Here are 10 market-beating growth shares to buy in 2017

When it comes to growth shares I think Australian investors are spoilt for choice. At this point in time the local share market is home to a great number of high-quality shares exhibiting high levels of earnings growth potential.

Here are 10 which I think could provide investors with market-beating gains in the long term:

a2 Milk Company Ltd (Australia) (ASX: A2M)

This fast-growing dairy company has been growing like a weed in the last few years. Thanks to the insatiable demand for its products from Chinese consumers, I believe there is still significant growth ahead for the company. Its shares may look expensive after rallying around 45% year-to-date, but I believe patient buy and hold investors will be rewarded handsomely.

Altium Limited (ASX: ALU)

I believe Altium will be a big winner from the rise of the Internet of Things. As the majority of these connected devices require printed circuit boards (PCB) inside them, I expect demand for Altium’s PCB design software will grow strongly. Management certainly believes it will and expects to double revenue to US$200 million by 2020.

Appen Ltd (ASX: APX)

Thanks to the strong demand for its voice recognition and language data services from government agencies, automakers, and major technology companies, I believe Appen has a bright future. After a strong start to FY 2017, management expects full-year earnings growth in excess of 20%.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s share price is currently trading around 22% lower than its 52-week high of $80.69 due partly to a sell-off related to concerns over allegations of the underpayment of staff by franchisees. I believe these concerns have been overblown and that the decline in its share price provides investors with a compelling risk/reward.

Mayne Pharma Group Ltd (ASX: MYX)

Like Domino’s, Mayne Pharma has also seen its share price plunge in the last few months. Allegations of price-fixing by the U.S. Department of Justice and concerns over the impact the Trump Administration will have on the industry appear to be behind the fall. But at just 13x annualised earnings, I feel Mayne Pharma’s shares have been oversold and could be a bargain buy.

Nanosonics Ltd. (ASX: NAN)

I think this infection control company would be a fantastic buy and hold investment thanks largely to the growing popularity of its ultrasound probe disinfection system. Nanosonics recently reported a 131% jump in half-year sales to $36.1 million and I expect more of the same in the second half.

Nextdc Ltd (ASX: NXT)

As more and more businesses migrate to the cloud, I believe this data centre operator will see demand for its services increase greatly. NextDC recently reported a 32% rise in contracted utilisation to 30 megawatts during the first-half of FY 2017. This led to the company posting an incredible 110% increase in half-year EBITDA to $23.9 million.

Ramsay Health Care Limited (ASX: RHC)

This private hospital operator would have to be my favourite buy and hold investment option on the Australian share market. Thanks to its global footprint, I believe Ramsay is positioned perfectly to profit from ageing populations and increased chronic disease burden across the world.

Webjet Limited (ASX: WEB)

This online travel agent could be the Australian share market’s ultimate growth share in my opinion. Thanks to market share gains and bookings growth from all of its businesses, Webjet recently reported a 96% jump in half-year net profit after tax. I remain confident that there will be more of the same in the second half.


Xero is a provider of cloud-based accounting software for small to medium enterprises. Although the space is extremely competitive, the company has been growing its user numbers at an extraordinarily quick rate and just broke through the 1 million mark for subscribers. Despite this stellar growth, I still believe there is a significant opportunity for the company to grow globally.

If 10 growth shares aren't enough for you then take a look at these hot growth stocks as well. Each is growing like wildfire and I'm tipping them to smash the market in 2017 and 2018.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk, Altium, Appen Ltd, Nanosonics Limited, and Xero. 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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