Under the Radar Report looks at three growth stocks that have performed well for subscribers. What we’re looking for is organic growth, which is the holy grail for all growth stocks both big and small.
What are the best growth stocks ASX for 2020?
Small Caps are the best growth stocks ASX for 2020 as it's much easier for a small company to double or tripple in size than for a big company to grow by 5% or 10%. Over 50% of the Small Caps that we recommends pay dividends. We give you quality research on the growth stocks that you won't find anywhere else. The best growth stocks ASX for 2020 are Volpara Health Technology (VHT), Nanosonics (NAN) and Medical Developments (MVP).
olpara Health Technology (VHT)
Volpara Health Technology (VHT) produces a proprietary technology utilising AI to improve breast cancer screening and has succeeded in accessing the US market. This stocks sales multiple is very high, but so is its growth outlook. After a share price run subsequent to our spec buy recommendation its market cap is getting big, but we continue to think it is good value relative to its potential and is postioned as a growth stock ASX . To uncover more of the best growth stocks ASX for 2020, join for free now.
Another one of the best growth stocks ASX for 2020 is ultrasound sterilising specialist Nanosonics (NAN). The share price of this company reflects the law of large numbers. This growth stock has a market valuation just under $2bn. Unless its total addressable market is much bigger than these other companies, the possibility of it continuing sales growth and maintaining its sales multiple gets exponentially more difficult. We recognise how powerful this stock's niche is and we’ve taken risk off the table by realising some gains. The growth paradigm isn’t broken, so we’re letting our profits run. To uncover more of the best growth stocks ASX for 2020, join for free now.
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Medical Developments (MVP)
The Green Whistle producer Medical Developments (MVP) is one of our best growth stocks ASX as we have had some success buying and selling this growth stock, but if you were simply going on the growth of 15% you would not be a buyer. So why are we recommending this growth stock? It’s the growth potential that you can’t see that is embedded in its system that has got our attention, having covered the growth stock for a long time.
This company has invested millions in a global distribution network. We admit that the size of the global market for the Penthrox Green Whistle is very difficult to analyse and will only become clear over time. Against this, you have FY19 sales growth in Australian ambulances of 38%, which is the kind of growth potential we’re talking about on a global basis. This growth potential has been delayed, which is why the estimates are subdued, but (another but) this stock can surprise on the upside because of its investment in distribution. There are dozens of countries where this growth stock ASX is licenced to sell, where it has not sold anything yet, plus the potential from cracking the US and other markets.
We continue to rate this stock a Spec Buy, but it has had phenomenal share price appreciation due in no small part to its entry into the giant Chinese market, announced last month. We’ll be reviewing this growth stock in our next issue. To uncover more of the best growth stocks ASX for 2020, join for free now.
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