Are these 2 impressive ASX shares buys in January 2022?

Are these two impressive ASX shares worth looking at this month?

| More on:
stock market gaining

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

There are some ASX shares that are managing to demonstrate high levels of growth right now, despite the high levels of disruption of COVID-19.

Businesses that are producing a higher level of revenue growth may be able to achieve more earnings growth over the longer-term. Lots of investors do like to focus on the profit as a way to value a share price.

With that in mind, here are two ASX shares that are seeing growth:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a large pathology business that is currently involved in processing COVID-19 PCR tests. It has operations in Australia, New Zealand, Europe and North America.

In the first four months of FY22 to 31 October 2021, before Omicron's huge surge occurred, Sonic's revenue was up 5% to $3.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) had increased 16% to $991 million.

Morgans currently rates Sonic Healthcare as a buy, with a price target of $50.72. It recently increased the price target to above $50 after the high levels of Omicron testing that the ASX share is seemingly doing.

The broker currently rates the Sonic share price as a buy and values it at 16x FY22's estimated earnings.

Morgans also notes the recent ProPath acquisition, which was described as a high-quality, medically-led anatomical pathology company based in Dallas, Texas. It has annual revenue of around US$110 million. This is a "very significant additional step" in the ongoing development of Sonic's anatomical pathology and clinical laboratory operations in the US.

Pointsbet Holdings Ltd (ASX: PBH)

For readers that haven't heard of Pointsbet before, it's a corporate bookmaker with operations in Australia, the US, Canada and Ireland.

Pointsbet has developed a wagering platform where it can give clients sports and racing wagering products, advance deposit wagering on racing (ADW) and iGaming.

It's seeing rapid growth, particularly in the US. In the first quarter of FY22, it saw overall turnover growth of 42% to $979.9 million, with US turnover growth of 112% to $348.6 million.

The ASX share is seeing rapid growth of its 'net win'. In the first quarter of FY22, the overall net win increased 76% to $67.3 million and the US net win soared 307% to $12.5 million. New Jersey and Illinois were predominately responsible for the US net win figure.

Both the US and Australian divisions of the business are seeing high growth of the number of cash active clients (being someone who has placed a cash bet in the last 12 months). At 30 September 2021, Australian clients were up 79% year on year to 222,682 and US clients were up 367% to 185,880.

Credit Suisse currently rates Pointsbet as a buy, with a price target of $12.80. That's more than 80% higher than where it is right now.

The ASX share continues to expand geographically in the US. The company's online offering and mobile sports betting is now live in Virginia.

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 and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sonic Healthcare Limited. 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

Sports fans looking at smart phone representing surging pointsbet share price
Growth Shares

Up 111% in six months, this soaring ASX share is backed to keep rising

One fund manager thinks this ASX growth share can continue its phoenix performance.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

These ASX growth shares are being tipped to smash the market

Returns of 14% to 68% could be on the cards for buyers of these shares according to brokers.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

These ASX 200 growth shares could rise 50% to 70%

Analysts are predicting these stocks to rise materially from current levels.

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Growth Shares

2 ASX 300 growth shares with 'strong momentum' this fund manager says are buys

These two stocks have plenty of growth potential, according to experts.

Read more »

Rocket going up above mountains, symbolising a record high.
Growth Shares

2 high-growth ASX shares to buy now

Analysts at Bell Potter think these shares would be great picks for growth investors.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These ASX 200 growth stocks could rise 30% to 100%

Analysts think these shares are dirt cheap at current levels and have put buy ratings on them.

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Growth Shares

Goldman Sachs loves these ASX 200 growth shares: Do you own them?

Why is the broker bullish on them? Let's find out.

Read more »

Happy work colleagues give each other a fist pump.
Growth Shares

2 super ASX growth shares to buy for huge returns

Analysts are feeling bullish about these shares. Let's see what they are saying about them.

Read more »