MENU

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

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.

Do you have more to invest and are looking for more quality growth shares to buy? Then don't miss out on these four hot stocks.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favorite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!