Do you have some money to invest? Then the 3 ASX shares in this article could be worth considering, including Pushpay Holdings Ltd (ASX:PPH).
The post Got money to invest? Here are 3 ASX shares to buy appeared first on The Motley Fool Australia. –
There are always some ASX shares worth considering for a place in an investment portfolio.
The ones below could be worth thinking about:
Pushpay Holdings Ltd (ASX: PPH)
This ASX share is a business that provides electronic donation services for the large and medium US church sector.
Fund manager Ben Griffiths from Eley Griffiths said not too long ago: “Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE)). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”
The company continues to demonstrate its increasing demand and growing operating leverage. In a recent profit guidance update, it said that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) for FY21 is now expected to be in a range of US$56 million to US$60 million, up from previous expectations of US$54 million to US$58 million. This came about from continually growing profit margins and better than expected donation volume during the key month of December 2020.
At the time of that update, the ASX share also revealed that it has allocated an initial investment of resource into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. Focused investment into the Catholic segment represents a significant milestone, according to the management, as Pushpay continues to execute on its strategy to become the preferred provider of mission critical software to the US faith sector.
Redbubble Ltd (ASX: RBL)
Redbubble is one of the ASX shares that are seeing elevated levels of demand during this difficult COVID-19 period for the world.
Joseph Kim from Montgomery Investment Management said: “While Redbubble has clearly been a “stay-at-home” trade, we believe the business has the opportunity to emerge a longer-term structural winner from COVID-19 should it capitalise in the recent spike in user and customer interest as a result of recent lockdown measures.”
It’s a global art product business, with little of the sales being made to Aussies. It owns two websites – Redbubble.com and TeePublic.com where products are sold that have been designed by artists, including wall art, masks, clothing and phone cases.
At the time of the FY21 first quarter update, Redbubble CEO Martin Hosking said: “The strategic priority for the group now is to ensure we extend the market leadership we have established. We intend to invest in the customer experience to improve loyalty and retention and ensure long-term higher levels of growth. The company has the resources to undertake the anticipated investments and margin structure to ensure it can do so while remaining profitable.”
That FY21 first quarter update showed a 98% increase in normalised marketplace revenue to $139.3 million and a 118% increase to normalised gross profit of $59.6 million. The company made $17.2 million of earnings before interest and tax (EBIT).
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This is an exchange-traded fund (ETF) that is based on owning businesses which are believed to have sustainable competitive advantages and are priced attractively, according to research done by analysts at Morningstar.
The ASX share is entirely invested in US shares that have ‘wide economic moats’. To make it into the portfolio, those target companies must be trading at an attractive valuation compared to Morningstar’s estimate of fair value.
VanEck Vectors Morningstar Wide Moat ETF has a track record of outperforming the S&P 500. Over the last five years it has returned an average of 17.1% per annum, compared to the S&P 500’s average return of 14.4% per annum.
Out of the almost 50 holdings right now, these were the biggest 10 positions at 31 January 2021: John Wiley & Sons, Charles Schwab, Corteva, Cheniere Energy, Wells Fargo, Blackbaud, Intel, Bank of America, Biogen and Constellation brands.
In terms of the cost, the ETF has an annual management fee of 0.49%.
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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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.