MENU

TPG Telecom Ltd, Veda Group Ltd, Steadfast Group Ltd: 3 of September’s best performing stocks

Are you worried about iron ore prices falling and the S&P/ASX 200 Index (ASX: XJO) (Index: ^XJO) slipping down just before hitting October?

You wouldn’t be if you owned the three stocks below. Over the past month, they are some of the best performers among the ASX 200 companies. All of them had strong profit gains over FY 2014 and two of them just listed in 2013.

TPG Telecom Ltd (ASX: TPM)

The telecommunications company is up about 17% over the past month, with most of the rise within the past week. This week it reported a 15% net profit gain for FY 2014 on top of a growing broadband subscriber base. Its plan to develop a high-speed broadband network similar to the national broadband network can go ahead after the ACCC announced it will allow the competing network. Already it is launching the service which will likely attract a lot of demand for its high speed and low cost. That will give the company a leg up over its rivals like iiNet Limited (ASX: IIN) in FY 2015. It has a 1.3% dividend yield and a 30 PE.

Veda Group Ltd (ASX: VED)

Rising around 16% since late August, the data analytics and credit information company is up about 37% since listing in December 2013. Many people and businesses use its service to report and verify the credit history of customers and borrowers. Having such a wealth of data is also attractive for market research. In FY2014, underlying net profit was $48.8 million on $302 million in revenue. Consensus forecasts are for earnings to grow an average 23.4% annually over the next two years. It has a 31 PE, but if it can hit the forecast growth rates, it might not be such a high price to pay. It pays a 2.1% yield unfranked.

Steadfast Group Ltd (ASX: SDF)

Another relatively new stock to the ASX, this $790 million insurance broker service provider listed in August last year around $1.42. It dipped down to $1.25 in early August, but has since rallied to $1.60 now. In the past month, it is up 14%. Its pro-forma net profit climbed 15.5% in FY 2014. Some of its brands are Miramar, Mecan Insurance, Hostsure and Procover. It has already made seven acquisitions recently. It now has the largest general insurance broker network in Australia covering about 500 offices in Australia, New Zealand and Singapore. The company’s FY 2015 guidance is for earnings to grow 10% – 13%.

These companies show a lot of promise and I think I would be following Veda Group the most because of its high-demand credit history reporting database. That can be a good competitive advantage for above average growth and premium pricing.

Along with these strong performers, there is one more stock that you should know about before considering these three for investment. The Motley Fool’s top analyst, Scott Phillips, recently identified one cheap but growing ASX stock with a 6.1% grossed-up dividend yield which could be a standout buy.

The Motley Fool has written a free report "The Motley Fool's Top Dividend Stock for 2014-2015" which it's sharing with all interested investors.

If this is you, simply click on the link here and enter your email address - it takes less than 30 seconds - and we'll send it to you, completely FREE!

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

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.