Earlier this month, the Reserve Bank of Australia (RBA) cut the official cash rate by 25 basis points to a record low of 1.25 per cent. Several banks immediately matched or exceeded the RBA's move by cutting the return on term deposits and saving accounts.
It has been found that Australians could lose as much as $1.3 billion in interest from their term deposits and savings accounts.
In light of this, I believe investors should consider switching to one of these high-quality growth shares.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway is a high-growth, defensive play within the waste management sector. The company has a dominant foothold in the waste management space and continues to benefit from its acquisition of Toxfree.
The company trades at a price-to-earnings (P/E) ratio of 33x FY18 figures, which is relatively cheap given its compound annual growth rate (CAGR) of 23.7% for net profit and 23.7% for earnings per share across the last four years. The defensive nature of waste management and Cleanaway's positive earnings momentum makes it a strong stock for all seasons.
Appen Ltd (ASX: APX)
Appen is arguably a 'market darling' in the machine learning and artificial intelligence space. The company highlighted another year of phenomenal growth with a 119% increase in revenue to $364.3 million and net profit after tax up 148% to $49 million. Appen will no doubt continue to leverage the tech-hungry market with its arsenal of products surrounding search categorisation, speech recognition and data annotation.
Tassal Group Limited (ASX: TGR)
The Tassal Group should be a household name as it is responsible for delivering fresh Atlantic salmon to your supermarkets. The company is in a strong position to leverage the growing consumer demand for nutritional and healthy food.
Tassal is traditionally known as a salmon farmer but diversified their operations through the acquisition of De Costi Seafoods in 2015 and Fortune Group in 2018 – one of the largest footprint prawn farming bases in Australia. I am confident that Tassal will continue to thrive under strong salmon market conditions where domestic and international demand outpaces supply growth. Adding seafood and prawn production further adds to their versatility and earnings diversification.
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure designs, develops and distributes gaming content, platforms and systems across gaming machines, casino management systems and digital socials games. The company surprised the market when it released its HY19 report, citing revenues up 35% to $2,105.3 million and profit up 34.9% to $346 million.
Aristocrat anticipates continued growth in the 2019 fiscal year reflecting market-leading share positions in casino gaming machines and casino management services, further growth in digital game releases, and a reduction in the group's effective tax rate.
Emeco Holdings Limited (ASX: EHL)
Emeco Holdings supplies safe, reliable and equipment rental solutions to the materials sector. The company has stated that market conditions continue to be positive and outlook for FY20 remains strong, with total material movement continuing to increase and equipment supply remaining tight. Emeco trades at a P/E ratio of 23x, which I believe is a mismatch given its FY19 operating EBITDA is projected to be up 40%, year-over-year.
