When it comes to growth shares on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), I feel investors are spoilt for choice.
Australia is home to some outstanding companies with incredibly exciting prospects. But with so much choice it can be hard to decide which shares to invest in.
At the top of my list would be these four:
a2 Milk Company Ltd (Australia) (ASX: A2M)
This dairy company has been growing at an explosive rate. At its recent AGM a2 Milk provided the market with a trading update for the July to October period. Incredibly, the company reported profit before tax growth of 536% to NZ$35 million. Strong sales growth in China and the UK, as well as an improvement in the United States helped drive the result.
Corporate Travel Management Ltd (ASX: CTD)
Thanks to organic growth and earnings accretive acquisitions, Corporate Travel Management has grown earnings at an average of 25.5% per year for the last five years. The good news is that this trend looks set to continue in FY 2017. Management has forecast EBITDA in the range of $85 million to $90 million, which will mean year-on-year growth of between 23% and 30%.
Mayne Pharma Group Ltd (ASX: MYX)
I believe this fast-growing pharmaceutical company has a bright future ahead of it thanks to its lucrative pipeline of generic drugs with estimated sales potential in the US market of over US$7 billion a year. The company is however one of a number of pharmaceutical companies being investigated by the US Department of Justice for alleged price fixing. Management doesn't believe any penalties imposed will be material to earnings, but it may be prudent to hold out until the matter is resolved.
Vocus Communications Limited (ASX: VOC)
It hasn't been a great year for shareholders of this growing telco company. Boardroom fallouts and fears over NBN margins have hit the company hard, which has resulted in its share price dropping over 40% in the last six months. I believe this has created an excellent buying opportunity for investors that are willing to be patient. The NBN rollout has levelled the playing field and I believe Vocus is in a great position to grow its market share.
