ASX growth shares are having a bumper year.
While many dividend shares have been hammered, growth shares like Afterpay Ltd (ASX: APT) have continued to climb.
I think part of this can be put down to the dividend uncertainty. Investors are happy to take the promise of growth tomorrow compared to buying a dividend share that won't pay out anything today.
That's good news for ASX growth shares across a number of sectors. The tech sector has done well and buy now, pay later is surging higher.
However, I've got my eye on Nextdc Ltd (ASX: NXT) and one other top ASX growth share in the August earnings season.
Why I'm watching Nextdc and one more ASX growth share
I think the Aussie share market is a bit like a tight sporting contest right now. You don't quite know who will win and you just can't look away.
One ASX growth share that I can't take my eye off is Nextdc. The Nextdc share price has had a bullish run in 2020 and is up 83.3% to $11.97 per share.
That's an impressive performance, particularly when you consider the impact of the coronavirus pandemic on the S&P/ASX 200 Index (ASX: XJO).
While the benchmark index slumped in the March bear market, Nextdc shares were one of the standout performers.
I have high expectations for the company's full-year earnings result. Nextdc posted a strong half-year result but I think the growth outlook could be even better in August.
We've seen strong demand for data storage and security services in 2020. A rise in sophisticated cyber-attacks and a shift to remote working have accelerated this growth for Nextdc.
There's no set date for that earnings release yet but Nextdc reported its FY19 earnings on 29 August, so it may be a few weeks away.
I've also got my eye on A2 Milk Company Ltd (ASX: A2M) in August. The ASX growth share has climbed 39.8% this year and is trading just shy of its all-time high.
To many, that could mean that A2 Milk is overvalued. However, I think a strong earnings profile underpinned by growing supermarket sales is the key.
The company is also continuing to pursue its international expansion of the brand into Canada.
Demand for A2 products out of Asia is robust which could generate the cash flow needed to realise its potential future growth.
I think A2 Milk is one of those ASX growth shares that's worth watching this month. The Kiwi dairy group is set to announce its FY20 earnings on 19 August.
Foolish takeaway
These are just a couple of the top ASX growth shares I'm watching this month.
Given the strong share price growth in other sectors like tech, I'm sure we're in for an eye-opening reporting season this month.
