A new year is here, so what better time to look at giving your portfolio a lift with a new addition or two.
But which shares should you buy? Listed below are two top ASX shares which have been tipped as potential market beaters over the next few years. Here's what you need to know about them:
Kogan.com Ltd (ASX: KGN)
Kogan is one of Australia's leading ecommerce companies. It has been growing very strongly this year after the pandemic accelerated the adoption of online shopping.
Pleasingly, its strong form has continued even after retail stores reopened as normal once again. For example, during the first four months of FY 2021, Kogan's sales were up 99.8% on the prior corresponding period and its operating earnings were up an even greater 268.8%.
And with more and more spending expected to shift online in the future, Kogan looks well-positioned for growth over the 2020s. The company is also looking to accelerate its growth with earnings accretive acquisitions such as Mighty Ape.
Canaccord Genuity has a buy rating and $25.00 price target on the company's shares. It was pleased with the Mighty Ape acquisition and sees the potential for significant revenue and cost synergies.
NEXTDC Ltd (ASX: NXT)
Another share to look at is NEXTDC. It is a leading data centre-as-a-service provider with a growing network of centres in key locations across Australia. As with Kogan, it has been a very strong performer this year because of tailwinds caused by the pandemic.
The accelerating shift to the cloud has led to a significant increase in demand for capacity in its data centre and underpinned strong revenue and earnings growth.
Looking ahead, the company still has a long runway for growth in Australia and opportunities to expand internationally. In respect to the latter, the company has recently opened offices in Singapore and Tokyo and is weighing up its options in these markets.
Morgan Stanley is a fan of the company and believes it is well-placed for growth. The broker has an overweight rating and $14.60 price target on its shares.
