3 growth shares I would buy in May

The Domino's Pizza Enterprises Ltd. (ASX:DMP) share price is one of three which I think could climb higher in May. Here's why I think they are buys…

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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.

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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