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Are these beaten down growth shares in the buy zone?

A number of the most popular growth shares on the ASX have recently hit a spot of turbulence and pulled back significantly from their 52 week highs.

Two top growth shares that have pulled back meaningfully are listed below. Is this a buying opportunity for growth investors?

The Afterpay Touch Group Ltd (ASX: APT) share price is down 26% from its 52 week high of $23.00 despite an impressive 15% gain last week. Profit taking has weighed on its shares since the buy now pay later company raised $117 million via an institutional placement at $17.05 per share late last month.

Those funds were raised so that Afterpay Touch could expand its service into the UK market. I believe the service could be a big success in there and in the U.S., putting the company in a great position to deliver strong revenue growth over the next decade. However, there’s no denying that its shares are high up on the risk scale and have a significant amount of future growth already built in. I would suggest investors consider just a small investment if their risk profile allows it.

The Bellamy’s Australia Ltd (ASX: BAL) share price has plunged a staggering 59% from its 52 week high of $23.07. The catalyst for this decline has largely been unexpected delays in the infant formula company gaining its CFDA accreditation required to sell its Chinese-label products in the lucrative market.

While the delays are certainly a disappointment, I suspect that its accreditation isn’t far from being granted. Once this is granted I believe its sales and earnings will grow strongly, especially given management’s premiumisation plans which should result in higher margins. So with its shares trading at 25x earnings I think now could be a great time to snap up shares. I would choose Bellamy’s ahead of rival A2 Milk Company Ltd (ASX: A2M).

Lastly, here's a third growth share that has been beaten down and could be a bargain buy now.

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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 A2 Milk and AFTERPAY T 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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