Top ASX shares to buy in October 2021

Feeling spooked by share market tricks as Halloween draws near? These are some of the ASX shares experts reckon are not so scary in October.

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Looking to celebrate this month with some investment treats? We asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in October.

Tristan Harrison: Volpara Health Technologies Ltd (ASX: VHT) 

Volpara provides software for breast and lung cancer screening, as well as enterprise-wide practice management software. 

Thanks to organic growth and acquisitions, the company has increased its market share to around a third of US women who have breast screenings.

Volpara has a high gross profit margin of 91%. In FY21, the company grew total revenue by 57% to NZ$19.7 million and increased annual recurring revenue by 55% to NZ$27.9 million. Volpara has plans to increase its average return per user (ARPU), including upselling more products to its existing customers.  

Motley Fool contributor Tristan Harrison does not own shares of Volpara Health Technologies Ltd. 

James Mickleboro: Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a growing online platform and software-as-a-service (SaaS) provider. The Hipages platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.

The company was a strong performer in FY 2021, delivering a 27% increase in monthly recurring revenue (MRR) to $5.2 million. This is still only scratching at the surface of its significant market opportunity. Goldman Sachs notes that Hipages currently captures less than 1% of a total $97 billion tradie business spend.

Goldman is very positive on the company’s long-term outlook and has a buy rating and a $4.35 price target on its shares. At the time of writing, the Hipages share price was sitting at $3.57.

Motley Fool contributor James Mickleboro does not own shares of Hipages Group Holdings Ltd.

Sebastian Bowen: Xero Limited (ASX: XRO)

Cloud-based accounting software provider Xero has long been regarded as one of the ASX’s best growth shares. However, the Xero share price hasn’t done much in 2021 so far apart from tread water.

On recent pricing, you can buy Xero for a cheaper share price than you could back in early January. That’s despite this company delivering some healthy growth numbers in its FY21 results, including revenue growth of 18% and a 20% increase in subscribers.

The Xero share price closed Thursday’s session at $139.

Motley Fool contributor Sebastian Bowen does not own shares of Xero Limited.

Bernd Struben: Macquarie Group Ltd (ASX: MQG)

Macquarie provides banking, advisory, investment and fund management services. Macquarie’s 5-year price chart is impressive, trending steadily higher (save the post-pandemic rout in early 2020). In 2021, shares have gained 30%.

Alphinity fund manager Andrew Martin sees more to come. He says Macquarie is “an incredibly adaptable company” which is seeing huge demand for its services. Martin also doesn’t believe the market has properly priced in the company’s exposure to the fast-rising green energy trend. Macquarie develops, funds, and owns green energy assets.

Macquarie has a market cap of approximately $66 billion and pays a dividend yield of 2.6%, 40% franked.

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

Mitchell Lawler: Alcidion Group Ltd (ASX: ALC)

Alcidion provides a range of technology solutions to the healthcare industry. These include Miya Precision, Smartpage, Patientrack, and ExtraMed. These offerings cover the United Kingdom, Australia, and New Zealand, servicing more than 300 hospitals and 60 healthcare organisations.

In August, Alcidion delivered its full-year results for FY21. This contained significant improvements across all notable financial metrics. For example, revenue increased 39% to $25.9 million, while its earnings before interest, tax, depreciation, and amortisation (EBITDA) loss narrowed to $0.5 million.

As elective surgeries return with the surge in COVID-19 vaccination levels, Alcidion could benefit from a demand for management software during the patient influx.

Motley Fool contributor Mitchell Lawler does not own shares of Alcidion Group Ltd.

Sebastian Bowen: BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another investment to consider for October is this exchange-traded fund (ETF). ASIA invests in a basket of Asian technology shares, of which China has the largest share. It currently holds companies like Tencent, Samsung, Alibaba, and Taiwan Semiconductor Manufacturing Company.

This ETF has been caught up in the ructions coming out of the Chinese property sector in recent weeks and is now down around 30% from its all-time high. If the difficulties the Chinese economy is currently facing prove temporary, then this ETF could be worth considering today for a long-term investment.

Motley Fool contributor Sebastian Bowen does not own shares of the BetaShares Asia Technology Tigers ETF

Tristan Harrison: Airtasker Ltd (ASX: ART) 

Airtasker is a community platform business that connects people who have a task that needs doing with people able to do it. Tradie work, cleaning, photography are just some examples of the categories on offer.  

This ASX company has a very high profit margin of 93%. This helps profit grow at a fast pace as revenue grows. FY21 revenue increased by 38%. Airtasker is already cash flow positive, having delivered $5.5 million of operating cash flow in FY21.  

The business is starting to expand in the United Kingdom and the United States with its Zaarly acquisition. It’s rated as a buy by Morgans, with a price target of $1.30. The Airtasker share price closed Thurday at 97 cents.

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

James Mickleboro: Orocobre Limited (ASX: ORE)

Another ASX share to consider in October is Orocobre. It recently completed its merger with Galaxy Resources, which has created a top-five global lithium mining company.

The analysts at Macquarie believe this leaves the merged company, soon to be renamed Allkem, well-positioned to benefit from the increasing demand for lithium from the electric vehicle and renewable energy markets.

Macquarie is very positive on both Orocobre’s outlook and the lithium price outlook. Particularly after recent price rises in the China market. As a result, Macquarie has put an outperform rating and $11.80 price target on its shares. At the time of writing, the Orocobre share price was trading at $8.69.

Motley Fool contributor James Mickleboro owns shares of Orocobre Limited.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd, Hipages Group Holdings Ltd., VOLPARA FPO NZ, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF, Macquarie Group Limited, VOLPARA FPO NZ, and Xero. The Motley Fool Australia has recommended Alcidion Group Ltd. 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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