Experts currently have a very favourable opinion about some impressive ASX shares. May 2022 could be the month to jump on some of these stocks.
Businesses that are growing revenue and profit at a double-digit rate could be opportunities after their recent declines.
Here are two such buy-rated ASX shares:
REA Group Limited (ASX: REA)
REA Group claims to be the leading property portal business in Australia with realestate.com.au.
It also has several other property-related digital assets including realcommercial and flatmates as well as investments in a number of international sites in Asia and the US.
Since the start of 2022, the REA Group share price has fallen almost 25%.
The ASX share has been growing profit and is seeing a recovery in listing volumes. In the FY22 first half, the company reported an "exceptional" performance. Core operations saw revenue growth of 37% to $590 million and net profit after tax (NPAT) growth of 31% to $226 million.
Its US investment Move Inc saw revenue growth of 19%, while REA India revenue growth was 125%.
In the first half of FY22, national residential listings were up 17%. January 2022 saw national residential listings rise another 14% year on year.
REA Group is rated as a buy by the broker Morgan Stanley, with a price target of $178. That's an upside of around 40%.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a ASX healthcare technology share. It provides software for breast screening as well as administration tools for clinics.
The Volpara share price has fallen almost 20% in 2022.
The company has built up a market position in the US with coverage of 35.5% of women being screened at 31 March 2022.
This ASX share generates a large amount of its revenue from subscriptions through a software as a service (SaaS) model. Annual recurring revenue (ARR) is now around NZ$31.8 million. The quarter for the three months to 31 March 2022 showed subscription revenue growth of 39% to NZ$7.5 million, with SaaS client churn remaining "low".
While the company has a leading position in the US, it is expanding in other regions with contracts. It has signed a distribution deal with IMS Giotto in Italy. Multiple orders are in place, with the possibility of up to 100.
It has also signed its first deal in the Middle East with Cleveland Clinic Abu Dhabi, which was recently named the top hospital in the UAE.
The company has a very high gross profit margin. In the FY22 first half, its gross margin was 91.4%.
Volpara is working on growing its average revenue per user (ARPU) by selling more modules to clients. It is also working on its lung cancer screening opportunity.
It's rated as a buy by the broker Morgans with a price target of $1.94.
