With the end of the year in sight, I feel now could be a good time to start thinking about the shares you could add to your portfolio for 2020.
Ten shares which I think are well-placed to be market beaters next year are listed below. Here’s why I would buy them for 2020:
Afterpay Touch Group Ltd (ASX: APT)
I think this rapidly growing payments company has the potential to be a market-beater again in 2020 thanks to its impressive performance in both the UK and US markets. In addition to this, the company’s arrangement with US payments giant Visa could be another key driver of growth over the medium term.
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Given the explosive growth of these markets, I believe it is well-positioned to deliver another strong profit result in FY 2020.
BHP Group Ltd (ASX: BHP)
My top pick in the resources sector continues to be BHP due to its diversified, world class operations and favourable commodity prices. Overall, I believe it is well-placed to deliver a bumper profit result and return significant funds to shareholders again.
CSL Limited (ASX: CSL)
Due to the quality and strong long term growth potential of both its CSL Behring and Seqirus businesses, I think this biotherapeutics giant could be a market-beater again in 2020.
Nanosonics Ltd (ASX: NAN)
Nanosonics is a leading infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. Due to the massive global market opportunity of this product, increasing demand, and the upcoming launch of new products, I believe Nanosonics could be a strong performer in FY 2020 and beyond.
Nearmap Ltd (ASX: NEA)
This aerial imagery technology and location data company has grown its sales at an impressive rate over the last few years thanks to increasing demand in both Australia and North America. Due to the quality of its offering, new product releases, and its massive market opportunity in the United States, I remain confident it will continue its strong form in FY 2020.
REA Group Limited (ASX: REA)
With a rebound in the housing market looking imminent, I expect REA Group could soon experience a sharp rise in listings volumes. Combined with price increases and its new revenue streams, I feel REA Group is positioned perfectly to deliver strong earnings growth over the next decade.
ResMed Inc. (ASX: RMD)
Due to the growing demand for its industry-leading products in the fast-growing sleep treatment market, I expect yet another strong result from ResMed in FY 2020. And with a large majority of sleep apnoea sufferers yet to be diagnosed, the company could continue this strong form for many years to come.
Webjet Limited (ASX: WEB)
Although there are concerns over its partnership with Thomas Cook and the threat of Google on the travel bookings industry, I believe this has more than been factored into Webjet’s share price now. As a result, I suspect its shares could outperform the market over the next 12 to 24 months.
Xero Limited (ASX: XRO)
A final share that I think could outperform in 2020 is Xero. As the business and accounting software provider is quickly becoming the platform of choice for small and medium sized businesses across the globe, I believe it is well-positioned for strong long term growth.
Where to invest $1,000 right now
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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 AFTERPAY T FPO, CSL Ltd., Nanosonics Limited, Nearmap Ltd., and Xero. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited, Nearmap Ltd., REA Group Limited, ResMed Inc., and 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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