3 growth shares I’m thinking about buying

The great thing about the share market is that prices are always changing, which means opportunities are always changing as well.

Reporting season has left a number of share prices lower and I think some of them are good long-term opportunities.

Here are three shares I’m thinking about buying soon:

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners is a newly listed funeral operator that has plans to acquire and organically grow its way upwards to challenge InvoCare Limited (ASX: IVC).

Management estimate that it has a 4.1% market share of the Australian funeral industry and 6.7% of the New Zealand funeral industry. I believe that Propel is a slow-burning, yet exciting, opportunity because the number of deaths in Australia is expected to increase by 1.4% per annum until 2025 and then increase by 2.2% to 2050.

The combination of profit margin growth, funeral volume growth and acquisitions should be a big tailwind for Propel’s earnings over the coming years.

Paragon Care Ltd (ASX: PGC)

Paragon is a medical equipment and product distributor. It has a fairly simple investment thesis, it is acquiring other medical equipment businesses to improve its offering to clients and build new relationships, which should boost margins in the long-term.

Over the coming years Paragon should hopefully see increased demand for its items as the number of patients in hospitals and aged care increase due to Australia’s ageing population.

It was only last week that Paragon announced it would be acquiring a surgical equipment business.

BWX Limited (ASX: BWX)

BWX now owns a range of brands that offer consumers ‘natural’ beauty products. Sukin is the largest brand and is growing at a strong pace in Australia and abroad.

The beauty company’s recent half-year report did not go down well with investors, the share price has dropped heavily from above $8 at the start of the year to below $5. Growth was not as strong as expected in the report and the acquisitions may have caused a bit of indigestion.

However, I believe that BWX is only just getting started on the international side of things and I think all of the new acquisitions will help grow Sukin and profit margins. I believe that the current share price is an opportunity.

Foolish takeaway

I’d be happy to buy shares of all three at today’s prices. If I had to pick one I’d choose Propel because the long-term outlook looks very promising, but BWX could also have an excellent 12 months ahead if it can make a quick recovery.

I'm also heavily considering investing more into one of these top stocks.

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Motley Fool contributor Tristan Harrison owns shares of BWX Limited, InvoCare Limited, and Propel Funeral Partners Ltd. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended Paragon Care 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 Scott Phillips.

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