Some ASX shares could be really good ideas to look at right now.
Share prices and profit outlooks are always changing, so different investments might seem like opportunities at different times.
Sonic Healthcare Ltd (ASX: SHL)
Sonic is one of the world’s largest healthcare businesses in the pathology space. It’s operating in a number of different countries including USA, Germany, Australia, the UK, Ireland, Switzerland, Belgium and New Zealand.
It has grown a lot over the last two decades. But the last 15 months has seen revenue rise and profit explode.
Sonic’s COVID-19 testing capability continues to play an important role in pandemic control. At the time of the FY21 half-year result, it had conducted more than 18 million COVID-19 PCR tests.
The business has been able to utilise its existing infrastructure, laboratories and so on to provide the testing services.
In the first half of FY21, revenue grew 33% to $4.4 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 89% to $1.3 billion and net profit after tax (NPAT) grew 166% to $678 million.
Not only does Sonic think that COVID-19 testing is going to continue for the foreseeable future, there’s also the potential for growing demand for COVID-19 immunity testing.
In terms of the outlook, Sonic said there are increasing acquisition, contract and joint venture growth opportunities. This growth potential could be supported by a “very strong” balance sheet.
The ASX share has pointed out that its geographical diversification gives it more opportunities for expansion. Management said the underlying healthcare growth drivers are strong and unchanged.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
This exchange-traded fund (ETF) is invested in some of the world’s leading companies involved in video game development, eSports, and related hardware and software globally.
Almost two thirds of the portfolio is invested in ‘entertainment’, like video game creators. But there are other sectors in the portfolio like semiconductors, semiconductor equipment, video game accessories and so on.
There are 25 holdings in the portfolio, with businesses such as Nvidia, Tencent, Nintendo, Bandai Namco, Zynga, Activision Blizzard and Ubisoft in the mix.
VanEck says e-sports reflects the convergence of entertainment, video gaming, sports and media businesses. With an active, engaged and relatively young demographic, the “stage is set for sustainable long-term growth”.
eSports revenue has grown by an average of 28% per annum since 2015. It’s benefiting from game publisher fees, media rights, merchandise, ticket sales and advertising.
The Asia Pacific region is estimated to have generated game revenue of US$78.4 billion in 2020, accounting for almost half of the global games market.
VanEck says another reason to consider this investment is that it provides technology diversification away from the typical companies of Apple, Amazon, Facebook, Google and Microsoft.