If you're looking for some quality additions to your portfolio this month, then the two ASX shares listed below could be worth considering.
They have been tipped as shares that could generate strong returns for investors in the future. Here's why they are rated very highly:
SEEK Limited (ASX: SEK)
SEEK is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.
At the end of the first half of FY 2021, SEEK's local business was averaging 35 million monthly visits and had 160,000 active hirers. This meant it had almost a third of all placements in the region, which is a sizeable five times greater than its nearest rival.
The good news is that this leaves the company perfectly positioned to benefit from Australia's strong economic recovery from the pandemic. Especially given predictions that Australian unemployment will fall materially over the next 12 months. This bodes well for job ad volumes and SEEK's top line growth.
Macquarie is very positive on SEEK. It currently has an outperform rating and $40.00 price target on its shares.
Xero Limited (ASX: XRO)
Another highly rated ASX share to look at is Xero. It is a fast-growing provider of a cloud-based business and accounting solution to small and medium sized businesses.
Xero's rapid growth in recent years has been driven by the shift to the cloud, its global expansion, and a series of bolt-on acquisitions. Positively, these acquisitions have continued over the last 12 months and are strengthening its app ecosystem meaningfully.
This is a big positive because analysts at Goldman Sachs believe the monetisation of this app ecosystem could be the key to multi-decade strong revenue growth. It is partly for this reason that the broker currently has a buy rating and $165.00 price target on Xero's shares.
