Could These ASX Stocks Be the Next Blue-Chip Contenders for Your Watchlist?

April 29, 2025 03:17 PM AEST | By Team Kalkine Media

Could These ASX Stocks Be the Next Blue-Chip Contenders for Your Watchlist? — Image source: Shutterstock

Reece Ltd (ASX:REH) – A Century of Strength and Expansion

Reece Ltd, Australia’s largest supplier of plumbing and bathroom products, boasts a proud legacy of over a century. Its business model has evolved beyond traditional plumbing supplies to include irrigation systems, pool products, civil construction solutions, and HVAC (heating, ventilation, and air-conditioning) services.

Despite operating in a mature sector, Reece has demonstrated steady revenue growth over the years. While its dividend yield averages a modest 1.1% annually over the past five years, the consistency of its payouts reflects financial stability.

Key financial metrics paint a healthy picture. In FY24, Reece reported a debt-to-equity ratio of 47.2%, suggesting a solid balance sheet with more equity than debt. Additionally, the company's return on equity (ROE) stood at 11.2% for the fiscal year, comfortably exceeding the 10% benchmark often sought in well-established businesses.

HUB24 Ltd (ASX:HUB) – Driving Growth Through Innovation

HUB24 Ltd has firmly positioned itself within the wealth management software industry. Its flagship platforms – HUB24, Class, and myprosperity – cater to financial advisers, accountants, and clients seeking seamless investment, superannuation, and financial management services.

Over the past three years, HUB24 has achieved remarkable revenue growth of 44.4% annually, culminating in $328 million in revenue in FY24. Net profit has also surged from $10 million to $47 million during this period. Its most recent ROE figure of 9.2% indicates a company on the cusp of mature profitability, supported by consistent operational improvements.

HUB24's emphasis on service quality and innovation has earned it top rankings in industry satisfaction and brand reputation surveys throughout 2024, cementing its reputation as a leader in financial technology solutions.

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