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Why I would buy these quality growth shares in September

Tomorrow marks the start of spring so what better time to do some spring cleaning with your portfolio.

If you’re looking for a few new additions, here are two top shares that I would consider buying in September:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies and one of my favourite growth shares on the Australian share market. While the company is best known for its pokie machine business, it has been the success of its Digital business which has largely been the reason its shares have gone gangbusters over the last 12 months. In the first half of FY 2018 the company’s Digital segment delivered a whopping 230.6% increase in revenue to $428.5 million, which means it now accounts for 26% of its total revenue.

I believe that in time the segment will grow to become its largest contributor to revenue, especially given the rapid growth in daily active users. At the last count the company had 8.3 million daily active users generating sizeable recurring revenues. I expect these number to continue growing for some time to come, especially with its strong pipeline of releases. So at around 27x estimated forward earnings, I feel its shares are good value for growth investors right now. I would suggest investors choose Aristocrat Leisure over rival Ainsworth Game Technology Limited (ASX: AGI), despite how cheap the latter is after recent share price declines.

Helloworld Travel Ltd (ASX: HLO)

I think it is fair to say that there are a lot of quality options for investors to choose from in the travel industry. Arguably the most underappreciated share in the industry is Helloworld. The $660 million integrated travel company has been one of my favourite options in the mid cap space for some time now and demonstrated why during earnings season. In FY 2018 the company achieved Total Transaction Value growth of 3.5% to $6.1 billion and a 48.1% increase in profit after tax to $32 million.

In FY 2019 management has provided EBITDA guidance in the range of $76 million and $80 million. This will be an increase of between 16.5% and 23% on FY 2018’s result. Despite this strong result and positive outlook its shares are still changing hands at less than 20x full year earnings. Which is a significant discount to industry peers Corporate Travel Management Ltd (ASX: CTD), Flight Centre Travel Group Ltd (ASX: FLT), and Webjet Limited (ASX: WEB).

As well as Helloworld, here are three mid cap stars of the future to consider buying in September as well.

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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 and has recommended Corporate Travel Management Limited and Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of Helloworld Limited. 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.

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