Are you looking for some new additions to your portfolio? Then you might want to consider the two fantastic ASX shares named below.
They could be among the best shares available to investors on the Australian share market and capable of generating strong returns for investors over the next decade. Here’s why they might be five-star stocks:
Altium Limited (ASX: ALU)
The first five-star stock to consider buying is Altium. It is a leading electronic design software provider which has exposure to the rapidly growing Internet of Things and artificial intelligence markets. As these markets are underpinning the proliferation of electronic devices globally, demand for software subscriptions looks set to increase materially over the next decade.
In addition to this, Altium’s other businesses, such as workflow solution platform NEXUS and electronic parts search engine Octopart, are supporting it growth and have sizeable market opportunities of their own. A testament to the quality of NEXUS is that it counts Tesla and SpaceX as customers.
Given the favourable industry tailwinds and its leadership position, Altium appears well-placed to achieve its revenue target of US$500 million in FY 2025/26. This will be more than double what it expects to achieve in FY 2021.
Analysts at Morgan Stanley are positive on the company and have an overweight rating and $37.00 price target on its shares.
Another five-star stock to consider is CSL. This biotherapeutics giant is easily one of the highest quality companies that Australia has ever produced.
When it was founded all the way back in 1916 as the Commonwealth Serum Laboratories, the company was aiming to service the needs of a nation isolated by war. Since then it has become a global giant with a portfolio of life-saving therapies and vaccines.
In fact, that portfolio continues to grow thanks to the company’s investment in research and development. Each year CSL invests somewhere in the region of 10% to 12% of its sales revenue back into its these activities. This helps to ensure that CSL is at the forefront of innovation in the industry.
And while the pandemic has negatively impacted its CSL Behring business, some of this is being offset by increased demand for flu vaccines from its Seqirus business.
Once the pandemic passes and plasma collection headwinds ease, both sides of the business will be pulling together again. Combined with potential launches of new and lucrative therapies, the future looks bright for CSL.
Last month Credit Suisse upgraded CSL’s shares to an outperform rating with a $315.00 price target.
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
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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