4 growing financial stocks to buy-and-hold for the next decade

The stocks look set to keep on growing.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s 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 business models of certain financial companies offer some of the most appealing investment credentials on the entire ASX. The reason for this is the profit margins and the leverage to higher revenues off a relatively fixed cost base that financial companies such as the following five enjoy.

These four stocks are all very profitable businesses already, but with strong pipelines of growth and good leverage their futures look great and investors should keep them on their watchlists.

1)      Platinum Asset Management Limited (ASX: PTM) and Magellan Financial Group Ltd (ASX: MFG) have forged solid positions as Australian-based leading fund managers of international equities. While they are already in pole position, there is massive scope for their businesses to grow much further, particularly as Australians' superannuation accounts are seriously underexposed to global stocks.

2)      IOOF Holdings Limited (ASX: IOF) is a growth stock primarily due to its continuous bolt-on acquisition strategy. The most recent example is IOOF's approach towards smaller rival SFG AUST FPO (ASX: SFW). While under many circumstances investors could be sceptical of a growth by acquisition strategy, IOOF has proven itself to create shareholder value through the process. The tailwind of compulsory superannuation contributions of course provides organic growth as well.

3)      Ozforex Group Ltd (ASX: OFX)The foreign exchange provider has grown net profit after tax (NPAT) from $13.2 million in FY 2011 to $17.1 million in FY 2013. According to its IPO prospectus, NPAT is forecast to grow to $18.6 million in the current financial year. Ozforex offers a valuable and trusted foreign exchange service at a fraction of the cost of the big banks. With more and more people looking to do business and travel across the globe, Oxforex is well positioned to ride this globalisation trend.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares of OzForex.

More on ⏸️ 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
ETFs

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.
⏸️ 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
⏸️ 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 »

Two people in suits arm wrestle on a black and white chess board.
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
⏸️ 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 »

⏸️ 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 »