Are these 3 growth shares an opportunity?

Should you buy shares in Blackmores Limited (ASX:BKL), Aconex Ltd (ASX:ACX), and Paragon Care Ltd (ASX:PGC)?

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Buy shares for $1 now, sell them for $10 in 10 years – the theory is simple, but picking long-term growth stocks is easier said than done. Have these 3 companies that have what it takes?

Blackmores Limited (ASX: BKL)

While most of Blackmores current sales are generated in the Australian market, which is mature and doesn't appear likely to grow very fast, the company's overseas markets are important prospects. Although a reduction in Australian sales (believed due to lower Chinese demand) hurt the company meaningfully in the first half, with higher inventory and higher debt, Blackmores' fortunately has the balance sheet strength to handle the shock and is poised to resume growing sales in the future.

Its Asian markets have significant potential and Blackmores could become much larger over the next decade.

Aconex Ltd (ASX: ACX)

A project management (construction) cloud software business that is digitising the way projects operate, resulting in greater efficiency and lower cost for users. I believe that, based on the size of the industry and the high margins and recurring demand seen by software companies, Aconex could be much larger in a decade. However, at present, I am deeply sceptical of this business as I think the $767 million market capitalisation prices in too much future success for this loss-making company. I will be waiting to see further signs of success before considering an investment in Aconex.

Paragon Care Ltd (ASX: PGC)

A small medical device and consumables supplier to the health industry, Paragon Care has an enviable record of growth over the past 5 years. It is still a small company, with just a $130 million market capitalisation, and the medical supply industry in Australia is fragmented – there is room for a business to acquire competitors and grow in scale, which is what Paragon Care is doing.

The increasing amount of health care sought by Australians each year, perhaps aided by an overweight and ageing population, should also prove a nice tailwind. Paragon could grow significantly larger over the next decade.

Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO. 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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