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3 top ASX shares on Santa’s list for Christmas in July

As we enter the new financial year, it’s time to turn out attention to the next big event of the year – Christmas in July.

So, should these 3 top ASX stocks be at the top of your shopping list this (mini) holiday season?

Afterpay Touch Group Ltd (ASX: APT)

Afterpay has been an S&P/ASX 200 (INDEXASX: XJO) index favourite basically since its June 2017 IPO, with the Afterpay share price rocketing from $2.97 to its current price of $23.11 (as at market open today).

The stock plummeted nearly 10% on Friday as news emerged that payments giant Visa would be trying its hand in the ‘buy-now, pay-later’ market that Afterpay has dominated for the last couple of years amid a growth explosion for the Aussie startup.

Afterpay’s share price nearly hit $29 per share in early May, but has since dropped due to the news out of Visa, which followed the recent news of an external audit requirement from the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the sale of $103 million of shares by the company’s co-founders.

With Christmas in July likely to boost retail spending across the country, Afterpay could be a good look at buying retail exposure on the cheap, should things pan out for the company in the second half of the year.

Breville Group Ltd (ASX: BRG)

The Breville share price has been one of the top performers on the ASX 200 so far this year, rocketing 56.9% higher since the start of January.

Most of this capital appreciation was thanks to outperformance in its February 2019 earnings when a global juice craze increased sales of its home appliances and boosted earnings higher.

With many customers indulging in Christmas in July and hibernating over winter, Breville could see higher sales as we head into the spring and summer months and there is an increased focus on healthy eating and fresh foods.

Woolworths Group Ltd (ASX: WOW)

One of Australia’s favourite retailers, I would expect to see an uptick in sales for Woollies throughout July in line with the (mini) holiday season.

The Woolworths share price is up 14% higher but has struggled to keep pace with competitors Coles Group Ltd (ASX: COL) since its demerger from Wesfarmers Ltd (ASX: WES).

I think Woolworths could bounce back in the second half of the year and would be a good retail exposure for a diversified portfolio in July.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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