Are you looking to add a growth share or two to your portfolio this month? Then take a look at the two ASX shares listed below.
Here's why they could be growth shares to buy right now:
Kogan.com Ltd (ASX: KGN)
The first growth share to look at is this ecommerce company. It has been a very strong performer over the last 12 months thanks to the accelerating shift to online shopping. With shops shutting at the height of the pandemic and people being locked down, millions of consumers went online for their shopping. This gave Kogan's performance a major boost, leading to explosive growth in FY 2020.
Pleasingly, although life is getting back to normal, consumers are still flocking online for shopping. This has led to Kogan's strong growth continuing in FY 2021. For example, during the first four months of FY 2021, Kogan's sales were up 99.8% and its operating earnings were up 268.8% over the same period last year.
In addition to this, the company has acquired online retailer Mighty Ape for NZ$120 million and furniture retailer Matt Blatt for $4.4 million. These additions look set to give its second half performance a boost.
Canaccord Genuity is a fan of Kogan and has a buy rating and $25.00 price target on its shares.
ResMed Inc. (ASX: RMD)
Another growth share to look at is ResMed. Its is a medical device company with a focus on the fast-growing sleep treatment market.
ResMed also manufactures ventilators, which have been in high demand during the pandemic. In fact, demand has been so strong, it offset softness in the sleep treatment side of the business and underpinned a very strong result in FY 2020 and stellar growth in the first quarter of the new financial year.
While COVID is likely to stifle the growth of the sleep treatment business in the near term, as fewer people are diagnosed with sleep apnoea, it has been tipped to accelerate its growth once trading conditions improve.
Analysts at Morgans are positive on the company. This week the broker retained its add rating and $30.99 price target on ResMed's shares. While it acknowledges that it could be facing some headwinds, it believes its future remains bright thanks to its new product pipeline and growing digital business.
