Buy these ASX growth shares after the market selloff

Here's why I think Afterpay Ltd (ASX:APT) and this ASX growth share would be great options following the recent market selloff…

| More on:
A chalk board with drawings of a lightbulb containing dollar signs, with the word GROWTH written below, indicating ASX growth shares

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you wanting to add a few growth shares to your portfolio? Well now could be a great time to do it.

A number of popular ASX growth shares have pulled back meaningfully from recent highs. I think this could be a buying opportunity for investors next week.

Two ASX growth shares I would buy are listed below:

Afterpay Ltd (ASX: APT)

The first growth share to consider buying is Afterpay. This payments company's shares are currently trading 23% lower than their 52-week high. This has been driven by weakness in the tech sector and news that PayPal is entering the buy now pay later market with its Pay in 4 product. In respect to the latter, I'm not overly concerned by this news due to its leadership position and its strong brand. I suspect the smaller players are the ones that will suffer most from PayPal's entry.

In light of this, I think the weakness in the Afterpay share price is a gift for buy and hold investors. This is because I'm confident Afterpay has the potential to grow materially in the future thanks to the increasing popularity of the payment method, its $5 trillion opportunity in the United States, and its global expansion plans.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX growth share to buy and hold is Pushpay. The shares of the donor management and engagement platform provider for the faith sector have fallen over 24% from their 52-week high. I think this has created a buying opportunity for long term-focused investors.

Especially given its very positive growth outlook. After smashing its guidance in FY 2020, the company is on course for more strong growth in FY 2021. Management provided guidance for EBITDAF of between US$48 million and US$52 million. This will be a 91.2% to 107% increase, respectively, year on year.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

a man in a business suit and carrying a laptop stands smiling with hand in pocket outside a large office building in a city environment.
Growth Shares

Buy these 2 impressive ASX 200 shares in July: experts

Experts are bullish about these two businesses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 ASX 200 shares set to dominate the next decade

Let's see why these shares could be great long term picks for Aussie investors.

Read more »

A group of businesspeople clapping.
Growth Shares

3 ASX growth shares with 10-year compounding potential

Let's see which shares are being tipped as buys for growth investors.

Read more »

Woman happy and relaxed on a sofa at a shop.
Growth Shares

Are these 2 top ASX growth shares buys?

Are these high-flyers still buys?

Read more »

Two university students in the library, one in a wheelchair, log in for the first time with the help of a lecturer.
Growth Shares

3 stellar ASX growth shares to buy with $7,000

Let's see why analysts are feeling bullish about these top stocks.

Read more »

A smiling man at a shop counter takes payment from a customer, with racks of plants in the background.
Growth Shares

2 ASX shares to buy and hold for the next decade

I’m optimistic about what these investments can deliver in a year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Growth Shares

High-conviction ASX 200 shares with 10-year upside

Let's see why analysts think these shares could be great long term picks.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

The ultimate Australian stocks to buy and hold for 10+ years

These shares could be ultimate buys according to analysts.

Read more »