Sure, everyone wants a bargain. But there is something to be said about buying ASX shares already on an upward curve.
It means demand for the stock is strong, which the purists would be loath to admit has a bigger direct influence on the share price than the business fundamentals.
If the stock has upwards momentum and the underlying company has excellent prospects, then you are covered on both bases.
The Elvest Fund this week named two such ASX shares that they continue to back:
Positive cash flow will come earlier than expected
The Life360 Inc (ASX: 360) share price has climbed a spectacular 53% since a 21 March trough.
The Elvest memo to clients attributed this climb to the latest financial update.
"Life360, a leading family tracking app provider, reported a solid 1QCY23 result," the Elvest analysts stated.
"Revenue was up 34% on higher paid subscriber numbers (+22%) as well as revenue per subscriber (+43%)."
Like many nascent technology companies, Life360 was notorious for burning through cash. But since last year it has successfully tried to meet market demands to operate in the black.
"Combined with cost cutting measures introduced in January, Life360 expects to reach positive free cash flow earlier than expected during the calendar year."
The Elvest team is not the only fan of the Californian software provider.
According to CMC Markets, all four analysts that currently cover the stock reckon it's a strong buy.
Pricing power feels so good while inflation rages
Lotteries reseller Jumbo Interactive Ltd (ASX: JIN) has enjoyed a 17.6% rise in its share price since the start of April.
Once again, the Elvest team thought the latest financial post helped drive investor interest.
"Digital lottery specialist Jumbo Interactive provided an updated FY23 outlook during the month," read the memo.
"Disciplined cost management was a highlight, made all the more important by a softer run of recent jackpot activity."
The business also has the ability to raise its prices to offset the impacts of inflation.
"Jumbo Interactive also announced pricing changes to be effected from late May 2023, which will benefit margins for FY24 and beyond," read the Elvest memo.
"Earnings estimates were upgraded accordingly, and the stock rallied off recent lows."
A nice bonus for those willing to buy Jumbo Interactive is that it returns a 2.9% dividend yield.
The wider professional community is also bullish on Jumbo Interactive.
Seven out of nine analysts surveyed on CMC Markets currently rate the stock as a buy.
