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Why I would buy Domino’s and this exciting ASX growth share

Domino's Pizza share price

One thing the Australian share market is certainly not short of is growth shares.

But with so many to choose from, it can be hard to decide which ones to buy.

To help you narrow things down, I have picked out two quality ASX growth shares that I think are in the buy zone.

Here’s why I would buy them for the long term:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator has been an exceptional performer over the last 10 years. During this time, the company has generated market-beating returns for investors thanks to the growing popularity of its pizzas and the expansion of its store network.

The good news is that I believe Domino’s is well-positioned to replicate this success over the next 10 years. Especially given management’s plan to grow its store network to 5,500 stores by 2033. This is more than double the 2,668 stores it had operating at the end of FY 2020. I think this could make it a great buy and hold option for investors.

ELMO Software Ltd (ASX: ELO)

Another ASX growth share I would buy is ELMO Software. It is a cloud-based human resources and payroll software company which provides businesses with a unified platform to streamline their people, process, and pay. It operates on a software-as-a-service business model based on recurring subscription revenues.

ELMO was a strong performer in FY 2020 despite the pandemic. It delivered annualised recurring revenue (ARR) of $55.1 million, which was up 19.7% year on year. Pleasingly, more of the same is expected in FY 2021. Management expects to grow its ARR organically to the range of $65 million to $70 million. This will be an 18% to 27% increase year on year. However, this doesn’t include acquisitions. ELMO is sitting on a cash balance of $139.9 million, the majority of which is likely to be deployed on value accretive acquisitions in the near term.

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 Elmo Software. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and Elmo Software. 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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