2 exciting growth shares I'd buy right now

While the outlook for share prices may be somewhat uncertain, there are a number of stocks which could offer strong returns. Certainly, share prices may not be quite as cheap as they were a number of months ago. However, here are two stocks which appear to offer exciting growth outlooks over the medium term.

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Improving performance

Reporting on Monday was LED lighting specialist Luceco(LSE: LUCE). Its results for the most recent financial year show that it made encouraging progress, with revenue moving 29.8% higher and operating profit rising by 30.4%. The company was able to grow revenue across all of its product categories, which show that its current strategy appears to be working well. It reported improved gross and operating margins while expanding its manufacturing capacity in the wholly-owned Chinese facility.

Looking ahead, Luceco appears to have a bright future. Its pipeline includes a number of new product launches, while the ongoing investment in its expanded sales teams and new sales offices in Spain and Hong Kong could positively catalyse investor sentiment. In fact, earnings growth of 17% in the current year and 21% next year are currently forecast. This puts the company's shares on a price-to-earnings growth (PEG) ratio of just 0.8, which indicates that now could be the perfect time to buy them.

As well as high potential rewards, the risks from investing in Luceco appear to be declining. It was able to reduce net debt from £46.1m in 2015 to £29.4m in 2016. This reduces net debt/adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to 1.4 times. This should improve its overall performance in a period where interest rate rises are becoming increasingly likely.

Resilient growth

While a number of UK-focused retailers are forecast to record falling bottom lines this year, Bargain Booze owner Conviviality(LSE: CVR) is expected to buck the trend. Its earnings are forecast to rise by 15% in the current year, and by a further 8% next year. This shows that the company's business model may be more resilient than the wider retail sector. As such, at a time when inflation is rising and may even surpass wage growth this year, Conviviality could be a shrewd buy.

Despite its robust outlook, the company trades on a PEG ratio of just 1.4. This seems to be a fair price to pay given its stable growth outlook, and indicates that share price appreciation could be high. And since Conviviality offers a dividend yield of 5.1%, its total return could easily surpass that of the wider index over the medium term.

In fact, with dividends being covered 1.7 times by profit, there is scope for them to rise by at least as much as profit growth in the coming years. This could increase demand for the company's shares, since they appear to offer a potent mix of income, value and growth appeal.

Top growth stock?

Despite this, there's another stock that could be an even better buy. In fact it's been named as A Top Growth Share From The Motley Fool.

The company in question has the potential to deliver high growth over the medium term. Therefore, it could boost your portfolio's performance in 2017 and beyond.

Click here to find out all about it - doing so is completely free and comes without any obligation.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.