Investing $1,000 in these 3 ASX shares would be a smart move

If you’re looking to invest $1,000 into the share market right now, then there are a lot of quality options to choose from.

Three ASX shares that I think would be smart choices are listed below. Here’s why I like them:

Jumbo Interactive (ASX: JIN)

Jumbo Interactive is an online lottery ticket seller and the operator of the Oz Lotteries website. In addition to this, the company has a Software as a Service (SaaS) business, Powered by Jumbo Software. This is the most exciting part of the business in my opinion. The total addressable market for its SaaS business is significant. Last year management noted that approximately 7% of the world’s lottery tickets are sold online, which implies that 93% of a ~US$300 billion global market has yet to transition online. I suspect a greater portion of ticket sales will be made online in the future and for its SaaS business to underpin strong earnings growth over the next decade.

REA Group Limited (ASX: REA)

Another option for a $1,000 investment is REA Group. It is the operator of the realestate.com.au website and several international equivalents. Although the housing market is struggling at the moment, this has not stopped the company from growing its earnings. During the third quarter it delivered an 8% lift in EBITDA to $119.6 million despite dealing with a 7% decline in listings. And while listings in the fourth quarter are likely to be markedly lower, its cost cutting plan should offset some of this weakness. Looking further ahead, when conditions improve I expect REA Group’s earnings growth to accelerate and drive its share price higher.

Zip Co Ltd (ASX: Z1P)

A final option to consider is growing buy now pay later provider, Zip Co. There were concerns that Zip Co’s business model could struggle if trading conditions deteriorated materially. Pleasingly, this hasn’t proven to be the case. The company recently released a trading update which revealed that transaction volume jumped 86% to $181.6 million in April. But perhaps the even better news was that its net bad debts came in at just 1.99%. This is higher than previously, but at a very strong level compared to many of its peers. I’m confident its strong growth will continue over the coming years. Especially given its new verticals, international expansion, and the growing popularity of the payment method with consumers and merchants.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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