2020 is just around the corner, so I think now is a good opportunity to think about what shares are going to do well next year.
I think these three shares are definitely worth watching for next year:
Webjet Limited (ASX: WEB)
Webjet is a leading travel business which has a consumer facing business and a business to business called WebBeds.
WebBeds has a very exciting future with management expecting that the earnings before interest, tax, depreciation and amortisation (EBITDA) margin can reach 50% over time. That’s before even considering the revenue growth in FY21 and onwards.
The failure of Thomas Cook is going to be a hit to FY20 earnings but excluding that, organic growth could be up to 24% in the upcoming result. Considering it’s only trading at 14x FY21’s estimated earnings I think it looks very good value.
Indeed, private equity is sniffing around the travel business so it could get a very big share price boost if an offer comes through.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a donation payment business that enables people to give money to charities or not-for-profit organisations electronically.
The company’s main clients at the moment are churches in the US, which sees an attractive level of donations given every year – giving useful annual revenue to Pushpay.
Pushpay announced an acquisition this week, a church management system. It diversifies Pushpay’s earnings and but more importantly it means the combined business can offer a stronger offering to customers.
I think the organic growth plus the acquisition could lead to good revenue growth, particularly with an increase of revenue per client.
Bubs Australia Ltd (ASX: BUB)
Bubs is an infant formula company with a focus on goat milk produced, but it’s also launching a grass fed cow milk infant formula product.
Over the past year Bubs has done a good job of securing its production and manufacturing supply chain which improves its reliability and means it can choose to invest in expansion when the time is right.
The Bubs share price has fallen around 30% since the end of September 2019, yet the business is still growing at a strong rate. In the first quarter of FY20 Bubs reported that its revenue grew by 58%.
I think all of these three shares could experience excellent share price and revenue growth in 2020 with rising profit margins. I’m particularly excited about what Bubs can achieve over the next few years.
The post 3 ASX shares poised for huge growth in 2020 appeared first on Motley Fool Australia.
In my opinion, these top growth shares could also definitely be worth watching in 2020.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended BUBS AUST FPO, PUSHPAY FPO NZX, and Webjet Ltd. 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. 2019