Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in December.
Here is what the team have come up with…
Sebastian Bowen: Collins Foods Ltd (ASX: CKF)
Collins Foods is not exactly a household name. But the primary business that Collins has a license to operate and franchise in Australia certainly is. Ever heard of Kentucky Fried Chicken (KFC)? Yes, Collins runs KFC, as well as Taco Bell in Australia (as well as in a few other countries), and is doing a good job of it, if the numbers are anything to go by.
For the six months ended 30 September, Collins Foods delivered an 11.3% increase in revenue, which included a 15.6% increase from KFC restaurants. Even in a pandemic, fried chicken is apparently an Aussie staple.
Motley Fool contributor Sebastian Bowen does not own shares of Collins Foods Ltd.
Brendon Lau: Elders Ltd (ASX: ELD)
Expectations for a wetter than normal summer bodes well for agri-business Elders, which is among the ASX shares most leveraged to increased crop yield. Further, Citigroup noted the preliminary data from the latest Wool and Sheepmeat Survey reinforces the outlook for an accelerated sheep flock rebuild in 2021. While this will likely lead to a 5% decline in lamb prices, the increased volumes will offset this.
Citi is recommending Elders shares as a ‘Buy’ with a price target of $13 per share. At the time of writing, the Elders share price is trading at $10.18.
Motley Fool contributor Brendon Lau owns shares of Elders Ltd.
Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an electronic donation business servicing the medium and large church sector in the United States. The company has been benefitting from the shift away from cash to digital payments.
In its recent FY21 half-year result, Pushpay demonstrated its scalability with rising profit margins. Operating revenue increased 53% and earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) grew by 177% to US$26.7 million.
In FY21, Pushpay is aiming to more than double its EBITDAF and, in the long run, its goal is US$1 billion in revenue. At the time of writing, the Pushpay share price is valued at 24x FY23’s estimated earnings according to Commsec.
Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd.
Rhys Brock: Dubber Corp Ltd (ASX: DUB)
Dubber develops cloud-based call recording software for corporate clients. While particularly useful in managing high volume call centres, Dubber’s software has a wide range of sophisticated applications. It even uses artificial intelligence and voice analysis to measure changes in customer sentiment.
Because Dubber’s cloud-based technology isn’t reliant on traditional telecommunications infrastructure, it has been uniquely placed to meet the new business demands created by the COVID-19 pandemic. FY20 saw record growth in Dubber’s customer numbers, as more companies transitioned to remote working arrangements. Annualised recurring revenues jumped 95% year on year in FY20 to $16.1 million.
Motley Fool contributor Rhys Brock does not own shares of Dubber Corp Ltd.
James Mickleboro: Xero Limited (ASX: XRO)
My December ASX share pick is this leading, cloud-based business and accounting software platform provider. Xero has really caught the eye this year after overcoming the pandemic to deliver an exceptionally strong first half result. Xero reported a 19% increase in subscribers to 2.45 million and a 21% lift in operating revenue to NZ$409.8 million. Things were even better further down the income statement, with operating earnings increasing 86% to NZ$64.9 million.
One broker that is confident there is more to come is Goldman Sachs. It recently put a Buy rating and $157 price target on Xero shares. Goldman believes Xero can grow its subscribers to 7.4 million and revenue to NZ$3.4 billion by 2030.
Motley Fool contributor James Mickleboro does not own shares of Xero Limited.
Bernd Struben: Transurban Group (ASX: TCL)
The Transurban share price is no longer trading near the bargain levels we saw in March.
The company’s shares were hit hard when lockdowns saw traffic on its toll roads evaporate. But as Brad Potter, Head of Australian Equities at Nikko Asset Management, writes, “Looking through the lockdowns, it was obvious that Transurban’s roads would be used again.”
Nikko AM hadn’t owned shares in Transurban for many years. But the fund manager’s long-term, mid-cycle sustainable earnings process flagged the shares as a buy in 2020.
While the Transurban share price is now up 38% from its 19 March low, it remains down 15% from 19 February. And as the world reopens, traffic will keep increasing.
Motley Fool contributor Bernd Struben does not own shares of Transurban Group.