2 ASX shares only just starting their growth

Psssst… do you want to get in early on a successful business? Here are a pair of stocks that one expert reckons has excellent prospects.

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Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

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Many investors find investing in growth stocks rewarding. Who can blame them — it's fun to sit back and see an ASX share in their portfolio multiply over the years.

But the trouble is finding them before everyone knows about them.

If everyone already knows a particular ASX share is a winner, the price will have already rocketed up from demand. It's basic efficient market theory.

Fortunately, there are plenty of experts who will let you know the shares they've bought that are in the early stages of life.

Maybe one could hitch a ride on one of these:

Step One, get some

Wilson Asset Management senior investment analyst Shaun Weick revealed that his fund holds Step One Clothing Ltd (ASX: STP), which is very early in its journey.

The company, known for its men's bamboo underwear, only listed on the ASX this month.

"We see some great growth opportunities for this business going forward, as they expand into other categories like women's and sports," Weick said in a Wilson video.

"It's also got geographic expansion coming down the road."

Indeed Step One has made no secret of its desire to intrude into the US market, to add to the established Australian and UK operations.

"If you look at the growth trajectory of the UK business, it's materially exceeding the Australian business at similar stages of its lifecycle," said Weick.

"Going forward, we think that's a great vote of confidence and provides a blueprint for the US business."

Management has retained 66% of the shares after the IPO, which Weick likes, just like the underpants.

"I can say with a strong vote of confidence I'm wearing them right now and they're extremely comfortable."

Step One shares started at an initial public offering price of $1.53 but closed Monday at $2.65.

Holidays that lockdowns can't stop

Weick is also pleased with his fund's position in Australian peer-to-peer marketplace Camplify Holdings Ltd (ASX: CHL).

The stock is also a recent entrant to the ASX, having listed at the end of June.

"Camplify is essentially the Airbnb Inc (NASDAQ: ABNB) of RVs and campervans," he said.

"We see a really strong growth trajectory, particularly as we.. thankfully we all get out there and take some holidays for the first time in probably 2 years."

According to Weick, pent-up demand is seeing vehicles booked out on Camplify for the next 3 to 4 months.

Those lucky enough to get in at the IPO issue price of $1.42 already have broad smiles, as Camplify shares closed Monday at $3.89.

The emergence of the COVID-19 Omicron variant did not dampen the enthusiasm for the shares, as they surged 3.73% higher for the day.

Motley Fool contributor Tony Yoo owns shares of Airbnb, Inc. and Camplify Holdings Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Camplify Holdings Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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