4 stocks worth knowing as they may be heading higher

The revenue and earnings advances will please investors.

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These companies may be well known to investors, but what about their potential for earnings growth?  They have already made share price gains, but they should go further with business coming up over the next year and beyond.

Oil Search Limited (ASX: OSH)

The oil and gas producer operating in PNG increased its production and sales in the December quarter, sending revenue totals up 20% to US$210 million. Full-year revenue was up 6%.

Its PNG LNG project is almost complete and first gas sales should be in second-half of 2014, so more revenue can be expected. The company has also increased its 2014 production guidance to 12 million barrels of oil equivalent.

Premier Investments Limited (ASX: PMV)

The fashion retailer which owns brands like Just Jeans, Jay Jays, Dotti, Portmans, Jacqui E and Peter Alexander has hit a winner with its Smiggle stationery store. Already operating 124 stores in Australia, it is taking the business to the UK where this product market is estimated to be about $2.4 billion.

It plans to create 200 stores there over the next five years. The average spend of its predominantly younger customers is about $20 per visit and the bright colours and bold designs are benefiting the business. Expected profits are far greater than those produced in Australia.

REA Group Limited (ASX: REA)

The operator of realestate.com.au  just wowed the market with 2014 half-year NPAT up 37%, ringing the register at $70.7 million.

In addition to its revenue from real estate businesses for its online property listings service, it is generating more cash from the property sellers themselves. This is from listing depth services and special listing display and delivery options they can choose. With the housing market taking off, you will see more listings from property owners who were waiting for a property revival after several slow years. Increased housing construction means more listings by builders and developers.

Transurban Group (ASX: TCL)

This company develops, owns and maintains toll roads in Australia and the USA. It has interests in such roads as the Melbourne CityLink and Sydney’s Hills M2, Lane Cove Tunnel and the Eastern Distributor.

December quarterly revenue was up 12.6% to $228.1 million from the prior corresponding period. Traffic growth for its Sydney roads was up 10.7% for the quarter.

Its next plan is to buy the Queensland Motorways toll roads up for auction by the Queensland Investment Corporation (QIC). If successful in bidding, it will take control over five of the six existing Brisbane toll roads. More roads, more toll revenue, more earnings.

Foolish takeaway

These are all stable, well-funded companies, so the earnings growth potential is more secure than some small start-up with opportunity but not much cash. These companies are also diverse enough to make up an instant new portfolio if an investor wanted to start out with quality companies with good future prospects.

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Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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