If you’re looking to invest in shares with strong growth potential, then the three listed below could be good options in the 2020s.
I believe all three could grow their earnings at an above-average rate and generate strong returns for investors over the period.
Here’s why I like them:
Freedom Foods Group Ltd (ASX: FNP)
I think this diversified food company could be a good option for investors. Over the last couple of years it has been investing heavily in its future growth. With this investment period now coming to an end, it looks well-placed to deliver very strong earnings growth over the coming years. Especially given the increasing demand its Plant Based Beverage and Dairy Nutritionals businesses continue to experience thanks to the healthy eating trend. I expect these divisions to be key drivers of growth for over the next decade.
Nanosonics Ltd (ASX: NAN)
Nanosonics is one of my favourite buy and hold options on the Australian share market. I’m a big fan of the infection control specialist due to its industry-leading trophon EPR disinfection system for ultrasound probes. This product has been growing its market share at a rapid rate in recent years, but still has plenty more room for growth. Which is great news for Nanosonics because it not only generates revenue from unit sales, but also recurring revenues from the consumables that it uses. This means that as its market share grows, so too do the recurring consumable revenues. Another positive is the upcoming launch of a series of secretive products. If these are half as successful as the trophon EPR system, then the future will be very bright for Nanosonics and its shareholders.
Treasury Wine Estates Ltd (ASX: TWE)
Another option for investors to consider buying is Treasury Wine Estates. The global wine giant has been growing its earnings at a solid rate over the last few years thanks to strong demand for its wines in China and its premiumisation strategy. This strong form is expected to continue in FY 2020, with management providing guidance for reported EBITS growth in the range of 15% to 20%. This is expected to be driven by a combination of continued top line growth, premiumisation, and operational efficiency.
The post 3 top ASX shares to own for strong potential returns 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 Nanosonics Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended Freedom Foods 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