The Kogan.com Ltd (ASX:KGN) share price had a good week last week. It leapt 12% on Thursday after the company released a June trading update. By the end of the week, it had settled lower to remain 10% up for the week. This company is squarely in the line-of-sight of Amazon.com, Inc. (NASDAQ: AMZN) as it continues its growth in the Australian market.

The question every investor should be asking is: can they survive it?

Current performance

The June release painted a picture of a company doing well and growing rapidly. Comparing the fourth quarter to date against the same period last year, the company announced significant improvements in performance. 

The company now boasts over 2 million active customers. It grew gross sales by 100% and, at the same time, grew gross profit by more than 130%. This supports recent reports across buy now, pay later companies showing increases in transactions and users while in lockdown. This is despite Amazon.com already existing in the marketplace. 

Kogan.com also recently announced the purchase of furniture retailer Matt Blatt. The company is planning to relaunch it purely online. Throughout the short history of Kogan.com, it has shown a great understanding of online retail. In 2016 the company purchased electronics retailer Dick Smith, successfully relaunching it as an online retailer.

On my figures, Kogan.com has increased its sales revenues by, on average, around 14% every year during the past three years. This has enabled the company to grow its earnings-per-share by around 65% a year. 

Can Kogan.com compete with Amazon?

Kogan.com has a few competitive advantages. First and foremost, as a company with own-brand products, Kogan.com sells products on Amazon. Second, the company has always had a ‘best price’ guarantee. While Amazon is known for efficient and, often criticised, work practices, Kogan is proudly miserly. Even to the point of running a paperless office. 

Moreover, just as Amazon built the high margin Amazon Web Services to subsidise the entire business. Kogan.com has also grown additional verticals in the financial and telecommunications sectors. The company has services in mobile telephone coverage, nbn services, insurance, home loans and even cars. The company is adept at partnering with industry leaders. 

Foolish takeaway

At least within Australia, I can see Kogan.com holding their own against Amazon or whoever the next challenger is going to be. The company deserves a place on your watchlist at the very least. Given the rate the company is growing its sales and earnings per share, I believe this is a share price with a lot of growth ahead of it.

More reading

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• Why I’d buy Appen and these ASX growth shares for the 2020s
• How I would invest $50,000 into ASX shares right now
• Could these ASX shares be the future dividend stars that make you rich?
• What ASX shares should you invest in during a bull market?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daryl Mather 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 Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Amazon. 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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There are a lot of different types of investors out there.

There are investors that have a focus on dividends, others that are looking for growth, and some investors are searching for shares which they feel are undervalued.

Whichever type of investor you are, I feel one of the shares listed below will appeal to you. Here’s why I think they are in the buy zone:

Commonwealth Bank of Australia (ASX: CBA)

Investors in search of income might want to take a look at Commonwealth Bank. Although its shares have been on fire in recent weeks, they are still down 21% from their high. I think this leaves them trading at a very attractive level for a long term and patient investment. Times may be hard for the banks right now, but I’m optimistic the worst is behind them. And although I expect another dividend cut in FY 2021, I’m confident this is the bottom of the cycle. Furthermore, even if the bank were to cut its dividend to ~$3.70 per share next year (which I expect), it would still be a generous fully franked 5.1% dividend yield.

ResMed Inc. (ASX: RMD)

If you’re looking for growth shares then I think ResMed is worth considering. It is a medical device company which is exposed to the proliferation of sleep apnoea. I believe ResMed is perfectly positioned to capture the rising demand for sleep treatment products this is causing. This is thanks to its leading CPAP masks and machines and its growing software businesses – Brightree and MatrixCare. All in all, I believe ResMed can grow its earnings and a strong rate over the next decade and beyond.

Freedom Foods Group Ltd (ASX: FNP)

I think Freedom Foods could be a good option for value investors. Its shares have fallen heavily over the last couple of weeks after a surprisingly disappointing trading update. That update revealed that a number of sales channels had been impacted greatly by the pandemic. However, I believe this weakness will be short-lived and expect its sales to rebound quickly. This view is shared by analysts at Goldman Sachs who are forecasting earnings per share of 20 cents in FY 2021 and then 30 cents in FY 2022. This means Freedom Foods’ shares are changing hands at under 20x FY 2021 earnings and approximately 13x FY 2022 earnings.  

More reading

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• The ASX bank dividend recovery may be better than what the market thinks
• Will ASX 200 shares hit a record high in June?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Could these sensational ASX shares help you beat the market?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited and ResMed Inc. 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.

The post 3 top ASX shares for growth, income, and value investors to buy today appeared first on Motley Fool Australia.

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Pointsbet Holdings Ltd (ASX: PBH) share price

Pointsbet is an online bookmaker with operations in Australia and the United States. The company offers innovative products that facilitate betting on horse racing and other sports. 

The Pointsbet share price has risen significantly from the lows we saw in March. Contributing to this rise was a trading update released by the company on 27 May. The announcement reminded investors that both AFL and Rugby League would soon be recommencing. Also included was advice that Pointsbet had entered into an agreement with Fox Sports to become the media provider’s AFL betting partner. According to Pointsbet, this was part of ‘an opportunistic approach to targeting media assets to deliver efficient client acquisition and increased betting volumes’. Pointsbet also has an existing deal covering Tier 1 horse racing with Channel Seven. 

What’s next for Pointsbet?

Pointsbet is not short on ambition. Also included in the May update was the company’s assertion that it ‘aims to provide more markets on the major Australian and US sports than any other bookmaker’. Given the company’s recent success, it is easy to believe that Pointsbet will deliver on its aspirations.

Another feather in the company’s cap is that it is operating in the lucrative US market and already seeing considerable success. Over 30% of the US population now has access to legal sports betting. Despite the fact that sports were recently suspended due to COVID-19 restrictions, Pointsbet reached 22,716 US clients in Q3 of the 2020 financial year. It’s total active clients across Australia and the US now totals 106,046. This represents a growth of 64% on the prior corresponding period. 

While Pointsbet is a relative newcomer to the betting industry, I believe it shows significant growth potential due to its position in the US and its unique betting markets. This potential is highlighted by the fact that the company’s market cap currently sits at $906 million. Compare this to the market cap of fellow gambling provider Tabcorp Holdings Limited (ASX: TAH) which sits at $7.36 billion. Pointsbet shows room for enormous growth as it increases its market share.

The Pointsbet share price is up 221% since this time last year, hitting a record high of $7.17 yesterday.

Sezzle Inc (ASX: SZL) share price

Sezzle is a financial technology company based in the US. This company works with a platform similar to ASX market darling Afterpay Ltd (ASX: APT). That is, it offers buy now, pay later (BNPL) solutions to consumers. 

Like other companies in the BNPL sector, the Sezzle share price has been performing well. This can be partially attributed to the fact that more consumers have moved to online shopping during lockdown restrictions. Sezzle is a significant player in the industry with 1.3 million active customers. Its platform is available through 14,900 merchants and its app has been downloaded around 600,000 times.

While Sezzle’s popularity does not presently match that of Afterpay’s, I believe it shows great potential, especially as a possible takeover target. If the BNPL industry consolidates, it’s very possible that Sezzle will get bought up by one of the major players. Alternatively, the company may continue to grow independently with the aim of rivaling Afterpay. Given the fact Sezzle is headquartered in the US and already actively targeting the US$460 billion Canadian retail market, I feel this is definitely possible. 

The Sezzle share price is up over 770% from its 52-week low of $0.35 and is currently sitting at $3.05 per share. The company also reached a new, all time high of $3.25 in yesterday’s trade. 

Foolish takeaway

Despite their recent gains, I still feel that both both the Sezzle and Pointsbet share prices offer considerable upside potential. Pointsbet is looking to leverage its huge growth potential in the lucrative US sports betting market while it expands its market share in Australia. Sezzle looks set to continue growing as it increases the number of merchants offering its platform along with its number of users. Is it time to invest? This writer believes yes.

More reading

• Why I would buy Afterpay and these exciting ASX tech shares
• Will ASX 200 shares hit a record high in June?
• ASX shares could be the best way to grow your wealth in 2020
• 10 ASX 200 shares that are fit for the Queen
• 3 ASX shares for a stress-free life

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sezzle Inc. 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.

The post The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest? appeared first on Motley Fool Australia.

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