The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has taken a beating in recent weeks with some of Australia's most exciting growth stocks coming off second best. As unnerving as it can be to buy a stock when the rest of the market seems to be cooling on it, this increases the potential for market-smashing returns in the long term.
With the benchmark index now down 6% in the last month or so, here are four stocks worth taking a closer look at for fantastic returns in 2015 and beyond…
1. Cover-More Group Ltd (ASX: CVO)
Cover-More Group is Australia's leading provider of travel insurance while it is also growing rapidly in the Chinese and Indian markets. Although the company provided a strong annual report in August (which saw the shares skyrocket more than 40%), the stock has trended back downward to be trading at $1.98 – 21% below its 52-week high.
Although the stock still commands a trailing P/E ratio of 29x, $1.98 could look very cheap in hindsight with strong growth forecast over the coming few years. This is one to add to your watchlist.
2. Greencross Limited (ASX: GXL)
Greencross is Australia's leading provider of veterinary services with hundreds of veterinary practices and pet retail stores scattered around Australia. The company has delivered enormous returns to shareholders in recent years but has retreated substantially since peaking at $10.78 back in August.
In fact, the shares are now trading at a 32% discount at $7.33. The heavy falls come despite the confirmation of earnings per share (EPS) guidance of 36 cents per share for FY15, which represents a 50% increase on FY14. With strong growth expected in the coming years too, the recent pullback could be the opportune time to buy a parcel of shares.
3. Corporate Travel Management Ltd (ASX: CTD)
Like Greencross, Corporate Travel Management has been a favourite amongst investors in recent years with its shares having skyrocketed more than 460% since the beginning of 2012. Just last week the stock hit a new all-time high at $10.75, after it announced the strategic acquisition of two smaller travel businesses in North America and the United Kingdom.
Such is the way of the market however, and the stock has actually retreated 12.6% since that day to be trading at $9.40. With strong growth expected to continue for years to come, in addition to a world-class management team, this could be an excellent opportunity to buy shares on the cheap.
However, there is one other stock which could be a far greater buy for 2015.
