Super Retail Group Ltd and Ansell Limited: Should you buy?

Since the start of the year Super Retail Group Ltd (ASX:SUL) and Ansell Limited (ASX:ANN) have beaten the ASX-200 index gain and they are poised for further business growth.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Billionaire investor Warren Buffett once said, "Games are won by players who focus on the playing field- not by those whose eyes are glued to the scoreboard."

Investors can be winners in the same way if they pay less attention to the rise and fall of the ASX and concentrate on quality companies that are steadily improving business. Since the beginning of the year, the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) has made a respectable 10.3% gain.

However, I know of two stocks that have more than doubled that increase and should continue growing over the next several years. Could they be good fits for your portfolio?

—  Ansell Limited (ASX: ANN)

The protective wear and glove manufacturer had a strong rally over the past 12 months, up about 49%. The combined benefits of acquisitions, organic growth and recent restructuring lead to high-double digit growth in half-year earnings before interest and tax (EBIT), according to the company. Interim earnings per share and dividends rose 16% and 18%, respectively.

In March, Ansell announced yet another acquisition of UK-based Microgard, which specialises in chemical protective clothing. Microgard has production facilities in China and had about US$40 million in sales in 2014. Already a global leader in protective wear, Ansell's breadth of products for industrial uses will expand further with this acquisition. Long-term investors can benefit from having this steady grower and solid dividend payer in their portfolio.

Ansell    1-year stock chart

ann stock chart

—  Super Retail Group Ltd (ASX: SUL)

Retailers have slowly picked up sales momentum over the past year and Super Retail Group, the operator of Supercheap Auto, BCF, Rebel Sports and Amart Sports is no exception. Its sports stores have led the way in same store sales, up 6.1% in the first half. Auto accessories and parts followed with a decent rise, but outdoor and leisure equipment lagged.

The company expects its leisure division to improve as it restructures its Ray's Outdoors brand stores and closes its poorly performing FCO (Fishing, Camping, Outdoors) stores. The first part of the second half has seen this division's same store sales expand about 6.5%, so that's a good sign for total group sales to improve.

The stock pays a 3.8% yield fully franked and has recovered from a depressed share price since the start of the year.  I would suggest picking up this stock as the further benefits of lower interest rates and cheaper petrol boost general retail trade.

Super Retail Group   1-year stock chartsul stock chart

Source: Google Finance

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned.  We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policyThis article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »