Australia and New Zealand Banking Group (ASX: ANZ), ResMed Inc. (CHESS) (ASX: RMD) and Macquarie Group Ltd (ASX: MQG) are setting the world on fire with first-class growth strategies. While some Australian companies, such as National Australia Bank Ltd. (ASX: NAB) and Insurance Australia Group Limited (ASX: IAG), have been hindered by poorly conceived international expansions.
However, the former's success hasn't gone unnoticed by the market. Shares in ANZ, ResMed and Macquarie are up 44%, 68% and 127%, respectively in the past two years not including dividends. So are they still a buy at today's prices? Or will they struggle to beat the S&P/ASX 200 Index (ASX: XJO) (INDEX: ^AXJO) from here?
Here's what I think you can expect from these three successful Australian companies in coming years.
ANZ
ANZ has, since 2007, been implementing its Super Regional Strategy which is unique amongst Australia's banks because it will actively compete with other banks in Asia. Its International and Institutional Banking division continues to perform strongly as its customer base in the region expands. Locally ANZ has committed to increasing its mortgage market exposure and business banking.
Despite the obvious growth prospects, I don't believe now is a good time to buy ANZ shares (or any of the big banks for that matter). I'd rather wait for a pullback in price before committing to an investment.
ResMed
With increased awareness for sleep related respiratory disorders, the customer base for ResMed's world-class products is growing. This trend looks set to continue for many years. Although ResMed has grown into a $7.3 billion company, which means its growth will now be off a larger base and therefore slower, it trades at a reasonable price given its exceptional long-term prospects. Dividends will also increase in coming years.
Macquarie
As our largest investment bank, Macquarie stands out as an obvious beneficiary of rallying stock markets and improving confidence throughout the world. With 68% of income derived from international markets, a conservative balance sheet and growing funds under management, Macquarie appears to be a compelling long-term buy to hold.
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Of these three companies, I'd buy ResMed first. Whilst I feel both Macquarie and ANZ have promising futures, their current share prices don't scream "bargain" to me. However with over 2,000 companies on the ASX, you shouldn't limit yourself to just three. Shop around a bit!