What are the five fastest growth shares on the ASX? Pro Medicus Ltd (ASX: PME), HUB24 Limited (ASX: HUB), Polynovo Ltd (ASX: PNV), Codan Limited (ASX: CDA) and Macquarie Technology Group (ASX: MAQ) top the list, but let me explain…
Earlier today, in the first Rask Invest LIVE show (see below), I showed how any investor can use a tool like Tikr.com to quickly and easily identify top performing shares on the ASX, based solely on fundamentals (e.g. financial data, stock price performance, etc.). It starts around 38 minutes.
I need to be really careful when I say this but using technology tools and historical financials alone is not a worthwhile investment strategy. It won’t work.
When you’re investing in ASX shares (or US stocks), you don’t get market-thumping returns using the same tools, data and inputs as everyone else.
After all, if you do the average thing in investing… you’ll get average results… less taxes and costs.
Why? Companies can be tracked using historical quantitative results (e.g. sales and profits) because they use qualitative inputs (employees, customers, marketing and value proposition) and mix them together.
Put another way, anyone can run a one-minute analysis on stock data using Tikr to see that Pro Medicus has been the best ASX share over the past 10 years. But identifying Pro Medicus 10 years ago – before it had a huge run up in sales of its Visage product to US radiologists – was the secret. That type of research is hard and substantially qualitative.
Top 5 ASX growth shares
Nonetheless, if you’re looking for growth shares that have a history of strong performance, which you’ll then pursue for further research, here’s a list of top ASX growth shares over 10 years (excluding banks, resources, and tiny speculative shares):
- Pro Medicus – 15,258% share price return
- HUB24 – 5,062% share price return
- Polynovo – 2,133% share price return
- Codan – 1,649% share price return
- Macqaurie Technology Group – 1,520% share price return
Obviously, Pro Medicus is a clear standout winner.
I’ve been grateful to own Pro Medicus shares for many years – along with many Rask members and readers who have heard us talk about to co-founder and CEO Sam Hupert or read our original Buy research back in 2017. Pro Medicus is a medical software business, providing industry-leading software for hospitals and radiologists.
HUB24 is also very interesting.
Alongside Netwealth Ltd (ASX: NWL) and Macquarie Group (ASX: MQG), HUB is probably Australia’s leading financial and investment admin software, used by financial planners, accountants and fund managers. It has undertaken acquisitions but the real growth has been organic, as more advisers pushed their clients onto HUB’s platform so that their life (i.e. the adviser’s) is made easier.
Finally, earlier this month I dived into Polynovo for our community members and podcast listeners. Even though it’s outside my circle of competence, it’s been an All Star company. But after many years of hype, Polynovo has seen a pullback recently.
Is this a turning point for Polynovo? You decide…
