If you're looking for additions to your portfolio in June, then I think the three ASX 200 shares listed below would be great options.
I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.
Here's why I rate them as five-star stocks:
Appen Ltd (ASX: APX)
The first five-star stock I would consider buying is Appen. Through its million-plus team of crowd-sourced experts, Appen prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. In respect to the latter, Appen helped the tech giant develop its intelligent assistant, Siri. Given how important AI is becoming, I expect demand for its services to continue to grow over the next decade. This should underpin strong earnings growth for many years to come.
Nanosonics Ltd (ASX: NAN)
Nanosonics is another ASX 200 share that I would give five-stars. The infection control specialist has been growing at a very strong rate over the last few years thanks to the growing installed base of its trophon EPR disinfection system for ultrasound probes. The beauty of this product is that as its installed base grows, so too does the recurring revenue from the consumables it requires. While this product alone could drive strong earnings growth for the next decade thanks to its massive market opportunity, there will soon be more products in its portfolio. Nanosonics is planning to launch several new secretive products targeting unmet needs in the coming years.
REA Group Limited (ASX: REA)
A final five-star stock to consider buying is REA Group. It is a digital advertising company that operates Australia's leading property websites. It also operates real estate websites in Europe, Asia, and the United States. While market conditions are tough at the moment, I expect the tide to turn once the crisis passes. When it does, I expect the realestate.com.au operator's earnings growth to accelerate and drive its shares higher. All in all, I think REA Group is one of the best buy and hold options on the ASX.
