Due to having a higher than average tolerance for risk, I’m a big fan of growth shares.
Which is quite lucky because I think the Australian share market is home to a large number of quality growth shares right now.
Three top growth shares which I think could be in the buy zone are listed below:
Appen Ltd (ASX: APX)
This developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets is one of my favourite tech shares. I think the fact that it counts many of the world’s largest tech companies as its customers is a testament to the quality of its services. With both the machine learning and artificial intelligence markets tipped to grow significantly in the future, I believe Appen is well-positioned for long-term growth. This year the company is on track to grow EBITDA by an impressive 95% year-on-year.
Bingo Industries Ltd (ASX: BIN)
While waste management is nowhere near as sexy as machine learning and artificial intelligence, that doesn’t mean that Bingo Industries wouldn’t be a great option for growth investors. Since listing on the ASX the company has outperformed its prospectus forecasts and looks well-positioned to continue performing strongly for the foreseeable future. Especially given its plan to expand its predominantly NSW-based business nationwide over the next decade. I expect this expansion, population growth, and the industry’s high barriers of entry will allow Bingo to grow its bottom line at an above-average rate.
Webjet Limited (ASX: WEB)
Another company which I think can grow earnings at a strong rate over the medium term is Webjet. The online travel agent has a number of popular brands in its portfolio and all have been growing ahead of the industry average. With the shift to online booking gathering pace, I expect this strong growth will continue for some time to come. This should be supported by the inorganic growth generated from its acquisition of JacTravel.
As well as Appen, Bingo, and Webjet, I think these growth shares could be market-beaters in FY 2019.
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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 Appen Ltd. 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.