The month of October has been hugely disappointing for investors and they will no doubt be glad to see the back of it this week.
I’m optimistic that the market will return to form in November, possibly making it an opportune time to consider picking up shares.
If you’re a fan of growth shares then these are the ones I would buy:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is one of the world’s leading gaming technology companies. In FY 2018 its core pokie machine business has been commanding a growing share of the global market due to the popularity of its products with both casinos and gamblers. This has been underpinned by the incredible growth of its digital business which reported a significant jump in daily active users in the first half thanks to a couple of successful acquisitions. Pleasingly, management believes its digital portfolio is well positioned to address a broad spectrum of opportunities in the US$50 billion mobile gaming market, giving it an extremely long runway for growth. At present its shares are changing hands at just 20x estimated FY 2019 earnings.
Bellamy’s Australia Ltd (ASX: BAL)
Bellamy’s shares have been amongst the worst performers on the market over the last few months due to concerns over the impact of delays to its SAMR (CFDA) approval and lower than expected sales of its Australian label products following the disruption caused by the launch of a new formulation. While this has been hugely disappointing, I think it is well worth holding onto your shares for the long term. Especially after management reiterated its medium term sales target of $500 million by the end of FY 2021 last week. This compares to sales of $329 million in FY 2018.
Webjet Limited (ASX: WEB)
Another growth share that I would consider buying in November is this online travel agent. The recent volatility and a disappointing trading update from its UK partner Thomas Cook have led to its shares pulling back by 29% from their August high. I think that this share price decline has left Webjet’s shares trading at a very attractive level for investors interested in making a long-term investment. This is especially the case given that management appears confident that the company’s numerous brands are capable of delivering bookings growth many times ahead of the industry average over the medium term.
And here is a fourth growth share that I think would be a great option in November.
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.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.