Check out these ASX growth shares…
The post Why Zip (ASX:Z1P) and these growth shares could be buys appeared first on The Motley Fool Australia. –
Looking for growth shares to buy this month? Then you may want to consider the three listed below.
Here’s why they have been tipped as growth shares to buy:
The first ASX growth share to look at is NEXTDC. It is a leading data centre operator benefiting greatly from the structural shift to the cloud. This shift has led to growing demand for data centre capacity over the last few years, which has resulted in strong revenue and operating earnings growth. And with this shift still ongoing, the future looks bright for NEXTDC. Particularly if its overseas expansion is a success.
UBS is positive on the company. It currently has a buy rating and $15.40 price target on its shares.
PointsBet Holdings Ltd (ASX: PBH)
Another ASX growth share to look at is this sports betting company. Its operations in the ANZ and US market are growing very quickly and generating significant revenue. Positively, the latter market is still in its infancy and only just opening up to this type of betting. This bodes well for the future given the size of the market. For example, Goldman Sachs expects the US sports betting market to grow at a compound annual growth rate of 40% out to 2033. At that point it believes it will be worth US$39 billion a year.
Goldman currently has a buy rating and $14.90 price target on its shares.
A final ASX growth share to look at is Zip. This buy now pay later (BNPL) provider has been growing at a strong rate over the last few years thanks to the increasing popularity of the payment method and its international expansion. The good news is the company still has a very long runway for growth. Management notes that the US market alone is worth $5 trillion.
Analysts at Citi currently have a buy rating and $14.90 price target on its shares.
Should you invest $1,000 in Zip right now?
Before you consider Zip, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.