2 ASX shares to buy that are growing rapidly

The 2 ASX shares in this article are growing really quickly. One of those stocks is Bapcor Ltd (ASX:BAP), but both are worth watching.

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There are some ASX shares that are growing really fast and could be worth watching.

Some businesses have the potential to deliver market-beating returns if they're growing a lot faster than other companies.

Here are two businesses where the revenue and profit is rising rapidly:

Bapcor Ltd (ASX: BAP)

Bapcor is the largest auto parts business in Australia and New Zealand.

The ASX share recently released a trading update as its FY21 half-year result gets closer.

For the financial year to date to the end of November, Bapcor's overall revenue was up around 26%. The leadership explained that it is achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline (an acquisition) which was not included in the prior corresponding period.

For the FY21 interim report, Bapcor is expecting to achieve revenue growth of at least 25% over the prior corresponding period in the previous year, with net profit after tax (NPAT) likely to grow by at least 50% compared to the prior corresponding period.

Darryl Abotomey, the Bapcor CEO and managing director, said: "We are very pleased with the strong performance of Bapcor's businesses. Trade and wholesale represent over 80% of Bapcor's business, with retail at approximately 20%. Historically, trade focussed businesses perform solidly in difficult economic conditions – which is again borne out of Bapcor's current performance."

The ASX share also said that the construction of the new Victorian distribution centre is progressing well. The company said this is an exciting development that will deliver significant operational benefits.

Fund manager WAM Research Limited (ASX: WAX), which holds Bapcor, said that the ASX share has benefited from an increase in domestic travel, reduced usage of public transport and increased second-hand car sales. WAM said that Bapcor has a strong balance sheet and the fund manager believes the company is well placed to make earnings-accretive acquisitions.

At the current Bapcor share price, it's valued at 19x FY23's estimated earnings.

Redbubble Ltd (ASX: RBL)

Redbubble is an ASX share that operates two of the largest online websites for selling artist-produced goods. Those websites are Redbubble.com and TeePublic.com. There are various product categories sold through the websites including bags, housewares, clothes, stationery and wall art.

In the first quarter of FY21, Redbubble generated marketplace revenue growth of 116% to $147.5 million. This drove gross profit higher by 149% to $64.5 million. In the quarter it also generated $22.1 million of earnings before interest and tax (EBIT) and $27.1 million of operating cash. It only made $10.2 million of operating cashflow in the prior corresponding period.

At the time of the trading update, Redbubble CEO Martin Hosking said: "The strategic priority for the group now is to ensure we extend the market leadership we have established. We intend to invest in the customer experience to improve loyalty and retention and ensure long-term higher levels of growth. The company has the resources to undertake the anticipated investments and the margin structure to ensure it can do so while remaining profitable."

Joseph Kim from Montgomery Investment Management said that Redbubble has been one of the clear winners from the shift to online. However, whilst the ASX share has clearly been a "stay-at-home" trade, the fundie believes the business has the opportunity to emerge a longer-term structural winner from COVID-19 if it can capitalise in the recent spike in user and customer interest as a result of recent lockdown measures.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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