With the ASX losing over 2% last week, it's clear that the index's record highs may not be surpassed in the short run. Indeed, this brings into much sharper focus a desire for investors to beat the index, since as recent days have shown, it is still susceptible (like all stock markets are) to uncertain events around the world. With that in mind, here are three stocks that could have bright futures and, more importantly, could beat the ASX.
Suncorp Group Ltd
During 2014, Suncorp Group Ltd (ASX: SUN) has outperformed the ASX, by 6% to 1.6%. However, it could continue to do so. For starters, Suncorp is forecast to increase EPS by 7.3% in the current year to June 2015 and, more importantly, its price to book ratio of just 1.3 indicates that it offers good value at current levels. Certainly, it may not be the fastest growing stock out there, but if the ASX continues to fall, it could outperform on the downside too, since it has a beta of just 0.8. In addition, a fully franked yield of 5.1% could tempt many investors to bid up the price of shares in Suncorp.
QBE Insurance Group Ltd
Unlike Suncorp, QBE Insurance Group Ltd (ASX: QBE) has endured a difficult 2014, with shares in the company being down 6% year-to-date. However, this means that they now offer even better value for money and trade on a price to book ratio of just 1.2. Although QBE made a loss last year, it is forecast to return to profitability this year, which puts shares in the company on a forward P/E of just 11. In addition, a yield of 3.3% (fully franked) remains relatively attractive and, together with a potential return to profitability and an encouraging valuation, could mean that investor interest in QBE increases significantly during the second half of 2014.
Australand Property Group
2014 has been much kinder to ASX-listed REIT, Australand Property Group (ASX: ALZ). It is up 16% during 2014 and could continue to beat the index. That's because it is expected to increase its bottom line by 11% in the current year, and follow this up by a rise of 7% next year. Despite this, shares in the company trade on a forward P/E of just 14, which highlights the potential for an upward rerating moving forward. Allied to this is a dividend yield of 5.2% which, although not franked, still equates to 2.9% after tax and is higher than the base rate of 2.5%. Indeed, Australand, alongside QBE and Suncorp, has the potential to beat the ASX and could help your portfolio to do the same.
