It was a disappointing month for the S&P/ASX 200 Index (ASX: XJO) in September. A heavy decline at the end of the month led to the benchmark index losing 4% of its value during the period to end it at 5,815.9 points.

Thankfully, not all shares on the index tumbled lower with the market last month. Four ASX 200 shares that surged higher are listed below.

Here’s why they were the best performers on the index in September:

SKYCITY Entertainment Group Limited (ASX: SKC)

The SKYCITY share price was the best performer on the ASX 200 last month with a 21.2% gain. Investors were buying the casino and resorts operator’s shares following the release of its FY 2020 results. Although SKYCITY posted a disappointing decline in normalised earnings, its trading update gave investor sentiment a boost. Management revealed that local gaming in Auckland and Hamilton is now ahead of pre-COVID levels and local gaming in Adelaide is now consistent with pre-COVID 19 levels. As a result, the company is guiding to a return to profit growth in FY 2021.

CSR Limited (ASX: CSR)

The CSR share price was on form in September and charged 16.7% higher. This appears to have been driven partly by a broker note out of Macquarie. According to the note, the broker has an outperform rating and improved price target of $4.60 on the building products company’s shares. It likes CSR due to its strong balance sheet, which it feels will help it navigate tough markets. It is also becoming increasingly bullish on its building products segment and has lifted its estimates accordingly.

Boral Limited (ASX: BLD)

The Boral share price wasn’t far behind with a 13.7% gain over the month. The catalyst for this gain appears to have been a broker note out of Citi. It upgraded the building materials company’s shares to a buy rating on the belief that construction markets are rebounding. In addition to this, it notes that there is a new management team in place and a portfolio review is coming up in October. It has suggested the company could offload its landbank, which could be worth up to $1.23 per share.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven share price finally found some form and charged 12.4% higher in September. A broker note also appears to be the driver of this gain. According to a note of UBS, its analysts retained their buy rating and lofty $2.00 price target on the coal miner’s shares. UBS notes that Whitehaven’s shares have fallen materially this year due to a decline in coal prices. However, it feels investors will be rewarded if they’re patient and coal prices recover. The Whitehaven share price ended the month at $1.04.

More reading

• Why the SKYCITY share price jumped 23% in September
• ASX 200 ends the day flat, BOQ (ASX:BOQ) shares drop on impairments
• The latest 3 ASX stocks that brokers just upgraded to “buy”
• Which shares to buy now with $10,000
• 3 profitable October ASX 200 trends

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sky City Entertainment Group 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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The Reliance Worldwide Corporation Ltd (ASX: RWC) share price will be on watch today after the release of a trading update ahead of its investor day event.

What did Reliance announce?

This morning the plumbing parts company revealed that its sales have continued their strong recovery early in FY 2021.

According to the release, up to and including 25 September, the company’s sales performance in each of its three regions remains in line with what was reported in late August.

In the Americas its sales were up 15% in August and 29% in September compared to the prior corresponding period. Management revealed that it experienced improved sales in wholesale channels and a continued recovery in the Canadian market. US retail and hardware point of sales growth in September was relatively consistent with July and August trends.

Though, it has warned that it doesn’t expect this elevated demand to continue through FY 2021. Especially with COVID-19 stimulus measures winding down.

In the APAC region, Reliance recorded a 2% decline in sales in August and a 4% lift in September. This was driven largely by external sales growth.

Once again, management has warned that lower housing approvals and new dwelling commencements could cause headwinds.

Finally, in the EMEA region the company recorded a 5% increase in sales in August and a sizeable 24% jump in September. Management advised that this jump was driven by pent-up demand following lockdowns in Europe and inventory rebuilding.

Remaining cautious.

The company’s CEO, Heath Sharp, commented: “The first quarter of the 2021 financial year has been particularly strong from a sales perspective. Looking ahead, we remain cautious. The US has been boosted by the surge in DIY activity and the return of construction activity to pre-COVID levels, but without further government stimulus measures this growth is likely to slow.”

“We expect some softening in the Australian market as the reduction in new housing construction approvals leads to lower building activity. In the UK we are uncertain as to where underlying demand levels will settle once the pent-up demand for products and plumbing services has been satisfied. We are also watchful as to the impact the recent rise in COVID-19 case numbers may have on demand and plumbing activities there,” he added.

In light of the above, the CEO has warned investors not to expect this level of sales growth to persist.

Mr Sharp concluded: “Given the continuing uncertainties in all our markets as a result of COVID-19 we would caution against extrapolating the first quarter’s sales performance for the full year.”

More reading

• Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today
• UBS picks the best and worst ASX stocks from the reporting season

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 Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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I think there are some ASX growth shares that I’d buy today for growth and income.

Things are getting a bit more volatile as we get closer to the US election. But there are some businesses that will likely do well over the long-term, even if the short-term is tough. COVID-19 and vaccine hopes are also bubbling in the background.

Even if there’s volatility in the short-term, it can be nice to receive income along a bumpy ride.

Here are two ideas that I think that could be good for the long-term:

Magellan High Conviction Trust (ASX: MHH)

This is a listed investment trust (LIT) that tries to invest in the highest-quality international shares that it can find.

The ASX share is operated by highly respected fund manager Hamish Douglass and his team at Magellan Financial Group Ltd (ASX: MFG).

I think that it’s a good idea to get exposure to global shares because the large global ones have much better growth potential than most of the large ASX shares in my opinion.

As the name suggests, it’s a high conviction trust, meaning that it usually only has around 10 positions in the portfolio. That means it may be more volatile year to year, but it also has the potential to outperform materially if Magellan’s picks are good.

So, what are Magellan’s picks?

Some of its high-conviction picks include: Alibaba, Alphabet, Microsoft, Tencent and Facebook. These are some of the best technology businesses in the world. They have good gross profit margins, expanding user bases and online models which allow for quick expansion and continuing operations during COVID-19.

At 30 June 2020 its other investments included Starbucks, SAP, Visa and Estee Lauder.

Since inception in October 2019 it has returned 10.4% after its fees (the base fee is 1.5% per annum. That’s quite high, but you don’t get this kind of portfolio construction without paying a higher price.

It’s quite defensively positioned. At the end of August 2020, 20% of its portfolio was invested in cash. That provides protection against market selloffs and gives it the ammunition to buy beaten-down shares if they fall in price.

The ASX share targets a 3% distribution yield and the Magellan High Conviction Trust is currently trading at a 7.7% discount to the intraday indicative net asset value (NAV).

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large franchisee of KFC outlets in Australia and Europe.

The ASX share is taking COVID-19 in its stride. I thought the FY20 result was impressive, revenue increased 8.9% to $981.7 million. This was partly helped by the continuing expansion of Taco Bell outlets in Australia, which grew to 12 in FY20.

Before AASB 16, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 6.3% to $120.6 million and underlying net profit grew 5.1% to $47.3 million.

Collins Foods increased its total FY20 dividend to 20 cents per share, up from 19.5 cents last year.

The ASX share’s performance has been impressive over the short-term and the long-term in my opinion. Its steadily growing store count is helping increase its profitability. Decent same store sales (SSS) growth is helping the underlying business grow faster than inflation.

All Collins Foods needs to do is add a few more outlets to its network each year to improve its overall earnings capability. People seem to want to keep buying KFC, even during a pandemic, which is great news for the ASX share.

Collins Foods is currently trading at 25x the underlying net profit of FY20. It’s not cheap. But interest rates are really low, so I think the valuation is decent when combined with the grossed-up dividend yield of 2.8%.

More reading

• ASX 200 down 0.9%: Tech shares push higher, gold miners sink, New Hope results
• Why Collins Foods, ResMed, Regional Express, & Xero shares are pushing higher
• Magellan (ASX:MFG) reveals best share buys for September
• 2 stellar mid cap ASX shares to buy in September
• 3 ASX shares I’d happily buy every month

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods 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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Generating $50,000 a year will be enough to supplement a modest income or to provide a reasonable income for a debt free life. Either way, it is a significant passive income. To achieve this at an average dividend yield of, say, 6%, then you require a portfolio of approximately $850,000. For me personally, I use a combination of growth shares and high yield ASX dividend shares to achieve this.

If you are lucky enough and wise enough to begin early, then you can achieve this via regular contributions at a reasonable return. For example, an investor could achieve this by contributing $10,000 a year, for 27 years at a return of 8%.

This sounds hard to begin with, and it is. Nonetheless, through careful spending, savings, and the magic of compound interest this can happen even quicker. In addition, if you were to reinvest the 6% dividend payment every year then this could shave nearly a decade off the time.

Here are some options for high yield dividend shares to kick start a portfolio that will achieve this even faster. However, at all times you have to protect your capital. At the very least your investment cannot continually shed capital value.

Fortescue Metals Group Limited (ASX: FMG)

Among general ASX dividend shares I believe Fortescue is one of the best. Right now many advisors are concerned over the high iron ore price and the high demand. However, even at a much lower ore price, Fortescue will remain a very profitable company able to operate at scale. Fortescue pays a current trailing 12-month (TTM) dividend yield of 10.82% and a price to earnings ratio (P/E) of 7.46.

The company has grown its share price at a compound annual growth rate (CAGR) of 14.6%. This is a higher share price growth and dividend yield to bring forward the end date.

Centuria Office REIT (ASX: COF)

This office REIT is one of the best placed ASX dividend shares to continue paying a high yield. Over the 5 years this real estate investment trust (REIT) has been listed, its share price CAGR has been under 1%. However, it is currently 30% lower in year to date trading and I expect it to rise back over time. However, aside from the share price growth, Centuria Office REIT pays a TTM dividend yield of 8.57%. This is a great yield comparatively speaking. 

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the nation’s great investment managers. In fact, this ASX dividends share price has had an amazing CAGR of 52.7% over the past 10 years. If it continues to grow at this rate, an investment would double in two years. However, even if it falters, it is still likely to continue growing in the double digits as this is a very competent investment company. On the downside, the current TTM dividend yield is only 3.75%. 

The goal here is to build a resilient and robust portfolio. We sacrificed share price growth with Centuria Office REIT for the dividend; we sacrifice the dividend with Magellan for share price growth.

A small Cap ASX dividend share

This is the higher risk end of the market. However, I include this because if you choose a company with a large addressable market, and a proven business model, it reduces the risk and increases the potential return. 

G8 Education Ltd (ASX: GEM) is a small cap childcare and early learning company with assets in Australia and Singapore. Over the past 10 years, the company has had a share price CAGR of 16.7%, enough to triple the initial investment in this time. Furthermore, it presently has a TTM dividend yield of 10.16%.

More reading

• Top ASX Stock Picks for October 2020
• 3 ASX 200 passive investing shares to buy today
• Will the Fortescue (ASX:FMG) share price outperform in 2021?
• 3 reasons to buy Magellan (ASX:MFG) today
• Why Magellan Global Trust (ASX:MGG) could be a retiree’s dream share

Motley Fool contributor Daryl Mather owns shares of Centuria Office REIT and Fortescue Metals Group Limited. 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 Serko Ltd (ASX: SKO) share price won’t be going anywhere on Thursday after the travel and expense technology solution provider requested a trading halt.

Why is the Serko share price in a trading halt?

Serko requested the trading halt whilst it undertakes an equity raising of up to NZ$55 million to accelerate and execute on the opportunities arising from a changing business travel market.

This equity raising comprises a NZ$45 million fully underwritten placement and a NZ$10 million non-underwritten share purchase plan.

The placement is underwritten at a floor price of NZ$4.35 per share, which represents a 3.5% discount to its last close price of NZ$4.51 per share and a discount of 4.6% to the 5-day volume weighted average price of NZ$4.56.

Serko’s CEO, Darrin Grafton, commented: “The COVID-19 pandemic is creating opportunities for us to accelerate the development and rollout of our technology to support our Travel Management Company (TMC) and reseller partners.”

“In recent months, we have received inbound demand from these organisations as they consider, plan and request accelerated timetables to onboard new customers, deliver new features and expand existing partnerships. This demand has exceeded our expectations and is highlighting increased opportunities from a changing travel industry,” he added.

Mr Grafton also explained why the company is raising funds at this point despite having NZ$33.6 million of cash on its balance sheet.

Noting that the timing of meaningful revenue generation is uncertain, he said: “Serko’s priority is to ensure it has the resource and capacity to execute on its strategic priorities, positioning the company for growth when business travel normalises and to capitalise on opportunities arising from changes to the travel industry.”

How will the money be spent?

The proceeds of the equity raising will be used to accelerate the development of its globally scalable, localised travel platform, allowing Serko to be well positioned for recovery as business travel increases. It is also progressively scaling-up to bring the power of Zeno to the global market.

Funds will also be used to support increased demand for customer and reseller onboarding to drive volume across all markets. This is particularly the case in Europe and North America.

In addition to this, it plans to expand the breadth and depth of content channels across all markets, responding to new and changing business traveller needs.

More reading

• Top ASX shares to buy 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 Serko Ltd. 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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The SKYCITY Entertainment Group Limited (ASX: SKC) share price rocketed 22.8% higher in September to $2.75 per share.

Why the SkyCity share price rocketed higher in September

The September surge comes in a wild year for the wagering group which saw its valuation hammered lower in the March bear market.

A solid outlook for FY21 was a partial catalyst for the strong share price move.

SkyCity reported a 24% fall in normalised revenue but is expecting earnings before interest, tax, depreciation and amortisation (EBITDA) to climb higher this financial year.

There are still plenty of barriers ahead for the casino operators around the country. The SkyCity share price is still down 24.5% for the year alongside the likes of Crown Resorts Ltd (ASX: CWN) and Star Entertainment Group Ltd (ASX: SGR).

SkyCity also provided a 22 September update on its New Zealand properties. Positively, New Zealand’s easing restrictions mean there can be more events and promotions with electronic gaming machines and gaming tables operating as usual.

Provided coronavirus cases remain low, SkyCity earnings could see a significant contribution from the New Zealand operations in FY21.

Will it continue to climb in October?

I think we could see the SkyCity share price move sideways for this month. The market is inherently forward-looking and should be pricing in easing coronavirus restrictions across the country.

Any surprise announcements about casino openings would obviously see SkyCity’s value surge. Barring any major surprises, however, I don’t think we’ll see similar strong gains this month.

Uncertainty around COVID-19 is the major barrier. Investors don’t like uncertainty, especially when its around business continuity.

That means the SkyCity share price is not what I’d consider a safe buy right now. However, progress towards normalising the economy in Australia and New Zealand could spark a share price rally in late 2020.

More reading

• The ASX stocks most leveraged to the Victorian economy re-start
• 4 ASX shares rated as strong buys by brokers
• Macquarie says ASX value shares will outperform growth stocks from here
• ASX 200 falls slightly, miners surge higher
• Will the Star Entertainment (ASX:SGR) share price boom in 2021?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited and Sky City Entertainment Group 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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The HUB24 Ltd (ASX: HUB) has had a strong run in recent months. Shares in the wealth management company have rocketed 98.9% higher to $18.50 per share.

That’s good news for investors, but others may be wondering it can repeat the trick again.

Can the HUB24 share price double again by December?

HUB24 now has a market capitalisation over $1 billion but a price to earnings (P/E) ratio of 144.0x. 

That says to me right off the bat that it could be overvalued. The HUB24 share price continued to climb in August after what I saw as a positive result.

HUB24 saw earnings before interest, tax, depreciation and amortisation (EBITDA) surge 60% higher to $24.7 million. Platform net inflows were up 27% to $4.95 billion with underlying profit up 49% to $10.1 million.

The company also upgraded its dividend which bodes well for a strong FY21. 

The HUB24 share price is now up 66.7% for the year but has had an especially strong last few months. That says to me that momentum could be a factor heading into 2021.

I think the growth story is solid and easy to buy into. The real question is how much investors are willing to pay for those growth prospects.

Normally, I would say that a P/E ratio of 144.0x is too high to buy. However, 2020 is no normal year and the coronavirus pandemic has boosted ASX tech shares higher.

Some of the hottest shares on the market right now like Afterpay Ltd (ASX: APT) haven’t even posted a profit. That means HUB24 could actually be one of the better fintech options on the market right now.

Foolish takeaway

If inflows remain strong and trading volumes can remain high, I think the HUB24 share price could be headed higher. I wouldn’t bet on it happening by December but I think it could be a real chance by early 2021.

More reading

• 5 things to watch on the ASX 200 next week

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed notably lower. The benchmark index dropped 2.3% lower to 5,815.90 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rebound.

The ASX 200 is expected to rebound on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 11 points or 0.2% higher this morning. Overnight the Dow Jones rose 1.2%, the S&P 500 climbed 0.8%, and the Nasdaq pushed 0.75% higher.

Mesoblast FDA update.

The Mesoblast limited (ASX: MSB) share price will be in focus today. Earlier this year the United States Food and Drug Administration (FDA) set Wednesday evening as the review date for its remestemcel-L (RYONCIL) product. Mesoblast is seeking approval to use it as a treatment for paediatric patients with steroid-refractory acute graft versus host disease.

Oil prices mixed

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Thursday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price rose 1.4% to US$39.85 a barrel and the Brent crude oil price has dropped 0.2% to US$40.95 a barrel. U.S. oil jumped higher amid optimism over inventory data.

Gold price tumbles.

Gold miners such as Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could drop lower today after the spot gold price weakened. According to CNBC, the spot gold price is down 0.7% to US$1,889.70 an ounce. This meant that the precious metal had its worst month in almost four years.

Dividends being paid.

A number of popular dividends shares will be rewarding their shareholders with pay checks on Thursday. Eligible shareholders of network services company Service Stream Limited (ASX: SSM) and conglomerate Wesfarmers Ltd (ASX: WES) are scheduled to receive their dividends later today. They are paying 5 cents and 95 cents per share dividends, respectively.

More reading

• Forget term deposits and buy these ASX dividend shares for income
• Are Coles (ASX:COL) shares a top option for ASX dividend investors today?
• ASX 200 sinks 2%, Corporate Travel (ASX:CTD) soars 8%
• ASX 200 down 1.1%: Corp Travel Management surges higher, gold miners rise, Santos given approval
• Santos (ASX:STO) share price on watch after Narrabri Gas Project approval

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Service Stream 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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We asked our Foolish writers to pick their favourite ASX stocks to buy in October. 

Here is what the team have come up with…

Daniel Ewing: Damstra Holdings Ltd (ASX: DTC) 

Damstra is an Australian provider of integrated workplace management solutions to multiple industry segments across the globe. Hence, the company is perfectly positioned to benefit from the changed working conditions of the post-pandemic world. Damstra’s extensive range of products is evidence of this, with its recently added fever detection software being particularly relevant in current conditions.

The company also recently completed its acquisition of Vault Intelligence Ltd (ASX: VLT), a software company offering solutions which combine health, safety, compliance and risk management. Vault is an important lever to Damstra’s United States expansion, with the company aiming to increase the 25% of its revenue that is currently generated internationally.

Motley Fool contributor Daniel Ewing owns shares of Damstra Holdings Ltd.

Chris Chitty: Magellan Financial Group Ltd (ASX: MFG)

Magellan has a strong track record as a fund manager which dates back to 2006. This company has steadily grown its funds under management and now manages over $100 billion spread across more than ten funds and exchange-traded funds (ETFs), making it one of Australia’s largest fund managers.

Magellan is also set to extract value from its recently announced 40% interest in Australia’s newest investment bank, Barrenjoey. Given Magellan’s prospects to continue growing in size and reach, I think it could offer huge additional value to shareholders in the near future.

Motley Fool contributor Chris Chitty does not own shares of Magellan Financial Group Ltd.

Aaron Teboneras: Fortescue Metals Group Limited (ASX: FMG) 

The Fortescue share price has fallen around 15% (at the time of writing) since the company released its full-year results in late August. Although this was mostly attributed to investors taking profit, I believe it has created a strong buying opportunity. 

Fortescue reported a stellar scorecard for FY20, achieving record shipments of iron ore and boasting the world’s lowest cost margins. The mining giant has also heavily invested in the future. Its $1.7 billion Eliwana Mine and Rail project is due to be completed in December this year. 

I think that Fortescue’s lean business model coupled with its share price dip makes it a top ASX stock pick for October. 

 Motley Fool contributor Aaron Teboneras does not own shares of Fortescue Metals Group Limited. 

The company is selling at a relatively high price-to-earnings (P/E) ratio of 31.2, at the time of writing. I believe this is high because earnings reduced by 60% during the pandemic lockdown, not because the share price is inflated. Moreover, the company has a trailing 12-month dividend yield of around 4.3%.

Motley Fool contributor Daryl Mather does not own shares of Centuria Capital Group.

Bernd Struben: CSL Limited (ASX: CSL)

If you’re looking for a quality, long-term investment for October, look no further than CSL Limited. The global biotechnology company develops innovative biotherapies and influenza vaccines. In the wake of the global pandemic, CSL’s services will likely see sustained growth in demand.

CSL has delivered strong, reliable share price growth to patient investors since listing on the ASX. At the time of writing, the CSL share price is up around 43% since October 2018 and around 170% since October 2016. 2020 has been exceptionally choppy, but the CSL share price is still up around 4% year to date at the time of writing. CSL also has an annual dividend yield of 1%, unfranked.

Motley Fool contributor Bernd Struben does not own shares of CSL Limited.

Tristan Harrison: Redbubble Ltd (ASX:RBL)

In FY20, Redbubble saw its marketplace revenue grow by 36% with gross profit rising 42% and operating earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by 141%. In the first month of FY21, marketplace revenue grew by 132% with similar sales levels in the first two weeks of August. I think Redbubble is on track to deliver a strong FY21 result and may benefit from improving economies of scale over the coming years.  

The Redbubble share price still looks good value to me considering its $38 million of free cash flow generated in FY20 and its likely future growth. 

Motley Fool contributor Tristan Harrison does not own shares of Redbubble Ltd. 

Regan Pearson: Eroad Ltd (ASX: ERD)

Eroad Ltd is a Kiwi tech company that provides devices which track vehicles and collect road user charges. Although the company only listed on the ASX in September, it has been achieving strong growth across New Zealand and the US, with annual revenue growing at a compounded annual rate of 42% over the last six years. The company has been burning through cash to fund this growth, but it did report a small profit in the 2020 financial year.

At the current Eroad share price of $4.04 (at the time of writing), I think the company’s shares offer great, long-term value.

Motley Fool contributor Regan Pearson does not own shares of Eroad Ltd. 

Ken Hall: Super Retail Group Ltd (ASX: SUL)

The Super Retail share price has surprised many in 2020 but I think it has further to run. Its diversified retail portfolio has shown signs of strong cash generation. I think that bodes well for strong dividends in FY21 which could be valuable given the current market. On top of that, the Super Retail share price has already gained 3.4% this year (at the time of writing). That’s an impressive feat given the S&P/ASX 200 Index (ASX: XJO) has slumped lower in 2020.

That combination of capital gains and potentially strong dividends has me putting Super Retail shares in the buy zone. 

Motley Fool contributor Ken Hall does not own shares of Super Retail Group Ltd.

Brendon Lau: Newcrest Mining Limited (ASX: NCM)

Gold stocks have been underperforming in recent times. But I believe gold will start to rebound as we head to the November US Presidential Election, with the likely political uncertainty benefitting the precious metal. One good way to gain leverage to this thematic is to invest in our largest gold producer.

The Newcrest Mining share price has been lagging its peers with a near 10% decline over the past year compared to 20% plus gains by Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST). I believe the gap will start to close over the coming months.

Motley Fool contributor Brendon Lau owns shares of Newcrest Mining Limited.

Sebastian Bowen: Cochlear Limited (ASX: COH)

My October stock pick is this ASX health care giant. Cochlear is one of the most successful ASX companies from the past few decades in my view. It has managed to place itself in the seemingly permanent centre of the global hearing aid industry. With a 60% share of the global hearing aid/assistance markets and a growing presence in emerging markets, I think this company is well set up to thrive into the 2020s and beyond.

What’s more, I think the Cochlear share price is currently looking fairly cheap by historical standards and would make a great buy this October.

Motley Fool contributor Sebastian Bowen does not own shares of Cochlear Limited.

Glenn Leese: Openlearning Ltd (ASX: OLL)

Openlearning is a Sydney-based education software-as-a-service (SaaS) company with a massive global reach. It has pioneered creative concepts such as micro credentials and online portfolios for prospective employers to view. Openlearning is currently partnered with over 100 education institutions, has more than 2.5 million students and offers thousands of courses.

From March to early September, the Openlearning share price was ‘trapped’ between 18 and 28 cents. In mid-September, the share price finally broke out, reaching heights of 41 cents. I believe a recent pullback to 29 cents (at the time of writing) presents a value-for-money opportunity for investors to secure equity in Openlearning.

Motley Fool Contributor Glenn Leese owns shares of Openlearning Ltd.

James Mickleboro: Lendlease Group (ASX: LLC)

With the Lendlease share price down sharply in 2020, I think now could be an opportune time to make an investment. Especially given the international property and infrastructure company’s recent strategy shift. Lendlease’s new strategy has changed its business model and earnings mix towards that of industrial property giant Goodman Group (ASX: GMG). I believe this is a great move and has positioned the company perfectly to deliver solid and consistent earnings growth over the next decade.

Overall, I feel this could make its shares bargain buys at the current level.

Motley Fool contributor James Mickleboro does not own shares of Lendlease Group.

More reading

• ASX 200 down 1.1%: Corp Travel Management surges higher, gold miners rise, Santos given approval
• 3 ASX 200 passive investing shares to buy today
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• Forget day trading and buy and hold these fantastic ASX shares
• 3 reasons to buy Magellan (ASX:MFG) today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd and Super Retail Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. and OpenLearning 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 Top ASX Stock Picks for October 2020 appeared first on Motley Fool Australia.

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