Today, we’ll show you the top 5 best shares to buy now on the ASX in 2019.
Some of these stocks have already had tremendous performance.
Even though the markets have been a bit more volatile, we’re hitting new record highs as Australia and the US start cutting rates.
2019 is the year to be in stocks as easing monetary policy pushes yields lower and asset prices higher.
For 2019, we have put together a list of some of the best stocks to buy now on the ASX.
So let’s get started.
The hardest part about finding the best shares to buy is the ability to process a large amount of information and factors to be able to navigate the macroeconomic and fundamental environment.
Our Research team has been hard at work uncovering the best shares to buy on the ASX from small to large cap, on a macroeconomic and fundamental basis.
We’ve outlined 5 stocks that we think have strong growth potential or are undervalued.
We believe these represent some of the best value the ASX has to offer and what we consider are the best stocks to buy now.
A2 Milk (ASX A2M)
The A2 Milk company was founded back in 2000 by Dr Corran McLachlan in New Zealand. Whilst studying at Cambridge University, he discovered that the proteins in milk affected people differently.
He then discovered that ordinary cows produced two types of beta-casein proteins called A1 and A2. He then found a way to identify cows that produced milk without the A1 protein.
The main selling point of A2 Milk is that the A1 protein has demonstrated through research to cause some people digestive discomfort.
Since then, the A2 Milk company has expanded to Australia, New Zealand, China, the US and UK. They have also moved into some emerging markets in Asia.
We first posted about A2 Milk on 19th March 2018, when the A2M share price was around $12.50.
Like most stocks that rely heavily on exports to China, the A2M share price suffered declines down to sub $9.
However, the A2M share price has rallied back to over $15.30 since then with a lot of clear skies ahead.
A2 Milk has a massive amount of potential, leveraged to the demanding Chinese market. A2 Milk will is a top share to buy.
Zip (ASX Z1P) is a digital point-of-sale & fast-growing payment solution.
Zip operates in the buy-now-pay-later sector similar to Afterpay and along with Afterpay, is one of the best shares to buy on the ASX.
From FY18 Results Investor Presentation, Zip added 6,000 new retailers including a number of bigger players such as Officeworks, Tigerair, Kogan, and soon Virgin.
This means greater exposure to new customers and more variety of products on offer. Zip also added 440,000 new customers.
When we first looked at this stock, it was trading at about $1.00 per share in August 2018. Since then, the Z1P share price has rallied to a high of almost $4.00 before pulling back to around $2.90.
Afterpay Touch Group Limited (ASX APT) is a leading company in the late payment service industry and a high growth share to buy.
By using the Afterpay service, customers receive their item immediately.
Payment for their item is done over four equal instalments over a 56-day period. The focus is to pay off the total purchase price with no interest charged to consumers.
These days, Afterpay is everywhere and is fast becoming a favourite payment solution for millennials.
In fact, we have been recommending APT shares since before August 2018 when it was at around $10 a share, at around the same time as Zip Co (ASX Z1P).
Since then, APT touched $28 before pulling back to about $22.50.
Appen (ASX APX)
Appen is a global leader in developing high-quality, human-annotated datasets for machine learning and artificial intelligence.
Appen has over 20 years’ experience and expertise in more than 180 languages with access to a crowd of over 1 million people.
Appen also partners with leading technology companies and government agencies to enhance their machine-learning-based products.
Over the last three years, Appen shares outperformed S&P/ASX 200 Information Technology Sector Index and S&P 500 Information Technology Index by over 750%.
APX reported average revenue growth of 40% FY15-17, and revenue grew more than 100% in FY18. APX is a share to buy.
Volpara Health Technologies (ASX VHT)
Volpara Health Technologies Ltd (ASX VHT) is a New Zealand-based healthcare research and development company with global scalability.
The company provides medical software, specialising in managing breast screening and detection.
Their product is a SaaS system that enables the flow of information between the doctor and the clinic taking the screening mammogram x-ray.
With strong growth and technology disrupting the health industry, Volpara has good growth prospects and is a share to buy.
Stock markets are generally driven by three factors within the markets.
Understanding these forces helps us time the market and buy or sell stock at the most opportune moments.
In general, the markets and stocks are firstly driven on a short-term basis via supply and demand imbalances.
This is the order flow on a day to day basis as investors buy or sell a stock for different reasons.
This order flow is generally hard to forecast and requires strong technical analysis and understanding of the underlying market to properly time.
Secondly, markets and stocks are driven by macroeconomic forces in the medium-term.
Factors include but are not limited to changes in interest rates, consumer sentiment, government policies and so forth.
Understanding the nuances and how the different countries interact with each other in terms of trade and politics is key to understanding the forces that drive the markets as a whole.
Finally, stocks in the long-term are driven by fundamentals. Factors include but are not limited to quantitative factors such as earnings growth, profit margin and return on equity.
Qualitative factors include factors such as competition, operating environment, political and policy environment.
To be able to pick the best shares to buy now, it is essential to combine market timing, macroeconomic and fundamental analytics.
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Picking the best shares to buy now, timing the entry and having an edge in the market is not easy.
Download our special report below for another 5 best shares to buy now.
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Are you still looking for the best stocks to buy in 2019? We've put together a free report on 5 stocks that we think are the best buys on the ASX right now. Download it instantly here.
This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.