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These 6 shares are crushing the S&P/ASX200

Last week Australian shares ended 2% down after a volatile week, due mainly to falling oil prices and uncertainty surrounding China’s financial markets.

The energy sector index S&P/ASX 200 Energy (INDEXASX: XEJ) lost more than 5% over the week and 9.2% so far in 2016 as oil and gas prices continue to slump.

The benchmark S&P/ASX 200 index is down 9.3% since the start of the year, finishing at 4,892.80 on Friday.

But, it’s not all bad news for investors!

If you’re a big believer in momentum style investing, there are a number of stocks that continue to out-perform the ASX200.

Momentum investing is an investment strategy that aims to capitalise on the continuance of existing trends in the market. Momentum investors believe that large increases in the price of a stock will be followed by additional gains and vice versa for declining values.

The chart below shows six shares that have crushed the ASX200 in the past 3 months.

Company Sector Market Cap vs ASX 200
Super Retail Group Limited (ASX: SUL) Consumer Discretionary $2.01 B 21.22%
Webjet Limited (ASX: WEB) Consumer Discretionary $447.82 M 21.03%
M2 Group Ltd (ASX: MTU) Telecom. Services $1.98 B 20.81%
Vocus Communications Limited (ASX: VOC) Telecom. Services $698.35 M 15.81%
BT Investment Management Limited (ASX: BTT) Financials $3.09 B 14.98%
Breville Group Limited (ASX: BRG) Consumer Discretionary $852.12 M 13.46%

Super Retail Group Limited

Super Retail Group Limited is an Australia-based specialty retailer. The Company operates in three segments, namely, Auto, Leisure and Sports. The Company has beaten the ASX200 by 21.22% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, and it has a solid capital structure with debt to equity around 50%.

Webjet Limited

Webjet Limited is an Australia-based company engaged in the provision of online travel booking. The Company specialises in international travel. The company operates through segments, including Business to Consumer Travel (B2C Travel) and Business to Business Travel (B2B Travel). The company offers its services through the website www.webjet.com/. The Company has beaten the ASX200 by 21.03% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, ROE is in excess of 20%, cash and cash equivalents exceed their debt.

M2 Group Ltd

M2 Group Ltd. is an Australia-based company which provides traditional and next generation telecommunications products and utility services. The company provides its products and services to small, medium-sized businesses, families and individuals. The company operates in three segments: Business, Wholesale and Consumer. The company has beaten the ASX200 by 20.81% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, ROE is in excess of 20%. They do need to keep an eye on their balance sheet with debt to equity high at 132%.

Vocus Communications Limited

Vocus Communications Limited is an Australia-based company, which is a telecommunications provider of internet, fibre, data centres and unified communications. The company provides communications solutions, which allow enterprises and service providers to deploy services for their use. The company has beaten the ASX200 by 15.81% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, ROE is in excess of 10%.

BT Investment Management Limited

BT Investment Management Limited (BTIM) is an Australia-based investment solutions provider. The company, through its subsidiaries, engages in the provision of investment management services. The company operates in two segments. The investment management business in Australia (BTIM Australia) and investment management business outside of Australia (BTIM UK). The company has beaten the ASX200 by 14.98% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, ROE is in excess of 15%, it has strong long term cash flow.

Breville Group Limited

Breville Group Limited is engaged in developing, marketing and distributing small electrical appliances. In Australia and New Zealand, the company trades under its own brands Breville and Kambrook, and also distributes a range of Philip products in the personal care and garment care categories. The company distributes Breville branded products through various channels overseas. The company has beaten the ASX200 by 13.46% over the past 3 months.

It has solid EPS growth over the past 5 years, EPS growth is forecast to be strong, ROE is in excess of 20%, strong long term cash-flow, cash and cash equivalents exceed their debt.

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Motley Fool contributor John Hopkins 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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