With what could be considered the Olympics of the ASX (earnings season) about to kick off, August is a hotly anticipated month on the investment calendar. In hoping to uncover some possible gold, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in August.
Here is what the team have come up with…
Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a digital giving payments business, focusing on US churches. It also develops church management software.
The business has seen a large increase in donations during the COVID-19 period, though Pushpay said it hasn’t seen a return to non-electronic donating with the US opening up. There has seemingly been a permanent shift among many donors to digital donations.
Pushpay is seeing operating leverage and expects more to come as it grows. FY21 saw operating revenue rise 40%, but net profit grew 95% and operating cash flow surged 145%.
The Pushpay share price is currently valued at around 28x FY23’s estimated earnings.
Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd
Bernd Struben: Marley Spoon AG`s (ASX: MMM)
My top pick for August is meal kit maker and global grocery provider, Marley Spoon.
Marley Spoon has operations across Australia, the United States and Europe. With the onset of the global pandemic, demand for its meal kit business soared. And once these trends take hold, they often stick for the long-term.
Now, this may be a bit like catching a falling knife. The Marley Spoon share price fell some 22% on Friday following the release of the company’s second quarter results. However, Marley Spoon confirmed its FY21 net revenue guidance, expecting revenue growth of 30–35% year-on-year.
With last week’s sharp selloff, August could see a healthy rebound.
Motley Fool contributor Bernd Struben does not own shares in Marley Spoon.
Mitchell Lawler: Super Retail Group Ltd (ASX: SUL)
The ASX share making its way into my top pick for August is auto, outdoor, and sports retailer – Super Retail Group. Many would know the company from its more than 670 stores under the banners Supercheap Auto, Rebel, BCF, and Macpac.
Super Retail Group revealed like-for-like (LFL) sales growth of 28% for the first 44 weeks of FY21 in a trading update provided in May.
The company is slated to report earnings on 18 August 2021. If the recent boom in used car sales is anything to go by, its FY21 results could be impressive.
Motley Fool contributor Mitchell Lawler does not own shares of Super Retail Group.
James Mickleboro: Hipages Group Holdings Ltd (ASX: HPG)
Hipages is Australia’s largest online tradie marketplace and Software-as-a-Service provider, connecting tradies with residential and commercial consumers.
Last week it released its fourth quarter update and revealed strong growth across all key metrics. This led to Hipages exceeding its upgraded full year revenue guidance with a 22% year on year jump to $55.8 million.
Goldman Sachs was impressed with its performance and put a buy rating and $4.10 price target on its shares. This compares to the current Hipages share price of $3.20. The broker is forecasting ~20% revenue growth per annum and even quicker operating earnings growth over the next three years.
Motley Fool contributor James Mickleboro does not own shares of Hipages.
Sebastian Bowen: Telstra Corporation Ltd (ASX: TLS)
My August top stock pick is ASX 200 telco Telstra. Telstra has had a very impressive run in 2021 so far, up more than 25% year to date.
However, Telstra’s dividends are still looking pretty good against many ASX 200 shares as of this week. Its annual 16 cents per share dividend amounts to a raw yield of 4.23% on recent pricing, or 6.05% grossed-up with Telstra’s full franking.
What’s more, there could still be plenty of gas left in the tank. Broker Goldman Sachs currently has a buy recommendation on Telstra shares, with a 12-month share price target of $4.20 a share, a potential upside of 11% from here.
Motley Fool contributor Sebastian Bowen owns shares of Telstra.