3 Bargain Growth Shares

Buying growth shares at the right time can really give your portfolio a major boost.

The right time is normally when the share price is down, but it can also be when the business has a long growth runway ahead. Here are three growth options for your portfolio:

Bapcor Ltd (ASX: BAP)

Bapcor is Australia’s largest automotive spare parts and mechanic company with businesses like Burson, Midas and ABS in its garage of brands.

The share price is currently 18% down from its all-time high. Now could be a good time to buy whilst Bapcor integrates its Hellaby’s acquisition into the business. I expect Bapcor will grow earnings per share strongly over the next couple of years.

Bapcor is currently trading at 30x FY17’s estimated earnings with a grossed-up dividend yield of 3.09%.


BWX is the business behind natural beauty brand Sukin. Natural products are becoming more popular as the population increasingly want healthier products for their own sake and the environment’s.

The business is ramping up sales in many different countries, including the UK and Canada.

The shares aren’t trading cheaply at 30x FY17’s estimated earnings with a grossed-up dividend yield of 1.95%. However, now could be the right time to buy just as the business is beginning to accelerate its sales.

Class Ltd (ASX: CL1)

Class is the provider of cloud accounting software for self-managed superannuation fund (SMSF) administrators.

The software is proving to be hugely popular with accountants because it helps them do the compliance work quicker and more profitably. A large number of SMSFs are expected to switch to cloud accounting over the next couple of years.

Class’ share price is currently 30% lower than its all-time high in September 2016. However, the expected explosive growth is still reflected in the share price with it currently trading at 55x FY16’s earnings with a grossed-up dividend yield of 1.99%.

Foolish takeaway

I think all of these businesses have good long-term potential. At the current prices, it’s hard to pick a favourite, but Class and BWX will likely grow more over the next decade.

For businesses with even more long-term growth potential, you should read this report which was prepared by our analysts.

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Motley Fool contributor Tristan Harrison owns shares of Bapcor and Class Limited. The Motley Fool Australia owns shares of Bapcor, BWX Limited, and Class 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.

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