We asked our contributors for their top picks to buy for the month of February and here's what they came up with:
Tom Richardson: TPG Telecom Ltd (ASX: TPM)
Selling for $6.36 this stock looks cheap given its corporate dark fibre business is likely to grow strongly in the years ahead, while its fibre-to-the-basement home internet business also offers a decent growth opportunity. The recent price falls offer a superb opportunity to grab a slice of a well run founder-led tech company that I also expect to move deeper into the lucrative mobile space over time. Trading on 14x estimated forward earnings with a trailing 2.4% yield as it continues to invest heavily in the infrastructure of the future the stock looks a buy.
Motley Fool contributor Tom Richardson owns shares in TPG Telecom.
Tristan Harrison: Healthscope Ltd (ASX: HSO)
Healthscope shares are still down by 24% since it announced patient numbers hadn't grown in Q1 of FY17 compared to FY16. I think there's a good chance patient numbers will have grown in Q2 which could result in a fairly big price recovery when it reports in a few weeks.
Even if patient numbers don't grow in Q2, they will in the long term thanks to Australia's ageing population and an increasing reliance on private hospitals as the public system becomes too crowded and expensive for the government.
Motley Fool contributor Tristan Harrison owns shares in Healthscope Ltd.
James Mickleboro: BWX Ltd (ASX: BWX)
BWX is the personal care company behind the popular Sukin brand. With its shares down 20% in the last six months, I believe now could be an opportune time to invest in this fast-growing company. Especially following the launch of the Sukin range into the UK market through the Boots pharmacy chain at the end of last year. If the company can replicate the success it has enjoyed domestically in the UK, then I expect BWX could build on last year's fantastic result with similar profit growth in FY 2017.
Motley Fool contributor James Mickleboro has no financial interest in BWX Ltd.
Christopher Georges: Compumedics Limited (ASX: CMP)
Compumedics is a micro-cap healthcare company that develops and distributes medical devices that are used in the monitoring of sleep and neurological disorders.
The company has established market-leading positions in a number of attractive geographical markets including Australia, Japan and China. It is now also focused on expanding into the U.S and German markets. Importantly, Compumedics is translating strong sales growth into strong profit growth and management is expecting EBITDA to increase by as much as 60% in FY17.
The shares have pulled back recently and I think this presents an attractive buying opportunity for risk-tolerant investors.
Motley Fool contributor Christopher Georges has no financial interest in Compumedics.
Edward Vesely: Technology One Limited (ASX: TNE)
The economic performance of Technology One Limited has been remarkably consistent for a number of years, so consistent in fact that its share price has always appeared expensive. Not so last week which saw the share price unjustifiably affected in response to a Brisbane City Council (BCC) press-release that implied blame on the company's behalf for delays and cost blowouts during the IT systems replacement program contract.
A price of close to $5 is an opportunity to buy some shares in the business, especially given management's view that the BCC contract causing the share price slide is immaterial to the company's bottom line.
Motley Fool contributor Edward Vesely owns no shares in Technology One Limited
Rachit Dudhwala: Boral Limited (ASX:BLD)
The combination of a $2.6 billion acquisition and discounted rights offer saw shares in Boral Limited plummet 19% in a week. Three months on and Australia's premier constuction materials supplier has all but regained its falls since the announcement of its Headwaters Incorporated acquisition last November.
I believe this trend can continue as the prospect of an increased U.S. infrastructure spend and a continuing boom in Australia's housing market should buoy earnings. This makes Boral one stock to watch this reporting season and earns it my top pick for February.
Motley Fool contributor Rachit Dudhwala does not own shares in Boral Limited.
Sean O'Neill: Flight Centre Travel Group Ltd (ASX: FLT)
Trading at just under $30, Flight Centre appears good value, despite facing a number of headwinds. The founder-led business has a number of positive attributes including global diversification, a strong balance sheet, and recent expansion into a number of niches that could generate growth. Although competitor Corporate Travel Management is popular at the moment, approximately 40% of Flight Centre's earnings come from the corporate sector and this is another viable growth opportunity for the company. In terms of capital gains, Flight Centre is unlikely to astound, but I believe it is undervalued and should deliver attractive dividends and higher profits over time.
Motley Fool contributor Sean O'Neill owns shares in Flight Centre.
