The Australian share market has no shortage of quality ASX growth shares. But after the recent tech pullback, several sector leaders are trading well below their previous highs — creating what could be compelling long-term opportunities.
If I had $10,000 to invest today, I'd focus on three businesses that dominate their respective niches: healthcare imaging, cloud accounting software, and buy now, pay later (BNPL) payments.
Each ASX growth share has proven technology, strong growth prospects, and significant global expansion potential. While their share prices have all tumbled by 50% or more over the past 6 months, the underlying businesses continue to grow.
Here are three ASX growth shares I'd consider buying today.
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Pro Medicus Ltd (ASX: PME)
This $22 billion ASX growth share has become one of the most successful technology companies listed on the Australian market. The Melbourne-based business develops advanced medical imaging software used by hospitals and healthcare providers to process and analyse radiology scans.
Its flagship Visage platform is widely regarded as one of the most powerful imaging systems available. It allows doctors to view and interpret medical images rapidly through cloud-based infrastructure.
A key strength of the business is its highly scalable software model. As new hospitals adopt the platform, the company can grow revenue without significantly increasing costs. This has resulted in exceptional profitability, with operating margins among the highest of any ASX technology company.
The main risk for investors is valuation. The ASX growth share has historically traded at premium multiples, and the company's growth expectations remain high. Any slowdown in contract wins could weigh on sentiment.
Even so, analysts remain broadly positive. The average 12-month price target is $218.44, representing a potential 60% upside from the current price of $136.79.
Xero Ltd (ASX: XRO)
Xero is one of the world's leading cloud accounting platforms for small businesses. Founded in New Zealand, the company now serves millions of subscribers across Australia, the United Kingdom, and the US.
Xero has built a powerful ecosystem that connects small businesses with accountants, banks, and payment providers. This network effect makes the platform increasingly valuable as more users join.
Despite strong operational performance in recent years, the share price has experienced volatility amid the broader technology sector sell-off.
The main risks revolve around competition and execution. Xero is expanding aggressively into the US, which represents a massive opportunity but also a highly competitive market.
Most analysts remain optimistic on the ASX growth share and have set an average price target of $152.48, which suggests a possible gain of 86% over 12 months.
Zip Co Ltd (ASX: ZIP)
This ASX growth share has undergone a dramatic transformation over the past few years. Once one of the most speculative names in the buy now, pay later sector, the company has shifted its focus toward profitability and financial discipline.
That strategy appears to be paying off. The company has reported improving margins and stronger cash earnings, while transaction volumes continue to grow in its core markets.
The long-term opportunity remains significant. Digital payments and flexible financing options are becoming increasingly popular among consumers, and Zip's platform enables shoppers to spread purchases over time while boosting merchants' conversion rates.
However, risks remain. The buy now, pay later sector is highly competitive, and consumer credit conditions can deteriorate during economic downturns.
Even so, several analysts see improving fundamentals and potential upside for the ASX growth share if the company continues executing its turnaround strategy.
Most brokers have a buy rating on Zip and have set a 12-month price target of $4.21. This points to a massive 146% increase at the current share price of $1.71.
