If you like to invest in growth shares, then you’re in luck. The Australian share market is home to a number of companies growing at a solid rate.
Two ASX growth shares that could be worth a closer look 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 this pizza chain operator.
It has been growing at a strong rate for a good number of years, albeit with a couple of hiccups along the way.
Pleasingly, Domino’s is well and truly on form at the moment. In February it released its half year results and smashed the market’s expectations.
For the six months ended 31 December, the company reported a 16.5% increase in total global food sales to $1.84 billion. This was underpinned by a combination of strong same store sales growth and the opening of 131 new stores. The latter was impressive given it was during the pandemic.
Even better was the operating leverage it achieved during the half. This led to Domino’s reporting a sizeable 32.8% increase in underlying net profit after tax to $96.2 million.
Looking ahead, the company is confident its strong form will continue in the second half. In fact, management expects an even stronger performance during the half.
Morgans is positive on the company. It has an add rating and price target of $119.00 on its shares.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.
Like Domino’s, Temple & Webster has been growing at a strong rate over the last few years. This was particularly the case during COVID-19 thanks to the accelerating shift to online shopping.
And while its growth may moderate now the COVID tailwinds are easing, it still has an enormous growth runway ahead of it.
This is due to the shift online still being in its infancy for furniture and homewares and its leadership position.
Management is now investing heavily to take take advantage of the shift and cement its position as the market leader. While this will come at the expense of margins, the long term gains make it more than worthwhile.
Morgan Stanley is confident in this strategy. The broker currently has an overweight rating and $15.00 price target on its shares.