3 of the best growth-focused ASX shares to buy in June

Looking for growth stocks to invest in? I think these three ASX growth shares have the potential for a bright future.

| More on:
Three young people in business attire sit around a desk and discuss.

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

Growth stocks are attractive to investors wanting maximum returns in today's financial world.

Many ASX shares offer excellent opportunities, and smart investors are looking for shares with strong capital growth potential.

As we approach FY25, here are three growth-focused ASX shares that I think are worth considering for the upcoming financial year.

PWR Holdings Ltd (ASX: PWH)

First up is cooling solutions provider PWR Holdings. The company designs and manufactures high-performance cooling solutions for automotive, motorsport, and industrial applications.

PWR serves top-tier global clients, including Formula 1 teams and major automotive manufacturers.

The retail stock reported an excellent set of numbers in its 1H FY24 results, with its revenue rising 22.2% to $64.2 billion and EBITDA up 27.2% to $18.4 billion. Strong growth in the aerospace and defence segment, up 124% from a year ago, continued to support its business, while motorsport revenue delivered a robust 19% growth.

This positive development led the PWR Holdings share price to hit its all-time high of $12.98 in February. However, since then, the share price has dropped about 14% to $11.00 at the time of writing.

At the current share price, PWR shares are trading at 35x FY25 earnings estimates by S&P Capital IQ, mid-point of its trading history of between 20x to 52x. While this is not exactly cheap, I tend to agree with my colleague Tony that the high-quality shares are rarely cheap.

VEEM Ltd (ASX: VEE)

My next pick is ASX small-cap share VEEM, which makes advanced marine technology and engineering parts. The company is well-known for its high-quality gyro stabilisers (gyros), propellers, and other precision parts used in the marine, defence, and aerospace industries.

VEEM is a small ASX company, but it has a presence in the global market and two exciting growth opportunities ahead of it.

VEEM gyros are an innovative product that replaces traditional propeller-based stabilisation. The company has the dominant position in this interesting niche.

In 1H FY24, its gyro sales were $5 million, with orders in hand of $9.2 million. While this may still look small compared to its total revenue of $37.5 million, the company sees a total addressable market of US$1.1 billion from this product. So, it's a long runway for growth.

The company is collaborating with another industry leader, Sharrow Engineering, to adapt Sharrow's design to a wider range of vessels. In this exclusive agreement, VEEM would manufacture and sell Sharrow-designed propellers worldwide for inboard-powered vessels. In April 2024, VEEM saw a positive outcome from initial testing and hopes to launch this product line throughout FY25.

The VEEM share price has more than quadrupled over the past year, after hitting an all-time low of 40 cents in July 2023. VEEM shares are trading at 30x FY25 earnings estimates, based on S&P Capital IQ.

DUG Technology Ltd (ASX: DUG)

The last share to discuss is DUG Technology. The company provides high-performance computing solutions, software, and data analytics services. It specialises in innovative cloud-based services, and high-performance computing (HPC). DUG is a global business with offices in Australia, Asia, Americas and Europe.

This ASX small cap share also provides an artificial intelligence (AI) angle.

In June, the Perennial Natural Resources Trust manager Sam Berridge said DUG could offer direct exposure to the AI boom, as my colleague James summarised. He highlighted DUG's patented immersion cooling technology, which the company claims provides 90% savings in electricity use and manpower.

In 3Q FY24, the company delivered a 39% growth in revenue to US$17.6 million and a 24% growth in EBITDA to US$4.6 million. In response to strong demand, the company is planning to establish a new business unit in the Middle East.

The DUG share price more than doubled over the past year and is at a price-to-earnings ratio of 38x using FY25 estimates by S&P Capital IQ.

Motley Fool contributor Kate Lee has positions in Veem. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dug Technology, PWR Holdings, and Veem. The Motley Fool Australia has positions in and has recommended PWR Holdings. The Motley Fool Australia has recommended Dug Technology and Veem. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

People of different ethnicities in a room taking a big selfie, symbolising diversification.
Opinions

Want diversification? Get it instantly with these ASX 200 shares

Some businesses offer a lot more diversification than others.

Read more »

A happy man and woman on a computer at Christmas, indicating a positive trend for retail shares.
Opinions

2 ASX 200 shares I'd want to receive as a present today

Merry Christmas! Are there any stocks under your tree?

Read more »

Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.
Opinions

Why I think these 2 ASX 300 stocks will beat the market in 2025

I’m very optimistic about a few ASX growth shares.

Read more »

A businessman compares the growth trajectory of property versus shares.
Opinions

What's the outlook for shares vs. property in 2025?

The experts have put out their new year predictions...

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Opinions

My ASX share portfolio is up 30% this year! Here's my plan for 2025

The best investing plans shouldn't need too many updates.

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Opinions

These stocks made my share portfolio a market-beater in 2024

Beating the market is the least important takeaway from this year.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Opinions

2 underappreciated ASX 200 shares to buy now

Investors may be undervaluing these ASX 200 shares heading into 2025, according to this expert.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Resources Shares

Is the BHP share price a buy? Here's my view

Is it time to dig into this beaten-up miner?

Read more »