2 ASX growth stocks that I would buy in January 2022


January 2022 could be a good month to look for some great ASX growth stocks. I have my eyes fixed on a few ideas.

Fast growing companies have the potential to produce strong returns for shareholders over time.

I think the following two ASX growth stocks can produce very good results over time:

Ville Chic Collectif Ltée (ASX: CCX)

City Chic is a leading retailer of plus size women’s clothing, footwear and accessories. City Chic is a global company. She bought a number of companies in different markets. City Chic acquired online retailer Avenue in the US, Evans in the UK and Navabi in Europe.

The growth of the whole company allows for advantages of scale and increasing margins. She is looking for very interesting cross-selling opportunities between different companies and markets. For example, this brings Avenue into the Australian market.

Year 21 sales increased 32.9% to $ 258.5 million and underlying net income increased 80.6% to $ 24.9 million.

It is working to increase its market share in the United States, as well as in Australia and New Zealand. It also showcases the full assortment of products to Evans’ customers. It is also expanding its market partnerships in all regions.

ASX Growth Share seeks to continue to improve its ANZ store network as well as seek more acquisition opportunities.

According to CommSec, the City Chic share price is valued at 27 times the forecast profit for fiscal year 2023 after a 9% drop in the share price since the end of November 2021.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading online retailer of beauty and personal care products.

The company operates in a multi-billion industry where it is a leader and its size is growing rapidly.

FY21 was a very successful period for the company as sales climbed 48% to $ 179.3 million and gross profit margin increased an additional 1.2 percentage points to 33.1% .

The company’s bottom line is not growing much yet because it is investing so much for growth. But if it can quickly capture an impressive market share, then its margins can grow quickly and it can lighten things like marketing and growth expenses relative to its size.

Despite the huge year of growth in FY21, growth continues rapidly in FY22. The first three months of this fiscal year saw a 25% increase in sales.

With the Adore Beauty share price down 9% since the end of November 2021, the ASX growth share seems to me an even more attractive idea in the long term.

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