Are you a growth investor looking for some new additions to your portfolio? Then you might want to check out the ones listed below.
Here’s why these ASX growth shares have been tipped as buys:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator has some bold expansion plans that could underpin strong growth over the next decade. At the end of FY 2020, the pizza chain operator had a network of 2,668 stores across Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, and Denmark.
Despite this huge store network, management still sees plenty of room for growth in the future. It is aiming to more than double its network to 5,500 stores by 2033. In addition to this, it has a medium term target of growing its same store sales by 3% to 6% per annum.
One broker that appears confident this will underpin strong growth in the future is Goldman Sachs. Its analysts have put a conviction buy rating and $88.00 price target on its shares. It believes Domino’s has the potential to maintain a double digit operating earnings compound annual growth rate (CAGR) over the medium term.
Another growth share to look at is ResMed. It is a sleep treatment-focused medical device company that has been growing at a very strong rate over the last few years.
This has been driven by leadership position in a sleep treatment market that is growing fast. The good news is that management remains very confident on its outlook and notes that there are an estimated ~1 billion people impacted by sleep apnoea worldwide. From these, it believes just ~20% have been diagnosed. This potentially gives it a very long runway for growth over the coming decades.
Analysts at Credit Suisse believe the company is well-placed for growth and have an outperform rating with a $31.00 price target on its shares. The broker believes ResMed is well-placed to benefit from a shift to home healthcare following the pandemic.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.