The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) has climbed more than 11% over the past year, although much of the heavy lifting has been done by large mining businesses like BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO).
In fact other businesses have struggled over the past year as many growth shares were sold off in part to fund moves into the mining space as soaring commodity prices fuelled expectations of profit growth and share price gains.
This great rotation means there might now be some good value opportunities amongst high-quality growth shares that some powerful asset managers have sold positions in.
Below I have five growth shares I would look to buy thanks to their exciting outlooks and attractive valuations.
XERO FPO NZ (ASX: XRO) is the fonder-led Kiwi cloud-accounting business that is growing at rapid rates, but yet to post an operating profit due to its marketing and investment spending. However, the business expects to move to profitability within its current cash balance and if it makes good on this promise I expect shares will soar above today's price around $17.75.
SEEK Limited (ASX: SEK) yesterday announced an earnings per share accretive investment for FY 2018 and has serious growth prospects thanks to its ownership interest in China-based Zhaopin, among other international operations. This morning shares sell for $14.84 and look good value to me, despite the competitive threats.
CSL Limited (ASX: CSL) is another growth stock I would suggest anyone with an interest in capital growth watches as it has multiple growth levers via an expanding portfolio of fast-selling drugs alongside plenty more in the research and development stage. The company is also in the middle of another share buy-back with a wide moat that is likely to deliver steady earnings per share growth for investors over the decade ahead.
Nanosonics Ltd (ASX: NAN) is a junior healthcare business I suggest investors don't look far past thanks to its strong sales and global growth horizons. The company sells specialist disinfectant equipment to hospitals and its sophisticated medical products provide a narrow moat for the business to grow. The company's potential is no secret being on a market value around $900 million with shares at $3.05. This is a growth stock to own in my opinion and I expect a little patience may be rewarded by a cheaper share price.
1300 Smiles Limited (ASX: ONT) is the Queensland-based dental surgery aggregator that is founder led and has a formidable track record of growth thanks to its acquisitive and organic growth strategy. 1300 Smiles' share price is up 50% over the past five years and the company's focus on shareholder returns is trumpeted by its CEO who takes a small base salary as he prefers to focus on growing dividend payouts due to his own substantial shareholding. It looks a great small-cap for steady growth over medium term horizons.
