3 underfollowed growth shares I think you can buy today

I believe that Australian Pharmaceutical Industries Ltd (ASX:API), ARB Corporation Limited (ASX:ARB), and SKYCITY Entertainment Group Limited-Ord (ASX:SKC) are three growth shares you don't want to miss out on.

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Most investors are aware of the fantastic growth shares the Australian Stock Exchange has such as SEEK Limited (ASX: SEK). But if you dig a little deeper, there are a few high-quality growth shares that go largely unnoticed by the wider market.

I believe the following three shares are well worth adding to your portfolio today:

1. Australian Pharmaceutical Industries Ltd (ASX: API)

Australian Pharmaceutical Industries is the operator of a portfolio of beauty and pharmacy brands including Priceline, Soul Pattinson, and Pharmacist Advice.

In the last five years the company has grown its earnings by an average of 11% per annum. This is (according to analysts) expected to ramp up to almost 18% per annum for the next two years.

The company can achieve this by maintaining its excellent same-store sales growth, as well as further expansion to its store network. Its Priceline store network currently consists of 420 stores, with plans to add a further 20 in the current financial year. In the future it sees the potential for over 500 stores due to the market being fragmented.

The company's pharmacy distribution segment services over 3,500 pharmacies in Australia. While it has slowed a touch recently, management expects it to start to grow steadily in the year ahead.

2. ARB Corporation Limited (ASX: ARB)

ARB designs, manufactures, distributes, and sells high quality four-wheel drive vehicle accessories and light metal engineering works. Last year there was an unusually large number of new vehicles released worldwide, which could be the catalyst to ARB producing strong earnings growth.

It has taken the company a little time to catch up on all the necessary product development. But it is there now, and I would expect to see a much stronger performance in the second half of its fiscal year. The company has been benefitting from a lower Australian dollar. It has seen exports rise by 15% year over year, and I expect this level of growth could accelerate in the second half.

In the last 10 years the company has grown its earnings by a fantastic average of 12% per annum. The market consensus is for earnings to grow at 11% per annum for the next couple of years. This, in my opinion, is extremely achievable, and I would expect to see strong share price gains because of it.

3. SKYCITY Entertainment Group Limited-Ord (ASX: SKC)

Much like Crown Resorts Ltd (ASX: CWN), I expect SKYCITY Entertainment to benefit from increasing levels of tourism. The Australian Bureau of Statistics recently reported that the number of Chinese visitors to Australia grew by nearly 22% to over one million in 2015. Similar levels of growth have been reported in New Zealand.

Providing the Australian and New Zealand dollars remain low, I would expect inbound tourism to continue to ramp up for the next few years. This supports the market's view that SKYCITY Entertainment will grow its earnings by a massive 20% per annum through to 2018.

SKYCITY Entertainment's shares are trading at an estimated forward price-to-earnings ratio of 15, compared to Crown Resorts' 19 times estimated forward earnings. This for me, makes these shares look like a great buy today.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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