MENU

Why these market beaters could be the shares to buy

I think that the Australian share market is home to a good number of growth shares with the potential to beat the market over the next few years.

Three potential market beaters that I would buy today are listed below. Here’s why I like them:

A2 Milk Company Ltd (ASX: A2M)

There’s no denying that on paper the shares of this fast-growing dairy and infant formula company look expensive. But I would argue that they are actually fairly valued given a2 Milk Company’s growth potential. Demand for its products from the China market has been growing at an incredible rate and shows no signs of slowing. This should be supported by its rising middle class, the lifting of its one-child policy, and recent regulatory changes that make it harder to sell infant formula in the lucrative market. In addition to this, the company has recently announced plans to expand into South Korea and grown its footprint significantly in the United States.

Corporate Travel Management Ltd (ASX: CTD)

As a leader in a growing and highly fragmented global corporate travel market, I think Corporate Travel Management would be a great buy and hold investment. Earlier this year the company delivered an impressive 33% increase in underlying first-half net profit. Pleasingly, management appears optimistic that there will be more of the same in the second-half and advised that the company is on track to hit the top end of its guidance. This would mean year-on-year EBITDA growth of approximately 27.5%. I suspect it might outperform this guidance.

CSL Limited (ASX: CSL)

This global biotherapeutics company has a solid track record of delivering market beating returns for its shareholders and I don’t expect this to change any time soon. Thanks to the strength of its core business, a growing pipeline of products, and its fledging influenza business, I believe CSL is more than capable of growing its earnings at an above-average rate for the foreseeable future. This could make it a stand out pick for investors, in my opinion.

Looking for more market beaters? Then these stellar growth shares could be exactly what you are looking for.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of A2 Milk. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.