Top ASX shares to buy in December 2021

Hoping to unwrap some investment goodies this month?

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With Santa and his elves hard at work in the North Pole, we asked our Foolish contributors to compile a list of some of the ASX shares experts are tipping will deliver some extra Christmas cheer.

Brooke Cooper: Adairs Ltd (ASX: ADH)

Adairs is a speciality retailer of home furnishings with more than 160 stores across Australia and New Zealand. It also boasted more than 950,000 customer sign-ups to its loyalty program, Linen Lovers, as of the end of financial year 2021.

The retailer’s customers continued to be loyal through Australia’s most recent lockdowns. Over the first 16 weeks of this financial year, Adairs’ online sales increased 172% on those of the same period of financial year 2020.

Additionally, Adairs recently announced the acquisition of furniture retailer Focus on Furniture.

The Adairs share price closed Tuesday’s session 2.18% lower at $3.59.

Motley Fool contributor Brooke Cooper does not own shares of Adairs Ltd.

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

Hipages is a technology company focused on creating effortless solutions that help tradies streamline and grow their businesses. These include connecting tradies with residential and commercial consumers through Australia’s largest online tradie marketplace.

Goldman Sachs is very positive on the company and has a buy rating and $4.95 price target on its shares. The broker believes Hipages is well-placed for growth thanks to its huge market opportunity and growing subscription revenues. In respect to the former, Goldman estimates the tradie marketplace’s total addressable market (TAM) is worth $110 billion per year.

The Hipages share price has gained almost 60% so far in 2021.

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

Bernd Struben: Mineral Resources Limited (ASX: MIN)

Mineral Resources is poised to become the largest lithium spodumene producer in Australia once its Wodgina project restarts and becomes fully operational.

According to Katana Asset Management’s Romano Sala Tenna, it’s also the share he’d hold if the market closed for 5 years tomorrow. He says there’s no bigger opportunity in the market today than the global move to electrification, which is driving demand for EV metals like lithium.

Over the last 3 years, Mineral Resources has averaged a return on equity in excess of 20%. Tenna says management has set the company up well for its next level of growth.

The Mineral Resources share price closed Tuesday’s session up 0.6% at $45.26. It has also climbed by around 17% over the past month.

Motley Fool contributor Bernd Struben does not own shares of Mineral Resources Limited.

Aaron Teboneras: Dicker Data Ltd (ASX: DDR) 

Dicker Data shares are often bought by investors seeking frequent and reliable dividends. 

In its third-quarter business update released last month, Dicker Data reported achieving revenue of more than $1.72 billion year to date. This reflects an increase of 16.1% compared to the prior corresponding period ($1.48 billion)

The company rewarded shareholders with a fully-franked dividend of 9 cents per share. Total dividends for the past 12 months have totalled 37.5 cents. This represents a dividend yield of 2.65%, based on the current share price, paid in quarterly instalments. 

Dicker Data has increased its focus on small-to-medium business enterprises over the past year. Specifically, it has targeted distribution agreements in software, high-end enterprise products and those that address the cloud computing environment.

Despite the current global chip shortage saga, the company is experiencing strong demand with a backlog of orders. This is expected to fill in the last quarter of 2021.

At market close on Tuesday, the Dicker Data share price was trading at $14.14, having climbed by around 35% so far this year.

Motley Fool contributor Aaron Teboneras does not own shares of Dicker Data Ltd. 

Mitchell Lawler: Whispir Ltd (ASX: WSP)

The Whispir share price has endured a difficult year in 2021. In specific terms, the global, cloud-based communications company’s shares have fallen from $3.69 to $2.03 over the past 11 months.

The disappointing performance has unfolded despite year-over-year growth in Whispir’s all-important annualised recurring revenue. Similarly, customers increased by 33 to 843 according to Whispir’s first-quarter update for FY22.

Another major positive has been the company’s upgraded full-year guidance for FY22. The announcement indicated an improvement of between 34% and 42% compared to prior estimates. As a result, expected revenue is now between $64 million and $68 million.

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

Sebastian Bowen: Adairs Ltd (ASX: ADH)

The ASX 200 homewares retailer Adairs was a real COVID-winner. This company saw its online channels explode in popularity during the multiple lockdowns Australia has endured for nearly two years. But all signs point to Adairs keeping some of this love in house, helped by its uber-popular Linen Lovers rewards club.

The company also recently announced the acquisition of Focus on Furniture, which management reckons will be immediately accretive to Adairs’ earnings per share (EPS). As it stands today, Adairs is currently boasting a fully-franked dividend yield of over 6% as well.

Motley Fool contributor Sebastian Bowen owns shares of Adairs Ltd.

Tristan Harrison: Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of items like homewares and furniture. It’s rated as a buy by Morgan Stanley, with a price target of $16. The broker reckons the business can get to $1 billion in revenue within five or so years.

The company’s FY21 revenue grew 85% to $326.3 million. Meanwhile, FY22 revenue has “started strongly” with revenue growth of 49% to 27 August 2021.

Management are expecting a number of long-term positives from the company’s growth. These include industry leadership, growing operating leverage and profit margins, better supplier terms, international expansion, and slowing investment in fixed costs. Temple & Webster is currently investing heavily for longer-term growth.

At Tuesday’s close, the Temple & Webster share price was trading 0.65% lower at $10.65. The company’s shares have fallen by around 16% over the past month.

Motley Fool contributor Tristan Harrison does not own shares of Temple & Webster Group Ltd.

Zach Bristow: IGO Ltd (ASX: IGO)

Mining company IGO recently invested in two of the world’s top lithium assets. It has a 25% indirect interest in the Greenbushes mine, touted as the world’s largest, highest-grade lithium mine. IGO has over $600 million in cash on its balance sheet with no debt.

The company is rated as a buy by 65% of analysts covering it, averaging a valuation of around $11 per share. The teams at Credit Suisse, JP Morgan and Jefferies each have it as a buy. Each firm reckons IGO shares are cheap right now on free cash flow yield and earnings multiples.

Tribeca Investment Partners also reckons IGO is poised for upside – based on valuation, financial health and inclusion into several mining/lithium-based exchange-traded funds (ETFs) – and can use its balance sheet to drive more acquisitions.

At the time of writing, the IGO share price is trading at $10.54 after climbing by more than 65% so far this year.

Motley Fool contributor Zach Bristow does not own shares of IGO Ltd.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended ADAIRS FPO, Dicker Data Limited, Hipages Group Holdings Ltd., Temple & Webster Group Ltd, and Whispir Ltd. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Dicker Data Limited. The Motley Fool Australia has recommended Hipages Group Holdings Ltd., Temple & Webster Group Ltd, and Whispir 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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