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5 top ASX shares to buy in February

James Mickleboro
top 5, 5, five

A new month is here, so what better time to look and see if your portfolio could benefit from a few new additions.

If you’re looking at adding a few top shares to your portfolio, then I think the five listed below are worth considering.

Though, with earnings season just around the corner, it may be prudent to hold off investing until their results have been announced.

Alternatively, you could consider buying half your position now and then half after their results have been released.

Here’s why I like them:

Afterpay Ltd (ASX: APT)

I think this payments company would be a great option in February. I expect the success of its international expansion to drive further strong underlying sales and customer growth in FY 2020. Furthermore, if Afterpay decides to expand outside of the UK and onto mainland Europe, its growth could be given an added boost in the coming years.

Altium Limited (ASX: ALU)

Another option to consider is Altium. It is a printed circuit board (PCB) design software provider that appears well-position to deliver strong earnings growth over the next decade. This is thanks to the Internet of Things (IoT) boom which Statista is forecasting to be worth US$1.6 trillion in 2025. This is up from an estimated US$212 billion in 2019. If this estimate proves accurate, it should lead to increasing demand for its award-winning Altium Designer software.

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection control specialist. Its trophon EPR disinfection system for ultrasound probes has been generating significant revenues in recent years from both unit sales and recurring consumable sales. Although I think this product has the potential to generate 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.

REA Group Limited (ASX: REA)

REA Group is the property listings company behind the market-leading website and several international equivalents. It has been a strong performer over the last few years despite the housing market downturn. So with the housing market now rebounding, I believe its medium to long term outlook is looking very positive.

SEEK Limited (ASX: SEK)

I believe this job listings giant could be a strong performer over the next few years thanks to its investments in growth opportunities. Combined with its market-leading core business, these investments are expected to play a big role in SEEK delivering on its aspirational revenue target of $5 billion by FY 2025. This represents a big increase on the revenue of $1,537.3 million it posted in FY 2019.

The post 5 top ASX shares to buy in February appeared first on Motley Fool Australia.

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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Nanosonics Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Nanosonics Limited, REA Group Limited, and SEEK Limited. 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. 2020