ASX Growth Stocks
If scouring through the ASX for growth stocks feels more like strolling around the Australian outback than sitting on a balcony overlooking the Gold Coast eating Queensland Wagyu, then you are at the right place.
EasyEquities have added some exceptional stocks to the platform and a couple of growth stocks listed on the Australian Securities Exchange (ASX) to consider. Growth stocks are usually small companies with exceptional earnings and revenue expectations way above the average growth of the market.
EasyResearch gives an overview of 2 ASX growth stocks worth looking at:
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Ansell Limited (ANN)
If you think the resurgence in COVID-19 infections could bring about another wave of demand for personal medical equipment, then the global safety company Ansell Limited is worth your time.
The company’s two business segments are Industrial and Healthcare which covers almost every industry from automotive to surgical. The company saw demand for personal protective equipment increase even before COVID-19 due to healthcare awareness and advancements in the medical field.
- Share Price: A$ 41.91
- P/E Ratio: 24.27x
- P/B Ratio: 2.72x
- Dividend: 1.57%
- 1-year return: 54.48%
Outlook - The coronavirus pandemic had a positive impact on demand for personal protective equipment, especially disposable gloves. Currently, the 7-year growth estimates for the disposable glove market sits around 11.2%. Ansell Limited also sees organic growth for FY21 in the double digits.
Fisher & Paykel Healthcare Corporation Limited (FPH) Foreign Exempt NZX
The company designs manufacture and markets medical devices and are a leader in manufacturing medical ventilators which was in high demand during the peak of the coronavirus pandemic.
Fisher & Paykel Healthcare Corp's products can be categorized into two groups, namely home care and hospital products with hospital products contributing to the bulk of the company's revenue. The mechanical ventilator market is estimated to expand at a compound annual growth rate of 3.0% over the next seven years.
- Share Price: A$ 35.53
- P/E Ratio: 71.61x
- P/B Ratio: 20.64x
- Dividend: 0.77%
- 1-year return: 90.04%
Outlook – The strategic planning for its 3rd manufacturing facility in Mexico is on track while the company sees FY21 revenue above estimates. The second wave of infections will likely see demand for ventilators pick up momentum around the globe which should translate in more growth in revenue for the company.
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Informed decisions
Both growth stocks performed very well over 2019 leading up to the coronavirus pandemic and just excelled during as demand outweighed supply. If the resurgence in new infections take hold of the global economy like we have seen earlier in the year, then these two growth stocks could be worth revisiting.
New to investing
and want to know more about Australian stocks?
Read: Aussie Aussie Aussie, Oi Oi Oi! and From zero to XERO Ltd (XRO)
Sources: EasyResearch, Ansell Limited, Fisher & Paykel Healthcare, Yahoo finance, MF & Co, Grand View Research, Bloomberg, Reuters, Investopedia.
Take note: stock data was taken on 03/11/2020 after the ASX market close.
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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
