The market has been melting down this month due to fears over the impact of the coronavirus outbreak. Whilst this is disappointing, one positive is that it has dragged a large number of shares down to very attractive levels.
But which shares should you buy when the market volatility eases? To help you narrow things down, I've picked out 10 ASX shares that I would buy:
Afterpay Ltd (ASX: APT)
This payments company's shares are down 68% since this time last month. Whilst I do think the coronavirus could stifle its growth in 2020, I think the selloff has been excessive. This could make it worth considering an investment in its shares when things blow over.
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider. Its shares are down 24% over the last 30 days, which I think has brought them down to an attractive level. Especially given its strong long-term earnings growth potential thanks to the Internet of Things (IoT) boom. Statista is forecasting the IoT market to be worth US$1.6 trillion in 2025, up from US$212 billion in 2019.
Appen Ltd (ASX: APX)
Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the strong growth of these markets, I expect demand for Appen's Content Relevance services to continue to grow in the coming years and underpin further stellar earnings growth. Its shares are down 27% since this time last month.
Aristocrat Leisure Limited (ASX: ALL)
The closure of casinos and social distancing practices in venues that are still open means demand for Aristocrat Leisure's pokie machines is expected to fall in the near term. However, I expect a big rebound in demand when things return to normal. In the meantime, its growing Digital business looks well-positioned to benefit from these aforementioned closures and self-isolating. So with its shares down 53% in the space of a month, it could soon be an opportune time to invest.
CSL Limited (ASX: CSL)
The CSL share price is down around 20% since this time last month, which I think is a buying opportunity for long-term focused investors. I believe CSL is well-placed for solid long term growth thanks to the increasing demand for immunoglobulins, its growing plasma collection network, and its research and development pipeline.
Nanosonics Ltd (ASX: NAN)
Nanosonics is the infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. I believe this product has the potential to underpin solid earnings growth over the next decade thanks to its sizeable addressable market. The company is also planning to launch new products which have similar addressable markets. If they are half as successful then the future is bright for Nanosonics. Its shares are down 36% since this time last month.
REA Group Limited (ASX: REA)
REA Group is the owner and operator of the market-leading realestate.com.au website and several international equivalents. Whilst the coronavirus could have an impact on listing volumes in the coming months, I expect the market to bounce back strongly when it clears. This could make its 36% share price decline over the last month a buying opportunity when the volatility eases.
SEEK Limited (ASX: SEK)
This job listings company's shares have also fallen 36% over the last 30 days. I think this is an opportune time for investors to consider a long term investment in its shares. SEEK is aiming to grow its revenue to $5 billion by FY 2025. This will be a big lift on the revenue of $1,537.3 million it recorded in FY 2019. If it delivers or even comes close to delivering on this, its shares will almost certainly be notably higher than where they trade today.
Xero Limited (ASX: XRO)
Xero is a leading cloud-based business and accounting software provider. I think it could be a great buy and hold investment option due to the quality of its product and the continued shift to online accounting. This year it surpassed 2 million subscribers, but this is still only a small portion of its massive global market opportunity. Xero's shares are down 29% since this time last month.
Zip Co Ltd (ASX: Z1P)
The Zip Co share price has fallen a disappointing 65% over the last 30 days. As with Afterpay, there are concerns that the coronavirus could stifle its growth and cause a spike in bad debts. Whilst this is a real possibility, I expect any impact to be only temporary and for its growth to accelerate again once life returns to normal.
