If you're interested in adding some new ASX shares to your portfolio, then the three listed below could be worth considering next week.
I believe they could be among the best shares on the ASX and destined to be strong performers over the next few years. Here's why I would invest $10,000 into them when the market reopens:
Appen Ltd (ASX: APX)
I believe that Appen could be one of the best shares on the ASX. It provides or improves the data that is used for the development of machine learning and artificial intelligence products. Given how important these products are becoming for businesses, you won't be surprised to learn that demand for its services has been growing rapidly. I'm confident this demand will remain strong for many years to come and underpin above-average earnings growth over the 2020s.
Pushpay Holdings Ltd (ASX: PPH)
Another ASX share to consider buying is this donor management system provider. The number of churches using Pushpay's platform has been increasing at a strong rate over the last few years and has driven stellar revenue growth. In FY 2020, for example, Pushpay reported a 42% increase in customer numbers to 10,896. Pleasingly, this is just scratching the surface of its huge opportunity in a niche but lucrative market. Demand for its platform has been particularly strong this year and recently led to management upgrading its guidance for FY 2021. It now expects earnings before interest, tax, depreciation and amortisation (EBITDA) of US$50 million to US$54 million, up from its previous guidance of US$48 million to US$53 million. This will be double FY 2020's earnings.
Xero Limited (ASX: XRO)
A third ASX share to look at buying is Xero. It is a cloud accounting software company which has been a very strong performer over the last few years. This positive form continued in FY 2020 when Xero once again delivered impressive top line growth of 30% year on year. And due to its increasing margins thanks to the benefits of operating leverage, its EBITDA grew 52% to NZ$139.2 million. I'm confident Xero still has a long runway for growth thanks to its massive global market opportunity and its high quality and sticky product.
