A number of growth shares have come under pressure during recent market volatility and are now trading at significant discounts to their recent highs.
Two examples of this are listed below. Here's why this could be an opportune time to consider an investment:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX growth share to consider is this pizza chain operator. The Domino's share price is trading 14% lower than its 52-week high. This is despite Domino's smashing expectations with its half year results last month.
Those results revealed a 16.5% increase in total global food sales to $1.84 billion and a 32.8% increase in underlying net profit after tax to $96.2 million. This stellar growth was driven by a combination of strong same store sales growth, the opening of 131 new stores, and operating leverage.
Positively, management expects an even stronger performance in the second half. It has also reiterated its long term plan of doubling its store network again over the next decade.
One broker that sees this recent weakness as a buying opportunity is Goldman Sachs. It recently reaffirmed its conviction buy rating and $112.60 price target.
Nearmap Ltd (ASX: NEA)
Another ASX growth share to consider is this aerial imagery technology and location data company. The Nearmap share price is down ~25% from its February high.
Goldman Sachs also appears to see this pullback as a buying opportunity for investors. In response to its half year results release last month, the broker put a buy rating and $2.95 price target on its shares.
While the broker acknowledges that it has been facing some near term headwinds because of COVID-19, it expects momentum to improve through 2021. It expects this to lead to new business wins accelerating from here.
In light of this, Goldman believes Nearmap can grow its revenue by a CAGR of 15% per annum between FY 2020 and FY 2023.
Furthermore, the broker has been crunching the numbers and believes Nearmap has the balance sheet strength to see it through to profitability in FY 2023.
