It’s getting harder and harder to find quality companies to invest in. The ASX 200 and All Ordinaries continue to climb higher as global monetary policy supports investors piling money into stockmarkets worldwide.
The All Ordinaries Accumulation Index – which includes dividends in the index value – has recently climbed to all-time highs, indicating that we should expect deep value opportunities to be few and far between.
I believe investors are now moving towards more and more risky companies, however this doesn’t have to be the way. Investors keen on throwing more cash into stocks should look for those that are outperforming their industry group or have terrific growth options ahead.
4 great options.
JB Hi-Fi Limited (ASX: JBH) is well off its 12-month highs following profit downgrades by rival consumer discretionary companies. The company is still growing profit and is in the process of transforming more stores into the new Home format which should provide a profit boost in coming years.
TPG Telecom Ltd (ASX: TPM) has also pulled back from 12-month highs after the government signalled that it may limit the extent that TPG can install private fibre networks in direct competition to the NBN. Regardless of the ruling, TPG has taken advantage of sector consolidation to be one of the best options in the telecom space.
Crown Resorts Ltd (ASX: CWN) has a huge growth pipeline in Australia, Asia and the US, which analysts expect to boost both revenue and profit for the next 5 to 10 years. The group’s 33% interest in a Macau-based casino group has been a drag on the share price due to short-term concerns over revenue growth, but I expect these fears will prove to be an overreaction in 12 months’ time.
Finally, well-respected financial services group IOOF Holdings Limited (ASX: IFL) is nearly 15% below its 12-month high, despite having a successful history and a few key business risks outstanding. The group is merging with SGF Australia to form the third largest financial services group in Australia, which should provide great growth prospects going forward.
Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie
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