Looking for 2 ASX shares that have strong long-term growth potential? Australia's economy may be starting to pick up after the coronavirus. Now could be a good time to top up on your ASX portfolio with Transurban Group (ASX: TCL) and JB Hi-Fi Limited (ASX: JBH) shares.
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Why JB Hi-Fi?
Bricks and mortar retailers such as Myer Holdings Ltd (ASX: MYR) and Reject Shop Ltd (ASX: TRS) have seen recent struggle.
However, JB Hi-Fi continued to see strong momentum through the quarter containing March. Its Australia division experienced sales growth of 11.6%. Growing stronger was its Good Guys division at 13.9%. This strong momentum continued into April and early May.
JB Hi-Fi's Australia stores remained open during the coronavirus crisis.
The demand for a range of goods including technology products for remote working, learning and communication remains strong. Essential home appliances for food storage and preparation saw high demand, too.
In particular, the company's online channel strategy is well developed, assisted by a handy click and collect facility.
JB Hi-Fi's share price has rallied strongly from its 12 month low in late March. Despite it becoming a bit pricey, I still believe it offers reasonably good value as a long-term buy.
It also offers an attractive forward annual dividend yield of 3.9%, that is fully franked.
Why Transurban?
Transurban is one of the world's largest toll-road operators. It's the largest operator of private toll-roads in Australia, owning a virtual monopoly of Sydney and Melbourne tolls with a number also in Brisbane. In addition, Transurban also manages and develops toll-roads in North America.
Unsurprisingly, Transurban's traffic volumes were significantly impacted in the early phases of the coronavirus pandemic. However, Transurban revealed in its most recent update in early May that traffic numbers are now starting to pick-up again.
Also, some commuters may be choosing to drive instead of taking crowded trains and buses through public transport.
I believe that Transurban is still well-positioned for long term growth. This is likely to lead to above-average shareholder returns.
A key driver of this will be the increasing use of toll roads. Congestion on our main roads is growing as our major cities continue to expand. Thus, vehicle volumes will inevitably continue to increase.
Both Transurban and JB Hi-Fi shares, I believe, offer strong long-term growth potential and are worth a look by investors.
