This could be a great time to invest in ASX growth shares during November whilst markets are uncertain and there’s a lot of volatility around.
A fall of a share price doesn’t mean it’s not a good investment. In-fact, a cheaper price can be a good thing for a lot of companies because it simply means that investors can buy at a cheaper price.
Taking that into account, these are two of my preferred ASX growth share picks at the moment.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies Ltd (ASX: VHT) is an ASX healthcare share that offers software relating to breast screening for cancer. It also has software to help healthcare professionals to do their jobs (efficiently) and also analyse the images, which can help decide what patients should do next.
Volpara share price
One of the best things about Volpara is that it has a gross profit margin of more than 90%. That means that when it receives $100 of revenue, more than $90 of that turns into gross profit. This gross profit can then be used to invest in software development, marketing and other growth areas. As the business grows its costs should reduce less and it can continue to grow its other profit margins such as EBIT (EBIT explained), net profit after tax (NPAT) and cash flow.
In the quarter for the three months to 30 September 2023, it delivered the fourth consecutive positive net operating cash flow quarter of NZ$1.2 million, a full year and a half ahead of guidance. This rapid improvement bodes well for the future.
In the September quarter, it grew cash receipts by 32% to NZ$11.5 million.
Revenue can grow further from new contracts being won in the current countries, geographic expansion, selling more software to existing clients and the ASX growth share could expand in other areas, such as lung cancer screening.
VanEck Morningstar International Wide Moat ETF (ASX: GOAT)
This exchange-traded fund (ETF) is quite similar to the Vaneck Morningstar Wide Moat ETF (ASX: MOAT), except it’s the global version.
The VanEck Morningstar International Wide Moat ETF (ASX: GOAT) portfolio is decided by analysts that are looking for companies that have a strong economic moat, or competitive advantages. That can be in many different forms such as brand power, patents, network effects, cost advantages and so on. These kinds of businesses can produce stronger returns over time. The GOAT ETF only considers businesses where the economic moat is likely to endure for many years.
Not only that, but the analysts only decide to invest in these businesses with strong competitive advantages if the company is priced materially cheaper than what analysts currently think it’s worth.
Some businesses in the portfolio include Gilead Sciences, Tyler Technologies, US Bancorp, Alphabet and Nike.
