On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its positive run and stormed higher again.
This latest gain means the benchmark index has now broken out of its bear market and commenced a new bull market.
I'm optimistic that this will give investor sentiment a big boost and put the market in a position to continue its ascent over the coming months.
In light of this, now could be an opportune time to invest. But which shares should you buy? I think these three ASX shares would be great options:
Aristocrat Leisure Limited (ASX: ALL)
The first share to consider buying is Aristocrat Leisure. The gaming technology company's shares have crashed 40% lower from their February high. This has been caused by concerns over demand for its poker machines following the closure of casinos during the coronavirus pandemic. While these concerns are not unwarranted, I feel the market is overlooking its Digital (mobile gaming) business which looks set to benefit greatly. This side of the business generated revenue of $1.23 billion from its 7.5 million daily active users in FY 2019.
BHP Group Ltd (ASX: BHP)
Another share to look at is BHP. The mining giant's shares have fallen over 25% from their 52-week high. This is despite the iron ore price remaining relatively robust during the pandemic. And while oil prices have of course collapsed, its energy operations are still profitable and only a modest contributor to its overall results. As a result, I believe BHP is well-positioned to generate high levels of free cash flow again in FY 2020 and FY 2021. Given the strength of its balance sheet, I expect the majority of this to be returned to shareholders.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a fast-growing payments company which provides donor management tools to the faith sector. Its shares are down 15% from their 52-week high. This is despite demand for its solutions growing strongly even during the coronavirus pandemic. Pushpay recently reported a 31% jump in operating revenue to US$56 million during the first half of FY 2020. I'm confident there will be more of the same over the coming years thanks to its large addressable market, leadership position, and recent acquisitions.
