The Motley Fool

Top ASX Stock Picks for April

We asked our Foolish writers to pick some of their favourite ASX shares to buy this April. Here is what they came up with…

Lloyd Prout: Bellamy’s Australia Ltd (ASX: BAL)

Despite rallying almost 34% in the last month, Bellamy’s shares are still down nearly 50% over the last year.

I believe that the Bellamy’s share price still has a long (yet potentially volatile) way to run over the long term. Once the company receives its anticipated SAMR accreditation, Bellamy’s will once again have access to the large and growing Chinese middle class. The current re-branding should also assist in revitalising sales in the country.

BAL shares currently trade at a lofty 44x earnings, however, if the company can again export to China, strong earnings growth should follow.

Motley Fool contributor Lloyd Prout has no position in any of the stocks mentioned and expresses his own opinion.

Tristan Harrison: Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I believe that the Asian share market (excluding Japan) is a once-in-generation opportunity for investors willing to take on a bit of risk. I can’t claim to be an expert on any particular Asian business, but China and India, in particular, have huge middle-class populations which are rapidly increasing their expenditure on a range of different services which will boost the economies further and gives opportunities to industries like banking, insurance, travel, and retail.

The ETF has a P/E of only 12 and a PEG of just over 1. Charlie Munger himself recently said the best opportunities are in China.

Motley Fool contributor Tristan Harrison owns shares of Vanguard FTSE Asia Ex Japan Shares Index ETF.

Elton Wang: Paradigm Biopharmaceuticals Ltd (ASX: PAR)

With the upcoming announcement of its phase 2a ross river virus trials in conjunction with its phase 2b osteoarthritis secondary endpoint results, Paradigm is a microcap with strong share price catalysts.

The potential blockbuster drug owned by Paradigm has attracted the attention of many investors. In the United States, billions of dollars are spent each year in the treatment of Osteoarthritis, mostly in the form of harmful opioids. Paradigm, a sub $300 million company may have potentially discovered the billion-dollar answer. If the upcoming trial results are positive, expect to see Paradigm’s share price skyrocket.

Motley Fool contributor Elton Wang owns shares in Paradigm Biopharmaceuticals.

Lachlan Hall: Air New Zealand Limited (ASX: AIZ)

I think Air New Zealand offers great value to investors from a stability, growth and income perspective.

The airline’s share price is down 18% so far this year and could be a bargain at just $2.38 per share. With a 10.647 cents per share (cps) dividend, Air New Zealand is currently yielding a handy 9% per annum for its investors.

Given the likely changes to the franking credit system, if a Labor government is elected in May, I think an unfranked 9% p.a. is one of the best deals on the market for yield-seeking investors at the moment.

Motley Fool contributor Lachlan Hall does not own shares in Air New Zealand Limited.

James Mickleboro: NEXTDC Ltd (ASX: NXT)

NEXTDC is a leading data centre operator with a total of eight centres across five capital cities in Australia. It provides enterprise-class colocation services to local and international organisations and has been experiencing strong demand in recent years thanks to the cloud computing boom.

In the first half of FY 2019, the company saw its contracted utilisation increase 28% to 50.4MW and interconnections rise 34% to 9,982. This ultimately led to a 26% increase in underlying EBITDA to $42.2 million. The NEXTDC share price is trading at a premium to the market average, but I believe its long-term growth potential justifies this.

Motley Fool contributor James Mickleboro owns NEXTDC shares.

Tim Katavic: Bapcor Ltd (ASX: BAP)

The share price of automotive parts distributor Bapcor has fallen around 14% since the release of the company’s half-year earnings report in mid-February. The sell-off can be attributed to the company lowering its full-year guidance due to softer than expected trading conditions. Bapcor now projects FY19 net profit after tax to rise 9%, whereas previous guidance had been for growth of between 9% and 14%.

At current prices, investors would be paying around 16 times FY19 earnings which is a reasonable valuation for a high-quality business and its expected growth in future earnings.

Motley Fool contributor Tim Katavic has no financial interest in Bapcor Ltd.

Rhys Brock: Pilbara Minerals Limited (ASX: PLS)

I realise that at this point lithium miners seem so 2016, but there are a few reasons to finally start getting excited about Pilbara Minerals again.

On Thursday, the miner declared it had reached commercial production status at its wholly-owned Pilgangoora lithium project in Western Australia’s Pilbara region.

On the same day, the company flagged the possibility of selling part of its stake in the Pilgangoora project, in a sale that the West Australian reported could net Pilbara Minerals up to $1 billion. This would be a hefty cash injection right at the time the company is planning on expanding production.

Motley Fool contributor Rhys Brock owns shares in Pilbara Minerals Limited.

Nikhil Gangaram: Aristocrat Leisure Limited (ASX: ALL)

Earnings in the gaming technology company have grown strongly and ahead of expectations for the past few years and I think they will continue to do so. In my opinion, concern over slowing revenue growth is overdone and new acquisitions in social gambling will be a key driver of future growth.

The Aristocrat Leisure share price could be a bolter in April as investors look to add undervalued, quality growth stocks to their portfolio after a volatile 2018. Charlie Aitken has also given Aristocrat the tick of approval for his high conviction fund.

Motley Fool contributor Nikhil Gangaram owns shares in Aristocrat Leisure Limited.

Sebastian Bowen: Wesfarmers Ltd (ASX: WES)

I’ve always liked Wesfarmers as a business. In addition to the household names such as Bunnings, Officeworks and Target under its umbrella, Wesfarmers also own interests in coal mining, chemical and fertiliser manufacturing and industrial safety products. This makes Wesfarmers one of the most diverse businesses on the ASX and, in my opinion, a great buy in April.

With the recent spin-off of Coles Group Limited (ASX: COL), Wesfarmers has shown its willingness to jettison the mediocre in the search for high returns. This was evident in the recent bid for Lynas Corporation Ltd (ASX: LYC). With an internal return on equity of over 17%, I am confident of Wesfarmers’ ability to compound shareholders’ wealth over the long-term.

Motley Fool contributor Sebastian Bowen does not own shares in any stocks mentioned.

Brendon Lau: BlueScope Steel Limited (ASX: BSL)

I think this underperformer has found a bottom and should start to gain traction with the market. BlueScope had been under pressure from worries about shrinking margins and a slowing US economy but these fears are overblown in my view.

What’s more, the bad news is largely reflected in the BlueScope share price, and that means if confidence starts to return, the stock could easily outperform the market.

Motley Fool contributor Brendon Lau owns shares in BlueScope Steel.

Tom Richardson: CSL Limited (ASX: CSL)

CSL is a business I’ve recommended to investors repeatedly over the past couple of years as I think it’s blue chip dividend and growth holding for local investors. It appears to have a strong competitive position, pricing power and reinvests plenty of cash flow into developing new commercial products, while paying a handy dividend.

CSL also offers global exposure and the tailwinds of ever-increasing healthcare spends. Debt is a risk to watch, while the valuation is admittedly high, I’d still buy at $195.50 today.

Motley Fool contributor Tom Richardson owns shares in CSL Limited. 

For another top stock to buy in April, check out this ASX company that is poised to benefit from a $22 billion boom industry in 2019.

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The Motley Fool Australia owns shares of and has recommended Bapcor, COLESGROUP DEF SET, and Wesfarmers Limited. The Motley Fool Australia has recommended Bellamy's Australia. 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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