2 ASX shares that may be too good to ignore

Webjet is one of the ASX shares that may be an interesting idea.

| More on:
A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are quite a few ASX shares that may still be solid ideas to consider for the long-term, despite the strong run of the ASX share market.

Companies that are expecting to deliver a high level of earnings growth over the next few years may be able to positively surprise investors.

Businesses that are growing across the world may be even more compelling.

Here are two ASX shares to consider:

Webjet Limited (ASX: WEB)

Webjet is one of the leading global travel companies.

The company is still being impacted by COVID-19 effects, but it's expecting to return to profitability as domestic and international travel resumes.

With WebBeds, the business to business part of the company, it has an ongoing transformation strategy to emerge as the global number one provider.

Webjet believes it's going to achieve positive operating cashflow in the first half of FY22 after reducing costs and becoming more efficient.

Management think the company is on track to be at least 20% more cost-efficient at scale, suggesting a "significant" leverage opportunity. When markets normalise, Webjet says that WebBeds will have greater market share, lower costs and improved profitability.

Previously, Webjet was targeting a Webjet earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 50%. But now management think that it can reach a 62.5% margin because of those cost savings.

The ASX share also believes that it can take increasing domestic market share, with a growing presence by its online travel agency (OTA) segment. Its advantages include the accelerating structural shift to online and a "superior" technology offering. It now has a 11.3% market share, up from 5.6% in April 2020.

Australia's domestic and international borders are now opening up, opening the gates to more volume.

It's currently rated as a buy by UBS, with a price target of $6.85.

Doctor Care Anywhere Group PLC (ASX: DOC)

Doctor Care Anywhere is a UK-based telehealth business that wants to provide the best care possible through digitally-enabled, joined up, evidence-based pathways with its platform. It works with health insurers, healthcare providers and corporate customers.

The business continues to scale quickly.

Last month it released its quarterly numbers for the three months to 30 September 2021.

It said that revenue grew quarter on quarter by 21.6% to £5.8 million. This was driven by 30.6% quarter on quarter growth of consultations to 116,800. A record 41,000 patients had their first ever Doctor Care Anywhere consultation during the quarter, while more than 65% of consultations were delivered to returning patients.

There was also continued progress in joining up patient pathways, with 5,100 patients completing the secondary care diagnostic pathway – this was growth of 54.5%.

The ASX share is working on overseas expansion. It has completed the acquisition of Australian tele-health and tele-mental provider, GP2U Telehealth.

Doctor Care Anywhere has also entered the self-pay market in the Republic of Ireland through channel partner Boots.

Management expect that the company can grow its FY21 revenue by at least 100% compared to FY22. Its financial year lines up with the calendar year.

Doctor Care Anywhere says that not only is its solution more convenient for patients, but it is also demonstrating value for doctors and insurers by removing inefficiencies and reducing costs throughout the patient journey, The company is expecting higher profit margins as the pandemic effects ease on the UK clinical workforce.

Taking steps to improve profit margins above pre-COVID levels remains a "key focus" for the company.

Motley Fool contributor 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 and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares
Growth Shares

Goldman Sachs says these ASX growth shares are destined for big things

There's a reason Goldman has slapped buy ratings on these shares.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Growth Shares

A hot ASX stock with 'multiple catalysts' looming is 8% down. Time to buy

The Blackwattle team is still bullish on these pharmaceutical shares despite a recent sell-off.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX 200 growth shares to buy with 'immense opportunity' ahead

This pair is already going gangbusters, but imagine what would happen when interest rates flatten out then come down.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

Brokers say these explosive ASX growth shares are buys with massive upside

Big returns could be on the cards for owners of these shares.

Read more »

A couple are happy sitting on their yacht.
Growth Shares

2 ASX shares with millionaire-maker potential

Analysts see big returns ahead for a couple of growing ASX shares.

Read more »

Man with rocket wings which have flames coming out of them.
Growth Shares

2 ASX stock picks with explosive potential

In return for more risk, you could buy some stocks that have catalysts just lined up over the next few…

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Analysts tip 10% to 30% returns for these ASX growth shares in 2024

These growth shares could give your portfolio a nice boost this year.

Read more »

A woman's hair is blown back and her face is in shock at this big news.
Growth Shares

These top ASX growth shares can rise 30% to 40%

Goldman Sachs thinks these shares can deliver strong returns for investors.

Read more »