A number of ASX shares continue to rise this year, whilst others present golden opportunities.
In my view, one of the most effective investment strategies is to actively research and find undervalued businesses that have the potential to grow materially in the future.
Below, I have selected my top 5 ASX shares to buy in 2020 that I think will outgrow the S&P/ASX 200 Index (ASX: XJO) over the next 5 years.
CSL Limited (ASX: CSL)
One of the most popular shares on the ASX is global giant CSL. This biotech company manufactures and distributes life saving medicines for people suffering from serious and rare diseases, as well as providing influenza vaccinations to the public.
The CSL share price has been rising thanks to the company appeasing market concerns about its plasma collections through its FY20 results. The CSL share price is currently going for $289.89, a gain of more than 23% in the past year.
While trading below its all-time high of $342.75 (reached in February), the slight pullback presents an opportune time for bargain hunters to swoop in on this quality ASX share.
Polynovo Ltd (ASX: PNV)
Polynovo recently announced its FY20 results and it did not disappoint. Sales of its NovoSorb BTM doubled and the company is looking to continue its revenue growth trajectory in FY21.
The Polynovo share price leapt 13.4% today to $2.28, and is 78% ahead of its March low of $1.28. Over the past 24 months, the Polynovo share price has increased by more than 300%.
Investing in medical companies should always be a minimum 5-year plan, as product development and entrance to new markets can be time consuming but potentially very rewarding.
In light of this, coupled with yesterday’s share price rise, I would class Polynovo a buy and hold for the long-term.
Bingo Industries Ltd (ASX: BIN)
The waste management and recycling company surprised the market a few days ago with a number of positive achievements in its FY20 results release. The company reported solid performance with net profit jumping 196% from FY19.
The news sent the Bingo share price surging higher on the day by as much as 15%. Today, Bingo shares can be bought for $2.30. The Bingo share price is hovering around 56% above its 52-week low of $1.47.
In my opinion, the strong domestic waste services market puts Bingo in a favourable position for more growth, post-COVID-19.
For investors seeking a mid-cap company that is exposed to a booming market in the near term, Bingo shares could be a timely investment.
Newcrest Mining Limited (ASX: NCM)
Australia’s largest gold mining company has again been gaining traction over the past year. In the midst of economic uncertainty, the gold spot price has been surging near its all-time high, reached early this month.
The Newcrest share price fell to $20.70 during the onset of the pandemic, and has now recovered to $31.37, an increase of 51.5% in the space of 5 months.
I think that every portfolio should have some gold exposure to safeguard against extreme market volatility. Thus, now could be a good time to join the gold run before it reaches new highs.
WiseTech Global Ltd (ASX: WTC)
WiseTech is a leading global provider of software solutions to the logistics industry. The company has enjoyed tailwinds recently, thanks to the re-opening of global markets and strong demand for its CargoWise platform.
The WiseTech share price fell heavily in March to a low of $9.97, a drop of 74% from its all-time high reached in late 2019. Currently the WiseTech share price is fetching $28.14, up 18% year to date.
After reporting strong FY20 results this month, I believe WiseTech is poised for greater future growth and now could be an opportune time to pick up some shares in this quality company.
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 June 30th
Aaron Teboneras owns shares of CSL Ltd. and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., POLYNOVO FPO, and WiseTech Global. The Motley Fool Australia has no position in any of the stocks mentioned. 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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