If you have some spare cash to invest in ASX shares, I believe that both Vocus Group Ltd (ASX: VOC) and SEEK Limited (ASX: SEK) could be good options.
Here’s why both ASX shares are in my buy zone right now:
Vocus
Vocus may not be as well known as other Australian telcos such as Telstra Corporation Ltd (ASX: TLS), Optus and TPG Telecom Ltd (ASX: TPG). However, Vocus has proven to be one of Australia’s most successful and profitable telcos for over two decades now.
Over the years, Vocus has evolved to become a specialist fibre and network solutions provider. Vocus’ offerings include broadband, fibre, data centre services and Unified Communications. Previously only servicing the enterprise and corporate markets, Vocus now also services the retail sector as a result of mergers and acquisitions.
The company’s retail division has struggled in recent years, and this has led to some recent lackluster performance in the Vocus share price. Its share price has been trending sideways for over 3 years now. However, I believe its 3-year turn-around strategy is getting Vocus back on the right track. I feel Vocus is now well positioned for above average growth over the next few years.
Seek
The financial performance, and in turn, the share price, of Australia’s leading online employment portal, Seek, tends to be highly correlated with overall conditions in the local employment market. When employment indicators take a turn for worse, the Seek share price is often impacted. This was clearly seen in the first phase of the coronavirus pandemic, with the Seek share price falling by around around 50% to $11.95 between mid-February and late March. Since then, the Seek share price has managed to regain most of those losses. However, with the local employment market still looking very rocky right now, I still see potential for Seek’s share price to climb higher in the next 6 to 12 months.
Equally as important over the longer term, I believe Seek remains a very solid company with strong growth prospects. While growth in Australia and New Zealand has slowed down, Seek holds a very dominant position in these markets and can take advantage of a growing population over the next decade, especially in Australia. On top of this, Seek will benefit from expansion of its smaller, but faster growing, overseas operations in Asia during the coming years.
Foolish takeaway
Both Vocus and Seek are two high quality ASX shares trading at prices that place them in my buy zone right now.
I believe both offer strong growth potential over the next decade.
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Motley Fool contributor Phil Harpur owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK 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 post Vocus and 1 other top quality ASX share to buy right now appeared first on Motley Fool Australia.
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