There are some exceptionally attractive Australian stocks that I'm betting can deliver market-beating returns over the coming years.
I've already invested in the names I'm going to talk about, and I'd happily invest another $10,000 across the two of them if I were given that amount to invest in ASX growth shares.
Both businesses below are achieving strong revenue growth and expanding overseas. I'm also expecting good profit margin increases in the coming years.
Image source: Getty Images
Breville Group Ltd (ASX: BRG)
Breville is best known as a coffee machine maker under its own name. But, it also sells coffee machines under the Sage, Lelit, and Baratza brands. It also sells coffee beans through the Beanz business. Additionally, the company sells other small kitchen appliances, aside from just coffee machines.
Pleasingly, the company has achieved a global presence, with operations in the Americas, Asia Pacific, and EMEA (Europe, the Middle East and Asia). What could be more of an Australian stock than a business that makes coffee?
The company continues to grow at a solid double-digit pace. In the first six months of FY26, the company reported revenue growth of 10.1% to $1.1 billion. Despite the headwinds of US tariffs, it was still able to deliver net profit growth of 0.7% to $98.2 million.
Breville is working hard at shifting its manufacturing to other countries – away from China – where US tariffs are much lower, such as Mexico. This could make a significant difference to how much profit it generates from the key US market in the foreseeable future.
I'm also excited to see how much profit growth the company can generate from relatively new markets such as China and South Korea.
In the long term, I'm expecting Breville's net profit to compound at a double-digit rate over the rest of the decade. It looks a lot cheaper after falling 16% since the high it reached in February 2026.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is another Australian stock that I'm very optimistic about.
It's a significant online retailer of furniture and homewares, as well as a growing home improvement segment.
The company is rapidly working towards $1 billion of annual sales, spread across both its two segments of home improvement and homewares and furniture. The company recently announced that its latest sales figures (in HY26) had grown by approximately 20% year over compared to the previous period. That's an excellent rate of compounding.
One of the biggest drivers of the business is that households are increasingly adopting online shopping.
According to Temple & Webster, online shopping accounts for only around 20% of homewares and furniture in Australia, whereas in the UK it's approximately 10% higher, and even higher in the US. I think Australia is likely to follow that growth trend towards 30% in the next few years.
Seeing as the company is a leading online retailer, I think the company can capitalise on that growth trend.
As the business grows, I expect its margins to increase over time due to scale benefits.
I believe the business is significantly undervalued given where it may be in three to five years, particularly if its home improvement division continues to grow at an incredibly fast rate.
I think it's a great time to buy this Australian stock, considering it's down more than 70% in the past six months.
