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Forget Westpac! Here are 2 ASX growth shares I’d buy instead

Sebastian Bowen
Man holding tablet with sharemarket chart showing growth shares

Our ASX banks have long been thought of as the crown jewels of the ASX. But the last couple of years have definitely put a dent in said crown.

Even just today, Westpac Banking Corp (ASX: WBC) has been accused of some additional dodgy conduct – that’s on top of what was revealed at last year’s Royal Commission.

Rather than dealing with a growing pile of fines and regulations as a potential Westpac shareholder, I’m far more interested in these 2 ASX growth shares.

Zip Co Ltd (ASX: Z1P)

Zip shares have come off the boil recently, falling from highs of nearly $6 last month to today’s price of $3.73 (at the time of writing). Still, this might be a good entry price for this BN-PL underdog. Zip has done a fantastic job of quietly building itself into a formidable rival to Afterpay Touch Group Ltd (ASX: APT).

It’s also recently partnered up with Amazon Australia’s online marketplace – and if that’s not a lucrative deal I don’t know what is. Thus, I think at current prices, Zip is looking attractive for a long-term growth play.

Xero Limited (ASX: XRO)

Xero is an online provider of its flagship accounting/business software, which the company markets as simple and ‘beautiful’. Investors absolutely love this company, as its recurring/subscription revenue model allows for easy scaling and a clear path to profitability.

Combine this with rapid subscriber growth and incredibly high customer stickiness and we have a phenomenal growth stock, which had seen YTD share price gains of over 85%. XRO shares do look expensive today at $77.95, but sometimes the market places a premium on quality, which I think we can see in today’s prices.

Foolish takeaway

These 2 ASX growth shares are some of the best quality ASX growth stocks on the market today. I like the Zip share price a little better today, but from a business model perspective, Xero wins hands-down.

The post Forget Westpac! Here are 2 ASX growth shares I’d buy instead 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 and ZIPCOLTD 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