CSL Ltd (ASX: CSL) shares have been one of the global success stories of the last 20 years, with the ASX-listed healthcare company expanding its international presence. But it's not the first ASX stock I'd want to invest in today for my portfolio.
CSL's expected growth has decreased in recent times due to headwinds in the US healthcare system and slower growth in other areas of its business.
I'm not sure how much profit growth CSL will be able to achieve in the next few years – I'm much more bullish about the ASX stock Temple & Webster Group Ltd (ASX: TPW).
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Strong growth outlook
The online retailer of homewares, furniture, and home improvement products has delivered a lot of growth over the last few years, and there are good prospects for future growth.
While its recent trading update wasn't strong enough for the market, the ASX stock has registered further sales progress in FY26. In the period of 1 July 2025 to 20 November 2025, total sales were up 18% year over year – most businesses would be happy with that, but it represented slower growth than a few months ago.
The business is gaining market share every year, and further adoption of online shopping by Australian consumers could help push sales even higher. The company had a 1.8% overall market share in FY23 and now has a market share of 2.7%.
Temple & Webster notes that Australia's furniture and homewares market only has an online penetration of 20%, compared to 29% in the UK and 35% in the US market. It has just started shipping products to New Zealand, which opens up another growth avenue for the business.
I'm particularly excited to see what the business can achieve with its home improvement segment, which continues to grow rapidly. In FY26 to date, home improvement revenue rose by 40% year over year.
The ASX stock is aiming for at least $1 billion of annual sales by FY28 at the latest.
Expecting higher profit margins
I believe the company's profit margins can continue to rise in the coming years, thanks to a combination of factors as it grows larger and more technologically advanced. Increasing profitability should help boost its underlying value.
Fixed costs as a percentage of revenue declined to 10.6% in FY25, down from 11.3% in FY24. Savings are primarily being driven by moderation in headcount growth, improved productivity through AI, and tech tools.
Around 80% of customer before and after-sales support interactions are now partially or fully handled by AI and technology.
But it's not just a cost-saving exercise; it's also doing things to help customers. For example, the company is also experimenting with personalised website experiences.
In terms of a near-term goal, while the business aims for an operating profit (EBITDA) margin of between 3% and 5% in FY26, I believe it can steadily rise higher in subsequent years. Time will tell how high the ASX stock's EBITDA margin can eventually climb.
Much better valuation
As the chart below shows, the Temple & Webster share price remains materially below its pre-AGM trading update level.
But, management is still confident about the long-term; the company's revenue continues to rise (including home improvement growth), it's expanding shipping to New Zealand, and margins could continue rising.
I think the ASX stock looks much more appealing than CSL after its fall, and I'm looking to buy Temple & Webster stock if it remains as low as it is now.
