3 blue-chip stocks set to outperform the market

These 3 top quality companies should be in your portfolio.

| More on:

You鈥檙e reading a free article with opinions that may differ from The Motley Fool鈥檚 Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200鈥檚 (ASX: XJO) (^AXJO) strong rise in 2013 has made it difficult for investors to find quality blue-chip stocks trading at cheap prices. The usual suspects like Woolworths Limited聽(ASX: WOW) and resources giant Woodside Petroleum Limited (ASX: WPL) have continued to demand lofty share prices due to their reliable dividends and ongoing growth profile.

However, if investors search long enough, there are bargains to be had. Here are three which many long-term investors may not already own, but could consider adding to their portfolios.

1. Ardent Leisure Group (ASX: AAD) is the owner and operator of a huge portfolio of local and international entertainment and leisure businesses. Some of its brands include Goodlife Health Clubs, Dreamworld, WhiteWater World, AMF and Kingpin Bowling, SkyPoint and Main Event Entertainment in the US. In its recent quarterly report group revenue jumped 12.7%, whilst the Health Club division continued its impressive reporting with a 16.7% earnings increase and, over in the US, Main Event grew profits by 26.2%. Currently Ardent trades on 17 times FY14 forecast earnings-per-share and yields a 5.1% dividend.

2. Newcrest Mining Limited聽(ASX: NCM) is Australia鈥檚 largest gold miner. Since its shares tanked in 2013, following the worst gold price drop in 30 years, management has slashed costs and continued to grow production. In the March quarter, its all-in sustaining cost was $988 per ounce. For the full-year management reiterated its target production of 2.3 million ounces (FY13: 2.1 million ounces). With a huge amount of reserves, high grades and top quality projects throughout Asia, Newcrest is a first class gold miner.

3. Macquarie Group Ltd聽(ASX: MQG) is Australia鈥檚 premier investment bank. On May 2, the bank reported a net profit of $1.265 billion, up 49% on the previous year. International income accounted for 68% of total income. The group’s funds management business performed exceptionally well, increasing assets under management (AUM) by 24% on the prior year and notching up 39% earnings growth. In addition the group maintains a stronger APRA Basel III common equity tier 1 ratio than the big banks and a majority of its international peers. In FY15 it is forecast to pay a 5% dividend yield with partial franking.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.聽

More on 鈴革笍 Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
鈴革笍 Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
鈴革笍 Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more

asx investor daydreaming about US shares
鈴革笍 How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more

person reading news on mobile phone
鈴革笍 Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more