It’s been a wild start to 2020 for Webjet Limited (ASX: WEB) and other ASX travel shares amid the coronavirus pandemic. Countries have shutdown incoming air traffic while even domestic borders remain shut to most travellers.

That’s bad for the travel business. Airlines are struggling and it makes sense that many of the other industry players are too. 

But, the Webjet and Flight Centre Travel Group Ltd (ASX: FLT) share prices both rocketed higher yesterday. You might be wondering if it’s too early or too late to buy ASX travel shares. Here’s how I see the current market valuations playing out in 2020.

What’s going on with ASX travel shares?

It’s pretty obvious why the Aussie travel shares got sold down by investors in February and March. The situation looked pretty bleak for the industry for most of 2020, if not beyond.

But what’s causing double-digit share price moves right now? Webjet shares closed yesterday 15.56% higher at $4.16 per share while Flight Centre jumped 15.23% to $13.01 per share.

There were no major announcements from either ASX travel share on Monday. However, there is intense speculation that a trans-Tasman travel bubble could happen sooner rather than later.

That means these booking groups, as well as the airlines like Air New Zealand Limited (ASX: AIZ), could benefit from increased traffic.

On top of that, domestic travel restrictions are beginning to ease which could be a much-needed earnings boost for Webjet and Flight Centre.

Is it too early to buy Webjet shares?

Many investors are wary of false positives in the current market. While the ASX travel share rocketed higher yesterday, I’d be thinking if it’s too early rather than too late to buy.

Personally, I think it’s still to early to buy Webjet shares. There’s plenty of uncertainty facing the travel industry and no one knows what 2020 or 2021 look like in terms of traffic.

Even if borders do start to open, many people have lost their jobs and may not be able to afford to travel, or be comfortable with travelling.

That means the current valuation is a little too high for my liking. However, Webjet shares could be back in the buy zone if things start to get a little clearer this year.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumped higher, rises more than 2%
• These ASX 200 share prices were cut in half. Where are they now?
• Why Flight Centre and Webjet shares are zooming higher today
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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The Australian share market started the week on an extremely positive note on Monday. This led to a good number of shares charging notably higher.

Some shares climbed more than most and a few even managed to hit 52-week highs or better.

Here’s why these ASX shares are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price continued its positive run and raced to a record high of $49.00 on Monday. Investors have been fighting to get hold of the payments company’s shares in recent weeks for a number of reasons. These include its very strong performance during the third quarter, WeChat owner Tencent Holdings becoming a substantial holder, explosive active customer growth in the U.S. market, and its upcoming addition to the MSCI Australia index.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price hit a 52-week high of $4.91 yesterday. The discount retailer’s shares have been strong performers over the last few weeks and are now up over 63% since this time last month. One of the catalysts for this appears to have been a broker note out of Goldman Sachs. At the start of the month the broker upgraded its shares from a sell rating to a buy rating with a $4.75 price target. It spoke positively about its turnaround story with a new executive team, its robust balance sheet, and the potential for material improvements in efficiencies in labour, rent, and stock turn.

Whispir Ltd (ASX: WSP)

The Whispir share price hit a record high of $2.80 on Monday. Investors have been buying the communications workflow platform provider’s shares in recent months due to its strong performance during the pandemic. The work from home initiative has been driving increased demand for its offering, which led to solid Annualised Recurring Revenue (ARR) growth during the third quarter. Whispir posted a 10.4% quarter on quarter jump in its ARR to $40.5 million. This was the result of a record addition of 49 net new customers and increased platform use by existing customers.

More reading

• 5 ASX 200 10-bagger shares of the decade
• ASX 200 jumped higher, rises more than 2%
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?
• The Afterpay share price just hit a new record high: Should you invest?

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 Whispir Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Whispir Ltd. 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.

The post Why Afterpay and these ASX shares just zoomed to 52-week highs appeared first on Motley Fool Australia.

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Given the bleak outlook for interest rates in Australia over the next few years, if I had $10,000 sitting in a savings account, I would be looking to put it to work in the share market.

But where should you invest $10,000? Three top ASX shares that I would buy with these funds are listed below. Here’s why I like them:

Freedom Foods Group Ltd (ASX: FNP)

Freedom Foods is a growing food company with a focus on healthy eating. After several years of investing heavily in its business, the company now looks well-positioned for strong growth in the coming years. Especially given the increasing demand it is experiencing in key channels and its exposure to on trend categories such as dairy, nutritionals, and plant beverages. This was evident in the first half of FY 2020 when Freedom Foods delivered a 43.4% increase in sales and a 42.1% lift in operating net profit after tax.

Pushpay Holdings Group Ltd (ASX: PPH)

Another option to consider investing $10,000 into is Pushpay. It provides a donor management platform to the faith, not-for-profit, and education sectors. The company has worked hard over the last few years to carve out a leadership position in the sector and is now reaping the rewards. In FY 2020 the company grew its operating profits at an explosive rate. Pleasingly, thanks to increasing demand, its guidance for FY 2021 implies another doubling of profits. And given how it is still only scratching at the surface of its sizeable market opportunity, I believe there is plenty more to come from Pushpay over the next decade.

SEEK Limited (ASX: SEK)

A final share to consider buying with $10,000 is SEEK. While times are hard because of the pandemic, I think this job listings company would still be a great option due to its positive long term growth outlook. This is due to its international operations and particularly its China business. I believe the latter has the potential to underpin strong earnings growth over the next decade. So, with its shares down 20% from their high, now could be an opportune time to snap them up with a long term view.

More reading

• Got $2,500? I’d buy these 2 ASX shares in a heartbeat
• Which is the best ASX entertainment media share?
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Freedom Foods Group Limited and SEEK Limited. 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.

The post Where to invest $10,000 into ASX shares immediately appeared first on Motley Fool Australia.

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