ASX growth stocks: A once-in-a-decade opportunity to get rich?

These shares are starting to rise now, so grab them while they're cheap to give your portfolio a free boost.

| More on:
A young man in a city street with a hopeful look on his face.

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

The stock market seems to have an air of optimism now that it has not had for a couple of years.

With the appetising prospect of a stabilisation — or even a cut — in interest rates, ASX growth stocks seem to be busting out.

So, before it's too late, you might consider picking up some of those shares while they're still cheap.

Because one or two outstanding long-term winners can really supercharge your wealth.

Take Johns Lyng Group Ltd (ASX: JLG) for example.

Those shares were trading in the 80-something cents five years ago, and it is now more than 588% higher, almost touching $6.

That means a $10,000 worth of Johns Lyng shares purchased a half-decade ago would now be $68,800.

That's despite such market disasters like the COVID-19 crash and the 2022 post-pandemic growth selloff over that time.

Johns Lyng could have been in a portfolio accompanied by five other absolute losers and the investor would still be in the green.

ASX growth stocks trading at heavy discounts

Buying growth shares cheaply is an easy way to boost your returns.

Every cent of discount you can manage when buying the stock is a cent that will contribute towards your eventual gain.

Johns Lyng shares themselves are down 11.9% since September, presenting a tempting entry point.

Mining technology provider RPMGlobal Holdings Ltd (ASX: RUL) is currently trading 6.6% lower than its July peak.

But with analysts unanimously rating the stock as a buy, it has rallied more than 8% over the past week. So it won't stay cheap for long.

RPMGlobal shares have gained 185% over the past five years, showing their long-term chops.

After a 67% boost in the past year, perhaps James Hardie Industries plc (ASX: JHX) is not immediately obvious as a bargain buy.

But it's still more than 12% below its 2021 high, and economic conditions are about to turn favourable for those willing to back the construction materials maker for the long run.

"Higher interest rates are typically negative for US housing. But the difference with this cycle is that a lot of American mortgage owners are locked into 30-year mortgages at very low interest rates," DNR Capital chief investment officer Jamie Nicol said last month.

"They are unlikely to move and will need to repair and remodel their homes, which will be a boon to James Hardie over the next year and a half."

James Hardie shares have returned more than 230% over the last five years.

According to CMC Invest, 10 out of 14 analysts currently believe the ASX growth stock is a buy.

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and RPMGlobal. The Motley Fool Australia has recommended Johns Lyng Group and RPMGlobal. 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

happy investor, share price rise, increase, up
Growth Shares

The best ASX growth shares to buy now

These growth shares have been recommended as buys.

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Growth Shares

Where to invest $2,500 in ASX shares in August

Let's see which shares are being tipped as buys for next month.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Growth Shares

What to buy now with the ASX at a record high

Analysts think these shares could still rise strongly from current levels.

Read more »

A young man looks at a stylised investment graph superimposed on an exterior office building backdrop.
Growth Shares

Where to invest $10,000 in ASX 200 stocks today

Analysts think these high-quality shares are in the buy zone for investors right now.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Growth Shares

Two ASX industrials shares with buy recommendations

One broker believes these growth shares are set to rise.

Read more »

Man smiling at a laptop because of a rising share price.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These stocks could deliver big returns.

Read more »

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 »