Altium Limited (ASX:ALU) and this ASX growth share could be two the best options for growth investors right now. Here’s why…
The post 2 of the best ASX growth shares to buy immediately appeared first on The Motley Fool Australia. –
Due to recent pullbacks in the share prices of a number of growth shares, now could be an opportune time to consider making some new additions to your portfolio.
But which ASX growth shares should you buy? Here are two which could be in the buy zone:
Altium Limited (ASX: ALU)
The first ASX growth share to look at is Altium. It is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. It also has the Octopart electronic parts search engine business and the NEXUS design collaboration platform supporting the core business.
These businesses look well-positioned for growth over the long term thanks to the rapidly growing internet of things and artificial intelligence markets. These markets are underpinning an explosion in electronic devices globally, which is leading to increased demand for Altium’s offering.
One broker that is positive on the company’s future is UBS. Last month the broker upgraded Altium’s shares to a buy rating with a $34.00 price target. This compares to the latest Altium share price of $26.72.
Xero Limited (ASX: XRO)
Another ASX growth share to consider is Xero. It is a leading provider of a cloud-based business and accounting solution to small and medium sized businesses globally.
Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. Particularly given recent acquisitions, which are strengthening its offering and positioning it for growth. One of those was the Planday acquisition that was announced earlier this month. Xero will pay up to $284.6 million for the workforce management platform.
In addition to this, the company looks well-placed for long term growth thanks to its international expansion, the shift to the cloud, and the monetisation of its app ecosystem.
The latter is something Goldman Sachs is particularly positive on. It believes that it could provide it with a multi-decade runway for strong growth if management can successfully monetise its app ecosystem.
Goldman has a buy rating and $157.00 price target on its shares. This compares to the current Xero share price of $117.67.
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
- ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
- ASX 200 up 0.8%: Metcash update, tech shares rebound, PointsBet acquisition
- 5 things to watch on the ASX 200 on Tuesday
- ASX 200 down 0.1%: Afterpay sinks, Evolution announces acquisition
- The Altium (ASX:ALU) share price is nearing its 52-week low
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 Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post 2 of the best ASX growth shares to buy immediately appeared first on The Motley Fool Australia.