The Australian share market is home to a good number of growth shares which have the potential to grow their earnings at an above-average rate over the next few years.
Four growth shares that I think are amongst the best on the market are listed below. Here's why they could be worth considering:
Altium Limited (ASX: ALU)
Due to its exposure to the rapidly growing Internet of Things market, I believe this electronic design software company could grow its revenue at a very strong rate over the next decade. And thanks to the benefits of scale, I expect its earnings to grow at even quicker rate. Overall, I feel this could make it one of the best buy and hold growth shares on the market.
Nanosonics Ltd (ASX: NAN)
Another of my favourite growth shares is Nanosonics. I believe the infection control specialist would also be a quality buy and hold option. This is due to the exceptional growth potential of its trophon EPR disinfection system for ultrasound probes. In addition to this, the company is aiming to launch several new products targeting unmet needs in the coming years. If these are half as successful as the trophon EPR, it bodes well for its future growth.
Nearmap Ltd (ASX: NEA)
Nearmap is an aerial imagery technology and location data company. I believe it is well-positioned to deliver explosive growth over the coming years thanks to increasing demand for its services in both Australia and the massive North American market. It is the latter market that I'm most excited about. Nearmap is already generating sizeable recurring revenues in North America despite only penetrating 1%-2% of the market.
Webjet Limited (ASX: WEB)
A final growth share to consider for 2020 is this online travel agent. Due to its fall from grace this year following the Thomas Cook collapse, I believe now could be an opportune time to pick up shares with a long term view. A note out of Ord Minnett this week reveals that it expects the company to grow its EBITDA by a CAGR of ~14% over the next decade. If this proves accurate, then its shares are arguably dirt cheap at current levels.
