The good news for growth investors is that the local share market is home to a great number of shares with the potential to grow their earnings at an above-average rate over the next few years.
But with so much to choose from it can at times be hard to decide which ones to buy.
To help you on your way, I've picked out three of my favourites. They are as follows:
Afterpay Touch Group Ltd (ASX: APT)
I think that Afterpay Touch is arguably one of the best growth shares on the local market at the moment and a company with enormous potential. In an update released towards the end of last year, management advised that annualised sales are now in excess of $1.5 billion based on its recent monthly performance. I believe this is still only the beginning, especially given its plan to launch the Afterpay service into the lucrative U.S. market in the not so distant future.
Corporate Travel Management Ltd (ASX: CTD)
This fast-growing travel management company's shares came under pressure at the end of last year after it emerged that CEO Jamie Pherous had offloaded almost 1.2 million shares. I think this has been an overreaction, given that he still holds 20 million shares and clearly has his interests firmly aligned with shareholders. The good news is that I think this has left its shares trading at a very attractive level when you consider the company's strong long-term growth prospects in a highly fragmented corporate travel industry.
Xero Limited (ASX: XRO)
I think this accounting software company could be a great buy and hold investment. While Xero has a very strong share of the Australian and New Zealand market, its share of the global market pales in comparison to some of its rivals. Given the quality of its product, I believe there is a massive global opportunity that could provide it with above-average growth for at least the next decade. Not least in the lucrative U.S. market.
