2 rocketing ASX shares you need to think about getting on board

Just because a stock has surged already doesn't mean it can't do so in the future.

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Some people get a bit funny about buying ASX shares that have already risen significantly.

Their logic is that if it's already soared, then the winnings are past it.

But this is flawed reasoning, not based on any fact.

Stocks do not have any memory. They don't care whether they have headed up or down in the past.

All that matters are the prospects of the underlying business, and how attractive that looks to investors.

Keeping this in mind, here are two surging ASX shares that professional investors are recommending as buys right now:

Wheeling and dealing with an American giant

Generation Development Group Ltd (ASX: GDG) is not a name often heard in the financial media, but Novus Capital stock broker John Edwards is bullish on the life insurance provider.

"The recent move by GDG to partner with MetLife Inc (NYSE: MET), one of the biggest insurance companies in the world, brings GDG's new LifeIncome annuities product into sharp focus," Edwards told The Bull.

"GDG's annuities product has been strengthened after an external quality of advice review was seen as positive."

The company can also sell its product to industry superannuation funds, which bolsters member retention for those clients.

The market has been taking notice of Generation's hot potential, sending the share price more than 65% higher since April.

"Total funds under management stood at $2.928 billion in December 2023, up 24% on the previous corresponding period."

Edwards has a share price target of $3, which is a tidy 56% upside from the current valuation.

Making hay while rivals exit the industry

After years in the wilderness, is 'buy now, pay later' back in vogue?

If the Zip Co Ltd (ASX: ZIP) share price is anything to go by, it is.

The finance stock has climbed a jaw-dropping 226% since early October.

BW Equities equities salesperson Tom Bleakley noted the impressive numbers coming out of the business.

"The company delivered a strong 2024 second quarter result. Revenue of $225.6 million was up 26.1% on the prior corresponding period. 

"The revenue margin improved to 8.2% in response to competitors leaving the industry."

For him, Zip shares are a buy because the BNPL industry is set to boom as the world recovers from rising interest rates and cost-of-living pressures.

"Zip is a growth story leveraged to a relatively strong consumer economy."

Motley Fool contributor Tony Yoo 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 Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. 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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