Australian shares will underperform global equity markets in 2015.
That's the view shared by some of the nation's top international fund managers, as reported by The Australian Financial Review, who are convinced a weak (and falling) Australian dollar as well as a lacklustre economy will restrict the returns from our share market.
Given the commodity woes facing the mining sector and considering just how overpriced some of Australia's largest companies have become, it's certainly possible that the Australian share market as a whole will struggle to gain traction.
However, that does not mean that investors need to restrict themselves to sub-par returns. In fact, there are a multitude of companies that seem perfectly capable of delivering outstanding profits this year, in the form of both capital gains and dividends. Here are five top ASX stocks individual stock pickers should consider buying today.
1. Burson Group Ltd (ASX: BAP), which distributes automotive parts to mechanics, could actually benefit if the economy stumbles. With unemployment tipped to rise, individuals are more likely to hold onto their older vehicles which should result in greater sales of old-car parts. With excellent growth prospects, Burson Group could be a top buy today.
2. Greencross Limited (ASX: GXL) has quickly become one of the most dominant players in Australia's veterinary services industry but is still looking for an even greater share of the market. Despite the absence of any bad news, the stock endured a rough 2014 but that could all change in 2015. At $8.20, the stock is sitting 24% below its 52-week high, making now seem like the opportune time to buy.
3. Woolworths Limited (ASX: WOW) shares have fallen considerably since almost reaching $39 back in April 2014. Competition threats from Costco and Aldi, along with growth concerns for its Masters Home Improvement chain, have been grossly exaggerated giving long-term buy-to-hold investors the perfect buying opportunity. Now trading for $30.14, the stock is also tipped to yield 4.8% this financial year, fully franked.
4. Shine Corporate Ltd (ASX: SHJ) is a plaintiff litigation company showing great long-term promise. While it is expanding its geographical reach across Australia, it is also venturing into new practice areas which could provide avenues for strong growth. With a strong management team at the helm, Shine Corporate could be an excellent bet for 2015 and beyond.
5. RCG Corporation Limited (ASX: RCG), the owner of The Athlete's Foot shoe store chain, not only offers considerable growth prospects but also an incredible dividend yield. With interest rates tipped to fall another 0.5% to just 2%, RCG Corporation's 6.5% fully franked dividend is looking more and more compelling.
