The Best ASX Growth Stocks
to buy Now In
March 2024

Check out our Industry Experts’ report and
analysis on the Best Growth Stocks right now in ASX

The Best ASX Growth Stocks
to buy Now In
March 2024

Check out our Industry Experts’ report and
analysis on the Best Growth Stocks right now in ASX

What Are Growth Stocks?

Growth stocks are like the shooting stars of the stock market, representing companies racing ahead with exceptional growth speeds. These companies stand out in booming industries on the Australian stock market, fueled by groundbreaking technologies and game-changing business strategies.

What makes them unique? They often have high price-to-earnings ratios because people expect them to earn a lot more in the future. Instead of paying out dividends, these companies reinvest their profits to grow even bigger and faster. This approach sets the stage for substantial increases in their stock value over time.

Why invest in Growth Stocks?

Investing in growth stocks is like hopping on a fast-moving train to potentially big returns, much more than regular interest rates. These stocks are the speedsters of the market, growing their sales growth and market share at lightning speed compared to their more laid-back, established peers..

Imagine being part of groundbreaking innovations – that's the thrill growth stocks bring to your investment portfolio. They're perfect for those looking to grow their money over the long haul, rather than seeking quick, regular income. Plus, adding these stocks to your investment mix is like spicing up a meal; it adds variety and can enhance the overall flavor.

But, remember, with high speed comes higher risk. These stocks can take you on a wild ride with their ups and downs, so they're best suited for those who can buckle in for the long term and handle a bit of turbulence along the way.

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What to look for when investing in Growth Stocks

When exploring growth stocks, it’s essential to focus on firms with robust revenue growth, a solid profitability record, and strong cash flow. Seek out companies that have established themselves in large, expanding markets and possess a distinct competitive advantage.

The experience and effectiveness of the management team in executing the company’s strategy are also key factors to consider. Pay attention to valuation metrics such as the Price-to-Earnings (P/E) and Price-to-Sales (P/S) ratios to ensure the stock is reasonably priced. Prioritize businesses at the forefront of technological advancements or those disrupting traditional industries.

5 Best ASX Growth Stocks to Buy Now in 2024


Block Inc (ASX:SQ2)

Block Inc.'s recent transformation into a more financially disciplined company makes it an exciting investment choice. They've sharpened their focus on managing costs effectively and boosting productivity within the company.


Sonic Healthcare Ltd (ASX:SHL)

With its global reach in healthcare and a strategic push to cut costs and drive growth, Sonic is on track for a strong profit comeback. Analysts at Morgans are backing it too, predicting a substantial 14% rise in its stock price, sweetened with a solid 3.4% dividend yield.



Altium Ltd (ASX:ALU)

Investing in Altium could be a smart move for your portfolio. This tech titan is making waves with its top-notch PCB design software and innovative cloud service, Altium 365. It's not just about what they offer now, but where they're heading.


Lovisa Holdings Ltd (ASX:LOV)

Lovisa is making waves in the fashion jewellery world, expanding rapidly with new stores and venturing into booming markets like China. The company’s revenue jumped an impressive 30% with a hefty 80% gross profit margin in FY23, showcasing its solid financial footing.


Macquarie Telecom Group Ltd (ASX:MAQ)

Macquarie Technology is a standout ASX tech stock, especially appealing due to its rapidly growing data centre segment. The company is smartly capitalizing on the surging demand for cloud services, marked by a major expansion of its data centre..


5 Best ASX Growth Stocks to Buy Now in 2024

Block Inc (ASX:SQ2)

Block Inc.'s recent transformation into a more financially disciplined company makes it an exciting investment choice. They've sharpened their focus on managing costs effectively and boosting productivity within the company.

This smart shift hints at better financial control and promises stronger performance across all business areas. What really catches the eye is their bold move to limit staff numbers and kick off an impressive $1 billion stock buyback, showing they're confident about their future.

Plus, the forecast for their earnings before interest, taxes, depreciation, and amortization (EBITDA) in CY24 has jumped by a striking 22%, suggesting that Block Inc. is on a path to significant growth. For investors, this mix of prudent financial management and promising growth prospects makes Block Inc. a particularly attractive option.

Sonic Healthcare Ltd (ASX:SHL)

With its global reach in healthcare and a strategic push to cut costs and drive growth, Sonic is on track for a strong profit comeback. Analysts at Morgans are backing it too, predicting a substantial 14% rise in its stock price, sweetened with a solid 3.4% dividend yield.

Healthcare is known for its stability, even when the economy dips, and Sonic's no exception, offering resilient earnings. Plus, its ever-growing dividend, fueled by an aging population and its expansion across the globe, spells out a promising future. For those eyeing a mix of steady growth and reliable dividends, Sonic Healthcare is a smart pick for a balanced, long-term portfolio.

Altium Ltd (ASX:ALU)

Investing in Altium could be a smart move for your portfolio. This tech titan is making waves with its top-notch PCB design software and innovative cloud service, Altium 365. It's not just about what they offer now, but where they're heading.

Altium has been smashing it with a 19.2% jump in revenue and solid profit increases. They've got big plans too, aiming for a whopping $500 million in revenue by FY26. Their growth isn't just a fluke – they've got a growing list of subscribers and their profits are looking up.

Even though the market expects them to do well, Altium's track record and forward-thinking approach make it an attractive bet for those eyeing long-term growth in the tech world.

Lovisa Holdings Ltd (ASX:LOV)

Lovisa is making waves in the fashion jewellery world, expanding rapidly with new stores and venturing into booming markets like China. The company’s revenue jumped an impressive 30% with a hefty 80% gross profit margin in FY23, showcasing its solid financial footing.

Top analysts from Morgans and Bell Potter are rooting for Lovisa, predicting over 20% growth potential. But it's not just about growth; Lovisa also promises attractive dividends that are expected to rise.

Offering trendy, affordable jewellery, it stands out in the retail market, especially when times are tough economically. This exciting mix of global expansion, financial robustness, and rewarding returns positions Lovisa as an alluring option for investors seeking both growth and income.

Macquarie Telecom Group Ltd (ASX:MAQ)

Macquarie Technology is a standout ASX tech stock, especially appealing due to its rapidly growing data centre segment.

The company is smartly capitalizing on the surging demand for cloud services, marked by a major expansion of its data centre, approved by the NSW Department of Planning and Environment. This move will triple its current data capacity, aligning perfectly with the booming cloud service market.

Analysts at Goldman Sachs are bullish, setting an ambitious $77.70 price target. They see a bright future for Macquarie Technology, driven by expanding cloud deployments and managed services. With its well-executed strategy and a vertically integrated cloud franchise in the making, Macquarie Technology presents a lucrative opportunity for investors keen on diving into the dynamic cloud and data centre sector.

Pros and Cons of Investing in Growth Stock ASX

Investing in high-growth stocks tends to be a thrilling ride towards substantial wealth creation. They're tailor-made for those eyeing long-term gains, rather than immediate cash returns. Imagine being part of groundbreaking, innovative companies - it's an exhilarating prospect!

But, it's not all smooth sailing. These stocks can be overpriced, and their high price-to-earnings ratios might not quite match up with their future growth, potentially leading to financial setbacks. They're also like rollercoasters, with their higher volatility and unpredictable futures, which can sway your returns, but not all growth stocks.

Growth investors don't expect regular dividend payouts as growth companies prefer to reinvest their profits to fuel further growth.

Growth Stocks vs. Value Stocks

Many growth stocks tend to come with a higher price tag (higher P/E ratios) but promise the thrill of capital appreciation. If you're comfortable riding the waves of higher volatility, a growth company might be your pick.

On the flip side, value stocks are the hidden treasures of the market, often undervalued but brimming with potential.

Whether you choose the path of growth stocks or value stocks depends on your personal investment style - are you a thrill-seeker or a safety-first investor? Your choice reflects your risk tolerance, investment goals, and how long you're willing to wait to see your investments grow: tolerance, investment goals, and time horizon.

How to Choose the Right ASX Growth Stocks?

Choosing the right ASX growth stocks is like being a detective in the financial world, where keen analysis and thorough research are your tools.

Find growth stocks by zeroing in on companies that have a stellar track record of increasing their revenue and profits. Look for players with a competitive edge in the market, backed by a solid management team. Dive into their financial health using ratios like P/E and P/S to figure out if you're getting a good deal.

Keep an eye out for catalysts that might rocket their growth sky-high. And remember, spreading your bets across different sectors is like having a safety net, reducing your risk while aiming for those big wins. Tailor your stock picks to align with your personal investment goals and how much risk you're up for. It's a blend of strategy, insight, and a bit of daring!

Are ASX Growth Stocks right for you?

These stocks are perfect for those who dream of high returns and aren't shy about embracing the rollercoaster ride of high-growth sectors. They're a match for investors with a vision for the long haul, ready to ride out the ups and downs of the market.

But if you prefer a smooth journey with regular income stops, like dividends, these might not be your best companions. Before you pack your investment bag, do your homework thoroughly or maybe chat with a advisor to ensure these stocks are the right fit for your financial journey. It's all about mapping your route to align with your risk comfort zone

Frequently Asked Questions (FAQs)

Growth stocks come with their own set of risks. These stocks are akin to high-speed trains in the investment world – they promise rapid growth and exciting potential, but the ride can be bumpy. Their prices tend to be more volatile, often swinging widely based on market expectations and their future earnings potential.

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