Motley Fool Australia

Top stock picks for January

Credit: Simon Cunningham

We asked our contributors to name some of their favourite stocks to buy this month. Here are a few of their favourite ideas:

Edward Vesely: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Not just for this month, but for the very long-run, I can’t go past recommending Washington H. Soul Pattinson as a listed investment house that invests across a range of industries and businesses.

With the share price down from its previous high of $17.68 reached in July last year, it’s now trading at approximately 1.2 times book value and pays a fully-franked dividend yield of 3.4%. This is decent value in my opinion for any investor wanting to hold a piece of this company for many years.

Motley Fool contributor Edward Vesely owns no shares in Washington H. Soul Pattinson and Co. Ltd.

James Mickleboro: Aconex Ltd (ASX: ACX)

I believe this software-as-a-service company has a bright future which makes it a great buy and hold investment. In the last few years, Aconex has attracted the likes of Ikea, ExxonMobil, and Tesla to its popular platform. It’s not hard to see why when management explains that the platform can accelerate the pace of product delivery and help build five hospitals for the price of four. Its popularity has led revenue to grow at a rapid rate for a number of years. This is expected to continue in FY 2017 with management forecasting revenue growth of over 45%.

Motley Fool contributor James Mickleboro has no financial interest in Aconex Ltd.

Tom Richardson: Cochlear Ltd (ASX: COH)

Shares in this implantable hearing device manufacturer don’t come cheap although it remains one of the best long-term growth stocks on the ASX thanks to its competitive advantages, market-leading products and future proof technologies. Today’s price of $122.90 looks a reasonable entry point and I would look to dollar cost average a total investment over a reasonable timeframe of a year or more.

Motley Fool contributor Tom Richardson owns shares in Cochlear Ltd. 

Sean O’Neill: Vocus Communications Limited (ASX: VOC)

Vocus has its issues, including the recent resignation of board members, poor customer service, and underperformance at the recently acquired NextGen. Yet at today’s prices the market is effectively assuming that Vocus will achieve nothing, which overlooks the long lifespan of the company’s assets as well as its ongoing investment in growth, both here and internationally. With higher demand for data in the future looking likely, and modest debt combined with the defensive utility-like nature of internet demand, I think Vocus shares have been oversold.

Motley Fool contributor Sean O’Neill doesn’t own shares in Vocus Communications Limited.

Alan Edmunds: GR Engineering Services Ltd (ASX: GNG)

2016 appears to have marked the bottom of the commodity cycle, with prices rebounding strongly. While I expect commodity prices to level off in 2017, the recent rise should see renewed activity by resource companies. I am of the opinion that well-run mining service companies are set to benefit as large resource companies again expand operations. I have chosen GR Engineering Services because of its high quality management which was able to navigate the recent downturn significantly better than most of its competitors.

Motley Fool contributor Alan Edmunds owns shares in GR Engineering Services Ltd.

Tristan Harrison: WAM Capital Limited (ASX: WAM)

This listed investment company (LIC) has been one of the best performing LICs over the last 12 months, 3 years, 5 years, and 10 years. I think it could outperform again this year because at the end of November it had 35% of assets in cash – this can protect against share market declines and also provides ammo to buy beaten-down stocks.

It has increased its dividend every year since the GFC and has a grossed up dividend yield of 8.6%, I think it could be the best dividend stock this year.

Motley Fool contributor Tristan Harrison owns shares in WAM Capital Limited.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

The Motley Fool Australia owns shares of ACONEX FPO and Washington H. Soul Pattinson and Company 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 Bruce Jackson.

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