With the S&P/ASX200 (ASX: XJO) index once again charging higher today, it’s a good time to be looking for ASX growth stocks that have the ability to outperform the broader share market. Growth shares have been the place to be over the last couple of years, so keeping your eyes for growth opportunities on the market might still prove a lucrative strategy to hold on to going forward.
With that in mind, here are 2 ASX growth shares I’m watching this week.
Macquarie Group Ltd (ASX: MQG)
Although banking shares are not your typical stocks that come to mind when talking about growth, I think Macquarie breaks the mould. With its international exposure, focus on asset management and world-class investment banking division, I think this ASX bank is a top bet for anyone looking for a large-cap growth stock this week. Macquarie has delivered phenomenal growth over the past decade and MQG shares are up over 26% this year alone (not including dividends).
Speaking of dividends, Macquarie is currently offering a starting yield of 4.54% on current prices. With such a juicy yield, I think Macquarie offers a perfect combination of income and growth for investors this week and is well worth a look.
Afterpay Touch Group Ltd (ASX: APT)
Shares of this former market darling have taken a heavy beating over the last month, falling from a new record-high of $37.41 set in mid-October to today’s offering of $27.24 a share (at the time of writing) – a price level first hit back in May. This correction appears to have been instigated by a bearish broker note from UBS over fears that Afterpay shares had become overvalued.
Whilst I do think that the APT share price had become a little frothy at $37, today’s price might prove to be a good entry point for this buy-now, pay-later company – especially if Afterpay can maintain its phenomenal growth numbers in the UK and US markets, whilst keeping a lid on further regulation of its operations.
I think these 2 ASX growth stocks are some of the best deals going in the share market today. I still think there’s a lot of risk in the Afterpay share price, so Macquarie is my choice of the two this week. But Afterpay has proven everyone wrong before, so take your own pick!
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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. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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.