If you’re looking at investing in the share market in February, but you’re not sure where to put your money, I would suggest you consider the four high quality shares listed below.
I believe these companies are well-positioned to generate strong returns for investors over the next decade. Here’s why:
a2 Milk Company Ltd (ASX: A2M)
The first share to consider buying in February is a2 Milk Company. I think the New Zealand-based fresh milk and infant formula company would be a great option due to its positive long term growth outlook. After growing its earnings at an explosive rate over the last few years, I‘m confident its strong form can continue for some time to come. This is thanks to the increasing demand for its infant formula products in the massive China market and its expanding fresh milk footprint in the United States.
Appen Ltd (ASX: APX)
Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. This essentially means it provides the data required to create or improve artificial intelligence machine learning models. Given the importance of machine learning, the increasing amount of money been spent by businesses on it, and Appen’s leading position in the industry, I believe it is well-placed for strong long term growth over the next decade.
Nanosonics Ltd (ASX: NAN)
Another option for investors to consider is this infection control specialist. It is the company behind the industry-leading trophon EPR disinfection system for ultrasound probes. I expect this product and its growing recurring revenues to underpin solid earnings growth during the 2020s. This should be supported by the upcoming launch of several new products targeting unmet needs.
Xero Limited (ASX: XRO)
A final option to consider buying in February is Xero. I think the leading cloud-based business and accounting software provider is a great option due to the quality of its product, the continued shift to online accounting, and its strong pricing power. And while Xero recently announced that it has surpassed 2 million subscribers, this is still only a small portion of a massive global market opportunity. I expect further strong growth in subscriber numbers over the next decade, driving strong revenue growth.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of A2 Milk, Appen Ltd, and Xero. 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.