3 super-hot growth stocks for the next 12 months

With the ASX having pulled back in recent weeks, valuations on a number of stocks have cooled somewhat. Therefore it’s perhaps a little easier to hunt down stocks that offer growth at a reasonable price.

Bearing that in mind, here are three companies that offer a potent mix of exciting growth prospects at an attractive price. As a result, they could provide a significant boost to your finances moving forward.

Wesfarmers Ltd

With earnings set to grow at an annualised rate of 12.6% over the next two years, Wesfarmers Ltd (ASX: WES) is on the cusp of a purple patch. Indeed, the owner of multiple retail chains, such as Coles and Target, is expected to see its 10-year historic earnings growth rate of 2.8% per annum discarded. This as it continues to benefit from buoyant spending, driven in part by low interest rates.

Although shares in the company may appear to be overpriced at first glance, with them having a price-earnings (P/E) ratio of 21.2, a price to earnings growth (PEG) ratio of 1.69 remains relatively attractive and shows that they offer growth at a reasonable price.

Woodside Petroleum Limited

Offering an even higher forecast growth rate in earnings is Woodside Petroleum Limited (ASX: WPL). It is expected to increase the bottom line by a stunning 18.9% per annum over the next two years, which means that profit in 2015 could be an incredible 41% higher than it was in 2013.

However, shares don’t trade at a premium to the wider market for this strong growth potential. In fact, they trade at a discount, with shares in Woodside Petroleum having a P/E ratio of 14.1 versus 15.6 for the ASX. This equates to a PEG ratio of 0.74, which screams ‘growth at a reasonable price’.

CSL Limited

At first glance, shares in CSL Limited (ASX: CSL) appear to be vastly overpriced. That’s because they trade on a P/E ratio of 24.5, which is above and beyond the ASX’s P/E of 15.6.

However, where the investment case for CSL starts to make sense is in terms of its growth potential. The company is forecast to grow earnings by 15.3% per annum over the next two years. This puts it on a PEG ratio of 1.6 which means that it could give your portfolio a major boost moving forward.

Despite this, there is another company that could make an even bigger contribution to your portfolio returns. It's featured in a free and without obligation report called 'The #1 Growth Stock Of 2014-15'.

The company in question has huge growth potential and trades at a very attractive price. As such, it's well-worth finding out more about and it could make a positive contribution to your investment returns in 2014 and beyond.

Click here to access your copy of the report - it's completely free and comes without any further obligation.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

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