I generally prefer to invest in ASX growth shares rather than their dividend-paying cousins. As a long-term shareholder, ASX growth shares enable me to benefit from tax-free compounding over many years. With dividend shares, however, you are required to pay tax every time you receive a dividend. So even if those dividends are reinvested, this occurs using after-tax dollars.

With this in mind, below are 3 exciting ASX growth shares I believe to be buys next week.

Avita Medical Ltd (ASX: AVH)

Avita Medical develops and markets a range of respiratory and regenerative medical products. The first product Avita brought to market was a spray-on skin treatment used for burns victims named ‘Recell’. In addition to being TGA approved in Australia, Recell is FDA approved in the USA and CE-marked in Europe.

Avita recently released results for the March quarter, which were its strongest since launching in the US. This quarter saw its total revenue jump 67% over the prior corresponding period. This is boosted to an 84% revenue increase when the time frame is extended to the 9 month period ending 31 March 2020.

Avita has largely been insulated from the coronavirus-led economic fallout. This is predominantly because treatment for burns patients tends to be neither elective or deferrable. Furthermore, the company is looking to use the Recell system to treat vitiligo and has plans to submit an application to the FDA in June 2020.

Nearmap Ltd (ASX: NEA)

I can’t go past Nearmap when it come to ASX growth shares. The Aussie aerial imagery and data insights company has been consistently growing its subscriber base, particularly across its North American segment. It has also been steadily improving its average revenue per subscription. Furthermore, the company recently launched another new product with Nearmap AI.

On Tuesday this week, I wrote that I believed Nearmap’s shares were still a buy, despite having risen more than 100% over the past 2 months. Since then, they have jumped again following a positive market update. The update stated that the company’s churn had dropped and its annualised contract value (ACV) has continued to grow. Nearmap’s ACV now exceeds $102 million. Additionally the company advised it is on track to be cash flow breakeven by the end of June. No doubt, all this good news put some investors’ fears to rest. This resulted in Nearmap’s share price surging by a further 16.67% on Thursday. 

Despite the current price gains, I still see the potential for ongoing value with Nearmap shares. The world is a big place, and I believe Nearmap has plenty of runway to expand its current market segments and break into new ones.

Audinate Group Ltd (ASX: AD8)

My 3rd pick of ASX growth shares to buy next week is Audinate. This company develops an audio-visual, industry-leading, media networking solution, called Dante. A mouth-full, I know! But what Dante allows audio professionals to do is use standard Ethernet networks to deliver uncompressed, multi-channel, low-latency audio. This removes the need for expensive cabling and more rigid and complicated networks.

The solution’s wide-spread adoption by manufacturers has meant that more and more Dante devices are now able to be connected together. Additionally, a Dante network offers superior flexibility, with changes able to be made with the touch of a button.

As social distancing restrictions were implemented throughout the world, Audinate was wary of possible impacts to its revenue resulting from reduced demand. However, the company’s strong balance sheet and recent revenue growth have ensured its resilience through the worst of the pandemic’s economic fallout so far. As economies around the world begin to open up, I believe strong demand for Audinate’s product will deliver continued company and share price growth.

More reading

• Top brokers name 3 ASX shares to buy next week
• The Nearmap share price is up 123% in 2 months: Why I think it can go higher
• Brokers name 3 ASX 200 shares to buy right now
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises again, ASX banks push higher

Michael Tonon owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Nearmap Ltd. The Motley Fool Australia has recommended Avita Medical 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 3 exciting ASX growth shares to buy next week appeared first on Motley Fool Australia.

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If you’re looking for strong returns over the next decade, but small caps are too risky for your tastes, then you might want to take a look at ASX mid cap shares.

I think this is a great side of the market to look for investment ideas. This is because mid caps generally carry less risk than small caps, but offer stronger potential returns than large caps.

With that in mind, I have picked out four top mid cap ASX shares which I think would be top options:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to consider is Bravura Solutions. It provides software and services to the wealth management and funds administration industries. It has a number of different products in its portfolio, which are being used by many of the world’s biggest financial institutions. This includes the Sonata wealth management platform which allows users to connect and engage with their clients anytime, anywhere, via computers, tablets, or smartphones.

Collins Foods Ltd (ASX: CKF)

Another ASX mid cap share to consider is Collins Foods. It is one of the ANZ region’s largest KFC restaurant operators and also has a growing presence in Europe. It is these operations that I’m most excited about. Due to the under penetration of KFC in Europe, I believe there is a significant expansion opportunity over the next decade. And although the pandemic will inevitably slow its expansion plans, I expect it to accelerate again when the crisis passes.

Jumbo Interactive (ASX: JIN)

Jumbo is an online lottery ticket seller and the operator of the Oz Lotteries website. The company’s shares have come under pressure this year, which I believe has created a buying opportunity for investors. Especially given its target of $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.

Kogan.com Ltd (ASX: KGN)

A final mid cap ASX share to consider buying right now is Kogan. The ecommerce company has been a strong performer during the pandemic and more than doubled its sales and earnings in April. I believe the pandemic has accelerated the structural shift to online shopping and puts Kogan in a very strong position to deliver strong growth in the coming years.

More reading

• 10 top ASX growth shares to buy in June for strong returns
• Why Afterpay, Austal, Kogan, & Northern Star shares are charging higher
• Build wealth for life with these 2 ASX 200 shares
• 10 quality ASX shares to buy in June
• Where to invest $10,000 into ASX shares immediately

James Mickleboro owns shares of Collins Foods Limited. 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 Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, Collins Foods 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.

The post 4 strong ASX mid cap shares to buy with $4,000 appeared first on Motley Fool Australia.

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If you’re looking for additions to your portfolio in June, then I think the three ASX 200 shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would consider buying is Appen. Through its million-plus team of crowd-sourced experts, Appen prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. In respect to the latter, Appen helped the tech giant develop its intelligent assistant, Siri. Given how important AI is becoming, I expect demand for its services to continue to grow over the next decade. This should underpin strong earnings growth for many years to come.

Nanosonics Ltd (ASX: NAN)

Nanosonics is another ASX 200 share that I would give five-stars. The infection control specialist has been growing at a very strong rate over the last few years thanks to the growing installed base of its trophon EPR disinfection system for ultrasound probes. The beauty of this product is that as its installed base grows, so too does the recurring revenue from the consumables it requires. While this product alone could drive strong earnings growth for the next decade thanks to its massive market opportunity, there will soon be more products in its portfolio. Nanosonics is planning to launch several new secretive products targeting unmet needs in the coming years.

REA Group Limited (ASX: REA)

A final five-star stock to consider buying is REA Group. It is a digital advertising company that operates Australia’s leading property websites. It also operates real estate websites in Europe, Asia, and the United States. While market conditions are tough at the moment, I expect the tide to turn once the crisis passes. When it does, I expect the realestate.com.au operator’s earnings growth to accelerate and drive its shares higher. All in all, I think REA Group is one of the best buy and hold options on the ASX.

More reading

• What to watch on the ASX 200 next week
• Why a stamp duty change could unleash the REA Group share price
• How to be an ASX 200 share millionaire in 15 years
• Where to invest $20,000 in ASX 200 shares today
• How you can get very rich with ASX 200 shares

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 Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics 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.

The post 3 five-star ASX 200 shares to buy in June appeared first on Motley Fool Australia.

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