There are some ASX shares that I’d buy for my portfolio in September 2020. Investors need to think carefully about their portfolio due to COVID-19 and the United States election.
It’s difficult to know where the share market is going to go next with so much uncertainty. COVID-19 can quickly change the direction of the economy.
I’m cautious about a number of industries that may still see a sting in the tail from the pandemic impacts.
With that in mind, these are three ASX shares I’d buy in September:
Redbubble Ltd (ASX: RBL)
Redbubble operates two sites (Redbubble and TeePublic) for selling artist-designed products like apparel, stationery, housewares, bags, wall art and so on.
Investors loved the FY20 result. Since 21 August 2020 the Redbubble share price has risen 9.3%. But since 23 March 2020 the Redbubble share price has actually climbed 760%.
I’m not expecting 760% growth in September, but I do think there is more growth to come from Redbubble. In FY20 Redbubble managed to grow its marketplace revenue by 36% and gross profit rose 42%.
Online retailing has pleasing network effects and the ability to keep growing margins. In FY20 it generated free cashflow of $38 million, so Redbubble is only valued at 28 times its trailing free cashflow.
July 2020 saw marketplace revenue growth of 132% and a similar level for the first two weeks of August. I believe it could be one for the watchlist (or your portfolio)
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is another very exciting ASX share in my eyes.
It helps big and medium American churches receive digital donations. It also offers those churches a livestreaming service so they can connect with their congregation.
FY20 revenue increased by 32% to US$129.8 million, the gross profit margin rose to 65% and EBITDAF rocketed 1,506% to US$25.1 million (click here to learn what EBITDAF means, the F stands for foreign currency).
I believe that Pushpay is one to watch because FY21 is expected to be another bumper year with EBITDAF now likely to be between US$50 million to US$54 million. It could easily be better than that as Pushpay regularly increases its guidance.
Using Commsec’s forecast numbers, Pushpay is valued at 36 times the estimated earnings for FY21.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk is still one of the best growth shares around in my opinion.
Infant formula continues to be in high (and growing) demand across New Zealand, Australia and Asia.
I’ve been impressed how A2 Milk has continued to grow its distribution footprint to thousands of more stores in China and the US (where liquid milk is the focus).
It’s one of the few ASX shares which has truly global aspirations. Canada is the next target, which is a larger market than Australia with its bigger population.
A2 Milk is expecting “continued strong growth”, yet it’s still investing heavily for growth and improved operational capability.
Looking at the Commsec estimate, A2 Milk is priced at just 30 times the estimated earnings for FY20.
There are also other ASX growth shares out there that could be exciting buys this month.
