CSL Limited
When it comes to a long-term track record of earnings growth, CSL Limited (ASX: CSL) is a fine example. That's because the pharmaceutical stock has posted annualised growth in its bottom line of 10.8% over the last five years, which is extremely impressive and shows that it is able to perform well over a sustained period.
And, at its current share price of $87.60, investors are not being asked to overpay for such a strong track record, since CSL appears to offer growth potential at a reasonable price. For example, it has a price to earnings growth (PEG) ratio of 1.6, which compares very favourably to the ASX's PEG ratio of 2.04.
As such, now could be a good time to buy CSL and look forward to it delivering on its reputation as an excellent long-term growth play.
Coca-Cola Amatil Ltd
With its share price having fallen by 16% in the last year, Coca-Cola Amatil Ltd (ASX: CCL) has now joined the '5% club', or companies that offer 5% yields at their current share prices. This could prove to be a real asset with interest rates continuing to fall and, better still, Coca-Cola Amatil's dividends are partially franked, too.
Certainly, the company is going through a transitional period at present, but with the financial firepower of its parent company behind it, it could prove to be a sound long term play. And, of course, its brand remains as lucrative as ever, with it seemingly adapting to changes in fashions and tastes among consumers via new and refreshed products.
So, while a price to earnings (P/E) ratio of 20.2 seems rich, Coca-Cola Amatil's yield and long-term growth prospects make it a stock that could surprise on the upside in the long run.
Wesfarmers Ltd
Looking back at the bottom line growth of Wesfarmers Ltd (ASX: WES) during the last 10 years, it hardly strikes investors as being all that impressive. After all, annualised growth of 2.8% over such a long period is somewhat disappointing.
However, that is all set to change over the next two years, when Wesfarmers is forecast to increase earnings by 13.9% per annum. That's a stunning rate of growth and with interest rates being cut (and having the potential to be reduced further), it could surprise on the upside over the medium to long term.
So, while it has a relatively rich P/E ratio of 21.1, Wesfarmers could still be worth buying due to its mix of consistency and a bright outlook regarding its forecast growth prospects.
Of course, finding the best stocks for the long term is a tough ask – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
