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3 of the best growth stocks to buy today

The S&P/ASX 200 (INDEXASX:XJO) has opened in the red, again. While falling share prices are starting to frustrate investors, it’s important to keep your cool and focus on the long term. No matter what has happened in the short run, the ASX has provided investors with an average compounded return of 12% per annum for the past 114 years (when dividends are reinvested).

Keeping calm in times of economic uncertainty is what makes legendary investors like Warren Buffett so successful. Instead of selling off, you should start looking for quality companies trading at discounted prices. Here are three companies that offer promising growth prospects, with the added benefit of an attractive valuation.

1. Oil and gas producer Senex Energy Ltd (ASX: SXY) operates and develops energy resources in the lucrative Cooper Basin region. Shares have been smashed in the past month, falling from monthly highs of $0.64 to $0.54. As Foolish investors may already know, a lower price tag is even more attractive for a company with solid fundamentals.

Senex sits on no debt and growing reserves allowing it to capitalise on strong demand for energy from Australia’s east coast. Furthermore, its recent announcement of an asset swap with Queensland Gas Company will allow it to further grow production and meet its strict FY18 production strategy.

Senex trades on a price-to-earnings ratio of 13.65 and with analysts’ forecasts for double-digit growth for the next two years, Senex is my number one company for exposure to the oil and gas industry.

2. Legal eagle Shine Corporate Ltd (ASX: SHJ) continues to be my favourite growth stock on the ASX. The litigation company holds significant interests in the profitable personal injury market. Like its competitor Slater & Gordon Limited (ASX: SGH), Shine has been implementing an all-growth strategy. Its recent acquisition of Queensland-based Emanate Legal and Stephen Browne personal injury lawyers in Western Australia, sets Shine up for more development and complements its existing organic growth.

Despite its recent run of acquisitions, Shine retains a very healthy balance sheet, giving it plenty more opportunity for further acquisitions. Trading on a modest price-to-earnings ratio of 17.3, I’m keen to stock up on some more shares when I have the chance.

3. SEEK Limited (ASX: SEK) offers online employment classifieds on a global scale. Since its humble beginnings, it has managed to achieve monthly site visits in excess of 14.4 million, much more than the 2.9 million by its closest rivals. SEEK’s recent expansion into the booming Asian market also sets it up for some heavy gains. While it already has formed subsidiaries in Singapore and Kuala Lumpur, Asia offers plenty more growth opportunities that SEEK can capitalise on.

Despite its high price-to-earnings ratio of 30.1, which may scare many value investors away, SEEK’s potential to deliver double-digit growth for the years to come is unquestionable. I think its current share price offers a decent entry point into a growing company.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Aryan Norozi does not own shares in any of the companies mentioned in this article.

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