Best ASX shares to buy in June 2022

Looking to brighten up your portfolio before the end of the financial year with some new ASX shares?

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Last month brought with it pretty frosty conditions for many ASX investors. But, will the storm clouds reveal any silver linings as we approach the end of the financial year in June? For their thoughts, we asked our Foolish contributors to compile a list of the ASX shares they reckon could deliver wealth over the investing rainbow. Here is what the team came up with.

7 best ASX shares for June 2022 (smallest to largest)

  • DroneShield Ltd (ASX: DRO), $95.2 million
  • BrainChip Holdings Ltd (ASX: BRN), $1.95 billion 
  • Corporate Travel Management Ltd (ASX: CTD), $3.23 billion
  • Pro Medicus Limited (ASX: PME), $4.41 billion
  • Domino’s Pizza Enterprises Ltd (ASX: DMP), $5.96 billion
  • Xero Limited (ASX: XRO), $13.35 billion
  • National Australia Bank Ltd (ASX: NAB), $102.23 billion

(Market capitalisations as of 31 May 2022)

Why our Foolish writers love these ASX shares

DroneShield Ltd

What it does: DroneShield develops and sells hardware and software for the detection and disruption of drones.

By Bernd Struben: I believe this small-cap ASX share has significant growth potential. The company’s expanding customer base spans some 100 nations, including the United States, which makes up 40% of its revenue and sales pipelines.

Demand for counter-drone technology was already growing before Russia’s invasion of Ukraine. Since then, DroneShield has received numerous inquiries about its equipment from Ukrainian government agencies. While only one shipment has been sent to Ukraine to date, the country could provide additional future growth avenues.

DroneShield reported a cash balance of $8 million as at 31 March. Its latest quarterly figures showed a 32% year-on-year lift in customer cash receipts. The DroneShield share price has rallied by around 22% in 2022 so far.

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

BrainChip Holdings Ltd

What it does: BrainChip develops software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications.

By Aaron Teboneras: I believe the BrainChip share price is trading in bargain territory after falling by around 12% since the start of last week.

The company is continuing to develop its Akida neuromorphic processor unit hardware product. The Akida chip is designed to think like a human brain and it can be used for a variety of purposes worldwide. These include in the manufacture of smart cars such as the Mercedes EQXX concept car as well as in home automation, unmanned aircraft, medical instruments, cybersecurity, and more.

This broad addressable market provides BrainChip with huge potential to materially grow in the future, particularly given its existing partnership with NASA. BrainChip’s technology reduces the count, size, and power consumption of existing components, which are paramount concerns in spaceflight and aerospace applications

Valued at $1.95 billion, BrainChip is still a relatively emerging, pre-revenue company that is looking to dominate the AI market. Should BrainChip be able to deliver on its potential, I think its share price is extremely attractive at its current price of $1.135.

Motley Fool contributor Aaron Teboneras does not own shares of BrainChip Holdings Ltd.

Corporate Travel Management Ltd

What it does: Corporate Travel Management provides business travel management services.

By Brooke Cooper: The Corporate Travel Management share price has slipped by nearly 14% over the last 30 days despite the company releasing a positive update to the market in early May.

Following a series of acquisitions, Corporate Travel expects its monthly revenue in the current quarter to surpass that of 2019, prior to when the COVID-19 pandemic hit. It also has no debt, a strong cash balance, and is recovering faster than the broader corporate travel sector in its key operating regions.

Morgan Stanley is also optimistic about Corporate Travel shares. The broker has slapped the company’s stock with a $30 price target and a buy rating. The Corporate Travel share price closed Tuesday’s session at $22.17.

Motley Fool contributor Brooke Cooper does not own shares of Corporate Travel Management Ltd.

Pro Medicus Limited

What it does: Pro Medicus is a healthcare imaging software provider to a vast range of medical companies across Australia, North America, and Europe.

By Mitchell Lawler: The Pro Medicus share price has been an ultra-performer over the last decade, with the company’s shares increasing in value by more than 100 times. Yet, growth in the company’s underlying business remains as consistent as ever.

For the 12 months ending December 2021, Pro Medicus increased its revenue by 36% year on year. For reference, this is above its five-year compound annual growth rate of 23.2%. Reassuringly, profit margins are showing continual improvement – now at 47% — suggesting economies of scale are at play.

Analysts at Bell Potter currently have a buy on this company with a $55 price target. This represents a potential 30% upside from the current Pro Medicus share price of $42.13.

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Limited.

Domino’s Pizza Enterprises Ltd 

What it does: Domino’s is a leading pizza chain operator with over 3,200 stores across the ANZ, Asian, and European markets.

By James Mickleboro: I think the recent weakness in the Domino’s share price has created a buying opportunity for investors in June. That weakness, which has seen the share price fall by around 44% in 2022, has been driven by softness in the Japanese market and overall concerns about inflation impacts.

And while these factors could weigh on Domino’s second-half performance, I believe investors should be focusing more on the company’s long-term growth outlook now. This outlook is, arguably, very positive thanks to management’s plan to double its store network in existing markets to 6,650 stores by 2033.

Combined with its strong balance sheet, which could support further acquisitions, this bodes well for the company’s revenue and earnings growth over the next decade.

Motley Fool contributor James Mickleboro does not own shares of Domino’s Pizza Enterprises Ltd.

Xero Limited

What it does: Xero is a global software business that provides subscribers with cloud accounting and business tools.

By Tristan Harrison: I think Xero is one of the highest-quality S&P/ASX 200 Index (ASX: XJO) shares around right now. Furthermore, the almost 40% drop in the Xero share price this year makes it look even more attractive.

The business is growing its global subscriber base, which increased by 19% in FY22 to 3.27 million. And, arguably, targeting a truly global addressable market gives the company a long growth runway.

Xero’s services are also very profitable. Its gross profit margin was 87.3% in FY22, allowing the company to re-invest a lot of new revenue into growth activities.

The company is heavily investing most of its revenue into growth areas like marketing and product development right now. However, over the long-term, Xero is aspiring to reduce how much it spends on these categories which will result in an uplift in profit margins and the bottom line.

Motley Fool contributor Tristan Harrison does not own shares of Xero Limited.

National Australia Bank Ltd

What it does: NAB is one of the big four Aussie banks and commands a significant chunk of the financial products market in Australia.

By Sebastian Bowen: No doubt, NAB is a name and an ASX share that needs little introduction. It’s part of the big-four-banks cohort and holds a prominent position on the ASX 200.

NAB could be worth a look this month as inflation continues to be a defining theme of our current investing climate. Banks are famously inflation-resistant businesses due to their easily adjustable margins.

In addition, NAB’s current fully franked dividend yield is well over 4% (and over 6% grossed-up), meaning inflation is almost covered by this dividend alone. As such, NAB could be worth a look for anyone who is keen to shore up an ASX share portfolio against rising prices in June.

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Ltd.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield Ltd, Pro Medicus Ltd., and Xero. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. and Xero. The Motley Fool Australia has recommended Corporate Travel Management Limited, Dominos Pizza Enterprises Limited, and DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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