When it comes to growth shares, I think Australian investors are spoilt for choice on the ASX. But with so many to choose from, it can be hard to decide which ones to add to your portfolio.
With that in mind, I thought I would take a look at three popular growth shares to see if they were in the buy zone.
Should you buy the following three growth shares?
a2 Milk Company Ltd (ASX: A2M)
The a2 Milk Company is a leading infant formula and fresh milk company which has been growing at an astonishing rate over the last few years. Pleasingly, this strong form has continued in FY19. The company recently released its third-quarter update, which revealed further market share gains in China and the ANZ region. This ultimately led to the company reporting a 42% increase in revenue for the first nine months of FY19 to NZ$938 million. Due to the growing demand for its infant formula in China and its expanding presence in the United States, I feel the company is well-positioned for further strong growth in FY20 and beyond.
Bravura Solutions Ltd (ASX: BVS)
This fintech company is one of my favourite growth shares on the Australian share market. This is because I believe the provider of software products and services to the wealth management and funds administration industries has outstanding long-term growth prospects thanks to the quality of its products, its sizeable market opportunity and potential earnings accretive acquisitions. Bravura Solutions recently raised $165 million through an institutional placement. The proceeds will be used to expand the presence of its increasingly popular Sonata wealth management platform into new markets and to fund the proposed acquisition of GBST Holdings Limited (ASX: GBT).
Domino's Pizza Enterprises Ltd (ASX: DMP)
I think that this pizza chain operator could be a good option for growth investors. However, I would only buy its shares if you were prepared to make a long-term buy-and-hold investment. In the short-term, I suspect its shares could be reasonably volatile, but I remain confident that over the long-term they will take an upwards trajectory. This is due to the company's bold plan to double the size of its store network by 2028. If it achieves this then I expect it to lead to above-average earnings growth over the next decade.
