These ASX growth shares could be strong buys in October

Afterpay Ltd (ASX:APT) and this ASX share could be great growth shares to buy in October after their declines last month…
The post These ASX growth shares could be strong buys in October appeared first on Motley Fool Australia. –

woman whispering secret to a man who looks surprised

I think it is fair to say that September was a month to forget for Australian investors.

I’m optimistic that October will be significantly better and that a number of beaten down ASX growth shares will recover some of their sizeable declines.

Two that I would consider buying are as follows:

a2 Milk Company Ltd (ASX: A2M)

The first ASX growth share to consider buying is a2 Milk. It is a leading infant formula and fresh milk company which specialises in a2-only products. Over the last few years the company has been growing at a very strong rate thanks to the expansion of its fresh milk footprint and the insatiable demand for its infant formula in China.

Unfortunately, the company’s impressive run is likely to come to an end in FY 2021. This due to the pandemic’s impact on the daigou channel and the pantry stocking it caused in FY 2020. The latter pulled forward sales from the current financial year. In light of this, management is forecasting a decline in first half sales in FY 2021. And while it expects a stronger second half to lead to full year growth, the level of this growth is significantly slower than the market is used to. While this is disappointing, I’m confident that a2 Milk will bounce back strongly in FY 2022. Especially given its growing Chinese mother and baby stores footprint, strong brand, and relatively small market share.

Afterpay Ltd (ASX: APT)

Another ASX growth share I would buy is Afterpay. Especially with its shares down 15% from their 52-week high. I think this has brought the payments company’s shares down to a level that is an attractive entry point for long-term focused investors.

This is because I remain confident that Afterpay is perfectly positioned to continue its meteoric growth over the next few years. I expect this to be underpinned by its strong position in the massive US market and its ongoing international expansions. In respect to the latter,  Afterpay has recently launched in Canada and acquired its way into mainland Europe. The company also has Asia in its sights and could soon launch there.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 post These ASX growth shares could be strong buys in October appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!