I think the start of a new financial year is a great time to take a look at your portfolio and make any necessary changes.
If you've decided that you want to add a growth share or two to it, then the shares listed below could be great options.
Here's why I think they could outperform in FY 2020:
Aristocrat Leisure Limited (ASX: ALL)
I think this gaming technology company could be a market-beater in FY 2020 due to the quality of its businesses and its attractive valuation. At present its shares are changing hands at 23x estimated full year earnings. I think this is very good value given the strong growth potential of both its core pokie machine business and its fast-growing digital business. In respect to the latter, at the end of the first half of FY 2019, the digital business had 8 million daily active users each spending on average 38 U.S. cents per day. I believe the business can build on this and grow strongly over the next decade thanks to the growing social and mobile market and its pipeline of games.
REA Group Limited (ASX: REA)
Another growth share that I feel is poised to outperform is REA Group. This is because many property experts are tipping the housing market to rebound in FY 2020. Given that REA Group has still managed to deliver strong profit growth in FY 2019 despite the housing market downturn, I believe the company's earnings growth could accelerate this financial year if house prices recover and drive strong listings growth.
Webjet Limited (ASX: WEB)
A final growth share to consider buying is this online travel agent. At just 21x estimated full year earnings, I believe Webjet's shares are trading at an attractive level based on its current growth profile. At present the company is focused on transforming from an "8/5/3" structure to an "8/4/4" structure. This refers to its target of 8% revenue/TTV, 4% costs/TTV, and 4% EBITDA/TTV. Combined with the increasing demand for its services and the shift to online booking, I believe Webjet is well-positioned for strong long-term growth.
