I'd invest $10,000 into these excellent ASX shares for the long-term

I love finding ASX growth shares that have a compelling future with good potential earnings growth. I want to invest …

| More on:
A young well-dressed couple at a luxury resort celebrate successful life choices.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I love finding ASX growth shares that have a compelling future with good potential earnings growth.

I want to invest in businesses that can deliver appealing compounding of their profit. The longer the growth runway, the better.

Companies with a track record of growing operationally have shown they can be successful. They just need to keep going. I think a $10,000 investment in the two stocks below could beat the market. Here's why.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price has dropped more than 10% since 3 September, so I think this could be a good time to jump on the ASX retail stock.

Firstly, I like investing in good companies at lower prices. This company owns the Smiggle and Peter Alexander businesses, as well as other apparel brands and large stakes in ASX shares Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR). It has a good portfolio, in my opinion.

Second, Premier Investments is working on combining its apparel businesses (excluding Peter Alexander) with Myer, which could make a compelling combination. The remaining businesses would mean Premier Investments is of even higher quality overall, in my opinion.

Third, I like this business's global expansion prospects. It wants to grow Peter Alexander and Smiggle earnings overseas, which highlights the large total addressable market (TAM). Premier Investments plans to open multiple Peter Alexander stores in the United Kingdom over the next year, which is exciting because the population is much larger than Australia's.

Finally, the valuation is appealing to me because of how much international growth potential it has. According to the forecast on Commsec, the Premier Investments share price is valued at 22x FY25's estimated earnings.

Tuas Ltd (ASX: TUA)

It's rare to find an ASX share that's fairly early on with its growth journey.

Tuas is a Singapore telco that was spun out of TPG Telecom Ltd (ASX: TPG), and it already has reached 1 million subscribers in the city-state, and I think it has plenty of growth to go.

For starters, thanks to its low subscription prices, it could continue growing its mobile subscribers in Singapore at a strong rate in percentage terms.

The company may be able to grow its average revenue per user (ARPU) at a low single-digit rate, which could accelerate overall revenue growth and help offset any cost inflation in the next few years.

I'm also excited because Tuas is working on growing its presence in the broadband market. It only had 4,000 subscribers at the end of FY24, but the company notes there is strong consumer interest. Remember, it already has a customer base of 1 million mobile users it could potentially market to.

Pleasingly, the ASX share is demonstrating an ability to grow its profit margins. In FY24, its operating profit (EBITDA) margin improved from 36% to 42%.

There are a number of exciting markets surrounding Singapore that Tuas could expand into, such as Indonesia, Malaysia, and Thailand, which have much larger populations.

Motley Fool contributor Tristan Harrison has positions in Tuas. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A man looking at his laptop and thinking.
Retail Shares

Why this investing expert is cashing in some gains on Wesfarmers shares

The ASX 200 stock is up more than 27% over the past 12 months.

Read more »

A woman looks at a tablet device while in the aisles of a hardware style store amid stacked boxes on shelves representing Bunnings and the Wesfarmers share price
Retail Shares

Why today is a big day for Wesfarmers shares

Why is everyone talking about Wesfarmers shares today?

Read more »

Woman checking out new iPads.
Retail Shares

JB Hi-Fi share price lifts off on strong start to FY 2025

JB Hi-Fi held its AGM today and released its first quarter trading update.

Read more »

Two woman shopping and pointing at a bargain opportunity.
Retail Shares

Why I think this ASX 200 stock is a top buy right now

I’m bullish about this stock with global potential.

Read more »

Two happy woman looking at a tablet.
Retail Shares

Guess which ASX All Ords stock just reported a 21% revenue jump

The ASX All Ords stock has had a strong start to the new financial year.

Read more »

a fashionable older woman walks side by side with a stylish younger woman in a street setting as they both smile at something they are talking about.
Retail Shares

Why I'd start buying ASX retail shares now rather than waiting for 2025

Is it time to act before it’s too late?

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Retail Shares

Up 112% in a year, why is this ASX 300 stock rocketing again today?

Investors are sending this ASX 300 stock soaring again today. But why?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Retail Shares

What can owners of Wesfarmers shares expect from next week's AGM?

What may Wesfarmers say at the upcoming annual general meeting (AGM)?

Read more »