24bn during the company’s first quarter of its 2022 fiscal year.

Looking ahead, analysts expect further growth, with Nike Direct being one of the major drivers. This segment focuses more on direct to consumer sales, which has become a significant revenue driver in recent years. With supply chain issues easing worldwide, the future certainly looks bright for Nike and its shareholders.

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2. Fiverr (NYSE: FVRR) – Best shares to buy for exposure to a thriving growth market

Best shares to buy - FVRR

  • Industry: Media, online outsourcing
  • Current price: $123.70
  • Market cap: $4.51bn
  • Dividend yield: N/A
  • YTD return: -37.76%

December 6 to December 10: The main reasons for investing in Brookfield Renewable are equally valid for Fiverr (NYSE:FVRR). Both equities are trading around their all-time highs. Fiverr, like Brookfield Renewable, is a market leader that’s riding on a bullish upswing.

In this situation, that market is freelancing. Fiverr is a website that links freelancers with businesses that require digital services. Accounting, copywriting, graphic design, programming, and many other services are available. If it can be done online, Fiverr may have a market for it.

Fiverr’s booming freelance service 

The magic ingredient that’s driving the company’s recent success is that it makes the freelancing process seamless. Buyers of digital services benefit from transparency, as the price and scope of work are set in advance. Freelancers are not required to compete for work or negotiate.

Some investors may be concerned about Fiverr’s valuation. Its stock is currently trading at a whopping 1,670 times forecast earnings. While the stock may appear to be wildly expensive, it isn’t. Fiverr is aiming for a greater share of the $115 billion market. Its current market capitalization is $6.72 billion. Remote working is quickly becoming the new normal, giving Fiverr a strong foothold to lead the way.

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3. Rio Tinto (RIO) – Best Australian Share for High Dividends

rio tinto price chart

  • Industry: Mining
  • Current price: $93.82
  • Market value: 145.76bn AUD
  • Dividend yield: 10.05%
  • YTD return: -18.67%

December 6 to December 10: If you’re looking for an Australian company that pays a high dividend, then Rio Tinto certainly fits the bill. Rio Tinto is the world’s second-largest mining company, focusing on iron ore, copper, diamonds, gold, and uranium. Rio Tinto currently pays a huge dividend yield of 11.06%, which is far higher than most other companies – making it the ideal investment for passive income investors.

Rio Tinto’s share price has had a tough time since May, with fluctuating commodity prices causing its shares to lose around 35% of their value. Rio Tinto is particularly susceptible to these prices, as its materials have their value tied to the market’s value. If commodity prices fall, it directly affects Rio Tinto’s revenues.

On the other hand, rising commodity prices are an excellent thing for the company. We saw this earlier in the year, when Rio Tinto rose to heights not seen since 2008. If these prices

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

4. Airbnb (NASDAQ: ABNB) – Best Travel Share to Buy Today

airbnb price chart

  • Industry: Lodging
  • Current price: $175.13
  • Market value: $109.91bn
  • Dividend yield: N/A
  • YTD return: +25.79%

December 6 to December 10: Airbnb has had a fantastic November, with the share price increasing by 25% in a matter of weeks. Much of this increase can be attributed to stellar earnings combined with the emergence from lockdowns, which has helped push Airbnb’s share price back towards February’s all-time highs. However, the growth isn’t stopping there, with many more reasons to be optimistic for the months ahead.

Revenues grew 67% from Q3 2020, although this doesn’t paint the complete picture given that last year was interrupted by the COVID-19 pandemic. Average rates charged by hosts are also up, which is an essential driver of revenue for the company. Finally, the company has made $1.8bn in free cash flow over the last year, putting Airbnb in a solid financial position.

Looking ahead, Airbnb is poised to benefit from changing consumer tastes, as more people working from home has led to increased demand for homestays. Furthermore, many people are opting to work abroad, leading to more long-term stays in apartments. Overall, this growth in the company shows no signs of stopping, which is why Airbnb is so attractive at present.

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

5. Lululemon Athletica (NASDAQ: LULU) – Best shares to buy right now 

Best shares to buy australia LULU stock

  • Industry: Retail
  • Current price: $418.30
  • Market cap: $56.56bn
  • Dividend yield: N/A
  • YTD return: +17.37%

December 6 to December 10: Despite the fierce competition in the global athletic gear market, Lululemon Athletica (NASDAQ:LULU) stands out for its strong brand presence and rapid expansion. Over the past five years, the LULU stock price has outperformed even household names like Nike. In the last quarter, revenue increased by 61 percent year over year, while profit increased by 140 percent. Due to this outstanding performance, LULU’s management has raised financial expectations for the remainder of this year.

In the most recent quarter, direct-to-consumer revenue contributed 41.2 percent of total revenue, while Lululemon’s gross margin of 58.1 percent outperformed Nike’s 46.5 percent gross margin. 

When life gives you lemons, Lululemon Athletica makes lemonade 

The key to Lululemon’s recent success lies with the fact that it sells its products via its proprietary website and retail stores. While not promoting and selling goods via third-party brands such as JD Sports and Footlocker may seem insignificant at first glance, it lets Lululemon Athletica maintain full control over how much it sells its products for. 

Lululemon has also gained access to the booming at-home fitness industry with the recent acquisition of Mirror the nearly invisible home gym’. This could help drive even more growth in the future. Earnings per share are expected to rise by 66 percent by the end of 2021, 21 percent in 2022, and 20 percent in 2023, comfortably justifying what appears to be a high forward price-to-earnings ratio of 54.

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

6. PayPal Holdings (NASDAQ: PYPL) – Best shares to buy as e-commerce continues to grow

Best shares to buy now PYPL stock

  • Industry: Software & Tech Services
  • Current price: $184.27
  • Market cap: $216.10bn
  • Dividend yield: N/A
  • YTD return: -20.48%

December 6 to December 10: A boosted e-commerce sector has been just one of the by-products of the pandemic. PayPal Holdings, a leading fintech company, boasting over 400 million active users, wrapped up $311 billion in total payment volume during Q3 2021. This demonstrates the key part that PayPal now plays in the global economy. 

Venmo, PayPal’s peer-to-peer payments service, saw an increase in total payment volume by 58 percent year-over-year and now has 75 million users. Clients can now purchase and trade Bitcoins via the mobile app. PayPal’s main consumer app has received big updates, including access to a high-yield savings account, promotions and rewards, early direct deposit, and bill pay.

PayPal Purchases Paidy 

PayPal’s $2.7 billion acquisition of the popular Japanese buy now, pay later (BNPL) company Paidy will help it break into the third-largest e-commerce market. While PayPal has already introduced its own BNPL product in Q4 2020, including Paidy within its existing platform makes perfect sense, especially in a place like Japan where cash is still king. PayPal currently operates in over 200 jurisdictions, so it is no stranger to global expansion.

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7. Lucid Group (LCID) – Best Shares to Buy for Exposure to the EV Market

LCID price chart

  • Industry: Automotive
  • Current price: $42.95
  • Market value: $71.04bn
  • Dividend yield: N/A
  • YTD return: +326.89%

December 6 to December 10: Lucid Group is one of the most exciting EV manufacturers on the market right now, having recently begun delivering its first car, the Lucid Air. Peter Rawlinson, Tesla’s ex-chief engineer, is the company’s CEO, meaning that they have immense experience and knowledge in this area. This has helped Lucid create vehicles with a fantastic range, with the Dream Edition of the Lucid Air able to go 520 miles on one charge!  

Lucid is much different from Tesla because its cars are priced at the ‘premium’ end of the spectrum and are targeting consumers looking for a luxury experience. The Dream Edition of the Lucid Air retails at $169,000, far higher than most of Tesla’s models.

However, this approach has paid dividends so far, with plans to produce 20,000 vehicles in 2022. The company is also expanding its Arizona facility and aims to launch a luxury electric SUV in 2023. So, although the company is just beginning its ascent, now could be a great time to add it to your portfolio before it explodes in the years to come.

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

8. BHP Group (ASX: BHP) – Best Australian Share to Buy for 2022 (HOLD)

BHP price chart

  • Industry: Mining
  • Current price: $40.23
  • Market value: 201.67bn AUD
  • Dividend yield: 10.01%
  • YTD return: -6.57%

December 6 to December 10: BHP is a mining firm headquartered in Melbourne, Australia. The company has operations in numerous countries worldwide and has over 80,000 employees. Right now, BHP is around 27% down from July’s highs, offering investors an opportunity to purchase shares at a lower price.

Right now, BHP has an exceptional dividend yield of 10.17%, which is ideal for investors looking to generate a passive income stream. Furthermore, the company has a forward P/E ratio of 7.39. This implies that BHP’s shares are undervalued at present, which is good news for investors.

Looking ahead, although mining is a notoriously volatile sector, there are reasons to be optimistic. Recent months have seen BHP’s share price fall due to decreased commodity prices – although these commodities could become more valuable in 2022 as economies ramp up. If this occurs, it’ll have a knock-on effect on BHP’s revenues, which could translate into share price gains in the year ahead.

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

9. Berkshire Hathaway Inc. (NYSE: BRK.B) – Best shares to buy right now that are run by Warren Buffett

Best shares to buy Australia - BKR.B stock

  • Industry: Insurance
  • Current price: $282.03
  • Market cap: $621.18bn
  • Dividend yield: N/A
  • YTD return: +23.43%

December 6 to December 10: Another one of the best shares to buy right now Australia is Berkshire Hathaway stock. BRK.B stock is a strong contender for one of the best shares to buy right now with a market cap of  $651.90B. 

Berkshire Hathaway’s large ownership of insurance companies and energy firms, while also being well-known for its market-beating stock portfolio, makes it very appealing in today’s inflationary landscape. 

Warren Buffet: the best investor of the 21st Century? 

Berkshire Hathaway, in addition to its track record, is led by Warren Buffett, widely recognised as one of the greatest investors in history. 

Buffett, who has managed Berkshire Hathaway as a holding company as well as a conglomerate with fully owned subsidiaries, gets the majority of the credit for the business’s success, as his value investing strategy has provided early investors with sky-high profits.

Will you be adding BRK.B stock to your investment portfolio today? 

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

10. The Boeing Company (NYSE: BA) – Best Airline Share to Buy Now

boeing price chart

  • Industry: Aerospace Defence
  • Current price: $204.45
  • Market value: $120.03bn
  • Dividend yield: N/A
  • YTD return: +0.96%

December 6 to December 10: The Boeing Company designs and produces aeroplanes, rockets, satellites, and missiles, making them the third-largest defence contractor in the world based on 2020 revenues. The company is headquartered in Illinois and has four main divisions, each focusing on a specific business area. At present, The Boeing Company has a market cap of just over $129bn and is up over 13% in the year to date.

Boeing’s share price has been steadily climbing in the past month as governments are now optimistic that the pandemic could be over by January 2022. Vaccine uptake and new drugs mean that the impact of the pandemic may be a thing of the past within the next few months – which is excellent news for commercial airline companies such as Boeing. Furthermore, international bookings are increasing across the board, with the US now open to foreign travellers.

However, Boeing’s issues with the 787 Dreamliner have caused concern with shareholders, whilst revenues fell short of projections in Q3. This may mean that investors need to be patient whilst these issues are ironed out and international travel ramps up to total capacity. Overall, Boeing looks set to continue rising into 2022, making it a solid long-term play.

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

Best Shares To Buy Right Now & Watch – December 6 to December 10

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 December 2021. 

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 2021. 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. Nio and Lucid Group shares are two to watch throughout Q4 2021. Furthermore, the Covid-19 pandemic has reshaped the way most companies operate. With more people working from home, companies like Fiverr, Home Depot, Lululemon Athletica, and PayPal have seen a huge upswing in sales and 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 20 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