2 highly rated ASX growth shares to buy

These growth shares have been named as buys…

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Investors searching for growth shares, might want to take a look at the shares named below.

They have been growing at a strong rate in recent years and continue this trend over the remainder of the 2020s.

Here鈥檚 what you need to know about these ASX growth shares:

Appen Ltd聽(ASX: APX)

Appen could be a growth share to look closer at. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Through its team of skilled contractors, Appen prepares or creates the data for the machine learning models of some of the largest tech companies. These includes Amazon, Facebook, and Microsoft.

While the pandemic has put a dampener on demand, a rebound is expected post-pandemic. So with the Appen share price down significantly from its highs, now could be an opportune time to consider an investment.

The team at Citi appear to believe this is the case. They currently have a buy rating and $18.80 price target on its shares. This is significantly higher than where the Appen share price currently trades.

ResMed Inc.聽(ASX: RMD)

Another ASX growth share to look at is this sleep treatment-focused medical device company. Thanks to ResMed鈥檚 industry-leading products, growing software business, and the increasing awareness of sleep disorders, it has been growing at a strong rate for a good number of years.

Pleasingly, it still has a significant market opportunity to grow into over the next decade and beyond. Management estimates that there are ~1 billion people suffering from sleep apnoea worldwide, with only ~20% of these sufferers currently diagnosed. It also looks well-placed to benefit from the shift to home healthcare and a major product recall from a key rival.

Morgans is a fan of ResMed. In response to its full year results last month, the broker put an add rating and $41.34 price target on its shares.

Should you invest $1,000 in Appen right now?

Before you consider Appen, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Appen wasn't one of them.

The online investing service he鈥檚 run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor 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 and has recommended Appen Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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