3 ASX shares to buy for magnificent long-term growth!

Following all the drama of the last few weeks, a number of ASX shares are now trading at surprisingly low prices.

We can’t say what will happen in the next few weeks. But, I think the experience after 2020 and 2022 shows that the market is probably looking for good news to recover.

With US President Trump indicating he’s keen to make a deal with Iran, this could be a great time to invest in the following businesses.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is invested in a portfolio of funds management businesses that generally have a long track record of delivering stronger returns than their benchmarks.

It’s understandable that a fall in share markets has led to a 14% drop in the Pinnacle share price over the past month, given the likely painful impact on funds under management (FUM).

But, due to the cyclical nature of the share market volatility, I believe there will be a recovery down the line.

Plus, Pinnacle’s affiliates have collectively experienced billions of dollars in net inflows each financial year, which is a strong tailwind for longer-term FUM growth, even if FY26 earnings are impacted. I’m hopeful the company will add to its affiliate portfolio over the coming years.

I think this sell-off is an opportune time to invest in this ASX share, given market confidence is low.

Using the forecast on Commsec, the Pinnacle share price is valued at 20x FY26’s estimated earnings.

Sigma Healthcare Ltd (ASX: SIG)

Australia’s growing and ageing population is a strong tailwind for businesses involved in the healthcare industry.

Sigma is the owner of Chemist Warehouse, Australia’s leading chemist business, along with other companies in the chemist industry.

Impressively, Chemist Warehouse is seeing network sales growth in the mid-teens, while its international sales are growing even faster.

The business is generating strong same-store sales growth, while also expanding its store network in Australia, New Zealand and Ireland.

Growing scale can help improve the company’s profit margins, as we’re seeing in its financials. In HY26, it reported revenue growth of 14.9%, normalised operating profit (EBIT) growth of 18.7% to $582.9 million, and normalised net profit growth of 19.2% to $392 million.

It’s a great sign when each profit line is rising faster than the one before it. Investors usually value a business based on its net profit, so Sigma is demonstrating pleasing characteristics.  

I think the business is capable of adding dozens of new Chemist Warehouses to its global network in the coming years, which should be a strong tailwind for shareholder returns.

According to Commsec, the Sigma Healthcare share price is valued at 42x FY26’s estimated earnings.

L1 Group Ltd (ASX: L1G)

This is a fund manager that offers a range of investment strategies that have performed strongly for investors across ASX shares, international shares, gold, and more.

After taking over Platinum, the business has hit the ground running on the ASX. It’s planning to list a gold-listed investment company (LIC) soon, and its other LICs’ performances have been excellent in recent times (though past performance is not a guarantee of future performance).

In the FY26 half-year result, the company reported underlying revenue growth of 23% to $145.1 million, underlying operating profit (EBITDA) growth of 61% to $94.9 million and underlying net profit after tax (NPAT) growth of 63% to $66.3 million.

I’m a fan of how L1 invests in its funds with a contrarian mindset and a focus on businesses with lower price-to-earnings (P/E) ratios.

I expect the business will launch additional funds over time, while organic investment performance can help FUM grow naturally as well.

I think this investment outfit is one of the most impressive in Australia and is worth owning for the long term.

The post 3 ASX shares to buy for magnificent long-term growth! appeared first on The Motley Fool Australia.

More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares
• 2 top ASX shares I’d buy today amid falling prices
• Why buying ASX shares in March could supercharge your wealth
• Here are the top 10 ASX 200 shares today
• 4 top ASX share picks to buy

Motley Fool contributor Tristan Harrison has positions in Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.