If you’re looking for strong returns over the next decade, then I think the three ASX shares listed below could be worth considering.

I believe all three ASX shares are well-placed to be market-beaters in the 2020s. Here’s why:

Bubs Australia Ltd (ASX: BUB)

Bubs is an infant formula and baby food company. It has been growing its sales at a rapid rate in recent years thanks to its expanding distribution footprint and increasing demand in Asia. Given how demand continues to grow, particularly in China, I believe there will be more strong sales growth to over the coming years. And with its operations now becoming profitable, I expect its earnings to grow at a rapid rate as it scales.

Freedom Foods Group Ltd (ASX: FNP)

Freedom Foods is a diversified food company with a focus on healthy eating. Its shares have come under significant pressure over the last few trading days after a surprisingly bad trading update. A number of the company’s channels have been struggling during the pandemic and look set to weigh heavily on its full year results. While this is disappointing, I believe the selloff has created a buying opportunity. Especially considering how these headwinds are transient and will soon ease now that restrictions are lifting. In light of this, I feel now could be an opportune time to make a patient buy and hold investment.

Jumbo Interactive (ASX: JIN)

Another share which I believe could grow strongly over the next decade is Jumbo. It is an online lottery ticket seller and the operator of the Oz Lotteries website. This year the company’s financial performance will take a hit because of its investment in growth opportunities. But these investments in its Jumbo software-as-a-service platform certainly appear worthwhile and look set to underpin years of strong growth. Once again, I think this makes Jumbo a great buy and hold option.

More reading

• Why the Bubs share price is up 65% in 2 months
• 2 cheap ASX 200 shares to buy right now
• Is the a2 Milk share price too high to buy?
• Top brokers are urging you to buy these ASX shares today
• Why a2 Milk, Freedom Foods, Scentre, & TPG Telecom are dropping lower

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 BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST FPO, Freedom Foods Group Limited, and Jumbo Interactive 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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Despite its strong form over the last couple of months, the S&P/ASX 200 Index (ASX: XJO) is still trading around 19% lower than its February highs.

While this is disappointing, this isn’t a bad result compared to some shares on the index.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a particularly poor performer this year. The travel agent’s shares are down 69% from their 52-week high.

Why is the Flight Centre share price down 69% from its high?

Investors have been selling the travel agent’s shares due to the impact the pandemic has had on the global travel market.

For example, during April the company’s total transaction value (TTV) was tracking at approximately 5% to 10% of normal levels.

The good news, though, is that Flight Centre has been cutting its costs materially to combat this.

Last month management revealed that it was making strong progress towards reducing its global cost base down to its $65 million per month target. This should mean the company has more than enough liquidity to ride out the storm.

Is the Flight Centre share price a bargain buy?

While Flight Centre could prove to be a good long term investment, I wouldn’t be in a rush to invest.

This is because, although I’m optimistic that domestic tourism will start its recovery in the coming months, it will take some time before the local travel market returns to normal.

Furthermore, it will take even longer for international tourism to return to normal levels.

In light of this, I think the company has a tough couple of years ahead of it. As such, I wouldn’t expect its profits to return to previous levels any sooner than FY 2022, but possibly later.

For the same reasons, I’m not in a rush to buy Webjet Limited (ASX: WEB) shares either just yet.

More reading

• Why the price of these ASX travel shares soared over 30% since mid-May
• 3 ASX 200 shares to watch this week
• 5 ASX 200 winners and 3 losers from last week
• The Webjet share price jumped 35% in May: Is it too late to invest?
• ASX retail shares best placed to benefit from wall of industry bankruptcies

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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Want to know where to invest $1,000 into ASX shares?

The ASX has performed strongly since that initial coronavirus share market sell-off. Some share performances have been too strong in my opinion, so I’d leave those ASX shares to one side.

Investing $1,000 of your hard-earned money is an important job. You don’t want to throw it away on the wrong investments. Only go for the best ASX ideas. 

Here is a growth idea and a dividend idea:

ASX growth share: Pushpay Holdings Ltd (ASX: PPH)

I think Pushpay is one of the most promising ASX shares. It’s an electronic donation business that’s currently focused on the large and medium churches in the US. This is such a large sector that Pushpay thinks this is a $1 billion revenue opportunity.

The ongoing coronavirus pandemic is terrible. But Pushpay is helping churches through this. The Pushpay technology enables churches to livestream to their congregations. Electronically donating is obviously also on the rise in a period of social distancing.

Pushpay is expecting that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double over the course of FY21. That would be a very strong result from the ASX share. And that’s just one year. It’s expecting to achieve higher gross margins over time. 

I’m not expecting Pushpay to become a major player in anything other than the US church sector. But if it could grow into other donation areas, that would further increase its growth potential.

ASX dividend share: Brickworks Limited (ASX: BKW)

I think Brickworks is an undervalued ASX dividend share. It owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares which provides reliable earnings and growing dividends

Brickworks also owns a 50% stake in an industrial property trust along with Goodman Group (ASX: GMG). Industrial properties should be in even more demand due to the rapid shift to ecommerce due to the coronavirus.

Most people would know Brickworks as a building products business. It’s certainly tough to be in construction right now. But there is plenty of talk of government support for the sector. And demand for construction will return in the future.

In the meantime Brickworks is making use of the shutdowns to accelerate its plans in the US and it has closed one of its plants.

Brickworks is trading cheaply compared to its asset value. It hasn’t decreased its dividend for over 40 years and currently offers a grossed-up dividend yield of 5.2%.

Foolish takeaway

I think that both of these ASX shares have a strong potential to deliver very good returns over the next few years. Over the next five years I believe that Pushpay could deliver very impressive earnings growth. But Brickworks could provide a very solid dividend as well.

More reading

• ASX 200 rises 0.3%, Zip rockets higher
• Why Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today
• Is Pushpay a millionaire maker share?
• I think these 2 ASX 200 shares will beat the market
• These 5 exciting small cap ASX tech shares rose by up to 70% in May

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company 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.

The post Where should you invest $1,000 in ASX shares? appeared first on Motley Fool Australia.

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