The US stock markets seem to be ready for another record-breaking year after the Dow Jones Industrial Average breached the 18,000 mark for the first time. Some project it may hit 20,000 within 2015.
On the flip side, the S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) only gained 1.2% over the past twelve months. With similar economic headwinds still blowing on Australia, there's not much expected differently for 2015.
But one way to build up your own solid returns is to own mid-cap stocks. They can be great sources of earnings and share price growth. They've developed successful business models and still have a lot of room to grow compared to large-caps.
For example, CarSales.com Ltd (ASX: CRZ), the number one car sales website in Australia, is still attracting the most viewers and vendors, compared to its competitors. The company also offers vehicle finance and auto data information services for new income streams.
In addition, it's been expanding its business into South Korea and Brazil and has investments in iCar Asia Ltd (ASX: ICQ), which covers similar auto markets in South East Asia. Earnings growth should be in the double digits in 2015, so having some of it in your portfolio could be a good move.
Invocare Limited (ASX: IVC) isn't too far from setting a new all-time high. The funeral home and cemetery operator has grown steadily in the past ten years. With a growing, aging population, business should keep growing into 2015 and beyond.
It has a good return on equity, manageable debt levels and owns such well-known brands as Simplicity and White Lady. It's a quality company that investors can hold for long-term returns.
Another company showing exceptional growth recently is Slater & Gordon Limited (ASX: SGH). The law practice network specialises in personal injury law, but also offers property conveyancing services. It continues to add to the number of practices and has a lot of room to expand its business in Australia as well as the UK. The stock is fairly priced compared to its projected earnings growth, so you might want to start building a position and go along for the ride.
