Are these 2 impressive ASX shares buys in January 2022?

Are these two impressive ASX shares worth looking at this month?

| More on:
stock market gaining

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 some ASX shares that are managing to demonstrate high levels of growth right now, despite the high levels of disruption of COVID-19.

Businesses that are producing a higher level of revenue growth may be able to achieve more earnings growth over the longer-term. Lots of investors do like to focus on the profit as a way to value a share price.

With that in mind, here are two ASX shares that are seeing growth:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a large pathology business that is currently involved in processing COVID-19 PCR tests. It has operations in Australia, New Zealand, Europe and North America.

In the first four months of FY22 to 31 October 2021, before Omicron's huge surge occurred, Sonic's revenue was up 5% to $3.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) had increased 16% to $991 million.

Morgans currently rates Sonic Healthcare as a buy, with a price target of $50.72. It recently increased the price target to above $50 after the high levels of Omicron testing that the ASX share is seemingly doing.

The broker currently rates the Sonic share price as a buy and values it at 16x FY22's estimated earnings.

Morgans also notes the recent ProPath acquisition, which was described as a high-quality, medically-led anatomical pathology company based in Dallas, Texas. It has annual revenue of around US$110 million. This is a "very significant additional step" in the ongoing development of Sonic's anatomical pathology and clinical laboratory operations in the US.

Pointsbet Holdings Ltd (ASX: PBH)

For readers that haven't heard of Pointsbet before, it's a corporate bookmaker with operations in Australia, the US, Canada and Ireland.

Pointsbet has developed a wagering platform where it can give clients sports and racing wagering products, advance deposit wagering on racing (ADW) and iGaming.

It's seeing rapid growth, particularly in the US. In the first quarter of FY22, it saw overall turnover growth of 42% to $979.9 million, with US turnover growth of 112% to $348.6 million.

The ASX share is seeing rapid growth of its 'net win'. In the first quarter of FY22, the overall net win increased 76% to $67.3 million and the US net win soared 307% to $12.5 million. New Jersey and Illinois were predominately responsible for the US net win figure.

Both the US and Australian divisions of the business are seeing high growth of the number of cash active clients (being someone who has placed a cash bet in the last 12 months). At 30 September 2021, Australian clients were up 79% year on year to 222,682 and US clients were up 367% to 185,880.

Credit Suisse currently rates Pointsbet as a buy, with a price target of $12.80. That's more than 80% higher than where it is right now.

The ASX share continues to expand geographically in the US. The company's online offering and mobile sports betting is now live in Virginia.

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 and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sonic Healthcare Limited. 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 happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »