Do you have some money to invest into ASX shares? There could be some worth considering to buy, such as Betashares Nasdaq 100 ETF (ASX:NDQ).
The post Got money to invest? Here are 3 ASX shares to buy appeared first on The Motley Fool Australia. –
There are some high-quality ASX shares that Aussies have access to. Some businesses could be worth watching for the long-term such as these three:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a business that facilitates electronic donations to large and medium US churches.
One fan of this ASX share is fund manager Ben Griffiths from Eley Griffiths who said: “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.”
Pushpay itself is predicting that FY21 will be a year of large growth. Earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is projected to rise by more than 100% to a range of US$54 million to US$58 million.
The company is expecting its profit margins to keep rising as it gets larger. The EBITDAF margin rose from 17% to 31% in the FY21 interim result. This means that more of the profit falls to the bottom line.
At the current Pushpay share price it’s valued at 26x FY23’x estimated earnings.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) which gives investors exposure to 100 of the largest businesses on the NASDAQ.
The ASX share allows Aussies to get indirect exposure to many of the world’s biggest technology companies.
Which companies? Its biggest holdings are names like: Apple, Microsoft, Amazon, Alphabet, Tesla, Facebook, Nvidia, PayPal and Adobe. A little further down the holdings list are businesses like Netflix, Intel, Broadcom, Qualcomm, Texas Instruments and Intuitive Surgical.
However, it be interesting to note that this isn’t solely a tech ETF, other holdings include names like Costco, PepsiCo, Starbucks, Gilead Sciences, Moderna, Monster Beverage and Lululemon Athletica.
The ETF has an annual management fee of 0.48%, which is higher than some other globally-focused ETFs like iShares S&P 500 (ASX: IVV).
Betashares Nasdaq 100 ETF has been a really strong performer over the years. Its net return over the past year has been 34.4% and over the past five years it has produced average net returns of 21.5% per annum.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is an e-commerce business that sells homewares and furniture online. Products are directly sent to customers by suppliers which assists with fast delivery and reduces inventory requirements.
In FY20 it grew full year revenue by 74% to $176.3 million and EBITDA went up by 483% to $8.5 million, with the adjusted EBITDA margin rising from 2.5% to 5.3%.
In the period between 1 July 2020 to 19 October 2020, the ASX share’s revenue rose by 138%. Temple & Webster generated $8.6 million of EBITDA in the first quarter, more than the entire amount made in FY20.
Temple & Webster’s CEO Mark Coulter has explained the benefits of gaining market share during the most-affected COVID-19 months: “The NAB online sales index suggests our category grew around 57% during the months of April to July, while we grew around 150% for the same period. We believe this is due to the increasing benefits of scale as we get larger. We are forging closer relationships with our suppliers as we become a more significant part of their business which allows us to obtain stock security, better terms and exclusive product ranges. We are also making larger investments in areas such as technology and data, brand awareness and our private label products; and we can produce more content by having more creative resources. In effect, the bigger we get, the better and strong our customer proposition becomes, which is a virtuous cycle.”
At the current Temple & Webster share price it’s valued at 35x FY23’s estimated earnings.
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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 BETANASDAQ ETF UNITS, PUSHPAY FPO NZX, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, PUSHPAY FPO NZX, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.