There are over 2,000 companies listed on the ASX right now. As such, deciding on which are the best to buy can be challenging. Following are three ASX shares that I think would make great buys right now. These companies are either growing well or are showing promise. Furthermore, all of them have a market capitalisation above $300 million meaning they should be a little more stable than their small and micro cap friends.
My top ASX shares to buy this week
Serko Ltd (ASX: SKO)
About Serko
Serko is a software-as-a-service (Saas) company in the travel and expense management space. It provides powerful online solutions to customers in more than 35 countries. Serko is listed on both the Australian and New Zealand stock exchanges.
Serko share price
The Serko share price took a massive hit during the first wave of coronavirus. This was not surprising considering its key market and customer base. Most companies had to all but stop corporate travel in March this year. Serko didn't get off easy with the company's share price practically falling off a cliff. However in late March, we saw very much a 'V-shaped recovery' in the Serko share price.
Serko fell from heights of $5.50 right down to 90 cents in a matter of 60 days. The good news for investors is that since the March lows, Serko has managed to claw its way back up to a price of $3.86 at the time of writing. It's certainly on the up and up. One thing I really like is that the Serko share price has struggled to get past $3.70 since June, however this week it's finally broken through. I hope this is a positive breakout and it continues up. The Serko share price is up more than 4% this week.
Why I like Serko
While Victoria seems destined for indefinite lockdowns, the rest of the country is half way back to a normal existence. Serko's services extend internationally and most countries are also working hard on getting their economies back to normal. With news of a vaccine as soon as January 2021 on the rise, Serko is in prime position to capitalise on a returning corporate travel market. This is absolutely one of my top ASX shares to buy this week.
CSL Limited (ASX: CSL)
About CSL
CSL researches, develops, manufactures, markets and distributes bio pharmaceutical products. Its market base is huge, with products being distributed to major countries such as Australia, the United Kingdom, Germany, the United States, Switzerland, China and many others.
CSL share price
The CSL share price has been floating between about $270 and $300 for the last couple of months. CSL took an initial hit in the March crash, but recovered almost instantly. Still, it's down to around $280 today from its previous heights of $340, meaning that it's trading at approximately a 17.6% discount. I think the current CSL share price is great value considering the scope of the company and its future prospects.
Why I like CSL
CSL has over 100 years experience in its field. It's a major player and isn't going anywhere anytime soon. It also has a string of achievements to its name in the medical space.
One of the main reasons CSL is on my watch list is because of its potential to be involved in the production of a coronavirus vaccine. CSL is in prime position to produce millions of doses of a potential vaccine. The federal government recently announced it would commit up to $1.7 billion towards Australia's vaccine production.
With such a huge history of success, I believe CSL will be heavily involved in the fight against the pandemic. This is a company that was already strong and, in my view, this latest development only makes it stronger.
Xero Limited (ASX: XRO)
About Xero
Xero is a SaaS company offering cloud-based software spanning a huge number of areas to business owners. Xero's platform encompasses tax, cash flow, workflow, invoicing, expense management and many other aspects of business operations. Xero has over 2 million active subscribers. Even more impressive is the fact that it added almost 100,000 new customers last quarter. Xero services multiple industries including eCommerce, hospitality, construction, healthcare, farming, manufacturing and many others.
Xero share price
The Xero share price has taken a dip recently, presenting a buying opportunity. Down almost 8% since the start of September, I think this company is great value. Xero has shown incredible strength since the March crash, not only recovering lost ground, but exceeding previous highs.
Why I like Xero
Xero helps businesses operate more efficiently. It also helps business owners run their companies from any location. This is critical in a rapidly changing business landscape. Considering the current state of the world, the work from home revolution and the huge number of new small businesses being launched, Xero is in a prime position to benefit. It is one of my top ASX shares to buy this week.
Foolish takeaway
I like to look for companies that make sense to buy in the current climate. Although we're not over coronavirus, we are certainly making progress towards an economic recovery, which is why I'm pro travel and health. We are also becoming an online world more than ever before. I believe the companies that capitalise on these trends are the ones that will ultimately win.
