The two ASX shares in this article could be the best ones to think about right now. They have long-term growth potential and may be at a good price:
Redbubble Ltd (ASX: RBL)
Redbubble is an e-commerce ASX share. It’s involved in providing customers with artist-designed products. Redbubble owns two websites – Redbubble.com and TeePublic.com.
The company has seen a large increase in global consumer interest in buying products online that offer creativity, expression and show a unique design.
Despite the rapid scaling of the business, the Redbubble share price is actually down by 44% over the last six months. The current price presents a much better entry price for investors.
The third quarter of FY21 showed good progress of the business. Marketplace revenue grew 54% to $103.4 million, gross profit went up 55% to $39.8 million and EBIT (EBIT explained) rose 91% to a loss of $0.9 million. It’s seasonal, which is why that quarter was a loss – EBIT for the nine months to March 2021 was $41 million (up from a loss of $12 million over the prior corresponding period).
The ASX share believes it can invest heavily over the coming years to reach $1.25 billion of marketplace revenue and then achieve higher profit margins from there.
If Redbubble can achieve its lofty goals, then it could be a much bigger business by 2025 with much stronger profit margin potential.
Betashares Global Quality Leaders ETF (ASX: QLTY)
This is one of my favourite exchange-traded funds (ETFs).
When it comes to investing in ETFs, I personally like to look for options that provide global diversification, could make good returns and have a reasonably low management cost.
The annual fee is 0.35%, which is pretty low compared to plenty of other ETFs.
In terms of the potential to make good returns, the ASX share is only invested in high quality businesses. That’s measured by ranking highly on return on equity, debt-to-capital, cash flow generation ability and earnings stability. When you put those metrics together, it leaves a group of quality businesses that performed very nicely.
Since inception in November 2018, Betashares Global Quality Leaders ETF has produced net returns of an average of 21.3% per year. But, as the saying goes, past performance is no indicator of future performance.
It’s globally diversified, with only 62% of the portfolio based in the US (and a lot of those businesses making international profit). The rest of the portfolio is invested across the world in countries like Japan, Switzerland, Hong Kong, Denmark, France, the UK, Germany and so on.
There are a total of 150 positions, with the biggest being Adobe, Nvidia, Accenture, Advanced Micro Devices, Intuit, AIA and Keyene.
