I think there are a large number of quality growth shares for investors to choose from on the Australian share market.
Three of the most popular growth shares on the local market right now are listed below. Should you buy their shares?
A2 Milk Company Ltd (ASX: A2M)
One of my favourite growth shares on the Australian share market would have to be this infant formula and dairy company. Although its shares trade at a premium to the market average, I believe they are at a level that is more than fair given the company's current growth profile. The fast-growing company recently advised that increasing demand for its products in China and the ANZ region led to the company posting a 64.5% jump in net profit to NZ$86 million during the first four month of FY 2019.
Costa Group Holdings Ltd (ASX: CGC)
Another company that looks well-positioned to grow at a strong rate over the next few years is Costa Group. The horticulture company recently reaffirmed its guidance for low double digit NPAT-S growth for the 12 months ending June 30 and reconfirmed its long-term guidance for an average trajectory of low double digit annual average NPAT-S growth over a three to five year period. If it delivers on its long term targets then I expect its shares will have moved significantly higher from here in five years.
NEXTDC Ltd (ASX: NXT)
With more and more software and services becoming cloud-based and consumers and businesses created an ever-increasing amount of data, I believe data centre operators such as NEXTDC are likely to experience a jump in demand over the coming years. In fact, just last month NEXTDC reported that a surge in demand had led to it pulling forward capacity expansion plans to satisfy it. One negative, though, is that its shares do change hands on lofty multiples. While I expect that its growth will justify this, there is a risk that if its growth is slower than anticipated its shares could come under pressure.
