If I were looking to buy two ASX growth shares next week, then there are two that I’ve got my eyes.
I believe that growth shares are probably going to be the best way generate longer-term. Compound growth over time is a very strong financial force that can help growth wealth.
With that in mind, I think the below two ASX shares are good growth candidates:
L1 Long Short Fund Ltd (ASX: LSF)
This is a listed investment company (LIC). The idea behind LICs is that they invest into shares on shareholders’ behalf. The L1 Long Short Fund has an impressive longer-term performance, though it had a bit of a rough time after listing.
The LIC’s average return per year over the last three years has been an average of 21% net of fees. Since the strategy’s inception in September 2014, it has seen an average return per year of 23.3% net of fees.
L1 Long Short Fund invests in shares and it is also shorts them as well.
Examples of recent investments include Star Entertainment Group Ltd (ASX: SGR), Downer EDI Limited (ASX: DOW) and QBE Insurance Group Ltd (ASX: QBE).
The ASX growth share is currently at a discount of more than 13% to its net tangible assets (NTA), its underlying value. That looks good to me.
Volpara Health Technologies Ltd (ASX: VHT)
In my opinion, Volpara is one of the most compelling ASX healthcare growth shares around. I believe the breast screening tech share has a lot to offer patients and medical professionals, particularly with the growing focus on risk for patients.
It has an exceptionally high gross profit margin of around 91%, which keeps creeping higher.
Volpara is also growing its revenue at a very nice rate. FY21 saw revenue increase 57% to NZ$19.7 million. The company’s market share, product offering and annual recurring revenue (ARR) continue to grow. At the end of the first quarter of FY22, ARR had risen to NZ$27.8 million. FY22 is seemingly going to show another good year of growth for the business. The company continues to see growth in its average revenue per user (ARPU) as well.
On top of that, there is growth in the idea that lung cancer screening can play an important role in Volpara’s future in the same way that it has built a strong market share in breast cancer screening. The ASX growth share recently announced two partnerships in the lung space which management said could be as compelling as Volpara is in the breast space right now.
