The ASX share market is throwing up a number of interesting investment opportunities right now. If I had $10,000 to invest today, there are several stocks I'd want to buy for my portfolio.
Now, I'd much rather invest in a growing business at a lower price than in an overpriced business at a 52-week high.
Here are three ASX shares that have delivered impressive growth, and I believe they could make a lot more profit in five years.
Temple & Webster Group Ltd (ASX: TPW)
This online retailer has approximately 200,000 homewares and furniture items listed on its website.
The Temple & Webster share price has dropped around 31% since March 2024, so it's a lot cheaper now, as shown in the chart below.
I'm impressed by the company's ability to keep growing at a strong pace. Sales from 1 January 2024 to 5 May 2024 were up 30% year over year, thanks to the growth of both repeat and first-time customers.
The company is expecting increased scale and technology, such as AI, to help significantly improve its margins in the coming years. AI is expected to help with its costs and efficiencies.
It's targeting at least $1 billion in sales within three to five years, thanks to tailwinds such as household adoption of online shopping.
Collins Foods Ltd (ASX: CKF)
Collins Foods is a significant franchisee of KFCs in Australia and Europe. The business recently reported its FY24 result, which showed revenue rose 10.4% and underlying net profit after tax (NPAT) increased 15.6% to $60 million. The company reduced its net debt and increased the annual dividend per share, so there was a lot to like about it.
One of the main reasons I'm bullish about Collins Foods is that it continues to grow its store network, adding scale to an already large presence in Australia, Germany, and the Netherlands. During FY24, the ASX share added nine new builds in Australia, taking the national network to 279, and it added 11 new restaurants in the Netherlands.
It plans to continue to add new restaurants in Australia and the Netherlands while also exploring KFC acquisition opportunities in existing markets "as well as complementary new geographies."
Brickworks Limited (ASX: BKW)
Brickworks has an impressive array of building products manufacturing businesses, which I think can benefit from eventual cuts in interest rates. It could make construction and renovation activities more appealing for households and developers.
The ASX share also has a significant portion of investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which owns a diversified portfolio of businesses and assets that are steadily growing the amount of annual cash flow they make. Soul Patts' dividend and portfolio value are growing over the long term, helping Brickworks.
I like Brickworks's property assets, including the joint venture industrial property trust it owns alongside Goodman Group (ASX: GMG). Properties are being built on excess land that Brickworks used to own, which is helping increase the value of that land and creating a new stream of annual rental profit. Goodman and Brickworks are planning to develop more property projects in the coming years.
