Markets improved modestly at the tail-end of last week with positive news of a US–China trade deal on the horizon. This could be the perfect time to invest into growth opportunities as global markets pick up.

Here are 3 companies I'm excited about for November.

Webjet

Webjet Limited (ASX: WEB) has admittedly had a rough year. Its share price is up just 7.6% this year, currently trading for $11.40 per share. A couple of months ago Webjet's UK partner, Thomas Cook, filed for bankruptcy. This will no doubt take a toll on the travel company's FY20 earnings.

However, a look into Webjet's key operations is very promising. Its B2B segment, WebBeds, has some real horsepower. Total transaction value (TTV) was up 50% in the first few weeks of FY20. This is on top of a 43% improvement in EBITDA to $124.6 million in the FY19. 

Insiders have also been snapping up its shares. CEO John Guscic purchased 35,000 in September and a further 26,500 on October. Webjet now trades at a 24x price-to-earnings (P/E) multiple, which is terribly affordable compared to its $16 high in May. This is one I'll be keeping tabs on.

Aristocrat

Aristocrat Leisure Limited (ASX: ALL) has certainly been a winner this year. Despite a $20 billion valuation, Aristocrat's share price has soared 50% higher. It is currently trading for $31.60 per share at time of writing.

Another impressive metric is how Aristocrat has grown its EPS by 38% annually for the last three years. Its currently winning market share in the US, and its commitment to building its digital gaming segment has been fruitful in FY2019.

Given its strong growth trajectory, I'm very interested in adding Aristocrat to my portfolio before year-end. Though a 32x P/E ratio may seem slightly overweight, it's a decent price for a company growing at such a fast pace. 

Nanosonics

Here's a healthcare share I haven't stopped talking about. Nanosonics Ltd (ASX: NAN) has seen its share price rocket 144.6% higher to $6.81 since the beginning of this year.

While its share price is a high-flying 150x, I still think the company has room for growth. Nanosonics reported strong results in FY19. Operating profits before tax rose 201% higher to $18.8 million, driving revenue 39% higher.

The company is anticipating sales growth in North America to follow the same trajectory. It also has a new product in the pipeline that will start selling in 2020.

The post My top 3 ASX growth shares for November appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As we're already halfway through November, there's no better time to make some new investments before the Christmas season hits. Here are 3 ASX growth companies that I'd think about investing my dollars in this week (instead of gifts, that is).

a2 Milk ($3,500)

A2 Milk Company Ltd (ASX: A2M) has taken some heavy hits recently. Its share price has downsized 20% in the last 2 months, currently trading for $11.58 at time of writing.

This is because competition is picking up in China's infant formula market. Shijiazhuang Junlebao Dairy Co Ltd. launched an A2-protein-only formula, the first time a larger domestic competitor has ever entered the market. While it's currently only available for pre-order, investors are clearly concerned this might displace a2 Milk's position in the market.

Nevertheless, I'm still bullish on this company. a2 Milk has no long-term debt on its balance sheet and its return on equity has been a high 35% over the last 3 years. It has a strong brand in the Chinese market, proven by its 46.1% growth in earnings before interest, tax, depreciation and amortisation in FY19. At these prices, this could be a good time to invest.

Dubber ($4,000)

This one has been a true star this year. Dubber Corp Ltd (ASX: DUB), which specialises in cloud-based call recording technology, is up 217.94% to $1.24 at time of writing since the beginning of January.

However, Dubber's share price has softened from its $1.73 high in September. It also failed to meet market expectations on its first quarter update last week. Nevertheless, its growth rates are still impressive. Dubber reported a 200% increase in revenue compared to the prior corresponding period. It also grew its number of end user subscribers 23% higher, surpassing 117,000 customers.

I'll be keeping a close eye on this one.

WiseTech ($2,500)

The WiseTech Global Ltd (ASX: WTC) share price has had a weak month, plummeting 20% in the month to be trading at $27.44 at time of writing. This was due to allegations by J Capital that it overstated its revenue. Despite this short-term dip, WiseTech's share price is still up more than 61% in the year-to-date.

In its FY19 results, WiseTech achieved a 49% CAGR over the last four years and maintained a relatively strong profit margin of 48%. WiseTech's logistics software platform CargoWise One solves an extremely intricate problem for supply chains, which is why its customer attrition rate is only 1%.

Though the logistics company hasn't amended its 2020 earnings guidance in response to the report, investors aren't flocking back just yet. I'm keeping close tabs, but I might hold off on investing right away, due to its lofty 147x price-to-earnings ratio.

The post 3 ASX growth shares I'd put $10,000 towards this week appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 23% since last month, to just $26.84 at time of writing. Yet it seems it still has further to go. What has led this company to take the spot of the world's most-expensive tech company this year? And why has its investment performance suddenly plummeted?

Let's break it down.

The product

Logistics are tricky. Internationalisation has allowed businesses to specialise and benefit from economies of scale, and as a result, the process of manufacturing and delivering products to the end consumer has grown more complex.

This is where WiseTech comes in. Its flagship product, CargoWise One, allows users to manage operations on a single database. Its feature-rich platform can be tailored for its customers' supply chain and provide anything from customs brokerage, HR management to online tracking and tracing.

As a testament to the effectiveness of the product, CargoWise One has a 99% retention rate. WiseTech serves 12,000 companies globally which includes 19 of the 20 largest third-party logistics providers.

Interestingly, CargoWise One is not a traditional software-as-a-service (SaaS) product. Rather than charging a subscription fee, WiseTech generates revenue depending on the customer's utilisation of the software. This means WiseTech grows with its customers and is also exposed to growth in world trade and strong market environments.

The news

Recently, WiseTech has been accused by Chinese-firm J Capital (JCAP) of overstating its revenue in Europe by $48 million. According to JCAP, this overstatement was overlooked by auditors because it was channelled through Australian subsidiaries.

But wait, that was only report one. Report two pointed our attention towards the poor performance of WiseTech's acquisitions. This included the failure of newly acquired companies to convert customers onto the CargoWise platform. According to JCAP, customer churn rates on these subsidiary platforms were only at 50% showing the underperformance of these expensive assets.

These are hard hits to take. We're earnestly awaiting WiseTech's response to this second report. 

Foolish takeaway

Despite these allegations, WiseTech hasn't changed its 2020 guidance. The company confirms that revenue for the following year will be between $440 to $460 million. Earnings before income, tax, depreciation and amortisation is forecasted at $145 to $153 million. This has helped to tame key investor concerns. 

Similarly, WiseTech's FY19 results are undeniably a success. It achieved a 49% compound annual growth rate over the last 4 years and maintained a relatively strong profit margin of 48%. It continues to spend in areas of R&D and talent, typical for a company in its growth phase.

Despite trading on a 23% discount on last month's valuation, WiseTech is still ridiculously expensive. Although I strongly believe it solves critical problems in supply chain logistics, its 151x price-to-earnings ratio is quite steep.

I'll be keeping my eyes peeled though.

The post A deep dive on WiseTech: why it's on my watchlist this month appeared first on The Motley Fool Australia.

More reading

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• 3 quality ASX shares I'd buy while everyone else is nervous

Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These 3 ASX growth shares have been slammed on the ASX recently, after being highly sought after this entire year. So, what's changed?

Below, I've analysed whether today's prices for these embattled growth shares reflect good buy opportunities, given each company's fundamentals and future growth.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price has plummeted 25% lower in the past two weeks, to be trading at around $26 at time of writing. But what's been driving its negative price movements?

Chinese-based research firm, J Capital (JCAP), released a report two weeks ago claiming that WiseTech overstated its performance in the European market. This caused WiseTech's share price to drop 10%.

WiseTech responded that its EBITDA would remain between $145–153 million, with growth numbers between 34–42%.

However, JCAP hit back with a second report last week. It accused WiseTech of poorly performing acquisitions, exaggerating its customer claims and churn rates. As a result, the company's share price dropped another 12.3% before entering a trading halt.

While I'm still confident in WiseTech's logistics product and business model in the long run, this is certainly not a good look for the management team. I'll be earnestly waiting for the company's response to report two.

A2 Milk Company Ltd (ASX: A2M)

From breaking the $17 mark in July, the a2 Milk share price has fallen almost 30% since then to $12.03 at time of writing.  

This weakening share price stems from its subpar FY19 results. Though it missed the mark with analyst expectations, it still reported strong growth. Revenue was up by a whopping 41.4% to NZ$1.3 billion, driving EBITDA 46.1% higher to NZ$414 million.

Due to greater marketing expenditure in FY20, a2 Milk's profit margin could drop slightly from its current (and impressive) rate of 30%, which will be a huge investor disappointment.

Nevertheless, a2 Milk has strong fundamentals and its infant formula products show no signs of slowing in the Chinese market.  

Webjet Limited (ASX: WEB)

On the other hand, Webjet is actually up 12% in the last two weeks, currently trading for $11.30. While this is a great short-term pick-up for the company, it is still 33% lower than its $16 high in May.

Weakness in its share price has largely been attributed to the collapse of its UK partner Thomas Cook, which will inevitably punch a hole in Webjet's 2020 earnings. This triggered a wave of broker downgrades, which have hit the company's share price hard.

However, management has confidence that the WebBeds platform can drive its earnings before interest, tax, depreciation and amortisation margin closer to 50%. The company is also expecting strong organic growth in the new year.

This sell off now puts Webjet at an attractive price, particularly with insiders snapping up Webjet shares recently. I'll definitely be keeping a close eye on the company.

The post These ASX growth shares are slipping – should you invest? appeared first on The Motley Fool Australia.

More reading

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• Why Boss Energy, Macquarie, Nova Minerals, and WiseTech shares are storming higher today

Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The healthcare sector can be viewed with high scepticism as it's difficult to invest without being a subject matter expert. But with this high barrier to entry comes a huge opportunity to capture alpha.

To make it easier for you, I've put together top 3 healthtech recommendations that have performed extraordinarily this year.

PolyNovo

PolyNovo Limited (ASX: PNV) commercialises skin-supplement products to treat dermal ailments. Though its share price has slid 15% to $2.19 in the last 2 weeks, this is still a 265% increase in the year-to-date.

Its success is widely attributed to the sales of its flagship product, the NovoSorb BTM. This is a wound dressing, treating dermal structures which require a split-thickness skin graft. In this year alone, PolyNovo has expanded its operations beyond Australia. It now sells within New Zealand, USA and the UK, which has driven its sales 435% higher in 2019.

Accelerating NovoSorb BTM sales drove the company's net loss after tax 46% lower, to just $3.19 million. This is despite the company's research and development costs for a new product in the pipeline that supports hernia repair.

While it is certainly a risky bet, I'm expecting PolyNovo to continue growing its share price as it expands aggressively across the globe.

Nanosonics

Nanosonics Ltd (ASX: NAN) creates and distributes the trophon EPR, an ultrasound probe disinfector which eliminates ultrasound-related cross-infections.

The company's share price has softened slightly this week, though its year-to-date return on investment still paints a lucrative picture. Up 134% to $6.63, Nanosonics has had a phenomenal 2019, acutely outperforming the ASX.

This outperformance was driven by its glowing FY19 results. The company reported that operating profits rose 201% to $18.8 million, with revenue 39% higher, hitting $84.3 million. While the trophon EPR makes up a large portion of Nanosonics' sales, the company also sells associated consumables and services. This increases customer share of wallet, further contributing to growing revenue numbers as another 18% of global installed users are now on board.

Nanosonics also launched trophon2 this year in the US and received strong feedback. The company will also be distributing in Japan in the next few months, which is a strong indicator of future growth.

Opthea

Opthea Ltd (ASX: OPT) develops biological therapeutics for eye diseases, particularly those associated with blood and lymphatic vessel growth and vascular leakage.

Opthea's share price has slid 9.35% in the last week to be trading for $3.39 at time of writing. However, this is still more than a 500% increase in share price in the year-to-date.

In light of its success in its Phase 2b trials of the product OPT-302, investors have been quick to snap up the company's shares. OPT-302 is a combination therapy for treatment-naïve patients with wet age-related macular degeneration, and the company has reported that trial results reflected statistically superior primary efficacy outcomes.

While this is still early days, its rocketing stock price is a reflection of investor confidence in the commercialisation of OPT-302.

The post My top ASX healthcare share picks for 2019 appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you've already built a strong core and are looking for some outliers to supercharge your portfolio, here are my top recommendations. 

Nearmap – $2,500

Nearmap Ltd (ASX: NEA) is a business-to-business solution which allows companies to conduct site visits digitally. This is achieved by using plane-mounted cameras which deliver a high frequency of high-resolution images. In October, Nearmap grew its stock price by 1.8% to $2.71 as of yesterday. If you had held this stock since the beginning of the year, you'd be up a whopping 77%.

Nearmap offers a market-leading product that is capturing the attention of the US market. It generates over 30% of its revenue beyond the ANZ region, and its subscription model ensures stability in its cash flow. With 94% recurring revenue and a hugely untapped market expected to be valued at $14.2 billion next year, Nearmap has a ton of room to grow.

Its FY19 results reflected this strong growth momentum. Earnings before interest, tax, depreciation and amortisation (EBITDA) rocketed 216% higher to $15.5 million. Nearmap has just 1–2% of market share, and I am positive that it will succeed in capturing a large portion of this addressable market.

Sezzle – $2,000

Similar to Afterpay Touch Group Ltd (ASX: APT), Sezzle Inc (ASX: SZL) provides an interest-free instalment solution to its customers. The company has grown 16% higher since the beginning of October, closing at $2.17 as of yesterday, and has had a stellar morning so far today to be up another 4.06% at time of writing.

Sezzle posted fantastic Q3 results yesterday. Active users were up over 200,000 to 644,509, a 49.9% increase in just 3 months. It also increased its number of active merchants, rising 48.7% to 7,507. As a result, underlying merchant sales zoomed 64.2% higher, resulting in a 68.9% increase in revenue to $US3.6 million.

The company also reminded investors of its recent partnership with Visa's CyberSource platform. Sezzle's product is now offered to over 400,000 businesses that utilise CyberSource, and the company is expecting to reap the benefits from this partnership over the next quarter. As I'm a believer that the buy-now, pay-later category has room for more than one competitor, Sezzle's growth to date and meaningful partnerships make this a winning growth company.

Nanosonics – $5,500

Nanosonics Ltd (ASX: NAN) is a healthtech company that commercialises the trophon EPR, an ultrasound probe disinfector which reduces the risk of ultrasound-related cross-infection. Its share price has zoomed 128% higher to $6.76 as of yesterday, although it has dipped slightly in morning trade to $6.71 at time of writing.

A large driver of this growth has been the company's FY19 results. Revenue increased by 39% to $84.3 million and its user base expanded globally by 18% to 20,930. This was attributed to Nanosonics' aggressive international expansion plans having entered new markets across Europe, North America and Asia.

This far exceeded analyst expectations of a net profit after tax (NPAT) of $10.27 million. Nanosonics' NPAT grew by 137% to $13.6 million, with management anticipating that growth levels will be retained in the new year.

The post 3 ASX growth shares I'm investing $10,000 this week appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This past week we have seen a number of top technology companies getting slammed on the ASX. In part, this has been attributed to sky-high valuations that left share prices highly susceptible to any negative press.

Compared to their WAAAX constituents, WiseTech Global Ltd (ASX: WTC) and Afterpay Touch Group Ltd (ASX: APT) have taken huge hits to their market capitalisation, but all WAAAX share prices are have stooped lower over the past few days.

Here's a closer look at what's been happening in the tech space this past week.

WiseTech

The WiseTech share price has plummeted 16.85% lower in the last five days to $27.63 at time of writing.

The company returned from its trading halt on Monday as it sought to respond to allegations by J Capital (JCAP). JCAP claimed that WiseTech was overstating its performance in the European market, as well as its profits and growth numbers.

However, the company released a statement this morning rejecting the claims made by JCAP. It was noted that JCAP had published the report without prior knowledge of WiseTech and would make significant gains from this move. Founder and CEO Richard White also reaffirmed the FY20 guidance, confirming that EBITDA would fall between $145–$153 million with growth of 34%-42%.

The stock price has jumped more than 5% in trading this morning.

Afterpay

Afterpay Touch Group Ltd (ASX: APT) has seen its market capitalisation downsize 13% in the last 5 days, falling to $29.52 at time of writing.

Weakness in its share price is a result of UBS plastering sell recommendations on both Afterpay and its competitor Zip Co Ltd (ASX: Z1P). This is due to increasing regulatory concerns, with a report released by the Reserve Bank of Australia that the buy-now pay-later sector will be under review next year.

However, Afterpay responded saying it isn't subject for inquiry unless for a broad-based periodic review for payments. The company released a statement, claiming that its business model is contrary to traditional credit models. Customers receive free service that supports responsible spending, while also providing merchants with a marketing channel to millennials and Gen Zs.  

Appen

Similarly, Appen Limited (ASX: APX) is down 9% in the last five days to $21.52 at time of writing.

Though no company-specific news has been released recently, this weakness is a result of a broader decrease in the tech/IT sector.

This is a whopping 30% discount to Appen's July stock price, which is when shares passed the $30 mark. Ultimately, this could be a bargain given the company's compelling proposition. Appen's remote labour force continues to provide quality data sets for AI and machine-learning applications in big tech.

Altium

Altium Limited (ASX: ALU) has seen its share price sink 6% lower in the previous five days to $32.42 currently.  

Similar to Appen, no new announcements have been released. However, I would argue that Altium holds a strong balance sheet and future expectations of growth. It operates debt-free with almost a 40% profit margin. It similarly grew its bottom line by 41% in FY19.

This is one to watch, as it is currently trading on a 15% discount from its peak in mid-September.

Xero

In the last five days, the Xero Limited (ASX: XRO) share price has softened by 7% to $65.51 currently.

Xero recently announced a new client, RSM Australia, which is the company's single biggest migration to its platform. This is on top of its success in penetrating the South African and Canadian markets via partnerships.

However, the recent weakness in its share price seems to be a result of a wider market sell-off within the tech space.

The post Why Afterpay and these tech stocks are stooping lower this week appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's paramount to hold equities that can capture alpha. By making bets on growth companies, this gives you a higher chance of boosting portfolio returns to complement your blue-chips. Here are 3 ASX companies that have grown exponentially in 2019 and have the potential to hit the $1 billion mark in 2020. 

Opthea

Opthea Ltd (ASX: OPT) develops biological therapeutics for eye diseases, particularly blood and lymphatic vessel growth and vascular leakage.

Opthea's recent clinical trial was a success, reflecting that its wet age-related macular degeneration treatment is superior than other market offerings. This has been the key driver behind its share price rocketing 481% higher in the year-to-date. The Opthea share price closed yesterday's trade at $3.33.

However, this was only Phase II of the company's clinical trials, making it too early to ascertain whether Opthea can achieve commercialisation. That being said, it was a critical step for Opthea and demonstrated it can beat multinational pharmaceuticals, putting it on the radar as a potential future acquisition target.

I'll be adding this biotech solution to my watchlist for 2020.

Dubber

Dubber Corp Ltd (ASX: DUB), which specialises in cloud-based call recording technology, has generated 315% of investor returns since January. Its stock price sits at $1.62 at time of writing.

This growth stock has grown consistently throughout the course of 2019 and received an extra boost since releasing its FY results. Dubber's active user base expanded by 222%, attracting high-profile clients like AT&T, which drove revenue 132% higher to $7.4 million.

Being a software-as-a-service product, Dubber boasts rapid deployment abilities with almost zero capital expenditure in scaling. The company has cut its net losses by over a third in the last financial year, and has a clear route to profitability in 2020.

Customer calls generate huge amounts of data for companies. Thus, it is increasingly important for businesses to have a solution to analyse and generate meaningful insights from this data. Dubber is well placed to benefit from increasingly digitised companies, particularly for SMEs.

Splitit

Though Splitit Ltd (ASX: SPT) is down 55% since its peak of $2 in March to a $0.91 close yesterday, its stock price has rebounded 75% higher in the last month.

This pickup in growth is attributed to Splitit's newly announced deal with Shopify. A partnership with the likes of this US shopping giant will create a huge market opportunity for the buy-now, pay-later (BNPL) company. While Splitit has just 509 merchants on its platform, it now has access to 800,000 SMEs across 20 countries that love and trust the Shopify experience.

The BNPL sector has room for more than one winner. With Splitit releasing a B2B product and signing with large enterprise clients, I expect investor confidence to remain high for this company in 2020.

The post 3 ASX growth shares heading for a $1 billion market cap appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With the prospect of a global recession heightening, it's important to have stocks in your portfolio with a strong likelihood of outperforming. Here are three ASX companies with defensible positions that are my picks for the long-haul.

Aristocrat

Aristocrat Leisure Limited (ASX:ALL) is a developer and designer of gaming machines, video lottery terminals and casino-management systems. The Aristocrat share price has grown steadily over the last 6 months, jumping 21.2% higher to $31.40 as of Tuesday afternoon.

At its half-year mark at the end of March, Aristocrat grew its bottom line by 16.8%, with EBITDA up 10.2%. This is a result of its continual commitment to innovation, having launched several new gaming machines, games and supporting products. Its acquisitions of Plarium and Big Fish Games have also diversified the company's revenue streams, accounting for 37% of growth in digital.

This company should be one to watch before its FY19 results announced next month.

Altium

Altium Limited (ASX: ALU) offers a design software product for building printed circuit boards. Investment returns for this ASX tech stock have been extremely volatile in the past 6 months, dropping to as low as $29.21 in June before hiking up to $37.97 last month. Despite this short-term price correction, the share price closed at $33.11 on Tuesday which still represents a 53.2% gain in the year-to-date.

At its FY19 results, Altium reported positive earnings with NPAT up 41%. This was driven by the growth of its world-class product, Altium Designer, with profit margins reaching almost 40%. The company also operates debt-free, allowing the software company to invest its cash into R&D and aggressive scaling as Altium aims to lead the market in 2020.

With a healthy balance sheet, recurring revenue with high margins and strong international growth, this company is bound to be a winner in the long-term.

Opthea

Opthea Ltd (ASX: OPT) develops biological therapeutics for eye diseases, particularly those associated with blood & lymphatic vessel growth and vascular leakage.

This biotech firm has kept under the radar this year, before rocketing 271% higher to $3.23 in just 2 months.

The driving factor behind this inflection point is the success of its recent clinical trials. Opthea has developed a molecular treatment called OPT-302, which targets wet age-related macular degeneration. Its results reflected the superiority of Opthea's treatment compared to current market offerings.

Though the company is still in its infancy and made a loss of $20.9 million and revenue of $914,800 in FY19, yet data compiled from its clinical trials yield stark successes. This will be one to watch in its journey to commercialisation.

The post My October favourites: 3 ASX shares for the long-term appeared first on The Motley Fool Australia.

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• 3 fantastic ASX shares that could help build long-term wealth

Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Markets improved modestly at the tail-end of last week as the US–China trade discussion resumes. This could be a good time to take advantage of market inefficiencies by investing into high-growth shares, particularly if a trade deal is on the table.

Here are my top 5 ASX growth share suggestions for the rest of 2019.

Dubber

This company has captured investor attention this year. Dubber Corp Ltd (ASX: DUB), which specialises in cloud-based call recording technology, has seen its share price catapult 66% higher in 6 months, closing at $1.61 on Friday. It has since lifted another 1.85% in morning trade today.

Dubber's recent share price spike is due to strong FY19 results. The company reported that active users were up 222%, bumping revenue 132% higher to $7.4 million. I'll be keeping a close eye on this company to see if it can continue to generate outstanding results.

Aristocrat

For a company with an almost $20 billion market capitalisation, Aristocrat Leisure Limited (ASX: ALL) certainly strays from the pack with its startling growth. Its share price has jumped 22% higher in the last 6 months, closing at $31.05 on Friday, and lifting again this morning to be trading for $31.61 at the time of writing.

The company has announced several new slot-games in the last few months, reflecting Aristocrat's commitment to rolling out products and innovations that appeal to consumers. It also continues to build out its distribution channel in the US for digital social gaming content, now comprising one-third of Aristocrat's revenue.

Nanosonics

The Nanosonics Ltd (ASX: NAN) share price has jumped 42% higher in 6 months, closing at $6.46 on Friday.

This incredible performance is due to its FY19 results. Nanosonics' operating profits before tax rose 201% to $18.8 million as a result of a 39% increase in revenue. The biotech company has also been growing its consumables market, and infection and decontamination products and services. This was a clever move that sees the company capturing more sales per customer.

Nanosonics recently launched a new product in the US and will be full speed ahead in Japan in 2020.

PolyNovo

PolyNovo Limited (ASX: PNV) has flaunted some incredible success this year. In half a year, PolyNovo has grown its market capitalisation by 167% and is now a billion-dollar company. Its share price is currently sitting at $2.56.

This is due to the growth of the company's skin-supplement solution. Sales were up 435% from the prior corresponding period, which helped PolyNovo's losses shrink by 46% to net just $3.19 million.

Given its clear path to profitability in 2020, this one is a good stock to watch.

Afterpay

In the last 6 months, the Afterpay Touch Group Ltd (ASX: APT) share price has rocketed 41% higher for a $35.12 close on Friday.

This growth is largely attributed to its fantastic FY results. Highlights include the success of scaling its interest-free buy-now, pay-later model in the UK, having acquired 200,000 customers in its first 15 weeks. This growth exceeds that of the US.

Analysts are anticipating its share price to exceed $40 in 2020, so perhaps this is a good time to invest.

The post 5 ASX growth shares to supercharge your portfolio in 2019 appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While these last few weeks have been filled with investor uncertainty, there have been clear outperformers. Recently, these 3 ASX healthcare shares have been popping up on my radar after posting strong FY19 results.

If you're looking to supercharge your portfolio with some high-growth opportunities, it's worth keeping your eye on these companies this month.

PolyNovo

PolyNovo Ltd (ASX: PNV) has commercialised a skin-supplement product which seeks to treat dermal ailments like ulcers and partial or full wounds.

Last week alone, the PolyNovo share price jumped 19% higher for a $2.56 close on Friday. If you had invested in PolyNovo at the beginning of the year however, you would have more than a 3x return.

In FY19, PolyNovo grew the sales of its flagship product, NovoSorb BTM, by a stellar 435%. From the year prior, the company's loss was 46% lower, netting just $3.19 million.

While the company is trading at a precarious 120x price-to-sales ratio, its expansion across Europe and Asia in 2020 and the products in its pipeline are highly promising.

Nanosonics

Nanosonics Ltd (ASX: NAN) creates and distributes the trophon EPR, an ultrasound probe disinfector which eliminates ultrasound-related cross-infections.

Since announcing impressive FY19 results, the Nanosonics share price has charged 32% higher, closing at $6.44 on Friday. Moreover, in the year-to-date, the company has returned a stellar 132%, making it an incredible outperformer of the ASX.

This share performance has been driven by its growing bottom line. Operating profits before tax rose 201% to $18.8 million and revenue was 39% higher to $84.3 million.

Beyond trophon sales, a growing proportion of Nanosonics' revenue is its associated consumables, infection control and decontamination products and services. By growing its global installed user base 18% higher than the prior corresponding period, Nanosonics also boosts its customer share of wallet with these additional offerings.

Nanosonics also launched trophon2 this year in the US market with great success and is looking to distribute to Japan in the next few months.

Opthea

Opthea Ltd (ASX: OPT) develops biological therapeutics for eye diseases, particularly those associated with blood and lymphatic vessel growth and vascular leakage.

While the company's share price has cooled since its $4.00 peak last month, Opthea's share price has exploded in 2019. At $3.33 as of Friday close, investors who got in early this year have seen this stock-pick grow 376%.

While this company has recorded just $240,109 profits over the last year, a driver of its share price growth is the success of recent clinical trials. Opthea's molecular treatment, OPT-302, is used to target wet age-related macular degeneration (AMD). Results from its Phase 2b trial reflected superior results to all other treatments on the market.

While this is still early days, its rocketing stock price is a reflection of growing investor expectations that Opthea could be acquired by a pharmaceutical giant in the future.

The post 3 ASX growth shares in the healthcare sector to watch appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Early stage companies may pose higher risks to your overall portfolio, but they can also create the most attractive return opportunities. Perhaps you're already invested in assets which generate more stable returns and are looking to supercharge your portfolio with some outliers. Or, maybe you're willing to take riskier bets to capture alpha.

Either way, here are 2 ASX growth shares I would invest $10,000 in this month. 

BrainChip – $4,500

BrainChip Holdings Ltd (ASX: BRN) is a leading company in neuromorphic computing, a branch of artificial intelligence that simulates neuron functionality. BrainChip is in its early stages of developing a neuromorphic system-on-a-chip (NSoC) called Akida. Akida is a hardware version of a biological neuron, making it much more advanced and efficient than current day technologies.

In the last month, the company's share price has improved by 45% to $0.058 at time of writing. Though no new developments have been announced over the last week, Brainchip recently shared its key partnerships that will assist in bringing its product to market. ActualTech Media will continue to help the company capture mindshare in the chipset market while JPR Communications will provide support on the PR side. 

The reason why BrainChip is such a promising investment opportunity, in my opinion, is due to its superior chip product. Akida provides more efficient neural processing and memory access than any other chip on the market. It has the ability to make traditional functions like machine training, learning and inferencing more efficient, while only using a fraction of the power.

PolyNovo – $5,500

PolyNovo Limited (ASX:PNV) designs, manufactures and applies polymer technology to a range of dermal regeneration solutions globally. Its flagship product, NovoSorb BTM, is a skin-supplement that treats dermal ailments like ulcers and partial or full wounds.

In the year-to-date, PolyNovo's stock price has rocketed forward 312% higher to $2.47 at time of writing. Growth in the company's market capitalisation is driven by its record sales across the globe. It currently operates in the US, Australia, New Zealand, UK and Ireland. Its plans to expand to Asian countries like Singapore, India and Malaysia are also well underway. It also has new products in development, including devices for hernia and breast repair.

Despite a net loss of $3.19 million, NovoSorb BTM grew its sales by 435% in FY19. It should also be noted that this net loss is a stellar 46% lower than the previous year, reflecting a clear path to profitability for this impressive biotech.

Foolish takeaway

While the market capitalisation for both companies has increased dramatically in the year-to-date, it's not too late to invest in October in these high-growth companies, as they head for international success in the new year.

The post 2 ASX growth shares I'm investing $10,000 in October appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices for these 'buy-now, pay-later' (BPNL) fintech players have zoomed ahead this month, despite investor uncertainties creating ripples through the ASX. Here's a BNPL update on the key players in the sector – all fighting for a piece of this $22 trillion total addressable market.  

Afterpay Touch Group Ltd (ASX: APT)

Afterpay is up just 2% higher over the last month on top of a 44% increase since late August, closing at $34.65 yesterday, although the Afterpay share price has dropped 1.93% in morning trade to leave last month's performance relatively flat.

Although September was flat, since announcing FY results in August, Afterpay's share price has zoomed ahead. Its UK business, Clearpay, has acquired 200,000 customers in its first 15 weeks. Of particular note, Afterpay lowered its late income fee as a percentage of sales by 5.7% to 18.7%, compared to the last FY.

Zip Co Ltd (ASX: Z1P)

Zip's share price is rallying ahead, having grown a whopping 31% since last month to be trading for $5.20 at time of writing.

This is a record high for the company, driven by its fantastic FY performance as well as positive sentiments for its future. Zip grew its customer base by 80% to 1.3 million, sharing further plans to expand globally. Management expects that the company will hit its targets, meaning Zip will see its active user base double in 2020.  

Splitit Payments Ltd (ASX: SPT)

Splitit's share price has risen 11% higher over the month and is currently trading for $0.62.

Despite a modest earnings result, Splitit has seen its market capitalisation grow steadily over the last few months. Last month, it announced the launch of a B2B product that allows suppliers and manufacturers to offer buyers its interest-free, credit solution.         

This is a lucrative move, one that we'll certainly be keeping tabs on.

FlexiGroup Limited (ASX: FXL)

FlexiGroup closed at $2.32 yesterday, 21% higher than last month, and has since dipped slightly in morning trade to $2.30.

Its BNPL product, humm, has been producing extraordinary results. Total transactions were up 25% year-on-year, supported by its new clients throughout the year across retail, health and home improvement.

All these new, high-profile clients bring the retailers on FlexiGroup's platform to 18,000, explaining how its volume growth for the last 2 months is 85% higher than the prior corresponding period.

Sezzle Inc (ASX: SZL)

Sezzle is on the rise. Its share price is sitting at $2.40, which is 9% higher over September.

Since its outstanding HY report, the company also announced its new partnership with Visa's CyberSource platform. This means CyberSource merchants will be able to offer Sezzle's interest-free BNPL product worldwide.

With a fast-growing user base and listed merchants, this will also be another one to watch for October.

The post Why you should invest in Afterpay and these BNPL players appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended FlexiGroup Limited and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX has had a shaky first week in October. Markets stooped lower as the US faces yet another obstacle in the trade war. With the World Trade Organisation clearing $11.2 billion worth of tariffs imposed on the European Union, low investor confidence has dragged the index down.

As tech companies pose high betas, share prices have been amplified within the tech industry. Here's how the WAAAX have performed this last month.

WiseTech

The WiseTech Global Ltd (ASX: WTC) share price has cooled over the last month, dropping more than 11% to $34.02 at time of writing. Nevertheless, the company is still up a whopping 102.85% year to date, bumping its price-to-earnings (P/E) ratio to 197x.

It's no secret the logistics company has been on a steady growth trajectory, with its FY19 results sharing nothing but good news. Net profit after tax (NPAT) expanded by 36%, fuelled by a sticky product with 1% customer churn and several strategic acquisitions.

WiseTech grew its market capitalisation by around 4% last week in line with an improving Nasdaq index.

Appen

The Appen Limited (ASX: APX) share price has been pummelled more than 18% lower to $21.13 over the last month.

Despite quite positive HY results, Appen's share price has been in the red over the last two months. This is likely due to cooling prices within the tech community, particularly with uncertainties in the US market.

Given this is a 20% discount on its July prices (which skimmed past $30), this could be a bargain investment. Appen provides quality data sets to train AI and machine learning applications via a remote labour force model. Its data solutions capitalise on the future of work and will be critical in the years to come. 

Altium

The Altium Limited (ASX: ALU) share price is down 16%, trading for at $31.84 at the time of writing.

This is an unfortunate performance update that has come despite Altium reporting positive earnings with NPAT up 41%. The company also boasts a debt-free balance sheet, with its profit margin hitting almost 40%.  

Like Appen, this discounted price may be an attractive buy opportunity given its strong performance and fundamentals. Altium aims to be the market leader in 2020, and you'll be wanting in if/when this comes to fruition.

Afterpay

Unlike its WAAAX counterparts, Afterpay Touch Group Ltd (ASX: APT) is a modest 2% higher over the last month.

Since its FY results, Afterpay's share price has skyrocketed. Its market capitalisation has risen 44% higher since late August, a testimony to its international success thus far. Its UK business, Clearpay, has acquired 200,000 customers in its first 15 weeks. This growth exceeds that of the US.

Hold tight, analysts are plastering a potential $40 price tag on this one for 2020.

Xero

In the last month, the Xero Ltd (ASX: XRO) share price has softened 6% to $63.31.

The company has had a solid year, reporting a 36% growth in revenue and 52% in its earnings. Xero is clearly an investor favourite. On top of its high-growth rate supported by a lucrative subscription business model, the cloud accounting software it provides is a world-class product.

Xero grew its total net subscribers by 400,000 this year, with over half being users outside of Australia. This should be one to watch for the tail-end of 2019.

The post October WAAAX update: Should you invest? appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, WiseTech Global, and Xero. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The travel sector has had a rough year. With global uncertainties seeping in as a result of heightening trade and political tensions, consumer expenditure has waned. However, optimism is slightly stronger in the business travel sector.

Here's a quick update on the key ASX players across the sector.

Webjet Limited (ASX: WEB)

Webjet is a digital travel business company that was extremely promising in the first half of the year. However, since its Thomas Cook business started to falter, its share price has progressively grown weaker. Since its high of $16.87 in May, the Webjet share price has slid 34% to be trading for $10.97 per share, at the time of writing.

This slide was exacerbated by Webjet's disappointing full-year results, announced last month. While its B2B segment, WebBeds, had a promising result, with earnings before interest, tax, depreciation and amortisation (EBITDA) up by almost double to $67.3 million, its B2C segment was an anchor, growing just 1% in FY19.

Similarly, the bankruptcy of Thomas Cook is a huge hit to Webjet's forecasted revenue. This is an expected $150–200 million contribution to total transaction value in FY20 that will not be realised.

Flight Centre Travel Group (ASX: FLT)

The Flight Centre share price is up around 12% over the last month to $48.05 at time of writing. The company has been doing particularly well in recent months due to the establishment of new partnerships, and the perceived benefit from the Thomas Cook collapse.

Flight Centre is a fundamentally strong business, with a healthy return on equity of 18% and low debt-to-equity ratio of 0.13. Similarly, its cash on hand equates to a stellar $336 million. The company stands to benefit significantly from the fall of Thomas Cook, as this was a key competitor in the UK market across flights, hotels and packaged holidays.

Helloworld Travel Ltd (ASX: HLO)

Helloworld has seen its share price drop significantly in the year to date, falling 23% to $4.71 at the time of writing. However, its share price has been bumped up around 9% higher in the last two weeks due to its recent acquisition news and bullish forecast.

The company has agreed to acquire TravelEdge for $28 million. TravelEdge focuses on corporate travel management including academic travel services, event and group planning and prizing and incentives.

Helloworld also disclosed that it expected its FY20 EBITDA to be between $83 million and $87 million. This figure is 12.5% higher than its FY19 result of $77.3 million.

Corporate Travel Management Ltd (ASX:CTD)

In line with the companies above, Corporate Travel has seen its share price tumble consistently throughout 2019. From its peak of $29.27 in February, Corporate Travel's share price has stooped 35% lower to $19.07 at time of writing.

More recently, however, the company's stock price seems to have reached an inflection point. Its FY19 results show a 12% growth in net profit after tax, due to its 21% increase in revenue. These numbers are expected to continue its positive trajectory, with 90% of the company's users claiming they would recommend Corporate Travel's service to their friends. This positive net promoter score is critical in the competitive business travel sector.

The post Is now a good time to invest in the travel sector? appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Nearmap Ltd (ASX: NEA) and PolyNovo Limited (ASX: PNV) are the newest additions to my growth share watchlist. If you had held these 2 stocks since the beginning of the year, you would have seen a healthy growth in your portfolio of 167%.

Here's why they've been skyrocketing, and what could be in store in terms of future growth. 

Nearmap

Nearmap is an aerial technology and location data company. It utilises plane-mounted cameras to deliver high-resolution images at a high frequency, allowing companies to save time by allowing site visits to be conducted digitally. Nearmap's customers span across industries including insurance, government, utilities and construction.

In the year-to-date, the company's stock price has pushed 71% higher, closing at $2.61 last Friday. Overall, this is a fantastic market-beating result. However, Nearmap's share price has struggled to stay afloat this year, plummeting 38% since its June peak.

As with most unprofitable growth-stage companies, slightly missing investor expectations can send shockwaves through a company's market capitalisation. It's hardly a surprise that Nearmap's stock price stooped lower as investors grew impatient. Nevertheless, the company's earnings results were still quite strong, hence why I think this 38% discount to the Nearmap share price is looking promising for October.

Nearmap's annual contract value (ACV) increased by 36%, bringing total ACV to $90.2 million. This helped its bottom-line grow, with earnings before interest, tax, depreciation and amortisation (EBITDA) being bumped up 216% higher to $15.5 million. It also reported a healthy balance sheet, with a cash balance of $75.9 million.

As we look towards 2020, the company's growth potential looks promising. According to a report by Geobuiz, the total addressable global market for aerial imaging is expected to hit $14.2 billion by next year. Given Nearmap's year-on-year revenue numbers grew 78% in geographies like North America, the company looks to have a strong defensible proposition on a global scale.  

PolyNovo

PolyNovo is a company that operates in the health sector. It designs and manufactures dermal regeneration solutions internationally. In the year-to-date, the company's stock price has risen a whopping 263% to close at $2.18 last Friday.

While this biotech company opened shop in 1998, it has recently been in the limelight for its flagship product, NovoSorb BTM. NovoSorb BTM is a skin supplement that uses polymer technology to treat dermal ailments like ulcers and partial and full wounds. This product grew in sales by a stellar 435% in FY19.

Another important figure to note is PolyNovo's net loss after tax. This figure dropped to just $3.19 million from $5.97 million the year prior. The company expects that it will break even next year with excess cash flow still being invested into its growth.

PolyNovo currently operates in the US, Australia, New Zealand, UK and Ireland. It is looking into expanding into Asia, with expansion plans to Singapore, India and Malaysia well underway. It also has new products in development including devices for hernia and breast repair.

The company is also spending heavily on research and development, with more than 30% of revenue being allocated towards continued innovation. This figure is about 10% higher than the average for companies operating in the healthcare industry.

It seems to me that PolyNovo has a clear path to profitability and is investing heavily into some exciting products in its pipeline. This will definitely be a biotech to watch as it scales aggressively across the globe in 2020.

The post 2 fast-growing ASX shares I'm betting on in October appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A2 Milk Company Ltd (ASX: A2M) is a New Zealand company that sells A1 protein-free milk. Its key product categories include infant formula, liquid milk and milk powders.

Recently, there have been significant forces acting upon its share price. In two months, a2 Milk's share price has stooped 26% lower, closing at $12.35 yesterday, although it has since lifted 2.35% in morning trade.

Here's a breakdown of the 3 key factors driving its valuation today.

FY19 results

a2 Milk missed the mark with its FY earnings. While net profit after tax (NPAT) grew 47% higher to NZ$287.7 million, its stock price sunk 11% lower. This was because it fell NZ$9 million short of market expectations for its NPAT result. It also announced that it was halting operations in the UK.

Further to this, investors were not pleased with the company's commitment to increase marketing spend to accelerate brand awareness, which would see a2 Milk's healthy profit margin of 30% drop lower.

Despite the slight blip, the business actually performed well overall. Market penetration increased in its key product segments, with its infant nutrition products rising to 6.4% of market share in China. This helped to boost the bottom-line, as well as bolstered a2 Milk's cash position by 61% to NZ$464.8 million.

Bellamy's acquisition

If you haven't heard already, Bellamy's Australia Ltd (ASX: BAL) has entered into an agreement with China Mengniu Dairy Company for a $1.5 billion takeover bid. This 59% premium saw Bellamy's share price skyrocket 55% on the news, sitting at $12.87 at time of writing. Mengniu Dairy is one of China's leading dairy manufacturers, with a $25 billion valuation.

This saw a2 Milk's share price rise initially, perhaps an indication of strong market demand for infant formula in China, before falling below the $13 mark.

Strategy day

a2 Milk held an Investor Strategy Day in Shanghai a couple days ago, where the company presented its ingredients for ongoing success.

The company is doubling down on its two most lucrative geographical segments by investing in brand awareness and technological infrastructure. This will allow a2 Milk to maximise growth from existing products in core markets – that is, infant milk formula in China, and fresh milk in the US.

After acquiring significant market share in these segments, the company intends to broaden its product portfolio before expanding to new markets.

Time will tell if this company strategy will drive a2 Milk to success. For now, it seems that this 25% share price discount from two months ago could be a good opportunity to buy, though I must admit that a 70x price-to-earnings ratio is still a lofty valuation.

The post Is now a good time to invest in a2 Milk shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It's that time of month again. Here's the September wrap up of our beloved tech stocks on the ASX, otherwise known as WAAAX. For the uninitiated, 'WAAAX' is the Australian version of the US FAANG stocks and is comprised of our leading tech companies.

Key forces impacting the valuations of the WAAAX over the last month include company earnings and global uncertainty in trade markets.

WiseTech

This logistics company never fails to impress. WiseTech Global Ltd (ASX: WTC) has returned a stellar 107% to its investors in the year-to-date. It sports one of the highest price-to-earning (P/E) ratios in the world, hitting 196x with yesterday's $35.17 close. Since announcing its FY19 results last month, its share price popped more than 10% alone.

WiseTech's clever business model allows it to grow with its clients. This has been key to its 33% increase in net profit after tax (NPAT).

Appen

Appen Limited (ASX: APX) is in the red. Over the last two weeks, the company's share price has plunged 17% lower, closing at $21.57 yesterday, but has rallied in morning trade to be up 3.15% at the time of writing.

Appen's recent share price fall is most likely due to its price cooling amidst sky-high valuations. Appen's share price grew 142% from the new year to its peak in July of $31.42. Despite shedding off almost 20% of its market capitalisation, Appen's HY results were quite promising. Revenue and profit growth numbers hit 60% and 33%, respectively.  

While this may seem to be an attractive buy, Appen still operates on a high 53x P/E ratio, making it expensive nevertheless.

Altium

Altium Limited (ASX: ALU) has fallen 11% in the last week, closing at $33.92 yesterday, but has bounced back somewhat this morning and is currently up 3.51% in early trade.

Like Appen, it reported strong earnings, posting a 23% increase in FY revenue to US$171.8 million. NPAT was also up, rising 41% to US$52.9 million. However, amidst global trade uncertainties tech prices are cooling, especially for companies like Altium with an 86x P/E ratio.

Nevertheless, management is confident that the company can hit its goal to grow revenue to US$500 million by 2025 and secure its position as the market leader for printed-circuit board design.

Afterpay

This treasured fintech has charged 35% higher since announcing its FY19 results 3 weeks ago. Afterpay Touch Group Ltd (ASX: APT) is currently trading for $32.77, easily surpassing the revered $30 mark.

Afterpay has now successfully launched in the UK, and it's acquiring a whopping 7,900 customers daily across this new market and the US. There has been nothing but good news for this fintech.

Xero

The Xero Limited (ASX: XRO) share price has softened around 5% to $63.78 in the last two weeks. This is largely due to investor disappointment with the slow progress of Xero in capturing the US market.

The growth potential for cloud accounting software in North America is huge, reaching only 10% market penetration in countries like Canada. This pales in comparison to Australasia – where 50% of businesses use online accounting solutions.

Xero recently appointed new country managers for the US and Canada. Investors will be watching closely if this will succeed in bolstering key partner channels in the regions.

The post September WAAAX roundup: Should you invest? appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, WiseTech Global, and Xero. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While ASX growth stocks make up a fair share of my watchlist, these are the 5 gems I always find myself raving about. Here's why.

WiseTech

It's hard not to be stunned by the performance of WiseTech Global Ltd (ASX: WTC). If you've had this company in your portfolio since the beginning of the year, you would've been rewarded with a whopping 104% return on your investment. Despite having a price-to-earnings (P/E) ratio of 196x, one of the highest in the world, the company's share price still popped 10% on announcing its FY19 results.

The company has an impressive portfolio of clients, servicing 43 of the top 50 global third-party logistics providers across 150 countries. Its flagship product boasts an extremely low churn of just 1%, and its business model to charge customers on a per-use basis means WiseTech grows with its clients. Overall, net profit after tax (NPAT) was up 33%, a fantastic result for a company with an $11 billion valuation. 

Nanosonics

In the last 3 weeks, the Nanosonics Ltd (ASX:NAN) share price has risen 26% higher for a $6.18 close on Friday.

This is due to its impressive results over the year, with the company reporting that sales grew 39% to $84.3 million and its global user base expanded by 18% to 20,930 units. This was fuelled by Nanosonics' growing presence internationally, particularly in European countries, including the launch of its trophon2 across Europe, North America and Australia.

Nanosonics beat analyst expectations of NPAT of $10.27 million by a mile, growing NPAT by 137% to $13.6 million. Management is also expecting that the growth of its installed user base will be similar in FY20.

a2 Milk

While A2 Milk Company Ltd (ASX: A2M) disappointed investors with its FY19 earnings, this company is still on my top five due to its aggressive growth to date, and market penetration in China. Its share price is up 26% in the year-to-date with its $13.08 close last Friday.

At the time of writing, a2 Milk's share price has jumped another 4% after news that Bellamy's Australia Limited (ASX: BAL) received a takeover offer from a Chinese dairy product manufacturer. This could be due to market signalling from China that infant formulas are still in high demand on their shores.

Regardless of a slight blip in share price growth, a2 milk grew its earnings before interest, tax, depreciation and amortisation (EBITDA) by 46% and NPAT by 47% over the year. This demonstrates that the company continues to perform outstandingly.

Aristocrat Leisure

Aristocrat Leisure Limited (ASX: ALL) has seen its share price grow 46% year-to-date, closing at $30.78 on Friday.

I like this company because of its commitment to diversifying its revenue channels. As well as a lot machine developer, the company's growth has been in large part due to its digital business including Plarium (Israeli) and Big Fish Games (Seattle). This drove 37% of the growth in its digital segment.

In the 6 months to March, Aristocrat has grown its bottom line by 16.8% and EBITDA by 10.2%. This may be a good time to look into buying Aristocrat shares, as its FY19 result will be announced later this month.

Afterpay

This article would not be complete without mentioning this Australian success story. Afterpay Touch Group Ltd (ASX: APT) has gone through several regulatory roadblocks, but its FY19 results weave together a story of record successes.

The buy-now-pay-later company boasted a 115% increase in revenue, driven by its addition of 12,500 customers every day. Further to this, its entrance to the UK market has been hugely impressive. In just 15 weeks, the company acquired 200,000 users. Most importantly, its late income fee as a proportion of revenue has dropped 5.7% to 18.7%.

It was nothing but good news from this stellar fintech company, and this growth trajectory is expected to stay strong.

The post My top 5 ASX growth shares of all time appeared first on The Motley Fool Australia.

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Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Nanosonics Limited, and WiseTech Global. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With growth companies operating on high-flying price-to-earnings multiples, their stock prices are highly sensitive to any company-specific or market wide news.

These three stocks have had a rather tough month, which could open up buying opportunities to keen investors. Here's why you should consider these ASX shares this month.

Appen

Since hitting its peak of $31.42 at the end of July, Appen Ltd (ASX: APX) has since seen its share price slide 25.52% to $23.40 as at time of writing.

This has occurred in the aftermath of its HY announcements, where its impressive numbers beat analyst expectations. Key highlights include a 60% increase in revenue to $245.1 million and net profit after tax (NPAT) up by 67% to $29.6 million on the year prior. Similarly, its Relevance segment revenue was up 48%, while Speech and Image segment revenue lifted a staggering 85%.

However, this was overshadowed by questions around its Figure Eight acquisition. Analysts have commented that fewer contract renewals and delayed deals occurred in the second quarter of the year as a result of this 'distraction'.

CEO Mark Brayan described Figure Eight "as a new growth pillar for the Company", and time will tell if this will be fulfilled. Nevertheless, the company is trading at more than a 20% discount since last month and could be a fantastic buying opportunity.

Elixinol

The Elixinol Global Ltd (ASX: EXL) share price is currently trading for $2.23, which is 20% lower than this time last month. 

In the first half of FY19, the US CBD dietary supplement company reported a 19% growth in revenue to $18.3 million, however this is much less than the $26.6 million reported in the last half of 2018. Elixinol also announced a $9.8 million loss, attributed to its spending spree to develop new products, drive marketing spend and further R&D costs.

However, it may not all be bad news. These new products have potential for strong market fit and, given Elixinol's marketing expenditure, this should translate into a larger customer base in the months to come.

Webjet

The digital travel business, Webjet Limited (ASX: WEB), is trading 8% lower than last month, with the Webjet share price sitting at $12.36 at time of writing. Webjet and its competitors like Flight Centre Travel Group Ltd (ASX: FLT), have all suffered in this tumultuous year, with Webjet's FY results reflecting the repercussions of a decline in demand for domestic and even business travel.

However, Webjet's earnings reflect record metrics across the board. Total transaction value grew 27% to $3.8 billion, revenue was up 26% to $366.4 million and NPAT shot up 46% to $81.3 million. A key driver to the company's growth has been its B2B segment, WebBeds, which experienced a 59% increase in bookings, resulting in a 148% jump in earning before interest, tax, depreciation and amortisation (EBITDA).

However, its weak share price is most likely due to its questionable Thomas Cook acquisition. Thomas Cook's performance guidance was more than halved to $150–200 million, which also drove Webjet's overall FY20 expectations down to $27 to $33 million, rather than its initial $40 million.

While I'm still keeping this company on my watchlist, I think I'll be waiting for more news on the Thomas Cook situation before considering a buy at this price.

The post 3 beaten down ASX shares to watch in September appeared first on The Motley Fool Australia.

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Motley Fool contributor Audrey Thehamihardja has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.