2 highly-rated ASX growth shares to buy

Here's why Kogan.com Ltd (ASX:KGN) and this ASX growth share have been tipped as the ones for investors to buy right now…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to boost your portfolio with some quality growth shares, then you might want to take a look at the ones listed below.

Here's why these quality ASX growth shares have been tipped as ones to buy right now:

steps to picking asx shares represented by four lightbulbs drawn on chalk board

Image source: Getty Images

Domino's Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is this pizza chain operator. Domino's has been growing at a strong rate over the last decade thanks to consistent like for like sales growth and the expansion of its store network footprint.

Positively, this strong form has continued in FY 2021. Last month Domino's released its half year results and revealed a 16.5% increase in total global food sales to $1.84 billion.

While its top line growth was impressive, its bottom line was even more so. Thanks to operating leverage, Domino's delivered a sizeable 32.8% increase in underlying net profit after tax to $96.2 million.

But perhaps best of all, is that management is expecting an even stronger performance in the second half. In light of this, Domino's looks set to deliver a bumper full year profit in FY 2021.

Analysts at Macquarie are confident this will be the case. As a result, they have put an outperform rating on its shares and lifted their price target to $120.20.

Kogan.com Ltd (ASX: KGN)

Another ASX growth share that is highly rated is Kogan. Like Domino's, this ecommerce company has been in fine form during FY 2021.

For example, during the first half of FY 2021, Kogan reported a 96% increase in gross sales and a 140% jump in earnings before interest, tax, depreciation and amortisation (EBITDA).

This strong growth was driven by a surge in customer numbers, increased repeat customer rates, acquisitions, and the accelerating shift to online shopping.

One broker that believes Kogan is well-placed for growth over the long term is Credit Suisse. At the start of the month its analysts put an outperform rating and $21.08 price target on its shares.

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

More on Growth Shares

Two smiling work colleagues discuss an investment at their office.
Growth Shares

3 amazing ASX growth shares I'd buy and hold for the next decade

These shares could be worth holding tightly to for the long term.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Growth Shares

$5,000 invested in Droneshield shares 4 months ago is already worth…

Investors will be thrilled!

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »

Increasing white bar graph with a rising arrow on an orange background.
Growth Shares

Here's what I consider to be the very best ASX 200 share to buy in April

This business looks heavily undervalued to me.

Read more »

Scared people on a rollercoaster holding on for dear life, indicating a plummeting share price
Growth Shares

3 reasons to buy this red-hot ASX healthcare stock today

Brokers think the biotech share is gearing up for its next big move.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Growth Shares

2 ASX stocks that could help turn $10,000 into $1 million

I’d think about adding these ASX shares to your portfolio.

Read more »

Part of male mannequin dressed in casual clothes holding a sale paper shopping bag.
Growth Shares

2 ASX financial stocks that could double – or even triple – in value

If sentiment turns and execution delivers, this could be an opportunity investors won’t want to miss.

Read more »

Rising arrows and a 3D chart, indicating a rising share price.
Growth Shares

2 strong Australian stocks to buy now with $8,000

These businesses have a lot of long-term potential.

Read more »