With interest rates likely to be heading lower in the near term, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
After all, the potential returns on offer on the ASX are many multiples what you’ll receive from a savings account right now.
With that in mind, here are three shares that I would consider investing $10,000 into in September:
A2 Milk Company Ltd (ASX: A2M)
This infant formula and fresh milk company has been growing at a very impressive rate over the last few years. Pleasingly, this continued to be the case in FY 2019 when it delivered a 41.4% increase in revenue to NZ$1,304.5 million and a 46.1% increase in EBITDA to NZ$413.6 million thanks to increasing demand for its infant formula in China, fresh milk market share gains in Australia and New Zealand, and the expansion of its fresh milk footprint in the United States. However, whilst this was very strong growth, the market was expecting even more and its shares have pulled back materially. I think this is a buying opportunity for investors in September.
Altium Ltd (ASX: ALU)
Altium is a design software company which continues to impress with its operational and financial performance. Earlier this month the company released its full year results and revealed a 22.6% increase in full year revenue to US$171.8 million and a 41.1% increase in net profit after tax to US$52.9 million. Pleasingly, management remains confident that this strong form can continue for at least the next few years and reiterated its aim of growing its revenue to US$500 million by FY 2025. Due to the increasing demand for its software thanks to the Internet of Things boom, I wouldn’t bet against the company achieving its goal. This could make it a great long-term investment option.
Webjet Limited (ASX: WEB)
A final option for that $10,000 is Webjet. Earlier this month this online travel agent reported a record performance across all its key metrics. Total Transaction Value (TTV) came in 27% higher at $3.8 billion, revenue grew 26% to $366.4 million, and net profit after tax was up 46% to $81.3 million before acquisition amortisation. Despite this, investors sold off its shares, leaving them trading ~30% lower than their 52-week high. Due to its positive outlook thanks to its WebBeds business and the launch of its Rezchain and Rezpayments technologies, I think Webjet’s shares are trading at an extremely attractive level. Especially given how its troubled UK partner Thomas Cook recently announced that it is close to being bailed out by Chinese investors.
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 February 15th 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended 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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