There are some unstoppable ASX shares that manage to keep growing almost every year and could be worth considering for a growth-focused portfolio.

Here are some names that could be worth watching:

Xero Limited (ASX: XRO)

The Xero share price is up 83% this year and it has gone up 780% over the past five years.

The ASX share has been delivering subscriber growth and revenue growth for many years. Xero’s FY21 half-year result demonstrated that growth with subscriber numbers going up 19% to 2.45 million and operating revenue grew 21% to NZ$410 million.

COVID-19 conditions caused the company to be very disciplined with its costs and Xero showed how much profit growth it can make when it tries to limit expense growth. The half-year earnings before interest, tax, depreciation and amortisation (EBITDA) grew 86% to NZ$120.8 million, net profit after tax (NPAT) rose by approximately NZ$33 million to NZ$34.5 million and the free cash flow went up approximately NZ$49.4 million to NZ$54.3 million.

Xero CEO Steve Vamos said at the time of the FY21 half-year result: “This result demonstrates the value our customers attribute to their Xero subscription and the underlying strength of Xero’s business model. We continue to prioritise investment in customer growth and product development in line with the long term opportunity we see.”

Two areas of the world that Xero is growing strongly is in the UK and the ‘rest of world’. UK subscribers grew by 19% to 638,000 in the FY21 first half and rest of the world subscribers went up 37% to 136,000.

CSL Limited (ASX: CSL)

The CSL share price has gone up 180% over the past five years.

Ben Clark from TMS Capital recently said this about CSL: “The Seqirus flu business has been given a huge free kick by COVID. We’re going to see plasma collections get easier, more affordable, and the volume should really start to improve through 2021. The return of elective surgeries will be good for the demand side of the business. And then you’ve just got this phenomenal R&D pipeline that continues to flow sort of new products through to the market.”

The FY20 result was another year of growth for CSL. Revenue went up 9% in constant currency terms and net profit after tax went up 17% to US$2.1 billion. This allowed the company to grow its total dividend by 9% to US$2.02 per share.

In FY21 the company is expecting to strong demand from its plasma and recombinant therapies to continue. With Seqirus, CSL is expecting to benefit from its differentiated products and strong demand for influenza vaccines. Sales of albumin are expected to normalise after the successful transition to the new business model in China.

COVID-19 restrictions are expected to impact CSL’s ability to collect plasma and add to the overall cost of collection, although CSL has several strategies to mitigate this impact. Its research and development response to COVID-19, and the new initiatives, will mean CSL is spending more on research and development but it will still be within the range of 10% to 11% of revenue as previously guided.

CSL is expecting to grow revenue by 6% to 10% in FY21, with net profit increasing by 3% to 8%.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 26.6% this year and it has risen by 142% over the last five years.

Demand for products from JB Hi-Fi and The Good Guys was elevated during FY20 as people decided to spend on items for their work, schooling and entertainment at home.

In FY20 the total sales were up 11.6% to $7.9 billion and underlying earnings per share (EPS) went up 33.2% to 289.6 cents. The underlying earnings before interest and tax (EBIT) margin improved by 89 basis points to 6.14%. That result helped grow the full year dividend by 33.1% to $1.89 per share.

In the first quarter of FY21, JB Hi-Fi Australia saw total sales growth of 27.3%, The Good Guys sales grew by 30.9% and JB Hi-Fi New Zealand sales dropped by 2.5%.

It’s the JB Hi-Fi dividend that is very attractive to Plato Asset Management which has JB Hi-Fi as a key holding, saying that businesses with fully franked dividends can achieve significant additional income for retirees. At the current JB Hi-Fi share price it has grossed-up dividend yield of 5.6%.

More reading

• 2 rapidly growing ASX tech shares to buy
• Leading fund manager names the ASX dividend shares to buy in 2021
• 3 reliable ASX 200 shares that keep growing
• 5 fantastic ASX shares to buy in 2021
• 2 of the best ASX healthcare shares to buy in 2021

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 CSL Ltd. and Xero. 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.

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Telecom companies provide the technology that ties together our increasingly connected world. Companies in this sector provide phone, internet, and television services and the infrastructure to support them.

The sector is often attractive to more conservative investors looking for dividend-yielding shares, but it’s also full of companies with good potential for capital appreciation.

Here’s the top 5 ASX telecom shares that have performed particularly well in 2020.

Company	1-year share price performance	Current share price	Market cap
1. Macquarie Telecom Group Ltd (ASX: MAQ)	123%	$52.29	$1.13 billion
2. Vocus Group Ltd (ASX: VOC)	40%	$4.14	$2.5 billion
3. Chorus Ltd (ASX: CNU)	22%	$7.35	$3.27 billion
4. Uniti Group Ltd (ASX: UWL)	13%	$1.71	$1.05 billion
5. Vonex Ltd (ASX: VN8)	104%	$0.22	$41.2 million

Macquarie Telecom

Macquarie Telecom share price is the clear winner in the battle for top spot, returning more than 130% for shareholders over the year.

The company has had a strong FY20, delivering an 8% increase in revenue to $266.2 million. It’s also been growing steadily for the last 3 years, returning a compound annual growth rate (CAGR) of 6.8%.

Macquarie Telecom has benefited from the boom in cloud computing, generating most of its revenue from hosting and data centre business. Its customers include Fortune 500 companies as well as the Australian Federal Government.

Analysts believe that Macquarie Telecom is set to benefit further over the next few years as the move towards cloud computing gathers pace globally.

Vocus 

Vocus share price returned 40% for investors over the course of the year. The company was founded in 2008 by famed entrepreneur and venture capitalist James Spenceley. 

Its core growth engine is the Vocus Network Services (VNS) – a fibre network that encompasses all of Australia, the Pacific rim to Hong Kong and the east coast of the United States, as well as New Zealand.

The company’s retail offering, meanwhile, includes brands like Dodo and iPrimus.

FY20 was the first year in the company’s 3-year turnaround plan, where it delivered total recurring revenues of $1.75 billion, a 1% decline on the prior year.

The company is predicting an even brighter FY21, and expects earnings to grown between 8% to 12% in its VNS business.

Chorus

New Zealand-based Chorus share price returned an enviable 22% in one year. 

This company is a juggernaut back home, owning the majority of telephone lines and exchange equipment in New Zealand. It’s also responsible for building 70% of the new fibre optic Ultra-Fast Broadband (UFB) network in the country.By law, the company cannot sell UFB bandwidth directly to consumers, instead it provides wholesale services to retailers.

Chorus reported a little-changed profit of NZ$52 million for the year to June. The company has been facing a few regulatory hurdles in New Zealand recently, the latest one being the proposal to impose levies totalling NZ$15 million a year on the telecommunication sector to fund the regulation of the industry.

Uniti

Uniti share price is up by a respectable 13% for the year. After crashing 53% during the February and March COVID-19 market panic, the Uniti share price came charging back, up 115% from its 19 March lows.

The company provides internet and telecommunication services, and was formerly called Uniti Wireless Limited.

Uniti is aggressively making a play into the fibre network business, acquiring Telstra Corporation Ltd (ASX: TLS) high broadband Velocity assets just last week. That acquisition represents Australia’s second largest private FTTP (fibre to the premises) network, with 65,000 connected premises of which 50,000 are active.

For the full year FY20, the company reported a 306% increase in year-on-year revenue, from $14.3 million to $58.2 million.

Vonex

I’ve put this share last on the list despite a superior return, as it’s an outlier being a small cap. The Vonex share price however has doubled, returning 104% for its shareholders in one year.

Vonex is a company on the move, acquiring various companies this year, while delivering solid revenues. In March, the company acquired 2SG Wholesale, bringing 150+ new wholesale customers and expanding its SME (small to medium enterprise) product offerings.

Last week, the company announced its intention to acquire Nextel, which it said would add $1 million to its recurring revenue stream.

Vonex posted healthy results for the September quarter, adding $1.64 million in new retail and wholesale business, and recording a 25% quarter-on-quarter increase.

More reading

• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Why the Uniti (ASX:UWL) share price is zooming 13% higher today
• Why the Uniti (ASX:UWL) share price is on watch today
• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’

Motley Fool contributor Eddy Sunarto 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.

The post Here’s the 5 best performing ASX telecom shares in 2020 appeared first on The Motley Fool Australia.

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Telecom companies provide the technology that ties together our increasingly connected world. Companies in this sector provide phone, internet, and television services and the infrastructure to support them.

The sector is often attractive to more conservative investors looking for dividend-yielding shares, but it’s also full of companies with good potential for capital appreciation.

Here’s the top 5 ASX telecom shares that have performed particularly well in 2020.

Company	1-year share price performance	Current share price	Market cap
1. Macquarie Telecom Group Ltd (ASX: MAQ)	123%	$52.29	$1.13 billion
2. Vocus Group Ltd (ASX: VOC)	40%	$4.14	$2.5 billion
3. Chorus Ltd (ASX: CNU)	22%	$7.35	$3.27 billion
4. Uniti Group Ltd (ASX: UWL)	13%	$1.71	$1.05 billion
5. Vonex Ltd (ASX: VN8)	104%	$0.22	$41.2 million

Macquarie Telecom

Macquarie Telecom share price is the clear winner in the battle for top spot, returning more than 130% for shareholders over the year.

The company has had a strong FY20, delivering an 8% increase in revenue to $266.2 million. It’s also been growing steadily for the last 3 years, returning a compound annual growth rate (CAGR) of 6.8%.

Macquarie Telecom has benefited from the boom in cloud computing, generating most of its revenue from hosting and data centre business. Its customers include Fortune 500 companies as well as the Australian Federal Government.

Analysts believe that Macquarie Telecom is set to benefit further over the next few years as the move towards cloud computing gathers pace globally.

Vocus 

Vocus share price returned 40% for investors over the course of the year. The company was founded in 2008 by famed entrepreneur and venture capitalist James Spenceley. 

Its core growth engine is the Vocus Network Services (VNS) – a fibre network that encompasses all of Australia, the Pacific rim to Hong Kong and the east coast of the United States, as well as New Zealand.

The company’s retail offering, meanwhile, includes brands like Dodo and iPrimus.

FY20 was the first year in the company’s 3-year turnaround plan, where it delivered total recurring revenues of $1.75 billion, a 1% decline on the prior year.

The company is predicting an even brighter FY21, and expects earnings to grown between 8% to 12% in its VNS business.

Chorus

New Zealand-based Chorus share price returned an enviable 22% in one year. 

This company is a juggernaut back home, owning the majority of telephone lines and exchange equipment in New Zealand. It’s also responsible for building 70% of the new fibre optic Ultra-Fast Broadband (UFB) network in the country.By law, the company cannot sell UFB bandwidth directly to consumers, instead it provides wholesale services to retailers.

Chorus reported a little-changed profit of NZ$52 million for the year to June. The company has been facing a few regulatory hurdles in New Zealand recently, the latest one being the proposal to impose levies totalling NZ$15 million a year on the telecommunication sector to fund the regulation of the industry.

Uniti

Uniti share price is up by a respectable 13% for the year. After crashing 53% during the February and March COVID-19 market panic, the Uniti share price came charging back, up 115% from its 19 March lows.

The company provides internet and telecommunication services, and was formerly called Uniti Wireless Limited.

Uniti is aggressively making a play into the fibre network business, acquiring Telstra Corporation Ltd (ASX: TLS) high broadband Velocity assets just last week. That acquisition represents Australia’s second largest private FTTP (fibre to the premises) network, with 65,000 connected premises of which 50,000 are active.

For the full year FY20, the company reported a 306% increase in year-on-year revenue, from $14.3 million to $58.2 million.

Vonex

I’ve put this share last on the list despite a superior return, as it’s an outlier being a small cap. The Vonex share price however has doubled, returning 104% for its shareholders in one year.

Vonex is a company on the move, acquiring various companies this year, while delivering solid revenues. In March, the company acquired 2SG Wholesale, bringing 150+ new wholesale customers and expanding its SME (small to medium enterprise) product offerings.

Last week, the company announced its intention to acquire Nextel, which it said would add $1 million to its recurring revenue stream.

Vonex posted healthy results for the September quarter, adding $1.64 million in new retail and wholesale business, and recording a 25% quarter-on-quarter increase.

More reading

• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Why the Uniti (ASX:UWL) share price is zooming 13% higher today
• Why the Uniti (ASX:UWL) share price is on watch today
• Vocus (ASX:VOC) founder: ASX is in ‘bubble territory’

Motley Fool contributor Eddy Sunarto 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.

The post Here’s the 5 best performing ASX telecom shares in 2020 appeared first on The Motley Fool Australia.

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Determining the best shares to buy now is clearly very subjective. Every investor will have their own views on which companies provide the most attractive investment opportunities.

However, some of the most appealing stocks are likely to have a mix of solid fundamentals, sound strategies and track records that suggest they can perform well in a variety of operating conditions.

Buying such companies at fair prices could prove to be a profitable move. They may be more likely to outperform the stock market and deliver high capital returns.

The best shares to buy now may have solid track records

A solid track record of performance in a range of economic situations may differentiate the best shares to buy now from their peers. The economic outlook is currently very uncertain. Political risks are elevated, while the challenges faced in 2020 regarding coronavirus look set to continue at least in the early part of next year.

Therefore, companies that have been able to deliver impressive sales and profit growth in a variety of operating environments could be relatively attractive. They may be able to outperform their peers in the short run, which could equate to lower levels of risk. Meanwhile, they could be in a stronger position to capitalise on a likely economic recovery in the coming years that produces a higher valuation.

A sound growth strategy

The best shares to buy now may also have sound strategies that can lead to growing profitability in the coming years. The past 12 months have included major change across many industries. This could mean that companies with static business models that fail to innovate quickly become outdated.

By contrast, companies that are able to respond quickly to changing consumer tastes may be the major winners in the likely stock market recovery.

Clearly, it is difficult to assess whether a specific strategy will be successful or not. However, by analysing a company’s recent investor updates compared to those of its peers, it is possible to identify the most flexible and adaptable businesses within a specific sector. They may be able to adjust their operations to accommodate a rapidly-changing economic outlook over the long run.

Financial strength ahead of an uncertain 2021

As mentioned, the best shares to buy now are likely to have solid financial positions. While this is always the case, a solid balance sheet may be worth more than usual in the eyes of investors at the present time. Companies with low debt and strong cash flow may offer less risk during what could prove to be an uncertain period for the economy.

They may also be able to invest to a greater extent in new products and services. Over time, this could produce higher profit growth and a rising share price.

More reading

• 3 ASX shares to buy for 2021 and beyond
• Why Amazon’s stock is so expensive
• 2 great ASX growth shares that are rapidly expanding
• 2 ASX dividend shares to buy for 2021
• 2 rapidly growing ASX tech shares to buy

Motley Fool contributor Peter Stephens 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.

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There are thousands of shares for investors to choose from on the Australian share market.

This can make it very daunting when you’re trying to construct a balanced portfolio of 10 or so shares.

To help you on your way, I have picked out three ASX shares that come highly rated. Here’s what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first share to look at is Damstra. It is a growing integrated workplace management solutions provider. Damstra’s cloud-based workplace management platform is used across the globe to track, manage, and protect workers and business assets.

Demand was so strong in FY 2020 from both new and existing costumers that Damstra delivered a 47% increase in revenue to $23.5 million. Pleasingly, this positive form has continued in FY 2021, with the company reporting record first quarter revenue, cash receipts, and operating cash flow.

Morgan Stanley has been impressed with its performance and has put an overweight and $2.00 price target on the company’s shares.

Goodman Group (ASX: GMG)

Another share to look at is Goodman Group. It is an integrated commercial and industrial property group which has been growing at a solid rate over the past few years. This has been driven by its focus on high-quality properties in key locations that management believes will deliver sustainable returns for investors.

These include logistics and warehouse facilities which have exposure to the growing ecommerce market through relationships with Amazon, DHL, and Walmart.

Analysts at Macquarie have been impressed with Goodman’s performance so far in FY 2021 and believe it is well placed for growth in the coming years. Its analysts have an outperform rating and $19.86 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final share to look at is Kogan. It is a growing ecommerce company and Australia’s equivalent to Amazon.

While Kogan has been performing positively in recent years, its growth went up a gear in 2020 after the pandemic accelerated the shift to online shopping. This led to a material jump in customer, sales, and earnings growth in FY 2020 and has continued into the new financial year.

But management isn’t settling for that. It undertook a capital raising earlier this year to raise funds to make value accretive acquisitions. Kogan has just acquired New Zealand based e-commerce company Mighty Ape for NZ$120 million and previously acquired furniture retailer Matt Blatt for a more modest $4.4 million.

Credit Suisse is a fan of Kogan. It recently put an outperform rating and $20.60 price target on its shares.

More reading

• 2 great ASX growth shares that are rapidly expanding
• 2 ASX growth shares to buy when the market reopens
• Got cash to invest? Here are 3 ASX shares to buy
• 2 dirt cheap ASX shares to buy in 2021
• 2 exciting small cap ASX tech shares to buy

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trading around $3,200, Amazon‘s (NASDAQ: AMZN) stock comes with a hefty price tag. Amazon shares are on an incredible rally, even if you zoom out and look at it from a longer-term perspective. 

Why are its shares so expensive? Let’s dig a little deeper and try to answer that question. You may find the conclusion a bit surprising. 

What’s causing the surge in Amazon’s stock price? 

Since the start of the pandemic, more and more people have been relying on Amazon to deliver what they want and need to their doorstep. In the first three quarters of the year, sales are up by 34.9% from the same period in 2019. Furthermore, the company is guiding investors that its fourth-quarter revenue is likely to increase by about 33%. And since coronavirus cases are surging in many regions of the world, it would not be surprising if Amazon reports much higher results than expected.

Amazon last commented on Prime membership totals in January, when it had 150 million members. Revenue from subscription services, which includes membership fees paid by Prime members, has increased by 53% in each of the last two quarters. So in the company’s next update, Prime membership is likely to be much higher. Prime members tend to shop more often and spend more than non-members do, and their presence attracts third-party sellers to Amazon’s platform.

Finally, the Amazon Web Services cloud computing business continues to grow revenue rapidly. This is especially important because in the third quarter, even though AWS made up 12% of total revenue, it provided 57% of overall operating profits. High double-digit growth in such a profitable segment brings in cash flow that it can then direct into operations, making it an even more desirable destination for online shoppers. 

Overall, Amazon continues to give shareholders a lot to be happy about.

Is Amazon’s stock actually expensive?

You might be thinking, “Of course it’s expensive — it costs $3,200 per share!” And when looking at it from that perspective, you would be absolutely correct. However, if you consider Amazon on several key financial metrics (see chart below), you will find that it’s not as expensive as you may have initially thought. Its price ratios on three important financial metrics are below historical levels. In particular, its price-to-sales ratio isn’t too much higher than the S&P 500’s average around 2.7, and it’s right in line with the tech-heavy Nasdaq Composite Index, currently around 4.3.

What’s more, Amazon is a better company today than it was when it was trading at higher multiples. The coronavirus pandemic has attracted many people and businesses to Amazon’s products and services. Some of those customers are likely to remain even after the eventual return to normalcy.

It may still be daunting to think of paying $3,200 to buy one share of stock. You may be comforted in knowing that many brokerages now offer the ability to buy fractional shares. That puts Amazon’s stock within the budget of all those interested in becoming shareholders — whether you have $32 to invest or $3,200. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• In a record-breaking year, here are some of the world’s most popular shares
• US “mum and pop” investors leaving the pros in the dust in 2020 stock rally
• How to invest in US shares in 2021
• Better buy: Amazon vs Chewy
• Amazon has a new strategy to capture India’s e-commerce market

Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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There are some great ASX growth shares out there that could be worth considering for a spot in your portfolio.

Here are two compelling businesses that are growing really quickly:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a business that sells a wide array of furniture and homewares. Indeed, it has over 180,000 products on sale from hundreds of suppliers. It operates a drop-shipping model, where products are sent directly to customers by suppliers which helps with faster delivery times and reduces the need to hold inventory, allowing a larger product range. Temple & Webster also has a private label range which is sourced from overseas suppliers.

The COVID-19 lockdown period caused a lot of growth for online retailers. But the ASX growth share increased its market share during this time – while the category grew by 57% during the months of April to July, Temple & Webster grew by 150% according to the company.

As Temple & Webster grows in size, it’s becoming a larger part of suppliers’ revenue which allows the ASX share to get better stock security, better terms and exclusive product ranges. Getting bigger also means it can invest more in technology, data, marketing and private label products. The company boasted that the bigger it gets, the stronger its customer proposition becomes, which is a helpful cycle.

In FY20 it grew full year revenue by 74% to $176.3 million and second half revenue rose 96%. Accelerated operational leverage helped grow earnings before interest, tax, depreciation and amortisation (EBITDA) by 483% compared to FY19 to $8.5 million, with the adjusted EBITDA margin growing from 2.5% to 5.3%.

It finished FY20 with $38.1 million of cash and no debt, which excludes the proceeds from its $40 million capital raising which was conducted in early FY21.

The ASX growth share continued expanding into FY21 with revenue for the period of 1 July 2020 to 19 October 2020 up 138% compared to the prior corresponding period. FY21 first quarter EBITDA generated was $8.6 million, which was more than the whole of FY20. October revenue growth was still more than 100% and the contribution margin was ahead of its 15% target.

According to Commsec projections, the Temple & Webster share price is valued at 36x FY22’s estimated earnings.

Kogan.com Ltd (ASX: KGN)

Kogan.com is another e-commerce ASX growth share. It sells a wide array of products and services such as phones, computers, furniture, insurance, credit cards and superannuation.

One part of the business is its membership program called Kogan First. Mr Kogan, the founder of the company, has spoken about the benefit to the company of its growing number of people using its loyalty scheme: “The Kogan First community of members grew exceptionally during the second half, and importantly these loyal members on average purchase and save much more often than non-members, demonstrating loyalty to the platform, and also demonstrating the significant savings and other benefits available through the loyalty program.”

The company’s margins have grown over the last few years. In FY17 the EBITDA margin was 4.3% and it had more than doubled to 9.3% by FY20.

Growth in FY21 to the end of October 2020 remained elevated, with gross sales up around 100%, gross profit was up 131.7% and adjusted EBITDA had grown by 268.8%.

Kogan.com is expanding in New Zealand with an acquisition called Mighty Ape, which is also a fast-growing e-retailer. It specialises in gaming, toys and other entertainment categories. The ASX growth share believes it can build on Mighty Ape’s offering and provide the infrastructure to grow further.

In FY21 Mighty Ape is forecast to generate revenue of $137.7 million, gross profit of $45.7 million and EBITDA of $14.3 million, which represents growth of 43.7%, 58.1% and 254.1% respectively.

According to Commsec projections, the Kogan.com share price is valued at 26x FY23’s estimated earnings.

More reading

• 2 ASX growth shares to buy when the market reopens
• Got cash to invest? Here are 3 ASX shares to buy
• 2 dirt cheap ASX shares to buy in 2021
• These ASX shares have more than doubled in 2020
• 2 exciting mid cap ASX shares to buy for the long term

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Are you looking for some dividend options for your portfolio in 2021? Then check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys for next year:

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT is an Australian ASX-listed real estate investment trust with a focus on social infrastructure properties. Management is targeting ongoing capital growth by investing in assets with specialist use, limited competition, and low substitution risk.

An example of this is its recent $122.5 million acquisition of a property that is under construction and will be the new corporate headquarters of Mater Misericordiae. This is Queensland’s largest Catholic not-for-profit health provider.

It is also thanks to this focus that the Charter Hall Social Infrastructure REIT enjoys such a high occupancy rate and long leases. At the end of FY 2020, it had a 99.5% occupancy rate for its 395 properties and a weighted average lease expiry (WALE) of 12.7 years.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.35 price target on its shares. The broker is expecting a 15 cents per share dividend in FY 2021. Based on the latest Charter Hall Social Infrastructure REIT share price, this represents a 4.5% yield.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company. It provides companies with innovative solutions to workforce challenges.

It was a strong performer in FY 2020 despite facing headings from the pandemic. For the 12 months ended 30 June, People Infrastructure reported an impressive 49.2% increase in normalised EBITDA to $26.4 million.

While no guidance has been given for FY 2021, analysts at Morgans appear very positive on its prospects. The broker recently put an add rating and $4.05 price target on its shares. In addition to this, it is forecasting a dividend of 11 cents per share this year.

Based on the latest People Infrastructure share price, this will mean a fully franked 3.2% dividend yield.

More reading

• 3 ASX shares for growth, income, and value investors
• 2 dirt cheap ASX shares to buy in 2021
• 2 ASX dividend shares offering generous yields in 2021
• Why the People Infrastructure (ASX:PPE) share price will be on watch today

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 People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a large number of growth shares for investors to choose from on the Australian share market.

Two in the tech sector that come highly rated are listed below. Here’s why they have recently been named as shares to buy:

Pushpay Holdings Ltd (ASX: PPH)

The first tech share to look at is Pushpay. It is a fast-growing donor management and community engagement provider to the church market.

Thanks to the quality of its platform, its leadership position in the market, and the shift to a cashless society, Pushpay has been growing at a very strong rate.

For example, the company recently released its half year results and revealed a 48% increase in total processing volume to US$3.2 billion. This led to Pushpay reporting a 53% increase in operating revenue to US$85.6 million and, thanks to the further widening of its margins, EBITDAF growth of 177% to US$26.7 million.

This strong form and its long runway for growth has caught the eye of analysts at Goldman Sachs. They have put a conviction buy rating and $2.59 price target on the company’s shares. Based on the current Pushpay share price of $1.68, this price target implies potential upside of over 54%.

Xero Limited (ASX: XRO)

Another tech share to look at is Xero. It is a leading New Zealand-based cloud-based business and accounting software provider.

Thanks to its successful evolution from an accounting platform into a full service small business solution over the last few years, the company has been growing its customer numbers and revenues at a rapid rate.

For example, at the last count Xero had 2.45 million subscribers and was generating half year operating revenue of NZ$409.8 million from them.

The good news is that due to the quality of its offering, the shift to the cloud, its global market opportunity, and burgeoning app ecosystem, Xero has been tipped for more of the same in the future.

Goldman Sachs is very positive on its prospects and recently put a buy rating and $157.00 price target on its shares.

More reading

• 3 reliable ASX 200 shares that keep growing
• 5 fantastic ASX shares to buy in 2021
• 3 of the best ASX shares to buy right now
• How to get the best out of the 2021 mining boom
• 2 of the best ASX 50 shares to buy today

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 PUSHPAY FPO NZX and Xero. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week saw a large 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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Morgans, its analysts have retained their add rating but trimmed the price target on this infant formula company’s shares to $12.20. This follows a2 Milk Company’s earnings guidance downgrade due to weakness in the daigou channel. While the broker acknowledges that investor sentiment will be impacted by the uncertainty it is facing, it takes comfort in the company’s strong performance in mainland China. And although it has downgraded its earnings forecasts by almost a third for the coming years, the broker still sees value in its shares at the current level. The a2 Milk share price ended the week at $10.95.

Alliance Aviation Services Ltd (ASX: AQZ)

Analysts at Morgans have also retained their add rating and lifted the price target on this contract, charter and allied aviation services provider’s shares to $5.00. The broker notes that Alliance Aviation is expanding its fleet to 73 aircrafts via the acquisition of 16 Embraer E190s for $85 million. Morgans believes the deal has been done on attractive terms and expects the expansion to result in higher levels of activity across its network in the coming years. The Alliance Aviation share price last traded at $3.90.

City Chic Collective Ltd (ASX: CCX)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this fashion retailer’s shares to $4.25. This follows the announcement of the acquisition of UK-based plus sized fashion retailer Evans. It notes that this acquisition is consistent with its stated goal of building a global footprint solely focused on the plus-sized market. Goldman expects the acquisition to deliver strong strategic benefits and provide a platform for cross-selling Avenue and City Chic products. The City Chic share price ended the week at $3.96.

More reading

• These were the best performers on the ASX 200 last week
• 3 top small cap ASX shares to buy
• 2 ASX growth shares to buy when the market reopens
• ASX 200 rises on Christmas Eve
• ASX 200 up 0.5%: BHP Samarco update, A2 Milk’s acquisition, Credit Corp rockets

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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