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If you’re looking to invest $1,000 into the share market right now, then there are a lot of quality options to choose from.

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Three ASX shares that I think would be smart choices are listed below. Here’s why I like them:

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a2 Milk Company Ltd (ASX: A2M)

A2 Milk Company is a New Zealand-based infant formula and fresh milk company. It differentiates itself from the competition by focusing purely on A2-only products. The company claims that these are easier to stomach than regular dairy products. This unique selling point has gone down particularly well in China, where dairy intolerance is high. Strong demand in this key market has underpinned exceptionally strong sales and earnings growth over the last few years. I’m confident that there will be more of the same in the years to come. This could be supported by new product launches and value accretive acquisitions.

REA Group is the operator of the website and several international real estate listings websites. Although the local housing market is struggling at the moment because of the pandemic, I’m optimistic that volumes will bounce back strongly in 2021. Especially given forecasts for a rebound in house prices next year. I expect this, combined with its cost cutting and strong pricing power, to lead to solid profit growth in the second half of the current financial year and beyond.

ResMed is a sleep treatment focused medical device company. I believe it can grow its earnings at strong rate over the next decade thanks to its massive market opportunity. Management estimates that there are 936 million people with sleep apnoea globally and over 380 million people who suffer from chronic obstructive pulmonary disease (COPD). Due to the quality of its hardware and software solutions, I expect it to benefit greatly as more and more of these sufferers are diagnosed and seek treatments.

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Returns As of 6th October 2020

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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