Got money to invest? Here are 2 ASX shares that could be buys

If you have some capital to put into the ASX share market, there are two in this article that might be buys such as Kogan.com Ltd (ASX:KGN).

| More on:
A balance sheet and calculator for assessing a company or individual's financial position

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Do you have some money to invest into some ASX shares? This article is about two ideas that could be interesting options.

Businesses that are seeing underlying growth of demand might be able to produce profit growth over the longer-term.

Kogan.com Ltd (ASX: KGN)

Kogan is a leading e-commerce ASX share that sells a wide variety of items and products.

Its website sells things like TVs, computers, phones, drones, appliances, heating and cooling, home and garden items, furniture, office supplies, toys, video games, clothes, sports gear, tools, books, alcohol and grocery items.

Kogan also offers a number of services including mobile, internet, energy, credit cards, insurance, pet insurance, life insurance, travel, cars, superannuation and home loans.

The business has a growing number of customers, including Kogan First members. Those members get free shipping, discounts and priority customer service.

The Kogan share price has declined by around a third over the last three months.

Kogan has been telling the market about its inventory problems and that its rapid growth has led to near-term supply chain inefficiencies.

To sort out its excess inventory, the ASX share is spending more on marketing and increasing its promotional activity. However, the demurrage issue that it has been facing has been resolved.

Customer demand in April 2021 remained consistent with the levels seen in the three months to March 2021, and below the levels seen in the nine months to December 2020. The quarter ending 31 March 2021 saw gross sales growth of 47% with gross profit increasing 54%.

Kogan says the longer-term fundamentals remain very attractive with online sales only accounting for a small percentage of total retail sales in Australia and New Zealand.

According to Commsec, the Kogan share price is valued at 17x FY23's estimated earnings.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ASX share is an exchange-traded fund (ETF) that is focused on the world's leading cybersecurity companies.

As BetaShares points out, governments, companies and households around the world are facing a tougher fight against cyber criminals who want to steal information or disrupt their IT related activities. Cybersecurity is increasingly important as more of the global economy heads online.

There are more devices online and it's an arms race for cybersecurity businesses.

Global spending on cybersecurity has increased at an annual rate of around 8% since 2011. Major public and private organisations continue to spend more on cybersecurity. The global cybersecurity market is expected to be worth $203 billion in 2021 and $248 billion in 2023.

Most of the portfolio is invested in US shares, though there is a weighting of just over 3% to Israel and the UK.

The ASX share has around 40 holdings, with the current biggest 10 being: Cisco Systems, Accenture, Crowdstrike, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Fireeye, Juniper Networks.

Despite the annual management fee of 0.67% per annum, Betashares Global Cybersecurity ETF has delivered an average return per annum of 19.5% since inception in August 2016.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Growth Shares

Top brokers name 3 top ASX growth shares to buy now

Why are brokers feeling bullish on these names? Let's find out.

Read more »

Two plants grow in jars filled with coins.
Growth Shares

3 ASX 200 growth stocks up more than 100% in 1 year that could charge higher

It's been a memorable year for shareholders of these 3 companies.

Read more »

Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
Growth Shares

The pros and cons of buying Zip shares in June

Should investors buy now or wait until later?

Read more »

A smiling woman holds a Facebook like sign above her head.
Growth Shares

3 ASX growth shares I'd buy for the next 10 years

Let's see why these shares could be top picks for the long term.

Read more »

wheelchair user in an office talking on mobile phone
Growth Shares

Why I'd buy this ASX growth share instantly

I’m calling on this stock to deliver strong returns.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX growth shares to buy in June: experts

These businesses have strong growth potential.

Read more »

Rocket powering up and symbolising a rising share price.
Growth Shares

Buy these stellar ASX growth shares with $1,000

Analysts think these shares would be top buys right now.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Growth Shares

These ASX growth shares could rise 18% to 30%

Let's see which shares are being tipped to rocket.

Read more »