Why I think it's time to load up on these 2 ASX shares

2022 looks like a good year for buying assets.

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Key points

  • I like investing in ASX shares at lower prices, so both of these investments look more attractive
  • The VanEck Video Gaming and eSports ETF gives exposure to an attractive, growing industry
  • Adore Beauty is a growing e-commerce player and it has just launched its own private-label brand

This year looks like a good year to go hunting for ASX shares to buy in my opinion.

No one really knows what will happen next with share prices, the economy, or anything else of that nature.

However, as investors, it's probably a good idea to buy shares when the prices are at a lower price rather than at a higher price. That may seem obvious. But, when uncertainty increases, some investors suddenly don't want to buy assets at discounted prices.

But for me, it's times like this that make it a good time to buy ASX shares. I have been putting money to work in some of my old favourites as well as some new names.

At the current prices, I think there are plenty of opportunities. In my opinion, these two are looking good after their declines in 2022.

VanEck Video Gaming and eSports ETF (ASX: ESPO)

I think this is one of the most interesting exchange-traded funds (ETFs) on the ASX. It aims to give investors exposure to the global video gaming and e-sports sector.

In this portfolio are names like Nvidia, Activision Blizzard, Advanced Micro Devices, Tencent, Nintendo, Bandai Namco, Electronic Arts and Take-Two Interactive Software.

One of the main things that attracts me to this ETF is the solid underlying revenue growth. According to VanEck, e-sports revenue has grown by an average of 28% per year since 2015. The wider video gaming sector has seen average annual revenue growth of 12% per annum since 2015.

VanEck said:

E-sports reflect the convergence of entertainment, video gaming, sports and media businesses. With an active, engaged and relatively young demographic, the stage is set for sustainable long-term growth.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading ASX growth share in the beauty e-commerce space. It sells thousands of products from many different brands.

One of the attractions for me is the heavy fall of the Adore Beauty share price while revenue keeps growing. Since the beginning of 2022, Adore Beauty shares have dropped 65%. Yet, in the third quarter of FY22, Adore Beauty noted that its revenue was up 9% to $42.7 million, active customers was up 7% to 880,000, and returning customers increased 47%.

In my opinion, Adore Beauty's revenue could be more defensive than some investors are giving it credit for.

Adore Beauty CEO Tennealle O'Shannessy pointed out:

Beauty, especially skincare, is unique within the broader retail market and is resilient to economic challenges. Our products are used daily by customers, who consider these items essential and frequently re-purchase. The nature of premium beauty means our customers spend more as they mature on the platform, with returning customers typically contributing more than 70% of total revenue.

The company's app now accounts for more than 10% of revenue and continues to deliver "elevated" levels of engagement, conversion and average order values. I also think that its new private-label products could help the company's long-term profit margins.

The ASX share operates in a large and growing $11 billion market. So, ongoing investment in the business can help it tap into this long growth runway.

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 Activision Blizzard, Advanced Micro Devices, and Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited and Electronic Arts. The Motley Fool Australia has recommended Activision Blizzard, Adore Beauty Group Limited, Nvidia, and VanEck Vectors ETF Trust - VanEck Vectors Video Gaming and eSports ETF. 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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