The S&P/ASX 200 Index (ASX: XJO) has historically delivered total returns of around 9% per year over the long term. That is a solid benchmark. But as an active investor, I am always looking for businesses that I believe can outperform that average.
Right now, I see three ASX 200 growth shares that, in my view, have the ingredients to beat the broader market over the next 12 months and potentially well beyond.
SiteMinder Ltd (ASX: SDR)
I think SiteMinder is building serious momentum.
At its recent annual general meeting, management highlighted accelerating annual recurring revenue (ARR) growth of 27.2% on a constant currency organic basis in FY25. That is not only strong growth, but it is also an acceleration from the prior year. The business has also flipped to positive underlying EBITDA and free cash flow, which I see as an important inflection point.
What really excites me is the Smart Platform strategy. Management is repositioning SiteMinder as the “revenue flight deck” for hoteliers, integrating intelligence, pricing, and distribution into a single workflow. According to the presentation, the company currently monetises just 0.3% of the US$85 billion in gross booking value it facilitates, with potential to exceed 1.5% at full product adoption.
To me, that signals a long runway for revenue expansion, even within its existing customer base. If SiteMinder can continue compounding ARR at high-20% levels while improving profitability, I believe it has a genuine chance of outperforming the index.
Codan Ltd (ASX: CDA)
Codan is another ASX 200 growth share that I think the market may still be underestimating.
The company delivered revenue of $393.5 million in the first half of FY26, up 29% on the prior corresponding period, with EBIT up 52% and NPAT up 55%. That is powerful operating leverage.
What stands out to me is the performance of its Metal Detection segment. Revenue in this division surged 46% to $168 million, with segment profit up 86%. Management specifically referenced strong gold detector demand in Africa and favourable gold price conditions as drivers of this growth.
With gold now trading above US$5,000 an ounce, I believe the incentive for both small-scale and recreational gold hunting remains elevated. Codan’s Minelab business is a global leader in handheld metal detection technology. If high gold prices persist, demand for detectors could remain strong.
At the same time, Codan’s Communications division continues to benefit from elevated defence spending and demand for unmanned systems technology. For me, this combination of gold exposure and defence communications creates a diversified growth profile that could continue surprising to the upside.
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix is a different type of growth opportunity, but one I think has the potential to outperform.
In FY25, Telix delivered revenue of US$803.8 million, up 56% year on year, achieving upgraded guidance. That level of top-line growth is rare among companies of this size.
Importantly, Telix’s Precision Medicine segment continues to scale, with segment revenue up 22% and adjusted segment EBITDA up 24% year on year. The company is also guiding to FY26 group revenue of US$950 million to US$970 million, which implies continued strong momentum.
What I like most is that Telix is reinvesting heavily in its therapeutic pipeline while maintaining commercial momentum. If even a portion of its late-stage assets deliver, I think earnings could step up meaningfully over time.
Foolish Takeaway
The ASX 200’s long-term 9% return is a useful benchmark. But I believe SiteMinder, Codan, and Telix each have business-specific catalysts and structural tailwinds that could enable them to outperform the average.
Of course, ASX 200 growth shares can be volatile, and short-term returns are never guaranteed. But based on their recent updates and current momentum, I think these three names have a genuine shot at beating the market over the year ahead.
The post Why I think these ASX 200 growth shares could beat the market appeared first on The Motley Fool Australia.
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Motley Fool contributor Grace Alvino has positions in Codan. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.