With the S&P/ASX 200 index down almost 20% since hitting its record high on February 20, many popular shares have pulled back materially.
Whilst there is nothing to say that the market won't drop further from here, I think the three shares below would be great long term options for investors once the volatility eases. Here's why I like them:
Altium Limited (ASX: ALU)
I think that Altium would be a great long term option for investors. Altium is a fast-growing printed circuit board (PCB) design software provider which I believe has a very bright future ahead of it. This is because of the Internet of Things (IoT) boom, which is driving increasingly strong demand for its Altium Designer software. Thanks to the continued rise of the IoT market and the company's focus on dominating the PCB design industry, management expects to grow its revenue to US$500 million by FY 2025. This will be more than double the revenue of ~US$205 million it expects to achieve in FY 2020.
REA Group Limited (ASX: REA)
Another top share to consider buying after the market meltdown is this property listings giant. The realestate.com.au operator's shares have lost almost 21% of their value since peaking at an all time high of $117.30 last month. I think this has left them trading at an attractive level, especially after the recent rebound in the housing market. I expect this rebound to lead to an acceleration in listing volumes in FY 2021. And combined with price increases, new revenue streams, and its growing international operations, this could support strong earnings growth from FY 2021 onwards.
Xero Limited (ASX: XRO)
A final share to consider buying after the market meltdown is Xero. It is a leading cloud-based business and accounting software provider which has been growing at a very strong rate over the last few years. This has been driven by the the shift to online accounting and the increasing popularity of its software with small businesses. And although the company recently surpassed two million subscribers, Xero still has a long runway for growth. I expect further market share gains in the coming years, driving strong recurring revenue growth.
