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Smart investors should buy these ASX growth shares

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I believe Australian investors are spoilt for choice when it comes to growth shares.

But with so many high quality and fast-growing shares to choose from, it can be hard to decide which ones to buy.

To give investors a hand, I thought I would pick out three fast-growing companies which I believe could be great investments in August. Here’s why I would buy these shares:

Altium Limited (ASX: ALU)

The first growth share I would suggest investors consider buying is Altium. It is an electronic design software platform provider. The rapidly growing Internet of Things (IoT) and artificial intelligence (AI) markets are causing a proliferation of electronic devices globally. Altium is perfectly positioned to benefit from this due to its leadership position in the electronic design market. Overall, I believe this will allow Altium to deliver on its revenue target of US$500 million in FY 2025. This compares to its FY 2020 revenue of ~US$189 million.

Nanosonics Ltd (ASX: NAN)

Another growth share to consider buying is Nanosonics. I think the infection prevention company is a fantastic long term investment. This is due to the strength and growth potential of its trophon EPR disinfection system for ultrasound probes and upcoming product launches. While not a lot is known about these secretive new products, they are understood to have similar market opportunities to the trophon EPR system. And if they are anywhere near as successful, the sky could be the limit for the Nanosonics share price.

Pro Medicus Limited (ASX: PME)

A final growth share that I would buy is Pro Medicus. It is a leading provider of radiology IT software and services to hospitals, imaging centres, and healthcare companies. Demand for its offering from major healthcare institutions has been growing strongly over the last few years. This has led to stellar earnings growth. For example, in FY 2019 Pro Medicus delivered a massive 91.9% increase in full year profit to $19.1 million. It then backed this up with a 32.7% increase in net profit after tax to $12.1 million during the first half of FY 2020. I suspect the pandemic may stifle its second half growth, but I expect it to rebound strongly once the crisis passes.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

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 and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. 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 Nanosonics Limited. 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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