I believe the Australian share market is home to a large number of shares that have outstanding long-term growth potential.
Three of my favourite growth shares that I think would make great buy and hold investments are listed below. Here's why I like them:
Aristocrat Leisure Limited (ASX: ALL)
The shares of this leading gaming technology company are trading at a level that I think is very attractive for a long-term investment. Especially given the enormous potential of Aristocrat Leisure's Digital segment. At the last count the segment had 8.1 million daily active users generating significant recurring revenues. I believe it well-positioned to continue adding to its user numbers due to the launch of new games and its increased investment in user acquisition. I'm optimistic this will support the growth of its core pokie machine business and lead to above-average earnings growth over the next decade.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Although I have slight concerns over media reports questioning the profitability of its domestic franchises, a recent note out of Macquarie has suggested that there's nothing to worry about. If this proves to be the case then I think Domino's could be a great long-term investment. This is primarily due to the European market opportunity that it has, which management expects to underpin its plan to nearly double the size of its store network over the next six years.
NEXTDC Ltd (ASX: NXT)
NEXTDC is one of Australia's leading data centre operators with eight centres across five capital cities. Through these centres the company provides enterprise-class colocation services to local and international organisations. Demand for its services has been increasing strongly over the last few years, leading to NEXTDC growing its customer numbers by a compound annual growth rate of 49% and interconnections by a compound annual growth rate of 76% over the last five years. While it is a high risk investment option, I believe it could prove to be a very rewarding over the long-term.
