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.
Three growth shares that I think are among the best on the market are listed below. Here's why they could be worth buying:
Appen Ltd (ASX: APX)
The first growth share to consider buying is Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Over the last few years Appen has been experiencing very strong demand for its Content Relevance services from many of the largest technology companies. This has led to impressive earnings growth, which has been boosted further by acquisitions. In FY 2019 the company expects to deliver underlying EBITDA in the range of $96 million to $99 million. This represents year on year growth of 34.6% to 38.8%. I expect more of the same in FY 2020 and beyond thanks to the expected strong growth of the AI and machine learning market.
NEXTDC Ltd (ASX: NXT)
Another growth share to consider buying is NEXTDC. I remain confident that this data centre operator is very well-positioned to capitalise on the cloud computing boom which continues to accelerate. This is because as cloud computing usage increases, demand for its innovative data centre outsourcing solutions and connectivity services is likely to increase with it. I expect this to drive strong earnings growth over the next decade as the benefits of scale take effect.
Nanosonics Ltd (ASX: NAN)
A third growth share to consider buying is Nanosonics. It is a leading infection control specialist which is currently generating all its revenue from its trophon EPR disinfection system for ultrasound probes. This best in class technology has been growing its market share at a rapid rate over the last few years. This has resulted in stellar unit sales and growing recurring revenues from the consumables it requires. Pleasingly, it won't be long until Nanosonics has more products in its portfolio. The launch of the first of a number of products targeting unmet needs is due to be released at the start of FY 2021.
