I believe there are a great number of growth shares on the Australian share market that have the potential to generate strong returns for investors over the long term.
Three that I think could be in the buy zone right now are listed below. Here's why I think investors ought to pick them up this month:
Cochlear Limited (ASX: COH)
Cochlear is one of the world's leading hearing solutions company and one of my favourite growth shares on the Australian share market. It has been a strong performer over the last decade thanks to increasing demand for its hearing implants globally. The good news is that I believe this strong form can continue for some time to come due to populations around the world ageing and its wide distribution network.
Webjet Limited (ASX: WEB)
Another top growth share to consider is this online travel agent. I believe the growing popularity of its numerous travel booking brands has positioned it perfectly to profit from the shift to online travel booking from traditional bricks and mortar travel agents over the next decade. This year Webjet's management has provided EBITDA growth guidance of 26% from continuing operations. This is likely to be given an additional boost from the recent acquisition of the Destinations of the World business.
Xero Limited (ASX: XRO)
I think Xero would be a great option for growth investors. The cloud-based business and accounting software provider has been growing at an impressive rate in recent years and this has continued in FY 2019. In the first half of the financial year the company posted a 37% increase in first half revenue to NZ$256.5 million. It also finished the period with annualised monthly recurring revenue of NZ$589.1 million, which was 40% higher than the prior corresponding period. The strong performance was driven by its sky high retention rate and the addition of 193,000 net subscribers. Given the quality of its product and sizeable global market opportunity, I feel confident that Xero is well-positioned to continue this strong growth for the next few years.
