If you're looking to add a growth share or two to your portfolio in January then you're in luck.
Right now, I believe there are a number of growth shares on the Australian share market that could generate strong returns for investors over the next few years.
Three to consider buying in January are listed below. Here's why I like them:
a2 Milk Company Ltd (ASX: A2M)
I think this infant formula and fresh milk company is a great option for growth investors. It has been growing its earnings at a very strong rate in recent years thanks largely to the increasing market share of its fresh milk in the ANZ market and the insatiable demand for its infant formula in China. Pleasingly, although it is giving away a little margin to support its long-term growth, management still expects strong growth in FY 2020. At its annual general meeting it advised that it expects EBITDA in the range of NZ$241.8 million to NZ$250 million in the first half. This will be an 11% to 14.5% increase on the prior corresponding period.
Appen Ltd (ASX: APX)
Another top growth share to consider buying in January is Appen. It is a fast-growing developer of high-quality, human-annotated training data for machine learning and artificial intelligence. These markets have been growing at an explosive rate and are tipped to continue doing so for many more years to come. Given how integral its position in the market is, I believe it can continue its impressive form for the foreseeable future.
Aristocrat Leisure Limited (ASX: ALL)
A final growth share to consider buying is this gaming technology company. Although its shares were impressive performers in 2019, I don't believe it is too late to invest. Especially considering both its strong long term growth potential and attractive valuation. I expect Aristocrat Leisure to deliver earnings per share of ~$1.58 in FY 2020. This means its shares are trading at under 22x estimated FY 2020 earnings today. Which I feel is very cheap for its current growth profile.
