2 top ASX shares for December

Airtasker is one of the ASX shares that could be a leading idea in December.

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It's the last month of 2021. There are some very compelling ASX shares that are now trading at good value.

Businesses that are expected to achieve strong growth in the coming years may be able to achieve pleasing results, particularly if they are able to positively surprise investors along the way.

This volatility could mean it's a good time to buy the following ASX shares:

Airtasker Ltd (ASX: ART)

Airtasker is a leading ASX tech share that owns a marketplace. The idea is that it connects people who want work done with people willing to do that work. It's rapidly gaining traction in Australia and it is making a promising start in the UK as well.

It is currently rated as a buy with a price target of $1.27 by Morgans. It highlighted that the business achieved growth in the first quarter of FY22 even though Melbourne and Sydney were in lockdown during that quarter.

First quarter gross marketplace volume (GMV) grew 6.2% year on year to $35 million. The company boasted that it is seeing a strong post-lockdown bounce back, with the latest weekly GMV of $3.6 million translating to an equivalent annualised run rate of $185 million.

A key part of the company's growth plans is international expansion. Airtasker saw international GMV increase more than 100%, driven by "strong growth" year on year in the UK.

The US Zaarly integration and US expansion is progressing well according to management with city-level markets launching in Dallas, Kansas City and Miami.

The ASX share is also seeing "strong positive movement" in its average task value, with this trend expected to continue in the medium-term and the longer-term. Management also noted that as Airtasker becomes more trusted, more people are turning to the marketplace for more complex jobs and therefore higher value tasks.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has fallen 18% over the last month. Some investors and analysts think that it's an opportunity. One of those positive on the business is Credit Suisse, which has a price target of $13.88 on the company.

Kogan's FY22 first quarter showed a good level of growth for sales and active customers, though profitability was lower than expected. The broker thinks that the Kogan share price looks good value.

The ASX share has had to deal with the fallout of having too much stock on hand, which led to higher inventory holding costs and an increased level of discounting to reduce stock levels back to the right level. However, Kogan says that it has resolved its excess inventory issues now.

As mentioned by the broker, Kogan revealed double digit top line growth in the first quarter of FY22 with gross sales rising 23.2% quarter on quarter to $330.5 million and gross profit increasing 31.6% quarter on quarter to $52.5 million. Active customers rose 30.7% year on year to 3.35 million for Kogan.com, whilst Mighty Ape ended with 748,000 customers.

In its AGM year to date update to October 2021, Kogan said its gross sales growth was 19.2%, though gross profit was slightly down to $69.2 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was down over 60% to $12.4 million compared to the first four months of FY21.

However, Kogan notes that online retail is in its infancy in Australia and its market share is rising in a rapidly growing market. Its five-year goal for FY26 is gross sales of $3 billion.

Credit Suisse puts the Kogan share price at 20x FY23's estimated earnings.

Motley Fool contributor 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 and has recommended Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and 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.

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