Why I would invest $5,000 in these growth shares

NEXTDC Ltd (ASX:NXT) shares are one of three that I would consider investing $5,000 into today. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With interest rates unlikely to improve until late next year at the earliest, if I had $5,000 sitting in a bank account I would consider investing it in some of Australia's top growth shares.

After all, the potential returns on offer from these shares are vastly greater than those of savings accounts or term deposits.

The three top growth shares listed below are the ones I would consider buying this week:

Bellamy's Australia Ltd (ASX: BAL)

This organic infant formula company's shares have come under pressure over the last couple of months after rival A2 Milk Company Ltd (ASX: A2M) provided full-year guidance that was lower than the market expected. While I expect Bellamy's and a2 Milk Company's shares could remain volatile for the next few months, I think in the long-term they will both head notably higher thanks to the insatiable demand for their products in the China market. So with Bellamy's shares trading 24% lower than their 52-week high, I think now could be an opportune time to snap them up with a long-term view.

NEXTDC Ltd (ASX: NXT)

The cloud computing market has been growing incredibly strongly and shows little signs of slowing. I believe this bodes well for data centre operators such as NEXTDC which are likely to see demand for their services rise meaningfully over the next few years. Considering the significant capacity that NEXTDC possesses within its world class data centres that are positioned in strategically important locations across Australia, it is my first preference in the industry. However, its shares have a significant amount of future growth built into them now. This means that there is a risk that failing to deliver on the market's lofty expectations could send its share price notably lower.

Webjet Limited (ASX: WEB)

Recent data from the Australian Bureau of Statistics not only shows that tourism into Australia continues to rise at a solid rate, but tourism out of Australia has been growing at an equally solid rate. And with more and more travellers booking their tickets online, I think this puts Webjet in a position to continue its strong form for the foreseeable future. Earlier this year Webjet delivered an impressive 45% increase in half-year net profit after tax before acquisition amortisation from continuing operations. This was driven by above-average bookings growth across its business.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Webjet 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »