A new month is here, so what better time to take a look and see if your portfolio could benefit from a few new additions.
If you're looking at adding a few top shares with strong growth potential to your portfolio, then I think the three listed below are worth considering.
Here's why I like them:
Afterpay Ltd (ASX: APT)
I think this payments company would be a great long term option. I expect the success of its international expansion to drive further strong underlying sales and customer growth in FY 2020 and for many years to come. Especially if newly announced substantial shareholder, Tencent Holdings, provides the company with the key to the Asian market. This would potentially put Afterpay on a path to becoming a global payments giant.
Altium Limited (ASX: ALU)
Another option to consider in May is Altium. It is a printed circuit board (PCB) design software provider that appears well-positioned to deliver strong earnings growth over the next decade. Altium has exposure to the Internet of Things market which is expected to grow to be worth US$1.55 trillion in 2025. If this estimate proves accurate, it should lead to increasing demand for its award-winning design software. The company also has a number of supporting businesses, such as the Octopart search engine, which should also benefit from this tailwind and underpin the company's overall growth.
Nanosonics Ltd (ASX: NAN)
A third option to look at is Nanosonics. It is the infection control specialist behind the trophon EPR disinfection system for ultrasound probes. This product has been a real cash cow for the company in recent years, generating significant revenues from both unit sales and recurring consumable sales. While I think this product still has the potential to generate solid earnings growth for the company over the next decade, I'm most excited about the impending launch of new products. These new products are targeting unmet needs and have similar market opportunities. If they are a success, then they could support above-average earnings growth for a long time to come.