As well as being home to quality blue-chip shares such as Ramsay Health Care Limited (ASX: RHC) and CSL Limited (ASX: CSL), I believe the Australian share market has a good number of small-cap stars for investors to choose from.
Three of my favourites at the moment are listed below. Here’s why I think they could be worth snapping up today:
The Amaysim Australia Ltd (ASX: AYS) share price has rallied 14% in the last month thanks largely to the recent announcement that it plans to acquire online energy retailer Click Energy. Whilst the decision to move into energy retailing was a bit of a surprise, I do think management is capable of making it a success. Asides from energy retailing, I believe the company has a bright future disrupting the mobile telecommunication and home broadband markets.
The Capilano Honey Ltd (ASX: CZZ) share price has fallen by a third in the last 12 months. I think this puts the honey producer’s shares at a great price for buy and hold investors. I’m very optimistic on the long-term growth potential of the company thanks largely to demand for its products from the China market. A key highlight from its recent half-year results was the almost doubling of sales into the massive Chinese consumer market. I expect the company to build on this in the second-half due in part to the launch of an e-commerce website and accompanying social media marketing campaign.
The National Veterinary Care Ltd (ASX: NVL) share price has rocketed 23% so far this year. Whilst I wouldn’t class it as a bargain buy any more, I still think the fast-growing veterinary company would be a great long-term investment. According to the RSPCA, approximately 63% of Australian households own pets. With pet ownership in Australia expected to rise further, I feel it is inevitable that demand for veterinary services will increase. Furthermore, due to the market being highly fragmented, I believe National Veterinary Care has significant growth opportunities available to it through acquisitions.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Capilano Honey 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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