If you're a fan of growth shares like I am, then you're in luck because the Australian share market is home to a high number of quality shares with strong long-term growth potential.
Three that I would consider snapping up right now are listed below. Here's why I like them:
A2 Milk Company Ltd (ASX: A2M)
I think that this infant formula and dairy company is well worth considering right now after a sharp pullback in its share price. Its shares have fallen 21% from their 52-week high and are now changing hands at 32x estimated FY 2019 earnings. I think this is a fair multiple to pay for its shares given its strong growth prospects. Especially if a broker note out of Goldman Sachs proves accurate. A note released last month forecasts profit growth of 53% per annum from FY 2018 through to FY 2020. I think this is achievable due to the company's growing footprint and the ever-increasing demand for its infant formula products in China.
Kogan.com Ltd (ASX: KGN)
Kogan.com is another company which has seen its shares pull back significantly from their 52-week high. Based on yesterday's close price, Kogan.com's shares are down almost 39% from their high. A strong but not quite strong enough full year result, no guidance, and insider sales have weighed heavily on its shares in recent weeks. While the lack of guidance is a touch concerning, I'm optimistic that the company will deliver another strong result in FY 2019. A note out of UBS last month reveals that its analysts expect earnings per share to come in at 26 cents this year, meaning its shares are trading at an attractive 23.5x forward earnings right now.
Megaport Ltd (ASX: MP1)
Megaport is a company that I believe could be a big winner from the cloud computing boom. It provides elasticity connectivity and network services in 221 data centres globally. In FY 2018 its ever-expanding footprint led to customer numbers increasing 41% to 1,038 and revenue growing at an even quicker rate of 85% to $19.8 million. With demand for its services continuing to increase, I expect FY 2019 to be an equally strong year. Though, it is worth noting that its shares are a little on the high-risk side due to the lofty premium they trade on.
