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3 ASX growth shares to buy with $3,000

If you have room in your portfolio for a few growth shares, then I think the three listed below could be top options.

I believe all three are well-positioned to deliver above-average earnings growth over the next few years and could generate strong returns for investors. Here’s why I’m positive on them and would invest $3,000 across their shares:

Bubs Australia Ltd (ASX: BUB)

The first growth share to look at is Bubs. It is a goat’s milk-focused infant formula and baby food company. Whilst I’ve been a fan of Bubs for a while, it is only really now that I think it is investment grade. This is because for a long time its strong sales growth was coming with significant losses. This led to the company burning through cash at a rapid rate. However, Bubs recently reported positive operating cashflow of $2.3 million on record quarterly revenue of $19.7 million. I’m optimistic the company has now reached a scale which will make its operations more and more profitable over the coming years. As a result, I think it could be a good long term option for investors.

Pro Medicus Limited (ASX: PME)

Another growth share that I think has a lot of potential is Pro Medicus. This healthcare technology company provides radiology IT software and services to hospitals, imaging centres, and healthcare groups. The product in its portfolio that I’m most excited about is the popular Visage 7 Enterprise Imaging Platform. It delivers fast, multi-dimensional images which are streamed via an intelligent thin-client viewer. Demand for Visage 7 has been strong and the company recently announced a major new contract with one of the highest rated hospitals in the United States. In addition to this, it revealed that it has a number of sales opportunities in its pipeline that it is working on. I believe this bodes well for its future growth.

Xero Limited (ASX: XRO)

A final ASX growth share I think investors ought to consider buying is Xero. I think the provider of cloud-based business and accounting software is arguably one of best growth shares on offer on the ASX. This is due to the increasing demand for its platform from small businesses and the stickiness of its product. Combined, they are resulting in significant recurring revenues which I feel are only likely to grow larger in the coming years as more and more businesses move over to the cloud.

And here are more exciting shares which could be stars of the future...

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended BUBS AUST FPO. 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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