I have several ideas if I were investing $10,000 into ASX shares today.
One of the great things about investing in shares is that prices are constantly changing. That presents different opportunities over the weeks and months.
Looking at the current prices, these are the ASX shares that I'd love to buy today:
Citadel Group Ltd (ASX: CGL) – $2,500
Citadel is an ASX software business with a lot of international growth potential. In FY20 the ASX share acquired UK healthcare business Wellbeing. That acquisition turned Citadel into the software market leader for radiology and maternity in the UK.
The ASX software business thinks there is significant cross-selling market opportunities valued at between $250 million to $350 million in total contract value revenue in tenders over the next two to three years.
Citadel now has a high level of recurring revenue and a pro forma gross profit margin of more than 65%. The company thinks it's well placed to benefit from an increase in digital health spending on the next few years.
In its software divisions it's targeting long-term organic revenue growth of more than 15% per annum. In the services divisions it's aiming for organic revenue growth of 5% to 10% per annum.
The ASX share plans to diversify its technology into new verticals and building contracts. It's looking for further opportunities for acquisitions as well as investing into research and development.
At the pre-open Citadel share price it's priced at under 12x FY23's estimated earnings.
Brickworks Limited (ASX: BKW) – $2,000
Brickworks nearly always looks good value to me when you consider the various elements of the ASX share.
One key long-term asset is the share holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Brickworks owns almost 40% of the investment conglomerate, which itself is a quality investment with diversified businesses in its portfolio like TPG Telecom Ltd (ASX: TPG), Brickworks, Clover Corporation Limited (ASX: CLV), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).
Brickworks owns a 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). Over the next couple of years both Amazon and Coles Group Limited (ASX: COL) will be tenants at large warehouses that are being built by the trust.
The pre-tax value of the above two assets alone support the current Brickworks market capitalisation.
It also has both an Australian and American building product division. Obviously COVID-19 is hurting construction at the moment, but hopefully economic conditions will go back to (a new) normal sooner rather than later. I think it's a good time to buy a somewhat cyclical ASX share like Brickworks whilst there is uncertainty.
At the pre-open Brickworks share price it offers a grossed-up dividend yield of 4.6%.
Pushpay Holdings Ltd (ASX: PPH) – $5,500
Pushpay is an electronics donation business. It helps facilitate digital giving to organisations like large and medium US churches.
There is a large amount of money donated to churches each year. COVID-19 is causing more of that money to be given digitally, which is helpful in bringing forward the adoption curve for Pushpay. The company is aiming for annual revenue of US$1 billion per year, which would turn it into a much larger business.
In FY21 the ASX share is aiming to double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to US$50 million to US$54 million.
It's the scalability of the business that is very exciting. In FY20 alone it grew its gross margin from 60% to 65%.
At the pre-open Pushpay share price it's valued at 30x FY22's estimated earnings.
Foolish takeaway
I think each of these ASX shares are attractively priced, particularly Pushpay and Citadel after the recent falls. I believe they can both deliver market-beating returns over the long-term. It's hard to pick a winner because I believe both ASX tech shares can deliver good profit growth.
