If you're looking to add growth shares to your portfolio after the market crash, then you're in luck.
During the last few months a number of top growth shares have been sold off by investors. I believe this has left them trading at attractive levels for a long term investment.
Two top growth shares which have been beaten down and could be bargain buys are listed below. Here's why I like them:
Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company's shares have fallen heavily during the coronavirus crisis and are currently trading 35% lower than their 52-week high. Investors have been selling Aristocrat Leisure's shares due to concerns over the impact of casino closures on its pokie machines business. While these concerns are not unwarranted, I believe this side of the business will bounce back once casinos reopen and tourism returns to normal.
In the meantime, the company's Digital business is cushioning the blow. This side of the business has a portfolio of lucrative mobile and social gaming apps which have millions of daily active users generating significant recurring revenues. In FY 2019 the Digital segment recorded $1.23 billion of bookings and $370 million segment profit from its 7.5 million daily active users. I expect the closure of casinos and lockdowns to lead to increasing usage of its apps and drive strong segment sales and profit growth.
SEEK Limited (ASX: SEK)
This job listings company's shares have fallen heavily over the last three months and are now down 30% from their 52-week high. Investors have been hitting the sell button due to the negative impact the pandemic is having on listings volumes. For example, during the week ended March 29, SEEK revealed that its ANZ and Asia billings were down 60% on the prior corresponding period.
While this is disappointing, listing volumes will inevitably start to recover again in the coming months as the crisis clears. This could make it worth taking advantage of its recent share price weakness to make a patient long term investment. Especially given the enormous promise of its international operations which are expected to play a key role in the company achieving revenue of $5 billion later this decade. This compares to the revenue of $1,537.3 million it achieved in FY 2019.
