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Top ASX shares to buy in March 2021

Brest ASX shares represented by piggy bank surrounded by autumn leaves
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As we waved goodbye to summer and another action-packed earnings season, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in March.

Here is what the team have come up with…

James Mickleboro: NextDC Ltd (ASX: NXT)

NextDC is Australia’s leading data centre operator, with a total of nine centres located across Australia. The company’s highly interconnected platform of premium colocation data centres is home to the country’s largest and most comprehensive ecosystem of over 660 cloud, network, and specialist IT service providers.

Demand for capacity in NextDC’s centres has been growing strongly thanks to the shift to the cloud. This led to NextDC recently reporting a 29% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $65.7 million for the first half. Positively, more of the same is expected in the second half.

This impressed analysts UBS. They recently retained their Buy rating for this ASX share and lifted their price target to $15.40. At the time of writing, this represents a 37.5% upside to the current NextDC share price.

Motley Fool contributor James Mickleboro owns shares of NextDC Ltd.

Tristan Harrison: Redbubble Ltd (ASX: RBL) 

The Redbubble share price has fallen by over 20% since 25 January 2021 to $5.11 at the time of writing. 

However, broker Morgans likes the e-commerce artist product business, rating Redbubble shares as a Buy with a share price target of $6.64. This represents an almost 30% upside to the current Redbbble share price. The broker thinks the structural move to online shopping is here to stay and this benefits Redbubble.  

In its FY21 half-year result, Redbubble reported 94% growth in its marketplace revenue to $353 million, 118% growth in gross profit to $144 million and 95% growth in operating cash flow to $80 million.  

In January, Redbubble saw growth continue with marketplace revenue growth of 66%.  

Motley Fool contributor Tristan Harrison does not own shares of Redbubble Ltd. 

Mitchell Lawler: Ramsay Health Care Limited (ASX: RHC)

Ramsay Health Care owns and operates private hospitals across ten countries. The company’s network handles over 8 million patient visits per year throughout its more than 500 locations. This blue chip share has stood the test of time, being operational since 1964 and listed on the ASX since 1997.

The Ramsay share price has been oscillating between $60 and $70 since May 2020. Concerns surrounding the pacts of COVID-19 on the company’s operations had investors wary. However, Ramsay’s recent results pointed to only a slight 1% hit to its earnings. The company also resumed paying its dividend, declaring a fully franked dividend of 48.5 cents per share.

Motley Fool contributor Mitchell Lawler owns shares of Ramsay Health Care Limited.

Bernd Struben: Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is the largest listed medical diagnostics operator in Australia, with a market capitalisation of around $15.8 billion. Based in Sydney, Sonic has steadily expanded internationally. Approximately half its revenue is now generated from overseas.

Sonic’s business benefits from ageing populations in its core markets. The company also witnessed a big lift in revenue as the pandemic drove increased demand for its services. In the first half of FY21, Sonic’s revenue grew 33% year on year whilst operating profit increased 89%. With COVID-19 unlikely to disappear any time soon, that tailwind should continue.

Over the past 12 months, the Sonic share price has gained 12%. Based on the current Sonic share price, the company pays a 2.6% dividend yield, 30% franked.

Motley Fool contributor Bernd Struben does not own shares of Sonic Healthcare Limited.

Sebastian Bowen: BetaShares Nasdaq 100 ETF (ASX: NDQ)

This exchange-traded fund (ETF) from BetaShares tracks the NASDAQ-100 (NASDAQ: NDX). The NASDAQ-100 is an index that includes most of the largest tech companies over in the United States, including the famous FAANG tech stocks.

The Nasdaq has been falling for a few weeks now, so much so that it’s starting to look like a mini-correction is occurring. Increasing bond yields and a rising Aussie dollar are contributing to the downward pressure here.

Similarly, as at the time of writing, NDQ has also shed more than 8% of its value over the past two weeks. This could present an opportunity to take a closer look at this ETF which, until last month, had been consistently reaching new heights.

Motley Fool contributor Sebastian Bowen does not own units of BetaShares Nasdaq 100 ETF.

Brendon Lau: Sandfire Resources Ltd (ASX: SFR)

The copper miner has lagged behind some of its peers, such as OZ Minerals Limited (ASX: OZL), but could be poised to play catch up. Shaw and Partners described Sandfire’s half-year results as “very, very solid” and is recommending it as a Buy.

Furthermore, inflation fears that are rattling markets could provide tailwinds for ASX shares like Sandfire since commodities, such as copper, tend to be good inflation hedges. Another possible longer-term tailwind for copper producers is the transition to a low carbon economy that will drive demand for copper.

Motley Fool contributor Brendon Lau owns shares of Sandfire Resources Ltd.

James Mickleboro: Appen Ltd (ASX: APX)

February was a disappointing month for the Appen share price. Concerns over increasing competition in the artificial intelligence data services market and a full year result that fell short of expectations led to a sharp pullback for Appen shares.

While this is disappointing, it may have created a buying opportunity for investors in March. According to a note out of Ord Minnett, its analysts have just upgraded this ASX share to a Buy rating with a $24.75 price target. This represents a 48% upside to the current Appen share price at the time of writing.

Ord Minnett believes Appen’s long term outlook is positive due to the global trend of increasing investment in artificial intelligence.

Motley Fool contributor James Mickleboro does not own shares of Appen Ltd.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, Ramsay Health Care Limited, and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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