I believe that long-term investing is the way to go when it comes to ASX shares.
I'm going to talk about two businesses that could deliver great returns over time, particularly if their revenue and profit margins improve in the short-term and long-term.
While they're not two of the biggest businesses right now, I think they could grow significantly in the years ahead.
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Propel Funeral Partners Ltd (ASX: PFP)
Propel is the second-largest funeral operator on the ASX. It currently operates from 209 locations, including 41 cremation facilities and nine cemeteries.
The company said that the number of deaths is the most significant driver of revenue in the death care industry.
According to Propel, death volumes are expected to increased by 2.9% between 2026 to 2035 and then grow by a further 2.4% per year between 2036 to 2045. That's not the strongest growth rate in the world, but it's a very long-term tailwind which could mean two decades of industry growth, not just one decade.
The company has scale advantages compared to many others in the industry, and it could gain even more market share if it continues its acquisition strategy. In 2025, it had a market share of around 10%, and I think this can continue to grow in the coming years. For example, it recently announced three acquisitions that generate a total of $4 million of annual revenue.
According to the forecast on CMC Markets, the ASX share is trading at 23x FY26's estimated earnings, and it's projected to increase its earnings per share (EPS) by 4.8% in FY27 and pay a grossed-up dividend yield of 5.5%, including franking credits, at the time of writing.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a leading global retailer of affordable jewellery, which I believe has a very attractive future.
I think that all the business needs to do is keep expanding its global store network. The company already has at least one store in dozens of countries. As long as the company maintains positive comparable store growth, then its financials could continue to be compelling.
In the FY26 half-year result, Lovisa reported that its store count grew 15.5% year-over-year, underlying revenue grew 22.7% (supported by comparable revenue growth of 2.2%), and net profit grew 21.5%.
I think the business can continue to grow its store count in countries like Australia, the UK, France, Germany, Spain, the USA, Canada, South Africa and plenty more markets.
I don't know at what rate the company's store count will continue to grow, but I think it could continue to grow at high single digits (or better) for a number of years into the future.
According to Commsec's projections, the Lovisa share price is valued at 33x FY26's estimated earnings and is expected to see earnings grow by 27% in FY27.
