With a new financial year on the horizon, now could be an opportune time to consider making some new additions to your portfolio.
To help you on your way, I’ve picked out ten ASX shares which I think would be great options for FY 2021. They are as follows:
a2 Milk Company Ltd (ASX: A2M)
A2 Milk Company is a New Zealand-based infant formula and fresh milk company with a focus on A2-only products. It has been growing at a rapid rate over the last few years thanks to the insatiable demand for its infant formula in China. I expect more of the same in the coming years, which could be supported by new product launches and acquisitions.
Altium Limited (ASX: ALU)
Altium is an industry leading printed circuit board design software provider. While FY 2020 has been impacted greatly by the pandemic, I believe it is worth overlooking its underperformance and focusing on its long term growth potential. This is thanks to its exposure to the Internet of Things boom, which is driving strong demand for its software.
I think Appen would be a great option. It has a million-plus team of crowd sourced experts preparing data that goes into the artificial intelligence and machine learning models. As these markets are expected to grow materially in the future, I believe it is well-placed for growth.
Bubs Australia Ltd (ASX: BUB)
Bubs is a goat’s milk-focused infant formula and baby food company. I believe it could grow materially in the future thanks to its growing distribution footprint online in China and offline in Australian supermarkets. Another positive is its recent expansion into cow’s milk infant formula.
I think this biotherapeutics company would be a great long term option. I’m a big fan of CSL due to the increasing demand for immunoglobulins, its world class plasma collection network, growing demand for influenza vaccines, and its lucrative research and development pipeline.
Nanosonics Ltd (ASX: NAN)
I think this infection control specialist is a top option due to its positive long term growth potential. Not only does its trophon EPR disinfection system have a massive market opportunity, the company is launching new products targeting unmet needs. These could take its growth to the next level if they are successful.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a donor management platform provider for the faith sector. It has been growing at a rapid rate thanks to its leadership in a niche but lucrative market. Management has set itself a target to win a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity and is many multiples FY 2020’s revenue of US$127.5 million.
REA Group Limited (ASX: REA)
REA Group is a leading property listings company with websites in Europe, Asia, the United States, and of course Australia. While trading conditions are tricky at present, I expect them to ease once the pandemic passes. This could make it worth snapping up its shares with a long term view.
I think this sleep treatment-focused medical device company is well-placed for growth thanks to its industry-leading products and sizeable market opportunity. Management estimates that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. The vast majority of these are undiagnosed.
Xero is a leading cloud-based business and accounting software provider. It has been growing its customer numbers and recurring revenues at a strong rate for many years. I’m confident there will more of the same over the coming years thanks to the shift to online accounting, its global market opportunity, and high quality product.
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
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium, CSL Ltd., Nanosonics Limited, PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited, PUSHPAY FPO NZX, REA Group Limited, and 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.
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