3 ASX growth shares to buy with $500 now

Analysts rate these growing companies as buys. Let's find out why.

| More on:
Ecstatic man giving a fist pump in an office hallway.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are a growth investor with $500 to invest, then you may want to check out the ASX growth shares named below.

That's because analysts are feeling very positive about these shares and have recently put a buy rating on them.

Here's what they are saying about these growth shares:

Domino's Pizza Enterprises Ltd (ASX: DMP)

While its growth may have been lacking in recent times, the team at Goldman Sachs believes that now could be the time to snap up this pizza chain operator's shares.

The broker sees a lot of value in its shares at current levels. Particularly given its belief that Domino's earnings are now bottoming following a difficult period. It said:

We believe that DMP's renewed focus on store unit economics and re-investment to ignite topline growth is rightly placed. While there is still significant progress to be made, we believe that earnings has troughed in FY24 and see a path of improvement through FY25.

The broker has a buy rating and $39.10 price target on its shares.

Life360 Inc (ASX: 360)

Goldman Sachs also believes that Life360 could be an ASX growth share to buy with your $500.

It is the location technology company behind the hugely popular Life360 app. At the last count, there were over 70 million monthly active users (MAU) across more than 150 countries using this app to keep their family safe.

Goldman likes the company due to its belief that it is still only in the early stages of its growth. It said:

We believe Life360 remains in the early stages of its multi-year revenue growth opportunity, with subscription growth momentum continuing at scale in the US and internationally, as well as a new high-margin revenue stream in advertising.

Goldman has a buy rating and $25.00 price target on Life360's shares.

Readytech Holdings Ltd (ASX: RDY)

Finally, Morgans thinks that Readytech could be a good option for your $500.

It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Commenting on the ASX growth share, the broker said:

RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises and Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, Goldman Sachs Group, Life360, and ReadyTech. The Motley Fool Australia has recommended Domino's Pizza Enterprises and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Two excited woman pointing out a bargain opportunity on a laptop.
Growth Shares

2 ASX growth shares with rapidly-rising dividends to buy now

Rapidly growing businesses are appealing for multiple reasons.

Read more »

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.
Growth Shares

3 amazing Australian stocks to buy and hold until 2030

Analysts think these shares could be high-quality options for investors looking for long term picks.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Growth Shares

Why these ASX 200 growth shares could rise 40% in 12 months

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A woman makes the task of vacuuming fun, leaping while she pretends it is an air guitar.
Opinions

Opinion: This is one of the best ASX growth shares to own for the next 5 years

This stock is rapidly growing, and I’m excited about it.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Growth Shares

Buy Xero and this ASX 200 growth share in February

Analysts have good things to say about these growing companies.

Read more »

happy investor, share price rise, increase, up
Growth Shares

Buy these ASX growth shares with $3,000 in February

Analysts think these growth shares could be great options for investors with money to put into the share market.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Growth Shares

2 no-brainer ASX All Ords shares to buy with $2,000

Analysts have good things to say about these stocks. Let's see why they are so bullish.

Read more »

Two men look excited on the trading floor as they hold telephones to their ears and one points upwards.
Growth Shares

Where to invest $1,000 into ASX 200 stocks in February

Analysts think these shares would be great options for Aussie investors next month.

Read more »