For investors with a long-term mindset, ASX growth shares can be some of the most rewarding opportunities out there. The key is finding shares with competitive advantages, strong market positions, and plenty of runway to expand earnings.
With that in mind, here are three ASX growth shares that brokers believes could be smart buys to hold for the years ahead.
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WiseTech Global Ltd (ASX: WTC)
The first ASX growth share to look at is WiseTech. It has grown into a global leader in logistics software, with its CargoWise platform now used by freight forwarders and transport companies across the world. Its competitive edge comes from the depth and complexity of its product — making it very hard for customers to switch once embedded.
The company continues to deliver strong earnings growth, backed by recurring subscription revenues and margin expansion. With global trade volumes still rising and supply chains becoming more complex, WiseTech is well placed to compound growth for many years to come. Especially after recent acquisitions strengthened its offering and cemented its leadership position.
Morgans remains positive on the company. In response to last month's results, it put a buy rating and $127.60 price target on its shares.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne is a standout performer in the enterprise software space, providing mission-critical systems to governments, universities, and corporates. Its shift to a software-as-a-service model has been a huge success, locking in sticky recurring revenue and improving profitability.
The company has a long history of consistent earnings growth and dividend increases, making it one of the ASX's most reliable growth shares. And as it expands further in international markets, TechnologyOne's addressable market will only get larger.
UBS is positive on the tech star and has a buy rating and $42.20 price target on its shares.
ResMed Inc. (ASX: RMD)
ResMed could be another ASX growth share to buy and hold. It is one of Australia's global champions, dominating the market for sleep apnoea devices and masks. With over a billion people worldwide estimated to be suffering from sleep and respiratory conditions, the company has an enormous addressable market.
Recent results showed ResMed's ability to pair revenue growth with margin expansion, as efficiencies drive profits higher. Its pipeline of new products and push into digital health add further long-term growth options. For investors looking for a healthcare stock with both defensive and growth characteristics, ResMed is hard to look beyond.
Macquarie is bullish on this ASX growth share and has an outperform rating and $48.60 price target on its shares.
