There are a lot of quality companies for investors to choose from on the Australian share market.
But two excellent ASX shares that stand out as no-brainers for me are listed below. Here's why I think they are strong buys:
Image source: Getty Images
Altium Limited (ASX: ALU)
The first no-brainer is Altium. I think the electronic design software company is one of the best buy and hold options on the local share market. This is due to the increasingly popular Altium Designer and Altium 365 platforms and its other growing businesses. The latter includes the NEXUS team-based PCB workflow solution and the Octopart electronic parts search engine.
As these businesses have exposure to the rapidly growing Internet of Things (IoT) and artificial intelligence (AI) markets, I believe they are in a strong position for growth over the 2020s. Management certainly believes this to be the case. It is aiming to grow its revenue to US$500 million by 2025-2026. This will be more than 150% higher than FY 2020's revenue. It is also targeting market dominance in electronic design software and a massive 100,000 subscribers.
NEXTDC Ltd (ASX: NXT)
Another no-brainer ASX share to buy is NEXTDC. It is a data centre as a service (DCaaS) company which operates a number of world class centres in key locations across Australia. Demand for capacity in its centres has been growing very strongly in recent years and particularly during the pandemic as more and more infrastructure shifts to the cloud. This underpinned strong earnings growth in FY 2020 and appears to have put NEXTDC in a position to repeat its heroics in FY 2021.
Another positive is its recent debt update. Not only has the company reduced its cost of debt materially, it has provided it with funds to accelerate its growth. And judging by the fact that some of the funds are multi-currency, NEXTDC could have its eyes on expanding into the Asia market in the future. Overall, with the cloud computing boom only really getting started, I believe NEXTDC is perfectly positioned for growth over the 2020s.
