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There could be some cheap ASX share opportunities in December 2021 for investors to take advantage of.

These are businesses that brokers think look good value and have longer-term growth potential.

Here are two potential choices:

Bapcor Ltd (ASX: BAP)

At the time of time of writing, the Bapcor share price has fallen 17% from 22 November 2021.

Bapcor shares took a dive after it was announced that the long-serving managing director was going to leave the auto parts business.

There are some brokers that rate Bapcor as a buy, such as UBS with a price target of $8.50. The broker thinks that conditions remain positive for demand for car parts.

UBS believes that the Bapcor share price is valued at 16x FY23’s estimated earnings.

The ASX share has various plans to grow the business.

It wants to grow its network footprint, with both its physical store and online presence. That includes growing its store network from around 1,100 locations to 1,500 over the next five years. Geographic expansion in Asia is part of the plan.

Another area of planned growth is supplementing the brands sold by its businesses like Autobarn and Burson, with Bapcor’s own brand products which comes with higher profit margins. It wants to grow own brand sales from around 30% to 45% of sales.

Bapcor also wants to realise the benefits and efficiencies of the businesses, including investing in key systems, achieving even better purchasing terms and improving its logistics capability even further.

Management points out that more people are using their cars to holiday and that the average age of vehicles continues to rise, requiring more maintenance.

Nick Scali Limited (ASX: NCK)

Nick Scali is a leading furniture retailer in Australia and New Zealand.

According to Citi, the ASX share is trading at 16x FY23’s estimated earnings and rates it as a buy with a price target of $16.80.

Nick Scali says that its future growth will be primarily driven by the continuation of the new store rollout and increasing online penetration. It’s accelerating initiatives to capture these opportunities.

At the end of FY21, Nick Scali had 61 stores across ANZ, with a long-term target of 86 stores.

In terms of online, in FY21 it achieved online revenue of $15.3 million with earnings before interest and tax (EBIT) of $8.8 million. A lounge visualisation tool was launched in July 2021.

Citi is also very attracted to the potential with the recent acquisition of Plush-Think Sofas for an enterprise value of $103 million.

Nick Scali says that the two businesses have highly complementary product offerings and business models. It’s a “strong strategic fit expected to deliver material synergies to the combined business after a two-year integration period” according to Nick Scali.

Management say that there are opportunities for a new store rollout for both businesses.

Citi also expects that Nick Scali will pay a big dividend in the coming years. The ASX share could pay a grossed-up dividend yield of 6.7% in FY23 according to Citi.

The post 2 cheap ASX shares rated as buys by brokers in December 2021 appeared first on The Motley Fool Australia.

More reading

• Are these 2 top ASX shares beaten-up buys?
• Here are the top 10 ASX shares today
• 2 buy-rated ASX dividend shares
• These were the worst performing ASX 200 shares last week
• 2 ASX dividend shares expected to pay BIG income

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 recommended Bapcor. 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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November was tough for S&P/ASX 200 Index (ASX: XJO) banks. Not one saw its share price increase over the course of the month.

In fact, the S&P/ASX 200 Banks Index fell a whopping 10.5% last month.

But these 3 managed to outperform the sector, recording less severe falls than some of their peers.

Let’s take a look at which ASX 200 banks earned their place on the podium for best November performance.

The 3 top performing banking giants of November

National Australia Bank Ltd (ASX: NAB) – down 4.91%

November was a good month for NAB, and its share price reacted in turn, beating the sector by 5.5%.

NAB released its full-year earnings in early November, helping to boost its stock to a new 52-week high over the coming days.

It reported a 76.8% surge in cash earnings over the 12 months ended 30 September. It also announced a final, fully franked dividend of 67 cents.

Just before the month’s end, the Australian Competition and Consumer Commission gave it the go-ahead to acquire Citigroup‘s Australian consumer business.

Having ended October trading at $28.71, the NAB share price was $27.30 at 30 November.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) – down 5.12%

November was a quiet month for ANZ but its share price managed to keep its head above water.

Although, the ASX 200 bank saw itself technically booted out of the infamous, Big Four last month when the market capitalisation of Macquarie Group Ltd (ASX: MQG) overtook its own.

Luckily, as of the time of writing, it has regained its crown.

The ANZ share price finished October at $28.14 and ended November trading at $26.70.

Bendigo and Adelaide Bank Ltd (ASX: BEN) – down 7.35%

The Bendigo Bank share price earned its place on the podium for overachieving ASX 200 banking shares.

The big news out of the bank last month was its planned ‘digital transformation’.

It released a price sensitive presentation on the transformation on 26 November. Unfortunately, its share price slipped 0.9% that same day.

The transformation will see the bank creating digitised offerings for several of its services. It also includes the acquisition of fintech business, Ferocia, which was completed in August.

Ferocia, alongside the bank’s digital home loan platform, Tic:Toc will see Bendigo Bank offering home loans through its popular banking app, Up next year.

Having ended the previous month at $9.25, the Bendigo Bank share price was $8.57 at the final close of November.

The post Here are the 3 top-performing ASX 200 banks of November appeared first on The Motley Fool Australia.

More reading

• Why did the NAB (ASX:NAB) share price struggle in November?
• Here’s why ASX 200 banks are making news today
• ASX 200 (ASX:XJO) midday update: ANZ hit with class action, GUD sinks
• ANZ (ASX:ANZ) share price lower amid credit card class action
• What’s JP Morgan saying about ASX 200 bank shares?

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 owns shares of and has recommended Bendigo and Adelaide Bank Limited. 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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One thing the Australian share market is not short of is resources shares. But which ones should you consider buying ahead of others?

Here are two ASX resources shares analysts rate highly right now:

Rio Tinto Limited (ASX: RIO)

Goldman Sachs is a bullish on this mining giant. This is due largely to its attractive valuation, production growth, its aluminium business, and strong free cash flow. The latter is expected to underpin a dividend yield in the region of ~13% in FY 2022.

The broker currently has a buy rating and $121.00 price target on its shares. This compares favourably to the latest Rio Tinto share price of $94.20.

In respect to its aluminium business, Goldman commented: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $.”

Woodside Petroleum Limited (ASX: WPL)

Over at Morgans, its analysts are bullish on this energy producer. The main reason for this is the company’s impending merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

The broker thinks Woodside is getting a good deal and expects it to be transformative for the company.

As a result, its analysts have put an add rating and $29.95 price target on its shares. This is notably higher than the current Woodside share price of $21.10.

Morgans commented: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”

The post Analysts say these are the ASX resources shares to buy now for big returns appeared first on The Motley Fool Australia.

More reading

• Did the Rio Tinto (ASX:RIO) share price start a recovery in November 2021?
• 5 things to watch on the ASX 200 on Friday
• 2 more of Morgans’ best ASX share ideas for December
• The Fortescue (ASX:FMG) share price hit by broker downgrade
• 5 things to watch on the ASX 200 on Thursday

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 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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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.

What happened

Shares of Chinese electric-vehicle (EV) maker Nio (NYSE: NIO) were trading lower on Thursday, on rising COVID-19 concerns a day after it announced its best monthly sales result to date.

As of 11 a.m. ET today, Nio’s American depositary shares were down about 2.4% from Wednesday’s closing price.

So what

As is true elsewhere in the world, the emergence of the new omicron variant has rekindled concerns about potential business disruptions in China. Those concerns were hitting the EV segment on Thursday; Nio’s was just one of many EV-related stocks trading lower in the session. 

For the moment at least, the company is doing well. Nio said yesterday that it delivered 10,878 vehicles in November, its best monthly total to date and more than double its year-ago result. It was only the second time that its monthly delivery total had broken the important 10,000 mark, and it’s a sign that Nio (at least for the moment) has its supply chain issues under control.

Now what

Should the automaker’s investors be worried about omicron? Nio thinks not, or at least not yet. The company issued a statement on Wednesday reassuring fans and investors that its annual Nio Day is on track to happen on Dec. 18 as scheduled.

The company generally uses its annual Nio Day gatherings to showcase upcoming new products and technologies. Analysts expect this year’s event to feature two upcoming new models, including an electric sedan that may be called the ET5. Both of the new models are believed to be on track to launch later in 2022.

Those models will follow the launch of the company’s new flagship, the sleek ET7 sedan. Nio is expected to begin shipping the ET7 in early 2022. 

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

The post Why Nio stock is trading lower today appeared first on The Motley Fool Australia.

More reading

• Could Rivian, Lucid, or Nio become the next Tesla?

John Rosevear 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.

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

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The National Australia Bank Ltd (ASX: NAB) share price has failed to continue its upwards trajectory in November.

The banking giant’s shares dropped around 5% over the course of last month following the company’s FY21 results.

In comparison, the S&P/ASX 200 Index (ASX: XJO) also ended November in the red, shedding 1.56% over the same time frame.

And NAB wasn’t the only ASX 200 financial share to suffer in November.

The Commonwealth Bank of Australia (ASX: CBA) share price dived around 10% last month, while Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) sank 14% and 5%, respectively.

Let’s take a look at what might have weighed on NAB shares recently.

What happened to NAB in November?

The NAB share price finished lower than it started last month, dragged down by weakened investor sentiment.

Regardless of the company registering a mostly positive set of numbers in its FY21 scorecard, it appears the market expected a slightly better result.

The bank achieved cash earnings from continuing operations of $6,558 million, reflecting a 76.8% increase over the prior corresponding period. However, Australian investment house Morgans had estimated NAB to report cash earnings from continuing operations of $6,597 million in FY21.

This saw investors backtrack on NAB shares by 0.76% to $28.99 on the day.

Looking ahead, management noted that a pick-up in activity was forecasted as lockdowns begin to ease. NAB predicts its net interest margin to improve in FY22, before turning positive the following financial year.

Furthermore, the bank anticipates that lower funding costs and a favourable deposit mix will support profit growth.

NAB share price summary

Despite recording a negative performance, the NAB share price has risen by 20% in 2021.

Its shares reached a 52-week high of $30.30 after the release of its FY21 results before investors sold it down. It’s worth noting that even at today’s prices, the company’s shares are trading are pre-COVID-19 levels.

NAB commands a market capitalisation of roughly $90.32 billion, making it the fourth-largest company on the ASX.

The post Why did the NAB (ASX:NAB) share price struggle in November? appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 banks are making news today
• What’s JP Morgan saying about ASX 200 bank shares?
• Here’s why some ASX 200 bank shares are having a terrific Tuesday
• At this share price, is NAB (ASX:NAB) the best big four bank to buy?
• Do recent sell-offs make the NAB share price a buy?

Motley Fool contributor Aaron Teboneras 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 recommended Westpac Banking Corporation. 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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The Commonwealth Bank of Australia (ASX: CBA) share price was out of form in November.

During the month, Australia’s largest bank saw its shares tumble a disappointing 11%.

This compares to a loss of 0.9% by the S&P/ASX 200 Index (ASX: XJO).

What happened to the CBA share price in November?

Investors were selling down the CBA share price last month in response to the banking giant’s first quarter update.

For the three months ended 30 September, the bank reported a 3% increase in operating income over the prior corresponding period but a 1% decline over the quarterly average during the second half of FY 2021.

But the main disappointment came from its net interest margin, which was considerably lower in the quarter. Management advised that this was driven by higher liquid asset balances, home loan price competition, switching to lower margin fixed rate loans, and the continued impact of a low interest rate environment.

This sparked fears that retail-focused banks could underperform in the near term, leading to many investors jumping ship.

Is this a buying opportunity?

While the broker community is overwhelmingly bearish on the CBA share price, there is one leading broker that remains positive.

That broker is Bell Potter. In response to its update, the broker retained its buy rating but trimmed its price target to $111.00.

Based on the current CBA share price, this implies potential upside of approximately 16% for investors over the next 12 months.

In addition, Bell Potter expects the bank’s shares to provide a fully franked 4.2% dividend yield in FY 2022. Combined, this brings the total potential return to ~20%.

While its analysts were disappointed with CBA’s result, they still see enough value to maintain their buy rating.

The post What happened to the CBA (ASX:CBA) share price in november appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 banks are making news today
• Here’s what happened with Bitcoin’s record-breaking November
• ASX shares to buy for the Omicron COVID outbreak
• Why this top broker thinks CBA (ASX:CBA) shares are the least attractive of all the ASX banks
• What’s JP Morgan saying about ASX 200 bank shares?

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 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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The Telstra Corporation Ltd (ASX: TLS) share price continues to climb. It has gone on a winning run in 2021 to date and that run continued in November 2021.

Telstra shares rose 6% in November. The business has seen a rise of 34% since the beginning of the calendar year.

The telco has made a number of strategic announcements in 2021.

What announcements were made in November 2021?

The latest major market sensitive announcements from Telstra came in September and October.

But there was one announcement that represented over a $1 billion of revenue to Telstra.

The telco announced an agreement to renew its contract with the Australian Department of Defence to deliver critical network and telecommunications services.

This five-year contract, worth over $1 billion, will see Telstra continue to provide “leading-edge technology and telco solutions”. It is the largest ever customer contract of its kind signed by Telstra Enterprise and contributes to Telstra’s goal of returning the Enterprise business to growth.

But as mentioned, Telstra has made two announcements in recent months that investors may be factoring into the Telstra share price.

Digicel Pacific and T25

For the last few years, Telstra has been working on its T22 strategy. That timeline is almost over, so now Telstra is looking at its aims over the next few years.

5G is the next important stage of mobile phone development, so Telstra is looking to extend its coverage to 95% of the population.

Telstra wants to grow its Telstra Plus membership to 6 million by FY25. The telco is also aiming to achieve compound annual growth of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the mid-single digits and earnings per share (EPS) in the high-teens to FY25.

Other goals includes reducing its net fixed costs by another $500 million by FY25 and maximising fully franked dividends, seeking dividend growth over time.

Telstra has essentially committed to paying at least a $0.16 annual dividend, which translates to a grossed-up dividend yield of 5.6%.

At the end of October 2021, Telstra announced it was buying the South Pacific telco Digicel for US$1.6 billion, plus up to US$250 million depending on how the business performs. Telstra only had to contribute US$270 million of the equity thanks to support from the Australian government through a combination of non-recourse debt facilities and equity-like securities.

In the year to 31 March 2021, Digicel Pacific generated EBITDA of US$233 million.

After its good run, is the Telstra share price a buy?

Plenty of brokers think that Telstra shares are still reasonably attractive.

For example, Credit Suisse rates Telstra as a buy with a price target of $4.40. The broker thinks Telstra shares are currently valued at 24x FY23’s estimated earnings.

The post The Telstra (ASX:TLS) share price keeps rising. What happened in November? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Thursday
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Will its energy expansion drive the Telstra (ASX:TLS) share price to new heights?
• 2 excellent ASX 200 dividend shares to buy in December
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far

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 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.

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Medallion Financial managing director Michael Wayne tells of the 3 best options for long-term ‘sleep at night’ investing.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for 4 years, which stock would you want to hold?

Michael Wayne: It’s a challenging question because companies, when they come out with their updates every February and August, you’re able to make an assessment. 

But look, if I go boring, I could say an index ETF, maybe in the US, we think is a pretty good way of going about that. 

Or something like WAM Capital Limited (ASX: WAM), maybe not now, given the big premium that it trades on — but a good quality fund manager with a long-term track record. 

Otherwise, if I was to go an individual stock, again I’d probably have to go boring here and go something like a CSL Limited (ASX: CSL). Something with an entrenched growth path and a long-term track history of delivering on management’s forecasts. 

They’re the 3 options I think people could consider.

MF: It’s interesting that you raised ETFs and LICs as options, because among 55 episodes of Ask A Fund Manager, you’re the first who’s said that. It makes a lot of sense because they’re the most stable and reliable over the longer term, aren’t they?

MW: You’re getting a diversified portfolio and… the market over a 4- or 5-year period should do quite well. So that way, if you just go for a broad exposure, that could turn out to be the best option, because anything could happen with a business. They can have a [bad] update and get on a downgrade cycle or whatever it may be.

The post You want an ASX share to hold for 4 years? Here are 3! appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• CSL (ASX:CSL) share price dips amid $10b acquisition rumours
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• Advisor reveals the 3 most popular ASX shares among his clients
• The CSL (ASX:CSL) share price reached a new 52-week high last week. What’s next?

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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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The Qantas Airways Limited (ASX: QAN) share price hit turbulence since the emergence of the Omicron COVID mutation.

If that wasn’t enough to worry shareholders, a top broker is warning that the airline may need a capital injection soon.

It isn’t only the Qantas share price that’s under the Omicron cloud, of course. The Webjet Limited (ASX: WEB) share price and Flight Centre Travel Group Ltd (ASX: FLT) share price have also been on the nose.

Qantas share price buffeted by Omicron

The more contagious COVID-19 variation is threatening to send economies back into lockdowns and shut borders.

While this isn’t the time to panic as a lot is still unknown about Omicron, Credit Suisse has run some scenarios to measure the impact on our largest airline.

“Key Omicron issues for air travel reopening are the severity of symptoms, efficacy of existing vaccines and how long it will take to conclusively learn this,” said the broker.

“If its two weeks, Qantas’ busy Christmas travel period may be saved.”

Longer flight path to recovery

The danger here is that it may take two months for scientists to work out how deadly Omicron is. It might take even longer for vaccines to be modified to fight the mutation.

“Given the record of some risk averse state leaders, we think reopening is likely to be delayed,” warned Credit Suisse.

“We lower forecasts for a 3-4 month delay to air travel recovery, with recovery shifted to 4Q FY22.”

Is the Qantas share price worth buying?

Fortunately, in this base case scenario, Qantas is unlikely to require a further capital raise. But even with this outcome, the Qantas share price is overvalued, noted the broker.

This is why Credit Suisse rates Qantas shares as “underperform” (meaning “sell”) as it calculated fair value at only $4.10 a share.

Brace for emergency landing

But cracks in Qantas’ balance sheet will be evident under a “bear case” scenario. This is when we find out that current vaccines do not protect us from severe illness caused by Omicron. Under such a scenario, the travel recovery will be delayed by nine to 12 months.

The airline is likely to post a profit before tax (PBT) loss of $1.75 billion in FY22 followed by a $290 million loss the following year.

In turn, this will lead to Qantas’ net debt reaching $7.3 billion in the current financial year. Credit Suisse reckons that Qantas will then be forced to undertake an emergency capital raise to repair its balance sheet.

The Qantas share price will only be worth $3.50 under this bleak scenario, in Credit Suisse’s opinion.

Saving Christmas

But there is a bull case that the broker considered as well. This assumes the Christmas travel boom stays on course as Omicron poses less of a threat.

This will allow Qantas to post a FY22 pre-tax loss of $1.2 billion before delivering a PBT of $1.35 billion in FY23.

In this bull case, Credit Suisse estimates that the Qantas share price will be worth $5.30 a share. That’s a 7.5% upside to the last closing price for the ASX airline.

The post Is the Qantas (ASX:QAN) share price at risk of a capital raise? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Here’s what happened to the Webjet (ASX:WEB) share price in November and what could come next
• ‘Phenomenal’ points auction fails to ignite Qantas (ASX:QAN) share price
• 3 ASX travel shares to buy while Omicron scares everyone
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. 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 recommended Flight Centre Travel Group Limited and Webjet 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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If you’re looking for growth shares to buy, then look no further. Listed below are two ASX growth shares which have been tipped for strong growth in the future.

Here’s why analysts have rated them as buys:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. After starting life from a garage in Melbourne in 2010, Adore Beauty has evolved into an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.

It also has almost 1 million customers, who are underpinning strong sales growth. For example, after delivering a strong result in FY 2021, Adore Beauty followed this up with a 25% increase in first quarter revenue to $63.8 million.

But as large as this number is, it is still only a small portion of the Australian beauty and personal care (BPC) market which is estimated to be worth $11.2 billion and growing. This gives Adore Beauty a long runway for growth over the next decade, particularly as more and more sales shift online.

UBS is positive on Adore Beauty’s outlook. As a result, the broker currently has a buy rating and $6.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX growth share that could be in the buy zone is ResMed. It is a sleep treatment-focused medical device company with a portfolio of industry-leading products supporting sufferers of afflictions including sleep apnoea and chronic obstructive pulmonary disease.

ResMed also has a growing software business that looks well-placed to benefit from the shift to home healthcare.

Like Adore Beauty, the company has a long runway for growth. This is due to its significant market opportunity, with an estimated ~1 billion people suffering from sleep apnoea worldwide.

Morgans is a fan of ResMed. It recently retained its add rating and put a price target of $40.80 on its shares. The broker believes ResMed is well-placed as it “builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

The post 2 ASX shares with strong long term growth potential appeared first on The Motley Fool Australia.

More reading

• Advisor reveals the 3 most popular ASX shares among his clients
• 2 ASX shares looking good in turbulent times
• Why a leading broker is bullish on these 3 ASX shares
• Analysts name 2 fantastic ASX 200 shares to buy
• Why analysts think the Adore Beauty (ASX:ABY) share price has 40% upside

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 Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and ResMed Inc. 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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