One small positive from the recent market turmoil is that it has dragged some quality shares down to very attractive levels.
Three growth shares which I think are trading at levels that could lead to them generating strong returns for investors over the next decade are listed below. Here’s why I like them:
Appen Ltd (ASX: APX)
The Appen share price has been dragged notably lower by the coronavirus-induced market volatility. This means the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence is trading within sight of its 52-week low and a long way from its 52-week high. I think this is a buying opportunity for investors that are prepared to make a long-term investment. This is because spending on machine learning and artificial intelligence is expected to grow significantly over the next decade, which should drive very strong demand for its services and support stellar top and bottom line growth.
Jumbo Interactive (ASX: JIN)
Jumbo is an online lottery ticket seller which is best known as the operator of the Oz Lotteries website. Due to a combination of its weakening margins from its investment in growth opportunities and the market volatility, Jumbo’s shares have fallen materially in 2020. I think this has left Jumbo trading at a very attractive level for a long term investment. After all, as well as its leading position in Australia, the company has its eyes on the UK and US markets and looks well-positioned to disrupt them. Doing so would certainly help the company with its FY 2022 target of $1 billion of ticket sales through the Jumbo platform. This will be around triple what it achieved in FY 2019.
Webjet Limited (ASX: WEB)
The shares of Webjet have fallen significantly due to the coronavirus outbreak. This is because investors are concerned that it could experience a sharp decline in bookings in the second half if consumers cancel their travel plans. Whilst I suspect that Webjet’s performance will weaken notably in the second half and offset a lot of its very impressive first half performance, I’m confident that its growth will accelerate once the coronavirus outbreak passes. This could make it worth picking up shares whilst they are trading at these ultra low levels and holding onto them for the long term.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
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 and recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Jumbo Interactive Limited and Webjet Ltd. 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.