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.

Motley Fool Australia Issues Rare "Double Down" Buy Alert

Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.


This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.

Simply click here to get started and access our secure sign-up page.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!