If you are looking to invest in high quality ASX shares that have great prospects for long-term growth both locally and internationally, I think these 3 ASX companies are well worthy of consideration.
What I really like about all 3 is that not only do they all have strong entrenched market positions, they also still have long growth runways ahead of them.
Appen Ltd (ASX: APX)
Appen is the global leader in providing data for use in machine learning and artificial intelligence (AI). Appen studies how people speak and interact with each other and technology applications, packages the data and then sells it to other tech companies to improve their artificial intelligence applications.
For example, Appen assists companies such as Apple and Google to train their virtual assistants like Siri how to interact with people.
Appen is growing at a phenomenally fast pace and continues to experience very strong demand from many of the largest global technology firms. For the first half of FY19, revenue was up 60% to $245 million.
I believe Appen is well placed to see continued strong growth during 2020 and through to 2030, due to the rapidly rising demand for AI products and machine learning markets. Since late July 2019 there has also been a significant correction in Appen’s share price with shares down by 21%, providing, in my opinion a good buying opportunity.
Afterpay Ltd (ASX: APT)
The Afterpay share price has skyrocketed since being listed on the ASX in 2017 – during the past 12 months alone the share price has increased by over 130%.
The buy-now, pay-later (BNPL) provider is a market leader and continues to display strong growth in Australia and New Zealand, although Afterpay is facing growing competition from other BNPL providers such as Zip Co Ltd (ASX: Z1P) and newcomer Openpay Group Ltd (ASX: OPY).
Afterpay is making good progress on its international expansion strategy into the United States (US) and has recently entered the United Kingdom (UK), where it has already gained a solid start. The company has also recently moved into healthcare services.
Factored into its current share price are expectations for very fast growth to continue, especially as Afterpay is still not profitable. But barring any major regulatory barriers, I feel it looks reasonably well placed to meet those targets.
A2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price has performed well since last November, with a2 Milk shares up by just over 30% since then. a2 Milk has been growing at a very impressive rate since it listed and that strong growth looks set to continue.
With its well-established brand name and entrenched position in the Australian market, it is better placed than other infant formula providers such as Bubs Australia Ltd (ASX: BUB) and Nuchev Limited (ASX: NUC).
Continued strong growth in the US and China will be key to a2 Milk’s success over the next 5 years.
The market has factored in ambitious growth targets for a2 Milk, and if these targets are not met, then the a2 share price could be negatively impacted. However, a2 Milk appears to be reasonably well placed to meet future targets, making it a good company to buy and hold for the long-term in my opinion.
These 3 stocks could be the next big movers in 2020
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Phil Harpur owns shares of A2 Milk, AFTERPAY T FPO, and Appen Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. The Motley Fool Australia has recommended BUBS AUST FPO. 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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