Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

I like these 3 ASX shares for 2021

We're almost into 2021 and there are some ASX shares that I think could be good ideas for 2021, including Pushpay Holdings Ltd (ASX:PPH).

We’re almost into 2021 and there are some ASX shares that I think could be good ideas for 2021.

This year has been an enormous year for almost every sector on the ASX. But the news of a COVID-19 vaccine seems to be reversing some of those movements.

I think that some of these ideas could be worth considering:

Pushpay Holdings Ltd (ASX: PPH)

For me, Pushpay could be one of the most exciting ASX shares around at the moment as a digital giving business. When you can find a profitable business that’s rapidly increasing its margins, it’s a powerful combination.

In Pushpay’s FY21 interim result it generated US$13.4 million of net profit, which was more than double the profit of the prior corresponding period. It also reported that its EBITDAF margin (EBITDA explained – F is foreign currency) rose from 17% to 31%.

I don’t expect profit to keep doubling every year for the next decade, but I think Pushpay’s medium is exciting, with its core revenue being quite consistent (you’d think that people will keep donating to their church each year).

The shift to digital payments seems like an unstoppable trend to me, I don’t think it’s all going to reverse once COVID-19 goes away, particularly because of all the other features that Pushpay’s software gives its users.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is a pretty unloved ASX share at the moment. The A2 Milk share price has fallen all the way to just $13. It was around $20 in July.

The ongoing trade dispute between Australia and China, as well as international visitor restrictions is causing investors to worry about the Chinese consumer channel.

However, I think there’s a few things to remember. Firstly, A2 Milk is a New Zealand business, not an Australian one, so I don’t think A2 Milk needs to worry about tariffs any time soon. Once international borders start opening up, perhaps during 2021, I think A2 Milk could see higher demand from the daigou, though there’s a worry that A2 Milk may sacrifice margin to reactivate this channel.

A2 Milk is working hard at growing its local Chinese business, which may be able to do enough to replace those lost earnings. The company is growing strongly in North America, particularly in the US, and this could help re-energise the A2 Milk share price.

Humm Group Ltd (ASX: HUM)

Humm is an interesting one – it’s in that buy now, pay later space but it’s actually profitable. The company actually recently provided guidance that it’s expecting its FY21 first half profit to be higher than what was generated in the prior corresponding period.

It’s winning new merchants with its core business. Some of its biggest FY21 partnerships include Australian Pharmaceutical Industries Ltd’s (ASX: API) Priceline, Kogan.com Ltd (ASX: KGN) and Michael Hill International Ltd (ASX: MHJ).

Humm has also announced a global partnership with MasterCard and it is also part of the Douugh Ltd (ASX: DOU) expansion into the US.

The company is building the foundations for growth in several different directions.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content