2 strong Australian stocks to buy now with $8,000
Some Australian stocks have significant return potential due to the size of the markets they target and ongoing investment in growth.
Not every business is destined to become a significant winner in a large total addressable market (TAM). But some Australian businesses are proving they have the economic moat and drive to gain market share.
If I were looking for two ASX shares that weren't tech stocks as opportunities, the two Australian stocks below would be high on my list, with $8,000 to invest.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is a leading business in the investment space.
It helps funds management businesses (affiliates) grow by taking minority stakes in them and providing a range of services, including seed funds under management (FUM), working capital, distribution, client services, fund administration, compliance, finance, legal, and technology.
By allowing the fund manager to focus solely on investing, Pinnacle ensures the investment team has more time to deliver what clients want.
Some of the fund managers involved include Hyperion, Plato, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Coolabah, Aikya, Five V, Life Cycle, Pacific Asset Management and Advantage Partners.
I like how Pinnacle regularly expands its portfolio. Two recent additions include Langdon (a global and Canadian small-cap share manager) and Advantage Partners (Japan's leading home-grown private equity platform).
In FY26, the company reported that its FUM grew by 28% to $229.4 billion, and the net profit after tax (NPAT) increased 31% (with underlying net profit growth of 21%).
Impressively, 81% of affiliate strategies with a track record of five years or longer have outperformed over a five-year period.
According to the projection on Commsec, the Pinnacle share price is now valued at just 11x FY29's estimated earnings.
Breville Group Ltd (ASX: BRG)
Breville is one of the world's leading coffee machine businesses with a number of brands, including Breville, Sage, Lelit and Baratza. It also has a coffee bean business called Beanz.
Despite headwinds from tariffs and related factors, the business reported revenue growth of 6.7% in FY26 and net profit growth of 1.7%.
I think the long term is very promising, given the pace of growth in new markets such as Mexico, South Korea, the Middle East, and China. In FY26, these markets saw net sales growth of 74% in constant currency terms. If they continue to grow at a high double-digit rate, these new markets will quickly become meaningful contributors to Breville's business.
Beanz continues to grow, with it recently going live in the Netherlands with 12 specialty roasters.
I think the business will achieve good operating leverage in FY27. In FY24, the last complete year before tariffs impacted the company, revenue grew 10.1%, gross profit grew 10.3%, operating profit (EBITDA) grew 11.5%, and net profit rose 16.1%.
According to Commsec's projection, the Breville share price is valued at 22x FY29's estimated earnings.
The post 2 strong Australian stocks to buy now with $8,000 appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has positions in Breville Group and Pinnacle Investment Management Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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