With a number of high quality and fast-growing shares to choose from on the ASX, it can be hard to decide which ones to buy over others.
To narrow things down, I have picked out three growing companies which I feel could be top investments in September.
Here’s why I think smart investors should buy these shares today:
Altium Limited (ASX: ALU)
I think Altium is a share for smart investors to buy. It is an electronic design software platform provider which is benefiting from the Internet of Things (IoT) and artificial intelligence (AI) markets. These market are driving the development of an ever-increasing number of electronic devices, which in turn is leading to strong demand for its software. Pleasingly, these positive tailwinds are not a short term thing. Management expects them to help it grow its revenue to US$500 million in 5 to 6 years. This will be a big jump on its FY 2020 revenue of ~US$189 million.
NEXTDC Ltd (ASX: NXT)
Another top option for smart investors to consider buying is NEXTDC. It is an innovative data centre operator which owns a growing collection of world class centres in key locations across Australia. Demand for its services has been growing very strongly in recent years as businesses migrate from in-house facilities to a cloud or managed data centre platform. The good news is that this migration is only just getting started. This should mean that NEXTDC still has a very long runway for growth over the next decade and beyond. I expect this to underpin strong earnings growth for the foreseeable future.
Xero Limited (ASX: XRO)
A final option for smart investors to look at is this leading cloud-based business and accounting software provider. I’m a big fan of Xero due to the quality of its platform, its high retention rates, and its large market opportunity. At the end of July, Xero’s total subscribers had reached 2.38 million. While this is a large number, it is still only a small slice of its global market opportunity. I expect its subscriber numbers to continue to grow over the next decade, particularly in the key U.S. market. This should support strong recurring revenue and earnings growth over the 2020s.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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