If you have some funds to invest into the Australian share market in October, then I think it could be worth splitting them across the two ASX shares listed below.
Here’s why I think they would be great options this month:
CSL Limited (ASX: CSL)
I think this biotherapeutics giant’s shares are trading at a very attractive level following a 17% pullback from their 52-week high. This pullback has been caused by concerns over its performance in FY 2021 due to difficulties collecting plasma during the pandemic. These collections are vital for CSL because plasma is used to create some of its leading therapies. A shortage could drive prices higher and lead to margin compression.
While I suspect that this will weigh on its performance slightly, I’m optimistic that increasing demand for seasonal flu vaccines will help offset this. Furthermore, it is worth remembering that this headwind is only temporary and trading conditions will return to normal once the pandemic passes. In light of this, I feel investors should be focusing on its future, which is looking very positive. This is thanks to its leading therapies, recent acquisitions, and its high level of investment in research and development.
Xero Limited (ASX: XRO)
Another ASX 200 share I would buy is Xero. It is a leading global provider of cloud-based business and accounting software. I believe Xero would be a great option for investors due to its exceptionally positive long term outlook thanks to the ongoing shift to cloud-based solutions.
This shift is underpinning strong demand for its high quality and sticky platform, which is generating growing recurring revenues. Positively, while the pandemic has hit small and medium sized businesses hard, it hasn’t prevented Xero from continuing its growth in FY 2021. From between April and through to 31 July, Xero added 96,000 net subscribers to its platform. This lifted its subscribers to a total of 2.38 million at the end of the period. While this is a large number, it is still only a fraction of its global addressable market.