'Growth' stocks usually provide investors with the best total shareholder return over the long-term because these businesses are re-investing back into the business and growing revenue the most.
Here are four businesses that I think could be worth buying and holding for a few years:
Nanosonics Ltd. (ASX: NAN)
Nanosonics has created a disinfectant medical device which uses ultrasound probes. It provides this device to a number of hospitals around the world and is quickly expanding into more areas as hygiene requirements become more fastidious.
After years of growth it is now starting to make a profit and new revenue should fall mostly to the bottom line. It's trading at 34x FY17's estimated earnings and doesn't yet pay a dividend.
Freelancer Ltd (ASX: FLN)
Freelancer is one of the world's leading freelancer portals. It connects a person who has a potential project with freelancers from around the world willing to do the work.
It's rapidly growing the number of users and projects every year and a profit after tax could be close.
It doesn't yet make a profit or pay a dividend.
Xero FPO NZX (ASX: XRO)
Xero is one of the world's leading cloud accounting businesses. It has heavily invested in research, development and advertising. It has now grown its number of subscribers to over 1 million.
Management are now focusing on growing its presence in the USA and the UK, which means shareholders will have to wait longer for a profit, but in the long-term it should boost the business further.
Xero isn't yet making a profit or paying a dividend.
National Veterinary Care Ltd (ASX: NVL)
National Vet Care is the second biggest veterinary business in Australia & New Zealand. It hasn't been listed on the ASX for long but has already provided great returns for shareholders. I think there could be a lot more growth to come as it acquires more vet clinics.
National Vet Care is trading at 28x FY17's estimated earnings and is expected to pay a dividend with its full-year results.
Foolish takeaway
I think all four of these businesses have promising futures. At the current prices my order of preference would be National Vet Care, then Freelancer, then Xero, and finally Nanosonics.
