3 attractive companies entering 2016 at record highs

With some market participants suggesting we could be on the cusp of a bear market and the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) today sliding below the 5000 point level once again, it’s easy for investors to become disillusioned with the share market.

It’s worth remembering however that even in times of heightened volatility, there are still stocks which continue to perform well and that is why careful stock selection is always vitally important.

Here are three stocks which all recently posted fresh 52-week highs.

  1. Brickworks Limited (ASX: BKW) – Australia’s largest brick manufacturer is a very well-run company with close links to investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The group is well positioned to benefit from the current elevated levels of home building and based on forecast data provided by Morningstar, the company is expected to earn close to 109 cents per share in 2018 which could provide the impetus for further share price appreciation.
  2. APN Outdoor Group Ltd (ASX: APO) – As one of Australia’s leading outdoor advertisers, APN is surfing the wave of a shift from static to digital billboards. Earnings per share are expected to leap to 25 cents per share in 2017 in recognition of the attractive economics that the digital billboard business is providing.
  3. Collins Foods Ltd (ASX: CKF) – As the largest operator of KFC quick service restaurant franchises in Australia, the group’s footprint and brand recognition should offer shareholders a reasonable degree of defensive earnings. With profits improving by 33% in the recent half year there could be more to come from this underfollowed stock.

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Motley Fool contributor Tim McArthur 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 has no position in any of the stocks 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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