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3 five-star ASX shares to buy

asx shares to buy

If you’re looking for some new additions to your portfolio in July, then I think the three ASX shares listed below would be great options.

I feel they are among the best on offer on the Australian share market and believe they can generate strong returns for investors over the next decade.

Here’s why I rate them as five-star stocks:

Afterpay Ltd (ASX: APT)

I think this payments company is a five-star stock. I’ve been very impressed with the company’s performance in FY 2020 and particularly during the pandemic. Not only has Afterpay delivered explosive sales and customer growth, its losses and income margins have remained relatively stable. I believe this demonstrates the resilience of its business model. And while the Afterpay share price certainly does trade a premium to the market average, I believe this is justified thanks to its enormous growth potential. Overall, I feel Afterpay could prove to be a fantastic buy and hold option for investors.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another five-star stock to consider buying is Domino’s Pizza. I rate the pizza chain operator highly because of its strong market position and its positive long term growth outlook. The latter is thanks to management’s bold expansion and sales targets. Over the next five years the company is aiming to grow its same store sales by 3% to 6% per annum. It is also aiming to deliver annual organic new store additions of 7% to 9% per annum over the same period. If it delivers on this, the combination of the two should result in stellar earnings growth.

Pushpay Holdings Group Ltd (ASX: PPH)

A final five-star stock to look at is Pushpay. It is a fast-growing donor management platform provider for the faith sector. It has been growing its market share in the United States at an impressive rate over the last few years. This has led to the company delivering exceptionally strong revenue and operating earnings growth. The good news is that management isn’t resting on its laurels and has set itself bold revenue targets. It is aiming to grow its revenue to US$1 billion in the future by capturing 50% of the medium to large church market. This compares to the US$127.5 million revenue it achieved in FY 2020. Given the quality of its offering, which has been bolstered by the acquisition of church management system provider Church Community Builder, I believe it will achieve its goal. This could make the Pushpay share price a market beater long into the future.

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 February 15th 2021

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and PUSHPAY FPO NZX. 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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