Some investors may be wary of stocks hitting all time or rolling year high prices, but it can also indicate stocks that are on the move because their business is improving, revenues and profits may also be growing strongly or they’ve turned the corner after a nasty down patch.
Several large blue-chip stocks are hitting their 52-week high points but there could well be more upside ahead, so let’s take a closer look at four potential BIG winners.
Brambles Limited (ASX: BXB)
The pallet solutions (CHEP) provider and logistical services company has surged higher after demerging its records management business. Revenues and profits are growing nicely and tailwinds include significant exposure to the recovering US economy, and any fall in the Australian dollar exchange rate. Management are now free to focus on the core business, and Brambles could easily see its share price rise above its year high of $9.85.
Lend Lease Group (ASX: LLC)
The diversified infrastructure, property and construction company recently hit a five year high of $13.80, having surged from a low of around $8 a year ago. Building construction in Australia is beginning to recover after what has been described as the worst period in 20 years. With the new federal government keen to be known as the ‘infrastructure’ government, billions of dollars are set to be poured into the economy and Lend Lease will likely be one of the major beneficiaries.
Oil Search Limited (ASX: OSH)
The oil and gas producer has seen its share price hit a ten year high of $9.27 recently, as the company’s PNG LNG project reaches completion. First production is expected later this year, and at full production is expected to transform Oil Search into a major LNG exporter. Dividends have been mooted when the company is at full production, and the share price may well have further to run.
Transurban Group (ASX: TCL)
The toll road manager has announced a number of major deals recently including a $7 billion bid for Queensland Motorways, and a $475 million bid for Sydney’s Cross City Tunnel toll road. Paying a consistent dividend and delivering shareholders an 11.5% annual return over the past ten years, Transurban could also be set to see its share price run well ahead of the current price of $7.28.
If you want another idea for a stock that we think has plenty of potential, pays a decent fully franked dividend and may well be excellent value, you won’t want to miss this special FREE report.