3 promising shares to buy for growth in 2018

With Financial Year 2018 upon us, here's why I think you should look closer at BWX Ltd (ASX:BWX), Nearmap Ltd (ASX:NEA), and Greencross Limited (ASX:GXL).

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With Financial Year 2018 upon us, investor focus will soon inevitably switch from 'what do last year's results look like?' to 'what is the company likely to achieve in the year ahead?'

Here are three businesses that I think are shaping up for a strong year in 2018:

BWX Ltd (ASX: BWX)

Cosmetics company BWX has been growing at a rapid pace, and recently forked out over US$38 million to acquire Mineral Fusion, the number one cosmetics brand in the USA. The acquisition is expected to give BWX a footprint in a much larger market, where it can benefit from Mineral Fusion's distribution networks and experience.

With expansion into the UK also on the cards, BWX could be in for a strong year this year.

Nearmap Ltd (ASX: NEA)

Nearmap Ltd is an unprofitable aerial imaging company whose expansion into the USA could see its business grow much larger over time. Although heavy reinvestment is keeping the company unprofitable, it is paying off with Nearmap successfully growing US revenues for more than a year now.

As I wrote here, US losses are masking the company's overall performance, effectively making Nearmap a high-risk, high-reward investment.

Greencross Limited (ASX: GXL)

Back below $6, I believe that Greencross is likely to outperform for shareholders over the long term, especially as the company increasingly realises the benefits from its vet and retail co-location strategy. This allows cheaper expansion at a lower price and delivers benefits for the retail business by growing foot traffic.

Importantly, Greencross has become self-sustaining and is able to fund its expansion itself, which hopefully will lead to lower debt burden and greater financial resilience.

Motley Fool contributor Sean O'Neill owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of BWX Limited, Greencross Limited, and Nearmap 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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