8 growth shares to buy for FY18

Over the long-term, fast-growing businesses should create the best returns for your portfolio. Share prices are always fluctuating and changing the attractiveness of growth stocks. However, here are eight of my favourite growth stocks at the current prices:

Altium Limited (ASX: ALU) creates design software for electronic Printed Circuit Board engineers. The growth in the number of complex items required for the Internet of Things should see Altium’s revenue soar over the next five years. It’s currently trading at 23x FY18’s estimated earnings.

Challenger Ltd (ASX: CGF) is the largest annuity provider in Australia with a dominant market share. The number of people hitting retirement age is on track to substantially increase over the coming years which will be a good boost for Challenger. It’s currently trading at 18x FY18’s estimated earnings.

Domino’s Pizza Enterprises Ltd. (ASX: DMP) is the pizza mogul taking Australia, New Zealand, Japan and Europe by storm. It has long-term plans to grow its margins and the number of outlets. The current short-term pain for the share price could be the right time to buy with the shares trading at 32x FY18’s estimated earnings.

Freelancer Ltd (ASX: FLN) is one of the largest freelancer websites in the world which is rapidly growing its number of users and projects. The business is just turning profitable so a lot of the new revenue should fall straight to the bottom line. It’s not yet making a profit.

MFF Capital Investments Limited (ASX: MFF) is a listed investment company (LIC) run by Magellan Financial Group Limited (ASX: MFG) with strong long-term returns. This LIC has the ability to invest in any business in the world for the best investment opportunity.

National Veterinary Care Ltd (ASX: NVL) is a fast-growing veterinary business expanding through acquisitions. Vets have defensive earnings and management have plans to add five or six vets each year over the next two years. It’s currently trading at 25x FY17’s estimated earnings.

Ramsay Health Care Limited (ASX: RHC) is one of the largest private hospital operators in the world. The defensive and growing earnings of healthcare makes this one of the best growth stocks on the ASX in my opinion. Ramsay is trading at 27x FY17’s estimated earnings.

WAM Microcap Limited (ASX: WMI) is the newest LIC run by Geoff Wilson and his investment team. The focus of this LIC is getting back to the WAM roots of small-cap stocks where the team can find the best opportunities. I think this is one to watch.

Foolish takeaway

I think all of these stocks have a great chance of beating the market over the short and long term. Some are ‘riskier’ than others, so my favourite four at the current prices would be WAM Microcap, National Veterinary Care, Ramsay and Challenger.

If you want even more growth ideas, then you should read about these hot stocks.

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Motley Fool contributor Tristan Harrison owns shares of Altium, Challenger Limited, NATVETCARE FPO, Ramsay Health Care Limited, and WAM MICRO FPO. The Motley Fool Australia owns shares of Altium and Challenger 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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