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Aussie Growth Stocks taking the fight to COVID-19

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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.

 

AnsellChart

 

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.

 

FPH Chart

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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.

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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

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and GT247.com do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and GT247.com (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.The value of a financial product can go down, as well as up, due to changes in the value of the underlying investments. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. These products are not guaranteed. Examples and/or graphs are for illustrative purposes only.