Volatility in share markets, in times such as the past 18 months, can be nerve-wracking for investors with growth stocks.
So sometimes it can be comforting to hear some advice from experts about which ones they think can sustain their momentum.
Two prominent fund managers each picked out an ASX share that they thought could keep up double-digit earnings growth in the coming years.
Still early days for Temple and Webster
Sage Capital portfolio manager Kelli Meagher reckons Temple & Webster Group Ltd (ASX: TPW) won't see double-digit growth this financial year but will do so in subsequent years.
"It's enjoyed a huge amount of growth during COVID-19," she told Livewire.
"The other reason, though, that their earnings will not grow this next year is because they're choosing to reinvest back into the business to really grow their brand presence and their IT. They're doing some really cool things with artificial intelligence to shore up their growth profile."
The furniture retailer is in the "early stages of penetration" in Australia, giving it a massive addressable market still to grab.
"Australia is way behind the US in terms of per cent of the market that is online — we're about 9%. The US is more than double that at about 25%," Meagher said.
"The industry will move online… and Temple and Webster, as the largest player in that industry, is going to continue to grow really strongly."
The foundations are now set up for double-digit growth for patient investors, according to Meagher.
"It makes a profit, it's debt-free," she said.
"It generates a lot of cash, can self-fund its growth, and I think that it's one that you can pop in the bottom drawer and wake up in five years and you will have made a lot of money."
Temple and Webster shares lost 1.53% on Wednesday, but have gained more than 62% over the past 12 months.
COVID-19 is driving people to cars
Airlie Funds portfolio manager Emma Fisher is a fan of car dealership and parts retail network PWR Holdings Ltd (ASX: PWH).
"It's a bit of an under the radar, smaller market cap business," she told Livewire.
"But I think it's one for the bottom drawer for the next 10 years."
According to Fisher, a big money-spinner for PWR is providing cooling systems for motorsports.
"They supply every Formula 1 team," she said.
"That tells you that they make the best cooling systems in the world."
But the real driver of future growth is its "emerging technologies" division.
"They are doing cooling systems for electric vehicles, for aerospace applications, for missiles, for defence — for a number of applications," said Fisher.
"We think that business will underpin double-digit earnings growth well into the future."
PWR shares closed up 2% on Wednesday to $8.40, after a 4% increase on Tuesday. The stock has gained almost 85% in value this year.
