The best way to beat the market over the longer term could be to invest in growth shares that can deliver good earnings growth year after year.
Shares that are easily scalable seem to be delivering the best returns, that’s why I think the below three ASX shares could be ones you don’t want to miss.
Webjet Limited (ASX: WEB)
Webjet is a leading online travel site for consumers where you can book flights, hotels, car hire, cruises and so on.
Not only does the company have a good rate of organic growth in its original business, but it has also become one of the largest business to business (B2B) operators in the world due to its acquisition of Destinations of the World.
A global downturn would be quite bad for Webjet’s earnings, but the travel company is expecting to materially increase its profit margins in the B2B business.
According to CommSec estimates, it is valued at 16 times FY20 earnings.
Aristocrat Leisure Limited (ASX: ALL)
The old Aristocrat Leisure business is based around casino games, it’s one of the largest players in the world being licensed in approximately 300 gaming jurisdictions in over 90 countries.
Aristocrat also has online digital games – both casino versions and free-to-play social games games.
Aristocrat Leisure is a global business and digital gaming has a supposedly large and long growth runway. However, licensing can be a risk if a license is not given.
According to CommSec estimates, Aristocrat Leisure is valued at 16 times FY20 earnings.
Domain Holdings Australia Ltd (ASX: DHG)
Domain is the second biggest real estate portal business in Australia. The recent merger between Fairfax Media and Nine Entertainment Co Holdings Ltd (ASX: NEC) could provide plenty of growth support for the Domain business over the next few years.
If Domain can bridge the gap to REA Group Limited (ASX: REA) in terms of advertising revenue, then it could earn quite a lot more in earnings compared to FY18.
According to CommSec estimates, Domain is valued at 30 times FY20 earnings.
2 More ASX Growth Shares You Don’t Want To Miss
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