The CSL Limited (ASX: CSL) share price edged 0.17% lower yesterday to close at $287.51 per share. The Aussie biotech’s shares have climbed as high as $342.75 in 2020 before slumping in late May.

Here are a few reasons why I think CSL could be a strong buy at its current price.

Why the CSL share price could be a strong buy

CSL is amongst the largest ASX 200 shares on the market with a $130.54 billion market cap. I think the CSL share price could be a buy, given large caps have tended to outperform small caps in past market downturns.

The company is a leading healthcare player, which should help support CSL’s valuation in 2020. The Aussie company has a strong presence in both rare and serious diseases and influenza vaccines and antivenoms.

Given its areas of specialisation, you may have expected the CSL share price to soar amid the coronavirus pandemic. However, CSL isn’t heavily involved in the race for a COVID-19 vaccination.

That being said, the biotech giant has partnered with the University of Queensland in a COVID-19 vaccine development program. CSL is also investigating the role that immunoglobulin could play in terms of COVID-19 treatment here in Australia.

I think much of CSL’s earnings will continue to hold up despite the pandemic. The Aussie healthcare group already reaffirmed its earnings guidance in April 2020.

That alone doesn’t mean the CSL share price is in the buy zone. I think the key is to not overpay, even for high-quality ASX shares.

At $287.51 per share, I think CSL is trading cheaply right now. Even in the midst of the recent bear market, CSL shares fell to just $270.88 on 20 March.

The current price-to-earnings ratio of 42.55 times does look a touch high. However, I think the support around the current CSL share price level combined with a strong earnings profile is worth paying for in the current market. 

More reading

• 10 quality ASX shares to buy in June
• 3 fantastic ASX growth shares I would buy and hold for decades
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises again, ASX banks push higher
• Are ASX bank shares finally back in the buy zone?

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 CSL Ltd. 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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A new month is on the horizon, so what better time to see if your portfolio could do with some new additions.

Below I have picked out 10 quality ASX shares which I think have the potential to be market beaters in the coming years. Here’s why I would buy them in June:

a2 Milk Company Ltd (ASX: A2M)

I continue to believe that a2 Milk Company would be a great ASX share to own. This is largely down to the increasing demand for its infant formula in China and its relatively modest market share in the lucrative market.

Altium Limited (ASX: ALU)

Altium is an award-winning printed circuit board (PCB) design software provider. Over the last few years it has carved out a leading position in this growing market. Which is a big positive given the proliferation of electronic devices. This is likely to lead to increasing demand for its software over the next decade.

Appen Ltd (ASX: APX)

Another ASX share to consider is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Appen prepares or creates the data for the machine learning models of some of the largest tech companies such as Facebook and Microsoft. It also assisted in the creation of Apple’s Siri.

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company’s shares have fallen heavily this year due to the pandemic. The good news is that casinos are now starting to reopen, which should lead to a rebound in demand for its poker machines. In addition to this, its Digital business has been booming during lockdowns and is generating material recurring revenues.

CSL Limited (ASX: CSL)

I think this biotherapeutics giant could be a great long term option. I continue to believe CSL will be a market beater over the next decade. This is thanks to the increasing demand for immunoglobulins, its growing plasma collection network, and its pipeline of potentially lucrative products.

Kogan.com Ltd (ASX: KGN)

This ecommerce company’s shares have been on fire over the last couple of months thanks to a spike in sales and customer growth during the pandemic. Despite this, I would still be a buyer of its shares with a long term view. Especially given how the crisis appears to have accelerated the structural shift to online shopping.

Megaport Ltd (ASX: MP1)

Megaport is an elasticity connectivity and network services company. Its increasingly popular service allows users to increase and decrease their available bandwidth in response to their own demand requirements. This is instead of a user being tied to a fixed service level on long-term and expensive contracts. Demand for its service has been growing very strongly, leading to stellar recurring revenue growth.

Nanosonics Ltd (ASX: NAN)

Another ASX share to consider is Nanosonics. It is an infection control specialist which I believe has exceptionally strong growth potential. This is due to the sizeable market opportunity of its industry-leading trophon EPR disinfection system for ultrasound probes and the impending release of new products. These products are targeting other unmet needs in a market which infection control is becoming increasingly important.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a fast-growing donor management platform provider for the faith and not-for-profit sectors. It has been growing its earnings at a rapid rate over the last couple of years and recently provided guidance for more strong growth in FY 2021. Looking further ahead, it is targeting a 50% share of the medium to large church market. This is a US$1 billion opportunity and many multiples of its current revenue.

ResMed Inc. (ASX: RMD)

A final ASX share to buy is ResMed. It is a medical device company with a focus on the sleep treatment market. I believe it is in a strong position for growth due to its industry-leading products and massive market opportunity. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide. However, only ~20% of these sufferers have been diagnosed.

More reading

• Why I think the CSL share price is a strong buy today
• 3 fantastic ASX growth shares I would buy and hold for decades
• Why now could be a better time to buy the underperforming CSL share price
• These ASX tech shares could take your portfolio to the next level
• Grow your wealth with these exciting ASX mid cap shares

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., MEGAPORT FPO, and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk, Altium, and Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, Nanosonics Limited, and ResMed Inc. 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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Is the Telstra Corporation Ltd (ASX: TLS) share price a buy? The telco could be one of the most defensive shares within the ASX 20.

We’ve already seen during this period how uncertain shares like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) can be at a time like the coronavirus.

I don’t know about you, but the internet has been one of the main things that has helped during this coronavirus period. Whether that’s communication, entertainment, work – Telstra (and other telcos) help deliver that imperative service.

The Telstra share price has been rightly falling over the past five years. The NBN has cut into profit margins and there has been strong price competition on 4G mobile.

5G could change everything for the Telstra share price

A new technology has the potential to change everything. New technology offers growth potential we don’t even know of yet. We couldn’t have imagined how many new services would have become mainstream in the world thanks to 4G. Various Alphabet (Google) offerings, Facebook, ridesharing, food delivery and so on. Telstra’s share price and earnings hasn’t captured much of this value.

What’s going to happen with 5G? Well technology like automated cars and virtual reality or augmented reality are already planned services. That alone will be a huge change for life.

But we don’t yet know what the economics of what 5G will be. How much will customers have to pay each month? Will we have to pay monthly for things like our car?

How the pricing is structured is important. What’s to stop 5G just turning into a price competition like 4G has? That would be bad for the Telstra share price.

At the moment Telstra is in a good position. It’s probably going to be (one of) the first to bring 5G to the national Australian market. The delayed merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Australia may help Telstra. First, there may be less price competition (and higher margins). Second the initial block by the ACCC has meant that TPG and Vodafone are behind Telstra in the 5G construction timetable.

Foolish takeaway

Is the Telstra share price a buy? Well the telco is investing heavily for 5G which is good. But FY20 may not show any profit growth despite all of the useful cost savings it has been implementing. It’s trading at 18x FY21’s estimated earnings. I want to wait until seeing how 5G will help Telstra before buying. I think I’d rather buy TPG today. There are plenty of other shares I’d rather buy in the ASX 200 too.

More reading

• Top brokers pick the latest ASX shares to buy today
• Where will the Telstra share price be next year?
• Top brokers name 3 ASX shares to buy right now
• 3 easy rules for building a massive ASX share portfolio
• Tax planning for ASX 200 investors

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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ASX 200 dividend share Orora Ltd (ASX: ORA) is paying a 50% franked dividend of $0.373 per share. At Thursday’s closing price, this equates to a dividend yield of 14.3%. The company goes ex-dividend on 19 June. This means that as long as you buy before that date, you get the dividend.

Moreover, the company has announced an additional return of capital from a recent asset sale. This raises the overall payment to 18.8% at time of writing for this dividend share. 

Orora’s share price has a history of rising prior to the ex-dividend date. The higher the share price you buy in at, the lower the dividend yield, so it would be wise to act very quickly to secure a high yield.

Dividend history

Over a 6-year period, Orora has grown its dividend payment by an average of 13.8% every year. The company also shows all the signs of being well managed. It grows its earnings per share every year, and its share price has also grown by an average of 14% per year over a 6-year period.

Company overview

Orora operates a beverage and packaging business in Australia and the United States. It produces bottles, boxes, cartons and aluminium cans, and general packing products. In October 2019 it sold its Australasian fibre business to Japan’s Nippon for $1.7 billion. This provided the company with a $1.2 billion windfall, half of which it will be returning to shareholders alongside the dividend payment. 

At the time of writing, Orora is selling at a price-to-earnings ratio (P/E) of 22.22. This is below the company’s 10-year average. So while it is high, the market has factored in growth given the company’s management history. The Orora share price is still down by 16%, year to date.

Foolish takeaway

I believe this dividend share is a rare income and value investing opportunity. Orora is a good company at a good price with an 18% definite payment within less than a month. The scope for future share price growth is very high over the medium term, and the company will likely continue to pay reasonable dividends based on its history. However, for taxation purposes only 50% of the initial dividend payment is franked.

More reading

• Why Dicker Data, Medibank, Mesoblast, & Orora are dropping lower
• Why Inghams, Orora, Redbubble, & ResMed shares are dropping lower
• Top broker lists 15 ASX shares with safer dividends than Westpac

Motley Fool contributor Daryl Mather 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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If you’re a growth investor, then you’re in luck. At present the Australian share market is home to a number of companies growing their earnings at a rapid rate.

Three of the best ASX growth shares that I would buy today are listed below. Here’s why I think they are top buy and hold options:

CSL Limited (ASX: CSL)

One of my favourite ASX growth shares is CSL. The biotherapeutics company has been consistently growing its earnings at a solid rate and looks well-placed to continue this positive trend in FY 2020. For example, in the first half CSL delivered an 11% increase in profit after tax to US$1,248 million. This was driven by strong growth in immunoglobulin products, the continued evolution of its haemophilia therapies portfolio, and a strong performance by its Seqirus influenza vaccines business. Pleasingly, I expect these factors to lead to further growth in the coming years and be supported by its lucrative research and development pipeline.

NEXTDC Ltd (ASX: NXT)

Another top option for growth investors to consider is this innovative data centre-as-a-service provider. It has been experiencing increasing demand for its centres in recent years thanks to the rise of cloud computing. Over the last four years NEXTDC’s customer numbers have grown at a compound annual growth rate (CAGR) of 21%. Growing even quicker have been interconnections, which have grown at a CAGR of 31% over the same period. This has been driven by the increasing use of hybrid cloud and connectivity inside and outside its data centres due to customers expanding their ecosystems. This is a big positive as it is driving higher margins and sticky recurring revenues. With the shift to the cloud continuing to accelerate, the future looks bright for NEXTDC’s data centres.

Pushpay Holdings Group Ltd (ASX: PPH)

A final ASX growth share to consider buying is Pushpay. Pushpay started life as a mobile giving solution that made generosity easy and simple. Since then it has evolved into a full engagement solution that serves over 10,500 churches around the world. It connects them to the local community and inspires generosity. The increasing demand for its platform, which has accelerated during the pandemic, has resulted in stellar operating revenue and profit growth. The good news is that the company is only serving a small portion of its market, which means it still has a very long runway for growth.

More reading

• Why now could be a better time to buy the underperforming CSL share price
• 4 ASX fintech shares to make you rich
• 3 ASX shares Warren Buffett couldn’t ignore today
• 1 key trait to look for with most top ASX growth shares
• Should you ever buy ASX shares at an all-time high?

James Mickleboro owns shares of NEXTDC Limited. 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 PUSHPAY FPO NZX. 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 3 fantastic ASX growth shares I would buy and hold for decades appeared first on Motley Fool Australia.

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