Top ASX shares to buy in July 2021

Thinking of adding to your portfolio in celebration of the new financial year? These are some of the ASX shares experts reckon are worth a look at in July.

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With the new financial year now upon us, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in July.

Here is what the team have come up with…

Tristan Harrison: Adairs Ltd (ASX: ADH) 

Adairs is a homewares and furnishings ASX share.  

It has been one of several companies that have seen a high level of demand during the COVID-19 pandemic as people spend more on their homes.  

The business has plans for more profit growth with a focus on online sales, strong margins, growth of the Mocka brand in Australia, and a new national distribution centre. That new distribution centre is expected to deliver annual savings of approximately $3.5 million per annum. 

According to Commsec, Adairs shares are valued at 12x FY22’s estimated earnings with a forecast FY21 grossed-up dividend yield of 8.8%. The Adairs share price has gained around 29% so far in 2021.

Motley Fool contributor Tristan Harrison does not own shares of Adairs Ltd

Bernd Struben: Accent Group Ltd (ASX: AX1)

My top pick for July is sports and footwear retailer Accent Group. Accent has delivered market-beating share price growth over the past 12 months (up by around 100%), as well as year to date (up by around 21%). Atop capital growth, Accent pays an annual dividend yield of approximately 4.3%, fully franked.

Analysts at financial advisory firm Bell Potter have a positive outlook for Accent. Bell Potter has a buy rating on Accent shares, with a price target of $3.30 per share. That’s around 18% higher than the $2.79 per share Accent is currently trading at. At today’s share price, the retail conglomerate has a market capitalisation of around $1.5 billion.

Motley Fool contributor Bernd Struben does not own shares of Accent Group.

Sebastian Bowen: Metcash Limited (ASX: MTS)

My ASX share pick for July is grocery and hardware retailer Metcash, the company behind the IGA and Mitre 10 store chains.

Metcash has had a great week so far this week. Monday saw the release of its full-year earnings, which saw pleasing growth in both revenue and profits. It also saw Metcash raise its already-robust dividend by roughly 40%. Investment bank Goldman Sachs is currently bullish on Metcash shares, citing the company’s earnings stability, recent purchase of Total Tools equity, and planned share buybacks.

The broker has a buy rating and a 12-month price target of $3.97 per share for Metcash. The Metcash share price jumped 2.31% on Wednesday to close at $3.99.

Motley Fool contributor Sebastian Bowen does not own shares of Metcash Ltd.

James Mickleboro: Life360 Inc (ASX: 360)

This San Francisco-based app maker could be a share to consider buying in July. Life360’s family-orientated app provides features such as real-time location sharing, crash detection, and messaging to a massive 28 million monthly active users.

The company has also recently strengthened its offering with the acquisition of Jiobit for US$37 million. Management believes the addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.

Morgan Stanley recently initiated coverage on Life360 shares with an overweight rating and an $8.60 price target. The Life360 share price closed Wednesday’s session more than 6% higher at $6.68.

Motley Fool contributor James Mickleboro does not own shares of Life360 Inc.

Brendon Lau: Qube Holdings Ltd (ASX: QUB)

The Qube share price could be one to watch in July after Citigroup highlighted several positive tailwinds that are likely to support the company through FY22.

The volume of cargo moving through Melbourne and Sydney ports has risen and the demand to transport minerals is strong. Further, high soft commodity prices could also add to demand for Qube’s logistics services.

Citi recently upgraded its price target on the Qube share price to $3.61 from $3.57 and says there is upside risk to its forecast. The broker is recommending Qube shares as a Buy.

Motley Fool contributor Brendon Lau does not own shares of Qube Holdings.

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

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO and Life360, Inc. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Accent Group. 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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