5 ASX shares to buy following the market selloff

Analysts are tipping these stocks to rise meaningfully from current levels.

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Are you on the lookout for some ASX shares to buy this month? Well, with the market down in the dumps today, now could be a good time to pounce.

But which ASX shares would be good options? Let's take a look at five buy-rated stocks that brokers are tipping to generate big returns for investors.

IDP Education Ltd (ASX: IEL)

The team at Goldman Sachs thinks that this language testing and student placement company is an ASX share to buy right now.

It feels that recent weakness has created a compelling buying opportunity in a quality company that is going through a temporary headwind. Its analysts note that "we are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL's structural growth outlook and business quality remain unchanged in our view."

The broker currently has a buy rating and $25.30 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Bell Potter is feeling very bullish about fashion jewellery retailer Lovisa. In fact, the broker has just lifted its valuation for the company because it believes it can grow its store network at an even quicker than expected rate.

Bell Potter estimates that Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034. It expects this to underpin strong earnings growth over the period.

The broker has a buy rating and $36.00 price target on Lovisa's shares.

Megaport Ltd (ASX: MP1)

Another ASX share that has been named as a buy is Megaport. It is a leading global provider of elastic interconnection services.

Macquarie is a big fan of the company and is forecasting rapid growth over the coming years. This is thanks to strong near-term operating leverage and the growth of its Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE) products.

Macquarie currently has an outperform rating and $18.30 price target on Megaport's shares.

Qantas Airways Limited (ASX: QAN)

Over at Goldman Sachs, its analysts also think that this airline operator's shares are great value at current levels.

Especially given the way the company's post-COVID transformation has created structurally stronger earnings.

Goldman has a buy rating and $8.05 price target on its shares.

Xero Ltd (ASX: XRO)

Finally, another ASX share that Goldman Sachs is bullish on is Xero. It is a rapidly growing cloud accounting platform provider with a huge market opportunity.

And when I say huge, I mean it. The broker believes Xero is "very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM."

Goldman has the company on its Asia-Pacific conviction list with a buy rating and $156.00 price target,

Motley Fool contributor James Mickleboro has positions in Lovisa and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Lovisa, Macquarie Group, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Idp Education, Lovisa, and Megaport. 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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