I believe Australian investors are spoilt for choice when it comes to growth shares. But with so much choice in can be difficult to decide which of them to invest your hard earned money into.
To help you on your way I thought I would pick out 10 growth shares which I expect to have an outstanding year. Here they are:
a2 Milk Company Ltd (Australia) (ASX: A2M)
This fast-growing dairy company recently reported a massive 290% increase in net profit after tax to NZ$39.4 million, thanks partly to a 348% jump in sales in its China and Asia segment. I believe the company has an extremely bright future, not just in China but also in the UK and the U.S. For this reason I think it is a great buy and hold investment.
Altium Limited (ASX: ALU)
Thanks to the rise of connected devices, Altium's printed circuit board (PCB) software has been growing in popularity at a rapid rate. So much so the company recently reported that it has grown its pure PCB market share to 16%. Management is targeting revenue of US$200 million by 2020, up from a forecast US$100 million in FY 2017.
BWX Ltd (ASX: BWX)
BWX is the company behind the Sukin skincare range. It recently reported a 36.4% jump in half-year sales to $37.5 million, with net profit after tax up 30.2% to $8.2 million. Thanks to demand from China and its expansion in the United Kingdom, I expect this strong growth can continue for at least the next couple of years.
Corporate Travel Management Ltd (ASX: CTD)
This fast-growing travel company released a very impressive half-year result on Friday. Revenue rose 26% to $150.5 million and statutory net profit jumped 28% to $22.1 million during the period. Thanks to a strong U.S. economy and the mining recovery in Australia, I believe Corporate Travel Management could be positioned for an incredibly strong year.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Although at 40x estimated FY 2017's earnings its shares are by no means cheap, I believe the level of growth that Domino's has been exhibiting makes this a more than fair premium to pay. For the full-year management expects earnings to grow 32.5% year-on-year.
Galaxy Resources Limited (ASX: GXY)
If the strong demand for lithium ion batteries to be used in smart devices, renewable energy, and electric vehicles continues, I expect the price of lithium will remain at high levels for some time. In my opinion Galaxy is one of the highest quality lithium miners in the world and I expect it to profit greatly from the lithium boom.
Nick Scali Limited (ASX: NCK)
As long as the housing market remains strong, I expect Nick Scali will continue to grow its bottom line at a solid rate. Thanks to same-store sales growth of 10.1%, half-year profit after tax rose a whopping 44.7% to $20.5 million. Pleasingly the second-half has started just as strongly, which I believe means yet another record full-year result is coming this year.
Treasury Wine Estates Ltd (ASX: TWE)
I expect the growing demand for this wine company's products in China and the United States to drive margin expansion and strong earnings growth for the next few years. Its shares may be a little on the expensive side at 32x trailing earnings, but I believe its growth potential justifies the premium.
Vocus Group Ltd (ASX: VOC)
This fast-growing telco company recently announced half-year statutory profit growth of 95% to $47 million. Despite this its shares are still changing hands at around 15x trailing earnings. I believe this makes it a bargain buy and a far better option to slow-growing stalwart Telstra Corporation Ltd (ASX: TLS).
Webjet Limited (ASX: WEB)
Thanks to strong bookings growth in its consumer and business-to-business segments this online travel agency recently reported an impressive 86.9% increase in half-year net profit after tax. In light of the strong result, management also raised its full-year guidance. Management expects EBITDA for continuing businesses to rise to $61.1 million. Previous guidance for FY 2017 was set at $57 million.
