4 growth shares I really want to buy

These 4 growth stocks including REA Group Limited (ASX:REA) are all high on my watch list.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Businesses with great financial metrics and good futures are the ones that I want in my portfolio.

Sadly, I haven't been able to buy all the businesses I want to own due to the value not being right, or lack of funds at the time.

Here are four stocks I really want to own:

REA Group Limited (ASX: REA)

REA Group can call itself a worldwide leader of property websites with a presence in Australia, North America and Asia.

It has been one of the best shares to own on the ASX over the last decade. I think it could be one of the best to own over the next decade with its strong brand presence and pricing power.

Sadly for me, it trades at an expensive 31x FY18's estimated earnings with a grossed-up dividend yield of 1.88%. I'll be looking to buy REA shares if they drop back to around the $50 mark.

Costa Group Holdings Ltd (ASX: CGC)

Costa is one of the largest growers of fresh food in Australia. It grows berries, mushrooms, avocadoes, citrus fruit and tomatoes.

I think the demand for fresh food will continue to increase as society looks to live a little healthier.

I think Costa has a great future with growth plans in Morocco, China and Australia. It's currently trading at 58x FY16's earnings with a grossed-up dividend yield of 3.08%. I hope the share price will go back to $4, but I'm not sure that it will.

Crown Resorts Ltd (ASX: CWN)

Crown is one of the largest entertainment and resort businesses in Australia.

The tourism boom that Australia is experiencing is a great tailwind and Crown is looking to capitalise on that with its Sydney Barangaroo project and another hotel in Melbourne.

Crown is currently trading at 22x FY18's estimated earnings with a planned partially franked dividend yield of 4.5%. I think the current price of $13.32 offers good long-term value if investors are willing to hold for the opening of the new Sydney casino.

DuluxGroup Limited (ASX: DLX)

DuluxGroup is the company behind brands such as Dulux, British Paints, Cabot's and Yates. Paint is a fairly defensive product and DuluxGroup is the clear market leader in this category.

The shares are currently trading at 20x FY18's estimated earnings with a grossed-up dividend yield of 5.05%. I'd feel more comfortable buying at around $6, rather than the current price.

Foolish takeaway

I hope to own all four of the above businesses in the future. I think Crown is the best value at the moment, though DuluxGroup and REA Group are higher on my watch list due to their strong brands.

Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia owns shares of Crown Resorts 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »