2 high-conviction ASX growth stocks that could rise 30% to 50%

Analysts think these could be among the best stocks to buy right now.

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Key points

  • A software platform provider offers strong recurring revenue and expansion potential, backed by strategic acquisitions and a solid balance sheet.
  • A data centre developer benefits from increasing cloud and AI demand, expanding its footprint in Southeast Asia with advanced facilities.
  • Analysts foresee significant upside potential for both companies, with one poised for 50% growth and the other for nearly 30%.

With the ASX hovering near record highs, investors could be forgiven for thinking the easy gains have already been made.

But even in a strong market, there are still opportunities for those willing to look beyond the headlines.

The key is focusing on quality growth stocks. These are businesses with strong balance sheets, clear competitive advantages, and the ability to keep expanding earnings through all market conditions.

Right now, two ASX stocks stand out as high-conviction growth buys. They are as follows:

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has become one of the ASX's most impressive long-term performers, and for good reason. Its CargoWise software platform supports global supply chains, helping major freight forwarders and logistics companies manage their operations across multiple countries and modes of transport.

Once a customer integrates CargoWise, switching providers is complex and costly. This gives WiseTech significant pricing power and recurring revenue certainty. The company also continues to expand both organically and through carefully targeted acquisitions, strengthening its product suite and deepening its global reach.

With profit margins few rivals can match and a strong balance sheet to fund future growth, WiseTech has earned its premium valuation. It is a growth stock that long-term investors can continue to back with confidence.

Morgans currently has a buy rating and $127.50 price target on its shares. This suggests that upside of 50% is possible between now and this time next year.

NextDC Ltd (ASX: NXT)

NextDC is another Australian technology leader, positioned right at the centre of the data economy. The ASX growth stock designs and operates premium data centres used by cloud providers, government agencies, and enterprises across Australia.

As more businesses shift their operations to the cloud and artificial intelligence drives a surge in computing power needs, demand for secure, high-performance data centres is soaring. NextDC's facilities are among the most advanced in the region, offering high energy efficiency, reliability, and connectivity.

Importantly, the company isn't just maintaining its position in the market, it is expanding it. NextDC is rolling out new data centres domestically and expanding into Southeast Asia, extending its growth runway for years to come.

With a strong balance sheet, long-term contracts, and exposure to one of the most powerful megatrends in the world, NextDC remains a high-conviction buy for investors looking for dependable, scalable growth.

Macquarie is a big fan and has an outperform rating and $20.90 price target on its shares. This implies potential upside of almost 30%.

Motley Fool contributor James Mickleboro has positions in Nextdc and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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