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.
But in order to maintain a reasonably balanced portfolio, I can’t buy all the growth shares that I would like. Here are three at the top of my list right now:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is a leading gaming technology company which I believe would be a great option for growth investors. As well as designing, manufacturing, and distributing some of the most popular pokie machines in the world, the company has a fast-growing Digital business which has been delivering explosive revenue growth. In the first half of FY 2018 the Digital segment delivered a 230.6% increase in revenue to $428.5 million thanks to a huge lift in its daily active users to 8.3 million. I expect this strong form to continue in the second half.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
While Domino’s may have turned in a disappointing result in FY 2018, it wasn’t as bad as many in the market had expected. Unsurprisingly, this better than feared result has led to its shares rebounding strongly. But although its shares have rebounded, I don’t believe it is too late to pick them up. Especially given management’s long-term growth plans. If it delivers on its plan to almost double its store network within the next seven years then I believe it will result in solid earnings and revenue growth over the period.
Webjet Limited (ASX: WEB)
There are a lot of quality options to choose from in the travel sector but Webjet would have to be my favourite. In FY 2018 the online travel agent delivered a 54% lift in revenue to $291 million and a 63% increase in net profit after tax (before acquisition amortisation) to $55.7 million. The driver of this bumper profit result was the strong bookings growth that its numerous brands delivered. So with management confident that it can continue this level of bookings growth over the medium term, I think Webjet would be a great option for growth investors.
Looking for more growth shares to buy? Then check out the mid cap stars of the future.
We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.
That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.
We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and 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.