If you're looking to add some growth shares to your portfolio this week, then I would suggest you consider the ones listed below.
I believe these growth shares have the potential to provide strong returns for investors over the next decade. Here's why I would buy them:
Aristocrat Leisure Limited (ASX: ALL)
It has been a difficult year for this gaming technology company because of the pandemic. With most casinos closing during the height of the crisis, demand for its poker machines fell off a cliff. Thankfully, the company's Digital business offset some of this decline after closures and lockdowns sent more gamblers online. The good news is that most casinos around the globe are now open again. I expect this to lead to a resurgence in demand for its machines in 2021 and for its earnings growth to accelerate again.
ELMO Software Ltd (ASX: ELO)
One of my favourite growth shares at the smaller end of the market is ELMO. It is a cloud-based human resources and payroll software company providing businesses with a unified platform to streamline a range of processes. These include employee administration, recruitment, training, and payroll. Demand for its offering has been growing strongly in recent years, even during the pandemic. Pleasingly, this looks set to continue in FY 2021, with management forecasting further strong organic growth. This growth should be boosted by earnings accretive acquisitions in the near future. ELMO finished FY 2020 with a cash balance of approximately $140 million.
IDP Education Ltd (ASX: IEL)
IDP Education is a leading provider of international student placement services and English language testing services. Despite the pandemic bringing parts of its business to a halt this year, it was still able to deliver strong profit growth in FY 2020. While FY 2021 will be tough and trading conditions are likely to remain subdued until the crisis passes, I believe its market position is strengthening and expect IDP Education to come out the other side as a stronger business. Looking further ahead, I believe it is well-placed for long term growth thanks to its sizeable market opportunity and growing software business.
