There certainly are a large number of growth shares for investors to choose from on the ASX.
Three which I think are among the best the local market has on offer are named below. Here’s why I would buy them:
a2 Milk Company Ltd (ASX: A2M)
I think a2 Milk Company is a growth share to buy. It has been growing at a very strong rate over the last few years and looks well-positioned to continue this positive trend for some time to come. This is thanks to the strong demand it continues to experience for its infant formula products and its expanding fresh milk footprint. In addition to this, there is speculation that a2 Milk Company could be looking to put its sizeable cash balance to work. This could mean an earnings accretive acquisition will be coming in the near future. Alternatively, there is the option for a2 Milk Company to bolster its portfolio with new product launches.
Appen Ltd (ASX: APX)
Another growth share I would buy is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Appen prepares the data for the models of some of the world’s biggest tech companies such as Microsoft and Facebook. I believe these high quality customers are a testament to the quality of its service. Pleasingly, given the importance of AI and machine learning for businesses, I expect demand for its services to remain strong for a long time to come.
Aristocrat Leisure Limited (ASX: ALL)
This gaming technology company is another growth share which I think could provide strong returns for investors in the future. While Aristocrat’s performance has been impacted greatly by the closure of casinos, I believe it will bounce back strongly when the crisis passes. This is thanks to its industry-leading poker machines and its growing digital business. The latter has been a big winner from the pandemic and is generating material recurring revenues thanks to increased mobile gaming.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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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