Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Top 10 ASX growth stocks to watch in July 2024

A brief description of growth stocks, and a rundown of the 10 best ASX growth stocks to consider next month. These shares have been picked for their recent market news and are ordered by market capitalisation.

asx growth shares Source: Getty

ASX growth stocks took a hit in 2023. Financially, the twin ghouls of inflation and increased interest rates are both making it much harder to achieve economic growth. Australian inflation may have fallen, but the RBA cash rate remains at 4.35%.

Much of the financial stress can be attributed to the impact of global geopolitical events. The Ukraine War, rolling Chinese pandemic lockdowns, and now potential global recession, are contributing to sizeable share price falls among many of even the best ASX growth stocks.

However, this could also make them excellent buying opportunities on the dip, despite the attached risk.

What is an ASX growth stock?

Growth stocks are shares in companies that are expected to grow much faster than either the average growth of a company within the wider market or within its specific sector.

Instead of paying out dividends, any profits generated are ploughed back into the business to help accelerate growth. Accordingly, investors are usually hoping to make a profit on capital gains in the short term, with dividend income a potential outcome once major growth has been established.

Some of the best growth stocks, especially those occupying a specialist niche, trade at a high price-to-earnings ratio. Therefore, would-be investors usually end up paying a premium in hope of future growth. This means that growth stocks can see rapid declines if the company underperforms, even in just one quarter.

Common traits of the most popular ASX growth stocks often include holding patents or technologies that grant the company a unique marketplace advantage. Therefore, many have a loyal customer base and disproportionately high market share.

One key misunderstanding is that all growth stocks are small caps that might have weaker financials or be confined to domestic business. While many are, larger companies can also qualify as growth stocks depending on how much market share remains realistically available.

As an extreme example, US$570 billion market titan Tesla is by all accounts still a growth stock, delivering less than one million of the 66.7 million automobiles sold in 2021.

High risk, high reward?

One of the best-known rules of investing is the risk-reward ratio, whereby investors balance an equilibrium that sees higher-risk companies deliver either negative capital growth or far better rewards than comes from value or income investing.

For context, penny stock investing is generally regarded as being very high risk, but with the potential for exceptional returns.

Conversely, income stock investing through blue chip companies for dividends is relatively low risk, but returns can take years to become meaningful.

ASX growth stocks take their place somewhere in the middle. Of course, many investors choose to invest in a diversified portfolio that includes multiple different growth stocks to account for the risk of an individual failure. And in this recessionary environment, it can make sense to buy the dip slowly through dollar-cost averaging to further mitigate the chances of losing capital.

But fundamentally, all investing comes with risk. For example, Tesla proponents believe the EV trailblazer could one day become the automobile production market leader; but any threat to this goal through competition or similar could see a sharp correction in the future. Conversely, if Tesla succeeds, its future market cap may make the current valuation look small.

Another common growth stock example is biotech companies, some of which have their valuations underpinned by one drug or treatment. If the drug fails in the trial stages, their share price can collapse, as happened to Synairgen, BridgeBio Pharma, Sensorion, and Rafael, alongside countless others.

What makes ASX growth stocks special right now?

Australian investors often have their pick of stocks from across the world, and many may look to the US for historically higher returns from companies enjoying a far larger marketplace than those found down under.

However, the recessionary environment could be changing the investing calculation. The Reserve Bank of Australia has imposed lower interest rates than its counterparts in the UK, US and EU, and in theory this makes growth in Australia easier to achieve.

This could be beneficial for ASX growth stocks, given the positive relationship between their performance and low-interest rates. Investors expect growth stocks’ share prices and financial performance to accelerate faster than the market average. To achieve this, they are usually reliant on cheap borrowing, fuelled by looser monetary policy.

Of course, no investment is risk-free, and there is no guarantee that ASX growth stocks will outperform their international peers. Many of the best ASX growth stocks have nevertheless suffered a poor 2023. But there is an undeniable advantage going forward into 2024.

Accordingly, here is a list of ten of the most promising ASX growth stocks for investors to consider.

Remember, past performance is not an indicator of future returns.

Top 10 ASX growth stocks to watch

These shares have been selected for recent market news. They may not necessarily be the best growth investments, but have attracted elevated investor interest.

Aristocrat Leisure

Aristocrat Leisure is a leading gaming technology company, with operations covering poker machines, real money gaming, and mobile games. The mobile games segment boasts millions of daily active users playing games such as Gummy Drop, EverMerge, and Cashman Casino.

In half-year results, Aristocrat saw revenue grow by 6% year-over-year and a 16% growth in normalised NPATA to $764 million, reflecting the growth strategy, operating leverage, ongoing investment in organic growth initiatives, and cost optimisation.

CEO Trevor Croker enthused that ‘this was once again an outstanding result, reflecting Aristocrat’s resilience and ability to grow share and drive profitability through different operating environments… underpinned by record Aristocrat Gaming performance, led by an exceptional North America Gaming Operations result.’

Market cap: $29.4 billion


NextDC Ltd remains Australia’s largest data centre operators, with 13 centres throughout Australia, Japan, Malaysia and New Zealand, and nine more planned to open.

In early H1, it announced that it is partnering with Microsoft, alongside a team of recognisable ASX companies, to bring a cutting-edge data centre to Pilbara. And in November, it started building its $80 million data centre in Darwin.

There’s also the partnership with La Trobe Business School’s Research Centre for Data Analytics and Cognition, to explore AI advances, to consider. The company raised $1.3 billion from investors in April to expand ‘the development and fit out of NEXTDC's leading digital infrastructure platform in its core Sydney and Melbourne markets to meet unprecedented growth in customer demand.’

Morgans analysts have an ‘add’ rating and £19 price target on the stock, arguing that ‘Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised).’

Market cap: $10.6 billion

Treasury Wine Estates

Treasury Wine Estates Ltd is a global winemaking business, which used to be the wine division of the Foster’s group. Analysts at Morgans think that the ASX growth stock is a ‘buy’ given its recent acquisition of DAOU Vineyards for $1.4 billion.

With a price target of $14.03 on the shares, Morgans thinks that ‘while not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near-term share price catalyst is if China removes the tariffs on Australian wine imports.’

Market capitalisation: $9.4 billion

IDP Education

IDP Education is a growing language testing and student placement company, whose net profit surged by 19% year-over-year to $97.4 million in half-year results.

Goldman Sachs analysts have a ‘buy’ rating with a $26.60 price target on the stock, noting that ‘We are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL's structural growth outlook and business quality remain unchanged in our view.’

Market cap: $4.8 billion


Jeweller Lovisa has been on a stellar run, with revenue rising by 18.2% year-over-year to $373 million in half-year results. Operationally, the company opened in both the Chinese and Vietnamese markets during the period, while opening 74 new stores and bringing its total estate to 854.

Morgans remains impressed by the company, with an ‘add’ rating and a $35 price target on the stock. It’s also forecasting a fully franked dividend of just over $0.83 per share in FY24 and $0.85 per share in FY25.

Market cap: $3.5 billion


Life360's key product is a family communication, location and alert app for smartphones that allows users to share their locations with each other.

Goldman Sachs has a ‘buy’ rating and a $12.20 price target on the stock. Analysts note that the company has been delivering ‘solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation.

FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.’

Market cap: $3.3 billion


Megaport's recent quarterly update saw the connectivity and network services provider’s total revenue rise to $48.6 million with an EBITDA of $30 million, significantly ahead of analyst expectations. Goldman Sachs noted that the company reported ‘1H24 revenue of A$95mn (+35% yoy, +1% vs. GSe prior) and EBITDA of $30mn (+20% vs. GSe prior).’

The company’s shares have now increased by more than 160% over the past year.

Market cap: $2.4 billion

Regis Resources

Regis Resources Ltd is one of the largest ASX gold miners — gold remains close to a record high, and Regis shares are experiencing some weakness.

Because of this, Bell Potter analysts are ‘attracted to its all- Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.’

They maintain a ‘buy rating’ with a $2.60 price target on the stock.

Market cap: $1.6 billion

Objective Corporation

Objective Corporation is a content, collaboration and process management solutions provider for the public sector across Europe and the Asia Pacific regions. Public sector contractors can be attractive growth companies due to the near-guaranteed income and well-known snowball effect.

Morgans analysts have an ‘add’ rating on the stock with a $14 price target, arguing that the ‘Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend.’

Market cap: $1.2 billion

IPD Group

IPD Group is a well-known distributor of electrical equipment and also sells digital industrial tech solutions.

Bell Potter analysts have a ‘buy’ rating on the stock with a $5.90 price target. They contend that the company is ‘a high quality play on the electrification growth trend which is emerging as a dominant market narrative,’ noting growing product volumes, the turnaround potential given its large market share and ‘IPD's electric vehicle charging opportunity reaching a tipping point in FY24e.’

For context, half-year results saw the ASX growth company generate record half year revenue, up by 8.8% year-over-year to $120.7 million.

Market cap: $444 million

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.*

Learn more about share CFDs or share trading with us, or open an account to get started today.

*Winner of ‘Best Multi-Platform Provider’ at ADVFN International Finance Awards 2022

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get commission from just 0.08% on major global shares
  • Trade CFDs straight into order books with direct market access

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.