Is your ASX share portfolio lacking form? Perhaps you're hoping to firm up your investment odds with some new additions to the field in November?
We asked our Foolish contributors to assess the current conditions and let us know which ASX shares they reckon are front runners to finish in the money long term.
Here is what the team came up with:
8 best ASX shares for November 2022 (smallest to largest)
- Airtasker Ltd (ASX: ART), $148.30 million
- Jumbo Interactive Ltd (ASX: JIN), $858.85 million
- Treasury Wine Estates Ltd (ASX: TWE), $9.35 billion
- Northern Star Resources Ltd (ASX: NST), $10.13 billion
- Xero Limited (ASX: XRO), $11.72 billion
- Pilbara Minerals Ltd (ASX: PLS), $15.21 billion
- Goodman Group (ASX: GMG), $31.97 billion
- Telstra Corporation Ltd (ASX: TLS), $44.48 billion
(Market capitalisations as of 31 October 2022)
Why our Foolish writers love these ASX shares
Airtasker Ltd
What it does: Airtasker describes itself as an online marketplace for local services, connecting people and businesses that need work done with people who want to work. Examples of work include furniture assembly, handyperson tasks, marketing, home cleaning and many more.
By Tristan Harrison: I'm impressed by the growth that this company is achieving. In the fourth quarter of FY22 (Q4), the gross marketplace volume (GMV) increased 38.3% year over year to $54.4 million and revenue jumped 30.6% to $9 million.
I'm optimistic about Airtasker's growth potential due to its international segment. United Kingdom GMV increased 114.7% year over year, while in the United States, posted tasks grew 49% quarter over quarter in Q4.
I think one of the best things about Airtasker is its gross profit margin of more than 90%. Most new revenue can be reinvested for growth.
Trading at 33 cents at yesterday's close and down around 61% in 2022, I think Airtasker shares look cheap for the long term.
Motley Fool contributor Tristan Harrison does not own shares in Airtasker Ltd.
Jumbo Interactive Ltd
What it does: Jumbo Interactive is a leading provider of online lottery services across three distinct divisions: lottery retailing, software-as-a-service (SaaS), and managed services. More than 3 million active players across Australasia, the United Kingdom, and Canada use the company's lottery software offerings.
By Mitchell Lawler: This small-cap has held a spot in my own personal portfolio for more than five years. In my opinion, the company's fundamentals have only improved during that time, making the investment case more compelling than ever.
There are three main reasons why I'd consider Jumbo Interactive a top ASX share to buy right now: defensive balance sheet, reasonable valuation, and attractive market conditions.
At the end of FY22, Jumbo held $68.93 million in cash equivalents and zero debt. This is a healthy balance sheet that can weather the storm. Additionally, larger jackpots – such as the recent record-breaking $160 million Powerball – normally mean more ticket sales.
Jumbo shares are now trading at around a 27 times price-to-earnings (P/E) ratio. Reasonable for a company that grew its earnings by 15% in the last year.
Motley Fool contributor Mitchell Lawler owns shares in Jumbo Interactive Ltd.
Treasury Wine Estates Ltd
What it does: Treasury Wine is a global wine company with an international portfolio of wine brands and viticultural assets. Its brands include 19 Crimes, Beringer, Lindemans, Wolf Blass, and the jewel in the crown, Penfolds.
By James Mickleboro: It has been a turbulent few years for this wine giant. After being effectively kicked out of the lucrative China market, the company has been forced to reallocate its premium wines to new markets.
The good news is that this has been a success and with the help of its strong-performing Treasury Americas business, Treasury Wine delivered strong earnings growth in FY 2022.
Looking ahead, Goldman Sachs is expecting more of the same and is forecasting approximately 16% net profit FY 2022-25 compound annual growth rate (CAGR). The broker also sees plenty of upside for its shares and has a buy rating and $14.70 price target on them.
Motley Fool contributor James MIckleboro does not own shares in Treasury Wine Estates Ltd.
Northern Star Resources Ltd
What it does: Northern Star is an S&P/ASX 200 Index (ASX: XJO) gold miner. The company counts among Australia's largest gold producers and has gold mines located in the geopolitically stable locations of Australia and North America.
By Bernd Struben: Northern Star has been a leading performer among the ASX 200 gold miners in 2022.
In FY22, total revenue ramped up by 35% to $3.74 billion. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) leapt 31% to $1.52 billion. And the company paid out full-year dividends of 21.5 cents per share for a current dividend yield of 2.4%, fully franked.
In August, Northern Star announced an on-market share buyback of $300 million, the first in its history. The miner's share price is up 17% over the past month, though it remains down 7% in 2022, hit by a falling gold price amid rising global interest rates.
But as rates normalise, I believe there could be some sizeable potential share price gains on offer ahead.
Motley Fool contributor Bernd Struben does not own shares in Northern Star Resources Ltd.
Xero Limited
What it does: Xero provides accounting software for small businesses. It's a market leader across New Zealand, Australia, and the United Kingdom, boasting 3.3 million subscribers at last count.
By Brooke Cooper: The Xero share price has tanked alongside other ASX tech shares this year. It's currently more than 44% lower than it was at the start of 2022.
Though, the company's revenue, average revenue per user, and EBITDA improved over the 12 months ended March.
Those improvements didn't translate into after-tax profits or free cash flow, however, as the company reinvested capital towards its future growth.
Goldman Sachs previously touted the "stickiness" of the company's product. The broker rates the stock a buy, slapping it with a $111 price target. Trading at a share price of $78.07 at market close on Monday, that represents a potential 42% upside.
Motley Fool contributor Brooke Cooper does not own shares in Xero Limited.
Pilbara Minerals Ltd
What it does: Pilbara Minerals is an ASX lithium company engaged in exploring and mining lithium in Western Australia.
By Matthew Farley: Pilbara Minerals benefits from two tailwinds that I will believe will propel its share price higher in the future. The first is that Wilsons analysts believe that lithium will exceed the US$36,000 consensus price over the long term, thanks to the global energy transition to electric vehicles and lithium-ion batteries.
In a similar vein, the second tailwind involves $20 billion that was recently earmarked in the Federal Budget to help fight climate change.
Saxo Markets strategist Jessica Amir said that part of these funds would be used to provide "cheaper infrastructure loans for investment into renewable energy". She added that Pilbara Minerals would be one of the companies "on watch" due to this development.
Motley Fool contributor Matthew Farley does not own shares in Pilbara Minerals Ltd.
Goodman Group
What it does: Goodman Group is the largest real estate investment trust (REIT) on the ASX. It's an integrated global business specialising in industrial property. It's been listed since 1995 and is still founder-led by Greg Goodman. It's grown to become one of the largest companies in the ASX 200 with a market cap of almost $32 billion. The group manages 410 properties worth $73 billion.
By Bronwyn Allen: It's rare to see a quintessential ASX blue-chip and sector leader like Goodman Group trading the way it is today.
The Goodman share price is down by about 35% in 2022 to $17.00 per share at yesterday's market close. That's only a tad higher than its 52-week low of $15.57 (its 52-week high is $26.96).
Why is it down so much? Because real estate is the second worst-performing sector on the ASX this year. Not really a surprise with interest rates going up. But remember, rates affect residential property and industrial property differently. For the long-term investor, I sense a prime 'buy the dip' opportunity.
Two top brokers see a potential 40% to 50% upside on Goodman shares. Goldman Sachs has a buy rating with a 12-month price target of $25.40. Citi also has a buy rating and a $23.50 price target.
Macquarie names Goodman among 10 ASX 100 shares likely to outperform in a bear market rally.
Motley Fool contributor Bronwyn Allen does not own shares in Goodman Group.
Telstra Corporation Ltd
What it does: A business that needs little introduction, Telstra is Australia's dominant telecommunications company. It provides a variety of mobile, internet and communications services across the country.
By Sebastian Bowen: I believe Telstra continues to move from strength to strength. The company has embarked on an ambitious restructuring plan which I think has the potential to unlock some significant value for shareholders.
Investors have already shown they are willing to give some of the telco's assets, such as the mobile towers, a pleasing pricing premium. I see no reason why this can't continue.
Further, Telstra delivered its first dividend increase in years in 2022, giving it a healthy fully-franked yield of more than 4% on recent pricing. As such, I think Telstra is a solid option to consider as we enter the penultimate month of the year.
Motley Fool contributor Sebastian Bowen owns shares in Telstra Corporation Ltd.
