If you're looking to make some new additions to your portfolio this month, then I think the three ASX shares named below would be fantastic options.
I believe they are among the best shares available to investors on the Australian share market and could generate strong returns for investors over the next decade.
Here's why I would rate them five stars:
Altium Limited (ASX: ALU)
The first five-star stock to consider buying is Altium. It is a leading electronic design software provider which has exposure to the rapidly growing Internet of Things and artificial intelligence markets. These markets are underpinning the proliferation of electronic devices globally, which is driving strong demand for software subscriptions. It is also supporting the growth of its other businesses, such as workflow solution platform NEXUS and electronic parts search engine Octopart. Given the favourable industry tailwinds and its leadership position in the electronic design market, I believe Altium is well-placed to achieve its revenue target of US$500 million in FY 2025. This will be an increase of over 150% from its FY 2020 revenue.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is another ASX share that I would give five stars to. It is a donor management platform provider for the faith sector which has been growing at a very quick rate over the last few years. This was certainly the case in FY 2020, with the pandemic appearing to accelerate the shift to a cashless society and ultimately the adoption of its platform. In FY 2020 Pushpay reported a 33% increase in revenue to US$127.5 million. And thanks to its operating leverage, its earnings grew at an even quicker rate. More of the same is expected in FY 2021, with management forecasting the doubling of its operating earnings. Pleasingly, this is still only scratching at the surface of its overall market opportunity.
ResMed Inc. (ASX: RMD)
A final five-star stock to consider buying is ResMed. I'm a big fan of the sleep treatment focused medical device company due to its very positive long term outlook. This is due to its world class products, intuitive software solutions, and its rapidly growing ecosystem. At the end of FY 2020, ResMed's digital health ecosystem had grown to over 12 million cloud connectable medical devices. This provides it with strong recurring revenues and an invaluable amount of high quality data. Combined, I believe ResMed is well-placed to win a greater slice of its target market over the next decade and beyond. This is a very big market and includes 936 million people with sleep apnoea globally, 380 million people who suffer from chronic obstructive pulmonary disease (COPD), and over 340 million people living with asthma.
