2 High Performing ASX Growth Stocks Considered As Buys
Today, the collapse in the price of iron ore has dragged the ASX 200 down slightly for the week. This offset gains from several blue-chip stocks.
The Australian index fell by 2.9 points to 7,403.7 this week. Thus, with Friday’s 56.5 points loss weighing heavily after a strong start to the week.
Our List of top ASX 200 stocks to Buy in September 2021
The recent broad market correction can be an opportunity to load up some stocks that we believe will not stay cheap for long. We have found two stocks to buy right now:
REA GROUP LIMITED (ASX: REA)
If you’re in quest of growth stocks, then you may want to look at REA Group. It is a leading provider of property and property-related services via websites and mobile apps. They operate across Australia and Asia.
REA is best-known for its realestate.com.au website which is dominating the ANZ market. So much so, during FY21, the company revealed that 12.6 million people visited its website each month on average. This led to a 35% increase in average monthly visits to 121.9 million, which was more than three times that of its nearest competitor.
REA’s impressive performance brought a 13% increase in its revenue to $928 million. EBITDA jumped by 19% to $565 million. FY21 results were well ahead of expectations.
Looking forward, REA exhibits a dominant market position. We are convinced that the company is well-positioned ahead for growth. Hence, there is a thriving housing market. Plus, REA is on the watch for new acquisitions and to develop new revenue streams. We like this stock.
ooH!Media Ltd (ASX: OML)
OML is another attractive one. We think that their share price had a bit of a rally post-result. Although, this is a post-COVID reopening play that you could add to your portfolio.
Outdoor advertising has been hit very hard during the peak of the pandemic. particularly for OoH!Media. Hence, OML has big exposure to airports with its billboards. Thus, that has been very challenging for them, but now the company has a very strong balance sheet. We have seen that the advertising has picked up significantly across TV, radio, and across pretty much every medium aside from outdoor.
In our view, we see the outdoor as a premium asset in the media. It is a traditional media category. Therefore, it will return sharply. We have seen that when domestic travel picked up before the latest lockdown. We saw those numbers pick up significantly.
In short, we think that this company will rip as soon as all the travelling, even domestic travel, starts opening. Consequently, we believe OML earnings are well-placed to get back on track.
Moreover, a great thing is that the outdoor market has gone through quite a significant consolidation. OML now is the largest player in that space. It is trading at the cheapest, compared to its global peers. Just on that basis, we really think that it is not going to remain that cheap for a while.