We asked our contributors to pick their favourite ASX stocks to buy this month. Here are their top ideas.
Ry Padarath: Thorn Group Ltd (ASX: TGA)
Thorn Group has 'bulletproof' earnings, with profits dominated by recurring revenue from the Radio Rentals brand. Radio Rentals leases household goods to customers, with the option to buy them at the end of the lease. However, a recent report drew negative attention when it showed almost half of total revenue came from Centrelink payments.
The market punished the shares in fear of regulatory change, which the Government ruled out. This gives investors the chance to buy shares in a quality company with forecast profit growth and above market dividends, at a substantial discount to recent prices.
Motley Fool contributor Ry Padarath owns shares in Thorn Group Ltd.
Tim McArthur: Caltex Australia Limited (ASX: CTX)
Caltex isn't the easiest business to understand but after Chevron's sale of its 50% holding now could be a great time for investors to take a look at Australia's leading supplier of transport fuels and petrol store franchisor.
Caltex operates on a calendar year basis. Based on the group's Replacement Cost Operating Profit (RCOP) measure which arguably presents a clearer picture of Caltex's underlying performance than its statutory results, the company produced a 48.5% rise in RCOP after tax in 2014 to $493 million; or 183 cents on a per share basis. The higher profits also led to higher fully franked dividends with total dividends paid for 2014 increasing to 70 cents per share.
With the stock currently trading at the $35 level, down from $38 prior to Chevron's recent sell-down, investors have the opportunity to buy this leading company on a price-to-earnings ratio of 19.1x which looks reasonable compared with the wider market multiple.
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.
Owen Raszkiewicz: Woolworths Limited (ASX: WOW)
Every Australian would be familiar with our leading supermarket giant, Woolworths. However, recently investor sentiment has soured and the market appears to be overlooking the cash-generating ability of Woolworths throughout the economic cycle.
With its share price dropping 18% in the past year, Woolworths has moved into a compelling valuation range. Despite the threat from international rivals Aldi and Costco and ongoing losses from its Home Improvement division (which includes Masters), long-term investors could do a lot worse than snap up some shares today.
Motley Fool Contributor Owen Raszkiewicz has a financial interest in Woolworths (through a managed fund). Owen welcomes your feedback on Twitter @ASXinvest.
Mike King: Catapult Group International Ltd (ASX: CAT)
Catapult provides hardware and software for sporting teams and associations to allow them to monitor various aspects of their athletes, including rehabilitation off the field, and performance on the field. Already sporting (sorry!) most of Australia's top sporting teams as customers, including all AFL, NRL and every Super Rugby team, Catapult is growing exposure internationally, including into US basketball, National Football League (NFL) and the UK Premier League football (soccer).
With 70% of revenues coming from offshore, growing and recurring revenues, it shouldn't be long before Catapult starts generating handsome profits.
Motley Fool writer/analyst Mike King doesn't own shares in Catapult, but is watching the company closely.
Joshua Anderson: Boral Limited (ASX: BLD)
Boral Limited shares have been on a tear recently, rising 20% so far this year. I believe this will continue for the foreseeable future as Boral takes advantage of the pick up in housing construction, higher prices for its products and the benefits of a lower AUD on its US operations.
Boral also lifted its dividend by 21% as part of its most recent earnings announcement and with analysts predicting higher earnings this year, I wouldn't be surprised if further dividend increases are delivered to shareholders.
Motley Fool contributor Joshua Anderson does not own shares in Boral.
Tom Richardson: Veda Group Ltd (ASX: VED)
This data and credit analytics business has trended steadily higher since hitting the ASX boards back in December 2013 and it's not hard to see a bright future. The business collects public, private and commercial data to assist businesses in credit checks and identity verification procedures.
Revenues and profits have been growing like clockwork over the years and with a competitive advantage, barriers to entry, rock solid balance sheet, growing yield and reasonable valuation ($2.30) it looks a business to own.
Motley Fool Contributor Tom Richardson has no financial interest in Veda Group.
Sean O'Neill: G8 Education Ltd (ASX: GEM)
Regulatory issues delaying the settlement of 8 childcare centres (and thus the accrual of $10m in earnings), combined with fears of increased regulation impacting profitability have seen G8's shares sharply repriced recently.
Any regulatory changes are an 'if and when' situation, and unlikely to change the fundamentals of the whole childcare industry. Dentist 1300 Smiles Limited (ASX: ONT) still thrives after the removal of powerful government subsidies; this should be no different.
With a 6%+ growing dividend and fantastic price, I believe G8 Education is a great buy and I recently acquired shares at $3.71.
Peter Stephens: Ramsay Health Care Limited (ASX: RHC)
This company has stunning growth potential. For example, its bottom line is forecast to rise at an annualised rate of 19.7% during the next two years and Ramsay's defensive business model means that there is a good chance that expectations will be met.
Furthermore, Ramsay also trades on a price to earnings growth (PEG) ratio of 1.75, which indicates upside potential given the ASX has a PEG ratio of 2.44.
Motley Fool contributor Peter Stephens does not own shares in Ramsay Health Care Limited.
Regan Pearson: Vista Group International Ltd (ASX: VGI)
This cinema software company is carefully, and quietly, dominating in a niche industry. The company controls 38% of the global cinema software industry and is the only non-Chinese cinema software provider authorised in the massive Chinese market.
Cinema screenings only grow by about 0.5% per annum in the USA and Australia, but in China it's a massive 34%. Vista's Numero product provides essential box office reporting and competes against only one other industry incumbent. No dividend currently, but Vista is achieving aggressive growth; prospectus revenue growth is forecast at 23% for financial year 2016.
Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned.
Ryan Newman: G8 Education Ltd (ASX: GEM)
Childcare centre operator G8 Education has come under intense selling pressure recently with its shares having slipped to around $3.40 – down 40% since September and 30% since mid-February.
It's likely that investors are becoming concerned about the company's ability to continue achieving its impressive growth rates, despite the fact there is still plenty of room left for consolidation in the fragmented childcare industry.
Importantly, management has maintained its strict acquisition criteria and continues to deliver on its promises. The stock offers a quarterly fully franked dividend which could potentially amount to 24 cents per share this year. This would give it a yield of 7.1%.
Motley Fool contributor Ryan Newman owns shares in G8 Education Ltd. You can follow Ryan on Twitter @ASXvalueinvest.
