Potential opportunities: 2 compelling ASX shares

There are some ASX shares pointing to potential industry trends that may lead to compelling growth over the coming years.

One of the below ASX shares provides exposure to the ever-growing need for protection against cybercrime.

The other ASX share is benefiting from the desire for improved technology in the audio industry.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is an exchange-traded fund (ETF) that gives investors access to the global cybersecurity sector.

As Betashares says, “With cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.”

Statista expects the global cybersecurity market to grow to $248.26 billion by 2023. That would be an 80% increase from 2017.

There are 35 businesses in the portfolio. Each of them provides a particular set of services that helps businesses and individuals stay safer in the cyber world.

The ETF’s largest holdings at the latest disclosure are: Cisco Systems, Palo Alto Networks, Crowdstrike, Accenture, Mandiant, Check Point Software Technologies, Leidos, Thales, Juniper Networks, and Cloudflare.

The investment comes with an annual management cost of 0.67%.

Of course, past performance is not a reliable indicator of future performance. In the three years to 28 February 2022, the HACK ETF produced an average return per annum of 21.2%.

Audinate Group Ltd (ASX: AD8)

Audinate is an ASX share that provides the Dante offering to the audio sector.

Dante is an audio over internet protocol (IP) networking solution, which Audinate claims as the worldwide leader in its field. The company says it is used “extensively” in the professional live sound, commercial installation, broadcast, public address, and record industries.

It is seeing a recovery from the worst of the effects of COVID-19 on events.

The ASX share reported that in the first-half of FY22, revenue jumped 32% to $20.2 million and the earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11% to $2 million. Despite COVID-19 impacts, it made a positive operating cash flow of $0.5 million in the first half of FY22.

It’s seeing record levels of demand, but supply has been hurt by the current component shortages.

Audinate says the AV sector is just starting digital networking conversion. The company is also entering the fragmented video market. Management noted the company has the balance sheet for strategic acquisitions. It recently completed the acquisition of the Silex Insight video business, which produces video networking products for manufacturers of AV equipment.

The company estimates that its total addressable market exceeds A$1 billion.

Some areas of focus include improving Dante adoption by non-English speakers and implementing business scalability initiatives. It also wants to launch new Dante video software and cloud services products.

The post Potential opportunities: 2 compelling ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AUDINATEGL FPO and BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended AUDINATEGL FPO and BETA CYBER ETF UNITS. 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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