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Where to invest $5,000 in ASX shares for strong returns in 2020

James Mickleboro
money loading, invest, boost earnings

With interest rates at record lows and likely to go even lower in 2020, I think the share market remains the best place to put your money.

With that in mind, here’s where I would invest $5,000 for strong returns in 2020:

Appen Ltd (ASX: APX)

I think Appen would be a great option for investors. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It has expertise in more than 180 languages, a global crowd of over 1 million skilled contractors, and the industry’s most advanced AI-assisted data annotation platform. From this Appen provides solutions to the leaders in technology, automotive, financial services, retail, manufacturing, and governments worldwide. With spending on machine learning and AI expected to explode over the next decade, Appen looks perfectly positioned to profit.

Domino’s Pizza Enterprises Ltd  (ASX: DMP)

Another good long-term option could be this pizza chain operator. Due to its international expansion plans, I believe Domino’s has the potential to double in size over the next decade. The company is aiming to grow its store network by 7% to 9% per annum for the next 3 to 5 years. It is also targeting same store sales growth of 3% to 6% per annum over the same period. If it delivers on these targets, then it should lead to strong profit growth for many years to come.

Nearmap Ltd (ASX: NEA)

A final option to consider investing $5,000 into is Nearmap. It is a leading aerial imagery technology and location data company. Its technology allows users to instantly access high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This essentially means that users can conduct virtual site visits from within their home or office. Not only does this enable informed decisions, it offers users significant cost savings. Unsurprisingly, demand has been strong for its services and has underpinned impressive sales growth in recent years. This has continued to be the case in FY 2020, with management expecting its annualised contract value (ACV) to be in the range of $116 million to $120 million. This represents growth of 28.6% to 33% on FY 2019’s ACV.

The post Where to invest $5,000 in ASX shares for strong returns in 2020 appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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