I believe it's a great idea to keep a watchlist of shares. This is a list which should contain companies you are following and may be interested in buying in the future.
It can also contain companies you already own, or those new to your portfolio, giving you a great way to keep track of price movements for short-term weaknesses that present buying opportunities.
Although my watchlist contains many more, below are 7 ASX shares I am currently watching closely.
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is a gaming giant. It operates in more than 90 countries with a diverse range of products and services including electronic gaming machines and casino management systems. However, more recently, Aristocrat has made acquisitions in the online gaming sector, which is a sector I believe will benefit greatly from the current lockdowns caused by the COVID-19 pandemic. This should help offset some of the losses experienced by its poker machine business.
Additionally, I'm not the only one to think that Aristocrat could be a winner, with analysts at UBS currently having a buy rating on Aristocrat shares with a price target of $31.50.
Altium Limited (ASX: ALU)
The Internet of Things (IoT) market is expected to grow significantly over the next 5 years. And while many companies are poised to benefit from the proliferation of interconnected devices, I believe Altium sits around the top of the list.
Altium provides software for the design of printed circuit boards (PCBs) – the foundation of all electronics. Demand for its software has also been growing, with Altium gaining market share from its competitors and rapidly increasing its recurring revenue. Additionally, Altium appears to have a strong balance sheet to help it through the current market crisis.
Nearmap Ltd (ASX: NEA)
Nearmap provides aerial imagery to a range of different business segments. However, over the past 12 months, it has seen its share price decimated. After reaching a high of $4.29 in mid-2019, Nearmap shares trended lower before dropping sharply after announcing a guidance downgrade earlier in the year.
Nevertheless, total subscriptions were still growing strongly in Nearmap's most recent report and I believe at the current price, Nearmap shares offer a fantastic risk-reward trade-off for investors.
Audinate Group Ltd (ASX: AD8)
Audinate provides digital audio networking technology and although its shares have stormed over 100% higher since its bear market lows, I still believe there is plenty of headroom. The company's technology saves end-users money and is more efficient than traditional methods. And with plenty of market share still to be won, I believe it can continue its strong growth for many years to come.
Additionally, management believes the company is well-positioned to withstand current economic conditions with $30.9 million cash on hand and no debt.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The Betashares NASDAQ 100 ETF is weighted towards tech businesses, with its constituents being the 100 largest companies listed on the tech-heavy NASDAQ exchange in the US.
Given its largest holdings include the likes of Facebook, Netflix, Apple, Amazon, Alphabet, and Intel, I believe this exchange-traded fund is a great way to gain exposure to some of the most influential global businesses. This ETF, in my eyes, is an obvious option if you're unsure which individual companies to buy.
Nanosonics Ltd. (ASX: NAN)
Nanosonics is an infection prevention specialist which sells a device called Trophon to hospitals for the purpose of sterilising ultrasound probes. The company has been rapidly growing its installed base of devices in its major market in the US and throughout the Asia Pacific, Europe and Middle East regions.
In addition, Nanosonics has also been investing in research and development to expand its product suite. This should help provide the company with future growth as it develops new devices and updated models.
Australian Ethical Investment Limited (ASX: AEF)
Australian Ethical Investment is a funds management company which is a little different. The difference is through its 'ethical' investments. It doesn't only avoid investing in companies with a negative impact, but also actively seeks out companies that do good.
This is a mindset I believe to be shared among many Australians, which is evident through its super fund being one of the fastest-growing in Australia. Australian Ethical also offers retirement plans and award-winning managed funds.
