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10 high quality ASX shares to buy in 2020

With a new month upon us, I’m sure many readers will be considering a few changes to their portfolio in the near future.

But which shares should you buy? To help narrow things down for you, I have picked out 10 shares that I would buy in February:

a2 Milk Company Ltd (ASX: A2M)

The first share to consider buying is this New Zealand-based fresh milk and infant formula company. It has been growing its earnings at an explosive rate over the last few years. I‘m confident this strong form can continue for some time to come thanks to the increasing demand for its infant formula products in the massive China market.

Afterpay Ltd (ASX: APT)

Another option to consider is this payments company. Due to the success of its global expansion and the growing popularity of buy now pay later with consumers and retailers, I expect Afterpay to continue its meteoric sales growth over the coming years.

Altium Limited (ASX: ALU)

Altium is a printed circuit board (PCB) design software provider. I think it could be a great long term option due to the Internet of Things boom which is driving increasingly strong demand for its Altium Designer software. It also has other businesses, such as Octopart, that are growing quickly and supporting its growth.

Appen Ltd (ASX: APX)

Appen is one of my favourite options on the ASX. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the strong growth of these markets, I expect demand for its services to continue to grow in the coming years and support strong earnings growth.

Audinate Group Limited (ASX: AD8)

At the small end of the market is Audinate. It is a digital audio-visual networking technologies provider which has been delivering impressive sales growth thanks to its Dante product. The good news is that due to the quality of Dante and its massive market opportunity, I expect its strong growth to continue in FY 2020 and beyond.

CSL Limited (ASX: CSL)

One of my favourite buy and hold options is this biotherapeutics company. Due to the quality of its CSL Behring and Seqirus businesses, I continue to believe it can be a market beater for some time to come. Especially considering the increasing demand for immunoglobulins, its growing plasma collection network, and its lucrative product development pipeline.

Nanosonics Ltd (ASX: NAN)

This infection control specialist could be a top option in the 2020s. It is the company behind the industry-leading trophon EPR disinfection system for ultrasound probes. I expect this product and the impending launch of several new products to underpin solid earnings growth over the coming years.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company focused on the sleep treatment market. Thanks to its industry-leading products and growing addressable market due to the proliferation of sleep apnoea, I expect it to deliver strong earnings growth in the 2020s.

Webjet Limited (ASX: WEB)

Due to its strong long-term growth potential thanks to its popular brands, the shift to online booking, and acquisition opportunities, I think Webjet could provide strong returns for investors over the next decade. Especially if management delivers on its target of increasing its margins significantly over the coming years.

Xero Limited (ASX: XRO)

A final option to consider is Xero. It is a leading cloud-based business and accounting software provider. I think it is a great option due to the quality of its product and the continued shift to online accounting. It recently announced that it has surpassed 2 million subscribers. This is still only a small portion of a massive global market opportunity. 

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

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, AUDINATEGL FPO, and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of A2 Milk, Altium, Appen Ltd, and Xero. The Motley Fool Australia has recommended AUDINATEGL FPO, 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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