Is your ASX share portfolio lacking in Christmas cheer? Perhaps you're hoping some sparkly new additions to your holdings will make for many happy returns in 2023.
Or, maybe you're just keen to jump aboard the possible 'Santa Rally', if ASX share prices do, indeed, enjoy a traditional festive boost in December.
For their thoughts on which companies should be on your wish list, we asked our Foolish contributors to make a list and check it twice.
These are the ASX shares they reckon will help make for a merry investment portfolio:
8 best ASX shares for December 2022 (smallest to largest)
- Shaver Shop Group Ltd (ASX: SSG), $145.42 million
- Renascor Resources Ltd (ASX: RNU), $635.68 million
- Lovisa Holdings Ltd (ASX: LOV), $2.53 billion
- JB Hi-Fi Limited (ASX: JBH), $4.89 billion
- Carsales.com Ltd (ASX: CAR), $7.76 billion
- Xero Limited (ASX: XRO), $10.44 billion
- Mineral Resources Limited (ASX: MIN), $15.9 billion
- Brambles Limited (ASX: BXB), $16.69 billion
(Market capitalisations as of 30 November 2022)
Why our Foolish writers love these ASX shares
Shaver Shop Group Ltd
What it does: Shaver Shop operates a network of shops across Australia and New Zealand as well as an established online channel. It's a speciality retailer of male and female personal grooming products and also sells products relating to oral care, hair care, massage, air treatment, and beauty.
By Tristan Harrison: According to Shaver Shop, it operates in a sector with a $10 billion total addressable market. By 2026, this market is forecast to grow to $12 billion. Furthermore, major brands stocked by Shaver Shop release new products every year, giving the ASX company more opportunities to sell the latest high-tech products.
Shaver Shop is planning to continue growing its store network, increase its range, and grow its contribution from exclusive products. Currently, more than 50% of sales and around 60% of gross profit come from the company's exclusive lines.
FY23 sales to 6 November 2022 saw total sales growth of 13% year over year, with gross profit margins "consistently up" on the prior year.
Shaver Shop shares are valued at just seven times FY24's estimated earnings with a projected FY24 grossed-up dividend yield of 14.1%.
Motley Fool contributor Tristan Harrison does not own shares in Shaver Shop Group Ltd.
Renascor Resources Ltd
What it does: Renascor engages in the exploration of minerals such as graphite, as well metals including gold and copper, among others. It has projects located within South Australia.
By Matthew Farley: Renascor has been announcing some positive developments of late. These included the company forecasting strong demand for its purified spherical graphite product.
The materials explorer also recently received government approval to move ahead with plans for its Siviour Mine and Concentrator. According to Renascor, this brings it "another key step closer to becoming a producer of 100% Australian-made Purified Spherical Graphite".
Once fully operational, the company has the potential to produce up to 150,000 tonnes of graphite concentrates per annum.
Despite some recent positive momentum, it should be noted that Renascor is currently unprofitable. The company was running at a $1.5 million loss for the trailing 12 months ending 30 June 2022.
Loss-making companies are generally much riskier investments than those consistently generating earnings and profit, so caution should be exercised before jumping in. But for those who are prepared to carry the risk, I believe Renascor could be a speculative ASX investment worth considering.
Motley Fool contributor Matthew Farley does not own shares in Renascor Resources Ltd.
Lovisa Holdings Ltd
What it does: Lovisa is a fashion jewellery retailer and, increasingly, a shopping centre staple. After starting out with a single Sydney store in 2010, Lovisa stores can now be found in 25 countries around the globe.
By Brooke Cooper: 'Tis the season for sparkles, whether they be lights in trees, bubbles in glasses, or shiny new trinkets. December has also turned my attention to retailer of sparkly things, Lovisa.
The company has been doing particularly well this year. It was added to the S&P/ASX 200 Index (ASX: XJO), has doubled its full-year profits, and most recently announced a strong start to this fiscal year.
It's also been growing its international footprint and dividends, increasing the latter by 95% in financial year 2022.
And the future could be even brighter for the stock. UBS tips it to rise another 21% to $29, slapping it with a buy rating.
Motley Fool contributor Brooke Cooper does not own shares in Lovisa Holdings Ltd.
JB Hi-Fi Limited
What it does: JB Hi-Fi is a dominant retailer of electronics, home appliances and other consumables. Customers can choose from a wide range of goods at a JB Hi-Fi store, including mobile phones, computers and other tech, vinyl records, DVDs, televisions, refrigerators, and espresso machines.
By Sebastian Bowen: Chances are at least some readers will be heading to a JB Hi-Fi store sometime this month, so we have a fitting choice for the festive season.
I believe JB is one of the best-run retailers in the country. It has made an art of effortlessly pivoting to keep ahead of consumer trends, which explains why it sells more TVs than hi-fi equipment these days.
JB's share price has taken a hit over this year. And yet the company delivered an impressive set of full-year results back in August, reporting a 7.7% rise in net profits and a 52.8% lift in online sales.
With an earnings multiple under 10 and a fully franked dividend yield over 7%, I think this ASX 200 retail share is the perfect stocking stuffer this December.
Motley Fool contributor Sebastian Bowen does not own shares in JB Hi-Fi Limited.
Carsales.com Ltd
What it does: When it comes to buying or selling a car, there's no doubt that carsales.com is one of Australia's go-to websites. In fact, it's ranked number one in Australia under the vehicles category according to Similarweb, boasting 15.1 million total site visits last month. The online classifieds company provides a digital marketplace for new and used cars in Australia and internationally.
By Mitchell Lawler: The Carsales share price has been on the up and up since last month, rallying by more than 18%. Yet, the revved-up valuation still remains 11% discounted compared to where it was situated at the end of 2021.
I'm bullish on Carsales' future growth potential as it acquires the remaining 51% of US-based Trader Interactive. This move expands the company's exposure to international markets, reduces its reliance on Australian operations, and opens the door to recreational vehicles and power sports consumers (non-automotive).
I believe the sheer size of the US non-automotive market – double Australia's automotive market – is a desirable proposition. This could ultimately provide a greater runway for growth over the coming decade.
Motley Fool contributor Mitchell Lawler does not own shares in Carsales.com Ltd.
Xero Limited
What it does: Xero provides a cloud-based accounting software platform that connects small business owners with their numbers, their banks, and their advisors. It has 3.5 million subscribers and is a leader in cloud accounting across New Zealand, Australia, and the United Kingdom.
By James Mickleboro: With the Xero share price losing more than half its value in 2022, I think it is trading at a very attractive level for patient long-term investors. This is because I believe Xero is well-placed to continue its solid growth over the next decade, thanks to the quality of its platform, the structural shift to the cloud, and its significant global opportunity.
At the end of the first half of FY 2023, Xero had amassed 3.5 million subscribers with a lifetime value of NZ$13 billion. The former compares to its total addressable market of 45 million subscribers globally. In addition, the company continues to squeeze more dollars out of each subscriber with price increases and its growing app ecosystem.
Goldman Sachs appears to agree. It currently has a buy rating and $115 price target on its shares.
Motley Fool contributor James Mickleboro owns shares in Xero Limited.
Mineral Resources Limited
What it does: Mineral Resources is a diversified mining and mining services company. It has four business branches — iron ore, energy (gas), lithium, and mining services like crushing (in fact, it's the world's largest crushing contractor).
By Bronwyn Allen: I like the business diversity in this ASX mining share. Mineral Resources doesn't just dig stuff up; it provides services to other miners. What it does dig up are some of the world's hottest commodities today – iron ore, lithium, and gas.
I believe the company's lithium business is especially attractive. Mineral Resources is a global top-five lithium producer, and now it's investing heavily in the refining space. Electric vehicle (EV) pioneer Elon Musk describes refining as "like minting money" because it's refined lithium that is required in EV batteries and demand is sky-high.
Mineral Resources owns a stake in two of Australia's largest hard-rock lithium mines. Its partners are Chinese lithium giant Ganfeng Lithium Group Co Ltd (SHE: 002460) and US lithium behemoth Albemarle Corporation (NYSE: ALB).
It commands a 29% market share of the world's hard-rock supply. This company is an amazing growth story. It was listed on the ASX in 2006 with a market capitalisation of $100 million. Today it's worth $16 billion. It claims to have delivered the second-highest total shareholder return (TSR) growth of the ASX 200, at 30% per annum since listing. It's also increased its fully-franked dividends by 20% per annum for the past decade.
Today, it has a lot of broker support. Goldman Sachs says buy and has a $96 share price target. It reckons Mineral Resources will triple its earnings before interest, tax, depreciation and amortisation (EBITDA) in FY23. Macquarie says the company is valued at only four times its FY24 estimated earnings and could pay a grossed-up dividend yield of as much as 15.5% in FY24.
Motley Fool contributor Bronwyn Allen does not own shares in Mineral Resources Limited.
Brambles Limited
What it does: Brambles is a global transport and logistics company with operations in 60 countries and a market cap north of $16.5 billion. Its pallets and containers are used to transport goods across the world.
By Bernd Struben: With inflation and interest rates likely to remain elevated in 2023, I like the outlook for companies with strong balance sheets that are able to pass on higher costs to their customers. And I believe Brambles ticks that box nicely.
The analysts at Perpetual recently noted, "The transport and logistics company has been able to use its considerable pricing power and clout in the market as insulation from inflationary costs, while also being disciplined in recovering costs."
Despite the skyrocketing price of timber adding US$470 million to its pallet costs, Brambles achieved 14% year-on-year profit growth in 2021-22. The Brambles share price has gained 18% over 12 months. The stock pays a 2.7% dividend yield, partly franked.
Motley Fool contributor Bernd Struben does not own shares in Brambles Limited.
