Got money to invest? Here are 2 ASX shares to buy

These 2 ASX shares could be worth a buy at the current prices, including plus-size clothes retailer, City Chic Collective Ltd (ASX:CCX).

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There are always different opportunities being presented with ASX shares, there are two in this article that could be worth thinking about.

Share prices are changing all the time, so sometimes good opportunities are fleeting if there’s a short-term dip in the price.

Businesses that are showing good scalability could be worth paying attention if profit grows faster than revenue:

Kogan.com Ltd (ASX: KGN)

Kogan.com is an e-commerce business that is growing particularly quickly. Its retail offering is resonating with shoppers as the business rapidly takes market share in the retail and services world.

The Kogan.com share price has fallen by 37% over the last two months. During that time period, the company actually reported a high level of growth in its half-year result.

Kogan.com’s active customer numbers rose by 76.8% to just over 3 million as people turned to online shopping to get the device, furniture or other items they were looking for. That’s why gross sales went up 97.4% to $638.2 million and revenue grew by 88.6% to $414 million.

The ASX share saw a record breaking Black Friday trading period with seven of the biggest ten trading days occurring within the days surrounding Black Friday.

Exclusive brands achieved revenue growth of 114.9%, with gross profit increasing 174.9%. This contributed 55% of the overall profit. Third party brands achieved growth of revenue and gross profit of 50.5% and 77% respectively. Kogan Marketplace saw gross sales increase by 194.3%.

Overall, Kogan.com achieved gross profit growth of 126.2% and net profit after tax (NPAT) grew 164.2% to $23.6 million.

The company’s margins continue to climb despite record amounts of investments in advertising and its operations. It has also made an acquisition called Mighty Ape in New Zealand which could grow profit significantly.

The decline of the Kogan.com share price has meant it’s now valued at under 20x FY23’s estimated earnings according to Commsec.

City Chic Collective Ltd (ASX: CCX)

Plus-size clothing retailer City Chic is a business that’s aiming to be a global leader in its category.

A few different brokers like City Chic right now and rate it as a buy, including Morgan Stanley which has a price target of $4.75.

It has strong platforms for growth with City Chic in Australia and New Zealand, Avenue in the US and Evans in the UK. Those northern hemisphere acquisitions have increased the total addressable market for City Chic quite considerably.

City Chic is generating high levels of online sales growth and could take more market share through this channel.

The ASX share is still on the lookout for other potential acquisitions that it can turn into more profitable online-only operators.

City City had a strong first half of FY21, with sales rising 13.5% to $119 million and net profit after tax growing 24.8% to $13.1 million.

According to Commsec, the City Chic share price is trading at 23x FY23’s estimated earnings.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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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