Are you looking to make some additions to your portfolio in April? If you are, the three ASX shares listed below could be great options.
They have been tipped as shares that could generate strong returns for investors in the future. Here's why they could be five-star stocks:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first five-star stock to look at is Domino's. This pizza chain operator could be a good option due to its strong market position and bold growth targets. At the end of the first half of FY 2021, Domino's had a network of 2,800 stores. This was up 5% from 2,668 stores at the end of FY 2020. Positively, the company still sees significant room for growth over the next decade. In fact, management expects to almost double its network to 5,500 stores by 2033. At the same time, Domino's is targeting consistently solid organic same store sales growth. If it delivers on these targets, it should result in strong top line growth over the next decade.
Morgans is a fan of the company and has an add rating and $119.00 price target on its shares.
REA Group Limited (ASX: REA)
Another five-star stock to consider buying is REA Group. It is the digital advertising company that operates Australia's leading property website, realestate.com.au. It also operates a number of complementary websites in the Australian market and internationally. Although market conditions were tough over the last few years, the resilience of its business model allowed REA Group to continue its growth. Pleasingly, with the housing market now booming, demand for listings looks set to increase materially. Combined with new revenue streams and its good cost control, REA Group appears well-placed to accelerate its growth.
One broker that rates REA Group highly is Macquarie. It is very positive on the company's outlook and has an outperform rating and $171.70 price target on its shares.
ResMed Inc. (ASX: RMD)
A final five-star share to buy is ResMed. This sleep treatment-focused medical device company could be a great long term option due to the quality of its masks and software-as-a-service solution and their growing addressable market. In respect to the latter, demand for its offering looks set to grow in the future as the number of people diagnosed with sleep disorders increases. For example, management estimates that there could be upwards of 1 in 7 people impacted by sleep apnoea, with the vast majority of them undiagnosed. This potentially provides ResMed with a significant runway for growth over the next decade.
Credit Suisse is bullish on the company. It currently has an outperform rating and $29.50 price target on ResMed's shares.
