Why these small-cap shares could be destined for big things

Whilst blue-chip shares like Woolworths Limited (ASX: WOW) and Wesfarmers Ltd (ASX: WES) are staples in the portfolios of many Australian investors, I believe competitive pressures will restrict them both to mediocre earnings growth over the next few years.

So in order to give your portfolio a little lift I would suggest you consider one of these small-cap shares which I believe could be destined for big things.

GetSwift Ltd (ASX: GSW)

This fledgling delivery management software provider aims to streamline a company’s logistics through its innovative platform. Its software optimises delivery routes, automates the dispatch process, and provides real-time tracking alerts. Impressively, even without a dedicated salesforce GetSwift has been growing strongly and has clients in over 59 countries. The company recently announced a deal with Commonwealth Bank of Australia (ASX: CBA) which will turn every Albert point of sale vendor into a delivery-ready store. Management has estimated the deal to result in an additional 257.4 million deliveries through its platform over the next five years.

National Veterinary Care Ltd (ASX: NVL)

A recent study has revealed that pet ownership in Australia has grown to a massive 62% of Australian households. This high level of pet ownership is great news for National Veterinary Care and its 54 veterinary services businesses in my opinion. Especially as on average 79% of dogs and 65% of cats go to the vet at least once a year according to management. I believe this will result in strong demand for its services, allowing the company to grow its earnings at an above-average rate. Furthermore, as the veterinary market is highly fragmented, I think the company has the opportunity to follow in the footsteps of Greencross Limited (ASX: GXL) and grow significantly through acquisitions.

Finally, rather than having Woolies and Wesfarmers in your portfolio, I would suggest investors consider these three blue-chips with explosive growth prospects. A further bonus in my opinion is that they provide fast-growing dividends as well.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares of GetSwift Ltd. The Motley Fool Australia owns shares of Greencross Limited and Wesfarmers Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.