There are some interesting ASX shares to consider for investors.
The post Have money to invest? Here are 2 ASX shares that could be potential buys appeared first on The Motley Fool Australia. –
If investors have got money to invest, then there could be some compelling ASX share ideas to consider for the long-term.
Businesses that are displaying growth, or have plans for growth, could be worth considering.
Here are two ASX shares to think about:
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This is a leading exchange-traded fund (ETF) that is offered by VanEck.
It has an annual management cost of 0.49%, which is more expensive than some of the biggest ETFs out there, but cheaper than plenty of fund managers.
VanEck Morningstar Wide Moat ETF represents a portfolio of shares that are judged to be quality US companies that Morningstar analysts believe possess sustainable competitive advantages. This is also called a ‘wide economic moat’.
The durability of economic profits is far more important to Morningstar than the size. There must also be “clear evidence” that the company has at least one of five moat sources: intangible assets, cost advantages, switching costs, network effects or efficient scale.
For a business to be rated as having a wide economic moat, it must (with near certainty) be able to generate excess normalised returns in a decade from now, and more likely or not be positive in 20 years from now.
The shares in this ASX share’s portfolio comes from a range of industries. However, there are four with a weighting of more than 10%: IT (26.2%), healthcare (19.1%), industrials (13.6%) and consumer staples (11.7%).
At the latest daily disclosure, these are the biggest of the 50 positions: Salesforce, Microsoft, Cheniere Energy, Wells Fargo, Tyler Technologies, Compass Minerals, Blackbaud and Alphabet.
Past performance is not a guarantee of future results, but over the past three years the ASX share’s net performance has been an average return per annum of 19.3%.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a healthcare technology business that provides a number of software offerings relating to care and administration for patients undergoing breast screening.
The business is growing at a rapid pace in percentage terms. In the second quarter of its FY22, it experienced record quarterly cash receipts from customers of NZ$7.1 million, which was up approximately 52%. It received NZ$6.9 million of subscription-based receipts, up 63%.
Annual recurring revenue (ARR) reached US$20.4 million, up more than US$1.2 million from the end of the FY22 first quarter.
It has reached a market share coverage of 34% of US women being screened, up from around 33% in the prior quarter. This gives it more power in the US market.
Average revenue per user (ARPU) over Volpara’s installed based was US$1.46 in the second quarter, up from US$1.42 in the first quarter. Average ARPU in the first quarter was US$1.55, it was US$2.04 in the second quarter.
The ASX share is targeting growth in its ARPU through a number of initiatives including upselling to existing customers and offering a higher focus on patient risk.
Its software as a service (SaaS) retention remains high and it recently closed its largest contract to date that will deliver US$2.15 million in revenue over five years, representing US$430,000 in ARR.
The company is also positioning for lung cancer screening. Management believe the commercial opportunity in lung screening is at least equal to breast screening, with over US$400 million ARR in the US alone. Volpara has partnered with AI leaders like Riverain, MeVis and RevealDX to build a lung platform and enter the screening market as programs are set up globally.
The post Have money to invest? Here are 2 ASX shares that could be potential buys appeared first on The Motley Fool Australia.
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Motley Fool contributor 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 and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended 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.