If you have room in your portfolio for a growth share or two, then you might want to take a look at the three listed below.
All three have been named as buys and tipped to deliver strong growth over the coming years. Here they are:
Appen Ltd (ASX: APX)
Appen provides and prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes Amazon, Facebook, Google, and Microsoft. Given the increasing amount of investment being made by businesses on AI, Appen has been growing at a very strong rate over the last few years.
Unfortunately, COVID-19 has impacted the priorities and activities of its major customers and put many major projects on the backburner. However, management is confident that things will return to normal once the pandemic passes.
One broker that believes the recent weakness in the Appen share price is a buying opportunity is UBS. Last week its analysts retained their buy rating and $44.00 price target on its shares following its trading update.
REA Group Limited (ASX: REA)
REA Group is the property listings company behind the market-leading realestate.com.au website. It also owns and operates several international equivalents and recently increased its stake in India-based Elara Technologies.
It has been a strong performer over the last few years despite the housing market downturn and even the pandemic. So, with the housing market tipped to rebound in 2021, its outlook is looking particularly rosy.
Analysts at Morgan Stanley certainly believe this is the case. Thanks to a combination of price increases, volume growth, and good cost control, the broker believes REA Group is well-positioned for growth. It has an overweight rating and $150.00 price target on its shares.
Zip Co Ltd (ASX: Z1P)
Zip is a leading buy now pay later provider with operations across several key markets such as Australia, the United Kingdom, and the United States. Thanks to the growing popularity of the payment method, the decline in credit card usage, and its international expansion, Zip has been growing its customer and sales numbers at a rapid rate.
The company has been tipped to continue its strong growth thanks to the positive industry tailwinds and new product launches. This includes Zip Business and its Tap & Zip product.
Morgans is very positive on its outlook. Last month it retained its add rating and lifted its price target slightly to $9.80.
