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2 rapidly growing ASX shares to buy

A man drawing an arrow on a growth chart, indicating a surging share price
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If you have a penchant for growth shares, then you’re in luck. The Australian share market is home to a good number of companies growing at a quick rate.

Two ASX growth shares that could be worth a closer look are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty could be a growth share to buy. It is Australia’s leading beauty focused e-commerce website delivering an empowering and engaging beauty shopping experience personalised to its customers’ needs.

Since its launch in 2000, Adore Beauty has evolved into an integrated content, marketing, and e-commerce retail platform that partners with a broad and diverse portfolio of over 230 brands and 11,000 products.

At the last count, the company had almost 800,000 active customers. This was up 82% since the end of December 2019, underpinning an 85% increase in first half revenue to $96.2 million. 

Positively, even if you annualise this figure, it is still only a fraction of an Australian beauty and personal care market currently worth ~$11 billion a year. This gives the company a significant runway for growth over the next decade, particularly given the relatively low penetration of online beauty sales compared to other Western markets.

One broker that is confident in its outlook is Morgan Stanley. It currently has an overweight rating and $8.75 price target on the company’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth that could be a top investment option is Domino’s.

Domino’s is the largest franchisee outside of the USA. It holds the master franchise rights to the Domino’s brand and network in Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg and Denmark.

As of the end of the first half of FY 2021, the company had a network of approximately 2,800 stores across the aforementioned markets. From these stores, Domino’s generated sales to $1.84 billion and an underlying net profit after tax of $96.2 million. This was up 16.5% and 32.8%, respectively, over the prior corresponding period.

Positively, Domino’s still has a long runway for growth. Management is aiming to double the size of its network over the next decade in its existing markets. It is also looking for acquisitions and could expand into new territories in the future to give it an even larger opportunity.

Morgans is very positive on the company’s future. So much so, the broker recently put an rating and $119.00 price target on its shares.

Where to invest $1,000 right now

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*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. recommends Adore Beauty Group Limited. 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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