One thing that the Australian share market is not short of is quality growth shares. But with so much choice it can be hard to decide which ones to buy.
Three of my favourites right now are listed below. Here's why I would buy them in March:
A2 Milk Company Ltd (ASX: A2M)
In the first half of FY 2019 this infant formula and dairy company posted a 41% increase in revenue to NZ$613.1 million and a 55.1% jump in net profit after tax to NZ$152.7 million. The key driver of its growth was a 45.3% increase in infant formula sales to NZ$495.5 million. Although this earnings growth is expected to moderate in the second half due to the company's increased investment in brand building, I believe this is a smart move by management and expect it to set the company up for long term growth.
Altium Limited (ASX: ALU)
I think Altium's half year result earlier this month was the strongest I've seen during earnings season. Not only did the electronic design software company smash expectations, but it provided long-term guidance which I believe demonstrates why it would be a great buy and hold option even after its stellar share price gain. Management advised that it has an aspirational revenue target of US$500 million by 2025. This compares to its first half revenue of US$78 million, which was up 26% on the prior corresponding period. Given its massive market opportunity and the quality of its products, I believe the company is more than capable of achieving its target.
Webjet Limited (ASX: WEB)
Another growth share that I would buy in March is Webjet. The online travel agent's shares have been on fire in February thanks to the release of another impressive half year result. For the six months ended December 31, Webjet delivered a 29% increase in total transaction value to $1.9 billion, a 33% lift in revenue to $175.3 million, and a 42% jump in EBITDA to $58 million. More of the same is expected in the second half, which I think makes its shares great value at around 25x estimated forward earnings.
