Looking out over the next several years, there are two companies that I believe have great prospects for growth and change.
One of these large-cap stocks has handily beaten the S&P ASX 200 Index's (ASX: ^XJO) 14.7% gain over the last twelve months. The second has been going sideways in share price for about two years, but may start turning around over the next 12-18 months.
Computershare Limited (ASX: CPU), the share registration and transfer agency service provider, looks to be doing more business as the domestic and overseas stock markets are rising.
Share market rise and Asian development: It has been expanding its operations in the US, its largest market by revenue share. It also sees growth opportunities in the developing Asian financial markets where its technical know-how and advanced systems can be greatly applied.
Share price and analyst forecasts: Over the past year, the stock is up about 18% and offers a 2.4% dividend yield. Analyst forecasts are projecting an average 10%-11% rise in earnings annually for the next two years. Continued financial market strength makes Computershare a steady growth stock for your portfolio.
Leighton Holdings Limited (ASX: LEI) is starting up a restructuring to streamline the business and plans to sell some of its subsidiaries like John Holland. That can create big cost savings as well as bring in extra capital from the sales.
Offsetting weaker mining industry: The engineering and construction company has lost some of its contract mining work due to the mining pullback, but that is partially offset by more work in infrastructure and LNG projects. If the market can see the company is turning around, that will draw a lot of investor attention, which could translate into a revived share price.
Share price: It is offering a very juicy 5.5% dividend yield. Since February the stock has risen from about $16 to around $20, though that it is still much lower than the $30 level it was at in 2010. Starting a position in the stock and watching how the restructuring progresses will give you exposure to potential share price gains.
