With the S&P/ASX 200 Index (ASX: XJO) up over 7% already in 2023, it looks like we could soon be entering a bull market.
This could make it an opportune time for investors to look at making some investments before the market takes off.
But which ASX shares would be top options to buy before the bull charges through the door?
3 ASX shares I would buy
If I were going to load up on some ASX shares for a potential bull market, I would look at those which have good operational momentum and positive long-term outlooks, but an underperforming share price.
One ASX share that immediately comes to mind is Temple & Webster Group Ltd (ASX: TPW). Its shares have been punished over the last 12 months and are down almost by a third.
That's despite the online furniture and homewares retailer growing strongly and having an enviable leadership position in a retail category that is still in the early days of shifting online. Furthermore, with this category having relatively high barriers to entry, it appears well-placed to remain a leader in the future.
In fact, it is for this reason that Goldman Sachs is forecasting Temple & Webster's earnings before interest, tax, depreciation and amortisation (EBITDA) to grow by a compound annual growth rate (CAGR) of 22% over the next 10 years.
Coffee to the rescue
Another ASX share that I would buy ahead of the bull market is Breville Group Ltd (ASX: BRG). This leading appliance manufacturer's shares are down 20% over the last 12 months.
And while a slowing housing market and the cost of living crisis could put pressure on demand for appliances, Breville's exposure to the growing coffee market could offset this. In fact, a recent update from rival De'Longhi appears supportive of this.
In addition, management has the option to rein in its spending on research and development if it wants to trim costs and support its earnings.
A beaten-down tech star
Finally, I think Life360 Inc (ASX: 360) could be an ASX share to buy. This location technology company's shares fell heavily last year when the market sold off unprofitable tech shares.
But with Life360 growing at a rapid rate and expecting to become profitable later this year, I believe a re-rating could happen when this milestone is achieved.
Another reason to be positive is the company's huge market opportunity. In FY2022, Life360 is expecting to report revenue in the range of US$225 million to US$240 million. This compares to its total addressable market estimated by Goldman Sachs to be US$12 billion globally.
Overall, I believe including these three ASX shares in a balanced portfolio could deliver solid results for investors when the bull market comes.
