When it comes to growth shares Australian investors sure are a lucky bunch.
I believe the local share market is home to a great number of companies with the potential to grow earnings at an explosive rate.
Five of my favourites are listed below. Here's why I like them:
Altium Limited (ASX: ALU)
I believe that Altium and its printed circuit board (PCB) design software have an extremely bright future thanks to the rise of the Internet of Things. The number of devices connected to the internet is expected to grow exponentially over the next decade. As these devices predominantly have a PCB inside them, I expect demand for its award-winning software will rise strongly.
Appen Ltd (ASX: APX)
As a global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence, I believe Appen is in a position to continue growing at an explosive rate for some time to come. Strong demand this year means that management expects EBITDA growth in FY 2017 to be at the high end of its 40% and 50% guidance range.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
This pizza chain operator's share price has fallen over 42% from its 52-week high of $80.69, leaving its shares trading at just 29x earnings. This is significantly cheaper than where it has traded at in the past and could be a great entry point in my opinion. Whilst its full-year result was a disappointment, I believe the company will come back stronger in FY 2018.
GetSwift Ltd (ASX: GSW)
This delivery management software provider's shares may be trading close to an all-time high, but I believe there is still significant upside potential for them in the long-term. Thanks to a growing number of companies using its software such as Lion Nathan, Red Rooster, Oporto, and Pizza Hut, the number of deliveries it is handling is growing at an incredible pace.
Nextdc Ltd (ASX: NXT)
Last week this leading data centre operator posted a stunning 77% lift in EBITDA to $49 million thanks to a 21% increase in contracted utilisation to 31.5MW. While EBITDA growth is expected to slow in FY 2018, this is the result of investments the company is making to expand its capacity in light of increasing demand. I believe this will result in NEXTDC's earnings growth accelerating again in FY 2019.
