I’m always watching quality growth shares I think would be good for my portfolio, I’m particularly interested when they drop in price – it could be a great time to buy.
I usually like to invest in shares that are generally lower-risk but still offer (potentially) high rewards.
Here are three shares I’m close to buying:
Propel Funeral Partners Ltd (ASX: PFP)
Propel is the largest funeral competitor to InvoCare Limited (ASX: IVC) in Australia and New Zealand. It has been listed on the ASX for less than six months and it has fallen from its all-time high of $3.59 to today’s $3.11.
I believe Propel has a good short-term future because it has plans to acquire more funeral operators in Australia and New Zealand. I think it has a good long-term future because according to numbers produced by the Australian Bureau of Statistics, ‘death volumes’ are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050.
WAM Microcap Limited (ASX: WMI)
WAM Microcap is one of the newest listed investment companies (LICs) run by Wilson Asset Management. It focuses on the smallest end of the market, meaning companies with market capitalisations of less than $300 million.
Some of its top holdings include growth ideas like Lifehealthcare Group Ltd (ASX: LHC) and Integral Diagnostics Ltd (ASX: IDX). In FY18 its portfolio has returned 25.1% before fees and expenses. It has just started paying a dividend of two cents per share, so it’s trading with an expected grossed-up dividend yield of 4.14%.
National Veterinary Care Ltd (ASX: NVL)
National Veterinary Care is Australia and New Zealand’s second largest veterinary clinic group. It is steadily growing its veterinary clinic network through acquisitions and improving them with its management service offering.
In its recent half-year result to 31 December 2017 it revealed that revenue had grown by 27.8% and statutory earnings per share (EPS) had grown by 12.3%. National Vet Care could be trading at around 23x FY18’s estimated earnings.
I already own shares of all three but I’m looking to top up at the right price. Of the three I’m drawn to National Vet Care the most because its acquisition strategy could grow the business significantly over the next few years.
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Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited, NATVETCARE FPO, Propel Funeral Partners Ltd, and WAM MICRO FPO. The Motley Fool Australia owns shares of NATVETCARE FPO. 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.