I think there are a large number of quality growth shares for investors to choose from on the Australian share market.
Three of the most popular growth shares on the local market right now are listed below. Should you buy their shares?
A2 Milk Company Ltd (ASX: A2M)
I think that this infant formula and dairy company could be a great option for growth investors. Last month a2 Milk Company released a trading update which revealed that its share of the Chinese infant formula and Australian fresh milk markets had continued to grow over the last quarter. This appears to have eased concerns that its sales in China were struggling from increased competition. While its shares are likely to remain reasonably volatile in the short term, I think patient buy and hold investors could do very well with an investment.
Blackmores Limited (ASX: BKL)
This health supplements company has fallen out of favour with investors following a disappointing FY 2018. Thankfully, Blackmores recently released its first quarter update which revealed that things have improved in the first quarter of FY 2019. It posted a 15% increase in revenue to $154 million and a 7% lift in net profit after tax to $16.5 million. While this is certainly a step in the right direction, at 31x trailing earnings I think its shares are a little on the expensive side. In light of this, I would suggest investors hold out for a better entry point.
Webjet Limited (ASX: WEB)
One of my favourite growth shares on the Australian share market would have to be this online travel agent. It has been growing its bookings at an impressive rate over the last few years and continues to target growth many times greater than the industry average. I believe the company is well-positioned to achieve this, especially given the recently announced acquisition of Destinations of the World. This acquisition is expected to bolster its B2B business and cement its position as the second biggest player in the market. I would class its shares as a buy.
