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3 growth shares I’m tipping to beat the market in 2018

With the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) recently breaking through the 6,000 points mark and the bull market showing no signs of slowing any time soon, I believe that many of Australia’s growth shares have a great chance of continuing their outperformance.

With that in mind, three growth shares which I think are great investment options today are as follows:

Afterpay Touch Group Ltd (ASX: APT)

Thanks to an incredible rise in transactions and a series of key client additions including Kmart and Jetstar, investors have been fighting to get hold of Afterpay’s shares. Its recent quarterly update revealed that underlying annualised sales are now tracking in excess of $1.5 billion based on its recent monthly performance. I expect this could accelerate as more retailers come on board in time for the peak Christmas trading season. I feel confident that Afterpay is here to stay and will only get stronger in the future, especially given how frequently I hear people use its name as a verb now.

Aristocrat Leisure Limited (ASX: ALL)

Although this gaming technology company’s shares are close to an all-time high and up 53% year-to-date, I believe they can still climb higher over the next 12 months thanks to the continued success of its digital segment. Not only is the segment growing the number of daily average users, but it is managing to generate more and more revenue out of each of these users. The digital segment will be given a boost in FY 2018 thanks to the recent acquisition of Plarium for US$500 million. This acquisition will see the popular Vikings: War of Clans mobile game added to the company’s portfolio.

Treasury Wine Estates Ltd (ASX: TWE)

This wine company’s shares have also gone gangbusters this year and risen almost 48%. It isn’t hard to see why, either. Strong demand from the United States and China led to Treasury Wine reporting an impressive 36% jump in earnings before interest, tax, SGARA and material items (EBITS) on a reported currency basis. More of the same is expected in FY 2018 thanks to strengthening demand and a disappointing harvest for European producers. I believe this goes some way to justifying the premium its shares trade at today.

As well as Aristocrat, Afterpay, and Treasury Wine, I think these small-cap stars could be market-beaters in 2018.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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