Do you own these 12 blue chip growth stocks?

Over the last two months we’ve seen most companies on the ASX deliver either full-year or half-year earnings results. That makes now the perfect time to assess which companies are the most likely to outperform over the next year or two.

Classifying Stocks

Many investors and analysts like to group companies into one of two buckets; growth or income stocks. Income stocks are generally favoured by more conservative investors as they offer a margin of safety through regular income, whereas growth stocks can be viewed as riskier given investors rely more heavily on capital gains.

Growth Stocks

Growth stocks are my favourite of the two because I’m happy to sacrifice immediate income for better growth. So when Macquarie Group Ltd (ASX; MQG) released a list of companies that have proven to be quality growth stocks over the past year; I paid attention.

Here’s Macquarie’s list of growth stocks and their 12-month share price performance:


I must say, that with the exclusion of Magellan, I believe their list is spot on. The companies above have established themselves as fully-fledged growth stocks in the past 12 months and future returns will align closely with how well they can execute expansion plans.

The average return of the 12 companies above is 34%, implying a return of $340 on every $1000 invested in an equal-weight portfolio 12 months ago. Such a portfolio would have outperformed the ASX 200 by 27% as well as delivering a dividend yield between 2% and 3%, a great performance indeed!

The Next 12 Months

I feel like I've missed out by not investing in the companies above, but I won't make that mistake again. The Motley Fool has just released a special video report on our analysts' #1 ASX tech pick -- all about the one Australian company poised to win big from the 'cloud computing' trend. (Hint: The shares are already up over 100%!) Click here to claim your FREE copy.

Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.