The Motley Fool

Top ASX Stock Picks for August 2020

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

Here is what the team have come up with…

Brendon Lau: Audinate Group Ltd (ASX: AD8)

Audinate shares have been under pressure since the tech company’s earnings update and capital raising last month, but I think it’ll find a floor and start to recover over the next few months. I’ve seen a similar trend for other cap raise candidates where the stock trades comfortably above the offer price following the transaction. Audinate sold new shares at $5.15 to institutions and its SPP is priced at the same level (or a 2% discount to VWAP).

I believe the Audinate share price will stay above the offer price given the positive longer term outlook and adoption rate for its technology.

Motley Fool contributor Brendon Lau owns shares of Audinate Group.

Michael Tonon: Nearmap (ASX: NEA)

Since Nearmap showed its business model was also successful in the huge American market, its share price has experienced some large swings, both up and down. No doubt it is now watched closely by more analysts while its growing market cap pushed it into the ASX200 in 2019.

While COVID-19 would have provided many challenges, I believe some businesses may have turned to Nearmap’s services as site visits became more difficult with restrictions. This leads me to believe that these structural changes may outweigh any of the short term impacts of the pandemic on the stock.

That’s why looking through Nearmap’s share price movements, I believe it to be a fantastic opportunity and eagerly await its FY20 results, due to be released 19 August. 

Motley Fool contributor Michael Tonon owns shares of Nearmap.

Lloyd Prout: BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The Technology Tigers ETF share price is up 52% over the last year, including distributions. Despite this, I think it makes a great long term option for investors looking for both international and industry-specific diversification.

The ASX has a relatively immature technology sector, with the few well known tech stocks (Eg. the WAAAX stocks) sporting lofty valuations as a result. The Technology Tigers ETF allows you to buy international behemoths, that are continuing to grow rapidly, at relatively lower valuations.

Not only that, China and Asia more broadly is a massive and growing market – especially as the middle class expands.

Motley Fool contributor Lloyd Prout owns shares in BetaShares Asia Technology Tigers ETF and expresses his own opinion.

Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH) 

I think Pushpay is one of the most promising ASX shares. It’s an electronic donation business that is focused on facilitating digital giving to large and medium churches.  

Its growth has accelerated due to the COVID-19 social distancing measures. Its FY20 was a strong year and earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is expected to at least double in FY21. 

The company is aiming for even higher profit margins in FY21. It wants to achieve US$1 billion of annual revenue from the US church sector over the long-term. 

Motley Fool contributor Tristan Harrison does not own shares of Pushpay. 

Chris Chitty: Coles Group Ltd (ASX: COL)

Coles recently hit a record high as it proves to be an ongoing success story. The company continues to grow its share of the lucrative grocery market. Its record high comes after former parent Wesfarmers Ltd (ASX: WES) sold out of the business in April and shows that Coles is more than capable of thriving as an independent company.

With 50 quarters of consecutive sales growth in its supermarket business, Coles is on a winning streak that could last for some time as more consumers continue to shift to the retailer.

Motley Fool contributor Chris Chitty does not own shares in Coles Group.

Matthew Donald: Dicker Data Limited (ASX: DDR)

A big reason for Dicker Data being my top ASX stock pick for August is that I was really impressed with the company’s recent AGM presentation and market update. Dicker Data is a hardware, software, and cloud distributor with over 41 years’ experience.

It reported double-digit percentage increases in revenue from ordinary activities, recurring software revenue, net profit after tax (NPAT), and net profit before tax.

In addition, the company could benefit from the surge in remote work in response to the COVID-19 pandemic. As a result of the surge in demand, Dicker Data’s hardware and software portfolios play an essential role in helping businesses continue to operate.

Motley Fool Contributor Matthew Donald does not own any stocks in Dicker Data Limited.

Sebastian Bowen: VanEck Vectors Wide Moat ETF (ASX: MOAT)

My pick for this month is this US-focused exchange-traded fund (ETF). In these uncertain times, I think finding businesses with defensive characteristics is more important than ever. And these are the kinds of businesses that MOAT invests in.

Companies are only selected for MOAT if they show signs of possessing a strong competitive advantage, or ‘moat’. Right now, these include famous names like Charles Schwab, Intel, Amazon.com, Tiffany & Co, Berkshire Hathaway and Bank of America.

For an easy way of investing in top quality US shares, I think this ETF is a great choice for August and beyond

Motley Fool contributor Sebastian Bowen owns units of VanEck Vectors Wide Moat ETF.

Toby Thomas: Super Retail Group (ASX: SUL)

I’m on a roll after last month picking Kogan.com (ASX: KGN), which improved 13% over July. For August though you can’t go past Super Retail, which owns recreation companies like Supercheap Auto, Rebel Sport and BCF Camping.

The Super Retail share price jumped nearly 10% on Friday after it reported a 27% spike in revenues for June and a better than expected overall performance for FY20.

As people ditch their usual mid-year holiday routine on a beach in Greece and replace it with spending cash on a road-trip, fitness equipment or camping gear, look for Super Retail to outperform in August and over the coming 12 months.

Motley Fool contributor Toby Thomas does not own shares in Super Retail Group.

Ken Hall: A2 Milk Company Ltd (ASX: A2M)

The A2 Milk Company is at the top of my watchlist in August.

I’m quietly bullish on the A2 Milk share price ahead of its August earnings result.

A planned international push into Canada combined with strong demand across Australia and Asia means we could see some strong growth figures.

Despite trading just shy of its all-time high of $20.05, I think A2 Milk shares could surge towards $25 on the back of a strong earnings result.

I like the geographic diversification and historical success of the Kiwi dairy group, as well as potentially robust earnings.

Motley Fool contributor Ken Hall does not own shares in A2 Milk Company Ltd.

James Mickleboro: CSL Limited (ASX: CSL)

With the CSL share price down over 21% from its 52-week high, I think now would be an opportune time to buy this biotherapeutics giant’s shares. This has been caused by concerns about plasma collections because of the coronavirus pandemic. However, I believe any weakness this causes in the CSL Behring business in FY 2021, will be offset by increasing demand for flu vaccines produced by its Seqirus business.

Looking further ahead, I’m confident its portfolio of leading therapies and high level of investment in research and development have positioned CSL to deliver solid earnings growth over the 2020s.

Motley Fool contributor James Mickleboro does not own shares in CSL Limited.   

Glenn Leese: Xero Limited (ASX: XRO)

With the trend of working from home increasing, businesses becoming more digital and the need to allow remote access, Xero is in prime position to thrive.

Being a Software as a Service (SaaS) company, Xero specialises in cloud-based software for businesses. Its products include tax, cashflow, bookkeeping and other tools. Multiple industries are serviced, including retail, technology and healthcare.

Xero shares have grown almost 40% in the last year, including the recent market crash.

Motley Fool Contributor Glenn Leese does not own any shares in Xero Limited.

Phil Harpur: Kogan.com Ltd (ASX: KGN)

Kogan has been one of the star performers on the ASX in recent months. The online retailer’s share price has surged from below $4 in mid-March to now be trading above $16. This strong rally is linked to a series of positive market updates, as online sales have been in strong demand during the coronavirus crisis.

Gross sales climbed by more than 95% during the fourth quarter of 2020. Despite the strong recent share price increase, I believe that there is strong potential for further growth for the Kogan share price in the years to come, as the structural shift towards the online shopping environment continues.

Motley Fool contributor Phil Harpur owns shares of Kogan.com Ltd.

Nikhil Gangaram: Ansell Limited (ASX:ANN)

Ansell is a global leader in manufacturing and distributing health and safety protection solutions, operating in the industrial and healthcare sectors. With infection prevention and control become a more pressing concern in Australia, the company could be one to watch when it reports its full-year earnings.  

In its market update in late March, Ansell informed investors that the company had seen very strong demand for its AlpahaTec hand and body protection products, whilst also seeing a surge in demand for single-use and surgical gloves.

Motley Fool contributor Nikhil Gangaram does not own shares in Ansell Limited.   

These 3 stocks could be the next big movers in 2020

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO, CSL Ltd., Kogan.com ltd, Nearmap Ltd., PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF, Dicker Data Limited, and Super Retail Group Limited. The Motley Fool Australia owns shares of A2 Milk and COLESGROUP DEF SET. The Motley Fool Australia has recommended AUDINATEGL FPO, Kogan.com ltd, Nearmap Ltd., PUSHPAY FPO NZX, and VanEck Vectors Morningstar Wide Moat ETF. 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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