ASX growth stocks always have a certain appeal with a broad swathe of the investing community. Who wouldn't want to own companies growing at a faster rate than the broader market, after all? Especially if said growth is accompanied by share price appreciation, which it often is.
With that in mind, let's discuss three ASX growth stocks that I think are worth buying today if you had $7,000 to spend on investments for your future.
Our first stock is actually an ASX exchange-traded fund (ETF). However, this ASX ETF gives investors the chance to invest in some of the United States' best growth stocks. The Betashares Nasdaq 100 ETF is an index fund that tracks the Nasdaq 100 Index, which is known for housing most of the US' best growth companies.
You have the Magnificent 7 in their entirety, of course. The likes of NVIDIA, Meta Platforms, Alphabet, Amazon, and the rest of the crew have been some of the highest-growth companies on the planet for many years now. NDQ gives you a healthy helping of each. But it also holds other growth stocks, including Netflix, Broadcom, Costco, Intuit, and Palantir Technologies.
I think any investor who wants to add some decent exposure to growth stocks would be well served by this ASX ETF. As I discussed last week, you can always opt for a US-listed fund instead if NDQ's 0.4% management fee per annum is a little much for you to stomach.
Enterprise software company TechnologyOne has proven to be one of the ASX's best-performing growth stocks in recent years. Just in the past 12 months alone, TechnologyOne shares have rocketed more than 120%.
With a price-to-earnings (P/E) ratio of 100, this company is not cheap today. However, investors might be assuaged by this growth stock's numbers. Back in May, TechnologyOne revealed that its revenues rocketed 19% over the six months to 31 March to $291.3 million. It also issued guidance that it expects its net profit before tax to grow between 13% and 17% over the full FY2025.
If TechnologyOne can keep those kinds of numbers going for even a few years ahead, its shares could look cheap today in hindsight.
Our final ASX growth stock worth a look today is online accounting software provider Xero. Like TechnologyOne, Xero has been a market darling for years now. Investors have enjoyed a near-34% rise from this company over just the past 12 months.
The market wasn't too impressed with this growth stock's announcement late last month that it would be acquiring the American company Melio for US$2.5 billion. However, many experts reckon this acquisition could turbocharge Xero's growth.
One such broker is UBS. Earlier this week, my Fool colleague looked at UBS' views on the Melio acquisition. The broker pointed out that Melio has enjoyed revenue growth of 40% over the past 12 months, providing Xero with a potentially lucrative expansion route into the United States.
UBS has given this ASX growth stock a 12-month share price target of $215. If realised, investors could enjoy an upside of more than 20% by this time next year.
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