If you’re a fan of growth shares then you’re in luck because I believe the Australian share market is home to a large number of quality companies capable of growing at a strong rate over the long term.
Five top growth shares that I would consider buying for FY 2020 are listed below. Here’s why I like them:
a2 Milk Company Ltd (ASX: A2M)
I believe this infant formula and fresh milk company is well-placed to grow at a strong rate over the next decade thanks to the increasing demand for its infant formula products in China and its expanding footprint in the U.S. market. This could make it worth considering an investment with a long term view.
Altium Limited (ASX: ALU)
This award-winning printed circuit board (PCB) design software provider is one of my favourite growth shares on the local market. It has been growing at an impressive rate over the last few years and looks well-positioned to continue its strong form for some time to come thanks to the Internet of Things boom.
Cochlear Limited (ASX: COH)
Due to its position as a market leader in a structural growth market which has high barriers to entry and attractive demographics, I think this manufacturer and distributor of cochlear implantable devices is capable of growing its earnings at an above-average rate over the next decade. This could make it well worth considering in FY 2020.
ResMed Inc. (ASX: RMD)
As with Cochlear, I believe this sleep treatment specialist is well-placed to deliver strong long term growth. This is due to its leading position in a market which is expected to increase materially over the next decade as more and more people are diagnosed with sleep apnoea.
Xero Limited (ASX: XRO)
A final growth share to consider buying is this leading cloud-based business and accounting software provider. It has been growing strongly over the last few years thanks to strong demand for its software. And due to the quality of the product and its sizeable global market opportunity, I feel confident this strong growth can continue for some time to come.
And here are a sixth and a seventh growth share which are arguably must-buys in FY 2020.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium, Cochlear Ltd., and Xero. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. 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.