Today, we’ll show you the top 5 best shares to buy now on the ASX in 2019 for 2020.
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.
The recent pullback during the last quarter of 2019 is a good opportunity to buy into some of the more promising companies listed on the ASX.
2020 is the year to be in stocks as easing monetary policy pushes yields lower and asset prices higher.
For 2020, 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-cap 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.
Webjet (ASX WEB) is a High Growth, Market-leading Global Digital Travel Business
Webjet is a market-leading digital travel business that is rapidly expanding from the B2C to the B2B market.
With recent acquisitions, Webjet’s B2B business is now the No.2 global player in the market.
Webjet has experienced strong year on year growth and continues to grow its dividend payout.
We think Webjet has a strong, globally diversified business with a lot of future upside and earning potential.
EML Payments (ASX EML) is a High Growth Global Leader in Alternative Electronic Payment Solutions
EML Payments is a financial services company offering payment services such as gift and reward cards.
They have seen strong growth in the EML share price on the back of record YoY growth in revenue and earnings.
We first became interested in this stock and recommending it to our clients in late August 2019 when the stock was trading at around $3.60.
Since then, the stock has rallied to over $4.40, or 22% higher in about two months time.
We think that EML payments continue to have good potential and this is why we like EML.
ResMed (ASX RMD) is a Market-leading US Developer, Manufacturer and Distributor of Medical Equipment
ResMed is a market-leading US-based developer, manufacturer and distributor of medical equipment.
With strong margins, growing earnings and a stable dividend, ResMed is a good blue-chip stock for medium to long term portfolios.
In addition, ResMed earns the vast majority of its revenue in USD.
With the weakness in the Australian dollar, diversification into USD denominated earnings will boost returns in a portfolio predominantly of Australian companies.
McPherson’s (ASX MCP) is a Leading Beauty and Wellness Retailer
McPherson’s is a leading beauty and wellness retailer which has recently refocused its strategy on its core brands.
Along with that, the company has managed to stem revenue decline and at the same time, grew profits two years in a row.
We first became interested in this stock and recommended it to our clients around July, when the stock was $1.70.
Since then, the company reported very positive FY19 numbers and the stock has rallied to over $2.20.
Kalium Lakes Limited (ASX KLL) – First Mover in Potash Production in Australia
Kalium Lakes manufactures sulphate of potash (SOP), a product used as fertilizer.
Australia consumes about 40,000 tonnes of SOP per year, yet, there are no companies in Australia producing SOP.
Once Kalium Lakes completes its Beyondie Potash Project in Western Australia early next year (2020), they will become the first in Australia to produce SOP.
In addition, KLL’s Beyondie project is the only company to have completed a Bankable Feasibility Study, which confirms the project is technically and financially robust.
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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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.