Top Australian stocks to buy right now with $2,000

If you are fortunate enough to have $2,000 to invest into Australian stocks right now, then you’re in luck!

That’s because the Australian share market is home to many stocks that have delivered years of consistent growth, resilient earnings, and strong returns for patient shareholders.

And at present, two standout names look like particularly strong candidates for anyone putting $2,000 to work.

Here are two top Australian stocks to buy today with a $2,000 investment.

ResMed Inc. (ASX: RMD)

The first Australian stock is ResMed. It is one of the ASX’s global champions. ResMed specialises in sleep apnoea treatment devices and cloud-connected care solutions, which is a market that continues to expand rapidly.

An estimated one billion people worldwide suffer from sleep apnoea, with the vast majority still undiagnosed. But that is changing. With smart watches and other devices now able to diagnose the condition, awareness is rising fast.

That enormous patient pool gives ResMed a multi-decade runway of demand. And unlike many medical device companies relying on one-off product sales, ResMed benefits from recurring revenue streams through masks, accessories, and data subscriptions.

In addition, while there were fears that weight loss wonder drugs could impact its market, the company disagrees and believes it will support market growth through raising awareness and combination therapies.

Analysts at Macquarie are bullish on ResMed. They currently have an outperform rating and $49.20 price target. This implies potential upside of 30% for investors from current levels.

TechnologyOne Ltd (ASX: TNE)

Another Australian stock that could be a top buy is TechnologyOne. It is one of the most reliable compounding machines on the ASX.

TechnologyOne provides mission-critical enterprise software to governments, universities, and large organisations across Australia and the UK. These are customers that are notoriously sticky and unlikely to switch providers.

Its transition to a software-as-a-service (SaaS) model has transformed the business. Annual recurring revenue continues to grow strongly, margins have expanded, and the company has now delivered more than a decade of uninterrupted profit growth.

The even better news is that management believes this positive form can continue. So much so, it has stated its belief that the company could double in size every five years based on its growth strategy.

So, with its share price down heavily from recent highs, now could be an opportune time to invest.

UBS certainly thinks this is the case. It recently put a buy rating and $38.70 price target on its shares. This suggests that upside of over 35% is possible from current levels.

The post Top Australian stocks to buy right now with $2,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, ResMed, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.