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Due to the quality on offer in it, the tech sector could be a great place to make long term investments.

But which shares should you look at? Two exciting ASX tech shares that have been given buy ratings are listed below. Here’s why they might be shares to buy:

Life360 Inc (ASX: 360)

Life360 is a San Francisco-based company that provides families with a market leading app that create tools that remove uncertainty from modern life.

Among its many features are real-time location sharing and notifications and driving safety features like Crash Detection and Roadside Assistance.

Life360’s app is proving to be very popular with families. In fact, at the last count, the company had more than 25 million monthly active users (MAU) across 195 countries. And that’s at a time with low levels of mobility because of the pandemic.

Bell Potter is a fan of Life360. Its analysts currently have a buy rating and $7.70 price target on its shares. The broker notes that the company is carving out a significant global footprint with its family app at the core. Furthermore, it is expecting the company to benefit greatly once the pandemic passes and people are on the move again.

Volpara Health Technologies Ltd (ASX: VHT)

Another ASX tech share to look at is Volpara. It is a New Zealand-based healthcare technology company best known for its VolparaEnterprise software solution.

VolparaEnterprise is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services. This high quality software has been growing rapidly in popularity, leading to strong market share gains.

So much so, at the end of the third quarter of FY 2021, Volpara reported that its software was used in over 27% of screenings for women in the United States.

As well as the core VolparaEnterprise product, Volpara has been developing and acquiring complementary software. These add-ons are expected to drive a significant increase in average revenue per user (ARPU) in the future. In fact, management estimates that its whole suite is worth US$10 per user. This is notably more than its current ARPU of US$1.22.

Morgans is a big fan of Volpara. Earlier this month the broker put an add rating on its shares and lifted its price target to $1.94.

More reading

• 2 little known small cap ASX shares to buy
• Here’s an ASX tech share flying under the radar: fundie
• Top brokers name 3 ASX shares to buy today
• Why AGL, Clover, QBE, & Volpara shares are pushing higher today
• 2 small cap ASX shares with huge potential

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 VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Life360, Inc. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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Are you looking to boost your income with some dividend shares? Then you might want to consider the ones listed below.

Here’s why analysts have given them buy ratings:

People Infrastructure Ltd (ASX: PPE)

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

It has been growing strongly over the last couple of years. For example, in FY 2020, People Infrastructure reported a 49.2% increase in normalised EBITDA to $26.4 million.

It followed this up with a solid half year result in February. For the six months ended 31 December, the company recorded a 3.1% increase in revenue to $201 million and a 51.5% increase in normalised net profit to $14.8 million.

Since then, the company has entered into a binding agreement to acquire the SwingShift Nurses business.This business is forecast to generate $1 million in operating earnings in the first 12 months following completion.

Morgans is a fan of the company. It recently retained its add rating and lifted its price target to $4.22. The broker is also forecasting a fully franked dividend of 13 cents per share in FY 2021.

Based on the latest People Infrastructure share price of $3.67, this represents an attractive 3.5% dividend yield.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend share to consider buying is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Sonic Healthcare has been an even stronger performer than People Infrastructure in FY 2021. Last month it released its half year results and reported a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million.

And while COVID-19 testing was a key driver of this growth, the rest of its business also performed positively.

The good news is that COVID testing continues to be strong and is expected to remain that way for at least the rest of 2021. This bodes well for its performance in the second half and FY 2022.

Credit Suisse is bullish on the company and has an outperform rating and $40.00 price target on its shares. The broker is also expecting a 93 cents per share partially franked dividend in FY 2021 and a 97 cents per share dividend in FY 2020. Based on the current Sonic Healthcare share price, this will mean yields of 2.6% and 2.7%, respectively.

More reading

• Here’s an ASX tech share flying under the radar: fundie
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 up 0.4%: Bank shares lower, Xero shares upgraded
• 2 high quality ASX dividend shares to buy today
• Top brokers name 3 ASX shares to buy next week

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 and Sonic Healthcare 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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There are some top ASX shares that may be worth a spot on your watchlist because of their strong business plans.

The below businesses are generating good growth, expanding their businesses and getting the attention of investors:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is the largest retailer of baby and infant products. It has been operating for over 40 years and it now has 59 stores with plans for up to 100 stores.

In July 2020, Baby Bunting started shipping online orders to New Zealand. It has announced plans to launch a multi-channel retail offering in New Zealand with the first store anticipated to open in FY22 as part of a network plan of at least 10 stores. The ASX retail share noted there are no large format baby specialty retail chains in the market.

Morgans is one of the brokers that rates Baby Bunting as a buy with a price target of $6.39 – it likes the move into New Zealand because it improves the growth runway even more.

Baby Bunting had a particularly strong first half of FY21 – total sales increased by 16.6% to $217.3 million, with online sales going up by 95.9%. The gross profit margin improved by 41 basis points to 37.4%, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) increased 29.7% to $18.5 million and pro forma net profit after tax (NPAT) grew 43.5% to $10.8 million.

The growth has continued into the second half of FY21, with comparable store sales growth for the first six weeks of 18.5%.

According to Morgans, the Baby Bunting share price is valued at 28x FY21’s estimated earnings.  

Reject Shop Ltd (ASX: TRS)

Reject Shop aims to provide great value on everyday items. It sells some brands like Cadbury, L’Oreal, Nivea, Finish, Omo and Carmen’s. It now has over 350 store locations across Australia, after starting over four decades ago.

The discount ASX retail share is liked by a few different brokers including Morgans, which was impressed by the level of growth and level of costs.

Morgans rates Reject Shop as a buy with a price target of $8.91.

In the recent reporting season, Reject Shop said that underlying net profit after tax (NPAT) went up by 46.5% to $16.3 million. Underlying earnings before interest and tax (EBIT) grew 44.9% to $23.3 million and underlying EBITDA went up by 20.8% to $31.1 million.

Whilst keeping in mind that the company expects to report a loss in the second half of the year, it continues to focus on fixing the business as part of the turnaround strategy.

In the second half, the ASX share’s management will continue to focus on cost reduction, driven by business simplification and operational efficiency.

Reject Shop CEO Andre Reich said:

We believe the discount variety sector presents a significant opportunity for growth over the medium to long term. As Australia’s largest discount variety retailer, and with our strong balance sheet, The Reject Shop is well positioned to capture this opportunity.

There is further work to be done to ‘fix’ The Reject Shop and, once the cost base is optimised, we expect to be well-placed to pursue longer-term growth via store network expansion and by growing our online presence.

According to Morgans, the Reject Shop share price is trading at 27x FY21’s estimated earnings and 18x FY22’s estimated earnings.

More reading

• 2 ASX shares that may be hit by Australia’s declining birth rate
• ASX retail shares beware: Aldi e-commerce is coming
• How will ASX retail shares fare when JobKeeper winds down?
• 3 top ASX shares rated as buys by brokers
• 2 ASX shares rated as buys by many brokers

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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Because I’m a fan of small cap shares, I feel quite lucky to have a large number to choose from on the Australian share market.

Three small cap ASX shares that stand out from the rest and could have bright futures are listed below. Here’s what you need to know about them:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is an artificial intelligence-powered sales enablement automation platform provider. Strong demand for its platform from some of the biggest companies in the world has underpinned solid growth in recent years. This has continued in FY 2021, with Bigtincan recently releasing a very strong half year result. The company reported annualised recurring revenue (ARR) of $48.4 million at the end of the half, which was a 50% increase over the prior corresponding period.

Ord Minnett currently has a buy rating and $1.08 price target on its shares.

Booktopia Group Ltd (ASX: BKG)

Booktopia is an online book retailer which has also been growing at a rapid rate. Last month it released its half year results and revealed a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. This was driven by the shift to online shopping and its new distribution centre. The latter helped the company ship more units than ever before during the half.

Morgans is a fan and has an add rating and $3.53 price target on Booktopia’s shares.

Doctor Care Anywhere Ltd (ASX: DOC)

A final small cap to watch is Doctor Care Anywhere. It is a growing UK-based telehealth company that is aiming to deliver high-quality, effective, and efficient care to its patients. Due partly to the pandemic accelerating the adoption of telehealth services, Doctor Care Anywhere is another company growing quickly. In January the company released its fourth quarter update and reported a 151% increase in revenue to 3.8 million pounds.

Bell Potter is positive on its prospects. The broker has a buy rating and $1.95 price target on the company’s shares.

More reading

• Bigtincan (ASX:BTH) share price continues slide despite strong underlying growth
• 2 of the best small cap ASX shares to buy
• Airtasker (ASX:ART) share price cools after explosive IPO
• 3 exciting small cap ASX shares to watch
• 3 small cap ASX shares rated as buys

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 BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited and Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended BIGTINCAN FPO and Doctor Care Anywhere Group PLC. 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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Fortunately, in this low interest rate environment, the Australian share market has plenty of options for investors looking to generate a passive income.

Two dividend shares that have recently been named as buys are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

This supermarket operator has been performing very strongly over the last 12 months. This has been driven by a very favourable shift in consumer behaviour during the pandemic. 

And while the tailwinds it has been experiencing are easing and growth will be hard to come by in the second half of FY 2021, analysts at Goldman Sachs remain positive on the company.

They recently reiterated their buy rating and $20.70 price target on its shares. Goldman is positive on Coles’ medium term outlook thanks to its strong market position, Refreshed Strategy, and focus on automation.

The broker is forecasting a 62 cents per share dividend in FY 2021 and then a 67 cents per share dividend in FY 2022. Based on the current Coles share price, this represents fully franked 3.9% and 4.2% yields.

Integral Diagnostics Ltd (ASX: IDX)

Another ASX dividend share that Goldman Sachs is a fan of is Integral Diagnostics. It operates a total of 72 radiology clinics across Australia, including 26 comprehensive sites.

Integral Diagnostics has been growing strongly and has continued this positive form in FY 2021. For the six months ended 31 December, the company delivered a 29.5% increase in revenue to $170.7 million and a 61.1% lift in net profit after tax to $23.2 million.

Goldman Sachs is confident there will be more of the same in the future. It notes that Integral Diagnostics is a well-run business in an attractive industry, with a relatively secure volume profile of mid/high single digit growth. In addition to this, the broker sees opportunities for the company to accelerate its growth through developments and acquisitions.

Its analysts currently have a buy rating and $5.50 price target on the company’s shares. They are also expecting Integral Diagnostics to pay fully franked dividends of 11.4 cents, 13.9 cents, and 15.4 cents per share over the next three years. Based on the latest Integral Diagnostics share price of $4.74, this represents yields of 2.4%, 2.9%, and 3.25%.

More reading

• 3 ASX dividend shares with yields over 4% right now
• Here’s why the Food Revolution (ASX:FOD) share price jumped 8% today
• 2 top ASX ETFs to buy right now
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• ASX retail shares beware: Aldi e-commerce is coming

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Integral Diagnostics 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 an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

Rather than deciding on which individual shares you should put your funds into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, I have picked out three ETFs which could be quality long term options for investors. They are as follows:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to a number of exciting tech shares in the Asian market. This includes the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. There are also a number of lesser known but high quality companies in the fund such as Netease and Pinduoduo. Collectively, they look well-positioned for growth over the next decade and beyond.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF to look at is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this is heavily under-represented on the ASX. Which is a real shame, as it is a rapidly growing area of the market. Among the companies in the fund are cyber security giants Accenture, Cloudflare, Crowdstrike, and Okta. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

A final ETF to consider is the BetaShares NASDAQ 100 ETF. This ETF will give you exposure to the 100 largest non-financial shares on the famous NASDAQ index. This means you’ll be buying a slice of tech giants including Amazon, Apple, Facebook, and Microsoft, to name a few. Also included in the fund are non-tech stocks such as Starbucks, and Tesla. Given the positive long term outlooks of these companies, the BetaShares NASDAQ 100 ETF looks well-placed to generate solid returns for investors.

More reading

• 2 tech ETFs delivering strong long-term returns
• Afterpay and Zip were among the most traded ASX shares last week
• How to counter the ASX 200’s Achilles heel
• 3 top ETFs for ASX investors to buy
• 3 five-star ASX shares to buy in March

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 two ASX shares that multiple brokers have named as a buy, so they could be worth looking at.

Brokers don’t get everything right, but it can be useful to know what they think are opportunities. Businesses that several brokers think are buys could be particularly interesting to investors:

Altium Limited (ASX: ALU)

Altium is one of the larger ASX tech shares that Aussies can invest in on the ASX. It specialises in electronic PCB software for engineers to design the products, devices and vehicles of the future.

There are currently at least four brokers that rate the Altium share price as a buy, including Morgan Stanley and Credit Suisse.

Brokers weren’t exactly impressed by the FY21 half-year result, noting the higher costs of the business and the underperformance against expectations.

Morgan Stanley also noted that Altium is now assuming that it will be able to find an acquisition, or acquisitions, that can plug the 2025 goal gap left by its weaker performance during COVID and the sale of the TASKING business.

The FY21 half-year result showed all the numbers going in the wrong direction – continuing revenue fell 4% to US$80 million, reported expenses rose 3% to US$53 million, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 15% to US$27 million and profit before tax declined 23% to US$20.7 million. Operating cashflow and the dividend also went backwards.

However, management are heavily focused on future growth with its Altium 365 product, which is a cloud collaboration platform. It could be important for winning over many more engineer customers into the future. Altium has a 100,000 subscriber goal for Altium Designer. 

According to Morgan Stanley, the Altium share price is valued at 50x FY21’s estimated earnings. Morgan Stanley has a price target of $37 on Altium.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer of jewellery. Its aim is to “bring brilliantly affordable, on-trend jewellery to the world, whilst delighting our customers with our commitment to continually improve her Lovisa experience.”

There are currently at least three brokers that like the ASX retail share, including Morgans that rates Lovisa as a buy with a price target of $17.95.

The broker believes Lovisa will benefit from ANZ retail returning to a new normal quicker than other regions. Morgans thinks that the Beeline purchase was a good one and could help grow earnings nicely after the rebranding.

Last month the company reported that its revenue was down 9.8% in the first half of FY21 and the net profit after tax (NPAT) was down 22.6% to $27.8 million.

However, the company continues to grow its store numbers and it’s also seeing high levels of growth with its online offering – sales were up 335% during the half-year period.

With the Beeline acquisition, it’s now in a number of new markets in Europe – Germany, Switzerland, Netherlands, Belgium, Austria and Luxembourg. For a cost of just €70, Lovisa bought 114 stores, of which it expects to convert 90 to Lovisas and open for trade.

According to Morgans, the Lovisa share price is valued at 38x FY22’s estimated earnings.

More reading

• 2 of the best ASX growth shares to buy in April
• Where to reinvest your Fortescue (ASX:FMG) dividends
• Why the Xero (ASX:XRO) share price is outperforming today
• How to counter the ASX 200’s Achilles heel
• The Lovisa (ASX:LOV) share price is trading near record highs

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. 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 Australian share market hosts a large number of quality growth shares. In fact, there are so many to choose from, it can be difficult to know which ones to buy.

To narrow things down, I have picked out two ASX growth shares that are highly rated. Here’s why they could be top options in April:

Afterpay Ltd (ASX: APT)

One ASX growth share to consider buying is this buy now pay later (BNPL) giant. Especially given the recent pullback in the Afterpay share price which has been driven by weakness in the tech sector in response to rising bond yields.

One broker that remains very positive on the company is Bell Potter. It currently has a buy rating and $168.50 price target on the company’s shares.

Its analysts appear confident that Afterpay will continue to grow at a rapid rate for the foreseeable future thanks to customer and merchant growth, repeat use, its international expansion, and the launch of Afterpay Money.

In respect to the latter, the company intends to begin offering banking products such as transaction accounts via the Afterpay Money app in the coming months. But it is unlikely to stop there and has been tipped by Bell Potter to potentially expand its offering to cover personal loans and even mortgages.

Based on the latest Afterpay share price of $105.89, Bell Potter’s price target implies potential upside of 59%.

Altium Limited (ASX: ALU)

Another ASX growth share to look at is this electronic design software provider.

Altium is best-known for its Altium Designer and Altium 365 platforms but also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.

These platforms are industry-leading and used by many of the biggest companies in the world. This includes BAE Systems, Microsoft, and Tesla.

While the pandemic has impacted demand and stifled its growth, Altium looks well-positioned to accelerate its growth once the pandemic passes. Particularly given the huge tailwinds that it has in its sails from the booming internet of things and artificial intelligence markets. These are underpinning an explosion in electronic devices globally and supporting increased demand for its offering.  

UBS is a fan of the company. Last month the broker upgraded Altium’s shares to a buy rating with a $34.00 price target. Based on the latest Altium share price of $27.13, this implies potential upside of 25% over the next 12 months.

More reading

• How does the Afterpay (ASX:APT) share price size up against US-listed Affirm?
• Afterpay (ASX:APT) share price hits 3-month low: Time to buy?
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• Is the Affirm share price dragging ASX BNPL shares lower?
• Where to reinvest your Fortescue (ASX:FMG) dividends

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 Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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Warren Buffett has a long track record of generating high returns. One of the key tenets of his investment strategy is having a long-term focus when holding stocks in his portfolio.

This allows his holdings to deliver on their growth potential. It also means that he does not become overly excited following periods of impressive capital returns.

This approach may be especially useful in today’s stock market environment. The recent rally makes it easier to become overly confident in the prospects for equity markets, which may lead to poor decision-making.

Warren Buffett’s long-term focus

Many of Warren Buffett’s major portfolio holdings have been present for decades, rather than years.

In that time, they have often delivered strategy changes and capitalised on growth opportunities that are simply not possible to achieve in a matter of months. By allowing them the time they need to produce improving returns and higher profitability, Buffett has been able to enjoy higher returns than may have been possible if he had adopted a short time horizon.

This point is especially relevant right now. Many investors may have enjoyed strong returns from their portfolio holdings in recent months.

The stock market has experienced a rally that has pushed it to a new record high on a global basis. While it may now be tempting to sell stocks that have produced strong returns, and to buy others in their place, providing them with the time they need to deliver on their strategies could be a more logical approach.

Buffett’s investment fundamentals

Of course, Warren Buffett’s value investing approach means that he is likely to sell a stock if it becomes overpriced. Similarly, if there are other more attractive opportunities available then it can be worth offloading a stock to generate sufficient capital to take advantage of it. Therefore, a long-term approach may not always be the right move.

However, selling stocks because they have risen quickly in price over a short time period may not be a prudent move. It can lead to an investor missing out on future gains – especially since global economic forecasts are generally positive at the present time.

And, since the world economy has always recovered from its declines to post impressive turnarounds, there may be further opportunities for capital gains in the coming years.

A simple strategy

Clearly, Warren Buffett’s long-term approach may not prove to be the right one for every investor. As 2020 showed, a stock market crash can take place at any time and can wipe large profits from existing holdings.

However, through having a long-term viewpoint, it may be easier to spot potential mispricings among high-quality stocks. It may also provide greater scope to benefit from the impact of compounding in a likely period of long-term economic growth over the coming years.

As such, sticking with high-quality companies even after potential recent gains could be a shrewd move.

More reading

• 2 of the best ASX growth shares to buy in April
• Got money to invest? Here are 2 ASX shares to buy
• 5 steps to start building your portfolio now
• These were the best performers on the ASX 200 last week
• 2 compelling ASX payment 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 always different opportunities being presented with ASX shares, there are two in this article that could be worth thinking about.

Share prices are changing all the time, so sometimes good opportunities are fleeting if there’s a short-term dip in the price.

Businesses that are showing good scalability could be worth paying attention if profit grows faster than revenue:

Kogan.com Ltd (ASX: KGN)

Kogan.com is an e-commerce business that is growing particularly quickly. Its retail offering is resonating with shoppers as the business rapidly takes market share in the retail and services world.

The Kogan.com share price has fallen by 37% over the last two months. During that time period, the company actually reported a high level of growth in its half-year result.

Kogan.com’s active customer numbers rose by 76.8% to just over 3 million as people turned to online shopping to get the device, furniture or other items they were looking for. That’s why gross sales went up 97.4% to $638.2 million and revenue grew by 88.6% to $414 million.

The ASX share saw a record breaking Black Friday trading period with seven of the biggest ten trading days occurring within the days surrounding Black Friday.

Exclusive brands achieved revenue growth of 114.9%, with gross profit increasing 174.9%. This contributed 55% of the overall profit. Third party brands achieved growth of revenue and gross profit of 50.5% and 77% respectively. Kogan Marketplace saw gross sales increase by 194.3%.

Overall, Kogan.com achieved gross profit growth of 126.2% and net profit after tax (NPAT) grew 164.2% to $23.6 million.

The company’s margins continue to climb despite record amounts of investments in advertising and its operations. It has also made an acquisition called Mighty Ape in New Zealand which could grow profit significantly.

The decline of the Kogan.com share price has meant it’s now valued at under 20x FY23’s estimated earnings according to Commsec.

City Chic Collective Ltd (ASX: CCX)

Plus-size clothing retailer City Chic is a business that’s aiming to be a global leader in its category.

A few different brokers like City Chic right now and rate it as a buy, including Morgan Stanley which has a price target of $4.75.

It has strong platforms for growth with City Chic in Australia and New Zealand, Avenue in the US and Evans in the UK. Those northern hemisphere acquisitions have increased the total addressable market for City Chic quite considerably.

City Chic is generating high levels of online sales growth and could take more market share through this channel.

The ASX share is still on the lookout for other potential acquisitions that it can turn into more profitable online-only operators.

City City had a strong first half of FY21, with sales rising 13.5% to $119 million and net profit after tax growing 24.8% to $13.1 million.

According to Commsec, the City Chic share price is trading at 23x FY23’s estimated earnings.

More reading

• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?
• ASX retail shares beware: Aldi e-commerce is coming
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• 2 ASX retail shares delivering strong growth
• 2 ASX growth shares that could be strong buys

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 Kogan.com ltd. The Motley Fool Australia has recommended 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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