Why I think these 2 ASX shares are ideal for growth investors

This current volatile period could be a great time to go hunting for compelling businesses with strong growth potential.

Key points
  • In my opinion, the lower prices we’re seeing are too good to ignore now
  • Baby Bunting is one of my preferred ASX retail shares – it’s growing in all the right ways
  • The underlying portfolio of Betashares Nasdaq 100 ETF is full of quality global tech shares

The ASX share market is seeing a lot of volatility right now. It's painful, but for investors wanting to put their money to work, it could be a good time to consider leading ASX growth shares.

Investors put a lot of effort into finding the right assets to buy, researching all the metrics such as profits and the health of the balance sheet. But I think buying businesses at a good price is just as important.

We are being presented with a wide range of assets at lower prices now. So, I think this is a good time to be investing. It's impossible to say whether we've seen the bottom of the plunge yet, but I do believe it's an opportune time to go looking for ASX growth shares like my own two picks below.

The hands of three people are cupped around soil holding three small seedling plants that are grouped together in the centre of the shot with the arms of the people extending into the edges of the picture representing ASX growth shares and it being a good time to buy for future gains

Image source: Getty Images

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) that gives investors exposure to many of the world's biggest and strongest technology businesses.

Businesses like Apple, Alphabet and Microsoft are very integrated into many people's work or home lives and I can't see that changing any time soon. I'm not sure how a challenger would be able to dislodge Google Search, YouTube, or Microsoft Office. iPhones seem to be here to stay, too, and so on.

There is a whole range of leading businesses in this portfolio such as Amazon, Nvidia, Meta Platforms, Fortinet, Costco, Moderna, PayPal and Adobe.

As a group, I think this ETF has quality holdings and I think collectively they can keep doing well thanks to their leading market positions. To 31 May 2022, the prior five years showed an average return per annum of 18%. But bear in mind past performance isn't necessarily a reliable indicator of future performance.

After the approximate 30% fall in value of the NDQ ETF, I think this group of businesses looks even more attractive.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a leading ASX retail share that sells baby and infant products. Some of the things it sells include prams, car seats, furniture, clothes, toys, and so on.

In my opinion, this ASX growth share has plenty of growth potential. It's already achieving some of the things I like to see from retailers.

The FY22 half-year result showed that total sales increased by 10% to $239.1 million, which was good growth. The company also displayed an improved profit margin, allowing the statutory net profit after tax (NPAT) to rise by 12.2% to $8.1 million.

I think the business can grow in a number of ways. It's planning to expand its store network from 64 to 100 in Australia over time. It's also planning to build a store network in New Zealand as well.

The company can continue to grow its online sales, partly thanks to its loyalty program and also expanding its product range. In the six weeks to 9 February 2022, Baby Bunting said its online sales growth was 30%, showing good ongoing progress.

Management is also assessing the $5.1 billion baby goods market for future long-term growth opportunities, relative to its current $2.5 billion addressable market.

A bonus is the (trailing) grossed-up dividend yield of 5.3%, which adds to total returns.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Microsoft, Nvidia, and PayPal Holdings. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Moderna Inc. and has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Baby Bunting, Nvidia, and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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