3 strong ASX growth shares for 2020 and beyond

Why Altium Ltd (ASX: ALU), Electro Optic Systems (ASX: EOS) and Audinate Group Ltd (ASX: AD8) are 3 of the leading ASX200 growth shares.

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The ASX200 is feeling the weight of global trade tensions, weak economic data and recession fears. But if there's one thing that I've learned this year is that high quality, well-managed businesses will outperform, regardless of macroeconomic factors.

Here are three ASX growth shares that have a strong business outlook and momentum for 2020 and beyond. 

Electro Optic Systems Hldg Ltd (ASX: EOS

Electro Optic Systems operates in the Aerospace and Defence markets, involved in the development, manufacturing and sale of telescopes, dome enclosures, laser satellite tracking systems and other remotely operated weapon systems. 

In recent news, EOS announced the establishment of a new business segment, EOS Communication Systems. This segment is focused on the development and implementation of satellite communications, to which the business has "identified at least $120bn of satellite communications infrastructure investment over the next 20 years which must be aligned with, and ultimately adapt to, the wave of optical communications capabilities emerging globally." This business segment is expected to be operational from early Q4 2019 and will be cash flow positive from its initiation.

What captured my attention for EOS was its announcement that it had secured enough orders and market momentum to maintain a compounding growth rate of over 45% beyond 2020. While the EOS share price is up more than 70% so far in FY20, I believe its strong growth capabilities and the surging defence sector make it a strong long term play. 

Altium Limited (ASX: ALU

Altium is a household name for ASX investors, however, it strongly aligns with the theme of high quality, well-managed businesses. The company continues to deliver record growth while honing in on its 2020 target of US$200 million revenue, 100,000 Altium Designer subscribers before 2025 and an ambitious revenue goal of US$500 million in 2025. I believe Altium is making great strides in China with 37% revenue growth over the fiscal year, and more growth possibilities coming out of that region. If the business can achieve its aspirational goals, it will deliver favourable shareholder returns. 

Audinate Group Ltd (ASX: AD8)

Audinate is the leading provider of professional digital audio networking technologies globally. Its Dante platform distributes digital audio signals over computer networks and is designed to bring the benefits of IT networking to the professional AV industry. While the company attracts an eyewatering three digit price-to-earnings ratio, it has historically delivered financial year US dollar revenue growth in the range between 26% to 31% and it is anticipated that this trajectory will continue. The reliability of Audinate's growth and marketing leading position in the AV industry makes it a strong long term play. 

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium, AUDINATEGL FPO, and Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended AUDINATEGL FPO. 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.

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