3 growth stocks for your portfolio today

The stock market has performed strongly since mid-last year, with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) adding 35.8% in that time. Whilst this result has largely been driven by strength in the big four banks and various other blue chips, a number of growth companies have slipped under the radar of investors.

This has created an attractive opportunity to pick up quality companies trading at discounted prices that could deliver you with outstanding returns if held for the long term. Here are three such companies that could continue to climb for years to come.

Collection House (ASX: CLH) is an Australian receivable management provider with core operations including purchased debt and commission collections. It has become common for corporations today to outsource their receivables management tasks to collection agencies in order to save time and costs. Whilst Credit Corp Group (ASX: CCP) controls a larger share of the market, Collection House is ramping up its competitive measures in order to grow its stake.

Shares are currently trading at $1.62 following a successful share purchase plan initiated to strengthen its balance sheet and allow the company to take advantage of future investment opportunities.

G8 Education (ASX: GEM) is another company that could expose your portfolio to long-term growth. The company is a small childcare provider that currently owns more than 167 Australian centres. According to the company, this is around 3% of the long day care sector, which indicates that growth could continue well into the future. Shares are currently selling for $3.17 and have delivered shareholders a return of 121.6% in the last 12 months.

Finally, 1300 Smiles (ASX: ONT) is another attractive prospect to follow. The company runs dental practices and employs dentists as paid staff as opposed to the dentist acting as an owner-operator. Shareholders have been well-rewarded over the last five or so years and, given that it currently only operates in Adelaide and in areas of Queensland, there is still plenty of room to grow and should keep shareholders smiling for years to come.

Foolish takeaway

Growth stocks often carry heavier risk than core stocks but can also deliver far more superior returns to shareholders – particularly if the shares are held for a long period of time.

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Motley Fool contributor Ryan Newman owns shares in Collection House.

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