3 growth shares I would buy in May

The month of April has proven to be a bit of a mixed month for the market. With numerous ups and downs the market looks set to finish the month with just a slight gain.

I’m expecting better in May and three shares which I’m tipping to shine are listed below. Here’s why I would buy these growth shares next month:

Although the BWX Ltd (ASX: BWX) share price has rallied 31% this year, I still believe it is great value for patient buy and hold investors. Thanks largely to its Sukin skincare range, BWX posted a 30.2% jump in half-year net profit after tax to $8.2 million in February. Due to the launch of the products in the UK market through the Boots pharmacy chain and in China through online marketplaces, I believe the company could deliver an even stronger second-half.

The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price has fallen around 20% since the middle of August, leaving its shares changing hands at a reasonable 46x trailing earnings today. Whilst this is still a significant premium over the market average, I believe its bottom line growth more than justifies it. After all, management expects net profit after tax growth of at least 32.5% in FY 2017.

The Nextdc Ltd (ASX: NXT) has rocketed almost 15% year-to-date thanks to an impressive half-year result from the data-centre-as-a-service (DCaaS) provider. As the migration to the cloud continues to gather momentum, demand for its services has continued to rise. In the first-half of FY 2017 the company saw contracted utilisation rise 32% to 30 MW. This led to an incredible 110% increase in EBITDA to $23.9 million. With its shares priced at 29x annualised earnings, I think NextDC remains a buy.

Finally, here are three more explosive growth shares I'm tipping to rocket in May. Catch them whilst you can!

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of BWX Limited. 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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