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3 top ASX growth shares to buy

James Mickleboro
growth share price

The Australian share market is home to a good number of growth shares which have the potential to grow their earnings at an above-average rate over the next few years.

Three growth shares that I think are among the best on the market are listed below. Here’s why they could be worth buying:

Appen Ltd  (ASX: APX)

The first growth share to consider buying is Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Over the last few years Appen has been experiencing very strong demand for its Content Relevance services from many of the largest technology companies. This has led to impressive earnings growth, which has been boosted further by acquisitions. In FY 2019 the company expects to deliver underlying EBITDA in the range of $96 million to $99 million. This represents year on year growth of 34.6% to 38.8%. I expect more of the same in FY 2020 and beyond thanks to the expected strong growth of the AI and machine learning market.

NEXTDC Ltd  (ASX: NXT)

Another growth share to consider buying is NEXTDC. I remain confident that this data centre operator is very well-positioned to capitalise on the cloud computing boom which continues to accelerate. This is because as cloud computing usage increases, demand for its innovative data centre outsourcing solutions and connectivity services is likely to increase with it. I expect this to drive strong earnings growth over the next decade as the benefits of scale take effect.

Nanosonics Ltd  (ASX: NAN)

A third growth share to consider buying is Nanosonics. It is a leading infection control specialist which is currently generating all its revenue from its trophon EPR disinfection system for ultrasound probes. This best in class technology has been growing its market share at a rapid rate over the last few years. This has resulted in stellar unit sales and growing recurring revenues from the consumables it requires. Pleasingly, it won’t be long until Nanosonics has more products in its portfolio. The launch of the first of a number of products targeting unmet needs is due to be released at the start of FY 2021.

The post 3 top ASX growth shares to buy appeared first on Motley Fool Australia.

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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited. 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