The S&P/ASX 50 index is potentially Australia’s most important large-cap equity index.

It represents 50 of the largest and most liquid ASX shares by float-adjusted market capitalisation.

Whilst this doesn’t necessarily mean that all the shares on the index are buys, I believe there are a few that standout as strong buys.

Three outstanding ASX 50 shares I would buy today are listed below:

CSL Limited (ASX: CSL)

The first ASX 50 share to look at buying is biotherapeutics giant CSL. I think it is one of the best buy and hold options on the index due to its high quality operations. Both its CSL Behring and Seqirus businesses appear well-placed to deliver strong sales and earnings growth over the next decade. This is thanks to their leading products and lucrative research and development (R&D) pipelines. In FY 2019 CSL invested US$832 million in its R&D activities and a similar level of investment is expected this year. I believe these investments will allow the company to maintain its market-leading position and underpin solid profit growth for the foreseeable future.

Goodman Group (ASX: GMG)

I think Goodman Group is another ASX 50 share to buy. It is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate globally. The company’s portfolio has been expertly curated over the last few years to give Goodman exposure to online, logistics, food, consumer goods, and digital economy. I’m particularly positive on its prospects due to its exposure to the rapidly growing ecommerce market. Especially given its relationships with the likes of Amazon and DHL. Overall, I believe Goodman is well-placed to deliver solid earnings and distribution growth over the next decade.

Telstra Corporation Ltd (ASX: TLS)

A final ASX 50 share to consider buying is Telstra. I’ve been very impressed with the progress the telco giant is making with its new strategy. This strategy is stripping out costs and simplifying its business. Combined with the easing of the NBN headwind and the arrival of 5G, I believe Telstra’s struggles are close to coming to an end. This could mean a return to growth is now in sight for the company. In light of this and its attractive valuation, I think now would be an opportune time to invest.

More reading

• 3 of the best ASX shares to buy with $3,000 right now
• These ASX 200 shares could be perfect for a retirement portfolio
• Top brokers name 3 ASX 200 shares to buy right now
• The smartest ASX 200 shares to buy with $2,500 today
• JobMaker is coming. These 3 ASX 200 shares could benefit

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra 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 Splitit Ltd (ASX: SPT) share price is racing higher today after the buy now, pay later (BNPL) provider released a trading update for the month of May.

At the time of writing, Splitit shares are sitting 20.15% higher for the day after rallying as much as 42.54% in early trade.

What did Splitit announce?

The BNPL small-cap reported record monthly merchant sales volume (MSV) of US$25.8 million in May, representing increases of 321% compared to May 2019 and 39% compared to April 2020. 

Breaking this down in terms of geography, MSV growth in North America and Europe jumped 336% and 548%, respectively, compared to May 2019. This has been supported by partnerships with global e-commerce retailers such as Purple, Nectar Sleep and Canyon Bicycles.

Splitit also announced a notable increase in total unique shoppers, with the number of shoppers successfully making a purchase using its platform surpassing 290,000 in May. The last 2 months alone have seen the addition of 45,000 new shoppers transacting through Splitit’s platform.

On the merchant front, Splitit now has 964 merchants offering its payment solution. This is up 12% from 862 at the end of March 2020.

Splitit’s average order value also improved in May, increasing to US$939 from US$737 in the first quarter of FY20 ending 31 March 2020.

On the whole, the company attributed these strong results to the onboarding of new large merchants in 2020, the growing shift to e-commerce, and customers increasingly using its payment solution to manage their cash flow.

Commenting on Splitit’s performance, CEO Brad Paterson said:

“We continue to see strong merchant demand as eCommerce expansion accelerates, while merchants are actively pursuing strategies to improve their conversion rates during and beyond the Coronavirus pandemic. Splitit is seeing growth in its share of checkout with merchants as it helps them meet changing consumer needs for greater flexibility and longer payment plans.”

More reading

• Should you ever buy into an ASX IPO?
• Why ASX payments shares might be the biggest winners of the 2020s

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. 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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These 3 large caps have beaten the S&P/ASX 200 (INDEXASX: XJO) year to date despite the highly uncertain economic climate. Drawn from 3 different sectors, these shares demonstrate the resilience of Australian equities. 

Discretionary consumer

The consumer discretionary sector has experienced one of its more difficult years, in my experience. Unlike consumer staples like Woolworths Group Ltd (ASX: WOW) or Inghams Group Ltd (ASX: ING), the discretionary sector is one of choice. 

Despite the challenging conditions, however, there have been several companies that have thrived during the coronavirus pandemic. A stand out performer year to date in this sector is Domino’s Pizza Enterprises Ltd. (ASX: DMP). The Domino’s share price is 26.7% higher than it was at the start of the calendar year. In fact, since its low point on 19 March the Domino’s share price has risen by nearly 60%. As a great growth share, Domino’s has not only outperformed the ASX 200 over the past 12 months, it has beaten it over the last 5 years.

Information Technology

Also considered part of the financials sector as an emerging fintech company, Xero Limited (ASX: XRO) has also beaten the ASX 200 this year as well as over 5 years. Xero’s share price is up by nearly 12% year to date. Xero is carving a pathway to becoming a complete accounting platform. Starting with online accounting software, the company has expanded into bank feeds, payroll, inventory and the app marketplace. 

Xero has an almost astonishingly high price to earnings ratio. But, having said that, this is a growth company. Xero announced its first profit recently and some investors were upset that management hadn’t spent every cent acquiring new users.  

Communications

REA Group Limited (ASX: REA) has been a pioneer of online classified ads in the real estate space and is most widely known for its realestate.com.au business. The company’s share price is marginally up since the start of the year, but has still clearly outperformed the ASX 200. 

Since its inception 25 years ago, REA Group has branched out considerably. Today the company offers home loans, commercial real estate listings and innovative services such as shared work spaces. REA Group owns websites that operate in Indonesia, Malaysia, the United States and many other countries. 

Foolish takeaway

These 3 large cap shares have all outperformed the ASX 200 this year so far. And I believe each of them is poised for future growth. Although REA Group reported a 33% reduction in residential listings at the height of the lock down, restrictions are starting to ease. I believe as the economy emerges from hibernation, trading conditions will improve for the company. Furthermore, I feel all 3 of these Aussie large caps are well managed businesses with solid financials to back them up.

Personally, I particularly like Domino’s as a possible buy. I believe it is currently trading at a discount and has a proven track record of solid earnings. 

More reading

• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Where to invest $2,000 in cheap shares

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited and Xero. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and REA 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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