This week, we bid farewell to winter…and another tumultuous ASX earnings season. So now, looking ahead to the brighter days of spring, hopefully the stock market can also deliver healthy new growth.
Armed with a wheelbarrow full of information on which publicly traded companies have been thriving and floundering, we asked our Foolish contributors to let us know which ASX stocks they think are worth planting some cash at the moment.
This is what the team came up with:
Top 8 ASX Stocks for September 2022 (Low to High)
(Market caps as of August 31, 2022)
Why Our Dumb Writers Love These ASX Stocks
DroneShield Ltd
What it does: DroneShield specializes in designing and developing products to detect and disable unmanned drone threats.
By Aaron Teboneras: DroneShield’s stock price sank more than 19% on Wednesday, and I think the stock is now trading at a bargain price.
The substantial drop came on the heels of DroneShield’s half-year results, which were released after the market close on Tuesday. In its statement, the company reported that it had achieved revenues of $3.6 million, 6% less than the previous period ($3.9 million delivered in the second half of 2021).
However, taking a closer look at some other key metrics, the company recorded cash receipts of $5.2 million in the first half of 2022. This represents a 21% growth compared to the $4.3 million recognized in the second half of 2021.
DroneShield said that the difference between revenues and cash receipts received in the first half of 2022 was related to payments received in advance.
The counter-drone market is growing rapidly with a projected total addressable market of around $5.9 billion by 2026.
In its Q2 2022 update, DroneShield also noted the highly favorable macro environment that has emerged from the Russian war in Ukraine, with both sides demonstrating extensive use of small drones.
With this in mind, defense budgets globally, including that of the Australian government, have increased rapidly.
Motley Fool contributor Aaron Teboneras owns shares in DroneShield Ltd.
Airtasker Ltd
What it does: Airtasker operates a local online services platform that helps people who want to complete a task connect with those who want to get the job done. Furniture assembly, moving services, website design, handyman services, and photography are just a few examples of the categories offered.
By Tristan Harrison: I look for attractive ASX growth stocks that have attractive value.
Airtasker’s share price is down around 50% in 2022, but the company is delivering solid double-digit growth. In FY22, its gross market volume increased 23.8% to $189.6 million, while revenue increased 18.4% to $31.5 million.
Airtasker also reported that, excluding research and development (R&D) costs, it had positive earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.3 million at the ‘Australian market and operations’ EBITDA level. central office’.
I am also excited about the international potential of the company. In the US, in the fourth quarter of FY22, the number of tasks posted grew 49% quarter-on-quarter.
Motley Fool contributor Tristan Harrison does not own any shares in Airtasker Ltd.
Alcidion Group Ltd
What it does: Alcidion provides software solutions to the healthcare industry to improve patient outcomes. The company’s flagship product is known as Miya Precision, which incorporates everything from bed management to patient monitoring.
By Mitchell Lawler: Alcidion released its FY22 annual report earlier this week, showing the continuation of the company’s tremendous growth momentum.
During the 12 months, the software provider achieved record revenue of $34.4 million, an increase of 33% from the previous year. Notably, the time frame included the contribution of the full half of Alcidion’s acquisition of Silverlink.
Ultimately, the two most promising indicators to me of recent results are the company’s decreased reliance on Australian and New Zealand revenue, reduced geographic risk, and further improvement in the composition of recurring revenue, which reached around 68%.
The current valuation could be attractive if management continues to deliver on customer and geographic expansion at this rate.
Motley Fool contributor Mitchell Lawler does not own shares in Alcidion Group Ltd.
Lovisa Holdings Ltd.
What it does: Jewelry and accessories retailer Lovisa is a staple in many shopping malls across Australia and the world. In addition to its extensive network of physical stores, Lovisa operates a successful e-commerce business.
By Brooke Cooper: The last fiscal year was a ripper for Lovisa. Its revenue increased 59%, it posted a profit of $59.9 million and entered four new markets. Also more than doubled his ending dividend at 37 cents per share.
And it’s not expected to slow down anytime soon. Andrew Tang, Morgans analyst, nicknamed company profits a “gold mine”, saying:
“What was even more remarkable than the result itself was the phenomenal scale of [Lovisa’s] ambition.
“Growth momentum is expected to pick up in FY23, with the addition of more new markets… looking more than likely. In our opinion, it will not stop there.”
Motley Fool contributor Brooke Cooper does not own shares in Lovisa Holdings Ltd.
Lithium Core Ltd
What it does: Core Lithium is a resource explorer with a key focus on lithium. Its Finniss lithium project, located just south of Darwin Harbor in the Northern Territory, is under development.
By Bernd Struben: Core Lithium has been a stellar performer in just about any long-term time frame you choose. The shares hit an all-time high of $1.62 on August 15. At press time, Core Lithium shares are up about 122% in 2022 and 288% in 12 months. But I don’t think the ship has sailed back to the good old days yet.
In July, Core Lithium reported that its finnish construction was on track to export the first lithium by the end of 2022. This comes in an environment where lithium demand and prices are soaring amid the global shift to electric vehicles and battery grid storage.
UBS recently updated its lithium price forecasts by 37%. UBS waits overall demand for critical battery metal to skyrocket 700% by 2030.
Motley Fool contributor Bernd Struben does not own any shares in Core Lithium Ltd.
Lynas Rare Earths Ltd
What he does: Lynas has experience integrating rare earth metals from mine to metal. It has a portfolio of assets focused on the exploration and production of rare earths.
By Zach Bristow: China currently supplies about 80% of the world’s rare earths. But recently, rising geopolitical tensions have highlighted the world’s need to diversify its supply chain. According to its website, Lynas “occupies a unique position as the only major large-scale producer of separated rare earths outside of China.”
It also has a considerable first-mover advantage over its ASX competitors. I think this puts the company in a prime position to capitalize on industry tailwinds that could see demand for Australian rare earths soar in the coming years. This optimism was echoed in research by Jevons Global in a recent note.
Lynas shares are also rated a buy by four of seven brokers, with a consensus price target of $9.89 per share, according to Refinitiv Eikon data. At the time of writing, Lynas is trading at a trailing P/E ratio of 14.4x and is posting a free cash flow return of 3.5% and an earnings return of 6.7%. .
Lynas’ share price closed Wednesday’s session about 3% higher at $8.88.
Motley Fool contributor Zach Bristow does not own any shares in Lynas Rare Earths Ltd.
sur32 ltd
What it does: South32 is a diversified mining company with extensive global operations in base metals such as lead, aluminum, copper, zinc and nickel.
By Sebastian Bowen: It might well be worth checking out the ASX 200 South32 mining company this September, even though the company has already had a pretty stellar run in 2022 so far. South32’s earnings last month contained a whopping 362% increase in annual dividends to 22.7 cents per share. That’s on top of special dividends worth another 3 cents on the dollar.
But ASX broker Morgans reckons the stock could rise to $5.50 in the next 12 months, giving investors about a 30% advantage over the current price of $4.15. The broker also expects the company to deliver even higher dividends for FY23. As such, I think South32 stock is worth considering as we enter the spring.
Motley Fool contributor Sebastian Bowen does not own any shares in South32 Ltd.
limited CSL
What it does: CSL is a global biotechnology company that develops and delivers innovative therapeutics and vaccines that save lives, protect public health, and help people with life-threatening medical conditions live full lives.
By james mickleboro: I think CSL stock could be a quality option for investors in September.
The last two years have been difficult for the company due to the impact of COVID-19 on plasma collections. Since plasma is a key ingredient in CSL’s therapies, a lack of supply meant the company was paying donors above the odds, putting pressure on margins.
The good news is that plasma collections are now at pre-COVID levels. And with its new collection technology expected to deliver higher yields, CSL’s margins are likely to start improving again in the near term.
Combined with strong demand for its immunoglobulins, the acquisition of Vifor Pharma and new product launches on the horizon, I think the future looks very bright for the company.
CSL’s share price closed Wednesday at $293.54, down 5% from last year.
Motley Fool contributor James Mickleboro does not own shares in CSL Limited.
Leave a Reply