I think that Australian growth investors are a lucky bunch given the large number of quality growth shares trading on the local share market right now.
Three which I believe are amongst the best on offer are listed below. Here's why I would buy them:
Altium Limited (ASX: ALU)
I think Altium is one of the best growth shares on the local market thanks to the quality of its design software and its exposure to the Internet of Things (IoT) market. Recent research by Statista estimates that the IoT market will grow from 23 billion devices in 2018 to 75 billion devices in 2025. As the majority of these devices will have printed circuit boards (PCBs) inside them, I expect demand for Altium award-winning PCB design software will increase materially over the next decade. This should lead to strong top line growth and even stronger earnings growth as it scales.
Nanosonics Ltd (ASX: NAN)
Another growth share to consider buying is Nanosonics. It is a leading infection control specialist best-known for its trophon EPR product, which is a best in class disinfection system for ultrasound probes. Demand for the product has been growing very strongly and has led to its installed base increasing significantly over the last few years. The good thing about this is that the product requires consumables to operate. So as its installed base grows, so too do the sales of consumable products. In fact, in the first half the company reported sales of $24.3 million associated with consumables and services. This was up 59% on the prior corresponding period and made up more than half of its total sales during the period. Given its large market opportunity, I expect more of the same in the second half and beyond. This should be supported by management's plan to launch a number of new products in the near term targeting unmet needs.
Webjet Limited (ASX: WEB)
A third growth share to consider buying is Webjet. The leading online travel agent's shares have come under pressure this week after its UK partner Thomas Cook reported a significant deterioration in its performance. According to a note out of Credit Suisse, its analysts don't believe that investors should be concerned by this and still expect the partnership to contribute strongly to Webjet's earnings in FY 2020. I agree with the broker on Webjet and believe the company could be a market beater over the long term thanks to the strong growth potential of its WebBeds business.
