Top 5 ASX growth shares to watch in June 2026

What are ASX growth shares?

ASX growth shares are companies that reinvest profits to fuel rapid expansion rather than pay dividends (most of the time). The five stocks in this article prove the point – they've delivered returns of up to 16.16% in just one month.

These companies typically trade at high price-to-earnings (P/E) ratios because investors pay a premium for future growth. Having said that, many growth stocks trade at negative P/E ratios, too. This is because they’re often in an early growth phase and might not yet be profitable. For example, Neuren Pharmaceuticals currently trades at a P/E of 56.01, while Carnarvon Energy sits at -8.00 – both reflecting expectations of continued expansion.

The trade-off, though, is that growth shares can fall as fast as they rise. Miss quarterly expectations by even a small margin and share prices can tumble rapidly.

What are the advantages and disadvantages?

The stocks featured in this article exemplify the volatility inherent in growth shares. Take Service Stream, for instance, which experienced a solid 16.16% increase in just one month.

Growth shares occupy a middle ground between high-risk penny stocks and the more stable blue-chip dividend stocks. They offer the potential for substantial gains without the extreme volatility of speculative plays.

However, the risk lies in how these companies typically reinvest profits rather than distribute dividends, meaning share traders rely mostly on share price appreciation. Failure to meet growth targets can result in share prices falling as dramatically as they rise.

What makes ASX growth shares special right now?

Several powerful catalysts are driving solid ASX growth share performance in 2026.

• Sector stability: The shares on our list specialise in strong growth drivers in the Australian economy
• Innovation: Companies like Imdex rely on R&D and innovation to maintain their market share in their industries
• Economic backbone: These companies operate in industries that bolster the Australian economy, such as health technology, mining, finance, and commercial and distribution services

Australia's stable regulatory environment, and strong tech and mining sectors, provide a perfect launchpad for these growth stories to unfold.

Top 5 ASX growth shares to watch in June 2026

If you're looking for companies with recent momentum and the potential for capital appreciation, the ASX offers a range of options.

Our selection criteria

• Performance: Up to 16.16% gains in one month
• Growth focus: Profits reinvested in R&D and expansion
• Sector diversity: Mining, finance, health technology, and commercial and distribution services

Past performance doesn't guarantee future returns – all investments and trades carry risk.

Overview of the ASX growth shares in this article

You can share trade all the stocks in this article through us, as well as CFD trade them via our platform.

All figures are correct as of 22 May 2026.

1. Challenger Limited (ASX: CGF)

Sector: Finance

Market cap: A$6.46 billion

P/E ratio: 15.24

One-month share price performance: 13.70%

Challenger is an Australian investment management company that primarily focuses on providing financial security for retirement. It’s the dominant provider of annuities in Australia, operating through a Life division that offers fixed-income retirement products and a Funds Management division that manages a diverse range of global assets.

Recent news over the past six months highlights steady operational progression. It’s reported consistent growth in assets under management and positive trading updates, supported by a healthy capital position above the regulatory minimum.

Key milestones include a continuing on-market share buy-back programme, the redemption of older hybrid notes and a strategic whole-of-loan sale agreement that demonstrates its ongoing capital optimisation strategies.

For share traders, it offers appealing stability driven by Australia's mandatory superannuation contributions and an aging demographic that fuels long-term demand for retirement incomes.

For CFD traders, the stock provides solid liquidity and predictable trading volumes, with price movements frequently reacting to macro factors such as interest rate shifts and broader financial market performance.

Risks:

• Its Life investment portfolio relies heavily on fixed-income credit spreads and property performance, meaning a major economic downturn could compress its earnings

2. Service Stream Limited (ASX: SSM)

Sector: Commercial services

Market cap: A$1.42 billion

P/E ratio: 28.03

One-month share price performance: 16.16%

Service Stream is an industrial services company that designs, builds, operates and maintains critical infrastructure networks across Australia. It acts as an essential service provider across three core sectors: telecommunications, utilities (including water and gas) and transport infrastructure.

Over the past six months, it’s delivered positive results underpinned by a substantial expansion of its multi-year work-in-hand order book.

Operationally, it successfully mobilised a major new water operations and maintenance contract and secured several contract updates, reflecting a stabilising business model following a historical segment repositioning.

For share traders, it presents a compelling case as a recovering yield-paying stock with defensive qualities, since infrastructure maintenance budgets are rarely cut during economic downturns.

CFD traders may find it attractive because its corporate earnings announcements and new contract awards often create sudden, tradable price spikes, breaking out of its historically quiet trading bands.

Risks:

• Because it operates on large-scale, long-term agreements, any operational delays or cost overruns can quickly squeeze its thin profit margins
• It also remains exposed to broader labour shortages and rising material costs, which can erode the profitability of fixed-price contracts before inflation-linked adjustments kick in

3. Carnarvon Energy Limited (ASX: CVN)

Sector: Energy minerals

Market cap: A$214.69 million

P/E ratio: -8.00

One-month share price performance: 13.64%

Carnarvon Energy is an oil and gas exploration and production company with assets located predominantly in the North West Shelf of Australia. Its primary focus is the development of the significant Bedout Sub-basin, which includes the high-profile Dorado and Pavo hydrocarbon fields.

News over the past six months highlights a firm focus on capital discipline and project preparation. It has maintained a strong, debt-free balance sheet with a major cash reserve and holds a strategic equity stake in another local energy player.

This share is highly speculative, making it a double-edged sword. It’s suitable for adventurous share traders looking for exposure to a major, pre-production energy asset that has substantial future development backing.

For CFD traders, it’s potential lies in its lower share price and high volatility, allowing traders to speculate on energy sector sentiment, oil price fluctuations and technical breakouts.

Risks:

• It currently generates no revenue from active production, meaning it relies entirely on its cash reserves and external backing to fund operations
• Any further delays in securing drilling rigs, environmental approvals or final investment decisions for the Dorado project could severely depress the share price

4. Imdex Limited (ASX: IMD)

Sector: Distribution services

Market cap: A$2.06 billion

P/E ratio: 43.10

One-month share price performance: 5.45%

Imdex is a global mining technology provider that helps drilling contractors and resource companies optimise their operations. It develops cloud-connected sensors, robotic drilling optimisation products, advanced drilling fluids and data analytics software to provide real-time secure data on rock formations.

Over the past six months, its news flow has been dominated by its resilience amid changing global exploration budgets and its presence at major industry conferences. It’s maintained solid market share across the Americas, Asia Pacific and Africa, leveraging its cloud platforms to secure recurring software revenue.

For share traders, it’s an appealing option because it functions as a technology-driven proxy for the global mining sector, allowing exposure to commodities without the direct risk of managing a single mine.

CFD traders can benefit from its excellent daily trading liquidity and volatility, as the stock is highly responsive to global commodity price trends and changes in mining capital expenditure forecasts.

Risks:

• A prolonged downturn in global mining exploration, particularly in gold or copper, would reduce demand for its drilling fluids and sensors
• As a technology provider, it faces continuous pressure to innovate, meaning any competitive disruption could impact its premium market pricing

5. Neuren Pharmaceuticals Limited (ASX: NEU)

Sector: Health technology

Market cap: A$1.65 billion

P/E ratio: 56.01

One-month share price performance: 10.24%

Neuren Pharmaceuticals is a biotechnology company developing innovative therapies for serious neurodevelopmental disorders that emerge in early childhood. Its primary asset is trofinetide, which is commercially approved in the US under a global licensing agreement with a major partner, while its secondary compound is progressing through separate clinical trials.

Recent news over the past six months is positive. Its US partner reported strong year-on-year sales growth for the core treatment, driving record quarterly royalty income for Neuren. The company also benefited from the successful roll-out of a new powder formulation designed for easier patient administration and announced accelerated timelines for its clinical trials in Japan.

This share is a classic, high-growth biotechnology stock. For share traders, it’s attractive because it’s achieved the rare milestone of transitioning from a cash-burning research firm into a profitable enterprise with millions in royalties and an active share buy-back.

CFD traders will appreciate its wide trading ranges and frequent price fluctuations, which are triggered by regulatory announcements, partner sales reports and clinical data readouts.

Risks:

• It remains heavily reliant on a single commercial product and a single partner for its current revenue, meaning any safety concerns or a slowdown in US patient adoption would deeply damage its valuation

How to trade ASX growth shares with IG Australia

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX growth shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX growth shares
3. Choose the share you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about growth shares 

Footnotes

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