There are some star ASX shares that I’d buy for the rest of 2020. Markets may prove to be volatile over the next few weeks with the US election.
Here are my three picks:
Pushpay Holdings Ltd (ASX: PPH)
I think Pushpay could continue to be a great ASX share to own for the rest of the year.
The Pushpay share price has already risen by 117% over the past six months.
Before COVID-19 came along, Pushpay was generating solid growth with the technological improvements that its technology offers. The ASX offers an app to allow large and medium churches to stay connected with their congregations. For example, it offers a livestream service.
The app also allows people to donate to their church. That’s where the money is made by Pushpay. It takes a clip of each donation. As donations through Pushpay rise, its revenue and profit goes up.
Its profit margins are rapidly rising as the business scales. In FY20 the ASX share’s gross profit margin went up from 60% to 65%.
COVID-19 cases are rocketing in the US again. At the end of last week it reached a record daily number increase of 83,000 on Friday. This may see more people decide to physically distance and/or more restrictions come into place to halt COVID-19’s growth again – particularly if Joe Biden wins the presidency. Those types of conditions may accelerate Pushpay’s growth.
Tyro Payments Ltd (ASX: TYR)
Tyro is a payments ASX share that facilitates payments to merchants through a Tyro terminal. One (or more) of your local cafes probably has a Tyro terminal to accept payment. One benefit of Tyro, besides having a wide array of payment options, is that it links with accounting software such as Xero Limited (ASX: XRO).
There has obviously been a reduction in economic activity for Tyro because of the COVID-19 hit with closures, restrictions and some customers avoiding public places.
I think Tyro could be a good ‘COVID recovery’ idea, particularly once Melbourne’s restrictions start to loosen. I also like the recent alliance between Tyro and Bendigo and Adelaide Bank Ltd (ASX: BEN) which will see Tyro take over Bendigo Bank’s terminal network.
Despite being compared to pre-COVID-19 times, Tyro has reported that its October year to date (YTD) transaction value has grown by 5%. In October (to 16 October) it had seen transaction growth of 11%. I think this could accelerate over the rest of the year, which would be good for the ASX share.
Betashares Ftse 100 ETF (ASX: F100)
The UK share market has been heavily affected by what has happened with COVID-19. Brexit continues to cause investors to worry about what’s going to be in the final agreement (or not) with the EU.
The London Stock Exchange has a number of high-quality businesses. The exchange-traded fund (ETF) owns the biggest 100 businesses listed in the UK including: Astrazeneca, GlaxoSmithKline, HSBC, Diageo, British American Tobacco, Unilever, Rio Tinto, Reckitt Benckiser, BP and Royal Dutch Shell.
I think the ETF could recover if Brexit can be sorted before the end of the year.
The UK share market would also benefit heavily from some positive vaccine news considering the UK is currently going through a second wave of COVID-19 infections and restrictions.
I think the best time to buy (ASX) shares is when there is a lot of negativity and fear across the entire market. I believe there are plenty of reasons to be positive about the UK’s long-term future, so this could be an opportunistic time to buy a portfolio of quality UK businesses which should be good dividend payers in the future too.
Where to invest $1,000 right now
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Tristan Harrison 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, Tyro Payments, and Xero. The Motley Fool Australia has recommended 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.