If you’re wanting to add a few growth shares to your portfolio in July, then I think the two listed below would be great options.
Here’s why I think they are among the best growth shares on the ASX:
a2 Milk Company Ltd (ASX: A2M)
I think a2 Milk Company shares could provide investors with outsized returns over the coming years. This is because I believe the infant formula and fresh milk company is capable of growing its earnings at a strong rate due to the growing popularity of its infant formula in China (and its modest market share in the key market) and the expansion of its fresh milk footprint in North America.
In addition to this, thanks to the high levels of free cash flow it is generating, a2 Milk Company is currently sitting on a mountain of cash. I believe it is likely to put this to work in the near future and could use it to accelerate its growth through value accretive acquisitions and/or new product launches.
Appen Ltd (ASX: APX)
Another growth share I think would be a great option is Appen. I’m a big fan of Appen due to its exposure to the rapidly growing machine learning and artificial intelligence (AI) markets. It provides high-quality, human annotated dataset development services to these markets. This is an integral part of the process and unsurprisingly means its services are in high demand.
Given the outlook for these markets, I’m confident this will remain the case for a long time to come and drive very strong earnings growth over the next decade. So, although the Appen share price is trading at a record high, I would still buy its shares if you’re planning to make a long term investment.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- Why I would buy and hold a2 Milk and this ASX 200 share until 2030
- What’s next for WAAAX shares?
- Fund managers have been snapping up Sonic and these ASX 200 stocks
- These 2 ASX tech shares show stellar growth prospects
- Why I’d buy and hold a2 Milk shares until 2025
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk 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.
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