MENU

5 great mid-cap stocks for 2015 and beyond

If analysts are correct with their forecasts of the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) reaching 6,000 points in 2015, the best gains won’t come from the usual suspects.

Whilst the four big banks, two supermarkets, big miners and Telstra Corporation Ltd (ASX: TLS) account for around 50.8% of the S&P/ASX 200, they appear fully valued.

That means Australians searching for better investments in 2015, will be forced to look further down the market, to companies which appear much cheaper.

But that doesn’t mean they’ll have to sacrifice on quality. Indeed investors have a better chance of making truly life-changing gains by focusing on the blue-chips of tomorrow, not today.

Here are five of the best ‘mid-cap’ stocks to buy in 2015.

  1. M2 Group Ltd (ASX: MTU) is the owner of telecommunications brands such as Dodo, Primus, Eftel and Commander. Analysts are forecasting a solid earnings outlook for the near term, and shares look cheap with a 3.7% fully franked dividend.
  2. Credit Corp Group Limited (ASX: CCP) is a leading debt collections firm. Earlier this week the company updated the market with a more promising outlook for 2016 and beyond, as guidance for purchased debt ledgers increased from $80-$90 million to $120-$130 million. Despite a jump in price, shares continue to trade relatively cheap and offer a 4.2% fully franked dividend yield.
  3. Slater & Gordon Limited (ASX: SGH) is the leading personal injury law firm in Australia. However it has ample growth prospects, both locally and abroad, with analysts’ forecasts for a 13% jump in earnings and 20% increase in dividend payout in 2015.
  4. Ardent Leisure Group (ASX: AAD) is also growing its overseas presence. The owner of AMF and Kingpin bowling, Goodlife Health Clubs and Dreamworld is a leading entertainment and leisure business locally but is undertaking a rapid rollout of its Main Event business in the USA. It’s forecast to pay a 4.7% dividend in the next year.
  5. G8 Education Ltd (ASX: GEM) is the owner and operator of over 450 childcare centres in Australia and Singapore. The company continues to grow rapidly through acquisitions yet also presents as a compelling investment for income. Analysts are forecasting a 4.2% fully franked dividend in 2015.

Our #1 stock idea for 2015 is still a buy!

If the market is going to reach 6,000 points in 2015, expect growing businesses like those five above to put in a much stronger performance. If you’re investing for more than five years, these companies should at least hold a spot on your watchlist, if not a position in your portfolio.

If you think these 5 stocks are good, The Motley Fool's top analysts have just completed a brand-new free report on their top pick for 2015. Be among the first to get the name and code right now. (Hint: It's a sexy ASX tech company!) Simply click here for your FREE copy... BEFORE the investing crowd gets wind of this!

Motley Fool Contributor Owen Raszkiewicz owns shares of Slater & Gordon. You can follow Owen on Twitter @ASXinvest.

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.