Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?

We peer into five ASX investment opportunities as mentioned by The Motley Fool’s chief investment officer…

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The Motley Fool Australia’s chief investment officer (CIO), Scott Phillips recently shared his top five ASX shares for 2022. These potential investment opportunities are different in what they offer, though all of them have made their way onto Phillips’ radar.

In discussion with Gemma Dale of the National Australia Bank Ltd. (ASX: NAB), Phillips provided an overview of each ASX opportunity. This followed an earlier conversation about an ASX share that The Motley Fool’s CIO plans to hold forever.

Let’s take a closer look at each of the potential investments mentioned.

5 ASX shares catching Scott Phillips’ eye in 2022

Adore Beauty Group Ltd (ASX: ABY)

The first ASX share making Phillips’ top five is Adore Beauty — an online retailer of beauty and skincare products. While the company’s share price might be down 19% in the last year, the astute investor explained why the business looks attractive.

Phillips said:

They have done a really fantastic job in providing a great website; a really good community; a really fantastic customer service experience, including the fabled Tim Tam in every order… It’s a company that has been going from strength to strength.

Recently, analysts over at UBS put a price target of $6 on Adore Beauty shares. This would suggest a potential upside of 39.5% from today’s current price.

Kogan.com Ltd (ASX: KGN)

Another beaten-down ASX share found itself among Phillips’ recent pick of the bunch for 2022. The Australian and New Zealand e-commerce competitor has plummeted 58% over a rough 12-month stretch for online retail. Investors have shied away from Kogan since the COVID-19 vaccine’s approval.

Commenting on the potential inside Kogan shares, Scott Phillips noted:

A little bit like Adore, Kogan has been growing top-line sales at 20 to 30 percent per annum for years and years. The challenger for shareholders right now is: even at the current share price, if it can keep growing those sales at even a moderately similar rate for a small to medium amount of time, these shares in my view are cheap.

For reference, Credit Suisse currently holds a ‘buy’ rating on the Kogan share price. Likewise, the broker has a $13.88 price target on this ASX share. At the time of writing, the e-commerce company is going for $8.24 per share.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Switching it up, the Nasdaq 100 exchange-traded fund (ETF) made its way into Phillips’ top five picks. While it may not be an ASX share, per se, it is an investment listed on the ASX nonetheless. Another difference is the fact that this pick provides exposure to companies in the United States — specifically the top 100 in the Nasdaq index.

I think the Nasdaq ETF is a really, really great way to get one-click access to massive numbers of great US businesses with really bright futures. You get all of that diversification benefit for free.

Unlike the first two opportunities, the Nasdaq 100 ETF is positive when looking at its performance over the past year. Investors of this ETF have captured a 24.8% return if they have stuck it out for the last 12 months.

NIB Holdings Limited (ASX: NHF)

Another ASX share in the green on the list is the private health insurer, NIB Holdings. This company has managed to cut through the volatility and give shareholders a solid 20.9% return during the year gone by. Although Phillips admits that NIB operates in a tough industry, he still sees reason to potentially pick up a parcel in this company.

Notably, the chief investment officer highlights that NIB has gradually been chipping away at the market share of its peers.

In addition, the insurer has been acquiring a string of insurance providers that operate in industries that are less regulated. For example, travel insurance and insurance for incoming students for study.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, the last ASX share squeezing its way into the top five picks for 2022 is Treasury Wine Estates. This is a global winemaking and distribution business, boasting renowned labels including Penfolds, Wolf Blass, and 19 Crimes.

Out of all the investment opportunities on this list, Treasury Wines has performed the best in the last year — rising 34% — despite impacts from China tariffs on the Australian winemaker.

In explaining the case for this company, Phillips said:

I think Treasury is doing a really good job of executing on a difficult business in a very clever way. I think the shares are not super-cheap right now. But I think you’re getting a really high-quality business, super recognisable brands, and great brand value in those brands

Lastly, Citi has a price target of $13.80 on Treasury Wine Estates.

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Returns As of 16th August 2021

Motley Fool contributor Scott Phillips owns Adore Beauty Group Limited, BETANASDAQ ETF UNITS, Kogan.com ltd, NIB Holdings Limited, and Treasury Wine Estates Limited. Motley Fool contributor Mitchell Lawler owns shares in Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited, NIB Holdings Limited, and Treasury Wine Estates Limited. 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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