With the S&P/ASX 200 (INDEXASX: XJO) index approaching record highs and with interest rates set to continue to fall, the growth investing gravy train has yet to make it last stop. Stocks all over the ASX have made fresh 52-week highs over the last few weeks and there remain many tailwinds to chase in the market going forward.
Here are two growth stocks to keep your eye on this week – both have already shot the lights out this year so far (more than tripling in value), but might have plenty of petrol left in the tank.
Zip Co. Ltd. (ASX: Z1P)
Zip is often thought of as the little brother of Afterpay Touch Group Ltd (ASX: APT), but its share price this year has smashed expectations in its own right. Zip shares started 2019 at $1.10 but today are trading at $3.11, after going as high as $3.98 in May. YTD investors would be sitting pretty on a gain of 183% if they sold out today. There might still be further upside in the Zip Co share price going forward if the company can continue to execute in the lucrative payments sector. Last quarter saw a 20% increase in revenue, and with Zip recently signing deals with retail giants Bunnings and Chemist Warehouse, there might be a lot further for Zip to run.
Bubs Australia Ltd (ASX: BUB)
The Bubs share price has been another triple-bagger in 2019 so far. Bubs shares started out the year at 0.46 cents per share, but today are trading for $1.18 each, after hitting $1.62 in early May. Bubs has actually been around since 1993 and are in the business of making infant formulas and other organic milk and baby foods. The company has really got investors interested with its progress in the Chinese market, with Bubs signing on with Chinese e-commerce king Alibaba to distribute many of its products in China. If Bubs can make significant headway into the lucrative Chinese market, its shares might be looking pretty cheap on today's standards.
Foolish takeaway
With growth investing, it's usually part of the game to ride the kind of massive sentiment waves that both of these stocks have been surfing this year (even if they are driven by excitement and euphoria rather than fundamentals). If good numbers continue to come out of Bubs and Zip, this sentiment will probably continue to make new highs on these growth stocks.
