Although last week was a relatively flat one on the ASX, there were some growth shares that did extremely well. Looking for consistent outperformance compared with the market average is what growth investing is all about. So here are 2 ASX growth shares that did just that last week (and the year to date, as a matter of fact) that I’ve got my eye on this week. Look out for the common theme…
Zip Co Ltd (ASX: Z1P)
Zip Co had an amazing week on the ASX last week, with Zip shares going from $3.61 on Monday to close trade on Friday at $4.25 – a rise of 17.73% in just five days! What’s more, this morning we have seen Zip Co shares hit their highest price ever of $4.58, putting the total year-to-date gains for this stock at an eye-watering 316%.
Although there was no specific news out of Zip last week, it appears that the performance of Zip’s payments rival FlexiGroup Limited (ASX: FXL) has boosted the (already red-hot) appeal of the payments sector as a whole. I see plenty of momentum behind Zip now – it’s definitely an interesting one to keep an eye on this week.
Afterpay Touch Group Ltd (ASX: APT)
Yes, you guessed it, it’s all about the payments stocks this week. Although Afterpay didn’t see the same level of gains as Zip last week, the stock still made a new all-time high of $36.65 on Wednesday and closed last week at $36.57 – banking a weekly gain of 10.7%. Afterpay shares have opened slightly lower this morning and are trading for $35.99 at the time of writing.
Afterpay shares were buoyed last week after an initial response from the company to government-body AUSTRAC seemed to indicate that the company’s services have not been implicated in money laundering or any other illegal activities (as some in the government had feared). Thus, Afterpay is another stock I’ll be watching keenly this week.
Both of these stocks have been some of the best performers on the ASX in 2019 so far, and therefore worth keeping a very close watch on if you’re a growth investor, in my view.
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended FlexiGroup 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.