If you’re in the process of building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this leading retailer of homewares and home furnishings.

Thanks to a favourable redirection in consumer spending during the pandemic and the booming housing market, Adairs has been growing very strongly over the last 18 months.

This led to the company releasing one of the strongest results during reporting season last month.

For example, Adairs reported a 28.5% increase in sales to $499.8 million and the almost doubling of its EBIT to $109.1 million. This was underpinned by strong same store and online sales growth.

According to a note out of Morgans, its analysts expect the company to be in a position to pay a 22 cents per share fully franked dividend in FY 2022.

Based on the current Adairs share price of $3.92, this will mean a yield of 5.5%.

National Storage REIT (ASX: NSR)

Another dividend share to look at is this leading self-storage operator.

It has been growing strongly over the last decade thanks to solid demand and its growth through acquisition strategy. And while it now has a portfolio of over 210 centres, management still sees plenty of scope to grow its network in a fragmented industry.

National Storage was also on form in FY 2021. It recently released its full year results and revealed a 28% increase in underlying earnings to $86.5 million.

This allowed the company to pay a full year distribution of 8.2 cents per share.

Another solid year is expected in FY 2022, with management guiding to underlying earnings per share growth of at least 10%. It also highlights that it has ~$900 million of investment capacity to support its acquisition strategy.

Based on the current National Storage share price of $2.40, if its distribution grows at the same rate as its earnings to 9.02 cents per share, it will provide a yield of 3.8%.

The post 2 ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• Leading broker says Adairs (ASX:ADH) share price is a buy
• 2 ASX dividend shares that could be buys in September 2021
• 2 buy-rated ASX dividend shares with big fully franked yields
• 2 top ASX dividend shares with attractive yields
• 2 excellent ASX dividend shares analysts rate as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3tkePAH

The Australia and New Zealand Banking Group Limited (ASX: ANZ) share price has had a great year thus far.

Since the start of 2021, shares in the banking giant have soared more than 22%.

In comparison, the  S&P/ASX 200 Index (ASX: XJO) has lifted 14% higher for 2021.

It’s not very common to see the share price of a big bank like ANZ outperforming the broader index. So, what is the outlook for the ANZ share price?

Analysts mixed on outlook

Despite its stellar performance so far this year, analysts are mixed on the outlook for the bank’s share price.

An expert flagged in The Australian recently that big banks like ANZ could feel the impact of lockdowns in the medium term.

According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for banks.

However, a recent note from leading broker Morgans upgraded the rating of ANZ’s shares, issuing a share price target of $34.50.

According to analysts, shares in ANZ are well-placed to benefit from a number of industry tailwinds.

The broker noted that ANZ could benefit from treasury and markets income if the bank continued to focus on absolute cost reductions.

In addition, shares in the bank could be poised to benefit if ANZ improved the quality of its loan book.

Analysts also cited the bank’s recent forecasted dividends of $1.45 per share in FY21 and $1.65 per share in FY22.

Snapshot of the ANZ share price

There are several catalysts that appear to have helped propel the ANZ share price higher this year.

In May, ANZ reported a strong first-half report for FY21.

The report highlighted a 45% increase in statutory profit after tax of $2.94 billion. Continuing operations cash profit also increased 28% to $2.99 billion.

In addition, ANZ noted that improved credit conditions resulted in the release of almost $500 million during the half.

A strong full-year result by rival bank, Commonwealth Bank of Australia (ASX: CBA), has also helped boost the ANZ share price along with sentiment in the sector.

Finally, in July, ANZ announced its intention to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ share price was down 0.14% trading at $27.87 at the market close on Friday.

The post What is the outlook for the ANZ (ASX:ANZ) share price? appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) share price dips as bank predicts RBA will delay tightening
• ASX 200 bank shares could struggle due to lockdowns – expert
• It hasn’t been a great week so far for the ANZ (ASX:ANZ) share price
• Top broker picks best ASX 200 bank shares to buy coming out of reporting season
• How does the NAB dividend compare to its sector?

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zH1Ew9

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Morgans, its analysts have retained their reduce rating and cut their price target on this iron ore producer’s shares to $19.20. While Fortescue delivered a full year result in line with the broker’s expectations, it has questions over the company’s target of becoming a global technology leader in renewables and green products. As worthy as this is, Morgans wonders whether being an early adopter would be a more efficient approach rather than an innovator. Especially given how it is moving into a space far outside its established core competencies. The Fortescue share price ended the week at $20.85.

InvoCare Limited (ASX: IVC)

A note out of Macquarie reveals that its analysts have retained their underperform rating but increased their price target on this funerals company’s shares to $9.90. This follows the release of a solid half year result, which outperformed its expectations. However, Macquarie appears to believe a lot of this strong first half will be underdone in the second half due to lockdown headwinds. In light of this, the broker doesn’t see enough value in its shares to change its rating. The InvoCare share price was fetching $12.52 at Friday’s close.

Wesfarmers Ltd (ASX: WES)

Analysts at Citi have retained their sell rating and lifted their price target on this conglomerate’s shares to $49.00. According to the note, the broker was pleased with Wesfarmers’ performance in FY 2021 and its $2.3 billion capital return announcement. And while this has led to an increase in both its earnings estimates and price target. It isn’t enough for a more positive rating. Citi continues to believe that Wesfarmers’ shares are overvalued at the current level. The Wesfarmers share price ended the week at $57.78.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Why the Fortescue (ASX:FMG) share price has underperformed the ASX 200 in the last year
• Why the Wesfarmers (ASX:WES) share price is down 9% in the last week
• Fortescue (ASX:FMG) share price under pressure as iron ore slides to 7-month low
• This leading broker tips Fortescue Metals (ASX:FMG) share price to rise by 42%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BLexFV

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Altium Limited (ASX: ALU)

According to a note out of Citi, its analysts have upgraded this electronic design software provider’s shares to a buy rating but trimmed their price target to $35.40. Citi believes the weakness in the Altium share price since its results release is a buying opportunity. The broker remains positive on Altium’s long term outlook and was pleased with its solid guidance for FY 2022. Particularly given how this comes at a time when the company is transitioning away from perpetual licenses. The Altium share price ended the week at $32.10.

Harvey Norman Holdings Limited (ASX: HVN)

Another note out of Citi reveals that its analysts have retained their buy rating and $6.00 price target on this retail giant’s shares. This follows the release of a full year result that was ahead of the broker’s expectations. And while Citi acknowledges that FY 2022 has started softly, it remains positive due to strong underlying demand for furniture and home goods from consumers. This is being underpinned by the favourable housing cycle. The Harvey Norman share price was fetching $5.22 at Friday’s close.

PointsBet Holdings Ltd (ASX: PBH)

Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this sports betting company’s shares to $14.75. This follows the release of a full year result that was largely in line with the broker’s expectations. Goldman remains positive on the future, noting that PointsBet has exposure to the burgeoning US sports betting and iGaming market. It believes the company is well-placed to achieve a 10% market share in states it US operates in. The PointsBet share price ended the week at $10.66.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Here’s a look at how ASX WAAAX shares compare on growth
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor 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 has recommended Altium and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended Harvey Norman Holdings Ltd. and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3kXul1E

Could the Commonwealth Bank of Australia (ASX: CBA) share price be a buy for its projected FY22 grossed-up dividend yield?

The big bank has seen a bit of volatility in recent months. It’s up 18% over the last six months. However, it’s actually down by 6% since 11 August 2021.

CBA has been experiencing an earnings recovery from COVID-19 impacts (like loan provisions) in 2021.

Indeed, FY21 saw statutory net profit after tax (NPAT) increase by almost 20% to $8.84 billion and cash net profit grow by 19.8% to $8.65 billion.

What about the dividend from the big bank? The FY21 annual dividend was $3.50, an increase of 17% from FY20. CBA’s board decided to pay a final dividend of $2 per share.

The biggest piece of news was the off-market buy-back of up to $6 billion of CBA shares. One of the aims of the buy-back would be to elevate the CBA share price.

CBA Chair Catherine Livingstone said:

CBA’s strong capital position and our progress on executing our strategy mean that we are well placed to continue to support our customers and manage ongoing uncertainties, while also returning a portion of surplus capital to shareholders. After careful consideration, your board has determined that the buy-back is the most efficient and value-enhancing strategy to distribute CBA’s surplus capital and franking credits.

What dividend is CBA expected to pay in FY22?

Each financial analyst has different earnings expectations on the bank.

The broker Morgan Stanley reckons CBA is going to generate earnings per share (EPS) of $5.28 and pay an annual dividend of $4.02 per share in FY22.

Morgans, another broker, thinks that CBA will make EPS of $5.70 in FY22 and that the bank will pay a dividend of $4.28 per share.

Both of those estimates represent growth on CBA’s FY21 numbers.

For FY22, Morgan Stanley thinks the current CBA share price offers a grossed-up dividend yield of 5.6%. The Morgans estimate puts the FY22 grossed-up dividend yield at 6%.

Is the CBA share price a buy for the dividend?

Both Morgans and Morgan Stanley think that CBA shares are actually a sell based on valuation grounds.

Morgan Stanley has a price target of $90 on CBA – suggesting the bank’s shares could fall just over 10% over the next 12 months.

Morgans has a price target of just $80. That implies the CBA share price could drop by more than 20% over the next 12 months.

The post Is the CBA (ASX:CBA) share price a buy for the 6% dividend yield? appeared first on The Motley Fool Australia.

More reading

• The CBA (ASX:CBA) share price has gained 20% in the last 6 months
• What’s moving the CBA (ASX:CBA) share price this week?
• ASX investors were buying Alibaba, Pfizer shares last week
• ASX 200 bank shares could struggle due to lockdowns – expert
• The CBA (ASX:CBA) share price is now trading on a 3.46% fully-franked dividend yield

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3teWd5b

Last week was a good one for the National Australia Bank Ltd. (ASX: NAB) share price.

It gained 3.6% between Monday’s open and Friday’s close and hit new 52-week highs on Wednesday, Thursday, and Friday. Ultimately, the NAB share price set a new 52-week record high of $28.78.

The NAB share price then finished the week trading at $28.70, 0.7% higher than Thursday’s close.

That’s significantly better than the S&P/ASX 200 Index (ASX: XJO), which ended the week 0.4% higher than where it started.

Additionally, the other big four banks didn’t experience the same boost as NAB did.

The share price of the biggest of the big fours, Commonwealth Bank of Australia (ASX: CBA), ended the week just 0.2% higher than where it started. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price finished in the red after falling 1.6% last week. Finally, the Westpac Banking Corp (ASX: WBC) share price has gained just 0.1% since this time last week.

What boosted the NAB share price last week?

Interestingly, the NAB share price’s gains this week don’t seem to have been spurred by any price-sensitive announcements. In fact, the last time the market heard price-sensitive news from NAB was way back on 9 August. Then, it released news that it was to purchase Citigroup Inc‘s (NYSE: C) Australian consumer business.

However, the bank did launch specialist derivative products tied to environmental, social and governance (ESG) targets this week. The bank believes the derivatives will help encourage Australian businesses to consider sustainability as a financial risk factor.

Additionally, NAB also signed onto a ten-year strategic partnership with Avant Mutual and its subsidiary, Kooyong Group. The partnership will see the bank extend its business finance solutions to doctors and health care professionals. 

NAB’s executive for business & private banking, Andrew Irvine, commented that the partnership is an important part of the bank’s strategy to grow its market share in specialised sectors. 

While neither announcement was particularly price-sensitive, perhaps NAB’s focus on the future inspired faith from the market, thereby aiding its share price’s growth.

The post The NAB (ASX: NAB) share price is up 3% in a week. Here’s why appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX dividend shares to buy
• The NAB (ASX:NAB) share price has hit a 52-week high. Here’s why.
• ASX 200 bank shares could struggle due to lockdowns – expert
• Top broker picks best ASX 200 bank shares to buy coming out of reporting season
• How does the NAB dividend compare to its sector?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3kYZLVx

If you’re looking for exposure to the banking sector, then the Westpac Banking Corp (ASX: WBC) share price could be worth considering.

Although the shares of Australia’s oldest bank are up 32% in 2021, one leading broker believes they can go higher.

Who is bullish on the Westpac share price?

The team at Goldman Sachs still see a lot of value in the Westpac share price.

According to a recent note, the broker has a buy rating and $29.83 price target on the bank’s shares.

Based on the latest Westpac share price of $26.02, this implies potential upside of 14.5% over the next 12 months.

In addition to this, Goldman Sachs is forecasting fully franked dividends per share of 116 cents in FY 2021, 128 cents in FY 2022, and 141 cents in FY 2023. This represents attractive yields of 4.5%, 4.9%, and 5.4%, respectively, over the three financial years.

What did the broker say?

Goldman is positive on the bank due to its belief that the risk is to the upside for earnings in the near term. This is due largely to management’s bold cost cutting plans.

The broker explained: “We maintain our Buy rating given: i) the balance of risk to our earnings remains skewed to the upside, with our FY24E cost forecast about 10% above management’s FY24E target of A$8 bn (on a like-for-like basis), which, if achieved, would drive our FY24E cash earnings up by c. 7%; ii) volume momentum appears to have been reinvigorated, now tracking at 7.5% 3-month annualised as at Jun-21 (vs 0.2% 6 months ago), and iii) the stock is trading more than one standard deviation cheap versus the sector on PPOP multiples (15% discount vs. 1.5% long-run average discount), and our revised TP offers 22% TSR [at the time].”

So while the Westpac share price has smashed the market this year, Goldman doesn’t believe it is too late to invest.

The post Top brokers says Westpac (ASX:WBC) share price is a buy appeared first on The Motley Fool Australia.

More reading

• Two exciting international shares to consider as superfunds hit record global investments
• What is the outlook for the Westpac (ASX:WBC) share price?
• ASX 200 bank shares could struggle due to lockdowns – expert
• Here’s why the Westpac (ASX:WBC) share price is down in the last 3 months
• How does the NAB dividend compare to its sector?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2WVHRef

It certainly has been a great year for the Telstra Corporation Ltd (ASX: TLS) share price.

Year to date, the telco giant’s shares have risen a sizeable 28%.

This is more than double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Telstra share price up 28% in 2021?

The key driver of the Telstra share price this year has been its improving operational performance.

This ultimately led to the company releasing a solid full year result last month. For example, for the 12 months ended 30 June, Telstra reported an 11.6% decline in total income to $23.1 billion and a 9.7% decline in underlying EBITDA to $6.7 billion.

While a decline may not seem like something to get excited about, it was in line with the company’s guidance. Telstra was guiding to underlying EBITDA of $6.6 billion to $6.9 billion in FY 2021.

This solid performance allowed the Telstra Board to maintain its fully franked 16 cents per share dividend.

Based on the current Telstra share price of $3.85, this represents a full franked 4.2% dividend yield.

Positive outlook

Arguably giving the Telstra share price the biggest boost, though, was management’s outlook commentary.

After several years of declining sales and earnings, the rot is finally expected to stop in FY 2022.

Telstra’s CEO, Andy Penn, commented: “2021 was a really significant year for Telstra. We delivered results in line with guidance and we are seeing the focus and discipline on T22 pay off. It represents a turning point in our financial trajectory. Our second half underlying EBITDA was up on the first half, and our guidance for FY22 underlying EBITDA is $7.0-7.3 billion, which represents mid to high single digit growth.”

And better yet, further growth is being targeted in FY 2023.

Management said: “With our ongoing discipline on cost reductions, continued strong performance in our mobile business, and a diminishing financial impact from the rollout of the nbn, we have confidence in our outlook and we believe we are on the path to achieving our financial ambitions of $7.5 to $8.5 billion of underlying EBITDA and ROIC of around 8 per cent by FY23.”

All in all, this is expected to allow the Telstra dividend to be maintained at 16 cents per share for the foreseeable future.

Is a dividend increase coming?

One leading broker not only believes the dividend cuts are over, but also suspects that an increase is on the way.

According to a recent note out of Goldman Sachs, it has pencilled in an 18 cents per share fully franked Telstra dividend in FY 2024.

Based on the current Telstra share price, this will mean a 4.7% dividend yield that year.

Goldman has a buy rating and $4.30 price target on the company’s shares. This represents potential upside of almost 12% before dividends.

The post The Telstra (ASX:TLS) share price is now trading on a forecast 4.2% fully franked dividend yield appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• If you invested $1,000 in Telstra (ASX:TLS) shares a decade ago, here’s what it would be worth now
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most traded ASX 200 shares on Thursday
• These 3 ASX 200 shares were the most heavily traded on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2YmRqmJ

There are some potential ASX share investments that may be worth considering for their long-term growth potential.

Businesses that are growing their customer base, volume or revenue strongly may be good candidates to consider if they can turn that growth into profit growth over the long-term.

Here are two to consider:

TechnologyOne Ltd (ASX: TNE)

TechnologyOne, a tech company making software for large businesses and organisations, announced an acquisition this week. It’s called Scientia Resource Management, a UK company servicing the higher education sector.

The deal is expected to cost £12 million, including an initial payment of £6 million upfront.

Scientia provides mission critical software for over 150 leading universities across the UK and Australia.

The TechnologyOne CEO Edward Chung said:

The acquisition forms part of our strategic focus to deliver the deepest functionality for higher education and it will accelerate our growth and competitive position in the UK as well as have significant benefits in the Australian higher education market.

Prior to this acquisition, TechnologyOne said that over the long-term it sees continuing strong growth driven by its global software as a service (SaaS) enterprise resource planning (ERP) solution as it grows its penetration with existing customers, adds new customers and expands globally.

Over the next few years, the ASX share’s SaaS and continuing business is expected to grow by approximately 15% (or more) per annum. It also sees its total annual recurring revenue (ARR) increasing to $500 million or more by FY26, from the base (at the time) of $233 million.

Morgans currently rates TechnologyOne as a buy.

Tyro Payments Ltd (ASX: TYR)

Tyro is a business that provides payment solutions and banking products for merchants/businesses like cafes and many other places you’d need a payment terminal.

The ASX share is the fifth largest merchant acquiring bank in Australia by the number of terminals in the market, behind the four major banks including Commonwealth Bank of Australia (ASX: CBA). Tyro has also recently expanded into e-commerce.

Despite all of the impacts of COVID-19, Tyro continues to report transaction value growth. In FY21, transaction value increased by 26% to $25.45 billion. In the latest weekly update for the 2022 financial year to date, it has seen transaction value growth of 24%.

FY21 also saw the business swing to a positive result in earnings before interest, tax, depreciation and amortisation (EBITDA) terms to $14.2 million. The net loss after tax also improved by 21.6% to $29.8 million. The normalised net loss before tax surged 57.9% to a loss $10.9 million, an improvement from the loss of $25.9 million last year.

It is exploring multiple growth avenues to offer more to existing merchants and win new merchants. Tyro can also be a continuing beneficiary from the shift from cash payments to digital payments. Management are also on the lookout for bolt-on acquisitions.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $4.60.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, TechnologyOne climbs, Milton up
• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news
• Tyro (ASX:TYR) share price edges higher as CEO calls for open borders

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Vdx91O

Looking for a growth share or two to buy after the weekend break? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Appen Ltd (ASX: APX)

The first growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). It has been growing at a very impressive rate over the last few years. And while the pandemic has impacted demand and its growth, the future remains very bright. With AI and ML markets expected to continue their strong growth for many years to come, Appen appears well-placed over the next decade.

NEXTDC Ltd (ASX: NXT)

Another growth share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. Due to strong demand for data centre capacity, which is being driven by the structural shift to the cloud, NEXTDC has been growing its sales and operating earnings at a solid rate. Positively, this is expected to continue as the shift to the cloud continues. It could also boost its growth further if its plan to expand into the Asian market is a success.

Pushpay Holdings Group Ltd (ASX: PPH)

A final growth share to look at is Pushpay. It is a fast-growing donor management platform provider for the faith sector. It has been growing at a rapid rate over the last few years and more of the same is expected over the 2020s. This is due to its target of winning a 50% share of the medium to large US church market. This is a US$1 billion opportunity and many multiples of its current revenue. Given the quality of its offering and favourable industry tailwinds, it looks well-placed to achieve this.

The post 3 ASX shares with strong growth potential appeared first on The Motley Fool Australia.

More reading

• Here’s a look at how ASX WAAAX shares compare on growth
• Brokers name 3 ASX shares to buy today
• 3 fantastic ASX shares that could be buys
• Top brokers name 3 ASX shares to buy today
• Top ASX shares to buy in September 2021

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 MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and PUSHPAY FPO NZX. The Motley Fool Australia has recommended MEGAPORT FPO and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Vd8HO2