A new year is just around the corner, so what better time to take a look at your portfolio and see if there are any additions that could take it to the next level in 2020.
To help you on your way, I’ve picked out three quality growth shares that I believe are well-placed to be market beaters next year.
Here’s why I think it is worth looking at adding them to your portfolio:
Altium Limited (ASX: ALU)
Altium is a printed circuit boards-focused integrated software platform provider. These are found in almost all electronic devices, especially those that connect to the internet. Thanks to the Internet of Things boom, demand for its software continues to grow. So much so, it is aiming to increase its revenue to US$500 million by FY 2025. This compares to its FY 2020 guidance of US$205 million to US$215 million.
Nearmap Ltd (ASX: NEA)
Nearmap is an aerial imagery technology and location data company with operations in the ANZ and North American markets. It has been growing at a very strong rate in both markets over the last couple of years. Pleasingly, I believe it is well-positioned to continue this trend in FY 2020 and beyond. This is thanks to increasing demand, its leadership position, and the release of new products. Management recently advised that it expects its annualised contract value (ACV) to be in the range of $116 million to $120 million in FY 2020. This represents growth of 28.6% to 33% on FY 2019’s ACV of $90.2 million.
Webjet Limited (ASX: WEB)
Webjet is an online travel booking company. I believe it is well-positioned for growth thanks to the continued shift to online booking, its increasingly popular brands, and management’s “8/4/4” profitability target by FY 2022. This essentially means an EBITDA margin of 50%, up from 34% in FY 2019. Thanks to its growing WebBeds business and its RezChain blockchain technology, I believe it can achieve this target and drive strong profit growth over the coming years. This could make it a great long term option for investors.
The post 3 quality ASX shares that could provide monster returns in 2020 appeared first on Motley Fool Australia.
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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 Nearmap Ltd. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended 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