Best stocks to buy before budget
Written by
Varun Ratra
The following ASX stocks are expected to benefit from increased government support for critical minerals, defence spending and strategic supply chain development ahead of the Federal Budget on 12 May.
Potential funding initiatives could further strengthen investor sentiment and drive continued momentum across these ASX stocks.
Austal Limited (ASX: ASB)
has a market capitalisation of $731.7 million and has emerged as one of the best ASX stocks to buy before the budget.
Recent developments turned highly positive after the Northern Territory Government and Tivan formed a dedicated Project Control Group which aims to speed up approvals and support the fast-tracked development of the Molyhil Tungsten Project and this milestone is essential ahead of a targeted Final Investment Decision in Q4 2027.
The company’s Scoping Study confirmed exceptionally strong project economics while management highlighted Molyhil as a low-capex and low-technical-risk critical minerals project that is backed by world-class tungsten grades.
Tivan will also benefit from Australian Government support for critical minerals development because future Federal Budget initiatives and government funding programs are expected to support strategic mineral supply chains.
The Speewah Fluorite Project was included in a Joint Fact Sheet by the Japanese and US Governments which highlighted its strategic importance as an important source of high-purity fluorite supply.
Alcoa Corporation (ASX: AAI)
has a market capitalisation of $23.75 billion and is one of the best ASX stocks to buy before the budget.
The company in Q1 FY26 reported revenue of US$3.19 billion and net income attributable to Alcoa of US$425 million while diluted earnings per share stood at US$1.60 despite softer conditions compared to the prior corresponding period.
A major recent development is that Alcoa along with Sojitz and the Japanese government is developing gallium recovery at one of its operating alumina refineries in Western Australia for use in semiconductors, LEDs and solar cells.
The upcoming Australian Federal Budget could also support further upside for Alcoa because the Australian government plans to provide funding incentives and policy support for the company.
Alcoa’s Aluminum segment delivered particularly strong performance as Segment Adjusted EBITDA surged to US$694 million from US$134 million in the prior corresponding period which is due to better operational leverage and stronger aluminium market conditions.
(Source: Company Reports)
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