If you have $2,500 sitting in a savings account, I think now could be a good time to consider investing it into the share market.
This is because the share market has pulled back considerably over the last few weeks and has left a large number of shares trading at very attractive prices.
But which shares should you buy? Here are three shares that I would invest $2,500 into:
A2 Milk Company Ltd (ASX: A2M)
Thanks largely to the insatiable demand for its products in the Asian market, a2 Milk Company has been growing its sales and earnings at a very strong rate over the last few years. Pleasingly, this has continued in FY 2020. In the first half, a2 Milk Company delivered revenue of NZ$806.7 million and EBITDA of NZ$263.2 million. This was an increase of 31.6% and 20.5%, respectively, over the corresponding period. And with its market share still on the small side in China, I believe it has the potential to continue this strong form for many years to come.
Altium Limited (ASX: ALU)
Another good option for investor to consider is Altium. It is a printed circuit board (PCB) design software provider which I believe could be a great long term option. This is due to the Internet of Things (IoT) boom which is driving increasingly strong demand for its high quality Altium Designer software. Management appears confident that this is the case. It is targeting revenue of US$500 million and market dominance by FY 2025. This compares to expectations of revenue of ~US$205 million in FY 2020.
ResMed Inc. (ASX: RMD)
A final option to consider for that $2,500 is ResMed. I think this sleep treatment-focused medical device company is one of the highest quality companies on the Australian share market. It has been growing at a very strong rate over the last few years thanks to increasing demand for sleep treatment products. The good news is that I believe this positive form can continue for some time to come. This is due to the quality of its products and the proliferation of sleep apnoea globally.
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
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and Altium. The Motley Fool Australia has recommended ResMed Inc. 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.
- Why I would put excess funds into ASX dividend shares instead of a savings account – July 11, 2020 3:29pm
- 3 exciting ASX growth shares to buy and hold until 2030 – July 11, 2020 3:19pm
- Where I would invest $5,000 into ASX shares in July – July 11, 2020 12:10pm