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Carsales.Com Ltd, Stockland Corporation Ltd: Could they have an even bigger 2015?

With reporting season soon drawing to a close, the lack of news about higher revenues and big profit gains may take some of the sizzle out of the market. But that is past history. Investors need to focus on those companies that are going to make 2015 an even bigger year. Below are two stocks with good growth in FY 2014, which also have the catalysts for further gains in the next year and beyond.

Leading car sales website Carsales.Com Ltd (ASX: CRZ) kept up a steady stream of investments over the past twelve months. Its overseas expansion is paying off with its Brazil and South Korea-based businesses both seeing strong revenue increases of 21.7% and 35%, respectively.

However, iCar Asia Ltd (ASX: ICQ), which Carsales.Com has a 22.9% stake in, performed poorly. Carsales.Com’s share of the net loss was about $1.99 million in FY 2014.

One more investment, a 51% stake in vehicle finance company Stratton Finance, was completed in July, so investors can see the first revenue results in first half FY 2015. Adding financing for cars, motorcycles and boats will complement the company’s current business income streams.

The vast majority of earnings still come from its popular website’s online advertising. As the number one site for car sales searches, sellers want to be listed on the best viewed website and advertisers want to put ads where the most eyeballs are. All this drives business to Carsales.Com. Along with the investments in new kinds of business and overseas markets, it makes me think the company can have strong, sustainable growth in 2015.

Stockland Corporation Ltd (ASX: SGP), the commercial and residential property developer, saw a revival in net profit in FY 2014 when the growing housing market translated into more homes being built. Its residential housing operating earnings gained 57%, from $60 million to $95 million.

The largest source of operating earnings, commercial property, saw a 3% rise to $497 million. Residential and commercial markets can move out of phase with each other, so higher commercial growth may have to wait until the economy and retail trade pick up more.

As for housing market growth, Stockland CEO Mark Steinert stated in June: “At the moment it is fair to say there is at least three years of undersupply in every major capital city.” Stockland plans to capitalise on that. House price growth may slow down, yet with record low interest rates, property buyers will be motivated to buy and build new homes.

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I think Carsales.Com will probably be the better choice for growth of these two companies due to the popularity and competitive advantages of its market-leading website. Still, our top analyst recently identified one CHEAP growth stock which has a 6.8% grossed-up dividend yield. I believe it could be a great long-term buy! You can get the name of this 'ultra-promising story stock' FREE in our new research report. Simply, click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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