Domino’s Pizza Enterprises Ltd (ASX:DMP) and this ASX share could be quality options for buy and hold investors…
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One investment strategy that is very popular with investors is buy and hold investing.
And given the success that Warren Buffett has had with this strategy over several decades, it isn’t hard to see why it is so popular.
With that in mind, listed below are two shares which could be top buy and hold options:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Due to its bold expansion plans, this pizza chain operator is being seen as a top option for buy and hold investors. At the end of FY 2020, the pizza chain operator had a network of 2,668 stores across Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark.
While this is might sound like a very large number, management still sees a lot of room for store growth in the future. It is aiming to more than double its network to 5,500 stores by 2033. In addition to this, it has a medium term target of growing its same store sales by 3% to 6% per annum.
One broker that appears confident this will underpin strong growth in the future is Goldman Sachs. At the start of the month its analysts put a conviction buy rating and $88.00 price target on its shares. It believes Domino’s has the potential to maintain a double digit operating earnings CAGR over the medium term.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a donor management and community engagement provider to the church market. Thanks to the quality of its platform, its leadership position, and the shift to a cashless society, it has been growing at a very strong rate.
For example, last month the company released its half year results and revealed a 53% increase in operating revenue to US$85.6 million and an even more impressive 177% jump in EBITDAF to US$26.7 million. The good news is that management appears confident this growth can continue and has set itself bold long term targets. This includes winning a 50% share of the U.S. medium to large church market, which is estimated to be worth US$1 billion a year.
Helping it achieve this will be its recent launch of ChurchStaq. It is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and ChMS to deliver a fully integrated engagement platform.
Goldman Sachs is also a fan of Pushpay. The broker has a conviction buy rating and $10.35 price target (now $2.59 after its 4-1 share split).
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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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.