If you're looking to add a few new ASX shares to your portfolio, then the three listed below could be worth considering.
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 right now:
Appen Ltd (ASX: APX)
Appen and its large team of crowd sourced workers provide or improve the data that is used for the development of machine learning and artificial intelligence products. Given how important these products are becoming for businesses and governments, you won't be surprised to learn that demand for Appen's services has been growing rapidly in recent years. I'm confident this demand will remain strong for a long time to come and underpin robust earnings growth over the next decade.
Pushpay Holdings Ltd (ASX: PPH)
Another ASX share to invest $10,000 into is this donor management and community engagement provider. Over the last few years, the number of churches using Pushpay's platform has been increasing at a very strong rate. In FY 2020, for example, Pushpay reported a 42% increase in customer numbers to 10,896. Unsurprisingly, this customer growth is underpinning very strong sales and earnings growth. Pleasingly, demand continues to grow and further explosive growth is expected in FY 2021. Management expects its earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of US$50 million to US$54 million this year. This is higher than its previous guidance and more than double FY 2020's earnings.
Xero Limited (ASX: XRO)
A third ASX share to buy is Xero. It is a cloud accounting and business software company which has also been a very strong performer over the last few years. This positive form continued in FY 2020 when Xero delivered impressive top line growth of 30% year on year. Another big positive was its operating leverage, which led to increasing margins and a 52% increase in EBITDA 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.
