October could be the right time to look at ASX shares that have long-term growth prospects.
The market may be worried about things like interest rates, the US and so on, but each of these things seem like issues that will be sorted out one or another.
The two ASX share investments I’m going to talk about have growth prospects that go beyond the next year or two. Lower share prices make me think this is a good time to look at these opportunities.
Betashares Global Cybersecurity ETF (ASX: HACK)
Want to be invested in the global cybersecurity sector? Well, you easily can with this exchange-traded fund (ETF).
It provides exposure to 33 holdings within the portfolio, which are all names that are focused on cybersecurity in some way. Some of them are major global names including Infosys Ltd (NSE: INFY), Fortinet Inc (NASDAQ: FTNT), Palo Alto Networks Inc (NASDAQ: PANW), Cisco Systems Inc (NASDAQ: CSCO), Broadcom Inc (NASDAQ: AVGO), Splunk Inc (NASDAQ: SPLK) and Akamai Technologies, Inc. (NASDAQ: AKAM).
BetaShares, the manager of this ETF, notes that Australian investors currently have few local options on the ASX share market for gaining exposure to the fast-growing cybersecurity sector.
That’s a shame, because the global cybersecurity sector continues to grow. Statista’s research suggest that the global cybersecurity market could grow from US$223.7 billion in 2022 to US$245.4 billion in 2026.
Continuing revenue growth can help margins, net profit and shareholder returns.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price has gone backwards by 16% since 31 August 2023. That’s a sizeable reduction for the ASX share, though it’s still up significantly in 2023 (around 30%).
I think there’s a lot to like about the business. Online retailing still has plenty of growth potential, particularly as younger people reach their prime spending stages.
The economics of e-commerce retail could be stronger than physical retail because they don’t need a large store network, with all of the wages and operating expenses that comes with that.
Offering a digital sales process also allows for more opportunities to use technology, such as AI-powered chats with customers and the ability to provide customers with the ability to ‘see’ a product in their home with augmented reality (AR).
The ASX share recently said that its revenue had returned to double-digit growth (of at least 10%) now that it’s no longer comparing against locked-down periods, which were a boost for Temple & Webster at the time.
I’m excited to see how much the company benefits from becoming larger, which should give it stronger purchasing power, a better ratio of fixed costs to revenue, and higher operating margins.
