ASX growth shares trading at much lower valuations can be great investments. When excellent businesses trade at better value, I think it's worthwhile jumping on the opportunity while it's still available.
Businesses that are growing (earnings) at a good pace with plans for further expansion are ones I'd focus on.
The three ASX growth shares I'll highlight are definitely ones to watch and potentially buy.
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Guzman Y Gomez Ltd (ASX: GYG)
GYG is a Mexican food business that is delivering impressive growth.
At the end of the first quarter of FY26, it had 227 restaurants in Australia, 22 in Singapore, five in Japan and seven in the US.
I'm expecting the business to add locations in each country, particularly in Australia as it builds towards 1,000 restaurants in its home market over the next two decades.
The FY26 first quarter demonstrated the progress the company is making – quarterly total network sales grew by 18.6% year-over-year to $330.6 million.
Growing scale should help the business to deliver improving profit margins and help accelerate its bottom line. As long as the company's Australian comparable sales remain positive and above inflation over time, I think the company is on track for a very good future.
As a bonus, Asian growth (Japan, Singapore and potentially other countries) could help the business deliver more growth than investors are expecting.
The ASX growth share looks a lot cheaper after falling around 40% in the past year.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a retailer of affordable jewellery with a truly global store network spread across numerous countries including Australia, New Zealand, France, Spain, Germany, the UK, the USA, Canada, South Africa, Poland, Mexico and many more.
The company is delivering rapid sales growth – in the first 20 weeks of FY26, global sales were up 26% year-over-year, benefiting from the ongoing store rollout. It opened 44 new net stores in the first 20 weeks of FY26, taking its total store count to 1,075 across more than 50 markets. It was a year-over-year increase of 148 more stores.
It can take an initial investment and cost to build a particular country's store network to a certain scale, but once it reaches that scale, size benefits can play an important role in boosting earnings.
I'm expecting the company's operating profit (EBIT) margin to increase in the coming years.
The ASX growth share looks good value to me after dropping around 30% since the end of August 2025.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This exchange-traded fund (ETF) invests in some of the best companies in the US. If we're going to invest internationally, we may as well invest in the best ones.
The fund looks for businesses it thinks have economic moats (competitive advantages) that are more likely than not to endure for at least 20 years and help the business generate strong profits during that time.
An economic moat can come in a variety of forms such as cost advantages, intellectual property, brand power, network effects and regulatory advantages.
With a shortlist of great businesses, the MOAT ETF only invests when Morningstar analysts think they're trading at good value, which helps improve the chances of the fund outperforming other investments.
It looks cheaper today after dropping around 5% since mid-January.
