I would invest $10,000 into these ASX shares in March

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.With the market pulling back last month, now could be an opportune time to invest in ASX shares.

If I were sitting on $10,000, I would consider investing these funds in the ASX shares listed below. Here’s why I rate them highly:

CSL Limited (ASX: CSL)

I continue to believe that CSL could be a great ASX share for investors to buy. It is one of the world’s leading biotherapeutics companies with a portfolio of life-saving, world-class therapies and vaccines. These products include treatments for immunodeficiencies, bleeding disorders, hereditary angioedema, iron deficiency, nephrology, and neurological disorders.

But management isn’t resting on its laurels. Far from it! Each year, CSL reinvests 10% to 12% of its sales into research and development (R&D) activities. This means that the company is currently investing over US$1 billion annually on the treatments of the future, which ensures that it has a pipeline of potentially lucrative products to support its growth and defend its leadership position.

Another positive is that plasma collections have rebounded strongly from the pandemic. Combined with its new collection technology, which is expected to yield stronger results and boost margins, this bodes well for its margins in the coming years. Plasma is a key ingredient in many of its biggest products, so when collection costs reduce, its profits increase.

In light of the above, I believe CSL is well-placed for growth in the coming years and feel its shares are great value at current levels. Particularly given that the CSL share price is still down over 12% from its pre-pandemic high.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that I think could be a great option for investors this month is youth fashion retailer Universal Store.

As well as owning the eponymous Universal Store brand, it has the Perfect Stranger and Thrills brands in its portfolio.

The popularity of these brands was on display for all to see during the first half of FY 2023. Last month, Universal Store reported a 34.5% increase in sales to $145.7 million and a 31.7% jump in net profit after tax (NPAT) to $17.8 million.

I remain confident that the company is well-placed to build on this in the second half and beyond. This is thanks to store expansion plans and its target market being younger consumers, who are expected to continue spending in 2023 because of minimum wage increases and their lack of exposure to rising interest rates.

Another reason I would buy this ASX share is its attractive valuation and generous yield. I currently estimate that Universal Store’s shares are trading at 14 times forward earnings and offer a forward fully franked yield of 5%. The former is below the market average and the latter is well ahead of both term deposits and the market’s average yield.

The post I would invest $10,000 into these ASX shares in March appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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