3 top growth shares I might buy in August

These 3 growth shares are on my watchlist.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

a woman

I think it's a good idea to know which shares you'd buy in the upcoming few weeks so that you don't have to do research after you have investment cash ready.

Obviously, share prices change all the time so your share target may change if they aren't as good value.

However, if the prices stay as they are then I'm probably going to buy one of these top growth shares:

Challenger Ltd (ASX: CGF)

Challenger is Australia's leading annuity provider, it turns a retiree's capital into a guaranteed source of income. This is a very valuable service as many retirees don't have the time or skill to know how to manage their retirement money.

Not only is its retiree target age group, over-65s, going to increase by 75% over the next two decades but the government also just introduced new rules in the budget where every superannuation fund must offer its members an option for income for life. This could provide a big boost for Challenger

The share price has fallen back in recent months due to rising interest rates, however its underlying profit is on course for strong rises over the next few years.

It's currently trading at 17x FY19's estimated earnings.

Costa Group Holdings Ltd (ASX: CGC)

The food producer is one of the largest fresh food growers. It produces tomatoes, berries, citrus fruit, avocadoes and mushrooms.

It has grown at a good rate since it first listed thanks to organic growth and acquisitions. It's becoming a global food player and keep could keep producing impressive results as demand increases from the Chinese middle class, general food scarcity and changing healthy food habits in Australia.

It's currently trading at 26x FY19's estimated earnings.

BETANASDAQ ETF UNITS (ASX: NDQ)

The US tech shares have seen a large sell-off since Facebook's disappointing update. The social media giant is down over 20%, although it is substantially higher than when the Cambridge Analytica scandal was occurring.

Over the long-term I expect that Facebook, Alphabet (Google), Microsoft, Apple and Amazon will keep being long-term winners considering the revenue growth that they are all creating. Short-term issues create good opportunities to buy quality shares at beaten-down prices.

Foolish takeaway

At the current prices I think it will be quite difficult to choose between Costa and Challenger because both of them are trading at attractive value for the long-term growth they are likely to create.

Motley Fool contributor Tristan Harrison owns shares of Challenger Limited and COSTA GRP FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS, Challenger Limited, and COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Growth Shares

3 ASX shares that could double over the next decade (or much sooner)

These shares could be positioned to deliver strong returns in the future. Let's find out why.

Read more »

A golden egg with dividend cash flying out of it
Growth Shares

Forget Easter eggs, these ASX shares could be your best buys this month

These shares could be top buys after the Easter break.

Read more »

Two smiling work colleagues discuss an investment at their office.
Growth Shares

3 amazing ASX growth shares I'd buy and hold for the next decade

These shares could be worth holding tightly to for the long term.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Growth Shares

$5,000 invested in Droneshield shares 4 months ago is already worth…

Investors will be thrilled!

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »

Increasing white bar graph with a rising arrow on an orange background.
Growth Shares

Here's what I consider to be the very best ASX 200 share to buy in April

This business looks heavily undervalued to me.

Read more »

Scared people on a rollercoaster holding on for dear life, indicating a plummeting share price
Growth Shares

3 reasons to buy this red-hot ASX healthcare stock today

Brokers think the biotech share is gearing up for its next big move.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Growth Shares

2 ASX stocks that could help turn $10,000 into $1 million

I’d think about adding these ASX shares to your portfolio.

Read more »