Picking the best stocks to buy now is hard, but if you dig hard enough, the ASX has a number of hidden gems that can provide strong growth for your portfolio.
Growth stocks are generally driven almost entirely by qualitative factors such as first mover advantage, quality and quantity of assets, permits and technology. Quantitative factors such as profit, revenue and so forth taking a back seat. Even though it is imperative that their financials are sound, when it comes to growth stocks, we are buying the story and perceived future value.
However, the very nature of valuing companies through qualitative factors means that there is a lot of room for error, opinion and subjectivity. This means that high growth stocks tend to be small-cap, high risk and highly speculative.
Research Is Key To Finding The Best Stocks To Buy Now
The hardest part when it comes to finding growth stocks is the ability to process the information and factors at hand to make a good judgement call. Our Research team specialises in this and has combed the ASX for some of the best growth stocks on the Australian market.
I’ve outlined 5 stocks that we have found to have a good business plan with lots of potential upside and represents some of the best that the ASX has to offer.
Volpara Health Technologies (ASX VHT) – Volpara Health Technologies Ltd (ASX VHT) is a New Zealand-based healthcare research, and development company with global scalability. The company provides medical software, specialising in managing the breast screening detection and the flow of information between doctor clinic taking the screening mammogram x-ray.
Mesoblast (ASX MSB) – Mesoblast Limited (ASX MSB; Nasdaq MESO) is a Melbourne-based leading global stem cell company focusing on R&D in regenerative cellular medicines. Revenue has increased to US$14.9 million from US$0.6 million in the previous corresponding period, thanks to earnings from two licenses marketing Mesoblast products in Japan and Europe.
Pioneer Credit (ASX PNC) – Pioneer Credit Limited (ASX PNC) acquires and services unsecured retail debt portfolios that are more than 180 days overdue in terms of repayments and defaulted by those who have no default history before. PNC shares experienced four consecutive year’s growth in EPS and revenue since the company went public in 2014. There are no signs that this is slowing down, with FY18 half-yearly results showing an impressive +93% growth in NPAT and 57% growth in EPS.
Zip (Z1P) – Zip (ASX Z1P) is a digital point-of-sale & fast-growing payment solution, that operates in the buy-now-pay-later sector similar to Afterpay. Zip has two main products, ZipPay which is designed for individual use, and ZipMoney which is designed like a traditional credit card.
Syrah Resources (ASX SYR) – Syrah Resources is dedicated to becoming the only major new supplier of graphite to battery market as China switches from an exporter to importer. Even though Syrah’s financial performance has been weak, their high-quality asset with the potential to supply the Chinese market gives them a lot of potential upside.
Make Your Money Work Harder For You
Picking the best stocks to buy now, timing the entry and having an edge in the market is not easy. Our goal at MF & Co. is to make this process more accessible and easier for our clients. Download our special report below for another 5 best shares to buy now which comes with a special strategy that we use for our clients to make your money work harder for you.
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Henry is a co-founder of MF & Co. Asset Management with over 12 years experience as a trader, investor and asset manager. Henry’s focus is on High Net Worth Wealth Management and using algorithmic quantitative trading systems to invest for his clients. Henry also trains new Interns and Advisers on trading and risk management.