Markets improved modestly at the tail-end of last week with positive news of a US–China trade deal on the horizon. This could be the perfect time to invest into growth opportunities as global markets pick up.
Here are 3 companies I’m excited about for November.
Webjet Limited (ASX: WEB) has admittedly had a rough year. Its share price is up just 7.6% this year, currently trading for $11.40 per share. A couple of months ago Webjet’s UK partner, Thomas Cook, filed for bankruptcy. This will no doubt take a toll on the travel company’s FY20 earnings.
However, a look into Webjet’s key operations is very promising. Its B2B segment, WebBeds, has some real horsepower. Total transaction value (TTV) was up 50% in the first few weeks of FY20. This is on top of a 43% improvement in EBITDA to $124.6 million in the FY19.
Insiders have also been snapping up its shares. CEO John Guscic purchased 35,000 in September and a further 26,500 on October. Webjet now trades at a 24x price-to-earnings (P/E) multiple, which is terribly affordable compared to its $16 high in May. This is one I’ll be keeping tabs on.
Aristocrat Leisure Limited (ASX: ALL) has certainly been a winner this year. Despite a $20 billion valuation, Aristocrat’s share price has soared 50% higher. It is currently trading for $31.60 per share at time of writing.
Another impressive metric is how Aristocrat has grown its EPS by 38% annually for the last three years. Its currently winning market share in the US, and its commitment to building its digital gaming segment has been fruitful in FY2019.
Given its strong growth trajectory, I’m very interested in adding Aristocrat to my portfolio before year-end. Though a 32x P/E ratio may seem slightly overweight, it’s a decent price for a company growing at such a fast pace.
Here’s a healthcare share I haven’t stopped talking about. Nanosonics Ltd (ASX: NAN) has seen its share price rocket 144.6% higher to $6.81 since the beginning of this year.
While its share price is a high-flying 150x, I still think the company has room for growth. Nanosonics reported strong results in FY19. Operating profits before tax rose 201% higher to $18.8 million, driving revenue 39% higher.
The company is anticipating sales growth in North America to follow the same trajectory. It also has a new product in the pipeline that will start selling in 2020.
The post My top 3 ASX growth shares for November appeared first on Motley Fool Australia.
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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. 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