2 compelling ASX shares I’d buy in a heartbeat

I think the best investments to go for are the ones with the potential to deliver the biggest returns over the long-term. With that in mind, I’d go for ASX shares I’m expecting to grow earnings significantly over time but also trade at valuations that seem too low for the outlook.

Some of the ASX tech shares are trading much cheaper than they were at the start of 2025. But, I’m going to highlight other investments today.

I’m optimistic that over ten years, both of the below ideas can outperform the S&P/ASX 200 Index (ASX: XJO).

Propel Funeral Partners Ltd (ASX: PFP)

This a morbid idea, but it’s one that comes with ultra-long-term tailwinds.

Sadly, there are a certain number of funerals required each year, giving the business a very defensive set of earnings. As the saying goes, there are only two things certain in life – death and taxes.

Due to Australia’s growing and ageing population, the business has significant tailwinds for demand in the coming decade or two.

According to Propel, the number of deaths is expected to increase in Australia by an average of 2.8% per year between 2025 to 2035 and then grow by 2.4% between 2036 to 2045. In other words, the company is expected to benefit from that tailwind for at least the next 20 years.

On top of that, the business is seeing its average revenue per funeral increase, which is helping offset inflation impacts. Between FY15 and FY25, the company saw its average revenue per funeral increase at an average of 3.1% per year. It has also made the occasional acquisition to boost its geographic presence.

Overall, I think the ASX share is likely to see rising earnings over time, which should provide a compelling tailwind for a higher Propel Funeral Partners share price.

Global X S&P World EX Australia Garp ETF (ASX: GARP)

This leading exchange-traded fund (ETF) gives investors exposure to some of the best businesses in the world, in my view.

The fund goes through a selection process to find businesses that could generate growth at a reasonable price (GARP). There are three different core factors it uses to identify great companies.

First, growth. It looks at the three-year sales per share growth and earnings per share (EPS) growth.

Second, value. The GARP ETF considers the earnings to price ratio, which is another way of calculating the price to earnings (P/E) ratio.

Third, quality. The fund looks at how much debt these businesses have (meaning debt levels) as well as the return on equity (ROE).

Overall, it has 250 companies spread across multiple countries and sectors, giving it good diversification. I’m calling this an ASX share because we can buy it on the ASX and it’s invested in shares.

Past performance is not a guarantee of future performance, but the index this fund tracks has outperformed the global share market return over the past year, three years and five years.

It seems like a fund of great businesses trading at reasonable prices.

The post 2 compelling ASX shares I’d buy in a heartbeat appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.