5 essential stocks for the aggressive investor

Stocks like Nearmap Limited (ASX:NEA), Slater & Gordon Limited (ASX:SGH), G8 Education Ltd (ASX:GEM), Select Harvests Limited (ASX:SHV) and Greencross Limited (ASX:GXL) could help investors achieve superior returns

| 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

I recently highlighted five stocks which would be a perfect fit for investors wanting to limit their level of risk on the stock market. But some investors are more than willing to accept a higher level of risk in the hope of recognising far greater returns.

While it is vital that these investors also build their portfolio on a solid foundation, they should be looking for stocks which offer enormous growth potential, as well as the occasional high-risk/high-reward speculative play.

Here are five stocks which such an investor could consider buying today…

  1. Nearmap Limited (ASX: NEA) is a small-cap company that provides ultra-high resolution aerial photographs which are proving incredibly useful across various industries, including construction, real estate and even insurance. With strong growth prospects in Australia, it has also recently begun conducting test flights across the US which could also prove to be an enormous market for the company. With shares trading at just 42 cents, now is a great time to jump on board.
  2. Slater & Gordon Limited (ASX: SGH) shone brightly last week when it recorded a massive 47.2% increase in net profit after tax (NPAT) for its full year ending 30 June 2014. While the legal firm is already well established in Australia in Personal Injury cases, it also boasts an expanding presence in the UK market. Trading on a P/E ratio of 18.2x, it boasts a market cap just under $1.2 billion and a fully franked 1.4% dividend yield.
  3. G8 Education Ltd (ASX: GEM) is aggressively taking market share in Australia's childcare services industry, acquiring businesses across the nation to extend its dominance. It recently announced a 48% increase in NPAT for its first-half operations. In addition, it boasts a fully franked dividend yield of 3.8%.
  4. Greencross Limited (ASX: GXL) has employed a similar roll-out strategy as G8 Education to improve its market share in Australia's growing pet services industry. It recently acquired retail group City Farmers which took its share of Australia's market to an estimated 7.5%. As pet owners become increasingly willing to spend more on their loved ones, Greencross is in a prime position to benefit.
  5. Select Harvests Limited (ASX: SHV) is also a good option for the aggressive investor to consider. While the almond producer was one of the most dominant stocks on the ASX in 2013, its share price has diminished considerably due to weather conditions affecting its crop. However, improving consumer health trends as well as a severe drought in California (affecting worldwide supply) should benefit Select Harvests in the long run, making now a good time to buy.

The Motley Fool's #1 growth stock – FREE!

It is the goal of every investor to beat the market's returns in the long run. While it's not an easy task to consistently achieve, it becomes increasingly possible by buying strong growth stocks like those mentioned above. However, there is another stock which is also posing as a great buy today. It offers just as much growth potential as well as a juicy, fully franked dividend yield.

Motley Fool contributor Ryan Newman owns shares in Nearmap Limited.

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 »