With the ASX 200 index recently reaching a record high, investors may not see today as being the most opportune time to make investments in ASX growth stocks.
However, that isn't necessarily the case.
That's because a number of high-quality companies have failed to join the ASX 200 index in its recent rally and remain down meaningfully from their highs.
But as we know, the cream always rises to the top. So, while these ASX growth stocks are out of favour at the moment, that is unlikely to be the case over the next decade.
And if history repeats itself, some very strong gains could be generated from their shares in the future.
But which high-quality shares? Three to look at are listed below:
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CSL Ltd (ASX: CSL)
The first ASX growth stock to look at is biotechnology giant CSL. Over the last decade, its shares have delivered an average return of 15.5% per annum. However, due to some temporary headwinds and a disappointing clinical trial result, its shares are broadly flat since last year.
Analysts at UBS see this as a buying opportunity. Last month the broker put a buy rating and $330 price target on its shares. This implies potential upside of approximately 17%.
Domino's Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator has been struggling with operational mishaps and inflationary pressures recently. And while this is disappointing, these problems are only likely to be temporary and have already shown signs of easing.
It is for this reason that Morgan Stanley put an overweight rating and $68.00 price target on this ASX growth stock last month. If this price target proves accurate, it will mean a return of greater than 55% for investors.
ResMed Inc. (ASX: RMD)
A final ASX growth stock that could be a top long-term option is sleep treatment company ResMed. Its shares have rebounded strongly recently but remain down more than 20% from their 52-week high. This has been driven by concerns that weight loss wonder drugs will reduce its market opportunity.
However, Morgans doesn't believe these drugs will have an impact on the company's growth. As a result, it put an add rating and $32.82 price target on its shares last month. This suggests potential upside of 15%.
