Scentre Group Ltd
Since listing in June last year, shares in Scentre Group Ltd (ASX: SCG) have comprehensively beaten the ASX. In fact, they have risen by 25%, while the ASX is up just 9%. Certainly, this is a short time period but is reflective of what could take place in the long term, with Scentre having the potential to thoroughly outperform the wider index moving forward.
A key reason for that is the fact that Scentre offers a potent mix of growth potential and great value. This is perhaps best evidenced by the company's price to earnings growth (PEG) ratio, which currently stands at just 0.45 and indicates that there could be share price growth ahead.
And, with the monetary policy of the RBA being loose, the sales and profitability of Scentre could surprise on the upside, thereby helping it to deliver even better long-term performance.
Crown Resorts Ltd
Over the last five years, shares in Crown Resorts Ltd (ASX: CWN) have easily outperformed the ASX, with them rising by a whopping 91% versus just 27% for the ASX. Looking ahead, there could be more outperformance to come, with the company having ambitious development plans that could set it up for a long period of bottom line growth.
Therefore, while Crown Resorts does trade on the same price to earnings (P/E) ratio as the wider consumer services sector, with it having a rating of 18.8, it appears to justify a rather rich valuation as a result of its potential. And, with Crown Resorts having increased its net profit by 30.4% in the last year, it seems to be moving in the right direction, which could lead to investor sentiment improving in the months ahead.
Wesfarmers Ltd
Despite falling by 3.5% on Friday following sector peer Woolworths Limited's (ASX: WOW) disappointing results, Wesfarmers Ltd (ASX: WES) has still outshone the ASX over the last five years. In fact, its shares are up 36%, while the ASX has risen by 27%.
Clearly, the outlook for the Aussie supermarket sector is rather tough, with competition set to hot up even more as cash-strapped shoppers seek out the bargains on offer. The end result will inevitably be reduced margins for retailers such as Wesfarmers but, with its conglomerate structure, it should be able to cope with such a situation better than its peers.
As such, it could turn out to be an opportunity for Wesfarmers to increase its market share of the retail sector and may lead to improved profitability in the long run.
Of course, finding the best stocks for the long term is a tough task – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
