We asked our contributors to pick their favourite ASX stocks to buy this month. Here are their top ideas.
Mike King: Flight Centre Travel Group Ltd (ASX: FLT)
The bricks-and-mortar travel agent has defied its critics for more than a decade, with many expecting Flight Centre to be wiped out by the pure online booking agents early on. In fact, the opposite has happened and Flight Centre has prospered.
The company recently revised down its profit guidance for the 2015 financial year and reported a tiny 0.3% fall in market share, but those same pessimists have jumped back on the bandwagon, predicting 'this time it's different'. Those are the four most dangerous words in investing, and the pessimists are likely to be proven wrong again.
All the negativity gives Foolish investors a perfect opportunity to jump on board at a cheap price, something I did recently and topped up my holding.
Motley Fool writer/analyst Mike King owns shares in Flight Centre.
Matt Brazier: Intueri Education Group Ltd (ASX: IQE)
New Zealand-based vocational training provider, Intueri Education, is trading at its lowest level since listing in May 2014. Part of the reason for this underperformance is that the vocational training sector is now perceived to be risky thanks to the regulatory problems experienced by Vocation over the last year.
Intueri has an artificially high amortisation charge of about $10 million in its accounts related to various acquisitions. This is not a true cost and so the business generates free cash far in excess of reported profit figures.
Motley Fool contributor Matt Brazier has no position in Intueri Education.
Christopher Georges: Ramsay Health Care Limited (ASX: RHC)
It's not often investors have the chance to buy Ramsay after a significant drop in the share price. Although the shares are still trading on a price-to-earnings ratio of around 30, the company's growth outlook is impressive.
Ramsay is expecting earnings per share to increase by around 20% this year and strong growth is expected as the company benefits from numerous tailwinds. The current valuation should be attractive to long-term investors who are looking for the high-quality exposure in the healthcare sector.
Motley Fool contributor Christopher Georges owns shares in Ramsay Health Care Limited
Ry Padarath: Empired Ltd (ASX: EPD)
Empired helps organisations to migrate to the digital business environment. They provide business services including tailored mobile solutions and information and communications technology (ICT) strategy and implementation.
All businesses are facing the need to migrate to digital work practices, and Empired is a contractor that provides the tools and support to get that done effectively. And it's working. Management recently upgraded revenue guidance to a range of $120 – $130 million, rising to $155 – $175 million next year. The company is also investing in the workforce and ICT staff crucial for the growth of a knowledge-based business.
Motley Fool contributor Ry Padarath does not own shares in Empired.
Andrew Mudie: Freedom Foods Group Ltd (ASX: FNP)
Freedom Foods Group Ltd last month announced that it has commenced the process of scoping out whether to buy New Zealand-focused a2 Milk (ASX: A2M). The purchase is a sensible one, and is being made when milk prices are soft and Asian demand for good quality milk is on the rise. a2 milk has forced many Australian brands to change their marketing to include their inclusion of a2 proteins, implying that the NZ upstart is making good progress locally. Freedom should benefit either way as the company already holds a 12% stake in a2.
Motley Fool contributor Andrew Mudie owns shares in Freedom Foods Group.
Peter Stephens: Origin Energy Ltd (ASX: ORG)
Origin Energy offers a potent mix of value, growth and income potential. For example, it is expected to increase its bottom line by 19.2% per annum during the next two years and with its shares having a price to earnings ratio of 18.9 this equates to a price to earnings growth (PEG) ratio of just 1.
Furthermore, Origin yields 4.4%, with dividends having the scope to rise as the dividend coverage ratio is due to extend to 1.8x. Origin could be a superb contrarian buy while energy stocks are unpopular.
Motley Fool contributor Peter Stephens does not own shares in Origin Energy.
Sean O'Neill: XERO FPO NZ (ASX: XRO)
The biggest question to my mind is whether Xero's moat in the online space is expanding, or under threat thanks to efforts by competitors Myob and Reckon to get online. A narrowing moat would impact growth, which would delay the time until Xero becomes profitable.
Recent developments however have convinced me that its moat is growing wider and that makes me believe today's low prices are a great opportunity and I am considering increasing my stake in Xero.
Motley Fool contributor Sean O'Neill owns shares in Xero.
Regan Pearson: Primary Health Care Limited (ASX: PRY)
With volatility truly back in view Primary Health Care offers solid, defensive earnings, a strong dividend and a big tailwind. Financially the company will punch through economic wobbles and benefit from ageing populations and increasing healthcare spending as people choose to pay for quality private service.
The company's medical centre business alone contributed to 44% of 2014 EBITDA at a huge average margin of 56.8%. Revenue grew by 6.1% for the first six months of 2015 and the company is expecting a huge one off tax refund from the Australian Tax Office of around $130 million.
Motley Fool contributor Regan Pearson does not own shares in any of the companies mentioned.
Owen Raszkiewicz: Flight Centre Travel Group Ltd (ASX: FLT)
I recently wrote a detailed piece on business and leisure travel business, Flight Centre. In a nutshell, following recent share price falls its valuation has become compelling.
Whilst its recent woes have been largely attributed to increasing disruption by online discount operators I think this is nonsense. Whilst I'll admit the online space is competitive for basic flights and packages, Flight Centre is more a victim of poor consumer confidence levels and falls in airfare prices. I expect volatility in the next few years, but over the long term I am betting Flight Centre's share price is going skywards.
Motley Fool contributor Owen Raszkiewicz owns shares of Flight Centre.
Ryan Newman: 1-Page Ltd (ASX: 1PG)
Every year, corporations around the world spend billions of dollars in hiring new employees, devoting valuable time and resources into potential candidates that often aren't even qualified for the advertised position.
1-Page wants to revolutionise the way in which employers hire staff. Instead of asking for a CV, it asks candidates to take an online test to solve a real-world challenge relevant to the role they're applying for. It estimates that this system could reduce the time to hire from 13 weeks to 4 weeks. Although speculative, 1-Page could be a rewarding investment for investors who get in early.
Motley Fool contributor Ryan Newman does not own shares in 1-Page.
Tom Richardson: Nearmap Ltd (ASX: NEA)
If you have some spare cash and are happy to take on some risk in search of extra-large returns in the years ahead then it's worth considering aerial-mapping business Nearmap.
Often it's the simple businesses executing well that produce the most rocketing growth and Nearmap may well execute on its strategy to sign-up clients in the US market. It looks a reasonable bet to succeed and its high profit margins, scalability and global potential make for an appealing investment combination.
Motley Fool contributor Tom Richardson owns shares in Nearmap.
