2 fresh-faced ASX shares that could leave investors smiling 10 years from now

All those giants that made other people rich once started small, believe it or not.

| More on:
Two kids playing with wooden blocks, symbolising small cap shares and short selling.

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

We've all heard how veteran investors became rich through long-term investing in behemoths like CSL Limited (ASX: CSL) and Amazon.com Inc (NASDAQ: AMZN).

But all giants of the industry were once startups, and buying in early can lock in decades of smiles for investors.

So what are some of the fresh ASX shares that have the potential to make you leap for joy in 10 years' time?

Here are a couple of suggestions:

Australia conquered, now the world

PEXA Group Ltd (ASX: PXA), which listed on the ASX in July 2021, commands pretty much a monopoly in digital conveyancing in Australia.

So its growth opportunity comes from its overseas expansion plans.

The analysts at Firetrail Small Companies Fund team recognised Pexa's potential late last year. 

"The Bank of England expects to revolutionise the UK property market by partnering with PEXA to implement its settlement technology," read their report.

"The UK presents an estimated $700 million addressable market opportunity."

A few weeks ago, Wilsons equities strategist Rob Crookston named Pexa as a growth stock he would buy anticipating a future takeover.

"Identifying companies that will make suitable takeover targets can make for very lucrative investments," he said.

"Normally, companies are acquired at a significant premium to their latest share price, and any hint of a possible acquisition can trigger positive momentum even before a bid is announced."

The Pexa share price has dipped more than 21% over the past 12 months, although it has headed 15.8% up since the start of the year.

'Substantial margin uplift'

Challenger telco Aussie Broadband Ltd (ASX: ABB) might operate in a super-competitive industry crowded with giants, but multiple experts reckon it's a buy.

One of those, Discovery Fund portfolio manager Mark Devcich, told The Motley Fool last month that there are "some pretty favourable dynamics in the NBN space right now"

"You may have seen that the NBN wrote down the value of the network by $31 billion recently, and that was driven by changes to the prices they charge the retail service providers," he said.

"And what that's going to mean is once these changes come through in 1 July… there should be substantial margin uplift."

Aussie Broadband, which floated on the ASX in October 2020, has seen its share price halve since a year ago.

For the analysts at QVG Capital, the potential of Aussie Broadband's activities aside from NBN retailing is the big lure.

"The thing that attracts us to Aussie is that they have been investing in their own fibre backhaul and have been growing their business and government division," read the memo.

"As Aussie's revenue and earnings mix moves more towards the higher quality business and government division, we believe a re-rating of the company is likely."

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Aussie Broadband, CSL, and PEXA Group. The Motley Fool Australia has recommended Amazon.com and Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Dividend Investing

Brokers say these top ASX dividend stocks are buys

These stocks have been given the thumbs up by analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Growth Shares

The ultimate ASX growth shares to buy and hold for the next bull market

Brokers think these shares could be great long term investment options right now.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Buy BHP and this ASX dividend share with a 10% yield

Analysts are feeling bullish about these income options. But why?

Read more »

A man closesly watch a clock, indicating a delay or timing issue on an ASX share price movement
Dividend Investing

Little time left to snap up the next dividend from ANZ shares

ANZ shares will pay an interim dividend of 83 cents per share on 1 July.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Cheap Shares

Is it time to buy these 2 beaten-up ASX shares in 2025?

I’m bullish about these two ASX shares that have gone through a sell-off.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

3 ASX 200 shares to buy with $1,000

Here are three top picks according to analysts for investors looking at putting their money to work in the share…

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Dividend Investing

3 excellent ASX dividend stocks to buy with $3,000

Analysts believe these shares could be quality picks for Aussie income investors.

Read more »

A man smiles as he holds bank notes in front of a laptop.
Dividend Investing

Overinvested in Fortescue? Here are two alternative ASX dividend shares

Here are other ideas beyond Fortescue offering large dividends.

Read more »