The ASX is on fire – there's no other way to put it. Stocks are now at their highest levels since 2007, and the ASX All Ordinaries (INDEXASX: XAO) index reached a new all-time high last week. To misquote a popular Christmas movie, "growth is all around us". But when it comes to growth stocks, there's growth because the markets are growing, and there's growth because the company is growing. I prefer the latter.
Here are two ASX growth stocks that continue to wow investors with stellar numbers and massive tailwinds.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wines is a great Australian success story – it's a company that continues to tap overseas demand for its quality Australian products. Although it is still a ways from its all-time high of $19.90 (reached last September), the TWE share price is still up 20% for the year so far. Treasury Wines owns a vast portfolio of wine brands, from the famous Penfolds to the (somewhat cheaper) Wolfblass and Yellowglen.
Although the company is keen to show off Australian wines from its vineyards in the Barossa and Hunter Valleys, it also bolsters its stable with wines from the Napa Valley in California, Tuscany in Italy and other famous wine regions around the world. I don't see the world's appetite for good wine subsiding anytime soon and I think Treasury Wines is a good bet for growth.
Magellan Financial Group Ltd (ASX: MFG)
Magellan has been the best performing ASX financial in 2019 so far, with YTD share price growth of 160%. Strong performance of Magellan's investment vehicles (both listed and unlisted) drove funds under management (FUM) growth of 35% over 2018, which shows no signs of slowing down.
Its outperforming funds also translate into higher performance fee collections for Magellan, which come in at a typical rate of 20%. For the same period, Magellan's profits were up an astonishing 62%, which enabled a dividend increase of 66%. Although the stock is looking pricey at current levels, Magellan is definitely a growth train that has shown it can deliver cash handsomely for investors.
Foolish takeaway
Both Magellan and Treasury Wines have enviable track records that make them standout ASX performers. Although both companies have lofty valuations, you can look at this as the market rewarding the durability of their respective growth stories. If you are a growth investor, I would highly recommend keeping both eyes on these two businesses from now on (if you haven't already).
