The last 10 years have been somewhat disappointing for many Aussie investors. After all, the ASX is up just 33% during the period, having endured the global financial crisis and still yet to fully return to its 2007 levels.
However, some stocks are now trading at 10-year highs. Here are three prime examples – is it now too late to buy them, or are further share price gains still very much on offer?
Commonwealth Bank of Australia
Shares in Commonwealth Bank of Australia (ASX: CBA) have risen by a whopping 161% over the last 10 years, which is an impressive result when you consider that the global financial crisis rocked the sector.
That's not to say that further growth is not on the cards, though, since CBA still trades on a price to earnings (P/E) ratio that is only slightly higher than that of the ASX, with it being 15.4 versus 14.9 for the wider index. And, when you consider that CBA has been able to grow its bottom line at an annualised rate of 11.6% during the last five years, it appears to offer a great track record of growth at a very reasonable price.
CSL Limited
CBA's returns, however, pale in comparison to those of CSL Limited (ASX: CSL) over the last 10 years. It has seen its share price soar by an incredible 714%, which is understandably making many investors question whether it may run out of steam.
However, CSL continues to offer investors a supreme track record of bottom line growth. For example, it has been able to increase profit by 21.4% per annum during the last 10 years, which is an exceptional rate of growth and, looking ahead, it could perform in a similar fashion. That's because CSL has the resources to deliver on an impressive pipeline and investor sentiment could push its shares to higher highs.
Telstra Corporation Ltd
Despite trading at a 10-year high, shares in Telstra Corporation Ltd (ASX: TLS) have underperformed the ASX during the period, with them rising by just 29%. Although this is disappointing, Telstra has strong momentum, having posted a capital gain of 88% in the last three years.
Part of the reason for this improved sentiment is an updated strategy, with the company looking outside of the highly competitive Aussie mobile market for growth opportunities. This should allow it to grow its bottom line at a much faster pace than has been the case in recent years (earnings have grown by just 1% per annum over the last 10 years), and with a stable yield of 4.7%, improving investor sentiment in Telstra could continue to drive its share price higher.
