The coronavirus pandemic has presented investors with some tremendous investment opportunities. Following its steep decline earlier this year, the S&P/ASX 200 Index (ASX: XJO) has bounced more than 30% from its lows in March. Despite the volatility, quality shares with great, long-term growth potential have come out shining. Here are 2 ASX growth shares that have led the charge and could blossom even further in 2020 and beyond.
Pointsbet Holdings Ltd (ASX: PBH)
The PointsBet share price has bolted an astounding 450% from its lows in mid-March. Yesterday, PointsBet hit a new all time high of of $7.92 before falling back to $6.14 in today's trade. PointsBet is a corporate bookmaker that offers wagering services for sports and betting products through its cloud-based platform. With local and international sport beginning to resume, investors have acknowledged the boost this will have on the business operations of PointsBet and, subsequently, the growth of the company's share price.
In a trading update last month, PointsBet highlighted that despite the disruptions of the coronavirus pandemic, the company managed to record 'net wins' for both February and March. PointsBet also provided an update on its Australian operations, with the company recording a net win of $18.2 million for the period 1 April to 25 May.
Furthermore, PointsBet elaborated on its agreement to become the exclusive wagering partner for Fox Sports AFL (Fox Footy) for the 2020 season. The agreement highlights PointsBet's continued approach to targeting media assets to build increased client acquisition and wagering volumes.
Nanosonics Ltd. (ASX: NAN)
The coronavirus pandemic has highlighted the need for better infection prevention and control in medical settings. My second growth share pick, Nanosonics, is a global provider of sterilisation devices to hospitals and healthcare centres. Investors have acknowledged the potential for the company to benefit from the growing demand in this field. This has seen the Nanosonics share price recover more than 50% from its March lows.
Nanosonics boasts a solid revenue model and services a projected 20% of the global market. In addition to generating attractive margins from the sale of its 'trophon' devices, Nanosonics also generates recurring revenue from its patented consumable components.
The company released a trading update in early April, informing the market that unaudited sales were significantly up from the prior corresponding period. In addition, Nanosonics also advised that the sale of its consumables were in line with pre-coronavirus expectations.
Should you buy these potential growth shares?
The coronavirus pandemic has put pressure on the earning prospects of many companies on the ASX. As a result, it would be wise for investors to exercise caution and not jump in and attempt to buy growth shares because they 'look' cheap.
However, in my opinion both the PointsBet and Nanosonics share prices have experienced growth because they boast business models capable of withstanding the economic downturn whilst also having great, long-term growth prospects.
