The Motley Fool

3 growth shares now on my watchlist after earnings season

Reporting season is over after a flurry of activity and we can now re-evaluate our portfolios and our watchlists.

I think it’s important to keep updating your watchlist because new shares are always listing, new reports come in every six months and industries can change.

Here are three shares on my watchlist after their reports:

Appen Ltd (ASX: APX)

Appen describes itself as a global leader in the development of high-quality, human-annotated data for machine learning and artificial intelligence.

It had a great result with revenue growing by 50% and underlying net profit after tax (NPAT) growing by 86%.

Every segment to Appen’s business is growing strongly and there’s a good chance Appen will keep doing well for the near future as it provides data for fast-growing industries.

Gateway Lifestyle Group (ASX: GTY)

Gateway is a retirement village operator that is experiencing good growth by opening more villages and increasing its rental income.

The business offers affordable places to live and a very attractive lifestyle for residents. It doesn’t charge entry and exit fees, unlike some of its competitors.

The organic rental increases alone could make this a decent growth stock, the falling house prices could make this business seem very attractive in a year or two.

Crown Resorts Ltd (ASX: CWN)

I had written the idea of growth off for Crown until Crown Sydney opened, but I was pleased to see that Crown had grown its underlying businesses, particularly VIP gaming, again.

Crown is a hard one to judge but I do feel that it should be on my watchlist again because of its underlying growth and long-term potential with Crown Sydney and the new Melbourne hotel.

Foolish takeaway

I’m interested in all three, but there are still little issues that I need to come to terms with about each in the near term. For now, they’re staying on my watchlist until I can justify a purchase for each of them.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia owns shares of Appen 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 Scott Phillips.

Related Articles...

Latest posts by Tristan Harrison (see all)