Are you looking to add a growth share or two to your portfolio? Then take a look at the two ASX shares listed below.
Here’s why they could be growth shares to buy right now:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is one of the world’s leading gaming technology companies. Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, Aristocrat Leisure has been tipped for strong growth. And while it is facing notable headwinds right now due to the closure of casinos because of the pandemic, trading conditions are beginning to normalise.
Analysts at Morgans recently put an add rating and put a $37.31 price target on its shares. The broker notes that underlying business fundamentals are improving and casinos are largely open as normal in North America. In addition to this, it believes its strong balance sheet gives management options to accelerate its growth.
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. It provides businesses with a unified platform to streamline processes such as employee administration, recruitment, and payroll. ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend over the next decade. This is thanks to strong demand for its platform and management’s plan to make earnings accretive acquisitions.
Morgan Stanley has been pleased with its performance and believes it is well-placed for growth. So much so, it has an overweight rating and $9.30 price target on its shares. This compares to the current ELMO share price of $6.45. The broker was also pleased to see ELMO reiterate its organic growth guidance at its annual general meeting and sees positives in its recent $32 million acquisition of UK-based Breathe. These include market expansion and cross sell opportunities.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- These ASX tech shares have been tipped for big things
- 10 fantastic ASX shares to buy in December
- 3 small cap ASX tech shares growing at a rapid rate
- 2 cheap ASX shares set to take off after COVID-19
- Top brokers name 3 ASX shares to buy next week
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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.
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