Zip (ASX:Z1P) and this ASX share could have huge growth runways

These ASX shares could be destined for strong long term growth…

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When looking at long term investment options, it could be a good idea to look for companies that have long runways for growth.

With that in mind, listed below are two ASX shares which have been tipped to grow strongly over the next decade. Here’s what you need to know about them:

PointsBet Holdings Ltd (ASX: PBH)

PointsBet is a rapidly growing sports betting operator and iGaming provider, offering innovative sports and racing betting products and services direct to clients via its scalable cloud-based technology platform.

Since launching its first product in 2017, it has been onwards and upwards for PointsBet. Pleasingly, this trend is expected to continue for some time to come thanks to the growing popularity of mobile sports betting and its lucrative US operations.

In respect to the latter, Goldman Sachs notes that the US sports betting market is forecast to grow at a compound annual growth rate of 40% out to 2033. At that point, the broker estimates that the US market will be worth US$39 billion a year.

Goldman Sachs currently has a buy rating and $17.20 price target on its shares. This compares to the latest PointsBet share price of $13.50.

Zip Co Ltd (ASX: Z1P)

Another ASX growth share that has been tipped for strong long term growth is Zip. It is of course one of the world’s leading buy now pay later (BNPL) providers with operations across several continents.

This includes in the massive US market with its QuadPay business, where management notes that it has a $5 trillion market opportunity. In addition to this, the company has recently acquired its way into the European and Asian markets. Which, combined with its UK business, gives Zip a huge runway for growth. Especially given how the payment method us continuing to grow in popularity with consumers and merchants globally.

Citi currently has a buy rating and $10.90 price target on the company’s shares. This compares to the latest Zip share price of $8.23.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Zip wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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