If you are lucky enough to have $10,000 to invest into ASX shares this month, then it could be worth checking out the two in this article.
Not only are high-quality companies, but they have recently been tipped as buys by analysts. Here's what you need to know about them:
Image source: Getty Images
REA Group Ltd (ASX: REA)
The first ASX share that could be a buy is REA Group. It is the dominant force in Australia's online property advertising market through its realestate.com.au platform.
REA has been growing at a strong rate for the past decade thanks to its pricing power, product innovation, and its near-monopoly market position. And with housing market activity looking positive due to falling interest rates, REA's earnings could accelerate further in the coming years.
And while it is not the cheapest stock on the market, its track record of compounding earnings and returns for shareholders makes it one of the most reliable growth stories on the ASX. As a result, it arguably justifies its premium valuation.
Bell Potter believes this is the case and is very bullish on its outlook. The broker currently has a buy rating and $256.00 price target on its shares. Based on its current share price of $212.32, this suggests that upside of 20% is possible between now and this time next year.
ResMed Inc. (ASX: RMD)
Another ASX share that could be a top buy with the $10,000 is ResMed. It is a global leader in sleep apnoea treatment, with a strong portfolio of devices and software solutions that help millions of people manage chronic respiratory conditions.
While demand for continuous positive airway pressure (CPAP) machines continues to grow, ResMed's real strength lies in its digital health ecosystem, which generates recurring revenue through software and data services.
With a growing global population and increasing awareness of sleep disorders, the long-term demand for ResMed's products remains as strong as ever. In fact, an estimated 1 billion+ people suffer from sleep apnoea, giving the company a huge growth runway over the next decade and beyond.
The team at Citi is bullish on the company's outlook. In response to its quarterly results last week, the broker put a buy rating and $51.00 price target on its shares. Based on its current share price of $37.97, this implies potential upside of 34% for investors over the next 12 months.
