2 ASX shares delivering irresistible growth

The 2 ASX shares revealed in this article are delivering very strong business growth right now and could keep growing.
The post 2 ASX shares delivering irresistible growth appeared first on The Motley Fool Australia. –

fund manager standing on increasing tiles of bricks reaching for the stars

The two ASX shares mentioned below are delivering very useful growth right now.

The share prices of both of these businesses have gone up significantly over the last year as they recover from the effects from the COVID-19 crash.

Pro Medicus Ltd (ASX: PME)

This ASX share describes itself as a leading medical imaging IT provider that provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups worldwide.

Pro Medicus might be one of the most profitable businesses on the ASX with an earnings before interest and tax (EBIT) margin of 59%, though the company doesn’t expect this to be maintained due to one-off COVID-19 impacts that lowered expenses. 

Despite a large impact of the strengthening of the Australian dollar on its predominately US-based earnings, Pro Medicus recently reported a 7.8% increase in half-year revenue, a 12.4% rise of net profit and a 25.9% increase of underlying profit before tax.

The company is expecting a stronger second half and FY22. Not only are examination levels getting back to pre-COVID levels but the ASX share has won several new large contracts such as Northwestern, NYU Langone and Medstar which will unlock more revenue at a high profit margin. The Intermountain and Californian Hospital contracts will also come online in FY22.

Each new win has the potential to unlock more deals for the company, which means Pro Medicus is more likely to benefit further from expanding data sets, the need for remote reporting and strong network effects.

However, the Pro Medicus share price has risen strongly – it has gone up 150% over the last year. UBS has a neutral rating for Pro Medicus, with a price target of $46.  

EML Payments Ltd (ASX: EML)

EML is an ASX share that has a variety of payment services. It says that it develops tailored payment solutions for businesses with options for disbursing payouts, gifts, incentives and rewards. The payments business says that it powers many of the world’s top brands and expects to process over $18 billion in GDV in FY21 across 28 countries in Australia, Europe and North America.

Some of its clients include companies like Coca Cola, Intel, Isuzu, NSW Transport, Paddy Power, Laybuy Holdings Ltd (ASX: LBY) and the UK Home Office.

The FY21 half-year result was a period of strong growth for EML with gross debit volume (GDV) growth of 54% to $10.2 billion, revenue growth of 61% to $95.3 million, earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 42% to $28.1 million, underlying net profit (NPATA) growth of 30% to $13.2 million and underlying operating cash inflows went up 68% to $35.1 million.

Its general purpose reloadable business is doing well, the existing non-PFS business growing by 25% year on year, with strong organic growth from salary packaging (up 60%) and gaming (up 42%). However, the gift and incentive division is still struggling due to lockdowns impacting physical gift cards and shopping centres.

For the full FY21 result it’s expecting revenue to grow between 48% to 56% and NPATA to increase by 25% to 40% to a range of $30 million to $33.5 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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

The post 2 ASX shares delivering irresistible growth appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!