With interest rates at ultra-low levels and looking likely to remain that way for the foreseeable future, I continue to believe investors would be better off putting any excess funds into the share market.
But where should you invest these funds? Here are three top shares I would invest $5,000 into in July:
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Bubs Australia Ltd (ASX: BUB)
The first share to look at is this goat's milk-focused infant formula and baby food company. For a long time Bubs was delivering strong sales growth but posting significant losses. This led to the company burning through cash at a rapid rate and needing to tap the market for additional funds. Pleasingly, the company appears to have reached an inflection point and recently reported positive operating cashflow. I'm optimistic Bubs will build on this in the coming 12 months and start growing its earnings at a very strong rate.
PolyNovo Ltd (ASX: PNV)
Another option for a $5,000 investment could be PolyNovo. It is an exciting medical device company behind the NovoSorb technology. NovoSorb is a biodegradable material that can be used to aid the repair of bone fractures and damaged cartilage, and in skin grafts. The key product in its portfolio is the NovoSorb Biodegradable Temporising Matrix (BTM) product, which is a wound dressing intended to treat full-thickness wounds and burns. I believe this product, which was developed at CSIRO, is well-placed to capture a growing slice of a $1.5 billion market. And looking ahead, the company believes there is an opportunity to use NovoSorb in the hernia and breast treatment markets. Combined, these give PolyNovo a $7.5 billion addressable market.
Pro Medicus Limited (ASX: PME)
A final share that I think could be worth considering is Pro Medicus. It is a healthcare technology company that provides radiology IT software and services. It has a number of products on offer, but the one that I'm most excited about is the Visage 7 Enterprise Imaging Platform. It delivers fast, multi-dimensional images which are streamed via an intelligent thin-client viewer. A number of major healthcare companies are using this platform, which I believe is a testament to its quality. In addition to this, management recently revealed that it has a number of sales opportunities in its pipeline that it is working on. If it can close these deals, it could underpin strong earnings growth over the coming years.
