Growth shares (despite some of them paying dividends) have the added potential of a substantial lift in share price.
Looking into the new year, there are companies listed on the Australian Stock Exchange (ASX), which have grown strongly in 2015 and may keep growing in 2016.
The companies selected below are from different sectors, like technology, online shopping, etc. Three key criteria are used, which are a strong demand for their products, a high level of competitive advantage and a high growth rate.
Here is the list of 10 growth shares, with strong potential for upward movement in their share price in 2016.
|Company Name||Industry||Market Cap||1 yr Total Shareholder Return||2016 Analysts’ Earnings Growth Forecast (%)|
|1||TPG Telecom Ltd (ASX: TPM)||Telecommunications||$8.2 Billion||46.4%||43.00%|
|2||REA Group Limited (ASX: REA)||Online Advertising||$6.61 Billion||13.0%||14.80%|
|3||Cochlear Limited (ASX: COH)||Bio-Technology||$5.20 Billion||20.4%||23.90%|
|4||Domino’s Pizza Enterprises Ltd. (ASX: DMP)||Food||$4.38 Billion||98.6%||27.10%|
|5||Blackmores Limited (ASX:BKL)||Health & Baby Food||$3.32 Billion||460.6%||74.90%|
|6||Carsales.Com Ltd (ASX: CAR)||Online Advertising||$2.62 Billion||10.7%||11.40%|
|7||Vocus Communications Limited (ASX: VOC)||Telecommunications||$1.72 Billion||18.9%||38.60%|
|8||Bellamy’s Australia Ltd (ASX: BAL)||Health & Baby Food||$1.19 Billion||648.1%||115.80%|
|9||Surfstitch Group Ltd (ASX: SRF)||Online Shopping||$519.51 Million||104.8%||100%|
|10||Webjet Limited (ASX: WEB)||Online Travel||$429.57 Million||90.6%||10.3%|
Source: Commsec, Morningstar, Google Finance
The above list includes companies, which already have a successful business model. The forecast growth percentage for the 2016 earnings per share growth (EPS) is an indication based on all the current available information.
The aim of the list is to seek shares with high growth potential. There are many more companies, which have their shares listed on the ASX. It is not possible to completely understand and make an opinion about each and every share listed. So this list is my opinion on 10 quality growth shares listed on the ASX, which can do well in 2016.
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Motley Fool contributor Qaiser Malik has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Bellamy's Australia. 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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