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3 stellar growth shares I would buy today

As an investor that has a penchant for growth shares, I feel quite fortunate to have such a quality selection of them to choose from on the Australian share market.

Three which I think are in the buy zone right now are listed below. Here’s why I like them:

Bellamy’s Australia Ltd (ASX: BAL)

This former market darling’s shares have come under a lot of selling pressure in recent weeks amid concerns that its CFDA accreditation could be delayed for a few months. Without this accreditation the company will be unable to sell Chinese labelled products in the massive China market and could limit its FY 2019 earnings growth. While this is a disappointment, I still believe there is a lot to be optimistic about. Especially if the delay is due the company seeking accreditation for a new formulation. This could be part of a premiumisation strategy aimed at lifting its margins and brand image. So at around 21x estimated FY 2019 earnings and underlying demand remaining as strong as ever, I think it would be a great time to pick up shares with a long-term view.

Megaport Ltd (ASX: MP1)

Megaport is a provider of elasticity connectivity and network services that I believe is poised to be a big winner from the cloud computing boom. Last month the company provided an update which revealed that demand for its services has been strengthening. Megaport now provides services in 221 data centres globally as of the end of June, up almost 40% on the prior corresponding period. Pleasingly, the strong increase in its footprint led to an equally strong rise in its customer numbers. I expect this trend to continue for the foreseeable future.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of the world’s leading data centre operators with a growing network of facilities in strategically important locations across Australia. Earlier this year the company purchased three new commercial property sites for future facilities in Sydney, Melbourne, and Perth. This will lift the size of its network to a total of 11 centres with a planned total capacity of 300 megawatts. I believe this has positioned the company perfectly to capture the growing demand for data services which appear to be accelerating judging by the growth of the cloud businesses of many U.S. tech giants. However, with NEXTDC’s shares changing hands on a sky-high earnings multiple, it does make it a high risk investment.

Looking for more growth share ideas? Then don't miss out on these top picks.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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