If you're looking for additions to your portfolio in 2020, then I think the three ASX shares listed below would be great options.
I believe they are amongst the best on offer on the Australian share market and could generate strong returns for investors over the next decade.
Here's why I rate them as five-star stocks:
Altium Limited (ASX: ALU)
My first five-star stock to consider is Altium. It is the electronic design software company behind the increasingly popular Altium Designer product. This printed circuit board (PCBs) design platform has experienced a material rise in user numbers in recent years thanks to the Internet of Things (IoT) boom. Pleasingly, research firm Statista has forecast the IoT market to grow to be worth US$1.6 trillion in 2025. This will be up massively from an estimated US$212 billion in 2019. I believe this will lead to increasing demand for Altium Designer and support strong earnings growth over the next decade.
ResMed Inc. (ASX: RMD)
Another company I would give five stars to is ResMed. It is one of the world's leading sleep treatment companies. It caught the eye in FY 2019 with another strong result. ResMed delivered an 11% increase in full year revenue to US$2.6 billion and an 18% lift in operating profit to US$716.3 million. Positively, ResMed appears well-placed to continue this strong form for some time to come thanks to the growing number of sleep apnoea sufferers globally.
Xero Limited (ASX: XRO)
A final five star stock to consider buying is Xero. It is a leading provider of online accounting software globally. Xero has been growing very strongly in recent years and has continued this positive form in FY 2020. As with the others, I believe it still has a long runway for growth thanks to its massive global market opportunity. And thanks to the quality and stickiness of its product, I'm confident it will continue to win market share over the next decade and drive strong earnings growth.
