These small caps could be worth watching closely…
The post 3 small cap ASX shares to put on your watchlist this week appeared first on The Motley Fool Australia. –
If you’re interested in gaining exposure to the small side of the market, then you might want to look at the ASX shares listed below.
Here’s why these small cap ASX shares could be ones to watch:
Adore Beauty Group Limited (ASX: ABY)
The first small cap to watch is Adore Beauty. Australia’s leading online beauty retailer has been growing strongly in recent years and particularly during FY 2021. For example, it expects to report full year revenue growth of between 43% and 47% this year. And while FY 2022’s growth will inevitably moderate as it cycles strong sales periods during the pandemic, its longer term outlook remains very positive. This is due to its leadership position online, growing customer base, and the structural shift online for beauty sales.
Bigtincan Holdings Ltd (ASX: BTH)
Another small cap to watch is Bigtincan. It is a provider of enterprise mobility software that allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity. A testament to the quality of its platform is that it has a large number of blue chips as customers. This includes Australia and New Zealand Banking GrpLtd (ASX: ANZ), Cardinal Health, Nike, and Red Bull. Increasing demand has been underpinning strong recurring revenue growth in FY 2021.
Volpara Health Technologies Ltd (ASX: VHT)
A final small cap to watch is Volpara. This healthcare technology company uses artificial intelligence to assist with the early detection of breast cancer. Volpara achieves this by allowing users to analyse mammograms and associated patient data. Volpara is currently generating approximately NZ$27.8 million in annual recurring revenues (ARR). However, this is well short of its addressable market, which management estimates is US$750 million in breast cancer screening alone. This gives the company a significant runway for growth over the next decade.
The post 3 small cap ASX shares to put on your watchlist this week appeared first on The Motley Fool Australia.
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Motley Fool contributor 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 has recommended BIGTINCAN FPO and VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.