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3 top growth shares I might buy in August

I think it’s a good idea to know which shares you’d buy in the upcoming few weeks so that you don’t have to do research after you have investment cash ready.

Obviously, share prices change all the time so your share target may change if they aren’t as good value.

However, if the prices stay as they are then I’m probably going to buy one of these top growth shares:

Challenger Ltd (ASX: CGF)

Challenger is Australia’s leading annuity provider, it turns a retiree’s capital into a guaranteed source of income. This is a very valuable service as many retirees don’t have the time or skill to know how to manage their retirement money.

Not only is its retiree target age group, over-65s, going to increase by 75% over the next two decades but the government also just introduced new rules in the budget where every superannuation fund must offer its members an option for income for life. This could provide a big boost for Challenger

The share price has fallen back in recent months due to rising interest rates, however its underlying profit is on course for strong rises over the next few years.

It’s currently trading at 17x FY19’s estimated earnings.

Costa Group Holdings Ltd (ASX: CGC)

The food producer is one of the largest fresh food growers. It produces tomatoes, berries, citrus fruit, avocadoes and mushrooms.

It has grown at a good rate since it first listed thanks to organic growth and acquisitions. It’s becoming a global food player and keep could keep producing impressive results as demand increases from the Chinese middle class, general food scarcity and changing healthy food habits in Australia.

It’s currently trading at 26x FY19’s estimated earnings.


The US tech shares have seen a large sell-off since Facebook’s disappointing update. The social media giant is down over 20%, although it is substantially higher than when the Cambridge Analytica scandal was occurring.

Over the long-term I expect that Facebook, Alphabet (Google), Microsoft, Apple and Amazon will keep being long-term winners considering the revenue growth that they are all creating. Short-term issues create good opportunities to buy quality shares at beaten-down prices.

Foolish takeaway

At the current prices I think it will be quite difficult to choose between Costa and Challenger because both of them are trading at attractive value for the long-term growth they are likely to create.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Tristan Harrison owns shares of Challenger Limited and COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS, Challenger Limited, and COSTA GRP FPO. 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.

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