The Motley Fool

Top ASX stock picks for June

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

Tom Richardson: Altium Limited (ASX: ALU)

Altium appears to have some good business momentum on its side as demand for its software used by enterprises to design printed circuit boards continues to rise.

For the half year ending December 31, 2018, Altium grew revenue and profit 24% and 58% respectively thanks mainly to rising margins. It has $58 million cash on hand and might be able to deliver some consistent profit and dividend growth for many years yet.

Motley Fool editor Tom Richardson owns shares in Altium Limited.

Sebastian Bowen: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The ‘Soul Patts’ share price has fallen over 25% since making new highs in early March – putting it on the edge of the buy zone for me.

Soul Patts is mostly an investment company, which means you are getting exposure to lots of businesses in one share, which is a great and easy way of adding some diversification to your portfolio. SOL is currently yielding around 2.53% before franking  – having raised its dividend every year since 2000, it is also a solid income stock and is one I would feel comfortable owning for many years.

Motley Fool contributor Sebastian Bowen does not own shares in Washington H. Soul Pattinson and Co. Ltd and expresses his own opinion.

Tristan Harrison: Costa Group Holdings Ltd (ASX: CGC)

Costa is Australia’s largest horticultural business, it grows tomatoes, mushrooms, berries, citrus fruit, and avocados.

The fresh food company issued a profit downgrade a few days ago, but I think this could be an opportunistic time to buy some shares at a beaten-down price. There aren’t too many ASX businesses with growing overseas earnings.

The disappointing update seemed to cover issues that were mostly short-term, so now could be a good time to buy shares of this seemingly-volatile business which is growing its food exports. It’s still predicting profit growth this year, although don’t bet the house on the guidance.

Motley Fool contributor Tristan Harrison owns shares of Costa Group Holdings Ltd.

James Mickleboro: Straker Translations (ASX: STG)

I think this small-cap tech share could be a great option in June.

Straker Translations is a translation services platform provider which uses artificial intelligence and human intelligence to provide efficient language translation services at scale. Demand for its offering has been growing very strongly over the last 12 months, leading to the company reporting a 44% increase in full-year revenue to NZ$24.6 million last month. Pleasingly, the outlook for FY 2020 is just as positive.

Motley Fool contributor James Mickleboro does not own shares of Straker Translations.

Nikhil Gangaram: Bingo Industries Ltd (ASX: BIN)

My pick for June is waste management and recycling company Bingo Industries Limited.

After plunging to a 52-week low of $1.17 following a profit downgrade earlier this year, the Bingo share price has started to recover. I think that Australia’s growing population and increasing waste generation provides Bingo with great potential for long -term, organic growth. In addition, the successful acquisition of Dial a Dump Industries will provide Bingo with diversified earnings and the potential to become the largest player in building and demolition waste.

Motley Fool contributor Nikhil Gangaram does not own shares in Bingo Industries Limited.    

Brendon Lau: Lynas Corporation Ltd (ASX: LYC)

The rare earths miner looks like a stock that can do no wrong, not in the short-term at least. Its assets have become more precious since China threatened to cut off supply of the minerals to the US due to their trade dispute, while the uncertainty over its Malaysian plant has been lifted.

Motley Fool contributor Brendon Lau does not own shares in Lynas Corporation Ltd.

Lloyd Prout: Xero Limited (ASX: XRO)

The Xero share price is an 11-bagger since listing on the ASX in 2012.

I believe that the share price still has a long (yet potentially volatile) way to run over the long term. The company is focussing on growing cloud accounting adoption globally, with the US and UK offering much larger market opportunities than in Australia and New Zealand.

The company also has favourable unit economics. Pleasingly, in this months results release, revenue increased 34% year on year. Xero’s total subscriber lifetime value (LTV) also increased by 36% year on year, from subscriber growth and gross margin expansion.

Motley Fool contributor Lloyd Prout does not own shares in Xero Limited and expresses his own opinion.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium and Xero. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Straker Translations. 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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