Its no secret that ASX growth shares have been the place to be in 2019 (investing in, that is). Whilst the S&P/ASX200 (ASX: XJO) and the broader share market has been trending higher for most of the year, growth shares have been where the lion’s share of gains has been found.
No one is detracting from the ASX blue chips like Commonwealth Bank of Australia (ASX: CBA) and Woolworths Group Ltd (ASX: WOW), which remain loved for the dividends they produce. But for younger investors perhaps looking to build capital, growth shares remain (in my view) the best avenue to do so.
With that said, here are 2 ASX growth shares that I think are good bets for the future.
Afterpay Touch Group Ltd (ASX: APT)
No company is perhaps more loved by millennials than Afterpay – and that’s almost enough of a reason to invest in this BN-PL pioneer in itself. But Afterpay also has impressive numbers to back this up.
In its annual general meeting just the other day, the company reported that its sales for the 4 months to 31 October were up 110% compared to last year, whilst active customers were up 137% for the same period. Such strong growth is very encouraging, and goes someway to justify Afterpay’s (currently) expensive price tag.
Xero Limited (ASX: XRO)
Xero is a fellow WAAAXer but has a far less exciting product (in my opinion) – accounting software. Still, there’s nothing boring about Xero’s numbers.
The company has recently told the market it has crossed the 2 million subscriber mark – as well as adding 239,000 subscribers in the 6 months ending 30 September. Compare this to the same period last year when Xero added 193,000 and you can see how Xero’s growth is accelerating.
As with Afterpay, Xero is not cheap on current prices, but as you can see it arguably has enough meat in the pie to justify its present cost.
I think both of these ASX growth shares have the potential to become massive Aussie companies over the coming decade, along with the numbers to back it up. Working out what price to pay for them is probably the hardest part. But that’s up to you, fellow investors!
The post Forget CBA, here’s 2 ASX growth shares I’d rather own appeared first on Motley Fool Australia.
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of Xero. 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. 2019