2 highly rated ASX growth shares for May

Afterpay Ltd (ASX:APT) and this ASX growth share could be top options for investors in May. Here's what you need to know…

| More on:

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 looking to add a growth share or two to your portfolio next month? Then take a look at the two ASX shares listed below.

Here's why they could be growth shares to buy right now:

Afterpay Ltd (ASX: APT)

This buy now pay later (BNPL) provider could be a good option for growth investors.

It has been growing at a rapid rate over the last few years and this has continued in FY 2021. For example, during the third quarter, Afterpay reported a 104% increase in underlying sales to $5.2 billion.

This strong performance was driven by a 75% increase in active customers globally to 14.6 million and increasing customer frequency across all regions.

The good news is that the company still has a significant runway for growth over the next decade thanks to the lucrative US and UK markets and its expansion across Europe and Asia.

In addition to this, the company is expanding beyond BNPL into savings accounts and cash flow tools with its Afterpay Money app. That is scheduled to launch early in FY 2022 and could be another key driver of growth in the future.

One broker that is positive on the company is Morgan Stanley. Its analysts have recently put an overweight rating and $149.00 price target on its shares.

Pro Medicus Limited (ASX: PME)

Another growth share to consider is Pro Medicus. It is a healthcare technology company that provides healthcare organisations with radiology information systems, picture archiving and communication systems, and advanced visualisation solutions.

Like Afterpay, it has been a strong performer during the pandemic. In February the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Positively, since the end of the first half, the company has won a number of lucrative long term contracts with major healthcare institutions. It also still has a large pipeline of sales opportunities that could be converted in the near future, particularly given its industry-leading technology and the structural shift away from legacy systems. 

Goldman Sachs is a fan. The broker currently has a buy rating and $53.80 price target on its shares.

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 and recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Concept image of a businessman riding a bull on an upwards arrow.
Growth Shares

3 ASX growth shares to buy before the next bull market

These shares could fare well in the next bull market. Here's what analysts are tipping as 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 no-brainer ASX shares to buy with $200 right now

You don't need a brain to see that these shares could be top picks right now.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX growth stocks worth buying with $7,000 in your portfolio today

These stocks are all historic market beaters.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

3 ASX 200 shares with huge growth potential in the next decade

Analysts think these growth shares could be in the buy zone in July.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Growth Shares

Where I'd invest $5,000 into ASX 300 growth shares

These stocks have excellent growth potential.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Growth Shares

The ASX growth stock up 10% this year with more room to move

This broker believes there’s still more in the tank for this telecommunications company 

Read more »

A couple stares at the tv in shock, one holding the remote up ready to press.
Growth Shares

3 high-conviction ASX 200 stocks to buy and hold

Brokers think these shares are among the best to buy now.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Growth Shares

The smartest ASX growth stocks to buy with $3,000 right now

Analysts think these shares would be top picks for smart investors.

Read more »