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5 of my favourite growth stocks to buy today

Growth stocks are my favourite type of business to own because they are the ones that are growing the profit and the dividend the fastest. The share price should grow nicely too as long as the business has several years of growth ahead.

However, no company is a buy at any price. Here are five businesses that I think are trading at attractive value:

Bapcor Ltd (ASX: BAP)

Bapcor is Australia’s largest automotive spare parts business. It has quality businesses such as Burson and Midas as part of its network.

Selling car parts is quite a defensive business because in downtimes car owners will try to make their car last longer.

Bapcor is trading at 27x FY17’s estimated earnings with a grossed-up dividend yield of 3.14%.

Class Ltd (ASX: CL1)

The shares of the cloud accounting software provider for self-managed superannuation fund (SMSF) administrators have stubbornly remained under $3 for a while, but could grow again soon.

The number of SMSFs grows every year and there is going to be a large flow of funds moving onto cloud accounting due to new reporting rules. Class could benefit heavily over the next few years.

Class is trading at 54x FY16’s underlying earnings with a grossed-up dividend yield of 2.01%.

Collins Foods Ltd (ASX: CKF)

Collins is mostly known for operating KFC outlets in several Australian states. However, it has also just started expanding into Germany and the Netherlands which could substantially boost growth over the coming years.

Collins Foods has a low dividend payout ratio of around 40% yet has a grossed-up dividend yield of 4.31% and is trading at 14x FY17’s estimated earnings.

Healthscope Ltd (ASX: HSO)

Healthscope is Australia’s second-largest private hospital operator. There is going to be a growing number of patients at Healthscope’s hospitals as Australia’s population continues to age.

The number of hospital beds it has scheduled for completion over the next three financial years could easily see profit grow faster than the overall market.

Healthscope is trading at 20x FY17’s estimated earnings with an unfranked dividend yield of 3.38%.

Vocus Group Ltd (ASX: VOC)

The telco industry continues to baffle. Unless there is some bad news yet to be announced it appears that the Vocus share price has been harshly treated.

The importance of its fibre optic network of cables around Australia and South East Asia make its assets valuable and should generate a lot of cash.

It’s currently trading at 10x FY17’s estimated earnings with a grossed-up dividend yield of 5.83%.

Foolish takeaway

All five of these businesses are trading at attractive value and better value than they were a few months ago.

I’m interested in all five and may buy one or two this month if they stay at the current prices with Bapcor at the top of my wishlist.

These five aren't the only ones I'm interested in, these growth stocks are also trading at very attractive prices!

Top 3 ASX Blue Chips To Buy In 2017

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

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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.

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Motley Fool contributor Tristan Harrison owns shares of Class Limited and HEALTHSCPE DEF SET. The Motley Fool Australia owns shares of Bapcor, Class Limited, and Vocus Communications 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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