Australia Markets closed

2 ASX growth shares I’m watching in February

Sebastian Bowen
ASX shares to buy in February

With the start of another month just around the corner (already?!), it’s a great time to consider which ASX shares have been on a winning streak lately and which of those might have a place in your portfolio. ASX growth shares have been some of the top performers over the last few years, and with interest rates still stuck at record lows, it’s a run that looks likely to continue.

So, here are 2 ASX growth shares I would love to add to my own portfolio.

Polynovo Ltd (ASX: PNV)

Polynovo is a fast growing $1.94 billion medical company that specialises in skin treatment. Its flagship product NovoSorb is a polymer that integrates with human skin to assist the healing process following severe burns or skin loss. Recent updates regarding NovoSorb’s release in the UK market are very promising and have been pushing the Polynovo share price to all-time highs.

Speaking of share prices, Polynovo has been a hard stock to miss. You could have picked up shares back in 2017 for around 50 cents or even 64 cents just one year ago. Considering the Polynovo share price closed at $2.93 yesterday, anyone who has recently purchased shares would be very satisfied with their performance.

Given this company’s substantial recent successes, it’s hard to see Polynovo’s fortunes going anywhere but up in the next few years. Thus, it’s a growth stock I would love to buy this February.

Afterpay Ltd (ASX: APT)

Afterpay is another ASX growth stock that is sitting at all-time highs – incidentally printing a new record of $38.05 just yesterday. At nearly $10 billion dollars in terms of market capitalisation, there is an argument to be made that Afterpay may be overvalued at these levels, particularly considering the lack of positive earnings for the company to date.

However, it’s also hard to ignore the stratospheric growth of this buy-now, pay-later pioneer, which kick-started an entire ‘new way to pay’. The company’s US expansion has gone better than I think even management dreamed possible and it has backed that up with a highly successful UK entry – albeit under the ‘Clearpay’ moniker.

Although I think Afterpay shares are trading for quite the premium at the moment, I still think this company has a lot of dry powder to further expand, and therefore might be a great stock to hold long-term.

Foolish takeaway

ASX growth shares are often defined by a lofty share price and Polynovo and Afterpay live up to this reputation exceedingly well. Despite this, I think both companies have a lot to offer investors down the road. Thus, if you’re looking for some growth shares to add to your ASX portfolio, these 2 shares (in my opinion) are some of the best options as we enter February.

The post 2 ASX growth shares I’m watching in February appeared first on Motley Fool Australia.

For some more top ideas, you won't want to miss these NEW. Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020