Whilst this is disappointing, one positive is that it has brought some top shares down to attractive levels.
Here are ten top ASX shares to consider buying for potentially strong long term returns:
a2 Milk Company Ltd (ASX: A2M)
The first share to consider buying is a2 Milk Company. This leading fresh milk and infant formula company has been a consistently strong performer over the last few years thanks to the expansion of its fresh milk footprint and the insatiable demand for its infant formula in China. The good news is that I believe this strong form can continue for many years to come, especially given its relatively modest market share in the massive China market.
Appen Ltd (ASX: APX)
Appen is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Using a million-strong crowd sourced team of experts, the company prepares the data that goes into the AI models of some of the biggest tech companies in the world. Given how these markets are expected to continue their strong growth for many years to come, I believe Appen is well-placed to deliver above-average growth over the next decade.
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider. While the coronavirus pandemic is weighing on its short term performance, I believe its long term outlook is as positive as ever. Especially considering the quality of its Dante product and its massive market opportunity.
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of enterprise mobility software. This software allows sales and service organisations to improve mobile worker productivity through smart devices. It has a number of blue chip clients such as Australia and New Zealand Banking Group (ASX: ANZ), sports giant Nike, and global beauty retailer Sephora. Pleasingly, it recently reaffirmed its organic revenue growth guidance of 30% to 40% in FY 2020 despite the pandemic.
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. It provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. ELMO has been a strong performer in recent years and looks well-placed to continue this trend over the next decade. It has also been performing very positively during the pandemic.
Kogan is a growing ecommerce company which looks well-positioned for long term growth. This is thanks to the growing popularity of its website and the seismic shift to online shopping. At present approximately 10% of all retail spending is online. I expect this to grow over the next decade and for Kogan to continue capturing market share.
Another company which I think has the potential to be a long term market beater is NEXTDC. I believe the data centre operator is well positioned to capitalise on the ever-increasing amount of data being consumed by consumers and businesses. This consumption is only going to increase in the future as more software moves to the cloud and 5G internet adoption grows.
Opthea Ltd (ASX: OPT)
In the healthcare sector I think Opthea is worth a look. It is a developer of novel biologic therapies for the treatment of eye diseases. Trial results of its OPT-302 combination therapy have been very impressive and it could be destined to become a standard of care treatment in markets worth almost US$10 billion per year.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a fast-growing donor management platform provider for the faith and not-for-profit sectors. While this is a certainly a niche market, it is still a very lucrative one. During the first half of FY 2020, the company’s operating revenue jumped 31% to US$56 million. I expect more strong growth in the coming years thanks to the quality of its offering and its leading position in the lucrative market.
REA Group Limited (ASX: REA)
A final share to consider buying is REA Group. It is the owner and operator of the realestate.com.au website and several international equivalents. I believe it is a great buy and hold investment option due to the quality and strength of its business model and its solid long term growth potential. And while current market conditions are tough, I am confident it will bounce back strongly once the crisis passes.
These 3 stocks could be the next big movers in 2020
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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO, BIGTINCAN FPO, Kogan.com ltd, and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. The Motley Fool Australia has recommended Elmo Software and REA Group Limited. 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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