The S&P/ASX 200 Index (ASX: XJO) is having another not-so-nice day on the markets today. At the time of writing, the index is down another 2.48% at the time of writing to 5,858.8 points. That’s the lowest level the ASX 200 has been at since mid-June. Since last Thursday, the ASX 200 has now lost around 4.5% of its value, which means we’re not quite in official correction territory just yet. That requires a fall of 10% or more from the most recent high.

But is that the way we are headed after today’s market moves? After all, this doesn’t seem to be shaping out to be a ‘one-off’ hit, seeing as the ASX 200 has been down-trending since last week. Or could we even be heading for another 2020 market crash (which is defined by a 20% fall or more)?

US tech wiped out

Well, first thing’s first. The ASX 200 is probably only falling because of what’s happened in the US markets over the past week. The S&P 500 and the Nasdaq 100 have both been hit very hard. The Nasdaq’s blowoff has been especially spectacular. Since last Thursday (US time), the NASDAQ 100 is officially in correction territory, down 10.85%. That’s a sharp correction for just a week’s worth of trading.

The trigger? Massive sell-offs in US tech shares. The poster child for Nasdaq exuberance – Elon Musk’s electric car and battery manufacturer Tesla Inc. (NASDAQ: TSLA) – is down more than 34% over the past week. This move is apparently solely a response to the company not making the cut for the S&P 500 Index this quarter. Not a reason to devalue an entire company by a third under normal circumstances. But hey, this is apparently the world we’re living in now.

Other tech shares haven’t been spared either though. Apple Inc. (NASDAQ: AAPL) is down 15% over the past week, as is Amazon.com, Inc (NASDAQ: AMZN) with a 9.74% drop. Even lockdown wunderkind Zoom Video Communications Inc (NASDAQ: ZM) is down more than 20%.

So what’s going on? And how does this affect the ASX?

ASX 200 correction or crash?

Unfortunately, the ASX 200 is inextricably linked to the US markets, and, as the old saying goes, if the US coughs, the rest of the world catches a cold. Big falls in US markets tend to prompt ASX investors to take profits and pull of out ‘risk-on’ positions. What we’ve seen on the ASX 200 over the past week is ‘froth being blown off the top of the market’ in my view. Whilst this is not good news for investors today, I think that it’s a temporary setback for ASX shares.

Unless the US markets start tanking in a more dramatic fashion, or some other structural market issue emerges, I don’t think investors have too much to be worried about today. Markets do these kinds of things all the time, it’s a healthy pullback after things got a bit too carried away in my view. As long as you’re still happy with the holdings in your portfolio, I wouldn’t lose too much sleep just yet.

More reading

• Why you should use the market sell-off to buy these ASX stocks
• ‘We could be heading for a lot of pain’
• Why the Afterpay Ltd (ASX:APT) share price is falling again
• Tech share prices are down but not out. When should you buy?
• ASX 200 down 2.4%: Afterpay (ASX:APT) and Oil Search (ASX:OSH) sinking lower

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Tesla, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Apple. 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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On Tuesday I looked at a couple of exchange traded funds (ETFs) that I felt would be good for investors looking for international exposure.

Today, I thought I would look at ETFs that could be top options for income investors.

Two that I think would be worth considering right now are listed below. Here’s why I like them:

VanEck Vectors Australian Banks ETF (ASX: MVB)

The first ETF to consider buying for dividends is the VanEck Vectors Australian Banks ETF. As its name implies, it gives investors exposure to the banking sector. This could make it a great option if you want to invest in the sector but you’re not quite sure which bank to buy above others. The VanEck Vectors Australian Banks ETF gives you a piece of the big four banks, the regionals, and also investment bank Macquarie Group Ltd (ASX: MQG). Estimating what the yield will be in FY 2021 is incredibly difficult because of the pandemic. But I would expect something in the region of 4%, rising towards 6% in FY 2022 when trading conditions (hopefully) have improved materially. In light of this and the outlook for interest rates, I think now could be an opportune time to invest.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you already have some of the banks in your income portfolio, then you might want to go for a more diversified option. The one that ticks a lot of boxes for me is the Vanguard Australian Shares High Yield ETF. This exchange traded fund has a focus on high yield shares and is invested across a total of 66 of them. This comprises a diverse group of shares, with no industry accounting for more than 40% of the fund and no single company accounting for more than 10%. Many blue chip favourites are included in the fund such as the banks, BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Fortescue Metals Group Limited (ASX: FMG), and Telstra Corporation Ltd (ASX: TLS). I estimate that its units offer a FY 2021 dividend yield in the range of 4% to 5%.

More reading

• Forget Westpac’s term deposits and buy these ASX dividend shares
• How to earn a passive income of $50,000 with ASX dividend shares
• 2 quality ASX dividend shares for income investors to buy today
• Looking for dividends? Buy these ASX ETFS in September
• ETF provider VanEck to launch 4 new ASX ETFs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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Shares in Flight Centre Travel Group Ltd (ASX: FLT) could be in the buy zone for long-term investors. The Flight Centre share price has fallen more than 67% in year-to-date trading but could it be about to take off?

Travel restrictions and lockdowns have wreaked havoc among travel companies on the ASX. Despite the doom and gloom, the turbulent conditions could provide investors with a great opportunity.

A recent article I wrote on Corporate Travel Management Ltd (ASX: CTD) highlighted the recovery in the company’s share price. A similar recovery could be seen in the Flight Centre share price, as investors and consumers look to the future.

How did the pandemic impact Flight Centre during FY20?

Flight Centre recently reported its annual results for FY20.

The report detailed the full impact of the pandemic of the travel agent’s operations. This was reflected in Flight Centre posting its first loss since listing on the ASX.

With the introduction of domestic and international travel restrictions, Flight Centre saw operating conditions deteriorate significantly.

As such, the company saw total transaction volumes and revenue finish 35% and 38% lower respectively for the full year. This resulted in Flight Centre delivering a net loss of $662 million for FY20.

The company also revealed aggressive cost-cutting measures, effectively lowering its cost base by 70%. Flight Centre also reported $1.1 billion in available liquidity, boosted by a $700 million capital raising in April.

Silver lining for long-term investors

Although its leisure segment took a major hit during FY20, Flight Centre’s corporate travel business was a standout performer.

For FY20, Flight Centre’s corporate division was able to deliver a positive operating profit of $74 million. This was largely attributed to the company’s exposure to clients in essential service sectors, such as mining and government.

For long-term investors, the profitability of Flight Centre’s corporate segment is a silver lining.

This is because growth in the segment allows for greater understanding of Flight Centre’s growth profile. With the leisure segment eventually destined to recover post-pandemic, a thriving corporate segment could see a re-rate in the Flight Centre share price in the long term.

Should you invest in today’s Flight Centre share price?

In addition to a promising corporate segment, Flight Centre has reassured investors that the company can break even with total transaction value at 40%. This should give long-term investors some closure as they wait for a COVID-19 vaccine.

Despite the lucrative potential in buying at the current Flight Centre share price, I think investors need to remain cautious. I believe the old adage of ‘never catch a falling knife’ applies to investing in the travel sector in the current environment.

From a risk management perspective, the current Flight Centre share price looks attractive. However, if investors are inclined to invest in Flight Centre at the company’s current share price, I think a prudent strategy would be to establish a stop-loss to ensure they protect to the downside.

More reading

• The Corporate Travel Management share price is up 65% in a month: Is it too late to invest?
• These are the 10 most shorted ASX shares
• The one type of ASX company that outperforms all others
• Why Afterpay, Flight Centre, Helloworld, & QBE shares are tumbling lower
• These were the best performing ASX 200 shares in August

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. 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 market may be sinking lower today but that hasn’t stopped ASX cannabis shares from storming higher.

For example, at the time of writing the Althea Group Holdings Ltd (ASX: AGH) share price is up 8% to 54 cents.

Elsewhere, the Auscann Group Holdings Ltd (ASX: AC8) share price is up 3% and the Cann Group Ltd (ASX: CAN) share price is 6% higher.

Why are ASX cannabis shares on a high today?

Investors have been buying ASX cannabis shares after a positive industry development this morning.

That development is the Therapeutic Goods Administration (TGA) releasing a notice of an interim decision to amend the Poisons Standard for cannabidiol (CBD).

This amendment would see CBD supplied for therapeutic use over the counter in pharmacies without the need for a prescription.

Althea has responded to the news by revealing that it has been engaging with the TGA throughout the consultation process and is supportive of the amendment.

It notes that the proposed amendment would bring patient access into closer alignment with comparable international jurisdictions, improving access to CBD products for therapeutic use.

Althea’s CEO, Josh Fegan, commented: “We applaud the TGA’s interim decision in this matter and see it as one of the biggest developments in our industry to date. The interim decision reflects the significant shift in community and government attitudes towards medicinal cannabis since it was legalised in Australia in late 2016, which has seen it move from a fringe alternative towards an accepted mainstream option.”

“As a strong advocate for patient access, Althea has closely monitored the proposed amendment since it began and has participated in the consultation process. We are excited by the TGA’s interim decision to down schedule CBD products and see this development as a big step forward for prescription cannabis products already available in Australia,” he concluded.

More reading

• ASX cannabis shares continue progress despite pandemic

Motley Fool contributor James Mickleboro 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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The FBR Ltd (ASX: FBR) share price is wobbling slightly during early afternoon trade. The company announced the completion of its building pilot program agreement with Archistruct.

The FBR share price reached an intra-day high of 6.8 cents, before falling back to 6.4 cents at the time of writing.

What does FBR do?

FBR is a robotic technology company that builds robotic arms to assemble structure walls. It is considered faster, safer, more accurate and with less wastage than traditional bricklaying methods.

Its flagship product, the Hadrian X is an automated bricklaying system that can lay an estimated 1,000 bricks per hour as opposed to an output of two human bricklayers for the whole day.

The Hadrian X provides a ‘wall as a service’ and can adapt quickly to builder demands.

Commercial and community centre build

FBR updated the market advising it had built its first non-residential structure, completing the third and final stage of the building pilot program agreement with Archistruct.

The new commercial and community centre was built using the robotic company’s Hadrian X. FBR recorded bricklaying speeds of up to 228 blocks, or 1,049 standard brick equivalents per hour. In addition, the Hadrian X built both an internal and external leaf of a double brick cavity wall.

Notably, it was the first time the Hadrian X worked in hail, high winds and heavy rain.

What did management say?

FBR managing director and CEO, Mike Pivac was proud of the achievement. He said:

The construction of our first non- residential structure is a significant step forward for FBR and the commercialisation of our technology. This structure is the first demonstration of Wall as a Service® in a suburban environment for a client, and we are very pleased with how the Hadrian X® and our team performed.

Mr Pivac also said the ability to construct commercial buildings opened up a valuable global market for the company.

About the FBR share price

The FBR share price has recovered somewhat since its March lows of 1 cent, up 650% to date. However, the FBR share price is trading 36% below its 52-week high of 10.5 cents achieved in July.

I think that FBR is an exciting ASX share to watch. The Hadrian X is considered as a quantum leap in the construction industry. I will be adding the FBR share price to my watchlist for now and monitor its developments.

More reading

• Why Althea (ASX:AGH) and these ASX cannabis shares are smoking the market today
• Top brokers name 3 ASX shares to buy today
• ‘We could be heading for a lot of pain’
• Why the Afterpay Ltd (ASX:APT) share price is falling again
• Why the Qantas (ASX:QAN) share price is sinking lower today

Motley Fool contributor Aaron Teboneras 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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Many of Australia’s top brokers have been busy adjusting their financial models 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:

Crown Resorts Ltd (ASX: CWN)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating but reduced the price target on this casino and resorts operator’s shares to $10.50. The broker believes the market is too negative on Crown and should look beyond the short term headwinds it is facing. Especially given the upcoming opening of its Sydney casino, which it expects to win market share from its rivals. I think Morgan Stanley makes some great points and Crown could be worth considering as a long term investment.

CSL Limited (ASX: CSL)

Analysts at UBS have retained their buy rating and $346.00 price target on this biotherapeutics company’s shares. Although trading conditions are tricky for CSL because of the pandemic and its impact on plasma collections, it notes that the company has opportunities elsewhere in the business to offset this. Particularly given increasing demand for flu vaccines following the outbreak of COVID-19. I agree with UBS and believe recent weakness in the CSL share price is a buying opportunity for investors.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Ord Minnett reveals that its analysts have upgraded this iron ore producer’s shares to a buy rating with an increased price target of $20.00. This follows an upgrade to its iron ore price forecasts after factoring in stronger than expected Chinese steel production. In light of this and its expectations that iron ore demand will remain strong in the near term, the broker is forecasting very generous dividends for the foreseeable future. I think Ord Minnet is spot on and Fortescue would be a top option for income investors.

More reading

• Why the Qantas (ASX:QAN) share price is sinking lower today
• Top ASX shares to buy this week
• Here’s why some ASX dividend shares just go nowhere
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• 3 ASX 200 shares to buy with $3,000 this week

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 has recommended Crown Resorts 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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A veteran investment executive has warned immense grief could come soon for share investors.

Wilson Asset Management chair Geoff Wilson in an investor call on Friday said the last few months of the ASX have looked “very frothy”.

“We could be heading for a lot of pain,” he said.

“The way that the market has bounced back [since COVID-19]… people are going to realise that buying shares at doubles or triples, that’s not normal.”

Wilson’s company runs a stable of popular active exchange-traded funds (ETFs), such as WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Global Ltd (ASX: WGB).

Newbie day traders are creating volatility

Wilson blamed a flood of “non-sophisticated money” coming into the market during the virus crisis for the current bubble.

The All Ordinaries Index (ASX: XAO) has surged almost 33% since the depths of the coronavirus crash in March, even after a slight correction in recent days.

Over the long term, the Australian market has historically gained roughly 10% per year, according to Wilson, so he feels it has to eventually reach that equilibrium.

“The market does have a way of cleansing out excesses… we could be getting close to a bit of a cleansing,” he said.

“There is a lot of risk in the market at the moment, definitely.”

Tech sector is a worry

Technology sector shares were a particular concern to Wilson, who established his LIC company in 1997.

Examples include fintech Afterpay Ltd (ASX: APT), which has shot up more than 700% since March, and Tesla Inc (NASDAQ: TSLA), which surged 470% before a 30% adjustment in recent days.

“That has been looking quite bubbly. I’ve been thinking back to 1999-2000 when we had the ‘tech wreck’,” he told investors.

“There wasn’t a specific event that created the tech wreck… It was just over-evaluations, then heat coming out of the market.”

Wilson predicted that, in a similar fashion, there could be a fresh “wake-up call” coming soon for tech investors.

“There could be a reasonable-sized adjustment.”

Wilson Asset Management has more than $3 billion under management on behalf of 86,000 retail shareholders, split across 6 LIC ETF products.

More reading

• Why the Afterpay Ltd (ASX:APT) share price is falling again
• Why Accent, Afterpay, Nine, & PointsBet shares are dropping lower today
• Tech share prices are down but not out. When should you buy?
• ASX 200 down 2.4%: Afterpay (ASX:APT) and Oil Search (ASX:OSH) sinking lower
• Why the Tesla (NASDAQ:TSLA) share price just crashed 21% lower

Tony Yoo owns shares of AFTERPAY T FPO, WAM Capital Limited, and WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Afterpay Ltd (ASX: APT) share price is falling again today, down 1.72% in early afternoon trading.

The Australian buy now, pay later (BNPL) star saw its share price peak on 25 August at $92.48 per share. That represented an astonishing 939% gain from its 23 March lows and a 202% year-to-date gain.

Although Afterpay’s share price is now down 22% from its 25 August all-time highs, investors who bought shares on 2 January are still sitting on a healthy 135% gain.

Afterpay is part of the S&P/ASX 200 Index (ASX: XJO). By comparison the ASX 200 is down 12% since 2 January.

What does Afterpay do?

Afterpay is an Australian incorporated technology company and a leader in the BNPL market. Afterpay’s payment platform allows consumers to purchase and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.

The company was founded in 2015. Afterpay shares first began trading on the ASX in June 2017. These days, the company operates in Australia, the United States and the United Kingdom, with current expansion plans into the wider European market.

Why is the Afterpay share price falling?

The Afterpay share price is being hit from several sides.

First, technology shares as a whole have come under pressure following a tremendous run higher after the COVID-19 market rout in March.

In the United States the NASDAQ-100 Index (NASDAQ: NDX) – containing the biggest 100 tech-oriented shares – is down 11% since last Wednesday, 2 September. The Apple Inc. (NASDAQ: AAPL) share price is down 16% from 1 September and the Tesla Inc (NASDAQ: TSLA) share price is down 34% from 31 August.

Atop the wider selloff in tech shares, Afterpay is also seeing an increasing potential for competitors to steal some of its market share.

On 1 September, industry giant PayPal rattled Afterpay investors when it announced it will be launching its own BNPL platform in the US, called pay-in-4.

And it’s not just PayPal. Commonwealth Bank of Australia (ASX: CBA) also want a piece of the ‘pay in interest free installments’ action. Earlier this year, Commonwealth invested $411 million in Klarna, a Swedish based BNPL competitor.

Topping it off, all the BNPL players in Australia – of which Afterpay is by far the largest – are facing increasing government scrutiny as legislators debate whether they should be subject to responsible lending regulations.

This might see some of the smaller ASX BNPL shares squeezed out of the market or subject to takeover. But with a market cap of $21 billion, Afterpay is likely here for the long haul. And while its share price is falling today, longer-term this is a company to keep your eye on.

More reading

• ‘We could be heading for a lot of pain’
• Why Accent, Afterpay, Nine, & PointsBet shares are dropping lower today
• Tech share prices are down but not out. When should you buy?
• ASX 200 down 2.4%: Afterpay (ASX:APT) and Oil Search (ASX:OSH) sinking lower
• Gold Road (ASX:GOR) share price runs lower on HY20 results

Bernd Struben 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 Apple and Tesla. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Apple. 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 Qantas Airways Limited (ASX: QAN) share price has come under pressure on Wednesday.

In early afternoon trade the airline operator’s shares are down a sizeable 5.5% to $3.86.

Why is the Qantas share price tumbling lower?

Qantas shares have dropped lower today following a broad market selloff after a disappointing night on Wall Street.

In addition to this, also weighing on the company’s shares could be news that AstraZeneca has paused its late-stage trial for a potential coronavirus vaccine due to safety concerns.

There are high hopes for its promising AZD1222 vaccine, which is being developed with Oxford University.

In fact, earlier this week CSL Limited (ASX: CSL) signed an agreement with AstraZeneca for the expected manufacture of approximately 30 million doses of the vaccine candidate for supply to Australia.

Given that tourism markets are unlikely to return to normal until the successful development of a vaccine, its failure would be a bitter blow for the industry.

However, it is worth noting that this trial pause isn’t unusual.

In a statement to CNBC, AstraZeneca said: “This is a routine action which has to happen whenever there is a potentially unexplained illness in one of the trials, while it is investigated, ensuring we maintain the integrity of the trials.”

The biotech giant intends to speed up the investigation in order to “minimize any potential impact on the trial timeline.”

Should you buy the dip?

Although I do see value in Qantas’ shares, given the uncertainty in global travel markets, I’m not in a rush to invest just yet.

Two brokers that are more positive are Macquarie Group Ltd (ASX: MQG) and Morgan Stanley.

Late last month Macquarie’s analysts put an outperform rating and $4.25 price target on Qantas’ shares. Morgan Stanley thinks its shares can go higher and has an overweight rating and $4.90 price target on them.

More reading

• Top brokers name 3 ASX shares to buy today
• Top ASX shares to buy this week
• Here’s why some ASX dividend shares just go nowhere
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• 3 ASX 200 shares to buy with $3,000 this week

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 Macquarie 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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There are over 2,000 companies listed on the ASX right now. As such, deciding on which are the best to buy can be challenging. Following are three ASX shares that I think would make great buys right now. These companies are either growing well or are showing promise. Furthermore, all of them have a market capitalisation above $300 million meaning they should be a little more stable than their small and micro cap friends.

My top ASX shares to buy this week

Serko Ltd (ASX: SKO)

About Serko

Serko is a software-as-a-service (Saas) company in the travel and expense management space. It provides powerful online solutions to customers in more than 35 countries. Serko is listed on both the Australian and New Zealand stock exchanges. 

Serko share price

The Serko share price took a massive hit during the first wave of coronavirus. This was not surprising considering its key market and customer base. Most companies had to all but stop corporate travel in March this year. Serko didn’t get off easy with the company’s share price practically falling off a cliff. However in late March, we saw very much a ‘V-shaped recovery’ in the Serko share price.

Serko fell from heights of $5.50 right down to 90 cents in a matter of 60 days. The good news for investors is that since the March lows, Serko has managed to claw its way back up to a price of $3.86 at the time of writing. It’s certainly on the up and up. One thing I really like is that the Serko share price has struggled to get past $3.70 since June, however this week it’s finally broken through. I hope this is a positive breakout and it continues up. The Serko share price is up more than 4% this week.

Why I like Serko

While Victoria seems destined for indefinite lockdowns, the rest of the country is half way back to a normal existence. Serko’s services extend internationally and most countries are also working hard on getting their economies back to normal. With news of a vaccine as soon as January 2021 on the rise, Serko is in prime position to capitalise on a returning corporate travel market. This is absolutely one of my top ASX shares to buy this week.

CSL Limited (ASX: CSL)

About CSL

CSL researches, develops, manufactures, markets and distributes bio pharmaceutical products. Its market base is huge, with products being distributed to major countries such as Australia, the United Kingdom, Germany, the United States, Switzerland, China and many others. 

CSL share price

The CSL share price has been floating between about $270 and $300 for the last couple of months. CSL took an initial hit in the March crash, but recovered almost instantly. Still, it’s down to around $280 today from its previous heights of $340, meaning that it’s trading at approximately a 17.6% discount. I think the current CSL share price is great value considering the scope of the company and its future prospects.

Why I like CSL

CSL has over 100 years experience in its field. It’s a major player and isn’t going anywhere anytime soon. It also has a string of achievements to its name in the medical space.

One of the main reasons CSL is on my watch list is because of its potential to be involved in the production of a coronavirus vaccine. CSL is in prime position to produce millions of doses of a potential vaccine. The federal government recently announced it would commit up to $1.7 billion towards Australia’s vaccine production.

With such a huge history of success, I believe CSL will be heavily involved in the fight against the pandemic. This is a company that was already strong and, in my view, this latest development only makes it stronger.

Xero Limited (ASX: XRO)

About Xero

Xero is a SaaS company offering cloud-based software spanning a huge number of areas to business owners. Xero’s platform encompasses tax, cash flow, workflow, invoicing, expense management and many other aspects of business operations. Xero has over 2 million active subscribers. Even more impressive is the fact that it added almost 100,000 new customers last quarter. Xero services multiple industries including eCommerce, hospitality, construction, healthcare, farming, manufacturing and many others.

Xero share price

The Xero share price has taken a dip recently, presenting a buying opportunity. Down almost 8% since the start of September, I think this company is great value. Xero has shown incredible strength since the March crash, not only recovering lost ground, but exceeding previous highs. 

Why I like Xero

Xero helps businesses operate more efficiently. It also helps business owners run their companies from any location. This is critical in a rapidly changing business landscape. Considering the current state of the world, the work from home revolution and the huge number of new small businesses being launched, Xero is in a prime position to benefit. It is one of my top ASX shares to buy this week.

Foolish takeaway

I like to look for companies that make sense to buy in the current climate. Although we’re not over coronavirus, we are certainly making progress towards an economic recovery, which is why I’m pro travel and health. We are also becoming an online world more than ever before. I believe the companies that capitalise on these trends are the ones that will ultimately win. 

More reading

• Is the Xero (ASX:XRO) share price a cheap buy?
• Here’s why some ASX dividend shares just go nowhere
• 3 high quality ASX shares for smart investors to buy today
• 3 ASX high-growth ETFs growth investors can’t ignore
• 3 ASX 200 shares to buy with $3,000 this week

glennleese 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., Serko Ltd, and Xero. The Motley Fool Australia has recommended Serko 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.

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