While ASX growth stocks make up a fair share of my watchlist, these are the 5 gems I always find myself raving about. Here's why.
WiseTech
It's hard not to be stunned by the performance of WiseTech Global Ltd (ASX: WTC). If you've had this company in your portfolio since the beginning of the year, you would've been rewarded with a whopping 104% return on your investment. Despite having a price-to-earnings (P/E) ratio of 196x, one of the highest in the world, the company's share price still popped 10% on announcing its FY19 results.
The company has an impressive portfolio of clients, servicing 43 of the top 50 global third-party logistics providers across 150 countries. Its flagship product boasts an extremely low churn of just 1%, and its business model to charge customers on a per-use basis means WiseTech grows with its clients. Overall, net profit after tax (NPAT) was up 33%, a fantastic result for a company with an $11 billion valuation.
Nanosonics
In the last 3 weeks, the Nanosonics Ltd (ASX:NAN) share price has risen 26% higher for a $6.18 close on Friday.
This is due to its impressive results over the year, with the company reporting that sales grew 39% to $84.3 million and its global user base expanded by 18% to 20,930 units. This was fuelled by Nanosonics' growing presence internationally, particularly in European countries, including the launch of its trophon2 across Europe, North America and Australia.
Nanosonics beat analyst expectations of NPAT of $10.27 million by a mile, growing NPAT by 137% to $13.6 million. Management is also expecting that the growth of its installed user base will be similar in FY20.
a2 Milk
While A2 Milk Company Ltd (ASX: A2M) disappointed investors with its FY19 earnings, this company is still on my top five due to its aggressive growth to date, and market penetration in China. Its share price is up 26% in the year-to-date with its $13.08 close last Friday.
At the time of writing, a2 Milk's share price has jumped another 4% after news that Bellamy's Australia Limited (ASX: BAL) received a takeover offer from a Chinese dairy product manufacturer. This could be due to market signalling from China that infant formulas are still in high demand on their shores.
Regardless of a slight blip in share price growth, a2 milk grew its earnings before interest, tax, depreciation and amortisation (EBITDA) by 46% and NPAT by 47% over the year. This demonstrates that the company continues to perform outstandingly.
Aristocrat Leisure
Aristocrat Leisure Limited (ASX: ALL) has seen its share price grow 46% year-to-date, closing at $30.78 on Friday.
I like this company because of its commitment to diversifying its revenue channels. As well as a lot machine developer, the company's growth has been in large part due to its digital business including Plarium (Israeli) and Big Fish Games (Seattle). This drove 37% of the growth in its digital segment.
In the 6 months to March, Aristocrat has grown its bottom line by 16.8% and EBITDA by 10.2%. This may be a good time to look into buying Aristocrat shares, as its FY19 result will be announced later this month.
Afterpay
This article would not be complete without mentioning this Australian success story. Afterpay Touch Group Ltd (ASX: APT) has gone through several regulatory roadblocks, but its FY19 results weave together a story of record successes.
The buy-now-pay-later company boasted a 115% increase in revenue, driven by its addition of 12,500 customers every day. Further to this, its entrance to the UK market has been hugely impressive. In just 15 weeks, the company acquired 200,000 users. Most importantly, its late income fee as a proportion of revenue has dropped 5.7% to 18.7%.
It was nothing but good news from this stellar fintech company, and this growth trajectory is expected to stay strong.
