So, you have some spare cash to spend on shares right now? That’s great!
Whether you are getting into the share market for the first time, or you would like to add to your current share portfolio, here are 2 ASX shares I think are well worth considering – both have strong futures ahead of them with fast-growing overseas operations.
REA Group Limited (ASX: REA)
REA Group has held a dominant position in the Australian online classifieds property market now for over a decade. Its footprint spans 3 continents with businesses in Australia, Asia and North America.
In Australia, it continues to be the clear market leader over rival Domain Holdings Australia Ltd (ASX: DHG). The average monthly site visits to REA Group’s realestate.com.au across all platforms are nearly 3 times that of Domain.
Despite the downturn in the housing market for the 2 years up to mid-2019, REA Group’s share price has continued to perform well, up over 50% since last April.
REA Group’s FY19 results saw revenue growth of 8% to $875 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 8% to $501 million.
For the 3 months ending September 2019, REA Group recorded a 9% revenue decline and an EBITDA decline of 14%. Although REA Group’s Q1 FY20 financial results were disappointing, I see this setback as only temporary. With the housing market now showing signs of recovery, I believe that revenue growth is likely to pick up during the remainder of FY20, driven by its local and fast-growing overseas operations.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global is a leading global developer and provider of software solutions for the logistics industry, and is a member of Australia’s WAAAX tech share consortium. Its customers include more than 12,000 of the world’s logistics companies across over 150 countries.
As our global economy continues to grow, logistics has grown more complex. This is where WiseTech Global has carved out a very successful and strong niche in the global market.
WiseTech Global continues to grow at a rapid pace, in both size and scale via organic growth and targeted acquisitions. It has made 17 acquisitions across Europe, Asia, Australasia and the Americas since 2018.
For the 12 months ending June 2019, WiseTech Global recorded revenue of $348 million and net profit after tax of $54 million, a 57% and 33% annual increase, respectively. WiseTech Global has achieved a 49% compound annual growth rate over the last 4 years and has maintained a very strong profit margin of 48%.
The post 2 ASX shares I would buy with $2,000 appeared first on Motley Fool Australia.
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Motley Fool contributor Phil Harpur owns shares of REA Group Limited and WiseTech Global. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended REA Group Limited. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020