Top ASX shares to buy now for long-term growth

History shows that long-term wealth is built not by predicting short-term volatility, but by owning exceptional businesses and giving them time to compound.

So, if you are searching for high-quality ASX growth shares to hold for many years, read on!

That’s because listed below are three standouts that are leaders in their fields and look particularly compelling right now.

Life360 Inc. (ASX: 360)

In recent years, Life360 has quietly become one of the most exciting growth stories on the ASX. The family safety app continues to scale rapidly across the United States and globally, with strong momentum in both users and paying subscribers.

The company’s most recent update showed annualised monthly revenue climbing 33% year over year to US$446.7 million, while total paying circles rose 23% to 2.7 million. Importantly, Life360 is now operating profitably, generating positive operating cash flow, and delivering meaningful margin expansion as subscription revenue grows.

What makes Life360 a compelling long-term growth idea is its enormous total addressable market. With over 90 million monthly active users but only a small percentage converting into paying subscribers, even modest improvements in monetisation could drive significant revenue upside. Add to that an expanding suite of premium features and international expansion, and you have an ASX share with a very bright outlook.

ResMed Inc. (ASX: RMD)

ResMed is already a giant in the global medical device market, yet it continues to offer substantial long-term growth potential. The company specialises in devices and software for treating sleep apnoea, which is a chronic condition affecting more than one billion people globally.

And with the vast majority of sufferers remaining undiagnosed, this creates a multi-decade runway for growth. Especially given how ResMed’s cloud-connected devices, data analytics platforms, and expanding software ecosystem mean it is positioned as the leader in the field.

Despite its positive long-term outlook, ResMed shares remain well below previous highs, giving investors an opportunity to buy a high-quality ASX stock at a very attractive valuation.

TechnologyOne Ltd (ASX: TNE)

Finally, TechnologyOne is one of the ASX’s true software success stories. Its transition to a Software-as-a-Service model has transformed its business, delivering recurring revenue growth, expanding margins, and outstanding cash generation.

The company’s government and enterprise clients tend to be sticky, long-term users of its integrated platform. This creates a highly dependable revenue base, allowing TechnologyOne to invest in innovation while continuing to deliver strong returns to shareholders.

With over a decade of uninterrupted profit growth behind it and a massive pipeline of organisations still shifting to cloud-based enterprise systems, TechnologyOne looks well positioned to keep compounding for years to come. In fact, management believes it can double in size every five years.

The post Top ASX shares to buy now for long-term growth appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 explosive ASX ETFs to buy and hold
• Top ASX shares to buy right now with $1,000
• After tanking 26% in a month should you buy Life360 shares now?
• 3 high-quality ASX 200 shares now trading at multi-year discounts

Motley Fool contributor James Mickleboro has positions in Life360, ResMed, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, ResMed, and Technology One. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.