November 2020 has been a spectacular month for the ASX. A lot more investors have thus been enticed into entering the stock market and we have had plenty of people ask us what our pick is for the shares to buy now.
With a stimulus and news of a vaccine, markets have soared and there seems to be a paradigm shift – the winners of the lockdown are being sold, and the losers, that is, the brick and mortar cyclical businesses are once again hot. We are of the opinion that this will continue to be a trend going into the holiday season. Let’s get straight into it then – here is our top 5 ASX shares to buy for December:
An e-commerce stock that has returned 322% year-to-date. It is an online marketplace where artists can sell their work – anywhere from paintings to mugs to apparel printed with their art. It is a fairly large marketplace now and the firm has had tailwinds driven by consumers starting to buy into online shopping during the pandemic. With spending high during the holiday season, we are expecting Aussies to look for slightly less expensive gifting options than otherwise, given the money crunch situation with high unemployment rates. An outperformance in sales during the quarter may thus be in order, making RBL a share to buy for most investors.
A retailing giant that needs no introduction in the land down under. Want to buy anything for your home? Head over to JB Hi-Fi. With the pandemic restrictions and the government easing financial pressure with tax cuts and jobkeeper payments, Aussies are now buying things for their home without having to go to JB Hi-Fi. A mobile and internet is all you need, and certainly one you have if you are reading this blog. In the September quarter, JBH posted a 27% growth in sales. In the previous corresponding period, it was just 4.7%. In addition to the tailwinds in retail, JBH has dipped since the highs of October and looks it is providing an opportunity for investors to get in and make it one of their asx shares to buy.
Coal is not finished just yet. Yes, renewables are the future, however, coal still has a vital role to play while the shift towards renewable energy is made in the following decades. This gives plenty of room for investors to take advantage of the high coal prices and increased economic activity increasing the demand for the highly controversial commodity. WHC has performed well off late and we even have our analysts following it religiously. The news of a vaccine and countries starting to recover from the pandemic has added tailwinds to the business and this looks like a share to buy now.
Mineral Resources is the biggest firm in this list of the top lithium stocks. They have a market capitalisation of $5.84 billion and currently trade at $31.65 a share. MIN has returned 91.82% year-to-date and it also has a dividend yield of 3.16%. Mineral Resources operates in the iron ore and hard rock lithium sectors and generates 65% of its revenues from Singapore. While Australia and China make up the rest. The latest quarter update reported an increase in mining services volumes by 24% compared to the previous corresponding period. The guidance forecast for FY2021 volumes have been increased from 20% – 25%. The performances of MIN have thus been stellar and is a hot stock in the lithium mining industry. Lithium is on the watchlist of most investors given the tailwinds and MIN is certainly a share to buy if you are looking at the commodity.
It is well known that we have been bullish on Nextdc for a long time. The ASX-100 company is a darling of the technology sector in Australia, and it is at the centre of the new digital economy that we are quickly migrating towards. Data Centres are like real-estate for digital businesses. Hence, the firm has to spend money to acquire assets and provide their clients the sought after real-estate on the internet. With facility expansions already under expansion and high growth rates expected, Nextdc is an asx share to buy now, especially given the recent pull-back.
December is again a crucial month as the shift in sectors to invest in is likely to continue. Few sectors may even outperform and warrant a higher valuation going into the new year. Find out what asx shares we are holding in our portfolios by contacting us via phone or email.