Top ASX shares to buy in December 2020

Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in December. Here's the lowdown…

Santa sitting on beach looking up best ASX shares to buy on a laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Xero. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Collins Foods Limited, Elders Limited, and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Best ASX Shares

Three travellers laughing and smiling outside an airport
⏸️ Best ASX Shares

If you'd invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here's what it would be worth now

The travel expert has proved a winner for long-haul investors...

Read more »

illustration of three houses with one under a magnifying glass signifying mcgrath share price on watch
⏸️ Best ASX Shares

The 5 best ASX real estate shares of the 2021 financial year unmasked

Office space, industrial storage, retail malls and residential. These companies cover them all.

Read more »

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
Energy Shares

5 best ASX energy shares of the 2021 financial year revealed

As the world emerged from initial COVID lockdowns, the demand for energy soared.

Read more »

best asx 200 shares of financial year 2021 represented by 2021 formed with gold piggy bank
⏸️ Best ASX Shares

Meet the best performing ASX 200 shares of FY21. Are yours on the list?

These companies have been crowned the best of the best in FY21...

Read more »

retail asx share price represented by shopping trolley full of cash
⏸️ Best ASX Shares

How I'd build a 'best stocks to buy now' list

Focusing on the quality and prices of companies from a diverse range of sectors could make it easier to build…

Read more »

asx share price on watch represented by investor looking through magnifying glass
⏸️ Best ASX Shares

How I'd aim to find top shares to buy in March 2021

Comparing companies with their peers and considering how they might change in future could allow an investor to find the…

Read more »

Brest ASX shares represented by piggy bank surrounded by autumn leaves
⏸️ Best ASX Shares

Top ASX shares to buy in March 2021

Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in March.…

Read more »

rising asx share price represented by man with arms raised against blackboard featuring images of dollar notes
⏸️ Best ASX Shares

Why the Wesfarmers (ASX:WES) share price has soared 24% in a year

The Wesfarmers Ltd (ASX:WES) share price has been a solid performer over the past year. Here's why this ASX blue…

Read more »