With interest rates being kept at 2.5% by the RBA, it's tough being a saver. Indeed, high-yielding stocks seem to be getting all the attention right now, as investors seek a higher income from shares in order to make up for low savings rates on cash deposits.
However, while a low interest rate is not great news for savers, it can help the wider economy (and the companies that operate within it) to grow. Furthermore, with high-yielding stocks getting all the attention, growth companies seem to offer the potential for strong future performance at a reasonable price. These two factors combined could mean that growth stocks offer investors a considerable opportunity at present. As such, here are two fast-growing commodity stocks that could bolster your portfolio.
Caltex
Caltex Australia Limited (ASX: CTX) has had an impressive 2014 year-to-date, with shares in the service station provider being up 22% while the ASX is up little more than 3% in 2014. However, there could be more to come as Caltex is forecast to increase earnings per share by 20% next year, which is well ahead of the wider index growth rate. Despite this, Caltex continues to trade on a relatively low forward P/E of 15.8 and, when this is combined with the previously mentioned growth rate in earnings, means that the company has a PEG ratio of around 0.8. This is very attractive and means that the remainder of 2014 (and beyond) could be equally as strong as the first seven months of 2014 have been.
Oil Search
Similarly, Oil Search Limited (ASX: OSH) has performed well during 2014, with shares in the oil exploration company being up 15% year-to-date. Furthermore, the company looks set to experience a purple patch in earnings over the next couple of years, with the bottom line expected to increase by 153% in the current year, and by 68% in the following year. Clearly, this rate of growth is above and beyond the wider index, although the fascinating thing about Oil Search is that its forward P/E is still relatively low at just 14.6. This highlights its value and means that an exceptional forecast growth rate is on offer at a very reasonable price.
