Day: January 15, 2021

3 five-star ASX shares to buy in January

asx shares to buy

If you’re looking to make some additions to your portfolio in January, then the three ASX shares listed below could be great options.

They have been tipped as shares that could generate strong returns for investors in the future.

Here’s why they could be five-star stocks:

CSL Limited (ASX: CSL)

This biotherapeutics giant could be a five star stock. This is due to the quality of its CSL Behring and Seqirus businesses, their leading therapies and vaccines, its growing plasma collection network, and burgeoning research and development pipeline. In respect to the latter, CSL’s pipeline contains a number of products, such as Clazakizumab, that have the potential to generate billions of dollars of sales in the future. UBS is a fan of the company and last week reiterated its buy rating and $346.00 price target on CSL’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another potential five-star stock is Domino’s. This is due to the pizza chain operator’s strong market position and bold growth targets over the next decade. At the end of FY 2020, Domino’s had a network of 2,668 stores and is now aiming to more than double this to 5,500 stores by 2033. At the same time, the company is targeting organic same store sales growth of 3% to 6% per annum over the medium. Delivering on these targets would result in strong top line growth over the 2020s. One broker that is a fan of these plans is Goldman Sachs. The broker has a conviction buy rating and $88.00 price target on its shares.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A final potential five-star option is the BetaShares NASDAQ 100 ETF. This is due to the fact that this fund is home to a large number of the highest quality companies that the world has to offer. Among its holdings you will find the likes of Amazon, Apple, Facebook, Microsoft, Nvidia, Starbucks, and Tesla, to name just a few. This group of shares have been tipped to grow strongly in the future and could help drive outsized returns for the BetaShares NASDAQ 100 ETF.

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 BETANASDAQ ETF UNITS and CSL Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Dominos Pizza Enterprises 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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2 outstanding ASX ETFs to buy

businessman holding world globe in one hand, representing asx etfs

Exchange traded funds (ETFs) continue to grow in popularity with Australian investors.

So much so, according to the AFR, Vanguard has reported its best year since entering the Australian market two decades ago.

The world’s second-largest asset manager pulled in a total of $5.7 billion into its exchange traded funds in 2020 after Australian investors sought diversified exposure during a volatile time for share markets because of COVID-19.

If you’re interested in joining these investors by adding an ETF or two to your portfolio, then you might want to take a closer look at the two listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. As its name implies, it gives investors exposure to a number of the biggest and brightest tech shares in the Asia market. Among the fund’s holdings you will find the likes of Samsung, Alibaba, JD.com, Tencent, and Baidu.

In respect to the latter, Baidu is the dominant search engine in China and widely considered to be the country’s version of Google. But like its US peer, Baidu is so much more than just a search engine. It has a keen focus on artificial intelligence and is aiming to be an autonomous vehicle powerhouse.

Another company you’ll be owning a slice of is Tencent. It is one of the world’s largest tech companies with a focus on video games and social media. It is best known as the company behind the WeChat app, which is used by over 1.2 billion people for messaging, e-commerce, digital payments, and entertainment.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF is another ETF to look closely at. This ETF aims to track the performance of an index providing investors with exposure to the leading companies in the growing global cybersecurity sector.

BetaShares notes that with cybercrime on the rise, demand for cybersecurity services is expected to increase strongly in the future. And given how this side of the market is heavily under-represented on the ASX at present, this ETF give investors an easy way to invest in the theme.

Included in the fund are both global cybersecurity giants and emerging players from a range of global locations. Among its holdings you’ll find Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

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 BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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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2 exciting small cap ASX shares to buy

man standing with arms crossed in front of giant shadow of body builder representing asx small cap stocks

Some small cap ASX shares may be able to make good returns over the longer-term.

There are smaller businesses that have interesting characteristics, which may be of interest to some investors:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology business. Its main service is providing software to help detect breast cancer early on by increasing the quality of screening using AI.

The small cap ASX share reported its FY21 half-year result a couple of months ago. Subscription revenue went up 71% to NZ$8.8 million, though total revenue only grew by 38% to NZ$9.5 million. Annual recurring revenue (ARR) went up from NZ$18 million to NZ$19.9 million.

One of the metrics that Volpara likes to boast about to investors is that the gross profit margin reached 92%, up from 89% in the prior corresponding period.

The company recently won two contracts. The first was a five-year software as a service (SaaS) contract with BreastScreen Queensland to use VolparaEnterprise, which could expand to include VolparaDensity and VolparaLive. 

Volpara also announced that its breast health platform has been selected by US Radiology Specialists, which comprises of more than 280 radiologists, 3,100 team members and 145 outpatient imaging centres across 14 states in the US.

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the small cap ASX shares in the retail space that is growing online sales at a fast rate. In FY20 online sales rose by 113.5% and this represented 65% of City Chic of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed.

The company is made up of a variety of different retail brands. It sells plus-size clothing, footwear and accessories to women. It has a number of brands including City Chic, Avenue, CCX, Hips & Curves and Fox & Royal. City Chic has around 100 stores across Australia and New Zealand. It has websites for local and US customers, it has marketplace and wholesale partnerships with major US retailers such as Macys and Nordstrom, and a wholesale business with European and UK partners such as ASOS and Zalando.

City Chic recently acquired Evans for $41 million from Arcadia Group, which has gone into administration. Evans is a UK-based retailer of women’s plus-size clothing with a longstanding customer base and sizeable market position.

The Evans website made £23 million of sales with 19 million visits for the financial year to August 2020. The wholesale business also made £3 million of sales. The overall Evans group of businesses, including the stores and franchise, made £60 million of annual sales before COVID-19 came along. The small cap ASX share’s management are hoping it can capture some of the physical sales that Evans used to make. 

According to Commsec, the City Chic share price is valued at 23x FY23’s estimated earnings.

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

Tristan Harrison 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 VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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2 high quality ASX dividend shares to buy

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

With the interest rates on offer with term deposits falling to such low levels, you would have to invest millions into them to earn a sufficient income.

In light of this, the share market looks set to remain the place to earn a passive income for the foreseeable future.

But which shares should you buy? Here are two ASX dividend shares that are rated as buys:

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. It is a leading leisure footwear-focused retailer which owns a number of popular retail store brands. It also has a rapidly growing online business that has been performing exceptionally well during the pandemic.

A recent update reveals that the company has been performing very strongly in FY 2021. After an impressive start to the year, the company followed this up with an excellent holiday period. For the two months to 27 December, the company’s total sales were up 12.3% and like-for-like sales grew 7.4%.

This means that excluding the closure of Auckland, Victoria, and Adelaide stores, like-for-like sales grew 12.3% during the first half.

Analysts at Citi were impressed with its update and put a buy rating and $2.60 price target on its shares. The broker is also forecasting a 11 cents per share dividend from Accent in FY 2021. Based on the current Accent share price, this represents a fully franked 4.8% dividend yield.

Coles Group Ltd (ASX: COL)

Another dividend share to look at is Coles. As with Accent, the supermarket operator has been a strong performer during the pandemic.

This has been driven by its defensive qualities, strong market position, and favourable changes in consumer spending.

Pleasingly, this strong form has continued in FY 2021 even as COVID headwinds ease and appears to have put Coles in a position to deliver a strong full year result.

Analysts at Citi are confident on Coles as well. The broker has a buy rating and $21.20 price target on its shares. It is also forecasting a 63.5 cents per share fully franked dividend this year. This represents a fully franked 3.5% dividend yield.

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Returns As of 6th October 2020

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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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Accent Group. 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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