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3 buy-rated ASX growth shares for investors in May

ASX shares profit upgrade chart showing growth
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If you’re a growth investor, then you’re in luck. The local share market is home to a number of top companies that have the potential to grow strongly in the future.

Three top ASX growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is this gaming technology company. While Aristocrat’s performance has been impacted greatly by the closure of casinos, it is beginning to rebound now the crisis is easing and casinos are reopening. Looking ahead, it looks well-placed for growth over the long term thanks to its industry-leading poker machines and its growing digital business. The latter has been a big winner from the pandemic and is generating material recurring revenues thanks to increased mobile gaming.

Citi is positive on Aristocrat Leisure. Its analysts currently have a buy rating and $40.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

NEXTDC is a leading data centre operator which has been benefiting greatly from the increasing amount of data being generated by consumers and businesses. This has certainly been the case during the pandemic thanks to the accelerating shift to the cloud. This led to a surge in demand for data centre capacity, underpinning strong revenue and operating earnings growth. Another positive is the significant amount of its future capacity already contracted, which will be supportive of growth over the next few years. This could be boosted further by its potential expansion into Singapore and Tokyo.

UBS is a fan of the company and has a buy rating and $15.40 price target on its shares.

Zip Co Ltd (ASX: Z1P)

A final growth share to look at is this buy now pay later provider. It has been growing at a rapid rate in recent years thanks to the growing popularity of the payment method and its international expansion. The latter has been a huge success thanks to its US-based QuadPay business. Pleasingly, QuadPay has a $5 trillion market opportunity, which gives it a significant runway for growth over the next decade. Zip has also recently launched in the UK market and has its eyes on further expansions in the near future.

Citi is also positive on Zip. Last month the broker upgraded its shares to a buy rating with an $11.30 price target.

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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