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It’s been a pretty ordinary 2020. But Australian investors have every reason to be optimistic, according to multiple experts.

Notwithstanding the current COVID-19 resurgence in NSW, Commonwealth Bank of Australia (ASX: CBA) chief economist Stephen Halmarick said the country had dealt with it well.

“Australia has done a better job than just about any other nation in controlling the spread of the virus,” he said.

“The human toll of the sharp rise in the unemployment rate has been very real. But the outlook for Australia is improving.”

The coronavirus undoubtedly impacted financial markets and consumer confidence — but the effect ended up being less than originally feared.

2020 will still end up being the weakest year for the global economy since World War II. But according to Halmarick, good times will arrive next year.

“We do expect a solid recovery in 2021, with global growth forecasts at 5.2 per cent – led by the US and China.”

BetaShares chief economist David Bassanese is also bullish for the coming year.

“We saw a collapse in earnings expectations earlier this year as the pandemic hit. However, earnings expectations have since held up remarkably well in recent months,” he said.

“We are looking at 15 per cent growth in forward earnings by end [of] 2021 if current expectations hold up.”

Australia has managed to avoid some potentially horrific outcomes triggered by the pandemic, reckons Bassanese.

“In terms of all the various scenarios we had prepared for, it’s turning out that we have close to a best case scenario with a lot of positives to consider,” he said.

“It’s an encouraging backdrop as we head into 2021.”

Reserve Bank can’t easily back out now

The pandemic forced the federal and state governments to spend up big to avoid a potential economic calamity. The Reserve Bank of Australia (RBA) then chipped in with a near-zero cash rate and quantitative easing to cheaply finance all this spending.

This all adds up to a bizarre situation that Australia has never experienced before. But the RBA can’t just back out now.

“It is going to be a long time before the RBA can retreat from providing significant support to the economy,” said Halmarick.

“The recession, the rise in the unemployment rate, the global economic environment, and the expectation that inflation will remain below the 2 to 3 per cent target range for years, has seen monetary policy in Australia enter unconventional space for the very first time.”

And this is all excellent news for share markets, said Bassanese.

“Central banks are promising to keep rates low for 1 to 2 years, which is supporting the economy and financial markets and also provides a ramp for equity prices.”

The big risks in 2021

Both Bassanese and Halmarick pointed out the fortunes of and between the world’s biggest economies, US and China, would be critical for 2021.

“In the US, there remains a number of political risks ahead,” said Halmarick.

“But, assuming Joe Biden is sworn in as the 46th President of the United States on 20 January 2021, we expect him to focus on a few key policy priorities that should support the US economy throughout 2021 and beyond.”

Thankfully, the trade embargoes China has placed on Australia so far have had minimal impact to the Australian economy, according to Bassanese.

He said the products most affected — beer, wine, barley and coal — only consist of 12% of exports to China and about 1% of the Australian gross domestic product.

“That said, an escalation of trade tensions is clearly one of the big risks for our economy heading into the new year.”

Which shares will do best in 2021?

Bassanese predicted the recent resurgence of value shares would be short-lived.

“I see this as largely a temporary unwind of extra underperformance of value – and outperformance by technology – caused by the COVID shutdowns,” he said.

“Once the dust settles next year, I suspect growth areas like technology will again reassert themselves.”

On the ASX, Bassanese forecast that the finance sector was due for a comeback.

“We expect that resources and financials will do reasonably well over the coming months,” he said.

“Although in terms of thematics, what we believe will outperform will be infrastructure as we get through the COVID-19 pandemic.”

More reading

• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps
• 2 star stocks for your ASX retirement portfolio
• 8 issues that will impact investors in 2021: experts
• Forget savings accounts and look at these quality ASX dividend shares
• ASX 200 Weekly Wrap: ASX hits new post-March high

Motley Fool contributor Tony Yoo 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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If you’re a growth investor, then you’re in luck. This is because there are a number of companies on the Australian share market that have been growing at a rapid rate in recent years.

Two that have been tipped to continue this positive form over the long term are listed below. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

This machine learning and artificial intelligence data services company has been a strong performer in 2020. During the first half of FY 2020, the company reported a 25% increase in revenue to $306.2 million. This was driven by its key Relevance segment, which provides annotated data to be used in search technology for improving the relevance and accuracy of search engines, social media applications, and e-commerce websites. The Relevance segment delivered a 34% increase in revenue to $273.9 million, which offset weakness in its Speech & Image segment. The latter reported a 20% decline in revenue to $31.9 million.

While the pandemic has impacted demand for its services this year, management remains confident that new projects will commence once the crisis passes.

Macquarie appears to agree and remains positive on the company’s prospects. It has an outperform rating and $43.00 price target on its shares.

Kogan.com Ltd (ASX: KGN)

This ecommerce company has been a very strong performer in 2020 thanks to the accelerating shift to online shopping.  The COVID-19 pandemic has sent millions of consumers online for their shopping, many for the first time, much to the delight of online retailers like Kogan.

While FY 2020 was strong, Kogan’s growth has gone up a level early in FY 2021. For example, during the month of August, the company reported gross sales growth of more than 117% and adjusted EBITDA growth of more than 466%. This was driven by the addition of 152,000 new customers to its platform during the month, bringing its total to 2,461,000.

No further updates have been provided since then, but based on many of its online peers, the market appears confident this exceptional form has continued through to today. In addition to this, the company has acquired online retailer Mighty Ape for NZ$120 million and furniture retailer Matt Blatt for $4.4 million. These additions should give its second half performance a boost.

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps
• Why these ASX shares have smashed the market in 2020
• 3 ASX growth shares to buy this week
• 3 ASX shares to buy for 2021 and beyond

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 Appen Ltd and 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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The old way of buying software has changed forever. If you wanted to purchase a piece of software 10 years ago, you had to spend hundreds of dollars in one go for something that could be out of date in just a few years.

Today, software companies have, by and large, shifted to a software-as-a-service (SaaS) business model. Instead of a one-and-done transaction, customers now subscribe to a software product that’s continually updated. This also serves to provide the software company with a reliable stream of recurring revenues.

The coronavirus pandemic has made SaaS shares popular among investors, as many businesses move their operations online – perhaps permanently for some.

On that note, let’s take a look at the five best performing ASX SaaS shares in 2020, and what their prospects might be in 2021.

More reading

• The Xero (ASX:XRO) share price is up 82% in 2020
• 2 ASX tech shares to buy and hold until 2030
• 3 unstoppable ASX shares to buy
• 2 rapidly growing ASX tech shares to buy
• 3 reliable ASX 200 shares that keep growing

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Eddy Sunarto 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 Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Objective Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended FINEOS Holdings 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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Are you fed up with the low interest rates on savings accounts? You’re not alone, if you are.

The good news is that the ASX is home to a large number of shares with generous dividend yields.

For example, two dividend shares that currently provide investors with yields that are vastly superior to savings accounts are listed below:

National Storage REIT (ASX: NSR)

National Storage is one of the region’s largest self-storage operators. From over 190 locations across Australia and New Zealand, the company tailors self-storage solutions to residential and commercial customers.

Pleasingly, as large as it network might appear, management isn’t finished with its growth through acquisition strategy. In fact, since the end of FY 2020, the company has completed eight acquisitions totalling $139 million. In addition to this, management advised that its acquisition pipeline is strong and it is working to complete a number of development projects.

Management recently reiterated that it expects to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. It also plans to pay 90% to 100% of its earnings out to shareholders as distributions. Based on the middle of both guidance ranges (8 cents and a 95% payout ratio), this equates to a 7.6 cents per share distribution. With the National Storage share price currently trading at $1.96, this represents a 3.9% yield.

Rural Funds Group (ASX: RFF)

Another dividend share to look at is Rural Funds. This real estate investment trust (REIT) owns a diversified portfolio of high quality Australian agricultural assets.

The majority of these assets are leased to experienced agricultural operators. This includes almond producer Select Harvests Limited (ASX: SHV) and wine giant Treasury Wine Estates Ltd (ASX: TWE). The company also enjoys a lengthy weighted average lease expiry of 10.9 years.

In FY 2021 management intends to grow its distribution by its 4% per annum target growth rate. This will mean a distribution of 11.28 cents per share. Which, based on the current Rural Funds share price, works out to be a 4.15% yield.

More reading

• Top brokers name 3 ASX shares to sell next week
• 2 ASX dividend shares to solve your income needs
• 2 ASX dividend shares with big yields
• These 4 ASX REITS are about to go ex-dividend
• Why a2 Milk and these ASX shares have been smashed in 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) followed the lead of global markets and stormed higher. The benchmark index rose 0.5% to 6,700.3 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to drop lower.

It looks set to be a much tougher day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.45% lower this morning. This follows a subdued night of trade on Wall Street which late on sees the Dow Jones down 0.35%, the S&P 500 down 0.2%, and the Nasdaq 0.4% lower.

Oil prices recover.

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices recovered overnight. According to Bloomberg, the WTI crude oil price is up 0.45% to US$47.83 a barrel and the Brent crude oil price has risen 0.3% to US$51.00 a barrel. Oil prices rose on hopes that US COVID stimulus will fuel increased demand.

Tech shares on watch.

Australian tech shares including Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) were on form on Tuesday and charged higher. This helped drive the S&P ASX All Technology Index (ASX: XTX) a sizeable 1.9% higher yesterday. However, a weak night of trade on the technology-focused Nasdaq index could see these shares reverse some of their gains on Wednesday.

Gold price edges higher.

Gold miners such as Evolution Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price has risen 0.1% to US$1,881.70 an ounce. A softer US dollar boosted the price of the precious metal.

Iron ore price softens.

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares could come under a spot of pressure today after the iron ore price softened. According to Metal Bulletin, the spot iron ore price has fallen 0.5% to US$163.02 a tonne overnight.

More reading

• ASX 200 rises 0.5%
• Key risks and rewards for ASX share investors heading into 2021
• 2020 was good for investors, will 2021 be even better?
• Why Beach (ASX:BPT) and Cue Energy (ASX:CUE) shares are sinking lower
• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps

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 Appen Ltd. 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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The S&P/ASX 200 Index (ASX: XJO) went up 0.5% today in a pretty quiet day for the ASX.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

Afterpay, one of the leading buy now, pay later businesses in the world, has seen its share price reach a new high today.

The Afterpay share price rose another 5.3% today to finish to just over $122. It was among the best performers in the ASX 200. It has risen a long way from the $8.90 on 23 March 2020.

Dusk Group Ltd (ASX: DSK)

The fragrance business gave an update today. The Dusk share price went up 12.8% in reaction to this update.

Management said that strong sales and earnings growth has continued across the months of November and December. Dusk said it also finished the half with a well-balanced inventory position, no drawn bank debt and significant surplus cash. It had $33.5 million of net cash at the end of the first half of FY21.

Dusk said its FY21 half-year guidance for sales is a range of $90 million to $90.5 million, up from $58.7 million in the FY20 first half.

Its earnings before interest and tax (EBIT) guidance for the FY21 first half is between $26 million to $27 million, up from $9.7 million in the prior corresponding period.

Peter King, the CEO of Dusk, said: “The results delivered across the first half of FY21 are well ahead of the results delivered in the prior corresponding period despite a significant period of disrupted trade in Melbourne. They build on the strong results delivered across the past three years and further demonstrate the success of our focused strategy and the ability of our team to execute, including in a volatile environment where agility has been key.”

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price was the worst performer in the ASX 200 today after providing an update.

The oil business gave an update about its Ironbark 1 exploration well in offshore Western Australia.

The well was drilled to a total depth of 5,618 metres measured depth, intersecting the primary target of the Mungaroo Formation at 5,275 metres. No significant hydrocarbon shows were encountered in the target sandstone.

The exploration well will be plugged and abandoned, in-line with the pre-drill planning.

Pacific Current Group Ltd (ASX: PAC)

Asset management outfit Pacific, which invests in asset managers, announced it has entered into an agreement to buy a minority stake in Astarte Capital Partners.

Astarte was founded in 2015, it’s a London-based investment manager focused on private market real asset strategies.

Pacific said that Astarte’s model is distinctive in that it provides anchor or seed capital, working capital and fundraising support to operating experts and emerging investment managers to support their growth.

Pacific is going to invest £4.4 million to provide both operating capital and buy out passive shareholders. Approximately 35% of the consideration may be deferred until July 2021. Astarte’s management ownership will increase significantly as a result of this transaction.

In exchange for the investment, Pacific will receive approximately 40% of Astarte’s net income.

Pacific CEO and chief investment officer said: “PAC is pleased to partner with Astarte given its exceptional team and differentiated investment strategy. Stavros and Teresa are true innovators in the private markets space, and we are excited to help them build on what they have already created. We believe Astarte’s business is at an inflection point and we expect 2021 to be a breakout year for the firm.”

The Pacific share price was flat today.

More reading

• Key risks and rewards for ASX share investors heading into 2021
• 2020 was good for investors, will 2021 be even better?
• Why Beach (ASX:BPT) and Cue Energy (ASX:CUE) shares are sinking lower
• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps
• Why a2 Milk, Adacel, Dusk, & Nuheara shares are charging higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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Looking back on the year that was 2020 – who would have thought in January that we would experience a global pandemic; working from home would become the norm; people would fight over toilet paper rolls; balcony raves would replace music festivals, and we’d be elbow bumping our way into 2021.

But nevertheless, the pandemic created unique circumstances that led to some unlikely big ASX winners for the year.

A sea of sanitisers

Everyone is now much more familiar with the humble hand sanitiser. As a simple and effective method of killing pathogens, demand for the product skyrocketed as a frontline defence against COVID-19.

The Zoono Group Ltd (ASX: ZNO) share price has benefitted from being a significant supplier of sanitiser and disinfectant products globally. Zoono has delivered an 83% return, compared to the S&P/ASX 200 Index (ASX: XJO) which has fallen 1.59%.

Logically, the share price rise is reflected in the revenue growth of the company. Zoono experienced enormous revenue growth, from NZ$1.8 million in FY19 to NZ$38.3 million in FY20.

Zoono is still eyeing off growth into 2021, with the company’s latest update outlining the signing of 2 new distribution agreements, regulatory approval for Russia, and the launch of a new ‘Zoono treated’ face mask.

Cooking up a storm

Closures and restrictions meant that it was a whole lot harder to go out and enjoy a good meal. This meant people had to turn to self-made options, but who wants to think about what to cook during a pandemic? Enter the subscription-based meal-kit provider Marley Spoon AG (ASX: MMM).

As notified in March, the company witnessed an unprecedented surge in demand for their home delivered meal kits in all its markets. This trend continued throughout the year and powered the company to deliver 21 million meals in the first half of 2020.

In Q3, Marley Spoon’s revenue had grown by 163% in the US compared to the prior corresponding period. The share price has certainly been no laggard either, with the 1-year return being 956%.

Marley Spoon is hungry for more. The company announced on 11 December that it believes the change in consumer behaviour is still in its early phase. Hence, the company plans to increase capacity through a number of manufacturing centre expansions.

Did someone say “DIY patio”?

“Bored in a house, and I’m in a house bored” – not just a Tik Tok song in 2020 – we lived it. At a point, restrictions limited leaving the house to ‘essential’ trips only, and then we were confined to a set distance. This gave very little freedom to do anything interesting or productive. Soon people realised that it was a great time to fix that fence they had been putting off; or build that patio they had been meaning to get around to.

The Wesfarmers Ltd (ASX: WES) share price has benefited from this, growing a very respectable 22% in the last year. A substantial contributor is the Bunnings business, which has been the go-to store during the pandemic for all DIY supplies. In Wesfarmers’ trading update Bunnings sales had increased by 25.2% year to date, compared to the prior corresponding period.  

But it doesn’t stop there. Wesfarmers also benefitted from the working from home shift – which meant more people buying desks, chairs, stationery etc. from Officeworks. This lifted Officeworks year to date sales by 23.4%.

Lastly, Wesfarmers’ acquisition of the online retailer, Catch Group, put them in prime position for the online shopping bonanza – sales up 114.4%.

Foolish takeaway

No one would have guessed that these 3 ASX shares would have performed as well as they did, and less likely would be to have predicted the reasons why. 2021 will certainly hold its own set of challenges and opportunities – which shares will be beneficiaries of that, at the moment that’s anyone’s guess.

More reading

• 2 quality ASX dividend shares to buy
• Leading fund manager names the ASX dividend shares to buy in 2021
• Forget savings accounts and look at these quality ASX dividend shares
• 3 top ASX retail shares for your 2021 portfolio
• Forecast double-digit surge in Aussie dollar could put brakes on ASX rally in 2021

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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The Peninsula Energy Ltd (ASX: PEN) share price is advancing today following the overnight United States Omnibus budget approval. During late morning trade, the Peninsula share price rose as high as 11.5 cents. However, the uranium mining company’s shares have since partially retreated to 11 cents, up 10% for the day.

Let’s take a look at what is moving the Peninsula share price today.

What’s driving the Peninsula share price?

The Peninsula share price is on the rise today after the company advised the United States President Donald Trump signed off on the Omnibus budget bill. The approved spending package will see the US Department of Energy allocate US$75 million towards the establishment of a national strategic uranium reserve.

Under the American Nuclear Infrastructure Act (ANIA), the US Department of Energy will be restricted to only buy uranium recovered from facilities licenced by the Nuclear Regulatory Commission. This, in turn, not only strengthens the domestic uranium market, but also preserves the US’ nuclear fuel supply chain.

Nuclear fuel can be harnessed in power stations to produce electricity without emitting carbon dioxide, a greenhouse gas that causes climate change. While the main ingredient for nuclear fuel is uranium, most utility companies are sourcing the product from other countries. The reason for this is that overseas uranium companies often deflate prices, making it difficult for US companies to compete.

According to the US Energy Information Administration, 90% of uranium purchased by US nuclear power reactors comes from outside the country. This affects demand with US nuclear power producers having suffered over the past decade, lagging behind overseas competitors.

The new act gives the Nuclear Regulatory Commission the ability to block imports of uranium from Russia and China. This is seen as a way to not only protect national security interests, but also the domestic uranium mining sector.

How does this affect Peninsula Energy?

While only a handful of companies will be able to supply material into the uranium reserve, Peninsula’s wholly owned US subsidiary, Strata Energy, is one of them.

With uranium operations in Wyoming, the company believes the recent bill approval will provide significant opportunities for it moving forward. According to Peninsula, its Lance projects have the production facilities to accommodate the US Department of Energy’s needs.

This would supplement the company’s existing portfolio of uranium sale contracts, which total up to 5.5 million pounds of uranium to be delivered until 2030. It is estimated that the weighted average future sales price of uranium is US$51 to US$53 per pound.

What did management say?

Peninsula managing director and CEO Mr Wayne Heli commented:

Creation of a uranium reserve is truly a ground- breaking initiative for our industry and our nation. The reserve program will go a long way toward supporting and expanding the domestic production of nuclear fuel in 2021 and beyond.

We look forward to working with the U.S. DOE to ensure this funding strategically supports established production companies with permitted facilities and infrastructure. The budget approval, and other recent bipartisan legislative actions recognize the importance of nuclear energy in the generation of baseload, carbon-free electricity.

Peninsula share price snapshot

The Peninsula share price is down over 25% since this time last year. Having reached a 52-week high of 19 cents in April, its shares have failed to reach anywhere near that mark over the period since then.

Based on the current Peninsula share price, the company commands a market capitalisation of around $94 million.

More reading

• Why the Oz Minerals (ASX:OZL) share price is up 78% in 2020
• 2 growing mid cap ASX shares to buy
• Can these ASX IT shares carry their momentum into 2021?
• Key risks and rewards for ASX share investors heading into 2021
• What are the best shares to buy now for 2021?

Motley Fool contributor Aaron Teboneras 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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South Australia’s Oz Minerals Limited (ASX: OZL) is rounding off an exceptional year. With the Oz Minerals share price up 78%, it’s the ninth best performer on the S&P/ASX 200 Index (ASX: XJO) in 2020.

The broader ASX 200 is flat over that same period.

How has the Oz Minerals share price outperformed?

The remarkable 78% year-to-date gains for the Oz Minerals share price come despite the company’s shares having plunged 41% earlier this year during the pandemic-fuelled market panic.

Oz Minerals shares bottomed at $5.99 on 23 March before staging a mighty rebound, gaining 213% since that low to today’s $18.72 per share (at the time of writing).

Shareholders have much to thank for Oz Minerals’ success this year, including strong management and high-quality mining assets. But one of the big factors driving the 2020 share price gains is the soaring price of the company’s primary mineral target, copper.

Like Oz Minerals’ shares, copper also hit its low on 23 March, trading for US$4,630 (AU$6,092) per tonne. It’s currently trading for US$7,788 per tonne, or more than 68% higher.

Copper prices have been rising as surging demand for the metal has far outpaced new supply this year. Copper is used in a range of infrastructure projects due to its non-corrosive nature. And its high conductivity has seen demand grow for use in wiring, and in batteries for home storage and electric vehicles.

As with iron ore, China’s appetite for copper to fuel its infrastructure and manufacturing projects is a prime factor driving prices higher. And, as Forbes reports, explosive growth in freezer production in the Middle Kingdom is further tightening limited supplies:

Citi, an investment bank, identified the freezer factor in its latest metals sector research which noted how strong copper demand in China had “singlehandedly propelled” the bank’s copper consumption tracking tool to levels normally associated with synchronized global growth.

“We have seen an 80% year-on-year increase in freezer output in China, potentially reflecting Covid-19 related fears over security of food supplies,” Citi said.

And there could be more good fortunes for ASX copper shares ahead in 2021. As Jeff Currie, head of commodities research at Goldman Sachs told Bloomberg, “We have all the tell-tale signs of a super-cycle.”

Oz Minerals company snapshot

Headquartered in South Australia, Oz Minerals is a mining company primarily focused on copper. It owns and operates the Prominent Hill copper-gold mine and the Carrapateena advanced exploration copper-gold project. Both sites are located in South Australia. The company also has extensive operations in Brazil and an exploration project in Sweden.

Based on the current Oz Minerals share price, the company pays a dividend yield of 1.23%, fully franked.

More reading

• With the ASX tipped to outperform in 2021, shares in this sector could rocket
• Leading brokers name 3 ASX shares to sell today
• UBS just downgraded these outperforming ASX mining stocks
• These were the best performing ASX 200 shares last week
• What do big brokers think about soaring commodity prices and ASX mining shares?

Motley Fool contributor Bernd Struben 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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A new month is upon us, so what better time to look to see if there are any additions you could make to your portfolio to take it to the next level.

If you’re interested in growth shares, then you might want to take a look at the mid cap shares listed below.

Here’s why they have been rated as buys:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a recently listed online retailer which sells third-party beauty and personal care products. It currently boasts over 590,000 Active Customers across the ANZ region on its platform and is expecting to generate revenue of $158.2 million in 2020. This will be a sizeable 76% increase on the prior corresponding period.

Pleasingly, its revenue of $158.2 million is still only a very small slice of the overall market. The company estimates that the ANZ beauty and personal care products market was worth $10.9 billion in 2019. And thanks to the proceeds from its IPO, management is aiming to grow its market share in the coming years.

Morgan Stanley is positive on its future. The broker recently put an overweight rating and $8.35 price target on the company’s shares. This compares to the current Adore Beauty share price of $6.50. It believes the company will benefit from the shift to online shopping, which is accelerating because of COVID-19.

Bigtincan Holdings Ltd (ASX: BTH)

Another mid cap to look at is Bigtincan. It is a provider of sales enablement software which provides businesses with the information, content, and tools to sell more effectively. Demand for its platform has been growing strongly in recent years and even during the pandemic. This led to it recording strong recurring revenue growth in FY 2020 and guiding to more of the same in FY 2021.

FY 2021 has started strongly and led to management providing annualised recurring revenue (ARR) guidance in the range of $49 million to $53 million in FY 2021. This represents a 37% to 48% increase year on year.

One broker that has been pleased with its performance this year is Canaccord Genuity. It has put a buy rating and $1.40 price target on its shares.

More reading

• Leading brokers name 3 ASX shares to buy today
• 5 exciting small cap ASX shares to watch in 2021
• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Here’s why the Bigtincan (ASX:BTH) share price is dropping lower
• 2 top ASX shares to buy according to WAM

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 has recommended BIGTINCAN 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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