Many ASX growth shares have rocketed higher despite the bear market in 2020. The S&P/ASX 200 Index (ASX: XJO) has slumped 16.60% lower this year while many top tech and healthcare shares have surged.

But with all the craziness in the share market right now it can be hard to know what to buy. Here are a few top ASX growth shares that I’m keeping an eye on in the year ahead.

Where to invest $5,000 in ASX growth shares today

One ASX healthcare share I like the look of is Polynovo Ltd (ASX: PNV). Polynovo shares are up 45.99% this year and more than 100% since 23 March. Those are some impressive growth numbers and in my opinion the Aussie biotech group could charge higher.

Polynovo’s NovoSorb BTM product is seeing strong sales, which is underpinning its share price growth. I think the breakthrough burns treatment could see strong demand in the medical sector and Polynovo is certainly on my watchlist.

Another ASX growth share to watch is A2 Milk Company Ltd (ASX: A2M). A2 Milk shares have rocketed 3,708% higher in the last 5 years and are continuing to climb in 2020.

Strong supermarket sales have been good news for suppliers like a2 Milk. The Kiwi company plans to expand into Canada, which should open up further growth channels beyond this year.

It’s hard to ignore the tech sector when talking about ASX growth shares. I still like the look of NextDC Ltd (ASX: NXT) shares despite rocketing higher in 2020.

Strong demand for data storage and security is good news for NextDC. With a move towards more working from home looking likely in Australia, NextDC shares could climb in the coming years.

Given its strong balance sheet and strategic expansion plans, I think this ASX tech share could be a potential ASX top 5o company in no time.

Foolish takeaway

There are ASX growth shares to buy in all kinds of sectors. I think the keys right now are stable earnings prospects and strong balance sheets to weather the storm in 2020.

More reading

• The one sector that could experience a V-shape COVID-19 recovery
• Is $1,000 in Scentre shares a good investment?
• 5 things to watch on the ASX 200 on Tuesday
• CSL shares have underperformed the ASX 200 over the past month. What’s going on?
• These are the latest ASX shares to be upgraded by brokers to buy

Motley Fool contributor Ken Hall 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.

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A 10-bagger share increases in value by at least 10 times its purchase price. At the moment everyone is pretty excited about the Afterpay Ltd (ASX: APT) share price. Yesterday alone, it rose by 8.96% to new highs. In fact, if you had purchased Afterpay on its IPO, you would have seen your investment increase in value more than 15 times. At the time of writing, the Afterpay share price had a compound annual growth rate (CAGR) of 285.5% in just under 3 years. 

Unfortunately, most of us aren’t smart enough or lucky enough to pick great shares at IPO. The 5 ASX 200 shares below would all have turned $10,000 into at least $100,000 over the past decade. Many of them had listed way before 2010. 

5 top 10-bagger shares

Jumbo Interactive Ltd (ASX: JIN) is a lottery retailer in Australia, selling games under agreement with government licensed lottery operator Tatts Group. Unlike previous lottery resellers, Jumbo Interactive sells via the internet. The company considers itself to be a software engineering company first and foremost. The company became a 10-bagger share when it opened its software to be licensed by lottery sellers globally. Since 2010, its share price has grown just over 31 times. 

Appen Ltd (ASX: APX) provides or improves data used for the development of machine learning and artificial intelligence products. It works with some of the world’s leading technology companies. This has included working with Apple Inc. on its voice assistant “Siri”. Since listing in 2015, this company has grown over 54 times. 

Magellan Financial Group Ltd (ASX: MFG) is the definition of compound growth. Smart investing in US growth shares has given this company a massive CAGR of 52.4% over the past 10 years. Its share price today is 66.6 times larger than on 1 January 2010. An investment of $10,000 at that time would now be worth ~$656,000. It holds significant stakes in some of the worlds largest companies and has done so since very early in their growth. These have included Apple, Facebook, Alphabet (Google) and business software giant SAP. 

Altium Limited (ASX: ALU) is, I think, one of the truly spectacular performers on the ASX across many areas. This company is not a 10-bagger share, it is a 100-bagger. It sells PC-based electronics design software for engineers who design printed circuit boards. Over the 10 years in question, it has achieved compound annual growth rates (CAGR) across sales, earnings per share, and equity growth well in excess of 10%. With a share price CAGR of 65%, Altium would have grown a 2010 investment just over 146 times.

The big one

The dominant share across the past decade has of course been gold miner Northern Star Resources Ltd (ASX: NST). If you had invested $10,000 with Northern Star on 1 January 2010 it would be worth over $4,700,000 today (at the time of writing). A growth rate of 479 times is the stuff that dreams are made of. The current high gold price has helped in during 2020. Still, most of its share price growth happened between 2014 and February, 2020 – a period entirely pre-pandemic. 

The company’s secret formula has been to buy well, increase the gold reserves, increase the production and profitability, and divest itself of poorly performing assets quickly. 

Foolish takeaway

This decade’s 10-bagger shares are likely to have many characteristics of these companies. They will likely be technology focused or technology adaptors and productive users of capital, consistently improving revenue and profits. I do not think that many of these companies have finished their growth stages yet.

For example, Northern Star clearly has global domination in its sights. Altium has a 10-year track record of excellent growth with no signs of stopping. And Magellan is run by one of the most respected investors the nation has ever produced. 

More reading

• Why Afterpay and these ASX shares just zoomed to 52-week highs
• ASX 200 jumped higher, rises more than 2%
• 3 stellar ASX tech shares to buy and hold for decades
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Appen Ltd. The Motley Fool Australia has recommended Jumbo Interactive 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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It’s been a wild start to 2020 for Webjet Limited (ASX: WEB) and other ASX travel shares amid the coronavirus pandemic. Countries have shutdown incoming air traffic while even domestic borders remain shut to most travellers.

That’s bad for the travel business. Airlines are struggling and it makes sense that many of the other industry players are too. 

But, the Webjet and Flight Centre Travel Group Ltd (ASX: FLT) share prices both rocketed higher yesterday. You might be wondering if it’s too early or too late to buy ASX travel shares. Here’s how I see the current market valuations playing out in 2020.

What’s going on with ASX travel shares?

It’s pretty obvious why the Aussie travel shares got sold down by investors in February and March. The situation looked pretty bleak for the industry for most of 2020, if not beyond.

But what’s causing double-digit share price moves right now? Webjet shares closed yesterday 15.56% higher at $4.16 per share while Flight Centre jumped 15.23% to $13.01 per share.

There were no major announcements from either ASX travel share on Monday. However, there is intense speculation that a trans-Tasman travel bubble could happen sooner rather than later.

That means these booking groups, as well as the airlines like Air New Zealand Limited (ASX: AIZ), could benefit from increased traffic.

On top of that, domestic travel restrictions are beginning to ease which could be a much-needed earnings boost for Webjet and Flight Centre.

Is it too early to buy Webjet shares?

Many investors are wary of false positives in the current market. While the ASX travel share rocketed higher yesterday, I’d be thinking if it’s too early rather than too late to buy.

Personally, I think it’s still to early to buy Webjet shares. There’s plenty of uncertainty facing the travel industry and no one knows what 2020 or 2021 look like in terms of traffic.

Even if borders do start to open, many people have lost their jobs and may not be able to afford to travel, or be comfortable with travelling.

That means the current valuation is a little too high for my liking. However, Webjet shares could be back in the buy zone if things start to get a little clearer this year.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumped higher, rises more than 2%
• These ASX 200 share prices were cut in half. Where are they now?
• Why Flight Centre and Webjet shares are zooming higher today
• ASX 200 up 1.7%: Flight Centre and Webjet rocket, Afterpay hits record high

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Australian share market started the week on an extremely positive note on Monday. This led to a good number of shares charging notably higher.

Some shares climbed more than most and a few even managed to hit 52-week highs or better.

Here’s why these ASX shares are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price continued its positive run and raced to a record high of $49.00 on Monday. Investors have been fighting to get hold of the payments company’s shares in recent weeks for a number of reasons. These include its very strong performance during the third quarter, WeChat owner Tencent Holdings becoming a substantial holder, explosive active customer growth in the U.S. market, and its upcoming addition to the MSCI Australia index.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price hit a 52-week high of $4.91 yesterday. The discount retailer’s shares have been strong performers over the last few weeks and are now up over 63% since this time last month. One of the catalysts for this appears to have been a broker note out of Goldman Sachs. At the start of the month the broker upgraded its shares from a sell rating to a buy rating with a $4.75 price target. It spoke positively about its turnaround story with a new executive team, its robust balance sheet, and the potential for material improvements in efficiencies in labour, rent, and stock turn.

Whispir Ltd (ASX: WSP)

The Whispir share price hit a record high of $2.80 on Monday. Investors have been buying the communications workflow platform provider’s shares in recent months due to its strong performance during the pandemic. The work from home initiative has been driving increased demand for its offering, which led to solid Annualised Recurring Revenue (ARR) growth during the third quarter. Whispir posted a 10.4% quarter on quarter jump in its ARR to $40.5 million. This was the result of a record addition of 49 net new customers and increased platform use by existing customers.

More reading

• 5 ASX 200 10-bagger shares of the decade
• ASX 200 jumped higher, rises more than 2%
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?
• The Afterpay share price just hit a new record high: Should you invest?

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 Whispir Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Whispir 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 post Why Afterpay and these ASX shares just zoomed to 52-week highs appeared first on Motley Fool Australia.

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Given the bleak outlook for interest rates in Australia over the next few years, if I had $10,000 sitting in a savings account, I would be looking to put it to work in the share market.

But where should you invest $10,000? Three top ASX shares that I would buy with these funds are listed below. Here’s why I like them:

Freedom Foods Group Ltd (ASX: FNP)

Freedom Foods is a growing food company with a focus on healthy eating. After several years of investing heavily in its business, the company now looks well-positioned for strong growth in the coming years. Especially given the increasing demand it is experiencing in key channels and its exposure to on trend categories such as dairy, nutritionals, and plant beverages. This was evident in the first half of FY 2020 when Freedom Foods delivered a 43.4% increase in sales and a 42.1% lift in operating net profit after tax.

Pushpay Holdings Group Ltd (ASX: PPH)

Another option to consider investing $10,000 into is Pushpay. It provides a donor management platform to the faith, not-for-profit, and education sectors. The company has worked hard over the last few years to carve out a leadership position in the sector and is now reaping the rewards. In FY 2020 the company grew its operating profits at an explosive rate. Pleasingly, thanks to increasing demand, its guidance for FY 2021 implies another doubling of profits. And given how it is still only scratching at the surface of its sizeable market opportunity, I believe there is plenty more to come from Pushpay over the next decade.

SEEK Limited (ASX: SEK)

A final share to consider buying with $10,000 is SEEK. While times are hard because of the pandemic, I think this job listings company would still be a great option due to its positive long term growth outlook. This is due to its international operations and particularly its China business. I believe the latter has the potential to underpin strong earnings growth over the next decade. So, with its shares down 20% from their high, now could be an opportune time to snap them up with a long term view.

More reading

• Got $2,500? I’d buy these 2 ASX shares in a heartbeat
• Which is the best ASX entertainment media share?
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Freedom Foods Group Limited and SEEK 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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ASX shares are a great way to great your wealth with a small starting amount. You don’t need to have a huge amount of cash set aside like having a house deposit.

With everything that’s going on with the coronavirus it’s hard to say what the shorter-term outlook is for some ASX shares.

But there are some picks that I’d buy in a heartbeat:

ASX share 1: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is electronic donation business. At the moment its client base is focused on large and medium US churches which are obviously huge sources donations each year. A large amount of those donations were in cash.

But now with the social distancing and restrictions, electronic donations very valuable to churches. Even if total giving reduces, it seems electronic giving will dramatically rise. It also helps that Pushpay offers a livestreaming option.

I think Pushpay is still an underappreciated ASX share by investors. Obviously the Pushpay share price has jumped recently. But I think FY21 alone looks very promising. The earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is expected to just about double.

Pushpay is still expecting further strong revenue growth with expanding profit margins. It’s still targeting over 50% of the medium and large church segments which is an opportunity representing over US$1 billion in annual revenue. That’s a big, long-term growth runway. 

I’d buy it in a heartbeat because I think the next three to five years could be very promising.

Pick 2: Bubs Australia Ltd (ASX: BUB)

Bubs is another ASX share I’d be very happy to buy today. The growth it has generated over the past three years has been very impressive. I like how it has become a vertically integrated player with its own canning facility.

The infant formula business is consistently expanding its distribution netowrk. Its growth in China is of course a major part of the opportunity. The FY20 third quarter Chinese revenue rocketed 104% compared to the prior corresponding period.

Outside of China and Australia, its ‘other markets’ revenue rose by 20 times in the FY20 third quarter, with significant growth in Vietnam. This represented 12% of total sales. That’s very promising for the ASX share.

I was particularly pleased to see that Bubs generated positive cashflow of $2.3 million in the quarter. I think this is a great milestone. If Bubs remains cashflow positive then it’s a much safer bet.

Foolish takeaway

I think both of these ASX shares have great prospects. They’re one of the few shares to see acceleration of growth during this period, adding onto their already impressive outlooks. Both are seeing rising margins, so it’s hard to pick a favourite. I’d want to buy both!

More reading

• Where to invest $10,000 into ASX shares immediately
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash
• Where growth, income, and value investors can invest right now

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended BUBS AUST FPO. 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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