5 ASX shares that I think are your best bet on Melbourne Cup Day

The Melbourne Cup is a day for punters to aim for the sky and hope for big returns and whilst some punters might disagree, I think you have a better shot investing in the ASX.

Here are five shares that I think are your best bet on Melbourne Cup Day.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is using artificial intelligence (AI) to improve the quality of breast cancer screening and its software as a service (SAAS) model provides plenty of annual recurring revenue. Despite some huge gains (almost 200% since 2016), it has a market cap of only $240 million. Volpara’s opportunity is huge and so whilst the road ahead might be filled with lots of volatility, I like its long-term prospects.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 33% since its peak when the recent market turmoil started but the business itself is doing well. The high growth fintech company just recently passed $8.5 billion in funds under administration and tailwinds within the superannuation and pension fund industry could propel it further forward.

Afterpay Touch Group Ltd (ASX: APT)

Afterpay divides opinions but it is taking on big markets and it has a very popular brand. Credit card usage is high enough in Australia, but it’s significantly higher in the UK and the US, markets that Afterpay is targeting. If it can get just a small slice of those markets, it could provide huge returns. I don’t expect it to be a smooth ride but if it pays off, patient shareholders will be rewarded.

Xero Limited (ASX: XRO)

It’s hard to appreciate just how revolutionary Xero’s product is if you are not an accountant or if you don’t work in a small business. This company makes life easy for its users and it has a very sticky product that is difficult to replace which makes for an attractive investment.

CSL Limited (ASX: CSL)

Despite its recent share price drop, CSL’s profit margins are expanding, it’s forecasting a 10% – 14% underlying profit growth and it remains one of the ASX’s premier biotechnology companies along with Mayne Pharma Group Ltd (ASX: MYX). Perhaps because of its size, it won’t have the highest returns on the ASX, but it has a high-quality business and adding those to a portfolio is rarely a mistake in the long run.

If you are looking for more high growth innovative companies, read this report.