2 ASX growth stocks I'm watching this week

REA Group Ltd (ASX: REA) is one of the growth stocks on my ASX watchlist this week

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With earnings season underway and the S&P/ASX 200 (INDEXASX: XJO) index stabilising after the trade war-induced volatility of last week, it may just be a good time to jump back into growth stocks. Although 'the usual' growth stocks like Pro Medicus Limited (ASX: PME) were hit hard by last week's volatility, this is the price you pay for being a growth investor. It also means that it might be a great time to 'buy the dip', so here are two ASX growth stocks I've got my eye on this week.

REA Group Ltd (ASX: REA)

REA shares were hit hard last week, falling from around $100 at the end of July to just over $91, but this week the share price has almost reversed last week's falls on the back of yet another successful earnings report released on Friday. REA reported revenue of $875 million for the year (up 8%) and a 6% rise in earnings per share. This result was on the back of a wobbly year for Australian property prices, which further highlights the strength of REA's business model and its 'economic moat' in the classifieds sector.

Although REA has had an incredibly strong year so far (with shares up more than 30%) I still think there is plenty of petrol left in the tank for this growth stock (which is up almost 5% today already)

JB Hi-Fi Ltd (ASX: JBH)

JB is one of those businesses that has had predictions of doom following it around for a long time. First it was the death of CDs and physical music (JB's vinyl business is booming) then DVDs and computer games. After that, it was the Amazon Australia launch two years ago that sent investors under the bed. JB has weathered all of these storms and gone from strength to strength, making it a top growth stock for me. Although there's no doubt sales of physical entertainment media are not what they were, JB saw the writing on the wall years ago and now sells all manner of home appliances, phones, and computer accessories at very competitive prices.

JB shares are up 40% for this year alone and yet still pay a 4.5% dividend yield on current prices. JB's resilient business model and strong share price gains this year places it high on my watchlist.

Foolish takeaway

Both of these stocks have demonstrated the kinds of traits you find in a high-quality business and so make fine growth stocks to keep an eye on this week. REA is your more 'traditional' growth stock but JB also has what it takes to be a standout performer in my view.

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended REA Group Limited. 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.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »