If you're looking for additions to your portfolio next week, then I think the three ASX shares listed below would be great options.
I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.
Here's why I rate them as five-star stocks:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first five-star option for investors to consider buying is the BetaShares NASDAQ 100 ETF. I think this exchange traded fund would be a great option due to the fact that it gives investors access to a large number of five-star stocks through just a single investment.
The BetaShares NASDAQ 100 ETF provides investors with exposure to the 100 largest non-financial shares on the famous Nasdaq index. These are among the highest quality companies in the world and include the likes of Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, Tesla, and Google parent, Alphabet. Collectively, I believe these 100 companies have the potential to outperform the ASX 200 by some distance over the 2020s.
Pushpay Holdings Ltd (ASX: PPH)
Another five-star share to consider buying is Pushpay. It is a donor management and engagement platform provider with a focus on the faith sector. Pushpay has been growing its earnings at a rapid rate in recent years thanks to the growing popularity of its platform with churches. This led to the company reporting a very impressive ~1,500% increase in EBITDAF in FY 2020.
The good news is that this strong performance is expected to continue in FY 2021. Management has provided EBITDAF guidance of US$50 million to US$54 million. This represents a 99% to 115% increase year on year. But its growth isn't likely to stop there. Pushpay has its eyes on winning a 50% share of the medium to large church market in the future. This is currently estimated to be worth US$1 billion in revenue. As a comparison, Pushpay's revenue in FY 2020 came in at US$127.5 million.
ResMed Inc. (ASX: RMD)
A final five-star share to buy is ResMed. I believe the sleep treatment-focused medical device company is one of the best long term options on the Australian share market. This is because I feel ResMed's masks and software-as-a-service solution are among the best on the market and likely to experience a surge in demand in the coming years as the number of people diagnosed with sleep disorders increases.
Management estimates that there could be upwards of 1 in 7 people impacted by sleep apnoea. However, the vast majority of these sufferers are undiagnosed at present. I believe this provides ResMed with a significant runway for growth over the next decade.
