The lower the valuation of stocks go in April, the stronger the long-term returns could be. There are a few impressive ASX shares investments that could be excellent buys.
I think the best businesses to buy are ones that have strong compounding potential of the earnings. Some companies are already large and aren't likely to grow earnings strongly, while others could multiply their own profit over the next several years.
I'm excited by the long-term trajectory of the investments below.
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Nick Scali Ltd (ASX: NCK)
Nick Scali is a leading furniture retailer in Australia (and New Zealand) with a large store network. In recent years, it has acquired both Plush in Australia and Fabb Furniture in the UK, giving it more avenues for earnings growth.
The ASX share is exposed to consumer spending, so there are certainly cycles in how much demand there is for furniture. But, I think Nick Scali is one of the best operators in the furniture space, for example with its high return on equity (ROE) and strong gross profit margin.
I don't know how consumer demand will perform in the next several months, but it's clear that the Nick Scali share price is already down 35% this year. I think that the size of the decline makes this a great time to invest.
I'm particularly excited by the potential of the company to bring its Nick Scali products (and margins) to the UK business, expanding its UK store network, and paying a good dividend.
According to CMC Invest, the Nick Scali share price is currently trading at 17x FY26's estimated earnings, at the time of writing.
Tuas Ltd (ASX: TUA)
I view Tuas as one of the most underrated ASX growth shares. I'm going to highlight a few exciting elements of the business.
Firstly, it's a fast-growing Singaporean business which is rapidly gaining market share.
The company reported that in the first six months of FY26, revenue increased 26% to $91.9 million and underlying operating profit (EBITDA) climbed by 27%.
This revenue growth was largely driven by a 21.7% rise in the number of active mobile subscribers to 1.4 million. Broadband subscribers grew by approximately 32,000 to 46,133 as it started to gain traction.
Another big positive is that its underlying profit is improving, as shown by EBITDA margin increasing to 46%, up from 45%. That means each new revenue dollar this year is more profitable than last year, which bodes well for net profit growth to accelerate in the coming years.
I'm also excited by the potential of Tuas merging with M1, one of its main smaller rivals in Singapore, giving the business a significant boost in scale benefits and profit.
In five years, I think the ASX share could be a much bigger business as it wins more subscribers thanks to its focus on offering value. Additionally, expansion into another country by Tuas would significantly improve its growth prospects.
