You only need a couple good stocks in your portfolio sometimes to make a big difference in returns. Like legendary fund manager Peter Lynch once wrote, out of five stocks, on average one will go up well, one will slip down and the other three could go sideways. Having several rising star stocks could be all you need to turn 2015 into a year to remember.
Here are three top-performing stocks that have what I like to call "kickers", or special opportunities for extra growth.
Corporate Travel Management Ltd (ASX: CTD) specialises in overseeing business travel and accommodation reservations for companies. In the last six months, the stock is up 65% for a stellar return. From next week, the stock will be entering the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO). This will give it more exposure to large professional investors that have restrictions on buying outside of the index.
TPG Telecom Ltd (ASX: TPM), the broadband service provider and growing telecom company, is on the move to challenge Optus for the number two spot after Telstra Corporation Ltd (ASX: TLS). It recently announced plans to acquire Australia's second-largest internet service provider iiNet Limited (ASX: IIN). iiNet's board supports the takeover deal. TPG's extensive network infrastructure joined with iiNet's leading NBN subscriber base could be a powerful business combination as the telecom industry consolidates.
Domino's Pizza Enterprises Ltd (ASX: DMP) represents the classic growing store franchise stock that investors can follow relatively easily as the company expands into more towns and suburbs across Australia. On top of that, the company is seeing strong growth in its Japan, France and Belgium markets. Domino's Pizza stores in Japan are projected to double in about five years. Australia could see several hundred more stores as well. It has a high 54 price/earnings ratio, so I would look for lower entry prices, but the business is attractive.
