If you’re looking to invest $3,000 into the ASX right now, I believe that the 3 ASX shares listed below are all quality options.
All 3 have very different business models and operate in 3 very different industries. However, I believe that all are well placed to outperform the S&P/ASX 200 Index (ASX: XJO) over the next 5–10 years.
Blackmores Limited (ASX: BKL)
Blackmores recent financial performance has been disappointing, with the company’s operations in China in particular underperforming. This underperformance has been reflected in the Blackmores share price, which has struggled to rise higher over the past year.
However, Blackmores has seen a rise in demand for its immunity products during the coronavirus pandemic. It also plans to further accelerate its Asian expansion strategy, particularly in China. I remain optimistic about the potential of Blackmores’ Asian strategy, and I am particularly encouraged by the potential that the Indian market holds for the company.
With the Blackmores share price well down on its 12-month high in early February, I believe now could be a good time to purchase shares at a more favourable price.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
I am attracted to Soul Patts as an ASX share to invest due to its strong market diversification. Soul Patts has market exposure to a broad range of industries, including pharmacies, telecommunications and mining and building products. This diversification acts as a buffer to any market volatility.
In addition, Soul Patts has an enviable long-term track record of outperforming the S&P/ASX 200 Index (ASX: XJO).
Soul Patts also has an excellent management team and a very conservative balance sheet. This places it in an ideal position to snap up any investment opportunities that may come its way. I believe this growth story is set to continue for Soul Patts in the next few years ahead.
Soul Patts is also a strong dividend paying share. It currently pays a fully forward dividend yield of 3.0%.
Audinate Group Ltd (ASX: AD8)
ASX tech share Audinate specialises in audio networking solutions that are used in the production of a range of professional audio equipment. Its core solutions work by improving audio quality using ethernet or fibre optic cables. This thereby reduces the need for extra cabling and installation.
For the six months ended 31 December 2019, Audinate delivered a solid 14% increase in revenue to $16.1 million. It also saw a very strong 3.8% increase in its gross margin to 77.1%. Its earnings before interest, tax, depreciation and amortisation climbed 11% to $1.9 million. Also, unaudited revenue for its most recent quarter climbed by 14%.
I believe the growth story for Audinate is set to continue over the next few years. Its core solution currently dominates the audio market, providing a strong competitive barrier to new market competition.
Where to invest $1,000 right now
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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.
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Phil Harpur owns shares of Blackmores Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended AUDINATEGL 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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