I think 2 ASX stocks are great long-term buys


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There are a handful of ASX stocks that I think would make great buys to hold for the long term.

In my opinion, companies with long-term growth plans and large potential markets can generally produce good compound returns over the next few years.

I think these elements, coupled with recent stock price volatility, make the two ASX stocks below even more attractive. Let’s take a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that has seen a steep decline since the start of the year, but its FY22 earnings showed a lot of progress.

The company points out that breast cancer screening presents a “significant opportunity” for the company. There are 92 million women screened worldwide each year, including 39 million in the United States. Volpara achieved a 35.5% market share of U.S. women with a Volpara product used on their images and data, up from 32% in FY21.

There are many other metrics that make this company a great long-term investment, in my opinion. Its average revenue per user (ARPU) continues to climb. ARPU was $1.40 in FY21 and increased to $1.51 in FY22. Growth here can be achieved by selling more modules to more customers.

Volpara’s subscription revenue increased 37% year-on-year to NZ$24.8 million for the year. It came with a gross profit margin of 91%, which allows the company to invest this growth profit in growth areas of business growth such as marketing and research and development.

One of ASX’s goals in FY23 is to expand its total addressable market, which could help lengthen the company’s long-term growth track.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as an IT-focused growth capital fund, actively managed by “an experienced team with demonstrated industry experience”.

It aims to provide exposure to a portfolio of IT companies that have addressable global markets. Bailador invests in growth-stage private technology companies.

Some of his investments include Siteminder Ltd (ASX: DTS), Straker Translations Ltd (ASX: STG), InstantScripts, Nosto, and Mosh.

Typically, he looks for founder-led businesses, in business for two to six years, with a proven business model with an attractive unit economy, international revenue generation, huge market opportunity and the ability to generate revenue. recurring.

Some of the types of areas ASX Share likes to review include subscription internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telecommunications devices and services. .

I think this could be a good opportunity because of the long-term investment approach it takes with its holdings, which are themselves attractive long-term businesses.

At the end of April 2022, it had a net tangible asset (NTA) per share (before tax) of $1.99. Bailador’s current stock price of $1.36 as of Friday’s close is at an attractive discount to this NTA level.

These factors explain why I believe the underlying portfolio should continue to perform well over the next few years, especially from this lower Bailador share price valuation.


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