2 top ASX shares rated as buys this week

ResMed Inc. (ASX:RMD) and this ASX share could be top options for investors this month. Here’s why they are rated as buys…

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A man with a yellow background makes an annoncement, indicating share price changes on the ASX

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There are a lot of options for investors on the Australian share market. To narrow things down, I have picked out two ASX shares that have been tipped as buys this month.

Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

With the shares of Australia’s leading online beauty retailer losing half of their value since their IPO, they could be well worth a closer look today.

That decline has been driven by a selloff of ecommerce shares, weakness in the tech sector, and concerns over the valuations of high PE stocks.

A note out of Morgan Stanley last week reveals that its analysts believe the selloff has created a buying opportunity. The broker has an overweight rating and $5.00 price target on its shares.

While it acknowledges that the next six months could be tough due to the cycling of significant sales growth from a year earlier, it remains positive on the long term. Particularly given how Adore Beauty is the leader in a structural growth market.

ResMed Inc. (ASX: RMD)

Another ASX share to look at is ResMed. It is a sleep treatment-focused medical device company that has been growing at a consistently strong rate for years.

This has been driven by its industry-leading products, growing software business, and the increasing awareness of sleep disorders. Pleasingly, the company is just about to release a new CPAP device, AirSense 11.

It has been tipped as a key driver of growth in the coming years and is expected to lead to users of older devices upgrading for better outcomes.

One broker that is a fan of the company is Credit Suisse. Earlier this week it retained its outperform rating and $29.00 price target on the company’s shares.

It has suggested that around a fifth of machines bought between FY 2015 and FY 2019 could be upgraded to the new technology.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended ResMed. 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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