The ASX is down again today as investors fear about more coronavirus pain in the coming weeks and months.
Some shares have seen their share prices completely smashed. Just look at what's happened to shares like Afterpay Touch Group Ltd (ASX: APT) and Webjet Limited (ASX: WEB). Brave investors may see a bargain in those shares.
Here are two ASX shares that could be top buys today:
Altium Limited (ASX: ALU)
I believe that Altium is one of the highest-quality shares on the ASX. Its share price has dropped another 8% this morning and it's now down 30% since 21 February 2020, it's down 43% since reporting on 17 February 2020.
Before the coronavirus selloff, Altium ticked all the boxes. It has attractive accounting policies for its software (many tech shares don't, which perhaps wrongly boosts profit in the shorter-term), it has great management, it has great product offerings that are servicing many of the world's best businesses and its market share is growing.
Is it danger of suffering terrible financial consequences during this? I don't think so. It has a cloud offering called Altium 365, which means its clients could keep working from home. It has great cashflow, so it would have to suffer a lot of issues before its cashflow even went neutral. Finally, it has no debt and a large cash balance which means it should be able to easily get through this. The long-term goals are still the focus.
It was rapidly growing its dividend before this current period too. It currently offers a trailing dividend yield of 1.6%.
Pro Medicus Limited (ASX: PME)
Another of the best shares on the ASX in my opinion is Pro Medicus. Its share price is down 10.7% today and it's down 43% since 12 February 2020.
The medical technology company is still not cheap, but it's important to remember that interest rates are now extremely low, so the best businesses will still trade at a premium.
It's another company with great management, no debt on the balance sheet, a growing cash balance and a very high earnings before interest and tax (EBIT) margin.
Australia, the US and Europe are all being affected by the coronavirus outbreak but they will return to normality later this year at some stage. FY20 and FY21 will be disrupted, but I think Pro Medicus' long-term future still looks very compelling.
Management have actually been buying shares recently, which is a good sign.
Its dividend was rapidly growing and its grossed-up yield is now around 1%.
Foolish takeaway
Both of these shares are very high-quality, I think I'd prefer Altium today because of its cheaper price and the fact that it can offer people the option of working on Altium 365 (and continue getting paid for it).
