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2 stellar ASX growth shares to buy this week

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If you’re a growth investor, then you’re in luck. This is because there are a number of companies on the Australian share market that have been growing at a strong rate in recent years.

Two that have been tipped to continue this positive form over the long term are listed below. Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is Domino’s. This pizza chain operator has been a positive performer over the last 12 months and delivered strong growth during the pandemic.

But management is resting on its laurels and has bold long term growth plans. Domino’s had a network of 2,668 stores across Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark at the end of FY 2020. It is now aiming to more than double this network to 5,500 stores by 2033.

And that’s just from the markets that it operates in at present. There is speculation Domino’s could expand into new areas over the next decade to boost its growth inorganically.  

Goldman Sachs is positive on Domino’s and its growth prospects. Its analysts have put a conviction buy rating and $88.00 price target on its shares. The broker believes the company has the potential to maintain a double digit operating earnings compound annual growth rate (CAGR) over the medium term.

Xero Limited (ASX: XRO)

Another growth share to look at is Xero. It is a leading cloud-based business and accounting software provider that has evolved into a full service small business solution over the last few years.

This has led to the company recording exceptionally strong customer and revenue growth over. Pleasingly, this has continued in FY 2021. During the first half, Xero recorded a 21% increase in operating revenue to NZ$409.8 million. This was underpinned by a 19% lift in subscriber numbers to 2.45 million thanks to growth across all markets.

Goldman Sachs is also a fan of Xero. It recently initiated coverage on the company with a buy rating and $157.00 price target on its shares. The broker believes Xero can grow its subscribers to 7.4 million by 2030 and generate NZ$3.4 billion in annual revenue from them.

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 February 15th 2021

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 Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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