MENU

4 growth shares I really want to buy

Businesses with great financial metrics and good futures are the ones that I want in my portfolio.

Sadly, I haven’t been able to buy all the businesses I want to own due to the value not being right, or lack of funds at the time.

Here are four stocks I really want to own:

REA Group Limited (ASX: REA)

REA Group can call itself a worldwide leader of property websites with a presence in Australia, North America and Asia.

It has been one of the best shares to own on the ASX over the last decade. I think it could be one of the best to own over the next decade with its strong brand presence and pricing power.

Sadly for me, it trades at an expensive 31x FY18’s estimated earnings with a grossed-up dividend yield of 1.88%. I’ll be looking to buy REA shares if they drop back to around the $50 mark.

Costa Group Holdings Ltd (ASX: CGC)

Costa is one of the largest growers of fresh food in Australia. It grows berries, mushrooms, avocadoes, citrus fruit and tomatoes.

I think the demand for fresh food will continue to increase as society looks to live a little healthier.

I think Costa has a great future with growth plans in Morocco, China and Australia. It’s currently trading at 58x FY16’s earnings with a grossed-up dividend yield of 3.08%. I hope the share price will go back to $4, but I’m not sure that it will.

Crown Resorts Ltd (ASX: CWN)

Crown is one of the largest entertainment and resort businesses in Australia.

The tourism boom that Australia is experiencing is a great tailwind and Crown is looking to capitalise on that with its Sydney Barangaroo project and another hotel in Melbourne.

Crown is currently trading at 22x FY18’s estimated earnings with a planned partially franked dividend yield of 4.5%. I think the current price of $13.32 offers good long-term value if investors are willing to hold for the opening of the new Sydney casino.

DuluxGroup Limited (ASX: DLX)

DuluxGroup is the company behind brands such as Dulux, British Paints, Cabot’s and Yates. Paint is a fairly defensive product and DuluxGroup is the clear market leader in this category.

The shares are currently trading at 20x FY18’s estimated earnings with a grossed-up dividend yield of 5.05%. I’d feel more comfortable buying at around $6, rather than the current price.

Foolish takeaway

I hope to own all four of the above businesses in the future. I think Crown is the best value at the moment, though DuluxGroup and REA Group are higher on my watch list due to their strong brands.

Until the above shares are trading cheaper, I want to buy at least one of these growth shares.

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 Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia owns shares of Crown Resorts Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.