If you are looking to build your ASX share portfolio, then I'd recommend taking a close look at the following two ASX growth shares. These are both on my buy list right now and here's why.
Image source: Getty Images
2 ASX growth shares to consider buying in August
a2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price has continued to climb higher in recent months, despite the challenges posed by the coronavirus pandemic. Since the beginning of this year, the a2 Milk share price has risen from $14.30, to now be trading at $18.96. That's an increase of nearly 33%. a2 Milk continues to experience strong demand for its milk products across both its local and global markets. In particular, the company has seen strong recent demand for its infant nutrition products sold in both Australia and China.
I believe that a2 Milk is well placed to deliver strong growth over the next five years, driven by its expanding overseas operations. In particular, the massive markets of both China and the United States remain largely untapped for a2 Milk.
I also feel that a2 Milk has a slight competitive edge over other infant formula providers such as Bubs Australia Ltd (ASX: BUB) and Nuchev Ltd (ASX: NUC), due to its well-established brand name and entrenched market position.
Pushpay Holdings Ltd (ASX: PPH)
Another ASX growth share that has seen strong share price growth so far this year has been Pushpay. Despite a dip in the early phase of the pandemic, the share price of this donor management platform provider has risen from $3.92 at the beginning of the year, to now be trading at $7.50. That's a whopping increase of over 91%. Recent revenue and subscriber growth has been very strong for Pushpay. Operating revenue increased by 33% to US$127.5 million for the 12 months to 31 March 2020, while total processing volume increased by 39% during that time. Growth has accelerated during the pandemic, due to the closure of many churches across the US.
I am confident that Pushpay is well placed for strong growth over the next five years, as it acquires further market scale. Pushpay acquired rival, Church Community Builder, at the end of 2019. This will provide it with a strong platform for growth over the coming years.
Foolish takeaway
Both a2 Milk and Pushpay are 2 ASX growth shares that have strongly outperformed the S&P/ASX 200 Index (ASX: XJO) so far this year. I believe that both companies are well placed for above average share price growth over the next 3 to 5 years, with each strongly positioned to gain further market share in their respective operating markets.
