If you're planning to make some changes to your portfolio or embarking on your first foray into the world of investing in 2020, then these ASX shares are the first ones I would buy.
Here's why I think these ASX shares are in the buy zone:
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Through its 1 million+ on-demand global crowd, Appen provides or improves data that can be used in machine learning and artificial intelligence product development. This includes speech and natural language data, image and video data, text and alphanumeric data, and relevance data to improve search and social media engines. Demand for its services has been incredibly strong, leading to management guiding to underlying EBITDA growth of 34.6% to 38.8% in FY 2019. With the strong demand for its Content Relevance services showing no signs of slowing, FY 2020 looks likely to be another year of stellar growth.
Jumbo Interactive (ASX: JIN)
Jumbo is an online lottery ticket seller and the operator of the ozlotteries.com website. I think it is worth considering for a long term investment, especially given the sharp pullback in its share price recently. After several years of explosive growth, the company disappointed investors this month with its guidance for just 13% profit growth for the first half of FY 2020. However, it is worth noting that the slowdown in its profit growth has been caused by increased investment in growth opportunities. Pleasingly, management expects its margins to return to normal and for its investments to bear fruit in FY 2021. It also reiterated its target of $1 billion in ticket sales on the Jumbo platform by FY 2022. This will be triple what it achieved in FY 2019.
Webjet Limited (ASX: WEB)
Webjet is one of the world's leading online travel agents. I believe it is well-placed to deliver strong long-term earnings growth thanks to its popular brands, its fast-growing WebBeds B2B business, the shift to online booking, and acquisition opportunities. Another key driver of growth in the future will be management's focus on increasing its margins materially over the coming years. Based on its positive outlook, I think Webjet's shares are great value at under 20x estimated FY 2020 earnings.
