The share market is full of opportunities if you can jump on them at the right time.
No business is a buy at any price, but I think the following shares will beat the market this year:
Bapcor Ltd (ASX: BAP) is Australia’s largest auto parts business with its Autobarn and Burson brands. I think it has defensive earnings and looks good value considering it’s only trading at 24x FY17’s earnings whilst management are predicting net profit after tax (NPAT) growth of 30% for FY18.
Class Ltd (ASX: CL1) is a leading self-managed superannuation fund (SMSF) accounting software provider that is adding thousands of new portfolios to its system each quarter. I think it’s an opportunity because of the amount of new portfolios it can add, particularly the potential for non-SMSF portfolios.
Forager Australian Shares Fund (ASX: FOR) is a listed investment trust that has a strong record of outperforming the market by buying unloved shares it believes will turn things around. I’d be happy to own shares and perhaps I will one day.
Greencross Limited (ASX: GXL) is Australia’s leading pet company with both Petbarns and Greencross veterinary clinics generating good organic growth. Profit margins should increase as management co-locate Greencross vets inside Petbarns which should save on costs and boost revenue through cross-selling.
MFF Capital Investments Ltd (ASX: MFF) is a high-performing listed investment company (LIC) that invests in overseas shares. It has generated long-term returns of about 20% per annum and could continue to do so if the USA’s economy and big companies keep growing strongly.
National Veterinary Care Ltd (ASX: NVL) is another veterinary company that’s growing well thanks to an expanding pet industry. The business is growing well through organic growth but particularly through acquisitions.
Propel Funeral Partners Ltd (ASX: PFP) is a newly-listed funeral company that operates mainly in regional areas. I believe the long-term ageing population of Australia will lead to Propel being able to slowly grow earnings steadily over the long-term and grow through acquisitions in the near future.
Ramsay Health Care Limited (ASX: RHC) is one of Australia’s leading private hospital operators that has seen its share price fall yet its earnings has continued growing. The ageing population should also boost Ramsay’s earnings as more patients visit its hospitals.
Xero FPO NZX (ASX: XRO) is a cloud accounting software package taking the English-speaking world by storm. The automation tools and time-saving capabilities it offers clients makes its price well worth the cost. If it can keep growing the number of subscribers then it will soon be generating a bottom-line profit.
Zenitas Healthcare Limited (ASX: ZNT) is a small cap healthcare company that is benefiting from a drive to provide more care outside of high cost healthcare centres like hospitals. I think Zenitas could grow a lot organically and through acquisitions over the coming years.
I think all of the above shares will beat the market in 2018, which is why I’m a shareholder in quite a lot of them and would like to be a shareholder in the rest of them at the right price.
I also believe that these top growth shares will beat the market this year.
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Motley Fool contributor Tristan Harrison owns shares of Bapcor, Greencross Limited, Magellan Flagship Fund Ltd, NATVETCARE FPO, Propel Funeral Partners Ltd, Ramsay Health Care Limited, and Zenitas Healthcare Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor and Greencross Limited. The Motley Fool Australia owns shares of Class Limited, NATVETCARE FPO, and Xero. The Motley Fool Australia has recommended Ramsay Health Care Limited and Zenitas Healthcare Ltd. 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.