Top ASX shares to buy in January 2022

Made some new-year’s investing resolutions? Here are some expert stock picks to consider inviting to the party.

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With 2021 now officially behind us (at long last!), we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in January. And, in case you missed it, don’t forget to also check out our coverage of which stocks those in the know are predicting will do great things in 2022.

James Mickleboro: Westpac Banking Corp (ASX: WBC)

This banking giant could be a top option for investors in January after a significant share-price pullback over the previous two months. That decline has been driven by the release of Westpac’s full-year results, which revealed a much weaker than expected margin outlook due largely to aggressive home loan competition. In addition to this, doubts over the bank’s cost cutting plans have weighed heavily on investor sentiment.

However, the team at Morgans is confident in Westpac’s ability to cut its cost base down to $8 billion by FY 2024. In light of this, the broker sees a lot of value in the shares of Australia’s oldest bank at the current level and has put an ‘add’ rating and $29.50 price target on them. Based on the Westpac share price of $21.35 at Friday’s close, this implies potential upside of around 38%.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corp.

Aaron Teboneras: Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)

Listed for more than 108 years, Soul Patts (as it’s commonly referred to) is the second-oldest company on the ASX. The Australian investment house has a $9.5 billion portfolio of ASX shares in industries such as natural resources, building materials, telecommunications, retail, agriculture, property equity, investments, and corporate advisory.

Major share holdings include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), and New Hope Corporation Limited (ASX: NHC).

Soul Patts’ broad asset diversification has helped it ride out economic crises in the past. The company has rewarded shareholders with dividends for the last 40 years and has increased its dividend payments every year since 2000.

At market close on Friday, the Soul Patts share price was trading at $29.97.

Motley Fool contributor Aaron Teboneras does not own shares in Washington H. Soul Pattinson & Co. Ltd.

Sebastian Bowen: Dusk Group Ltd (ASX: DSK)

Dusk could be a small-cap ASX share to check out this month. The company is in the business of selling candles, oils, fragrances, and other homely accessories, which it has been selling in record volumes over the past year. Dusk also recently announced the acquisition of Eroma, which has the potential to boost its online business.

Shareholders will be watching with interest as to whether the company can successfully execute on its growth plans for 2022. As it stands today, Dusk is also offering a fully franked dividend yield of more than 6% to keep investors company while they wait. The Dusk share priced closed at $3.17 on Friday.

Motley Fool contributor Sebastian Bowen owns shares of Dusk Group Ltd.

Mitchell Lawler: Ltd (ASX: KGN)

The e-commerce company has suffered a brutal selloff over the past 12 months following inventory management issues.

Due to excessive inventory levels, Kogan has been incurring higher costs associated with housing the physical goods. However, investors are hopeful that a good Christmas and Boxing Day shopping period will have leaned out the company’s inventory.

Additionally, the founder-led business is now aspiring to achieve more than $3 billion in annual gross sales by FY2026. This ambitious goal would require Kogan to grow gross sales by 20% at a compound annual rate.

Credit Suisse holds a price target of $13.88 on Kogan shares. This represents potential upside of around 56.4% based on the Kogan share price of $8.87 at Friday’s close.

Motley Fool contributor Mitchell Lawler own shares of Ltd.

Tristan Harrison: Adairs Ltd (ASX: ADH)

Adairs is a leading homewares and furniture retailer.

The company recently acquired Focus on Furniture, which offers growth potential across both store rollouts and e-commerce. The acquisition is expected to boost earnings per share (EPS) by double digits in FY23.

Adairs plans to open more larger stores, which are substantially more profitable than its smaller ones. The business also continues to grow its online sales, which come with high profit margins.

According to Commsec, Adairs shares are valued at 9x FY23’s estimated earnings with a projected grossed-up dividend yield of around 11%. The Adairs share price was $4.01 at the close of trade on Friday.

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

Zach Bristow: Immutep Ltd (ASX: IMM)

Immutep is a global biotech company focused on the development of products for the treatment of cancer and autoimmune diseases. Immutep has a number of products in its pipeline, including lead product candidate, ‘efti’ or ‘IMP321’. Efti has been developed around a particular cell activator currently being explored in cancer and infectious disease research.

Analysts at Wilsons note that the ‘LAG-3’ protein technology that Immutep is focused on has dramatically changed how we treat cancer, as well as the outlook for patients with the disease. Wilsons reckons that LAG-3 could see its first drug approval in 2022 – a potentially significant catalyst for Immutep.

Additionally, Jefferies recently initiated coverage on Immutep shares with a ‘buy’ recommendation and $1 per share valuation. At Friday’s close, the Immutep share price was sitting at 49 cents apiece.

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

Brendon Lau: Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel share price could outperform this month, despite Omicron uncertainty, after Morgan Stanley recently reiterated its ‘overweight’ recommendation. The broker thinks there is more upside after Corporate Travel lobbed a bid for Helloworld Travel Ltd (ASX: HLO) for around $175 million.

Morgan Stanley noted that Corporate Travel’s Australia and New Zealand business peaked in the 2019 calendar year (CY19). Adding Hello World’s CY19 total transaction value of around $1.1 billion provides meaningful change in scale. The broker’s 12-month price target on Corporate Travel shares is $23.50. The travel operator’s shares closed Friday’s session at $22.01.

Motley Fool contributor Brendon Lau does not own shares of Corporate Travel Management Ltd.

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 over ten 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 January 12th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO, Brickworks, Helloworld Limited, and ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO, Brickworks, Helloworld Limited, ltd, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Dusk Group Limited, TPG Telecom Limited, and Westpac Banking Corporation. 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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