Are you looking for growth shares with the potential to beat the market? Then you might want to take a look at the ones listed below.
They have been tipped as buys and could be destined for big things in the future. Here's what you need to know:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share to look at is Domino's. This pizza chain operator had a network of 2,668 stores across Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark at the end of FY 2020.
While this might sound like it is running out of space to grow its network, management certainly doesn't believe this is the case at all. In fact, the company is planning to more than double its network to 5,500 stores by 2033. And that's just from the aforementioned markets that it currently operates in. There is speculation Domino's could expand into new markets over the next decade to boost its growth inorganically.
In addition to this store growth, the company has set itself bold same store sales growth targets. If it delivers on both and is able to maintain or improve its margins, this should underpin solid earnings growth over the next decade.
One broker that is a big fan of Domino's is Bell Potter. It has a buy rating and $99.30 price target on its shares.
Nanosonics Ltd (ASX: NAN)
Another ASX growth share to look at is Nanosonics. One thing the COVID-19 crisis is highlighting is just how important infection control is. This is a big positive for Nanosonics, given that it is an infection prevention company.
At present, the company is a one-trick pony with its hugely popular and industry-leading trophon EPR disinfection system for ultrasound probes. However, it is aiming to launch several new products in the near future which have similar addressable markets. Given the favourable tailwinds supporting infection prevention, these products could take its growth up a level when they are finally released.
UBS is a fan of Nanosonics and believes it is a high-quality and structural growth story. It expects the company to benefit from post-COVID infection prevention tailwinds. UBS has a buy rating and $7.20 price target on the company's shares.
