The Australian share market is home to a good number of growth shares which I think have the potential to generate strong returns for investors over the remainder or the year and in 2020.
Five of the best are listed below. Here's why I would want them in my portfolio next year:
A2 Milk Company Ltd (ASX: A2M)
I believe this infant formula and fresh milk company is well-placed to continue its strong form in FY 2020 thanks to increasing demand for its infant formula in China, fresh milk market share gains in Australia and New Zealand, and the expansion of its fresh milk footprint in the United States. In FY 2019 the same drivers led to the company delivering a 41.4% increase in revenue to NZ$1,304.5 million and a 46.1% increase in EBITDA to NZ$413.6 million.
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software company which I believe could provide strong returns for investors over the next few years. This is due to the company's industry-leading software and its exposure to the rapidly growing Internet of Things market. In addition to this, I believe its fledgling Octopart business has a lot of potential and should complement the growth of its core business.
Appen Ltd (ASX: APX)
Another tech company which I think has significant long term growth potential is Appen. It is a leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. As with Altium, it has been growing at a very strong rate in recent years and looks well-positioned to continue this trend for some time thanks to the expected growth of the markets it operates in.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company. I believe it has very strong long-term growth potential thanks to its massive opportunity in the North American market and potential expansions into other territories. In addition to this, the launch of several news products looks like it could be the catalyst for further strong customer and sales growth in the near term.
Webjet Limited (ASX: WEB)
A final growth share to consider buying is this online travel agent. Because of its positive outlook thanks to its fast-growing WebBeds business and the launch of its Rezchain and Rezpayments technologies, I think Webjet is well-placed to continue growing its bottom line at an above-average rate over the next few years. Another bonus is that recent share price weakness means its shares are trading at a very attractive level now.
