Due to having a higher than average tolerance for risk, I’m a big fan of growth shares and you’ll find many in my portfolio.
In order to maintain a reasonably balanced portfolio, I can’t buy all the growth shares that I would like.
But three candidates for my next purchase are listed below. Here’s why I’m interested in buying them:
A2 Milk Company Ltd (ASX: A2M)
I think that a2 Milk Company is one of the best growth shares on the Australian share market thanks to the insatiable demand for its infant formula products in China. Although there have been a few question marks over whether growth is slowing, I suspect this was just a temporary issue caused by its recent packaging rebrand. Because of this I expect the company to return to form and deliver another impressive result in FY 2019 that more than justifies the premium its shares trade at today.
Aristocrat Leisure Limited (ASX: ALL)
My favourite growth share on the ASX would have to be Aristocrat Leisure thanks to its incredible digital segment. As of its first half results the quick-growing segment had a whopping 8.3 million daily active users, up over 400% on the prior corresponding period. The recurring revenues that these users generate are very attractive and likely to be the catalyst for the company growing earnings at a stronger-than-average rate over the coming years.
Webjet Limited (ASX: WEB)
There are a lot of quality options for investors in the travel and tourism industry, but Webjet is my pick of the bunch. I have been very impressed with the online travel agent due to the way it continues to outpace industry bookings growth and smash the market’s expectations. Strong bookings growth allowed the company to deliver a 45% increase in half-year net profit after tax before acquisition amortisation from its continuing operations. I expect more of the same in FY 2018 and next year.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.