If you're a fan of growth shares, then you're in luck. The Australian share market is home to a good number of companies growing their earnings at a quicker than average rate.
Two top growth shares that I think investors ought to consider buying are listed below. Here's why I rate them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
I think this pizza chain operator could be a top option for growth investors. It is the master franchise holder for Domino's in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark. While its shares have been strong performers this year, I would still invest due to its positive long term outlook.
Domino's is aiming to grow its global store network by 7% to 9% per annum for the next 3 to 5 years. At the same time, it is targeting same store sales growth of 3% to 6% per annum over the same period. If the company can deliver on both these targets, then it should lead to strong profit growth over the next five years. This could make the Domino's share price a market beater over the period.
ResMed Inc (ASX: RMD)
Another growth share to consider buying is ResMed. I'm a big fan of the medical device company due to its focus on the growing sleep treatment market. It is also benefiting from increased demand for ventilators at present because of the pandemic.
In respect to the sleep treatment market, the company has previously suggested that there could be upwards of 1 billion people impacted by sleep apnoea worldwide. With the vast majority of these sufferers undiagnosed, it gives ResMed a very long runway for growth in the future. And given the high quality of its portfolio and its high level of investment in research and development, I believe it is well-placed to capture the growing demand. In light of this, I feel the ResMed share price could be a market beater over the 2020s.
