There are a large number of quality shares on the ASX that I feel could deliver strong returns over the next 12 months and beyond.
Ten of my favourites which I think could provide market-beating returns between now and the end of 2020 are listed below. Here’s why I think investors ought to buy them for 2020:
a2 Milk Company Ltd (ASX: A2M)
Although the CEO of this New Zealand-based fresh milk and infant formula company has just resigned, I don’t expect this to disrupt its performance in FY 2020. As a result, I’m confident the growing demand for its infant formula products in the massive China market will drive further strong profit growth this year and for years to come.
Afterpay Ltd (ASX: APT)
This payments company has been on form again in 2019, generating strong returns for investors. I’m confident the continued success of its international expansion could make its shares a market beater again in 2020. Especially if it decides to expand outside of the UK and into other European countries.
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider. I believe it could be one of the best buy and hold options on the ASX due to the Internet of Things boom. Global technology spending on the Internet of Things is expected to grow at a rapid rate over the next decade. This should lead to increasing demand for its award-winning software.
Appen Ltd (ASX: APX)
Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the strong growth of these markets, I believe Appen is well-placed to deliver above-average growth over the next decade.
CSL Limited (ASX: CSL)
Another top buy and hold option is CSL. Due to the quality and strength of the biotherapeutics company’s CSL Behring and Seqirus businesses, I believe it can continue being a market beater for some time to come. Especially given the increasing demand for existing therapies, its growing plasma collection network, and its pipeline of potentially lucrative products.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company. In FY 2020 the company expects to report record annualised contract value (ACV) of $116 million to $120 million. This will be a 28.6% to 33% increase year on year. Whilst this is a large number, it is still only a fraction of the global aerial imagery market estimated to be worth US$10.1 billion in 2020.
REA Group Limited (ASX: REA)
REA Group is the owner and operator of the increasingly popular realestate.com.au website and several international equivalents. It has been a solid performer in recent years despite the housing market downturn. So, with the housing market rebounding strongly, REA Group’s medium to long term outlook looks very favourable.
ResMed Inc. (ASX: RMD)
Another top share to consider in 2020 is ResMed. It is a medical device company which is focused on the sleep treatment market. I believe it is well-placed to deliver solid long-term earnings growth thanks to its industry-leading products and its massive market opportunity. Management estimates that there are 1 billion people impacted by sleep apnoea worldwide, but only ~20% of these have been diagnosed.
Webjet Limited (ASX: WEB)
Thanks to its popular brands, the shift to online booking, and acquisition opportunities, I believe this online travel agent could be a great buy and hold investment option. Another positive is management focus on increasing its margins materially over the coming years. This should be very supportive to its earnings growth over the medium term.
Xero Limited (ASX: XRO)
Xero is a leading cloud-based business and accounting software provider. I feel it could be a great buy and hold investment option due to the quality of its product and the shift to online accounting. Last month it revealed that it has surpassed 2 million subscribers. Despite this stellar growth, it is still only scratching at the surface of an enormous global market opportunity.
The post 10 quality ASX shares to buy for 2020 appeared first on Motley Fool Australia.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of A2 Milk, Altium, Appen Ltd, and Xero. The Motley Fool Australia has recommended REA Group Limited, ResMed Inc., and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019