3 ASX shares to buy for a Santa rally

These 3 ASX shares, including Webjet Limited (ASX:WEB) could be in line for a Santa rally.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We're not far away from Christmas now and some ASX shares might be set for a Santa rally before the end of the year.

Some retail shares like JB Hi-Fi Limited (ASX: JBH) have already had a strong performance this year, so I'm not sure we're going to see any more gains there.

So here are three shares that could see a rally:

Webjet Limited (ASX: WEB

The travel operator's share price has fallen a lot over the past six months, particularly with the troubles that Thomas Cook was going through, leading to its collapse.

However, the rest of the Webjet's WebBeds business is going very well. Excluding Thomas Cook the total transaction value (TTV) was up 50% in the first 10 weeks of FY20.

Webjet's share price is already making a recovery and I think it could keep going higher as investors realise the longer-term value of Webjet's growth potential at the current price.

Eureka Group Holdings Ltd (ASX: EGH

Eureka is the operator of affordable accommodation for seniors and disability pensioners. There are a number of long-term tailwinds for Eureka including a rising ageing population and an increasing percentage of people who don't own their home.

The company is now generating a solid operating profit, it started paying a dividend and is valued 13% lower than its net tangible assets (NTA) at 30 June 2019 with property prices rising.

Bingo Industries Ltd (ASX: BIN) 

The waste management business has had a rollercoaster year after an earnings downgrade but the share price has been rising since then.

However, there are a few factors that are increasing sentiment and longer-term profit. The acquisition of Dial A Dump Industries should prove a clever buy with good synergies, whilst the recovering housing market is leading to higher approval activity which should be good for profit in the longer-term and the share price in the shorter-term.

Foolish takeaway

I think that all three shares have promising prospects of beating the market in the short-to-medium term. If I had to pick one it would be Webjet, its business model is very attractive to me for fast profit growth. But Eureka could continue to rise to next reporting season.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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.

More on Growth Shares

happy investor, share price rise, increase, up
Growth Shares

These top ASX 200 growth shares could rise 20% to 45%

These growth stocks have been named as buys by brokers and tipped to rise strongly.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Growth Shares

5 ASX growth shares that could rise 10% to 40%

Brokers have put buy ratings on these stocks recently. Let's see what they are expecting from them.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

5 top ASX growth shares that could rise ~10% to 25%

Analysts are tipping big returns from these growth stocks.

Read more »

A woman shows her phone screen and points up.
Growth Shares

I'd buy these 2 top ASX growth shares in a heartbeat

Here are two stocks I’m bullish about.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Growth Shares

3 fantastic ASX growth shares to buy in July

Analysts are feeling very bullish about these stocks. But why?

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Growth Shares

Here's why brokers say these ASX growth shares are top buys

Big returns could be on the cards for buyers of these shares.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Growth Shares

2 exciting ASX growth shares to buy in July

Analysts have put buy ratings on these stocks. But why are they bullish?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Growth Shares

2 ASX 200 compounding machines to buy and hold forever

Analysts think these shares could be great long term options for investors.

Read more »