I’m always open to listen to investment ideas where people think there’s long-term growth potential with certain businesses, not just based on the next 12 months.
Bell Potter is one of my favoured places for growth ideas, and I tend to agree with the picks. Although that could be just be a bit of confirmation bias.
Here are Bell Potter’s nine ‘Champion Stocks’ according to Head of Research Services, Peter Quinton:
APA Group (ASX: APA)
The gas pipeline owner could be a long-term beneficiary from increased gas usage relating to lower-emission fuel usage in an attempt to be greener.
Transurban Group (ASX: TCL)
The country’s leading toll road builder, owner and operator has an impressive pipeline of projects and continued population coupled with economic growth could lead to pleasing returns over the years.
Challenger Ltd (ASX: CGF)
The baby boomer generation moving to retirement and wanting a secure form of income in their golden years should mean that its annuities continue to rapidly grow in scale and be a major earner for Challenger.
Lendlease Group (ASX: LLC)
The international property and infrastructure group has substantial growth opportunities in international markets relating to urban regeneration. According to Bell Potter, Lendlease’s urbanisation pipeline end value is currently around $55.9 billion around the world.
Goodman Group (ASX: GMG)
The industrial property landlord has a pleasing outlook due to the growth of online retail sales and the growing middle class in developing countries. Logistics properties could become increasingly valuable over time.
Netwealth Group Ltd (ASX: NWL)
The fintech business has been stealing market share in recent years from large institution platforms and the breakup of vertically-integrated wealth models due to the Royal Commission could be a benefit for the independent players like Netwealth.
CSL Limited (ASX: CSL)
CSL is a global leader in the plasma product space. Plasma volumes are expected to grow at 8% per year for the foreseeable future. The company also has an impressive R&D pipeline that could turn into additional useful revenue sources.
Sonic Healthcare Limited (ASX: SHL)
Sonic generates earnings from most of the key Western countries. Bell Potter believes there could be long-term growth of pathology services as well as inorganic acquisition growth in existing or new markets.
Brambles Limited (ASX: BXB)
It’s a global logistics business that operates across dozens of countries and provides the items needed for shipping like reusable pallets. Emerging countries could provide the next stage of the company’s growth.
Over the long-term I’d definitely agree with the investment choice of Challenger. However, rising interest rates could damage the short-term valuations of many of the above businesses so I’m cautious of buying at today’s price – they could fall and become better value during the next 12 to 18 months.
This top share would be an excellent extra idea to make a list of 10 shares that could be good investments today. It just grew profit by 30% and is now expanding into Asia. It would be one of my top ideas alongside Challenger.
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Motley Fool contributor Tristan Harrison owns shares of Challenger Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Transurban Group. 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 Scott Phillips.