The coronavirus is causing a lot of volatility in the share market. I think this is opening up a lot of opportunities to buy shares at a cheaper price.
The human side of this is terrible, but on the investment side of things we aren’t presented with low share prices like this very often.
Here are three ASX growth shares that I think would be good options to beat the coronavirus declines:
Pushpay Holdings Ltd (ASX: PPH)
There aren’t many businesses that are continuing with their growth trajectory during this period. Pushpay, a business that enables electronic donations to charities or organisations such as churches, is one of those that has upgraded its guidance.
The Pushpay share price is down around 25% over the past month but it’s actually benefiting because its customers are using technology to communicate with their congregations and encourage digital giving.
The company was previously expecting, before acquisition costs, that earnings before interest, tax, depreciation, amortisation and foreign exchange (EBITDAF) would be between US$23 million to US$25 million. Now it’s expecting EBITDAF to be between US$25 million to US$27 million.
It’s expecting operating leverage to continue over the next financial year. This is a good sign.
Magellan High Conviction Trust (ASX: MHH)
Magellan High Conviction Trust is a listed investment trust (LIT) which is invested in some of the world’s best businesses which should sail through this difficult time.
It has a portfolio of around 10 names, its biggest five positions alphabetically are: Alibaba, Alphabet, Facebook, Microsoft and Visa.
Its manager has been one of the best performers in Australia over the past decade and I think this record could continue because it only invests in very high-quality businesses with very strong moats and excellent futures.
The falls are also cushioned by the fact that the Australian dollar is falling.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Fisher & Paykel Healthcare is another business that is seeing continuing growth during this difficult period.
Its share price has continued to rise over the past month. The company is now expecting revenue to be approximately NZ$1.24 billion with net profit after tax (NPAT) to be between NZ$275 million to NZ$280 million.
The reason for the strong performance is because its respiratory humidifiers and consumables are directly involved in treating patients with coronavirus. It has also seen stronger sales in its Homecare product group. Plus, it’s benefiting from a weakening NZ dollar.
The lower interest rates make today’s prices even better because everything should be valued with interest rates in mind. At the current prices, Pushpay could produce the strongest returns over the next two or three years, but I like the diversification the Magellan High Conviction Trust has.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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.