If you’re looking to make some new additions to your portfolio, then I think the three ASX shares named below would be fantastic options.
I believe they are among the best shares available to investors on the Australian share market and could generate strong returns for investors over the next decade.
Here’s why I would give them five stars:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Although its performance over the last couple of years has been a bit shaky, I would still give Domino’s Pizza five stars. This is because I believe the pizza chain operator’s plans have positioned it to deliver strong earnings growth over the next decade. Over the next five years the company is aiming to grow its same store sales by 3% to 6% per annum. It is also aiming to deliver annual organic new store additions of 7% to 9% per annum over the same period. If successful, the combination of the two would result in stellar earnings growth if its margins are maintained.
Pushpay Holdings Group Ltd (ASX: PPH)
Another share that I would give five stars is Pushpay. It is a donor management platform provider for the faith sector. Over the last few years Pushpay has grown its market share in the United States at a rapid rate. This has led to the company reporting very strong revenue growth over the period. For example, in FY 2020 Pushpay reported a 33% increase in revenue to US$127.5 million. And thanks to its operating leverage, the company’s earnings grew at an even quicker rate. The good news is that more of the same is expected in FY 2021, with management forecasting its operating earnings to double. But it won’t be stopping there. Its longer term target is to win a 50% share of the medium to large church market. This represents a US$1 billion revenue opportunity.
A final share I would give five stars is SEEK. I think the founder-led job listings giant is a high quality business with the potential to grow materially in the future. This is thanks largely to its international operations and particularly its rapidly growing Zhaopin business in China. I expect this business to play a key role in the company achieving its goal of growing its revenue to $5 billion later this decade. This compares to the revenue of $1,537.3 million it posted in FY 2019.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited, PUSHPAY FPO NZX, and SEEK Limited. 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.
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