Top ASX shares to buy in September 2023

Ready to spring some bright new stocks into your ASX portfolios?

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Spring has sprung, and with this bright and beautiful new season, we bid an official farewell to the August onslaught of company earnings reports and, of course, the chilly days of winter.

In the hopes that we can all look forward to brighter days ahead, we asked our Foolish contributors for their thoughts on which ASX shares they reckon are ready to flourish.

Here is what the team came up with:

6 best ASX shares for September 2023 (smallest to largest)

  • Betashares Global Cybersecurity ETF (ASX: HACK), $772.65 million
  • PWR Holdings Ltd (ASX: PWH), $1.09 billion
  • GQG Partners Inc (ASX: GQG), $4.58 billion
  • Northern Star Resources Ltd (ASX: NST), $13.72 billion
  • Mineral Resources Ltd (ASX: MIN), $13.91 billion
  • Xero Limited (ASX: XRO) $18.94 billion

(Market capitalisations as of market close 31 August 2023).

Why our Foolish writers love these ASX stocks

Betashares Global Cybersecurity ETF

What it does:  This exchange-traded fund (ETF) provides ASX investors access to a portfolio of global companies that all specialise in providing cybersecurity products and services.

By Sebastian Bowen: The BetaShares Global Cybersecurity ETF has been drawing my eye of late. For one, I think cybersecurity is one of the surest bets when it comes to future trends, as individuals, businesses and governments are facing an ever-rising onslaught of threats in the virtual space.

This aptly-tickered HACK ETF gives ASX investors a piece of the action when it comes to the leaders in this space, which is decidedly lacking on the ASX itself. Within this ETF's portfolio, you'll find such leading companies as Okta, CrowdStrike, and Fortinet.

This ETF also has some significant runs on the board too. As of 31 July, it has returned an average of 15.31% per annum over the past five years.

Motley Fool contributor Sebastian Bowen does not own shares in the Betashares Global Cybersecurity ETF.

PWR Holdings Ltd

What it does: Take a stroll down the aisles of your local Repco, and you'll come across the products of this founder-led company. PWR is known for its high-performance cooling solutions sold to automotive enthusiasts. However, the company also designs and manufactures thermal management systems for various markets, including electric vehicles and defence applications.

By Mitchell Lawler: In April, I shared my 5 reasons why I think PWR shares are an unmissable ASX buy in April article. The company has since released its 2023 full-year figures, and I can confidently say that the result served as further evidence of the reasons outlined in April. 

Yet, some analysts highlighted PWR's EBITDA reduction – slipping from 27.3% to 24.6%. The margin pressure was said to be from rising labour costs. However, prices for some of its radiators have increased by as much as 14% since April. 

Since revenue still rose 17.1% year on year in light of price increases, I believe the company can maintain strong margins as it enjoys pricing power.

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

GQG Partners Inc

What it does: GQG is a United States-based fund manager that offers different investment strategies including international shares, global shares, emerging market shares, and US shares.

By Tristan Harrison: GQG's medium-term outlook seems very promising to me.

Nearly all of its earnings come from management fees rather than performance fees, so funds under management (FUM) growth is very beneficial. FY22 saw an average FUM of US$88.8 billion, while the first half of FY23 delivered average FUM of US$95.2 billion. By July 2023, FUM had risen to US$108.1 billion. If it doesn't fall heavily, the next 12 months look good for earnings (and dividend) growth.

In the first seven months of 2023, the fund manager has experienced net inflows of $6 billion, a useful tailwind when added to the FUM growth. Its major investment strategies have all materially outperformed their benchmarks over the last five years.

The company has committed to pay out 90% of its distributable earnings as a dividend, which could see a 10% dividend yield in 2024, according to Commsec. That'd be a good return in itself.

Motley Fool contributor Tristan Harrison owns shares of GQG Partners Inc.

Northern Star Resources Ltd

What it does: Northern Star explores for and produces gold. The company's mining operations are in the Northern Territory, Western Australia, and the US state of Alaska. 

By Bernd Struben: Northern Star shares have gained 52% over the past 12 months.

Atop its high-quality mines and top management, Northern Star has benefited from the 12% yearly increase in the gold price, currently trading for US$1,937 an ounce.

This helped the miner deliver a 9% year-on-year increase in FY23 revenue to $4.1 billion. Northern Star also reported record cash earnings of $1.2 billion. And management is forecasting gold sales to increase by 2.4% to 12.0% in FY24. Costs are expected to remain stable.

I'm also expecting another big uptick in the gold price. The haven asset remains in strong demand amid global geopolitical uncertainty. And gold should benefit as central banks approach an end to rate hikes.

JP Morgan Chase has an average gold price target of US$2,175 per ounce for Q4 2024. That's 12% above the current price, the same year-on-year increase that spurred the Northern Star share price over the past year. The stock also pays partly franked dividends and trades at a yield of 2.2%.

Motley Fool contributor Bernd Struben does not own shares of Northern Star Resources Ltd.

Mineral Resources Ltd

What it does: Mineral Resources is a diversified Australian mining company producing iron ore, lithium, and energy (gas), and offering mining services. 

By Bronwyn Allen: Mineral Resources is a blue-chip ASX 200 mining share with a great mix of divisions.

The question is, when to buy? We know that most commodity prices are going to fall over the next five years.

Already, the Mineral Resources share price – currently $70.72 – has fallen 18% over six months amid lower demand from China. Should we wait to buy?

Following the company's full-year report, the brokers updated their 12-month share price targets. They are as follows: Goldman Sachs $53, CLSA $77, Citi $79, and Morgans $84.

Hmmmm … the timing of any purchase requires some mulling! 

Motley Fool contributor Bronwyn Allen does not own shares of Mineral Resources Ltd. 

Xero Limited

What it does: Xero is a leading online accounting and business services platform provider to small businesses across the globe. 

By James Mickleboro: Although its shares have been on fire over the last 12 months, I still think Xero could be a top option for investors in September. That's because of the company's strong performance this year and its significant long-term growth opportunity.

For example, Goldman Sachs highlights that Xero has a total addressable market of 100 million small businesses globally, representing a NZ$76 billion opportunity. In comparison, Xero currently has 3.7 million subscribers with an estimated lifetime value of NZ$13.4 billion.

For this reason, Goldman has a conviction buy rating and $147.00 price target on Xero shares.

Motley Fool contributor James Mickleboro owns shares of Xero Limited.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended CrowdStrike, Fortinet, Okta, and Xero. The Motley Fool Australia has recommended CrowdStrike, Okta, PWR Holdings, and Xero. 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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