ResMed Inc. (ASX:RMD) and this ASX share have been tipped as places to invest $20,000 right now. Here’s why…
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At the weekend I wrote about how $20,000 investments had fared in certain shares over the last 10 years.
But that was then, what about the next 10 years? If you’re in a position to invest $20,000 into the share market, then these buy-rated shares might be the ones to look at.
Here’s what you need to know:
Nearmap is a leading aerial imagery technology and location data company. It gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means that users can undertake site visits from the comfort of their home or workplace, which offers both significant time and cost savings.
Management appears confident that it is well-positioned for growth thanks to its recent capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
One broker that likes what it sees here is Macquarie. It currently has an outperform rating and $3.20 price target on Nearmap’s shares. It notes that its capital raising will bolster its balance sheet, allows management to push ahead with growth plans in the US, and enables the roll out of HyperCamera3.
ResMed is a medical device company with a focus on sleep treatment products and ventilators. It has been growing at a consistently strong rate over the last decade thanks to its industry-leading products and the growing awareness of sleep disorders.
The good news for ResMed is that it still has a very large market opportunity to grow into in the future. Management estimates that there are 936 million people with sleep apnoea globally, with the majority of these sufferers undiagnosed. In addition to this, the company notes that there are 380 million people who suffer from chronic obstructive pulmonary disease (COPD) and over 340 million people living with asthma. These are all people whose lives could be improved with ResMed’s products in the future.
Last week analysts at Credit Suisse upgraded ResMed’s shares to an outperform rating with a $31.00 price target. The broker believes ResMed is perfectly placed to benefit from a post-pandemic shift to home health care. It expects this to underpin double-digit earnings growth over the medium term.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.