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10 top ASX shares to buy in 2020

James Mickleboro
Top 10 Investment Ideas

With a new year upon us, I’m sure many investors will be planning to make some additions to their portfolio in the near future.

But which shares should you buy? To help you narrow things down, I’ve picked out 10 shares that I would buy in 2020:

a2 Milk Company Ltd (ASX: A2M)

This New Zealand-based fresh milk and infant formula company has been growing its earnings at an explosive rate over the last few years. I remain confident this strong form can continue for many years to come thanks to the growing demand for its infant formula products in the massive China market.

Afterpay Ltd (ASX: APT)

I think this payments company would be a great option in 2020. I believe the continued success of its international expansion could drive further strong underlying sales and customer growth next year. Especially if it decides to expand outside of the UK and onto mainland Europe.

Altium Limited (ASX: ALU)

Altium is a printed circuit board (PCB) design software provider. It looks well-placed to deliver above-average earnings growth over the next decade thanks to the Internet of Things (IoT) boom. Statista is forecasting the IoT market to be worth US$1.6 trillion in 2025, up from US$212 billion in 2019. If this proves accurate, it 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 expect demand for Appen’s Content Relevance services to continue to grow in the coming years and underpin further stellar earnings growth.

Aristocrat Leisure Limited (ASX: ALL)

Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, I think Aristocrat Leisure is one of the best growth shares on the local market. Another positive is its attractive valuation. At just 22x estimated FY 2020 earnings, I think it is a great example of growth at a reasonable price.

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider. It has caught the eye in recent years thanks to some impressive sales growth. This has been driven by the expansion of its Dante product offering and the increased adoption by Original Equipment Manufacturers (OEMs). The good news is that due to the quality of the Dante product and its massive market opportunity, I expect its strong growth to continue in FY 2020 and beyond.

Cochlear Limited (ASX: COH)

Cochlear is a hearing solutions company which I would buy in 2020 with a long term view. I believe its outlook is very positive due to the ageing populations tailwind. After all, as people age their hearing will invariably fade and require some assistance. I expect this to lead to increasing demand for hearing solutions products over the next couple of decades.

CSL Limited (ASX: CSL)

Due to the quality and strength of this biotherapeutics company’s CSL Behring and Seqirus businesses, I continue to believe it can be a market beater for some time to come. Especially given the increasing demand for immunoglobulins, its growing plasma collection network, and its pipeline of potentially lucrative products. Ltd (ASX: KGN)

I think this ecommerce company would be a good option for investors due to continued rise in online shopping. In addition to this, its expansion into potentially lucrative verticals such as energy and mobile and the launch of Kogan Marketplace should support solid earnings growth in the coming years.

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. Whilst I think this product alone has the potential to underpin solid earnings growth over the coming years, the impending launch of new products should give its growth a boost. These new products are targeting unmet needs, with the first expected to launch early in FY 2021.

The post 10 top ASX shares to buy in 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, AUDINATEGL FPO, Cochlear Ltd., and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of A2 Milk, Altium, and Appen Ltd. The Motley Fool Australia has recommended AUDINATEGL FPO, Cochlear Ltd., and 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