Looking to add some growth shares to your portfolio this week? Then I think the three ASX growth shares listed below would be worth considering.
Here’s why I think they could generate strong returns for investors over the long term:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share to consider buying is Domino’s. I think the pizza chain operator would be a great long term option for investors due to its strong brand, popular product, and its positive long term growth outlook. The latter is thanks partly to management’s bold expansion plans. Over the next five years Domino’s is aiming to deliver annual organic new store additions of 7% to 9%. It is also targeting annual same store sales growth of 3% to 6% over the same period. It if achieves both and at least maintains its margins, this will underpin strong earnings growth for many years to come.
NEXTDC Ltd (ASX: NXT)
Another growth share to consider buying is NEXTDC. I’m a big fan of the data centre operator and believe it is perfectly positioned to capitalise on the cloud computing boom. A boom which has accelerated because of the pandemic. This could mean technology research firm Gartner’s prediction that 80% of all organisations will shift their workloads to third-party data centres by 2025, happens even sooner. Overall, I expect this to lead to increasing demand for its innovative data centre outsourcing solutions and underpin solid earnings growth as the company scales.
ResMed Inc. (ASX: RMD)
A final ASX growth share I would buy is ResMed. The medical device company has been growing at a strong rate over the last decade and I’m confident this will continue in FY 2021 and beyond. This is due to its focus on the sleep treatment market and the proliferation of obstructive sleep apnoea, which is driving increasing demand for its masks and software solutions. In addition, a second wave of coronavirus in a number of key markets looks likely to lead to strong ventilator sales in the near term.
These 3 stocks could be the next big movers in 2020
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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and ResMed Inc. 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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