3 ASX growth shares I’m investing $10,000 this week

If you’ve already built a strong core and are looking for some outliers to supercharge your portfolio, here are my top recommendations. 

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If you’ve already built a strong core and are looking for some outliers to supercharge your portfolio, here are my top recommendations. 

Nearmap – $2,500

Nearmap Ltd (ASX: NEA) is a business-to-business solution which allows companies to conduct site visits digitally. This is achieved by using plane-mounted cameras which deliver a high frequency of high-resolution images. In October, Nearmap grew its stock price by 1.8% to $2.71 as of yesterday. If you had held this stock since the beginning of the year, you’d be up a whopping 77%.

Nearmap offers a market-leading product that is capturing the attention of the US market. It generates over 30% of its revenue beyond the ANZ region, and its subscription model ensures stability in its cash flow. With 94% recurring revenue and a hugely untapped market expected to be valued at $14.2 billion next year, Nearmap has a ton of room to grow.

Its FY19 results reflected this strong growth momentum. Earnings before interest, tax, depreciation and amortisation (EBITDA) rocketed 216% higher to $15.5 million. Nearmap has just 1–2% of market share, and I am positive that it will succeed in capturing a large portion of this addressable market.

Sezzle – $2,000

Similar to Afterpay Touch Group Ltd (ASX: APT), Sezzle Inc (ASX: SZL) provides an interest-free instalment solution to its customers. The company has grown 16% higher since the beginning of October, closing at $2.17 as of yesterday, and has had a stellar morning so far today to be up another 4.06% at time of writing.

Sezzle posted fantastic Q3 results yesterday. Active users were up over 200,000 to 644,509, a 49.9% increase in just 3 months. It also increased its number of active merchants, rising 48.7% to 7,507. As a result, underlying merchant sales zoomed 64.2% higher, resulting in a 68.9% increase in revenue to $US3.6 million.

The company also reminded investors of its recent partnership with Visa’s CyberSource platform. Sezzle’s product is now offered to over 400,000 businesses that utilise CyberSource, and the company is expecting to reap the benefits from this partnership over the next quarter. As I’m a believer that the buy-now, pay-later category has room for more than one competitor, Sezzle’s growth to date and meaningful partnerships make this a winning growth company.

Nanosonics – $5,500

Nanosonics Ltd (ASX: NAN) is a healthtech company that commercialises the trophon EPR, an ultrasound probe disinfector which reduces the risk of ultrasound-related cross-infection. Its share price has zoomed 128% higher to $6.76 as of yesterday, although it has dipped slightly in morning trade to $6.71 at time of writing.

A large driver of this growth has been the company’s FY19 results. Revenue increased by 39% to $84.3 million and its user base expanded globally by 18% to 20,930. This was attributed to Nanosonics’ aggressive international expansion plans having entered new markets across Europe, North America and Asia.

This far exceeded analyst expectations of a net profit after tax (NPAT) of $10.27 million. Nanosonics’ NPAT grew by 137% to $13.6 million, with management anticipating that growth levels will be retained in the new year.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Sezzle 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.

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