Well it's a new month and it already seems like 2019 is steaming towards its inevitable conclusion. August saw some heavy volatility in the markets as tweets, trade wars and talks of interest rate moves kept investors on their toes. The S&P/ASX 200 (INDEXASX: XJO) did not approach the record highs that July saw, but at the same time threw up some shares at bargain prices.
So here are three ASX shares I've got my eye on this September.
Xero Limited (ASX: XRO)
Xero hit a fresh all-time high in early August of $66.75, but the Xero share price trended lower in the weeks that followed and started September off today at an opening price of $63.50 to lift slightly in morning trade to $63.62 per share.
Although this price is still rather expensive – putting the not-yet-profitable Xero at a market capitalisation of $8.97 billion – this company is still (in my opinion) one of the best growth stocks on the ASX and any pricing pull-backs would represent a buying opportunity in hindsight if this company can stick to its ambitious expansions plans in the US and Canadian markets.
Freedom Foods Group Ltd (ASX: FNP)
Freedom foods is now firmly on my radar after posting some tasty results in its 2019 financial year earnings last week. The company reported sales growth of 35%, earnings growth of 41% and an increase in profits of 41%. To cap it off, the final dividend was also bumped up by a healthy 18% to 3.25 cents per share.
I'm very bullish on health food companies for the long-term as I believe consumers' increased interest in healthier eating is a lasting trend that will only intensify as we become more health conscious.
Freedom shares have surged almost 33% since its earnings report, so today might not be the best time to dip into Freedom Foods, but it's now a stock firmly on my watchlist for September.
Telstra Corporation Ltd (ASX: TLS)
Unlike Xero and Freedom foods, Telstra's shares have copped a beating in August, with Telstra now down ~9% from its 52-week high of $4 at today's opening price of $3.65. Still, despite the short-term woes that the NBN rollout is inflicting on Telstra's bottom line, I'm still optimistic that there is value in Telstra's dominant market share and unrivalled investment in a 5G network.
At today's opening price, Telstra shares are offering a 4.38% starting dividend yield, which is also something worth considering.
Foolish takeaway
I think these three ASX shares are worth keeping an eye on in September. Despite what happens in the global economy in September and beyond, all of these companies have sound business models and (in my opinion) a bright future, making them good stocks to watch this month.
