If you’re interested in adding some growth shares to your portfolio, then the two listed below could be top candidates.

Both these ASX growth shares are highly profitable and have been tipped to continue their strong growth long into the future.

Here’s what you need to know about them:

ResMed Inc. (ASX: RMD)

The first ASX growth share to look at is this sleep treatment focused medical device company.

Over the last decade, ResMed has been growing its sales and profits at a consistently strong rate thanks to increasing demand and its growing addressable market.

The good news is that the company still has a significant market opportunity to grow into, with the majority of sleep apnea sufferers still undiagnosed. In addition, the company has a large opportunity with its connected-care digital platform.

It is partly because of the latter than Morgans is very bullish on ResMed. It commented:

While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans currently has an add rating and $40.46 price target on its shares. Based on the current ResMed share price of $27.86, this implies potential upside of 45% for investors.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that could be a quality option for investors is TechnologyOne. It is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets.

TechnologyOne has recently shifted its focus to its software-as-a-service (SaaS) ERP solution, which delivers the TechnologyOne enterprise suite as a service through the cloud to customers.

This shift of focus has been going well, with the company reporting SaaS annual recurring revenue (ARR) growth of 43% to $192.3 million during the first-half. But management doesn’t expect it to stop there. It reiterated that it expects its annual recurring revenue (ARR) to reach $500 million by FY 2026.

Analysts at Goldman Sachs suspect that TechnologyOne could even outperform this target, noting that the risks are to the upside. It said:

In our view, TNE is well-placed to meet its A$500mn FY26 ARR target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).

Goldman has a buy rating and $14.00 price target on the company’s shares. Based on the current TechnologyOne share price of $9.95, this implies potential upside of 40% for investors.

The post Analysts name 2 profitable ASX growth shares with 40%+ upside appeared first on The Motley Fool Australia.

More reading

• Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now
• Hoping to bag the Resmed dividend? Read this
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday
• 2 ASX 200 shares that analysts say are buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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On Tuesday, the Westpac Banking Corp (ASX: WBC) share price was a relatively positive performer.

While the banking giant’s shares only edged a modest 0.2% higher to $24.65, this was notably better than a 1% decline by the ASX 200 index.

Why did the Westpac share price defy the market selloff?

Investors were bidding the Westpac share price higher today after a number of brokers responded positively to the bank’s half-year results.

In case you missed it, on Monday Westpac reported an 8% decline in revenue to $10,230 million, a 12% reduction in cash earnings to $3,095 million, and a 61 cents per share interim dividend.

This compares favourably to the Visible Alpha consensus estimate for first-half cash earnings of $2.8 billion and an interim dividend of 59 cents per share.

Are its shares good value?

One leading broker that sees plenty of value in the Westpac share price is Citi.

In response to the bank’s half-year result, its analysts retained their buy rating and $29.00 price target.

Based on the current Westpac share price, this implies potential upside of 17.5% for investors. And if you throw in the 5% dividend yield the broker is forecasting in FY 2022 (rising to 6.3% in FY 2023), the total potential return stretches beyond 22%.

While Citi was pleased with the result, its main reason to celebrate was management’s decision to stick with its bold cost cutting target. Particularly at a time when its peers are abandoning their own.

Citi commented:

WBC surprised the Market by delivering 1H22 cash earnings of $3,095, representing a ~5% pre-provision profit beat. The feature of this result was the solid cost print driven by a ~2,500 reduction in permanent FTEs.

Unlike peers, management haven’t walked away from its FY24 cost base target of $8bn, as they had already incorporated 2.5% inflation. WBC’s revenue challenges also appear to moderating as the 2Q22 NIM (ex. Markets & Treasury) stabilised at 1.69%. A sharply higher 3 year swap rate will start to become a strong NIM tailwind from 2H22.

We have moved our FY22/23 EPS estimates up ~2-4% on this higher swap cost, but we have reduced our FY24 EPS by ~4% due to higher BDDs. We see the combination of higher revenue growth, as the cash rate rises, combined with a reducing absolute cost base, as delivering the strongest EPS growth in the sector. Maintain Buy.

The post Westpac share price is a buy: Broker tips ‘strongest EPS growth in the sector’ appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 bank shares amid rising interest rates?
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares that managed to post decent gains on Monday
• Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher
• These ASX shares pay you to own them

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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Today, the S&P/ASX 200 Index (ASX: XJO) cemented its third straight day of consecutive losses. Unrest within the local share market followed another brutal fall in US equities on Wall Street last night. At the end of the session, the benchmark index finished 0.98% lower at 7,051.2 points.

Instead of tech shares being the main victim on the receiving end today, it was time for energy and mining companies to cop the brunt of selling pressure. Both oil and gold prices fell to the wayside overnight. Inevitably, companies associated with these commodities suffered during today’s showing.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Iress Ltd (ASX: IRE) was the biggest gainer today. Shares in the financial services software company surged 5.66% despite there being no news or announcements. Find out more about Iress here.

The next best performing ASX share across the market today was REA Group Ltd (ASX: REA). The online real estate platform strengthened 5.48% with Citi analysts retaining their buy rating on the company yesterday. Uncover the latest REA Group details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Iress Ltd (ASX: IRE)	$11.20	5.66%
REA Group Ltd (ASX: REA)	$113.16	5.48%
Idp Education Ltd (ASX: IEL)	$25.52	5.06%
Xero Ltd (ASX: XRO)	$87.85	4.16%
WiseTech Global Ltd (ASX: WTC)	$40.96	4.14%
Seek Ltd (ASX: SEK)	$25.51	3.70%
GQG Partners Inc (ASX: GQG)	$1.42	3.65%
Dominos Pizza Enterprises Ltd (ASX: DMP)	$70.04	3.61%
Meridian Energy Ltd (ASX: MEZ)	$4.33	3.10%
Carsales.com Ltd (ASX: CAR)	$19.25	2.67%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• The Novonix share price just rebounded 13%. Is it a buy?
• Pendal share price surges as profit soars 60%
• Technophobia? Why ASX 200 tech shares are getting hammered again
• ASX shares are tumbling, but is it an actual stock market crash?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited, REA Group Limited, SEEK Limited, and carsales.com Limited. 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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The S&P/ASX 200 Materials Index (ASX: XMJ) index may have suffered on the market today but one ASX battery metals share had a better day.

The Group 6 Metals Ltd (ASX: G6M) share price soared 20% to close trading at 21 cents today. In contrast, the ASX 200 Materials Index fell 2.38%.

Let’s take a look at why this ASX battery metals share could be having such a great day.

What’s happening at Group 6 Metals?

Group 6 Metals shareholders may be reacting to recent media coverage on the company. Group 6 revealed its tungsten mine is garnering interest from the United States. Tungsten is a critical rare metal with future application in anode materials in lithium-ion batteries.

Speaking to Four Corners, executive chairman Johann Jacobs said the company has had three meetings with the US embassy in 12 months. He added:

…and those discussions are continuing. At this stage, they don’t have any financial interest, but they certainly are very keen to see us progress and develop the mine because it’s another supply chain… from a friendly nation. 

The United States is taking interest amid China’s global dominance of the tungsten market, the ABC noted.

Group6 is planning to produce tungsten from the Dolphin Tungsten Mine on King Island, Tasmania. Construction at the mine commenced in late January. The company is redeveloping the mine and targeting first concentrate sales in the first quarter of 2023.

In a presentation to investors in May, the company said the mine is a “world-class quality deposit” that ranks better than its peers.

The company changed its ticker code on the ASX to G6M from King Island Scheelite Limited (ASX: KIS) in late November.

Share price snapshot

The Group 6 Metals share price exploded 45% year to date but it is down 4.55% in the past month.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 5% in the year to date.

This ASX battery metals share has a market capitalisation of more than $132 million.

The post This ASX battery metals share is rocketed 20% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX All Ordinaries shares that defied today’s sell-off
• Why does the Bendigo Bank share price often fare worse than the ASX big four in downturns?
• Do CSR shares have a dividend reinvestment plan?
• Why did the Hawsons Iron share price stage such a stunning comeback today?
• Guess which 2 ASX All Ordinaries shares smashed 52-week highs amid today’s carnage

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 no position in any of the stocks mentioned. 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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