If you’re a growth investor on the lookout for some new additions in July, then you might want to consider the three ASX shares listed below.
I believe all three have the potential to generate strong returns for investors in the future. Here’s why I would be a buyer of their shares:
Bravura Solutions Ltd (ASX: BVS)
The first growth share to look at is Bravura Solutions. It is a growing financial technology company which offers a number of solutions to the wealth management and funds administration industries. The key product in its portfolio that I’m most positive on, is the Sonata wealth management platform. This next generation wealth management platform has been a key driver of the company’s growth over the last few years. I expect more of the same in the future thanks to it sizeable market opportunity. This should be supported by recent acquisitions that have bolstered its offering and opened it up to new markets.
PolyNovo Ltd (ASX: PNV)
I think this exciting medical device company could be a growth share to buy. It is the company behind the impressive NovoSorb technology. NovoSorb is a biodegradable material that can aid the repair of bone fractures and damaged cartilage, and in skin grafts. I think PolyNovo’s NovoSorb Biodegradable Temporising Matrix (BTM) product, which was developed at CSIRO, could be a key driver of growth in the coming years. It is a wound dressing intended to treat full-thickness wounds and burns and has a sizeable $1.5 billion market opportunity. In addition to this, management is looking to extend NovoSorb’s use into hernia and breast treatment markets. If successful, it would add an additional $6 billion to its addressable market.
REA Group Limited (ASX: REA)
A final growth share to consider buying is REA Group. I think the property listings company is well-positioned for long term growth thanks to its leadership position and the resilience of its business model. The latter was evident during the third quarter when a 7% drop in listings volumes didn’t stop REA Group from growing its earnings. The company posted a 1% increase in revenue to $199.8 million and an 8% lift in operating earnings to $119.6 million. And while trading conditions are likely to remain tough in the near term, I expect its earnings growth to accelerate once the pandemic passes. I think this makes it worth being patient with its shares.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Why De Grey, Fisher & Paykel Healthcare, Perseus, & PolyNovo shares are charging higher
- Up 2,700% in 5 years: can the a2 Milk share price continue to climb?
- 10 high quality ASX shares to buy in FY 2021
- Where to invest $5,000 into ASX shares in July
- 3 top ASX shares to buy for growth investors in July
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd and POLYNOVO FPO. The Motley Fool Australia has recommended Bravura Solutions Ltd and REA Group 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.
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