One thing that the Australian share market certainly isn't short of is growth shares.
These are companies that are growing, or are expected to grow, their earnings at an above-average rate consistently for a number of years.
Seven of my favourites are listed below. Here's why I think they are all worth buying:
A2 Milk Company Ltd (ASX: A2M)
This infant formula and dairy company continues to smash the market's expectations thanks largely to the insatiable demand it is experiencing in the China market. While its shares are starting to look close to fully valued, I think they would still be a great long-term investment.
Afterpay Touch Group Ltd (ASX: APT)
This payment solutions company has delivered incredible growth over the last 12 months. While things could potentially start to slow in the Australian market in the next couple of years, the expansion of the Afterpay platform into the enormous U.S. market could more than offset this if it is a success.
Altium Limited (ASX: ALU)
Thanks to the rapidly growing Internet of Things market, I think this printed circuit board (PCB) design software provider is positioned perfectly to grow at an above-average rate. After all, almost all connected devices require PCBs inside them.
Appen Ltd (ASX: APX)
Due largely to strong demand from the search and social media categories, Appen stunned the market with a 62% year-on-year lift in EBITDA in FY 2017. Incredibly, management expects EBITA growth to accelerate in FY 2018.
Aristocrat Leisure Limited (ASX: ALL)
I'm extremely bullish on this gaming technology company's growth prospects. Although I think its core pokie business remains strong and will deliver solid growth, I expect the growing popularity of its social and mobile gaming portfolio will make its digital segment the star performer.
Bingo Industries Ltd (ASX: BIN)
This waste management company delivered an impressive 37% increase in pro forma half-year net profit after tax to $21.3 million. Whilst I'm sure this growth will moderate slightly in the future, I believe it plan to expand nationwide by 2022 will allow it to deliver above-average earnings growth for the foreseeable future.
Nextdc Ltd (ASX: NXT)
I believe that this data centre operator is one of the best buy and hold options on the local market thanks to the rise of cloud computing and the ever-increasing consumption of data. Its shares may be a little on the expensive side, but with demand for its services growing strongly, I expect it to more than justify the premium.
