The coronavirus impacts are deep and widespread. Many of the ASX’s top growth shares have been hit.
There are a select few top ASX growth shares that just keep growing. They were going well before this and now, despite the terrible events, their growth is accelerating.
These businesses aren’t seeing their share prices hit in other industries like Challenger Ltd (ASX: CGF) or Webjet Limited (ASX: WEB). Are you looking for businesses that could keep performing whatever happens next? I think these could be some ASX growth share winners:
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
The company is part of the group of businesses that produce products that are used in the fight against the coronavirus. Its respiratory humidifiers and consumables are directly involved in treating patients. It’s having to ramp up its production to keep up with the demand.
The company is benefiting from stronger sales in the Homecare product group and a weakening of the New Zealand dollar.
The new guidance is for operating revenue to be approximately NZ$1.2 billion and net profit after tax to be approximately NZ$260 million to NZ$270 million.
I think New Zealand and Australia have kept the virus in check very well. But there is still high demand from other countries. And I imagine countries will be stockpiling supplies for potential further breakouts as well as making sure the national supply is refilled.
The Fisher & Paykel share price is actually up 5.4% since the market falls began.
Pushpay Holdings Ltd (ASX: PPH)
I think Pushpay’s service is perfectly suited for this type of situation. In-person gatherings have been banned in many states in US. I believe a system that allows people to electronically donate to churches and provide videostreaming of the church service is very useful.
It’s one of the few small caps to actually increase its operating profit guidance during this period.
Pushpay had just reached profitability and positive cashflow status. I believe these sad events could really accelerate the churches shifting to using Pushpay for electronic donations. I think cash donations are much more variable and unreliable.
Despite upgrading its expectations, the share price is actually down by 19% from its February 2020 high.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk released an update today where the infant formula business said it was experiencing higher revenue as well as lower costs because of the impacts of the coronavirus.
It’s expecting a higher profit margin in FY20, but it’s still predicting a longer-term earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 30% for the medium-term as it continues to invest for growth.
I think are few ASX businesses which are growing internationally as successfully and profitability as A2 Milk.
The A2 Milk share price has risen 18% since the market declines began.
I think all three of these growth shares are performing strongly. At the current prices I’m most inclined to go for Pushpay because of its lower price, stronger prospects and its growth potential (due to its much smaller size).
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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 Challenger Limited, PUSHPAY FPO NZX, and Webjet Ltd. The Motley Fool Australia owns shares of A2 Milk. 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.