The time when big miners drove the ASX higher is past. Investors can’t rely on energy stocks as much, either. Some of the big resources stocks in the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) are holding back the index’s gains with their poor performance.
However, there is always a bull market somewhere and even within the ASX there are still pockets of growth investors can take advantage of. Just look for the catalysts for change in the market leaders you know already.
Here are four rising stocks to consider for your next portfolio picks.
Coca-Cola Amatil Ltd (ASX: CCL) is slowly working its way back up in share price to where it was before the company announced earnings would slide 15% almost a year ago. Its restructuring plan should create $100 million in cost savings and the company negotiated a big investment in its Indonesian bottling and distribution business with The Coca-Cola Company. The extra funds will help make the turnaround easier.
Harvey Norman Holdings Limited (ASX: HVN) seems to be picking up momentum in sales. The retailer also changed the way it financially supports franchises, leaving the company with more interim earnings. The rising housing market is lifting home furnishing and appliance purchases. Further rate cuts should be a plus to this situation.
Flight Centre Travel Group Ltd (ASX: FLT) may have some domestic weakness if Australians have less money to travel with, but the travel agency’s growing business overseas is making strong gains. Combined overseas earnings before interest and tax (EBIT) rose 25% in the first half. Earnings generated in foreign currencies may get a boost when translated back into weaker Aussie dollars, providing some lift under Flight Centre’s wings.
Perpetual Limited (ASX: PPT), the fund management company, racked up high double-digit growth in half-year earnings and raised its interim dividend 44%. Net investment inflows for the half year climbed to $1.6 billion, about $1 billion more than a year ago. More funds means Perpetual has more firepower to grow investments and potential returns. The fund manager can also pursue stronger returns in foreign markets with its new international equities funds.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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 policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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