If you're looking for good ASX growth stocks, there are certain metrics that (in my opinion) need to be checked. A consistent pattern of rising revenue is a fantastic start, followed by a clear growth roadmap and a scalable business model. Low debt is a bonus, but not an essential ingredient.
At this point of the business cycles, growth stocks can be a double-edged sword. They seem to be the stocks that are getting investors the most excited right now (and excitement translates into share price rises), but growth stocks are also the most vulnerable to a turn in market sentiment. But this is the wave that growth investors must ride, so here are 2 ASX growth stocks I've got my eye on this week – both WAAAXers and both stocks that every growth investor will be familiar with.
Altium Ltd (ASX: ALU)
I've got a firm eye on Altium this week, particularly as it reports its full-year earnings this afternoon. Altium is a company that specialises in software to assist the design of printed circuit boards – an essential part of most electronic devices.
Analysts are expecting Altium to deliver yet-another set of knockout numbers today, which (if expectations are met or beaten) will likely add further fuel to the Altium share price fire – the stock has already risen 54% YTD. In its last set of results, Altium reported revenue growth of 24% and profit growth of 58%, so this is certainly a high-octane stock to watch.
WiseTech Global Ltd (ASX: WTC)
WiseTech is another WAAAX stock on my radar this week after the company announced another acquisition earlier today. WiseTech is a heavyweight player in the global logistics industry and so vertical integration through acquisitions can be of huge benefit. In this case, it is US-based Depot Systems (a container storage and terminal logistics company) that's joining the WiseTech family.
WiseTech has managed to find a lucrative niche in an industry that is only becoming more valuable in an increasingly connected world, helping its shares appreciate 58% in 2019 so far. WiseTech reports its earnings on Wednesday, meaning this company has got my full and undivided attention this week.
Foolish takeaway
With these two ASX growth stocks, I think we have two fantastic companies that are well worth keeping an eye on, this week in particular. Although they have prices that no one would call cheap, they also have huge growth runways that may still deliver big gains down the road.
