5 ASX shares I think you can confidently invest $500 in right now

If you have some money to invest, then I think you should check out these top stocks.

| More on:

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

If you have $500 of your hard-earned money to invest and can't decide which ASX shares to buy, then read on.

Listed below are five ASX shares that I think investors can confidently buy right now. They are as follows:

Man holding Australian dollar notes, symbolising dividends.

Image source: Getty Images

Life360 Inc (ASX: 360)

The Australian share market doesn't have a lot of high-quality tech stocks. But in Life360, it certainly does. This Silicon Valley-based location technology company is behind the eponymous Life360 app, which boasts approximately 60 million monthly active users. Despite this large user base and its rapid EBITDA growth, the company still trades at a deep discount to peers. I feel this makes it an ASX share to buy with confidence for the long term.

Qantas Airways Limited (ASX: QAN)

I think Qantas could be a great ASX share to buy this month. The airline operator's shares are currently trading on lower multiples than pre-COVID times. That's despite the company having structurally stronger earnings now following its transformation. In addition, I suspect that it may not be long until dividends return.

ResMed Inc. (ASX: RMD)

Despite rebounding strongly in recent months from an Ozempic-related sell-off, I still think that this sleep treatment company's shares are undervalued at current levels. This is because I believe ResMed has very strong long-term growth potential even in a world with weight loss wonder drugs. Especially given that sleep apnoea is estimated to affect more than three in ten men and nearly one in five women. This gives it a huge growth runway for the next decade and beyond.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX share that I think could be a good option for a $500 investment is Treasury Wine. It is the wine giant responsible for a portfolio of popular brands including Penfolds, 19 Crimes, Squealing Pig, Blossom Hill, and Lindeman's. In addition, the company just acquired US-based wine brand DAOU Vineyards for $1.4 billion. I believe this leaves Treasury Wines well-placed for growth over the long term. In addition, it is widely expected that China will soon remove its restrictions on Australian wine, giving the company a major boost. So, with its shares down by almost 25% over the last 12 months, I think now is the time to buy.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

When buying shares, I think it is important to focus on quality, strong and sustainable business models, and fair valuations. The good news is that this popular ETF gives ASX investors easy access to approximately 40 shares from the United States that have these qualities. Over the last five years, the ETF has beaten the market with an average 16.5% per annum total return. I suspect that this trend could continue over the long term.

Motley Fool contributor James Mickleboro has positions in Life360, ResMed, and Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Treasury Wine Estates and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A stopwatch ticking close to the 12 where the words on the face say 'Time to Buy'.
Opinions

Is this the best ASX dividend stock to buy for passive income?

This business can give investors unique exposure to great assets.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Opinions

2 amazing ASX shares I'd buy amid rising interest rates

I think these stocks are great long-term buys!

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

5.7% yield: Is Super Retail stock a buy for dividend investors?

Is this monster yield too good to be true?

Read more »

A concerned man looking at his laptop.
Economy

I'm worried about the ASX 200 falling further. Here's why

Normally, markets drop when rates begin rising...

Read more »

Woman with a scared look has hands on her face.
Bank Shares

Should I sell my CBA shares in May?

It looks like the banking giant's shares have now come off the boil.

Read more »

Three happy team mates holding the winners trophy.
Opinions

A rare buying opportunity in 1 of Australia's top shares?

This business could be a glittering opportunity right now.

Read more »

Stacks of coins in a row with each higher than the last, and a person standing on top of each one watching them grow.
Dividend Investing

How I'd invest $2,000 in high-yield ASX 300 shares

I rate these businesses as strong buys for the long-term.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Share Market News

Should I sell my Telstra shares in May?

If I owned Telstra shares, here's what I'd do next.

Read more »