5 large-cap shares up over 70% in the last year

Credit: Penfolds

The S&P/ASX 100 (Index: ^AXTO) (ASX:XTO) is dominated by Australia’s large banks and miners, many of which have posted poor recent performance. Of the top 100 companies, more than half had negative share price returns over the last year.

But not all large caps have struggled – 16 have delivered gains of 20% or more, and the following five are up over 70% in that time:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

At around $63, shares in Domino’s are currently near a record high, and up over 75% in the last 12 months. In recent years, Domino’s has benefited from expanding internationally and utilising technology to improve its processes and grow sales.

Growth looks set to continue, however with a P/E ratio of 65, the shares are ‘priced for perfection’. If growth slows, the price could tumble. Domino’s is likely to be a great long-term investment, however, I will wait for a pullback before investing.

Cimic Group Ltd (ASX: CIM)

Shares in engineering and construction giant, Cimic (formerly Leighton Holdings) are up close to 80% in the last 12 months. Most of these gains have come in the last two months, with the market responding favourably to its 2015 results, including a return to profitability.

Cimic has a significant amount of work in the pipeline and represents reasonable value with a current P/E ratio of around 14.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury shares are currently trading at a record high of around $9.30 following gains of over 70% in the last year. Treasury has a solid international presence with popular brands such as Wolf Blass, Penfolds and Yellowglen. Sales in Asia are growing quickly, with demand from Chinese consumers representing a huge opportunity for the company.

Treasury looks set to deliver double-digit earnings growth in the coming years, however, with a run up of nearly 20% in the last three months, and a lofty P/E ratio of around 38, now looks like a high-risk time to invest.

BlueScope Steel Limited (ASX: BSL)

Shares in steel producer BlueScope have risen 83% in the last 12 months and are currently trading near $7. Much of this gain has come in the last few months, following better-than-expected half-yearly results, and a change in sentiment after several years of poor returns.

BlueScope is trading on a P/E ratio of around 18. Some analysts remain bullish, including Morgan Stanley, with a price target of $7.46.

Fortescue Metals Group Limited (ASX: FMG)

Similarly, Fortescue shares have posted a strong year after a bounce in the iron ore price from a 10-year low. Fortescue is up over 90% in the last 12 months and has a P/E ratio of around 12.

Continued outperformance for Fortescue will depend on the iron ore price remaining strong. With an apparent oversupply, some analysts are expecting price weakness to return.

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Motley Fool contributor Matt Bugden has no position in any stocks mentioned. 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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