If you’re looking for strong long-term returns, then I think the five ASX shares listed below would be great options for investors.
These five shares have been growing their earnings at a strong rate and look well-positioned to continue doing so for many years to come. Here’s why I would buy them:
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider. I believe it is perfectly positioned to deliver above-average earnings growth over the next decade thanks to the rapidly growing Internet of Things (IoT) market. Statista is forecasting the IoT market to be worth US$1.6 trillion in 2025, up from US$212 billion in 2019. I expect this to lead to increasing demand for its award-winning software.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Domino’s is another company that looks well-placed to grow strongly in the future. This is thanks to its global store expansion plans. Domino’s recently reiterated its target of growing its store network by 7% to 9% per annum for the next 3 to 5 years. Combined with its same store sales growth guidance of 3% to 6% per annum over the same period, I expect this to lead to strong profit growth.
Kogan.com Ltd (ASX: KGN)
Another growth share to consider is Kogan. I think the fast-growing ecommerce company is well-placed due to the continued rise in online shopping and the growing popularity of its Kogan-branded products and Marketplace. Its expansion into potentially lucrative verticals such as energy and mobile should also be supportive of its growth.
SEEK Limited (ASX: SEK)
I expect this job listings company to be a strong performer over the next decade thanks to its investments in growth opportunities. Combined with its strong core business and growing international operations, I feel SEEK is well-placed to achieve its aspirational revenue target of $5 billion by FY 2025. This compares to the revenue of $1,537.3 million it recorded in FY 2019.
Webjet Limited (ASX: WEB)
Another quality growth share to consider is Webjet. I think it has enormous potential due to its popular brands, the shift to online booking, and acquisition opportunities. Another positive is management’s focus on increasing its margins significantly over the coming years. This should be supportive to its earnings growth over the medium term.
The post 5 ASX growth shares for strong potential returns in 2020 and beyond 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 Altium. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited, Kogan.com ltd, SEEK Limited, 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. 2020