2 compelling ASX shares that could be buys in January 2022

Some ASX shares have significant growth plans for the long-term, making them compelling stocks to look at.

Businesses which are re-investing for growth give themselves a useful chance of long-term success.

In the US, the gigantic e-commerce company Amazon has shown how much a business can grow if it invests for many years ahead.

With that in mind, here are two ASX shares planning a lot of growth over the coming years:

Redbubble Ltd (ASX: RBL)

Online retailer Redbubble is one of the ASX tech shares that analysts like at the moment. After a 4% decline of the Redbubble share price on Thursday, it is now down to around $3.

Morgan Stanley has a price target of $6.50, that means Redbubble shares have more than 110% upside, if the broker is right.

The broker thinks that Redbubble can achieve the double digit growth to reach its goal in the long-term.

Redbubble’s goal over the next few years is to achieve $1.5 billion of gross transaction value. That translates to $1.25 billion of marketplace revenue and $250 million for artists for their designs which are printed on quality products like clothes, bags, phone cases and so on. It is keeping its eye out for acquisition opportunities that could help accelerate growth.

The ASX share is going to do a number of things to achieve growth in the shorter-term and then leverage its scale to drive the profit margin higher in the future.

Redbubble is going to work on recruiting more artists and improve its account management. It wants to improve the content and digital experience for both artists and shoppers. The company is going to keep investing in marketing and grow geographically in the future. It also plans to improve the physical experience for customers, as well as launching new products and fulfilment locations. All of this is expected to lead to scale efficiencies.

Excluding mask sales from FY21, Redbubble is expecting its FY22 underlying marketplace revenue to be slightly higher year on year.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the world’s largest iron ore miners. The iron price has been climbing over the past couple of months, which has been helping the Fortescue share price in recent weeks.

The broker Macquarie Group Ltd (ASX: MQG) currently rates Fortescue shares as a buy, with a price target of $21.

But it’s Fortescue’s Future Industries division that is capturing more headlines and investor interest.

The iron ore miner is transitioning from a pure play iron ore producer to a green renewables and resources company.

It was only a couple of months ago that Fortescue Future Industries (FFI) announced it is going to become the largest supplier of green hydrogen to the UK after signing a “multi-billion-pound deal” with JCB Excavators and Ryze Hydrogen.

FFI said that Jo Bamford, regarded as the UK’s green hydrogen champion, is the founder of Ryze and owner of Wrightbus. Ryze is building the UK’s first network of green hydrogen production plants, while Wrightbus built the world’s first hydrogen double decker.

JCB Chair Lord Bamford has asked FFI to deliver “immediately” what it is able to deliver. JCB and Ryze will purchase 10% of the ASX share’s global green hydrogen production.

FFI’s green hydrogen production is projected to grow to 15 million tonnes of green hydrogen per year by 2030, accelerating to 50 million tonnes per year in the next decade after that.

It was revealed that under the partnership, FFI will lead the green hydrogen production and logistics to the UK market, whilst JCB and Ryze will manage green hydrogen distribution and development of customer demand in the UK.

The post 2 compelling ASX shares that could be buys in January 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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