The new year is almost here and it's time to think about which stocks could do well in 2018.
I like to believe that a business that has delivered solid profit growth for the past couple of years will continue to do so, as long as the fundamentals are still there.
I think investors need to look beyond shares like Commonwealth Bank of Australia (ASX: CBA) to find solid growth.
Here are three shares I've got my eye on:
MFF Capital Investments Ltd (ASX: MFF)
This is a listed investment company (LIC) that focuses on international shares. There aren't many LICs that have a strong track record like MFF.
MFF grew its pre-tax NTA by an average of 21.9% per annum over the last five years according to Bell Potter's LIC quarterly report to 30 September 2017.
Some of MFF's top holdings in its latest update included Visa, MasterCard, Home Depot, Bank of America, Lowe's and Wells Fargo. This is a strong list of holdings and should grow well regardless of what the global economy does over the long-term.
MFF also has a grossed-up dividend yield of 1.25%.
National Veterinary Care Ltd (ASX: NVL)
National Vet Care is still a fairly new company, but it has grown significantly for shareholders who invested at the start of its listed life.
Since the start of FY18 the business has grown its number of clinics by 13.2% by adding seven clinics.
National Vet Care has a number of different ways to grow revenue. It can acquire more veterinary clinics, expand its pet membership, grow its vet management service and grow organically (such as raising prices).
The pet industry is steadily growing. One of the main factors helping this is that the pet population is growing alongside the human population. More paws mean more customers for National Vet Care. It also helps that two thirds of cats and three quarters of dogs visit the vet each year.
National Vet Care is trading at 32x FY17's earnings with a grossed-up dividend yield of 1.61%.
Blue Sky Alternatives Access Fund Ltd (ASX: BAF)
I'm always interested in something that is very different to most other businesses on the ASX.
Blue Sky is one of those unique businesses. It's a LIC that invests in various assets like student accommodation, retirement living, water and venture capital.
The investment class that really attracts me to Blue Sky is its water fund, which comprises 17.2% of its assets. I believe that water could be the best alternative asset class over the coming years.
I don't expect Blue Sky to smash the market, but it may be able to offer good returns regardless of what the share market usually does. However, if the global economy crashes then Blue Sky could be just as vulnerable.
It's currently trading with a grossed-up dividend yield of 5.95%.
Foolish takeaway
I'm interested in buying shares of all three businesses at the current prices. I think National Vet Care will deliver the biggest returns because of how many more vets it's likely to acquire, but MFF could be the safer option.
