These 2 exciting growth shares look set to go much further

I want to alert you to two firms with the potential to expand over the long term. The stock market seems to be getting a little jittery right now, which could lead to short-term volatility presenting us with attractive entry points into the growth stories these firms offer.

Turning the market research industry upside down

Marketing and market research agency System1 Group (LSE: SYS1) has, in chief executive John Kearon’s own words, “built an international business challenging the market research industry.”

So far, the firm has built its success on applying behavioural science to understanding how people really make decisions. It’s probably no surprise to learn that most people use instinct, intuition and emotion in all of their choices, but the clever bit is how System1 Group has managed to monetise this realisation by producing marketing that “guarantees profitable growth & zero waste” for its client companies.

Targeting a leap in growth

The recent full-year results to March 2017 show that System1 has been growing fast with currency adjusted revenue up 13% and earnings per share ballooning 22% compared to the year before. Looking forward, the firm aims to build “a far bigger business challenging the marketing services industry.” Based on previous performance I reckon it has every chance of succeeding with this diversification strategy, which could drive further impressive investor returns from here.

However, in Thursday’s results statement, as well as delivering a positive outlook statement it owned up that “trading during Q1 of our new financial year has been a little slower than we expected.” Today, at 780p, the shares are around 24% off the high they achieved during May, which makes the stock well worth your further research, in my view.

A consolidating share

Since April, the shares of AB Dynamics (LSE: ABDP) have been taking a breather from their dash upwards and I reckon value could be building. The firm operates as a designer, manufacturer and supplier of advanced testing systems and measurement products to the global automotive industry for vehicle suspension, brakes and steering, and business has been brisk.

At today’s 571p, the shares are around 270% higher than they were in January 2015, fuelled by rising revenue and earnings. City analysts following the firm expect earnings to push 22% higher still for the year to August 2018, as growth shows little sign of easing.

Investing for growth

Back in April with the half-year results, the firm reported ongoing strong demand for its products and services and expects to take control of a new factory in Wiltshire during the late summer. It reckons the new facility will free up valuable manufacturing space for product development areas needed to create new laboratory test equipment, which should drive further growth.

It’s clear that AB Dynamics is investing for, and expects, further expansion and I reckon shareholders could benefit from such progress over the coming years. Any share price weakness now makes the stock look even more attractive to me.