MENU

3 beaten down growth stars I would buy this week

Although the recent market volatility is disappointing, one positive is that it has pulled down a number of growth shares to more attractive valuations.

Three growth shares that I think are in the buy zone today if you’re investing with a long-term view are listed below. Here’s why I like them:

Appen Ltd (ASX: APX)

This language technology data and services provider’s shares have fallen another 4% on Monday, which means that they have now fallen over 31% since peaking at $16.00 earlier this year. At the current level Appen’s shares are changing hands at under 30x estimated FY 2019 earnings. While this is still a premium to the market average, I believe it is justified due to its long-term growth potential thanks to its exposure to the high growth machine learning and artificial intelligence markets.

Kogan.com Ltd (ASX: KGN)

Kogan.com’s poor run has continued on Monday with a 2.5% decline to $4.86. This means that the ecommerce company’s shares have now shed over 51% of their value since peaking at $10.00 this year. This sharp decline has left its shares trading at 32x trailing earnings or 19x estimated FY 2019 earnings. While the market appears sceptical that Kogan.com will deliver explosive growth again this year, if it does then its shares will almost certainly rerate higher in my opinion. Next month the company will hold its annual general meeting and provide a trading update. Investors may want to wait for this before snapping up shares.

Webjet Limited (ASX: WEB)

This online travel agent’s shares have been dragged lower today due to a weak update from rival Flight Centre Travel Group Ltd (ASX: FLT). I think this 4.5% decline is unnecessary considering the issues at Flight Centre appear to be company specific. In light of this, I feel that Webjet is an attractive option for investors at just 23x estimated FY 2019 earnings. Especially given its strong earnings long-term growth potential.

ASX small cap growth share tipped for big things

Earlier this year, millions of Australians set alarms and watched the world's biggest sporting event, the World Cup, play out. But did you know there was another Australian representative quietly succeeding as the world watched?

It's the start-up who have positioned themselves as the global leader in sports analytics. Motley Fool's resident tech expert has already upgraded the recommendation of this company's stock to a rating of simply "Buy More".

Click here to access this share. It's completely FREE!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Kogan.com ltd 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.

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…

Including:

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!