MENU

10 shares to boost your portfolio returns in 2016

Credit: 401(K) 2012

Growth shares (despite some of them paying dividends) have the added potential of a substantial lift in share price.

Looking into the new year, there are companies listed on the Australian Stock Exchange (ASX), which have grown strongly in 2015 and may keep growing in 2016.

The companies selected below are from different sectors, like technology, online shopping, etc. Three key criteria are used, which are a strong demand for their products, a high level of competitive advantage and a high growth rate.

Here is the list of 10 growth shares, with strong potential for upward movement in their share price in 2016.

Company Name Industry Market Cap 1 yr Total Shareholder Return 2016 Analysts’ Earnings Growth Forecast (%)
1 TPG Telecom Ltd (ASX: TPM) Telecommunications $8.2  Billion 46.4% 43.00%
2 REA Group Limited (ASX: REA) Online Advertising $6.61 Billion 13.0% 14.80%
3 Cochlear Limited (ASX: COH) Bio-Technology $5.20 Billion 20.4% 23.90%
4 Domino’s Pizza Enterprises Ltd. (ASX: DMP) Food $4.38 Billion 98.6% 27.10%
5 Blackmores Limited (ASX:BKL) Health & Baby Food $3.32 Billion 460.6% 74.90%
6 Carsales.Com Ltd (ASX: CAR) Online Advertising $2.62 Billion 10.7% 11.40%
7 Vocus Communications Limited (ASX: VOC) Telecommunications $1.72 Billion 18.9% 38.60%
8 Bellamy’s Australia Ltd (ASX: BAL) Health & Baby Food $1.19 Billion 648.1% 115.80%
9 Surfstitch Group Ltd (ASX: SRF) Online Shopping $519.51 Million 104.8% 100%
10 Webjet Limited (ASX: WEB) Online Travel $429.57 Million 90.6% 10.3%

Source: Commsec, Morningstar, Google Finance

The above list includes companies, which already have a successful business model. The forecast growth percentage for the 2016 earnings per share growth (EPS) is an indication based on all the current available information.

Foolish takeaway

The aim of the list is to seek shares with high growth potential. There are many more companies, which have their shares listed on the ASX. It is not possible to completely understand and make an opinion about each and every share listed. So this list is my opinion on 10 quality growth shares listed on the ASX, which can do well in 2016.

BRAND NEW! Our Top Dividend Stock for 2016

Our resident dividend expert names his Top Dividend Share for 2016. Not only are the shares dirt cheap, the company is trading on a 5.6% fully franked dividend yield. Simply click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share.

Motley Fool contributor Qaiser Malik has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Bellamy's Australia. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!