Are you wanting to add a few growth shares to your portfolio? Well now could be a great time to do it.
A number of popular ASX growth shares have pulled back meaningfully from recent highs. I think this could be a buying opportunity for investors next week.
Two ASX growth shares I would buy are listed below:
The first growth share to consider buying is Afterpay. This payments company’s shares are currently trading 23% lower than their 52-week high. This has been driven by weakness in the tech sector and news that PayPal is entering the buy now pay later market with its Pay in 4 product. In respect to the latter, I’m not overly concerned by this news due to its leadership position and its strong brand. I suspect the smaller players are the ones that will suffer most from PayPal’s entry.
In light of this, I think the weakness in the Afterpay share price is a gift for buy and hold investors. This is because I’m confident Afterpay has the potential to grow materially in the future thanks to the increasing popularity of the payment method, its $5 trillion opportunity in the United States, and its global expansion plans.
Pushpay Holdings Group Ltd (ASX: PPH)
Another ASX growth share to buy and hold is Pushpay. The shares of the donor management and engagement platform provider for the faith sector have fallen over 24% from their 52-week high. I think this has created a buying opportunity for long term-focused investors.
Especially given its very positive growth outlook. After smashing its guidance in FY 2020, the company is on course for more strong growth in FY 2021. Management provided guidance for EBITDAF of between US$48 million and US$52 million. This will be a 91.2% to 107% increase, respectively, year on year.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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 February 15th 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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