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Why I would buy a2 Milk Company and 2 more ASX growth shares

There certainly are a lot of quality growth shares to choose from on the Australian share market right now.

Three that I think would be great options for investors are listed below. Here’s why they could be worth considering in January:

A2 Milk Company Ltd (ASX: A2M)

One of the best growth shares on the Australian share market in my opinion is this infant formula and dairy company. Last year the company delivered an impressively strong result and has continued to build on this in FY 2019. Strong demand for its infant formula products in China and market share gains in the ANZ region for its dairy products means that its net profit has jumped 64.5% to NZ$86 million during the first four months of the financial year. I think this level of growth and its strong long term potential makes its shares good value despite trading at a premium of 32x estimated forward earnings.

NEXTDC Ltd (ASX: NXT)

Although this data centre operator’s shares trade on a sky high earnings multiple and therefore are a high risk option, I feel confident that it is well-positioned to deliver long-term earnings growth that justifies this premium. Thanks to the cloud computing boom, NEXTDC has seen customer numbers increase by a compound annual growth rate of 49% and interconnections by a compound annual growth rate of 76% over the last five years. With the boom showing no signs of slowing and more and more data be created by businesses and individuals, I expect demand for NEXTDC’s world class centres will continue to grow for the next few years at least.

Webjet Limited (ASX: WEB)

With its shares down 38% from their all-time high, I think it could be a great time to invest in this online travel agent. Thanks to the growing popularity of its B2C and B2B brands, Webjet has been delivering bookings growth well ahead of the industry average in recent years. Pleasingly, management appears to believe this will continue this year and over the medium term. In fact, it has provided EBITDA growth guidance of 26% in FY 2019, excluding the contribution of its recently acquired Destinations of the World business.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of A2 Milk. 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.

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