ASX growth investing has definitely been the strategy that has paid off the most over 2019 so far, and for the last 12 months at that.
If you are unfamiliar with growth investing, its central tenet is to find fast-growing companies that have strong tailwinds and buy in for the ride. For the more risk-averse investor out there, you can also try momentum investing, which involves looking for stocks with positive pricing momentum (basically finding the stocks that everyone else is piling into and joining in).
With the sharemarket approaching its record high and strong short-term tailwinds for shares, now is a great time to be a growth investor. Here are my two ASX growth picks to keep an eye on this week.
Evolution Mining Ltd (ASX: EVN)
Evolution is a mid-cap ($8.2 billion) gold miner founded in 1998 and boasts five mine sites around the country, with three in Queensland. Evolution has grown rapidly over the past five years to become the third largest gold miner on the ASX. You could have picked up Evolution shares for around 50 cents back in 2014, but today an EVN share will cost you $4.92 (at the time of writing).
With predictions of interest rate cuts over in the United States (US) and the ongoing train wreck that is Brexit, I see significant further upside in the gold price over the short- and medium-term and thus even bigger upside in Evolution as a gold miner.
Cochlear Limited (ASX: COH)
Cochlear is famous for its hearing products that continue to save the hearing of many thousands of people. Over the last three decades, the company has proved it has what it takes to remain on the pioneering edge of healthcare with its significant R&D program and now supplies its products on every continent on the planet, with the lion's share of the global hearing-aid market.
Cochlear is one of those rare shares where yesterday was (usually) always the right time to buy. Cochlear shares have an almost perfect upward trajectory for twenty years, and any dips or pullbacks represent a significant buying opportunity (in my opinion). Cochlear shares are already up about 25% for the year so far, and show no signs of slowing down, today opening for $218.80 a share.
Foolish takeaway
Both of these companies have proven to be of high-quality and both show significant further earnings potential. Evolution is definitely the more speculative play right now, but (in my opinion) either of these picks would be great options for a growth investor to consider this week.
