I think that the Australian share market is home to a good number of growth shares with the potential to beat the market over the next few years.
Three potential market beaters that I would buy today are listed below. Here's why I like them:
A2 Milk Company Ltd (ASX: A2M)
There's no denying that on paper the shares of this fast-growing dairy and infant formula company look expensive. But I would argue that they are actually fairly valued given a2 Milk Company's growth potential. Demand for its products from the China market has been growing at an incredible rate and shows no signs of slowing. This should be supported by its rising middle class, the lifting of its one-child policy, and recent regulatory changes that make it harder to sell infant formula in the lucrative market. In addition to this, the company has recently announced plans to expand into South Korea and grown its footprint significantly in the United States.
Corporate Travel Management Ltd (ASX: CTD)
As a leader in a growing and highly fragmented global corporate travel market, I think Corporate Travel Management would be a great buy and hold investment. Earlier this year the company delivered an impressive 33% increase in underlying first-half net profit. Pleasingly, management appears optimistic that there will be more of the same in the second-half and advised that the company is on track to hit the top end of its guidance. This would mean year-on-year EBITDA growth of approximately 27.5%. I suspect it might outperform this guidance.
CSL Limited (ASX: CSL)
This global biotherapeutics company has a solid track record of delivering market beating returns for its shareholders and I don't expect this to change any time soon. Thanks to the strength of its core business, a growing pipeline of products, and its fledging influenza business, I believe CSL is more than capable of growing its earnings at an above-average rate for the foreseeable future. This could make it a stand out pick for investors, in my opinion.