Investors who favour the relative security of the big end of town will be pleased to own any of the following three businesses given the the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has climbed just 1.4% in 2017, despite overseas stock markets consistently going nuts.
Still the following three ASX large-caps have joined the global party to deliver investors some great returns for a variety of reasons. So let's take a look at what may be behind their success in 2017 and consider what kind of performance may be ahead for the rest of the year.
The CSL Limited (ASX: CSL) share price is up 20% this year after the company upgraded its full year profit guidance on the back of stronger-than-expected sales for some of its core plasma therapy products sold to health services worldwide.
CSL also recently announced a US$500 million share buyback that should support its earnings per share growth as the company's market-leading medical products continue to enjoy strong underlying demand. Today its shares sell for $120.05 and given the earnings momentum I would not be surprised to see the stock finish 2017 higher
Woolworths Limited (ASX: WOW) is the retail conglomerate that has seen its shares climb 6.5% in 2017 as it slashes prices at its supermarket stores in an attempt to win back shoppers. Importantly, the group returned to comparable store sales growth for the six-month period ending December 31 2017, despite dividends and profits plunging.
It's possible that the company could return to sustainable profit growth as outlined in this article by Mike King. If Mike is correct then Woolworths shares are likely to keep on climbing in 2017 and beyond.
The Transurban Group (ASX: TCL) share price is up 6.3% in 2017 after the group recently upgraded its full year dividend guidance to 51.5 cents per share. The toll road operator is prized for its yield and defensive earnings streams as a toll road operator with virtually no competition.
Selling for $11.01 the shares offer an estimated yield of 4.67%, although I expect the stock will come under selling pressure as the U.S. Fed moves to lift its base lending rate over 2017. As risk-free debt and lending rates rise it's likely Transurban Group's share price will fall (or its yield return to historical norms) as investors demand a higher yield in return for investing in risky equities. Moreover, its high earnings multiple is also likely to fall if investors sell the shares in the belief there are better risk-adjusted returns available elsewhere.
