There are some ASX shares that could be worth looking into.
Businesses that are growing may be able to deliver satisfactory investment returns over the longer-term.
Not every business is growing, particularly during this difficult COVID-19 period.
Here are three ASX shares to think about:
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This is an exchange-traded fund (ETF) ASX share which is focused on high-quality businesses that are listed in the United States.
VanEck, which is the ETF provider, says that the ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar's equity research team. In other words, the businesses have "wide economic moats."
The target companies of the ETF must be trading at attractive prices relative to Morningstar's estimate of fair value, with the research used being Morningstar's rigorous equity research process.
At the end of December 2020, its largest positions were John Wiley & Sons, Charles Schwab, Corteva, US Bancorp, Wells Fargo, Constellation Brands, Bank of America, Boeing, Yum! Brands and Cheniere Energy.
Despite the ETF's management fees of 0.49% per annum, VanEck Vectors Morningstar Wide Moat ETF has delivered net returns of 16.6% per annum over the past five years, outperforming the S&P 500.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an ASX share which specialises in facilitating electronic donations. Its key client base is large and medium US churches. These churches receive a large amount of donations each year. The company is aiming for a 50% market share of this sector, which could see it generate US$1 billion of annual revenue eventually.
In the most recent result, the FY21 half-year report, Pushpay processed US$3.2 billion of donation volume – this was growth of 48%. Its operating revenue grew 53% to US$85.6 million in the same result.
Fund manager Ben Griffiths from Eley Griffiths said: "Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE)). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash."
In FY21 Pushpay is expecting to more than double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to a range of US$54 million to US$58 million.
According to Commsec, the Pushpay share price is valued at 22x FY23's estimated earnings.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is one of the businesses that have grown strongly since the onset of the pandemic and the rise of online shopping.
The ASX share revealed that growth has continued in FY21. It said that in FY21 between 1 July 2020 to 19 October 2020, revenue was up more than 138%. October's revenue growth was more than 100%. The FY21 first quarter EBITDA was $8.6 million, which was more than the EBITDA from the whole of FY20.
Management plan to keep expanding its range, including the private label products. It will also keep investing in its technology, data and marketing. As it gets bigger it can invest even more into its customer proposition and advertising. The company described this as a virtuous cycle.
The ASX share is also bullish about its trade and commercial division over the long-term, which grew by 68% over FY20 despite a tough fourth quarter where many businesses reduced spending.
Temple & Webster wants to keep its customer satisfaction rates very high. It had a net promoter score of around 70% in FY20.
The company is committed to a high growth strategy to take advantage of the structural shift towards online, capitalising on both organic and inorganic opportunities.
According to Commsec, the Temple & Webster share price is valued at 39x FY22's estimated earnings.
