We asked our Foolish writers to pick some of their favourite ASX shares to buy this September. Here is what they came up with…
Tom Richardson: REA Group Limited (ASX: REA)
The stock is not cheap, but never is thanks to its high return on equity, capital-light business model (it's just a collection of websites) and second-to-none track record of dividend, profit and share price growth.
It also has a strong competitive position with only one real competitor (domain.com) thanks to its network effect and it's all backed up by exposure to property as Australia's most potent asset class. Finally, I expect we're about to see a strong uplift in listings and property prices over the next 12 months. In my opinion there aren't many better quality businesses on the local market.
Motley Fool Editor Tom Richardson owns shares in REA Group.
Sebastian Bowen: Afterpay Touch Group Ltd (ASX: APT)
My pick for September is Afterpay. Although this company seems to have more rivals by the day, this didn't stop it posting a 140% increase in underlying sales for the 2019 financial year – which I think shows the strength of its branding as well as its first-mover advantage in the BN-PL space.
Afterpay is also a payments stock, which will continue to benefit from the 'war on cash' that both businesses and governments are pushing. Early results from its UK launch are also very promising, so I think it's only up from here.
Motley Fool contributor Sebastian Bowen does not own shares of Afterpay Touch Group Ltd.
Brendon Lau: Sandfire Resources NL (ASX: SFR)
The Sandfire Resources share price bounced recently but it's still stuck at the lower end of its 52-week trading range. This makes the copper and gold producer one of the best value miners on the market with a net yield of around 4-5%.
Management will need to deliver on some key projects to keep the stock on the front foot (and assuming the copper price doesn't crash due to a global recession) but its risk-reward proposition puts the stock in the "buy" zone.
Motley Fool contributor Brendon Lau owns shares in Sandfire Resources.
Tristan Harrison: Webjet Limited (ASX: WEB)
Webjet's share price has fallen around 27.5% since 1 May 2019, yet I thought it reported good numbers with net profit up by 45% to $60.3 million and earnings per share (EPS) growing by 30%.
The business to business segment of WebBeds has a large growth opportunity and it's already one of the largest in the world. Management expects profit margins to rise and if revenue keeps going higher then today's share price could be very good value at 11x FY21's estimated earnings with further growth likely beyond that. It's just a projection, but it looks very promising.
Motley Fool contributor Tristan Harrison has no financial interest in Webjet Limited
Kenneth Hall: Wesfarmers Ltd (ASX: WES)
Wesfarmers looks to be a great buy for its dividend alone in September. The Aussie conglomerate is currently yielding 5.7% per annum which is more than handy, particularly for an ASX50 stock whose share price has climbed 25% higher in 2019.
Coming off a strong August reporting season, Wesfarmers still has a lot of dry powder available for acquisitions following the sale of Coles Group Ltd (ASX: COL) and its stake in the Bengalla coal mine.
I think Wesfarmers can offer a rare combination of significant upside capital growth as well as a strong income stream in the meantime.
Motley Fool contributor Kenneth Hall does not own shares in Wesfarmers Ltd.
Nikhil Gangaram: Flight Centre Travel Group Ltd (ASX: FLT)
I think the Flight Centre share price could surge this month after the company beat market expectations when it reported full-year earnings for FY19. Flight Centre reported a record total transaction value (TTV) of $23.7 billion, an 8% improvement from the prior year.
Flight Centre has a strong brand and is exposed to global opportunities for growth, especially in the corporate travel segment. The company has good cost control, a strong balance sheet and attractive return on capital metrics. Personally, I think at the current share price Flight Centre offers great value.
Motley Fool contributor Nikhil Gangaram does not own shares of Flight Centre Travel Group Ltd.
Rhys Brock: Saracen Mineral Holdings Limited (ASX: SAR)
With fearmongering over an impending global recession reaching fever pitch over the last couple of weeks, September might be a good time to take some steps to de-risk your portfolio. One way to do this is to gain some gold exposure. Gold is regarded as a "safe haven asset", which means it typically tends to increase in value as equity markets tumble.
Saracen is a pure play gold miner and is a great way for investors to benefit from increases in the gold price. It's a growing miner, notching up record high production and net profit numbers for FY19. It also has nil debt on its balance sheet, which puts it in a strong position if the global economic outlook continues to worsen.
Motley Fool contributor Rhys Brock owns shares in Saracen Mineral Holdings Limited
Saran Likitkunawong: Webjet Limited (ASX: WEB)
The Webjet share price fell over 11% in August, following a rather strong year of growth. Revenues were up 26% to $366.4m, whilst EBITDA and NPAT saw stratospheric gains of 43% and 46% respectively. Their B2B division WebBeds has led the charge, growing EBITDA margins to 36.4% and bringing in 54% of Webjet's earnings.
The risk of a global recession would likely impact Webjet more than most. However, with strong margins, manageable debt, and a modest P/E of 23, I'd consider Webjet Limited shares a buy well ahead of industry peers such as Flight Centre Travel Group (ASX: FLT).
Motley Fool Saran Likitkunawong owns shares in Webjet Limited.
