Australian growth investors are a lucky bunch. Right now, there are a large number of companies on the ASX that are growing their earnings at a rapid rate.
Three which I believe can continue this trend for some time to come are listed below. Here’s why I think they are top options for growth investors:
a2 Milk Company Ltd (ASX: A2M)
The first ASX growth share to buy is a2 Milk Company. As I covered here last week, a2 Milk Company has been an exceptionally strong performer since its listing on the ASX in 2015. Over this time the company has gone from running loss-making operations to having an extremely profitable business. The catalyst for this has been the insatiable demand for its infant formula in China. The good news is that it still only has a modest market share in the lucrative market. In light of this, I believe it has a long runway for growth and further strong returns await investors over the coming years.
Kogan.com Ltd (ASX: KGN)
Another company which I believe has the potential to grow materially in the future is Kogan. It is benefiting greatly from the structural change that is happening in the retail industry and has been accelerated by the pandemic. I expect more and more retail spending to be made online over the next few decades, which bodes well for its increasingly popular website. In addition to this, the launch of Kogan Marketplace appears to have been a huge success and looks likely to underpin strong growth in the coming years.
Xero Limited (ASX: XRO)
A final ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider. It has been growing its recurring revenues at a very strong rate over the last few years thanks to the increasing popularity of its platform with small businesses across the world. Xero now has ~2.3 million subscribers globally, which may seem like a large number, but is actually only a small portion of a massive global market opportunity.
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More reading
- I think these 2 ASX 200 shares will beat the market
- 3 top Warren Buffett quotes to start your week right
- Why a2 Milk, Freedom Foods, Scentre, & TPG Telecom are dropping lower
- Real wealth from 3 roaring mid caps in May
- Why these ASX retail shares surged over 25% in the past 2 weeks
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk and Xero. 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.
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