Owning CSL Ltd (ASX: CSL) shares has been a wonderful investment over the long term. The CSL share price is up more than 300% in the last decade.
Investors who are heavily exposed to the healthcare giant may be interested in diversifying the growth part of some of their portfolio to different ASX growth stocks.
When a company grows so much, it can become a significant portion of the portfolio. Some investors may not want too much of their portfolio allocated to one business.
Healthcare can be a good industry to find growth opportunities, but I'm going to talk about two businesses that are benefiting from digitalisation and consumers going online.
There may be some more volatility this week, so I think we could be offered some very good value in the next few days, perhaps as early as today
REA Group Ltd (ASX: REA)
REA Group owns realestate.com.au, realcommercial.com.au, PropTrack, Mortgage Choice, and other Australian property-related businesses. It has also invested in international digital property portals in the United States, India, and other Asian countries.
The REA Group share price has drifted lower since the end of August, opening up an opportunity to buy at a better valuation.
I really like this company for a few key reasons. It's the clear market leader in Australia, which encourages more sellers to use the platform, and then more prospective buyers go on the site, continuing a pleasing cycle.
That excellent market position allows the business to regularly implement sizeable price increases for the advertisement prices. This can unlock a significant boost to profit because of the operating leverage inherent in a digital business where costs don't climb as quickly.
FY24 saw the overall net profit rise 24%, with an exciting 31% rise in revenue for REA India (to $103 million).
FY25 has started well, with underlying July listings up 2% year over year, which could help the ASX growth stock.
Temple & Webster Group Ltd (ASX: TPW)
As the chart below shows, the Temple & Webster share price has been down by double digits in the past six months despite the company's bigger-than-ever e-commerce business.
In the FY24 result, Temple & Webster reported that its revenue rose 26% to $498 million. In FY25 to 11 August, revenue was up another 26% year over year.
Considering the overall Australian homewares and furniture market declined 4% in FY24, according to Temple & Webster, I think the revenue growth shows that it continues to gain market share, and customers like the value and product styles on offer.
I'm also impressed by how the company's 'growth horizons' of business-to-business and home improvements are scaling rapidly, with revenue growth of 27% and 26% in FY24, respectively.
As time goes on, these divisions could play an important part in the company reaching the $1 billion annual sales goal in the next few years.
The business is utilising artificial intelligence to power a suite of tools, from product recommendations to live chat interactions with customers. This has already led to millions of dollars of cost-base savings and a conversion rate improvement of more than 10%.
The ASX growth stock expects its margins to significantly increase in the coming years, thanks to scale benefits and technology utilisation.
