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3 stellar ASX growth shares to buy in February

If you’re looking to add a growth share or two to your portfolio in February 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 February are listed below. Here’s why I like them:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company would be a great option for growth investors. The infant formula and fresh milk company has been a very strong performer over the last few years thanks to the increasing demand for its products in China and the growing footprint of its fresh milk. I feel confident that this trend will continue for many years to come, which should drive strong earnings growth and returns for investors. Though, with its half year results just around the corner, it may be prudent to wait for that release before investing.

Altium Limited (ASX: ALU)

Although this printed circuit board (PCB) design software provider delivered a reasonably soft half year update earlier this week, I think it is worth looking beyond this and focusing on its strong long term growth potential. Management may have guided to the lower end of its full year revenue guidance range of US$205 million to US$215 million, but it appears confident in achieving its bold FY 2025 targets. This is for revenue of US$500 million, market dominance, and 100,000 subscribers.

Aristocrat Leisure Limited (ASX: ALL)

A final growth share to consider picking up this month is this gaming technology company. I think it could be a great long-term investment option thanks to the quality of its core pokie machine business and the strong growth potential of its digital business. Another positive is its attractive valuation. Despite its positive long-term outlook, Aristocrat Leisure’s shares are currently changing hands at 23x estimated FY 2020 earnings. I think this is good value in comparison to many of its peers.

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As of 13/2/20

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. 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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