There's certainly a lot of choice for growth investors on the Australian share market.
But with so many top growth shares to choose from, it can be hard to decide which ones to buy.
To help narrow things down I thought I would pick out three shares that I think could be the best on offer right now. Here's why I like them:
A2 Milk Company Ltd (ASX: A2M)
One of the best performing shares over the last three years has been this infant formula and dairy company. Thanks to its explosive earnings growth underpinned by the insatiable demand for its a2 Platinum infant formula in China, a2 Milk's Company's shares have generated a return of 570% over the period. This means a $25,000 investment three years ago would be worth almost $170,000 today. While I believe it is incredibly unlikely that its shares will generate a return anywhere near this level over the next three years, I feel its shares have market-beating potential thanks to its growing share of the Chinese infant formula market and the positive performance of its fresh milk business in the ANZ region.
Altium Limited (ASX: ALU)
Altium is the electronic design software provider behind the award-winning Altium Designer product. This software is used by companies such as BAE Systems, Dell, NASA, and Microsoft to design printed circuit boards (PCB) that are found inside most electronic devices. Due to the Internet of Things boom and the quality of the product, I expect subscriptions for its software to continue growing strongly over the next decade. Together with its Octopart business, which itself has a significant addressable market, I believe Altium is well-positioned to deliver above-average earnings growth for some time to come.
Appen Ltd (ASX: APX)
Appen is another tech share which I think would be a great long-term option for growth investors. Like Altium, it has a large number of blue chip customers including the likes of Microsoft and Facebook. They use Appen due to its industry leading position in the development of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Given the importance of machine learning and AI, I believe Appen has a significant runway for growth. And while its shares are changing hands at ~37x estimated FY 2019 earnings today, I remain confident that its earnings growth over the coming years will justify this premium valuation.
