The Motley Fool

Top ASX Stock Picks for June 2020

We asked our Foolish writers to pick their favourite ASX stocks to buy in June. 

Here is what the team have come up with…

Phil Harpur: Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan provides organisations with a platform to access, collaborate on content, and improve customer engagement, in a fast-growing IT software niche commonly referred to as ‘sales enablement’.

Through its software-as-a-service (SaaS) business model, Bigtincan is a capital-light and highly efficient business through its subscription type model.

Bigtincan was only listed on the ASX a couple of years ago and is yet to become profitable, so it’s a relatively risky investment, compared to some of the more established technology companies listed on the ASX.

However, I believe the company appears to be reasonably on track to reach profitability in the years ahead as it gains further scale.

Motley Contributor Phil Harpur does not own shares in Bigtincan Holdings Ltd.

Sebastian Bowen: iShares Global Healthcare ETF (ASX: IXJ)

I’m not entirely comfortable with the highs that the Australian share market has been making recently, and so I’m going for a long-term bet with this one. This healthcare ETF invests in a global basket of healthcare shares – an industry that has evergreen demand.

The ageing populations of Australia and many other countries aren’t going away anytime soon, and thus will provide a long-term tailwind for global healthcare companies in my view. This ETF is a perfect way to capture this trend, and thus I think it’s a great investment this June.

Motley Fool contributor Sebastian Bowen does not own shares in iShares Global Healthcare ETF.

Nikhil Gangaram: AP Eagers Ltd (ASX: APE)

I think ASX shares in the automotive sector are worth watching in June. As the Australian workforce looks to get restarted, many people who take public transport may rethink their commute to work.

AP Eagers is the oldest listed automotive retail group on the ASX. The company has emerged from the coronavirus pandemic with a reduced operational and cost base and could be poised to benefit from a lift in new car sales.

In addition, AP Eagers has secured $122 million in working capital, giving the company an edge over smaller competitors.

Motley Fool contributor Nikhil Gangaram does not own shares in AP Eagers Ltd.   

Michael Tonon: WAM Global Ltd (ASX: WGB)

An investment in WAM Global gives you exposure to a portfolio of diversified, undervalued growth companies outside of the ASX. 

I’m currently attracted to it for a number of reasons. Although it has historically traded at a discount to its net tangible assets, this discount was almost 14% according to its last investment update. Meanwhile, most of WAM’s other portfolios trade at a small discount or even a significant premium. But WAM Global is the new kid on the block, and it needs to prove itself.

In addition, it has attractive profit reserves to continue paying a growing dividend and 17.1% cash weighting ready for deployment into depressed assets.

Motley Fool contributor Michael Tonon owns shares in WAM Global Ltd.

Lloyd Prout: Macquarie Group Limited (ASX: MQG)

With interest rates expected to be at record lows for a while, banks will see a reduction in their net interest margin and have pressure on their profits. If you do want some banking exposure, I’d go for Macquarie over the other ASX big banks.

Macquarie has diversified operations in asset management and investment banking which should give it more resilience in tough times and growth avenues during the good times. 

Macquarie shares are down around 30% from their 52-week high reached in February, presenting a nice entry point for a business that has returned more than 10% p.a. over the last 5, 10, and 20 years.

Motley Fool contributor Lloyd Prout owns shares in Macquarie Group Limited and expresses his own opinion.

Brendon Lau: Aristocrat Leisure Limited (ASX: ALL)

The pullback in the Aristocrat Leisure share price after the group missed consensus profit expectations is a buying opportunity.

Aristocrat’s earnings weakness is due to its land-based business that’s impacted by the COVID-19 shutdown.

But it’s the digital division that I was watching closely – and that is going gangbusters. The mobile apps division is the key future growth driver for Aristocrat. However, the group may soon be firing on both engines again as the worst for the land-based business has passed.

Motley Fool contributor Brendon Lau owns shares in Aristocrat Leisure Limited.

Matthew Donald: Evolution Mining Ltd (ASX: EVN)

Evolution Mining has had an outstanding run in the past year with its share price increasing 58%.

Operations have not been materially impacted by the coronavirus and the company has benefited from continued strength in the gold price. Solid cash flow has enabled debt reduction, dividends to be paid, and investment in future production.

Evolution’s strong financial results are helped by being one of the lowest cost gold producers in the world. The uncertainty still in the market should support a high gold price and help maintain growth in Evolution’s share price.

Motley Fool Contributor Matthew Donald does not own shares in Evolution Mining Ltd.

Tristan Harrison: Bubs Australia Ltd (ASX: BUB)

I think Bubs is one of the most exciting ASX small caps. It’s an infant formula business with a specialty in goat products. Bubs is rapidly growing in overseas markets. In the latest quarter, it grew total revenue by 67%. But Chinese revenue increased by 104% and other market revenue rose by almost 20 times.

Careful spending meant Bubs generated a positive operating cashflow last quarter. If revenue growth continues to be strong it could remain cashflow positive from here with a long growth runway. Other Asian countries are prime growth targets, such as Vietnam. One to watch in 2020 and beyond.

Motley Fool contributor Tristan Harrison does not own shares in Bubs Australia Ltd.

Ken Hall: NextDC Limited (ASX: NXT)

The NextDC share price has surged higher in 2020 but I think it’s still a long-term buy. Data storage and security are set to become even more important as Aussie businesses look towards a more permanent work from home operating model.

NextDC successfully completed a $672 million equity raising which will strengthen its balance sheet and fund its strategic expansion plans. I think despite this year’s share price surge, NextDC shares could be a great ASX tech share to buy and hold for the long-term.

Motley Fool contributor Ken Hall does not own shares in NextDC Limited.

James Mickleboro: Pushpay Holdings Group Ltd (ASX: PPH)

The Pushpay share price was a very strong performer in May thanks to its stellar full year result and guidance for FY 2021.

Thankfully, I don’t believe it is too late to buy the donor management platform provider’s shares. This is because Pushpay still has a significant runway for growth.

In FY 2020 the company delivered a 33% increase in operating revenue to US$127.5 million. This is still only a fraction of its long term revenue target of US$1 billion. To achieve this target, it will need to win a 50% share of the medium to large church market. I wouldn’t bet against this.

Motley Fool contributor James Mickleboro does not own shares in Pushpay Holdings Group Ltd.

Daryl Mather: Orora Ltd (ASX: ORA)

Orora is a packaging company that goes ex-dividend on June 19 and will pay 14.1% based on Friday’s closing price. It also sold its Australasian fibre business in October 2019, providing the company with a $1.2 billion windfall. Half of this will be returned to shareholders.

Between the dividend payment and the return of capital, Orora shareholders will be paid 18% of the share price at Friday’s close. 

Historically the Orora share price tends to rise before it goes ex-dividend. As such, it would be wise to purchase this as early as possible to capture the large yield.

Motley Fool contributor Daryl Mather does not own shares in Orora Ltd.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO, Macquarie Group Limited, and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BIGTINCAN FPO. 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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