The best way to beat the market is buying growth shares at a reasonable price. These are shares where the underlying business is going to grow strongly over the coming years regardless of what the share price does, but the current share price makes it a particularly attractive option.
Here are four growth shares that are all looking like great options to me:
TPG Telecom Ltd (ASX: TPM)
The fast-growing telco is currently trading at around $5.60, which is more than 50% lower than the share price was a year ago.
I think now is a good time to buy the shares whilst it has numerous growth avenues such as the new mobile networks in Australia and Singapore. TPG also has a great chance of increasing its broadband market share, even if the margins are a little lower.
TPG is currently trading at 12x FY17’s estimated earnings with a grossed-up dividend yield of 3.95%.
Nanosonics Ltd. (ASX: NAN)
The business behind the ultrasound disinfectant device has seen its share price fall by over 25% since 10 May 2017 to $2.51.
It has a large potential addressable market and is ramping up sales in Europe and North America. The increasing health requirements of governments means that health providers have a big reason to use Nanosonics’ Trophon device.
Nanosonics is currently trading at 28x FY17’s estimated earnings and doesn’t yet pay a dividend.
Ramsay Health Care Limited (ASX: RHC)
The largest private hospital operator in Australia has seen its share price fall by 18% since its all-time high of $83.66 in September 2016.
The ageing demographics of Australia and the other countries it operates in means that Ramsay should have a very long-term growth runway. It should be one of the best shares to own over the next two decades.
Ramsay is currently trading at 26x FY17’s estimated earnings with a grossed-up dividend yield of 2.62%.
NIB Holdings Limited (ASX: NHF)
NIB is the second biggest private health insurer listed on the ASX. Its share price has fallen by 20% since its all-time high of $6.44 on 10 May 2017.
Private health insurers are a good way of getting investment exposure to all the health issues that Australians get treatment for, not just one specific health issue. NIB has done a great job of growing its policyholders over the last few years, so now could be a good time to buy whilst the price is currently down.
NIB is trading at 19x FY17’s estimated earnings with a grossed-up dividend yield of 4.85%.
I think all four of these are good options for growth-seeking investors. At the current prices, I think Nanosonics and TPG are trading at the best value, but all four could beat the market over the long-term from the current prices.