Day: December 23, 2020

2 ASX growth shares to buy

Investor riding a rocket blasting off over a share price chart

Are you looking for a growth share or two to buy in 2021? Listed below are two top growth shares to look at.

Both have been growing strongly in recent years and have been tipped to continue this positive form in the 2020s. Here’s why they are highly rated:

Altium Limited (ASX: ALU)

Altium is a leading printed circuit board (PCB) design software provider. Its software is used by countless companies around the world to design the complex circuit boards that you’ll find inside almost all electronic devices.

The good news for Altium is that due to the artificial intelligence and internet of things booms, there has been a proliferation of electronic devices over the last decade. This rapid growth is expected to continue over the next decade, which should underpin growing demand for its award-winning software.

Management is confident in its growth trajectory and is targeting revenue of US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue.

Analysts at Morgan Stanley are confident on its future. They have an overweight rating and $40.00 price target on the company’s shares.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. Its software streamlines processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform.

At present the company is operating in both the ANZ and UK markets. In respect to the latter, the company has just bolstered its position in this $6.8 billion market with the acquisitions UK-based Breathe and Webexpenses. Importantly, this also provides it with plenty of cross sell opportunities for its existing services.

A recent note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the company’s shares to $9.70.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and Elmo Software. The Motley Fool Australia has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Merry Christmas, and here’s to a brighter 2021…

Santa at the beach gives a big thumbs up, indicating positive sentiment for the year ahead for ASX share prices

It’s become something of a tradition for me to share a ‘Foolish Christmas Carol’ in this space around this time each year.

Yes, it’s corny. But also heartfelt and hopefully a little fun. And frankly, I’ve never been cool, so there’s little credibility left to lose, on that score!

I generally take the words of a well-known Christmas song, add a little investing wisdom, and use it as an opportunity to say thank you to our readers and members. We know there are a plethora of investing resources out there, and we appreciate your interest and trust. It’s a trust we hold with no little weight.

So, in keeping with that tradition, I will do the same this year.

But also, this year, something a little extra.

2020 has been a helluva year. Some people will finish it in better shape than they started, having kept their jobs and their health, and having perhaps saved and made a few bob along the way.

But many of us will be glad to see the end of 2020. It’s been challenging on a lot of fronts: health, finances and emotional wellbeing. Fires, droughts, floods, and yes, bloody coronavirus. If you’re worn out, and have had enough, I hope the New Year lets you turn a new page.

A reminder, too, that things tend to get better, over time. No, not in a straight line. And not for everyone, all the time. But we make progress. The future will, I believe, be better than the past (and in no small part because of people like you and me who continually strive for ‘better’ in all walks of life).

So, this year, before my ‘carol’, I want to share something, unadulterated. It’s something I hope you’ve read before. It’s something I try to read, slowly and deliberately, every year. But this year, I think we all need the pick-me-up. 

For me, it’s an antidote to frustration. To exhaustion. To pessimism. For the times when life just gets too heavy.

It’s an answer to a letter, written by an 8 year old girl in 1897, to the editor of The Sun, a prominent New York newspaper.

Her name was Virginia O’Hanlon.

She wrote:

——-

“Dear Editor,

I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, ‘If you see it in The Sun, it’s so.’ Please tell me the truth, is there a Santa Claus?”

Virginia O’Hanlon
115 West Ninety Fifth Street

——-

The reply, written by Francis P Church, became the most reprinted editorial in history. Enjoy:

——-

VIRGINIA, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men’s or children’s, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.

Yes, VIRGINIA, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus. It would be as dreary as if there were no VIRGINIAS. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.

Not believe in Santa Claus! You might as well not believe in fairies! You might get your papa to hire men to watch in all the chimneys on Christmas Eve to catch Santa Claus, but even if they did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that’s no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.

You may tear apart the baby’s rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived, could tear apart. Only faith, fancy, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, VIRGINIA, in all this world there is nothing else real and abiding.

No Santa Claus! Thank God! he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the heart of childhood.

——–

I’m not ashamed to admit to getting a little misty-eyed re-reading that, even if I’ve read it scores of times before.

Now, to our Christmas carol!

——–

Rudolph The Foolish Reindeer

You know Buffett and Fisher and Lynch and Graham
Soros and Templeton and Dalio and Ackman
But do you recall
The most Foolish reindeer of all?

Rudolph the Foolish Reindeer
Had a very long-term bent
He didn’t fear price movements
He knew how almost naught they meant

All of the other ‘vestors
Used to laugh and place their trades
They could never tempt old Rudolph
To join in on their silly games

Then one foggy COVID year
Share prices did crash and sway
But Rudolph, with his view held tight
Didn’t sell or run in fright

Then how the market rewarded him
As share prices recovered with glee
Said Rudolph the Foolish Reindeer
“Patience is the price of victory”

Rudolph the Foolish Reindeer
Learnt the lessons of this year
You gotta take the slings and arrows
And never, ever cede to fear

The future always has its worries
The headlines they’ll be full of doubt
They’ll never give poor Rudolph
Respite from all the fear they shout

But whatever worries rear their heads
They’ll not hang ‘round too long
Rudolph he’ll remember well
Hist’ry’s got some tales to tell

Then the market will reward him
Compounding, it works you see
Rudolph the Foolish Reindeer
Learned optimism from history

——-

On behalf of the entire team here at Motley Fool Australia, I want to wish you a very Merry Christmas (and a wonderful holiday season, if you observe a different tradition), and all the very best for a safe, prosperous and joyful 2021.

Our thoughts go out to those who are separated from family and friends. Those who’ve lost loved ones this year, and who will have an empty chair at their Christmas table. We hope your pain will abate, in time, and that your memories of better times will see you through.

And a big shout out to those of you who will be working over Christmas, sacrificing time with family and friends to look after our community. To our Diggers, particularly those posted overseas. To the coppers, firies and ambos. To the doctors and nurses. The retail workers, shift workers and members of the SES, Bush Fire Brigades and service crews who stand ready to drop the ham and prawns, if the call goes out.

Thank you, all, for what you do for the rest of us.

Merry Christmas, Fools!

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Merry Christmas, and here’s to a brighter 2021… appeared first on The Motley Fool Australia.

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2 high quality ASX shares to buy for your retirement portfolio

hand drawing two arrows on chalk board with one saying work and the other saying retire

When you first start investing, you might look for high risk, high reward growth shares. Because if things don’t go quite to plan, you have plenty of time to recover.

However, when you’re approaching retirement, you have less time on your side to recover your losses, so it can be best to switch your focus to income and capital preservation.

With that in mind, here are two ASX shares which could be top options for retirees:

Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care is a leading private healthcare company with operations across several regions. Although its growth over the short term is likely to be challenging because of headwinds caused by the pandemic, its long term outlook remains as positive as ever.

This is due to its world class network of private hospitals and their exposure to the growing demand for healthcare services globally. Management also has a penchant for acquisitions and could boost its growth with further earnings accretive acquisitions in the future.

Analysts at Macquarie have an outperform rating and $73.65 price target on the company’s shares at present.

Woolworths Limited (ASX: WOW)

Woolworths could be a good option for retirees due to the conglomerate’s numerous quality brands. These include Woolworths supermarkets, Dan Murphy’s, BWS, and BIG W. As a whole, the company appears to be well-positioned for growth over the long term thanks to its defensive qualities and strong market position.

In addition to this, another potential driver of value in the future could be its supply chain improvement plans and the proposed spin-off of its $10 billion Endeavour segment. Although the latter is likely to be delayed until after the pandemic passes, it is expected to create value for shareholders.

Analysts at Citi are positive on the company’s future. They recently put a buy rating and $44.50 price target on Woolworths’ shares. Citi is forecasting a fully franked $1.16 per share dividend in FY 2021, which equates to a 2.9% yield.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers name 3 ASX shares to buy right now

broker Buy Shares

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Control Bionics Ltd (ASX: CBL)

According to a note out of Morgans, its analysts have initiated coverage on this medical device company’s shares with an add rating and $1.42 price target. The broker notes that the company’s NeuroNode technology allows severely disabled people to operate and communicate via a computer using visual and neural signals. It appears positive on its long term future and notes that it is targeting a market worth $1.2 billion a year. The Control Bionics share price is trading at 98 cents today.

Hub24 Ltd (ASX: HUB)

Analysts at Citi have retained their buy rating and $24.00 price target on this investment platform provider’s shares. The broker points out that the company has signed an agreement with IOOF Holdings Limited (ASX: IFL). While it sees some risks from the deal, overall it views it as a positive. In addition to this, the broker believes HUB24 is well-placed to benefit from the ongoing structural shift in wealth management. The HUB24 share price is changing hands for $20.82 on Thursday.

Medibank Private Ltd (ASX: MPL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.15 price target on this private health insurer’s shares. This follows the decision of the Federal Government to authorise a 3.25% increase in its premiums in 2021. It believes this is a positive for Medibank, though acknowledges that increasing premiums could lead to affordability issues for consumers. The Medibank share price is changing hands for $3.01 on Thursday afternoon.

EARLY ACCESS – Our Boxing Day Sale – Save over 60% off Motley Fool Share Advisor

Right now we’re offering EARLY ACCESS to our Boxing Day sale. We’re giving you the chance to join Scott Phillips within our signature stock picking service, Motley Fool Share Advisor, for as little as $149 for a whole year’s membership.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of CBL Limited. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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