If I was to come into a mini-windfall this week the first thing I’d do is put the money to work in some of my favourite ASX growth stocks.
As an investor you can’t ask for much more than businesses that offer a mix of growth, value and yield and I think the three below tick the boxes. So let’s take a look at three businesses that I expect could offer some market-thumping returns for smart investors.
Macquarie Group Ltd (ASX: MQG) looks hard to go past given it trades on just over 12x trailing earnings at $77 per share with a bumper partially franked trailing yield in the region of 5.2%. The group is forecasting FY17 profit to be roughly in line with FY16, although expectations are that it will produce a slight profit beat. Moreover, the long-term prospects of this growth-oriented, shareholder friendly, adaptable asset manager remain solid in my opinion. Why would you buy a bank like Australia & New Zealand Banking Group (ASX: ANZ) when you could own Macquarie shares? Beats me.
Blackmores Limited (ASX: BKL) could produce some eye-watering growth over the next 5 to 10 years as it keeps growing vitamin sales into large Asian markets, while I still expect its move into the baby formula market may prove the doubters wrong over the long term. Other doubts over the competitive environment and regulatory risks in China means the valuation remains reasonable at around 28x expected earnings given the rocketing growth. It also offers a fully franked dividend yield in the region of 2.6% and Blackmores may continue to surprise to the upside.
MNF Group Ltd (ASX: MNF) shares look a buy as every smart investor should have some exposure to the rapid growth of the digital economy in their portfolio and MNF Group remains a superb digital growth prospect. Shares are on the expensive side, but sometimes you have to pay for up for high-quality small caps with international horizons and an exemplary track record of earnings and dividend growth. Founder led with some powerful tailwinds the company’s market value is only $270 million, which means it has plenty of potential to grow far bigger with time. At $4.07 the valuation is stretched so I would probably hope for a better entry point around 5%-10% cheaper, although this company remains an exciting prospect.
The amount of money you can make in the market with a bit of time and by picking the right stocks while you sit back and relax is unbelievable..
Don’t believe me?
Read on below..
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Motley Fool contributor Tom Richardson owns shares of Blackmores Limited, Macquarie Group Limited, and MNF Group Limited.
You can find Tom on Twitter @tommyr345
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.