If you are looking for some quality ASX shares to add to your portfolio in July, I think the following are both worthy of consideration. Here's why these ASX shares are in my buy zone right now:
2 ASX shares to buy right now
Macquarie Telecom Group Ltd (ASX: MAQ)
Macquarie Telecom is a local telecommunications provider that's not as well known as rivals Telstra Corporation Ltd (ASX: TLS), TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC). However, this Aussie telco has actually been in operation for over two decades.
Macquarie Telecom services both the enterprise and government sectors. Its specialist services predominantly span the three market segments of data centres, cloud computing and cybersecurity solutions.
The Macquarie Telecom share price has seen strong growth over the past 12 months, having more than doubled in value since 15 July 2019.
The company has also been financially outperforming many of its larger rivals. For the six months ended 31 December, Macquarie delivered a strong 9% increase in revenue on the prior corresponding period to $132 million. EBITDA growth for Macquarie was even more impressive. It grew by 24% to $31.6 million in the first half. The main driver of this growth was the company's hosting business which saw strong demand for cloud services and related data centre services.
Macquarie Telecom also continues to benefit from the acceleration of cloud, data centre and cybersecurity trends, due to COVID-19. I believe the company is well positioned to continue growing strongly on the back of increasing demand for these core services over the next few years.
a2 Milk Company Ltd (ASX: A2M)
Despite the challenges resulting from the pandemic, the a2 Milk share price has continued to rise higher in 2020. Demand for the company's products has remained strong throughout the crisis. The a2 Milk share price has increased from $14.16 at the beginning of February to its current price of $19.56.
a2 Milk announced a very strong 31.6% increase in total revenue to NZ$807 million in its half year FY 2020 results. More recently, the company revealed continued strong growth from late February to late April across all its operating regions. Demand for a2 Milk's infant nutrition products in China and Australia has proven to be particularly strong.
I feel a2 Milk's continued expansion into the massive United States and Chinese markets will be key to its success over the next 5 years. If the company is unable to achieve its ambitious growth targets for these markets, its share price is likely to be significantly impacted. However, I remain reasonably confident that a2 Milk is well placed to deliver on its growth objectives.
