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Top ASX shares to buy in May 2021

Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in May. Here’s the lowdown…
The post Top ASX shares to buy in May 2021 appeared first on The Motley Fool Australia. –

asx shares to buy in may represented by wooden blocks spelling out hello may

Looking for a Mother’s Day gift with a difference? How about some ASX shares!

With the Autumn leaves well and truly gathering, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in May.

Here is what the team have come up with…

Tristan Harrison: Kogan.com Ltd (ASX: KGN) 

Short-term market selloffs can lead to long-term opportunities. The recent sell-down of Kogan shares was caused by inventory problems, higher costs and slower growth. The business is now cycling against strong sales a year ago during the worst of COVID-19. 

But today’s lower share price may more than make up for the current issues. Revenue continues to climb nicely, and the company is investing in initiatives that will grow profit margins in the future.  

In the shorter term, investors will benefit from the solid dividend that Kogan continues to pay to shareholders.  

Motley Fool contributor Tristan Harrison does not own shares of Kogan.com Ltd. 

Bernd Struben: Cochlear Limited (ASX: COH)

Share market investors seeking to add to their holdings in May might like to consider Cochlear. Based in Sydney, the company produces and sells implantable hearing devices across more than 20 nations.

The Cochlear share price remains down around 9% from its pre-pandemic highs of 7 February 2020. But the long-term price chart reveals a lengthy track record of growth dating back to 1999. And this ASX share has been rebounding strongly. Year to date, the Cochlear share price is up by around 18%.

In February 2021, the company offered underlying net profit guidance for the full financial year of $225 to $245 million, a 46% to 59% increase over its 2020 profits.

Motley Fool contributor Bernd Struben does not own shares of Cochlear Limited

Mitchell Lawler: Megaport Ltd (ASX: MP1)

Simplistically, Megaport is a technology company that offers software for managing network connections. With a network spanning 741 enabled data centres worldwide, the company delivers on-demand connectivity to hundreds of global services.

Most recently, Megaport reported third-quarter revenue growth of 25% year on year to $19.58 million. Despite the double-digit growth, the company remains one of the most heavily shorted shares on the ASX, with 6.8% of short interest.

Analysts over at UBS have a buy rating on the company’s shares, along with a $17.10 price target. At the time of writing, Megaport shares are swapping hands at $14.29 apiece.

Motley Fool contributor Mitchell Lawler does not own shares of Megaport Ltd.

James Mickleboro: CSL Limited (ASX: CSL)

The CSL share price has been out of form in 2021 and is down approximately 20% from its pre-COVID highs.

This has been driven by concerns over plasma collection headwinds. As plasma is a core ingredient in many of the company’s therapies, it appears inevitable that margins will be impacted in the near future. However, the good news is that this headwind should only be temporary.

In fact, Citi believes collections in the United States will return to 2019 levels during the second half of 2021. For this reason, the broker recently put a buy rating and $310.00 price target on its CSL shares.

Motley Fool contributor James Mickleboro does not own shares of CSL Limited.

Brendon Lau: Sandfire Resources Ltd (ASX: SFR)

Sandfire’s March quarter production update arguably puts the ASX copper miner in a good position to outperform. Sandfire managed to do what many of its peers could not – control costs. Costs came in 8% better than what Morgan Stanley was expecting, and the broker reiterated its “overweight” recommendation on the stock with a 12-month price target of $7.50 a share.

The high copper price and the tight supply outlook for the commodity could also provide extra tailwinds. At the time of writing, the Sandfire share price is trading at $6.62 after falling by around 5% on Friday.

Motley Fool contributor Brendon Lau owns shares of Sandfire Resources Ltd.

Sebastian Bowen: VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

This ASX ETF has only been listed since September last year. But it has already returned more than 11% in price appreciation since. ESPO focuses on the eSports and gaming space, an area highly underrepresented on the ASX.

Gaming and eSports are a booming industry, and its growth could still have plenty of runway yet. ESPO holds some of the world’s largest gaming giants, such as Tencent, Activision Blizzard and Electronic Arts Inc. As such, this ETF could be a great way to diversify a portfolio for a high-growth future.

Motley Fool contributor Sebastian Bowen does not own shares of VanEck Vectors Video Gaming and eSports ETF.

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More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Activision Blizzard and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Electronic Arts. The Motley Fool Australia has recommended Activision Blizzard, Cochlear Ltd., Kogan.com ltd, MEGAPORT FPO, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top ASX shares to buy in May 2021 appeared first on The Motley Fool Australia.

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