Here are 3 explosive growth shares at bargain prices

The Australian Pharmaceutical Industries Ltd (ASX:API) share price is one of three which I think could be in bargain territory considering their strong growth prospects. Here's why…

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I'm a huge fan of quality growth shares and believe the Australian share market is home to a great number of them.

The only problem though is that many of them trade on extraordinarily high earnings multiples.

Take for example Domino's Pizza Enterprises Ltd. (ASX: DMP). Even though its shares are almost 24% lower than their 52-week high, they are still changing hands at 47x trailing earnings.

Thankfully though there are a few that trade on reasonable valuations at present. Here are three which caught my eye:

The Australian Pharmaceutical Industries Ltd (ASX: API) share price may be up 6% year-to-date, but its shares are still changing hands at 18x trailing earnings. I think this is a fair multiple for the company behind the Priceline pharmacy brand to trade at, especially with the company reporting a 15% increase in underlying half-year net profit last week.

The Appen Ltd (ASX: APX) share price has tumbled around 6% this year, meaning its shares are now priced at 25x trailing earnings. Whilst this may still be a premium to the market-average, I believe the company is well placed to profit from the increasing use of machine learning and artificial intelligence. Management expects earnings growth in excess of 20% this year.

The RCG Corporation Ltd (ASX: RCG) share price has fallen a massive 39% so far this year. Whilst there are concerns that retail behemoth Amazon could crush retailers when it launches in Australia later this year, at just under 13x trailing earnings I think this footwear retailer offers a compelling risk/reward. Especially as the company recently delivered a 34% increase in underlying half-year profit.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. 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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