ASX growth shares could be the perfect place to find some long-term opportunities in December 2021.
Businesses that are seeing really quick growth of revenue have the potential to become much bigger in the coming years.
I think that recent volatility of the ASX share market has opened up some really attractive opportunities:
Volpara Health Technologies Ltd (ASX: VHT)
The current Volpara share price is close to being the lowest it has been for three years apart from a couple of small periods (like the 2020 COVID crash).
Volpara is a healthcare tech company that provides software relating to breast screening. There is growing demand for this service and Volpara is working on its increasing its own, and the broader market’s focus on patient risk. It has a market share of around 34% in the US.
The company has an extremely high gross profit margin of around 91% and its revenue is growing significantly. HY22 revenue went up 30% to NZ$12.3 million – it was a rise of 38% in constant currency terms.
I think there’s a number of really good positives about Volpara’s future. Its average revenue per user (ARPU) can rise as it sells more of its services to clients, it’s planning to grow in lung cancer screening and there are plenty of geographical expansion opportunities such as Europe.
In my opinion, this could be one of the most promising small cap ASX growth shares.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This is a high-performing exchange-traded fund (ETF), which has the ingredients to be able to keep performing well over the long-term.
It’s offered by the provider VanEck, but the analysts choosing the shares for this ETF are from Morningstar.
Those analysts are looking for businesses that they believe have wide economic moats. In other words, ones that have very good competitive advantages and are expected to maintain (or grow) those advantages for many years to come.
But that’s just the shortlist of shares for the analysts to work with. The businesses only make it into the portfolio if they think that the businesses are good value.
At the end of November 2021, these were some of the biggest holdings within the ASX gr0wth share’s portfolio: Cheniere Energy, Microsoft, Salesforce.com, Tyler Technologies, Wells Fargo, Aspen Technology, Alphabet, Blackbaud, Corteva, Constellation Brands, Berkshire Hathaway and Amazon.
This investment strategy has performed well. Over the last five years it has returned an average of 19.8% per annum, outperforming the S&P 500 by more than 1.2% per annum. However, past performance is no guarantee of future performance.
