
It's a rare time when ASX growth shares collectively go through a significant bump in their valuations. Today is one of those days when the stock market is hit.
The market is understandably nervous about events in the Middle East and what might happen this week. As unsettling as that is, investors can still make investment decisions with their portfolios.
If I were going to invest $10,000 today – and I am planning to put money to work today (into ASX dividend shares for passive income) – the ASX growth shares I'd buy today would be the following.
I regularly like to say that we should only invest in ASX shares that we'd be happy to invest more in if they declined in price. Both of my ASX growth share ideas are ones I've already put real money into, and I'd definitely buy more of.
Tuas is a rapidly growing Singaporean telecommunications company that is seeing pleasing expansion of its financials.
In FY25, the business reported revenue growth of 29% to $151.3 million, and operating profit (EBITDA) grew by 38% to $68.4 million. This shows both the strength of its growth in Singapore and the operating leverage the business is delivering, leading to rising profit margins.
In the AGM update, the company reported that its active mobile subscribers increased 20% year over year to 1.34 million, while active broadband services increased 41% quarter over quarter to 36,200.
With ongoing market share wins, a great value offering for customers, improving profit margins, an upcoming profit-boosting acquisition (M1) and the potential to expand internationally, I think this ASX growth share is one to watch.
Temple & Webster is a leading online retailer of furniture and homewares, selling hundreds of thousands of items.
The company has suffered a dramatic sell-off this year, despite achieving the most revenue and the biggest market share in its history.
I like that the ASX growth share is prioritising growth over short-term profitability because scale advantages will come with their own benefits in the coming years, including lower fixed costs as a percentage of revenue, better terms with suppliers and a bigger marketing budget.
The business is benefiting from structural growth as more people shop online. The market share of homewares and furniture that's transacted online has reached 20%. The UK has reached around 30%, suggesting further potential growth ahead for Australian online retail.
I'm also excited about the home improvement product segment of the business. It's just a small part of the overall company at this stage, but it grew revenue by 47% in the first half of FY26 to $30 million (with private label penetration reaching 25%). This could become increasingly important in the coming years if it continues growing much faster than the rest of the business.
I think this ASX growth share has a lot of potential and it's significantly undervalued on a long-term basis.
The post Where I'd invest $10,000 into ASX growth shares on this painful day for the stock market appeared first on The Motley Fool Australia.
Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group and Tuas. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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