In my opinion the Australian share market is home to several high-quality growth shares that I believe would be great additions to the average portfolio.
These shares may be trading at a premium to the rest of the market, but I believe their growth prospects over the next three to five years more than justifies this.
If your risk profile allows it, I would suggest you take a closer look at the three shares listed below:
A2 Milk Company Ltd (ASX: A2M)
This infant formula and dairy company's shares were sold off in May after its guidance revealed explosive growth that wasn't quite as explosive as the market was anticipating. Despite recovering slightly in recent weeks, its shares are still down almost 19% from the all-time high they made in March. I believe this selloff was a bit of an overreaction and has arguably created a buying opportunity for investors that are willing to hold onto its shares for the long-term.
Aristocrat Leisure Limited (ASX: ALL)
At 28x estimated full-year earnings I think Aristocrat Leisure is one of the more reasonably priced growth shares on the local market. Especially considering how it grew net profit before amortisation by over 32% in the first-half and looks set to continue this strong form in the second-half thanks to a weakening Australian dollar, its market-leading pokie machine business, and the meteoric rise of its digital segment. The latter segment generated 33.7% of its total revenue in the first-half due to an increase in daily active users by over 400% to 8.3 million.
Blackmores Limited (ASX: BKL)
Unlike a2 Milk and Aristocrat Leisure, Blackmores has been a bit of a disappointment in FY 2018 due to supply issues. But management appears confident that this is only a temporary headwind and expects further improvements to be made in the coming months. I believe this could mean a return to form in FY 2019, which is why I feel it could be worth getting in now. However, due to its mixed performance of late, it may be prudent to limit it to just a small investment now and then revisit the company post-earnings season.