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…
- 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.
- 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.
- 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%.
- 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.
- 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.
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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.
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I own the stock, and think you should take a look too.
Motley Fool contributor Ryan Newman owns shares in Nearmap Limited.