If you have space in your portfolio to add a few growth shares, then I think the two listed below could be great options.
I believe these growth shares can deliver above-average earnings growth over the next few years and potentially strong returns for investors.
Here's why I would invest $2,000 across their shares:
Bubs Australia Ltd (ASX: BUB)
Bubs is a goat's milk-focused infant formula and baby food company which I believe has enormous potential. This is due to the expansion of its footprint across supermarkets and pharmacies in Australia and its growing presence on Chinese ecommerce platforms. Another positive is its recent expansion into cow's milk infant formula, which could be a big boost to its earnings growth in FY 2021. But perhaps the biggest positive of all is that after years of cash burn, Bubs now appears to have reached a scale that makes its operations profitable. This should mean the days of dilution from capital raisings are now over.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a donor management platform provider for the faith sector. It has been growing at an explosive rate in recent years thanks to increasing demand for its platform in a church market that is rapidly embracing digital transformation. And although the Pushpay share price has been a very strong performer this year, I don't believe it is too late to invest. After all, the company still has a very long runway for growth. Management is aiming to capture a 50% share of the medium to large church market in the future. This represents a US$1 billion revenue opportunity, which is many times FY 2020's revenue of US$127.5 million. Given the quality of its offering, I believe there is a strong probability of the company achieving its target.
