Summer nights: 2 ASX shares to buy now as the weather heats up

Morgans likes the look of these stocks as the market prepares for the traditional Santa Rally.

| More on:
A happy woman flies with arms outstretched on her boyfriend's back on the beach at dusk.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The weather is heating up and many experts are tipping the stock market will put a terrible October behind it and rally for Christmas.

But just because the market heads up doesn't mean that all ASX shares will. You still need to be selective about which stocks to buy.

The experts at Morgans had a couple of ideas:

Aussies are about to go on summer holidays

Morgans associate analyst Steven Sassine liked what he saw out of small-cap caravan-sharing platform Camplify Holdings Ltd (ASX: CHL) this week.

"Camplify released its 1Q24 trading update which continued to show the underlying business momentum in what is traditionally a seasonally subdued quarter," Sassine said on the Morgans blog.

"In our view, futures bookings growth also augurs well for a strong summer trading period in the southern hemisphere."

Group gross transaction volume of $41.5 million was a phenomenal 107% rise from a year prior.

"Revenue for 1Q24 was $11.7 million, [up] ~114% on pcp, implying a group global take-rate of 28.2% (vs 27.2% in the pcp)."

Sassine and his team aren't the only ones bullish on Camplify.

According to CMC Markets, both Canaccord Genuity and the Ord Minnett analysts also rate the stock as a strong buy.

Aussies are seeking a cheaper meal than steak 

Sassine's colleague, senior analyst Belinda Moore, took a look at the trading update from Inghams Group Ltd (ASX: ING).

"Inghams provided 1H24 guidance which was materially better than expected," Moore said on the Morgans blog.

"Pleasingly, the strong 2H23 recovery in operational performance, which underpinned a positive start to FY24, has continued through into the 1H24."

While Morgans already had Inghams as a buy, the latest numbers convinced the analysts to push up the share price target 18% to $4.45.

That's a 14% premium on the stock price on Thursday afternoon.

"Ingham's valuation remains undemanding, with it trading on an FY24F PE of 10.8x and an attractive dividend yield of 5.6% fully franked."

Shaw and Partners portfolio manager James Gerrish also expressed his support for the chicken producer heading into the holiday season.

"History tells us that during tough economic times… we turn to the cheaper protein alternative of chicken over, say, steak. i.e. A likely tailwind through 2024."

Motley Fool contributor Tony Yoo has positions in Camplify. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Camplify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

Happy man in a holiday shirt holding out Australian dollar notes, symbolising dividends.
Dividend Investing

3 ASX dividend stocks I own to pay for my retirement

I love the cash these shares are sending to me every year.

Read more »

Young girl with green hair and big bow dancing with joy
Dividend Investing

This high-yield ASX share could pay a dividend yield of almost 14% in FY25!

This stock could continue to be a fountain of cash.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

Analysts say these top ASX 200 dividend shares are buys

Income investors might want to check out these buy-rated shares.

Read more »

Three young girls on a farm hold bunches of carrots triumphantly above their heads.
Dividend Investing

Income investors: 3 ASX dividend shares that could rally in 2024

Don't just grab the stocks with the highest yields. Check out these picks that have potential to bring back capital…

Read more »

Man jumping in water with a floatable flamingo, symbolising passive income.
Investing Strategies

Looking to quit work and live off ASX passive income? Here's how I'd aim to make it happen

If you want to tell your boss where to go, you will have to read this.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

An ASX dividend giant I'd buy over BHP stock

The dividends from this business have grown enormously.

Read more »

A group of businesspeople clapping.
Dividend Investing

Which ASX 200 financial share will pay the best dividend yield in FY24?

Is it a bank? Is it an insurer? Is it an investment company?

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Dividend Investing

Brokers name 2 ASX dividend shares to buy

These income options have been given the thumbs up by analysts.

Read more »