If you’re searching for investment opportunities at the moment, no doubt you’re finding it increasingly difficult. It’s certainly not surprising when you consider that the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has burst through the 5,500 level, in the process registering a gain of over 75% from the depths of the Global Financial Crisis.
Despite the market highs there are still opportunities out there – they just take a little more digging and searching about to discover. Here are three stocks you might want to keep a close eye on.
Don’t let the strong gains and near record high share price of Premier Investments Limited (ASX: PMV) put you off this first class retailer. Run by billionaire Solomon Lew, Premier is successfully expanding its key Smiggle brand into foreign markets which has the potential to provide a strong growth pipeline for the company. At the same time Premier also holds a strategic shareholding in appliance manufacturer Breville Group Ltd (ASX: BRG) which is successfully rolling-out its products into the USA.
Petrol and convenience stores play an important role in the retail industry and it’s a reason both Woolworths Limited (ASX: WOW) and Wesfarmers Ltd (ASX: WES) have expanded into this sector. Caltex Australia Limited (ASX: CTX) is also a major player and according to Commsec’s forecast data the earnings and dividends and set to race higher over the next few years. If Caltex meets the forecasts in 2016, then the stock is currently trading on a forward price-to-earnings ratio of 12 and dividend yield of 4%.
Initial investors in the float of Collins Foods Ltd (ASX: CKF) at $2.50 per share would certainly be unimpressed with the KFC Restaurant franchisee’s share price performance. However, for investors who picked the bottom near $1 per share it’s been a much more pleasurable experience. While the growth of the fast food chain is unlikely to be exceptional the low multiple and above average yield the stock trades could make Collins Foods a tasty investment.