In a matter of hours a new year will be upon us. I think this makes it a great time to consider a few new shares to buy when the market reopens on Wednesday.
To help you on your way I’ve picked out ten shares that I think would be great options in 2019. They are as follows:
Altium Limited (ASX: ALU)
Altium is an award-winning printed circuit board (PCB) design software provider. It has carved out a leading position in this growing market, putting it in a strong position to achieve its target of at least US$200 million of revenue by FY 2020. This compares to revenue of US$140 million in FY 2018. In addition to this, management is focused on expanding its margins as it scales.
Appen Ltd (ASX: APX)
Appen is a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence and one of my favourite tech shares. I expect FY 2019 to be another year of stellar growth for Appen thanks to the increasing demand for its services from some of the world’s biggest tech companies.
Bellamy’s Australia Ltd (ASX: BAL)
If this infant formula company receives its SAMR accreditation early next year then I believe it could be a strong performer in 2019. Especially with its shares priced at around 18x trailing earnings now. I think this is cheap given its medium term guidance for sales of $500 million by FY 2021. This compares to sales of $329 million in FY 2018.
Bravura Solutions Ltd (ASX: BVS)
Bravura is a leading provider of software products and services to clients operating in the wealth management and funds administration industries. Due to the strong demand it is experiencing, this year the company expects to deliver mid-teen earnings per share growth. Based on this and its solid long term prospects, I think its shares are good value at 30x trailing earnings.
Coles Group Ltd (ASX: COL)
This newly listed supermarket giant could be a good option for investors due to its attractive valuation and generous dividend. Based on its current share price, I estimate that its shares currently provide a forward fully franked 5.4% yield.
CSL Limited (ASX: CSL)
This year this global biotech company expects to deliver a net profit after tax in the range of US$1,880 million to US$1,950 million. This will be profit growth of almost 13% at the high end of its guidance range. Due to its strong core business and growing pipeline of products, I believe CSL is capable of similarly strong growth over the medium term.
REA Group Limited (ASX: REA)
Although the housing market is cooling, that hasn’t stopped REA Group from achieving strong profit growth. The realestate.com.au operator posted a 17% increase in first quarter revenue to $221.9 million and a 23% lift in quarterly EBITDA to $130.9 million. I expect more of the same in the coming quarters.
ResMed Inc. (ASX: RMD)
ResMed is a sleep treatment focused medical device company and in my opinion one of the highest quality companies on the ASX. It has set itself up well to deliver another strong result in FY 2019. In the first quarter it posted a 23% increase in net income thanks to strong demand for its products and services.
Webjet Limited (ASX: WEB)
This year this online travel agent is expecting to continue its fine form and grow its full year EBITDA by 26%. Pleasingly, I believe the shift to online booking and the growing popularity of its numerous brands has positioned it for further strong growth in the coming years, making its shares good value at around 18x estimated forward earnings.
Westpac Banking Corp (ASX: WBC)
I expect 2019 to be a better year for the banks and I’m optimistic that the dark cloud of the Royal Commission will lift once the inquiry’s final report is released in February. Based on its valuation and yield, I think Westpac is the best of the big four banks to own right now.
Where to invest $1,000 right now
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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
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Altium, Appen Ltd, Bravura Solutions Ltd, and COLESGROUP DEF SET. The Motley Fool Australia has recommended REA Group Limited, ResMed Inc., and Webjet Ltd. 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 Scott Phillips.
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