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2 fantastic ASX shares with long runways for growth

PointsBet Holdings Ltd (ASX:PBH) and this fantastic ASX growth share have been named as buys by leading brokers…
The post 2 fantastic ASX shares with long runways for growth appeared first on The Motley Fool Australia. –

Looking for growth shares to buy? Then you might want to consider adding the two listed below to your portfolio.

Here’s why they have been tipped as growth shares to buy:

NEXTDC Ltd (ASX: NXT)

The first ASX share to look at is NEXTDC. It is a leading data centre-as-a-service provider with a growing network of data centres in key locations across Australia.

NEXTDC has been a very strong performer over the last 12 months. This has been driven by the pandemic accelerating the shift to the cloud, which has led to a significant increase in demand for capacity in its data centres and underpinned strong sales and operating profit growth.

In fact, demand has been so strong that management has had to bring forward its capacity expansion plans in order to cope.

The good news is that the structural shift to the cloud isn’t anywhere near complete, with more and more businesses and organisations poised to move their in-house operations to data centres in the future. As a result, NEXTDC still has a long runway for growth in the Australian market.

But management isn’t settling for that. The company has recently opened up offices in Tokyo and Singapore with a view of expanding into these markets in the near future. Given the size of these markets, they could be a real boost to its earnings growth in the 2020s.

Analysts at Citi are very positive on its prospects. They currently have a buy rating and $14.45 price target on its shares.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX share to look at is PointsBet. It is one of the world’s leading sports betting companies with operations in the ANZ and US markets.

PointsBet may be a relatively new company but you wouldn’t think that looking at its financials. For example, during the third quarter, the company reported a 236% increase in turnover to $905.2 million. This comprises Australian turnover of $423.2 million (up 137%) and US turnover to $482 million (up 431%). 

Another positive was that its net win metric is growing at an even quicker rate. During the quarter, PointsBet’s net win lifted 246% to $64.9 million. This was driven by a 147% increase in Australian net win to $38.2 million and a 716% jump in US net win to $26.7 million.

Pleasingly, the company is still only scratching at the surface of its massive US market opportunity. And given recent partnerships with sports teams and broadcasters, it looks well-placed to win market share over the coming years.

Goldman Sachs is very positive on the company. It currently has a buy rating and $17.20 price target on its shares.

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.

*Returns as of February 15th 2021

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The post 2 fantastic ASX shares with long runways for growth appeared first on The Motley Fool Australia.

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