6 ASX shares to buy and hold until the next leap year

   2024-03-02 17:03

February 29 may have come and gone, but if you want to force yourself to invest for the long run, you could think about which ASX shares you’d want to own in the next leap year.

With this mindset, Moomoo market strategist Jessica Amir nominated six ASX shares that she’d be happy to buy now and hold until 29 February 2028:

2 technology stocks to put away until 2028

Large-cap tech stock WiseTech Global Ltd (ASX: WTC) may have returned a spectacular 361% to investors over the past five years, but Amir reckons there’s more where that came from.

“[There’s] growth potential — increased scale and increasing demand for logistics technology,” she said.

“The company is confident that EBITDA margins will return to 50%+ by FY26, with further cost-saving efficiencies to come.”

She noted its clients are loyal as it would be a huge hassle for courier companies to change their main software, and 84% of the revenue is recurring.

“[WiseTech has] launched new products to keep clients and draw in new business such as NEO, allows planning, booking, tracking and management of freight. 

“It’s now offering customs and compliance features – for imports/exports – targeting 90% global manufacturers.”

Also in technology, but further up the supply chain, is data centre provider Nextdc Ltd (ASX: NXT).

Its shares have already risen 28% so far this year.

“Positioned to capture [and] generate AI opportunities… Market is telling you that it’s exciting about its future and that it’s essential in AI.”

Even after averaging a sensational underlying earnings compound annual growth rate (CAGR) of 20%, the business is now at a “tipping point”, Amir reckons.

“Half of its revenue is from NSW and ACT — huge potential to expanding capacity and geographically — and it’s doing that.”

2 resources stocks to have in the portfolio for years to come

ASX mining shares are notoriously cyclical, but there are two that Amir would be happy to buy now to hold until 2028.

Due to a bear market for iron ore, BHP Group Ltd (ASX: BHP) shares are now 13% down year to date. She feels like that presents a “great opportunity to buy”.

While iron ore may be in for even worse times in the short term because of the troubles in the Chinese construction industry, there is hope.

Vale SA (BVMF: VALE3), the world’s second-largest iron ore producer (behind BHP), said it’s looking to boost iron ore sales outside of China and sell to Europe, India, the Middle East and Southeast Asia,” said Amir.

“Vale’s iron ore is tight – no new supply coming this year… Australia’s production little changed, so iron ore price probably won’t remain in bear market.”

Also, BHP is well diversified in the minerals that it produces, which can smooth out the cyclicality somewhat.

“Beneficiary of increasing copper demand over next 5 to 10 years. BHP makes 26% of revenue from copper.”

Lithium prices have been stuck in a severe depression the past 12 months, and the stock that Amir would pick up for cheap right now is Liontown Resources Ltd (ASX: LTR).

But she warned it would be a “slow, not wild” climb back up.

“[The] lithium sector suffering punitively lower price. Lithium prices  — carbonate and hydroxide — [are] back at 2021 levels on excess supply vs demand.”

In the long-term though, the electric car market has much growing left to do.

“Australia [has only] 10% penetration.

“All in all, this means, demand for key components on EVS, such as lithium will continue to rise, which is why lithium stocks are starting to claw back.”

A couple of niche ASX shares to hold on to

Amir also nominated a pair of ASX companies that cater for specific needs as perfect candidates to buy and hold right now.

Audio networking technology provider Audinate Group Ltd (ASX: AD8) has enjoyed a massive 174% rise in its share price over the past 12 months.

But the fact remains, according to Amir, orders for AV are set to “boom”.

“This company means business, achieving its FY24 objectives 6 months ahead of plan.”

Audinate commercialised a “significant milestone” during the last half when it introduced the ability to synchronise audio directly from its networks into the cloud.

“Online production can happen anywhere, which reduces the need for mobile studios and full broadcast trucks,” said Amir.

“This is one of the [reasons] it sees margins improving. Plus, it cut costs [and] gaining new contracts.”

Fintech stock Block Inc CDI (ASX: SQ2) has enjoyed an even steeper ride up, doubling since the start of November.

Amir notes it makes the third most popular smartphone app in the US to send money.

“[When] US central bank cuts rates in 2024, that will boost discretionary spending and Block’s revenue.”

The company also has interests in cryptocurrency, so the 143% rocket in the value of Bitcoin (CRYPTO: BTC) since September has been huge for Block Inc.

“Making money from Bitcoin and benefit from Bitcoin halving [in April]… 43% of revenue is from Bitcoin.”

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