3 Best ASX Growth Stocks Considered As Buys
The ASX 200 ends slightly higher adding 0.7% for the week. The Australian benchmark remained little changed amid a mixed session on Friday. The index posted 0.7% for the third week of consecutive gains as market participants evaluate a slew of domestic quarterly meetings. However, a pullback in commodity prices dragged on miners and energy companies.
Our List of ASX Growth Stocks To Grow Your Investment Portfolio
As the market lightly rebound, we have selected three stocks that can contribute to growing your portfolio:
PointsBet Holdings Ltd (ASX: PBH)
The first one is PointsBet. Pointsbet is a licensed corporate bookmaker with operations in Australia and the United States. The company has developed a scalable cloud-based wagering platform through which it offers its clients sports and racing wagering products. What is good about the company, is that it had been appointed as an Official Sports Betting Partner of the NHL. PointsBet derives revenue from the Australia segment which includes revenue from sports and race betting services provided to Australian customers.
At the time of writing, the PBH share price is up by 1.14% to $10.62 per share. Despite the broad market remaining quite neutral, PointsBet is doing quite well. What exactly is driving the price higher? The company reported that PointsBet Canada has entered into an agreement to become the exclusive sports betting partner of Curling Canada. PointsBet Canada is a 100% owned subsidiary of PointsBet Holdings. However, this is non-price sensitive news, unlikely to have a material impact on the PointsBet share price.
According to the release, more than 13 million viewers tune in to Curling Canada’s events every season. That ranks it among the highest-rated sports programming in the country. More importantly, the agreement includes complete category exclusivity covering the company’s Sports Book and Online Casino for all Curling Canada event broadcasts.
The PointsBet share price has struggled so far this year, down 7.85% year to date. That compares to a gain of 11.9% posted by the ASX 200. However, PointsBet shares are up by about 7.9% over the past month.
Breville Group (ASX: BRG)
Breville is a well-known Australian designer and manufacturer of a wide range of small electrical appliances. Products that Breville sells are blenders, coffee machines, juicers, and mixers. Today, Breville-designed products are sold in more than 30 countries across the globe. Along with Breville, the group owns and operates other brands including Sage, Kambrook, PolyScience, and Aquaport.
Breville has been growing at a consistently solid rate for the last decade and looks well-placed to continue this trend over the next decade. This is thanks to the popularity of its brands. The company is also expanding internationally through acquisitions along with favourable consumer trends. What set Breville ahead is its continued investment in R&D.
Breville share prices are quite stable. BRG shares did relatively well year-to-date returning more than 15%. As of the time of writing, Breville’s price action remains in consolidation in the $29 – $30 range. This can be an opportunity to buy some BRG shares before the upside resume.
IDP Education Ltd (ASX: IEL)
IDP Education is a leading player in international education services. The company is helping international students study in English-speaking countries. IDP also co-owns the International English Language Testing System (IELTS), the world’s most popular high stakes English language test.
The company has offices in 32 countries around the world. This language testing and student placement firm has been recently tipped as hot stock to buy by a few analysts. While we acknowledge that the immediate term is quite volatile due to the pandemic. In the long run, we see in IDP considerable growth potential. Hence, we forecast a substantial three-year CAGR above 65% for its EPS. Indeed, this is in anticipation of a rebound after a tumultuous FY21. Thus, the year was completely impacted by COVID-19, whereas half of FY20 was unaffected by COVID-19. IDP Education’s FY21 net profit was down 42% to $39.5 million.
In contrast with FY21, the long-term growth opportunity for IEL is compelling. Indeed, the company is reinvesting in digital capability. Consequently, that will increase IDP’s competitive advantage and strengthen its relationship with tertiary education institution clients.
We estimate IEL to have less than 5% market share of the Canada and UK markets. Therefore, there is a significant opportunity to gain share in a highly fragmented and under-penetrated market.