Despite good news surrounding COVID-19 vaccine distribution overseas, a full economic recovery may take longer than some originally expected.
With that being said, here are 3 ASX shares I think are likely to benefit from a gradual global economic recovery.
Tyro Payments
Tyro Payments Ltd (ASX: TYR) provides payment solutions to merchants and banking products to businesses in Australia. You might not know it, but you’ve more than likely come across a Tyro EFTPOS terminal when you’ve used your card to pay for something at a local cafe or store.
The Tyro share price has more or less moved sideways over the course of the year, hovering around $3.50 per share.
TYR share price chart
In its most recent trading update for the week ended 11 December, Tyro revealed it’s continued to grow its total transaction volume by 29% on the prior year. Despite the good news, the Tyro share price has continued to pull back over this last month.
I think Tyro would be a perfect beneficiary of a full economic recovery. As people move around and travel a bit more, Tyro should experience an uptick in revenue as its EFTPOS terminals are used more often.
Audinate
Audinate Group Ltd (ASX: AD8) is another ASX growth share that I believe should do quite well throughout an economic recovery.
Audinate is an Australian provider of professional digital audio networking technologies. Its flagship platform is called Dante, which enables the distribution of digital audio signals over local area networks (LAN) and essentially combines IT networking benefits to the professional audiovisual (AV) industry.
For a more detailed explanation of how its technology works, click here to read: Are Audinate shares a sound investment?
COVID-19 has brought the majority of the gig economy to a standstill. As a result, stadiums aren’t being fitted out with new sound gear and lecture halls have been empty.
I think the recovery might be slow on this one, as Audinate relies on the capital expenditure of other businesses – something which might not take priority during times of decreased cash flows.
Nonetheless, I think Audinate is definitely one for your ASX watchlist.
Woodside Petroleum
For something a bit different, I’m liking some of these oil producers on the ASX, such as Woodside Petroleum Limited (ASX: WPL), that should also be set to benefit from an economic recovery. The Woodside share price is currently sitting more than 30% below pre-COVID levels.
WPL share price chart
The share prices of oil producers are often highly correlated with the underlying oil price. Therefore, if your view is that the oil price will recover into next year, holding some of these companies may be a good way to play the recovery.
While COVID-19 is undoubtedly worse than ever at the moment in places overseas, some vaccines are looking promising, while oil demand in Europe has recently bounced back due to restrictions easing.
The bear case for oil seems to be that 2021 will not see a full recovery in the oil price, albeit still higher than in 2020. Even if this does in fact happen, I still see some decent upside in the Woodside share price as the huge accumulated glut of oil is gradually depleted.
