Running out of ASX share ideas? Here are 3 ASX growth shares to consider adding to your watchlist in December or for 2021.
Aussie Broadband
Aussie Broadband Ltd (ASX: ABB) is currently Australia’s fifth-biggest provider of NBN services with more than 300,000 residential and business customers across the country.
Its primary service is NBN retail, however, it also offers services across VoIP (Voice over Internet Protocol), mobile plans and entertainment bundles through a partnership with Fetch TV.
Aussie Broadband is definitely one for the watchlist but I’m not completely sure if shares are a buy today. Why? Shares were initially offered to institutional investors and customers at $1 per share, but have since doubled to their current levels at around $2.10. I think it would be worth keeping your eyes on these shares and seeing if they pull back a bit from here.
Valuation aside, Aussie Broadband’s unique selling point is its award-winning customer service experience. Without mentioning any names, customer service really does seem to be the number-one complaint you hear regarding other internet service providers. I think the negative reputation amongst competitors could last a long time, which could create a pretty sustainable competitive advantage for Aussie Broadband at least in the short to medium term.
Aristocrat Leisure
Aristocrat Leisure Limited (ASX: ALL) is a leading casino gaming provider and publisher that operates across Australia, New Zealand, the Americas and other countries. The Aristocrat share price has made a slow and steady recovery since its March lows and currently trades at a 15% discount to pre-COVID levels.
What I find interesting is that the Aristocrat share price has made nearly a full recovery despite its land-based segment (e.g. pokies) still significantly underperforming. Part of the reasoning behind this is that the company was bolstered by its digital arm, which saw a 29% increase in revenue in FY20.
Whether a full recovery seems to have already been priced into the Aristocrat share price I’m not completely sure. Many analysts are predicting a bounce-back in Aristocrat’s land-based segment. I believe that this, combined with further growth in its digital segment, could result in some significant earnings growth in future years. It’s one to watch.
People Infrastructure
People Infrastructure Ltd (ASX: PPE) is a leading workforce management company that was founded in 1996 and listed on the ASX in 2017. I know services businesses aren’t typically the sexiest compared to tech or cloud computing shares, but I think what makes this one interesting is the sectors People Infrastructure operates in.
People Infrastructure mainly services the healthcare and IT industry. These are both particularly high growth sectors, with fundamental drivers that should provide a sustainable tailwind in demand for its services moving forward.
PPE has multiple nursing businesses that provide nursing staff to Queensland public hospitals, private hospitals and residential care operators. There will most likely be a need for these sorts of services and revenues from reliable sources like the NDIS and private insurance providers should result in some sticky cashflows.
To learn more about People Infrastructure, check out this article: Why People Infrastructure is one ASX share to watch closely.