Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

2 ASX 200 shares to buy for growth

ASX 200 (ASX:XJO) shares are a good place to look for growth. I think there are two that could be worth buying today. 

ASX 200 (ASX: XJO) shares are a good place to look for growth. I think there are two that could be worth buying today.

Which ASX 200 shares are buys for growth?

In my opinion, the following ASX 200 shares offer quite a lot of growth potential over the coming years:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is an ASX 200 funds management business with around $100 billion of funds under management (FUM). Its strategy is to build an all-weather portfolio that performs well over the long term and doesn’t fall as much in the short term when there are market declines.

The Magellan share price has been falling recently as its main equity strategies have underperformed – but I think that’s just short term ‘noise’. Three months, or even six months, isn’t long enough to say that a manager has lost their spark. At a minimum, three years is normally a time period to judge an investor and their investments.

Besides, I think Magellan’s other growth areas look compelling. New investment bank Barrenjoey has hired an impressive group of people from UBS (and other places) to form a strong starting team and it’s already winning mandates. In 12 months from now, Barrenjoey could be generating a pleasing profit. The other investment in Guzman y Gomez, it also looks compelling with global growth potential.

I also think that sentiment could return when Magellan is finally successful at launching its retirement product for investors.

Looking at CommSec, the Magellan share price is valued at 19 times the estimated earnings for the 2021 financial year.

Kogan.com Ltd (ASX: KGN)

The ASX 200 e-commerce share has been growing substantially over the last few years. This difficult COVID-19 period in-particular has been boom times for online shopping.

E-commerce businesses have really good profit growth potential because of how scalable platform companies are. Once the website and logistics are sorted, quite a lot of the new revenue can fall straight to the profit lines. You can see this in effect in the latest Kogan.com report which showed whilst gross sales grew 97.4%, gross profit increased 126.2% to $112.9 million and net profit after tax (NPAT) soared 164.2%.

The ASX 200 share is not as strong Amazon.com, but I think the valuation (and dividend) make up for that. CommSec numbers suggest the Kogan.com share price is valued at around 20 times the estimated earnings for the 2021 financial year. That doesn’t seem a stretch at all.

Kogan.com can keep growing its core business with rising margins, it has a lot of growth potential in New Zealand with the Mighty Ape acquisition and there are plenty of other products or services that it could start selling online.

Any other ASX 200 shares to look at?

There are plenty of other ASX 200 shares that may be worth looking into such as Altium Limited (ASX: ALU), Collins Foods Ltd (ASX: CKF) and Brickworks Limited (ASX: BKW).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Magellan and Altium.
Skip to content