When it comes to growth shares the Australian share market is not short of them.
But with so many to choose from it can be hard to decide which ones to buy ahead of others.
To narrow things down, I have picked out three shares which I think are arguably the best on the market right now and could provide strong returns in 2020. They are as follows:
Altium Limited (ASX: ALU)
I think there are few shares on the local market that have as strong long term growth potential as Altium. This is because of the company's award-winning printed circuit board design software. I expect demand for the software to grow materially over the next decade thanks to the proliferation of the Internet of Things. This should drive strong profit growth as it scales.
Appen Ltd (ASX: APX)
Another tech company which I think has outstanding long term growth potential is Appen. This is due to its leadership position in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. These markets are expected to grow materially over the long term, which could lead to increasingly strong demand for its services. In addition to this, recent acquisitions look set to widen its margins over the coming years. In light of this, I feel Appen is well-positioned to continue growing its earnings at an above-average rate long into the future.
Nanosonics Ltd (ASX: NAN)
A final growth share that I rate very highly is Nanosonics. It is the infection control specialist responsible for the increasingly popular trophon EPR disinfection system for ultrasound probes. I'm a big fan of Nanosonics due to the quality of this product, its sizeable addressable market, and the recurring revenues it generates from the consumables the system requires. Another reason I'm positive on the company as a long term investment is that management intends to launch several new products in the near future targeting unmet needs. If these are half as successful as trophon EPR then the future will be very bright for Nanosonics.
