These 3 large caps have beaten the S&P/ASX 200 (INDEXASX: XJO) year to date despite the highly uncertain economic climate. Drawn from 3 different sectors, these shares demonstrate the resilience of Australian equities.
Discretionary consumer
The consumer discretionary sector has experienced one of its more difficult years, in my experience. Unlike consumer staples like Woolworths Group Ltd (ASX: WOW) or Inghams Group Ltd (ASX: ING), the discretionary sector is one of choice.
Despite the challenging conditions, however, there have been several companies that have thrived during the coronavirus pandemic. A stand out performer year to date in this sector is Domino's Pizza Enterprises Ltd. (ASX: DMP). The Domino's share price is 26.7% higher than it was at the start of the calendar year. In fact, since its low point on 19 March the Domino's share price has risen by nearly 60%. As a great growth share, Domino's has not only outperformed the ASX 200 over the past 12 months, it has beaten it over the last 5 years.
Information Technology
Also considered part of the financials sector as an emerging fintech company, Xero Limited (ASX: XRO) has also beaten the ASX 200 this year as well as over 5 years. Xero's share price is up by nearly 12% year to date. Xero is carving a pathway to becoming a complete accounting platform. Starting with online accounting software, the company has expanded into bank feeds, payroll, inventory and the app marketplace.
Xero has an almost astonishingly high price to earnings ratio. But, having said that, this is a growth company. Xero announced its first profit recently and some investors were upset that management hadn't spent every cent acquiring new users.
Communications
REA Group Limited (ASX: REA) has been a pioneer of online classified ads in the real estate space and is most widely known for its realestate.com.au business. The company's share price is marginally up since the start of the year, but has still clearly outperformed the ASX 200.
Since its inception 25 years ago, REA Group has branched out considerably. Today the company offers home loans, commercial real estate listings and innovative services such as shared work spaces. REA Group owns websites that operate in Indonesia, Malaysia, the United States and many other countries.
Foolish takeaway
These 3 large cap shares have all outperformed the ASX 200 this year so far. And I believe each of them is poised for future growth. Although REA Group reported a 33% reduction in residential listings at the height of the lock down, restrictions are starting to ease. I believe as the economy emerges from hibernation, trading conditions will improve for the company. Furthermore, I feel all 3 of these Aussie large caps are well managed businesses with solid financials to back them up.
Personally, I particularly like Domino's as a possible buy. I believe it is currently trading at a discount and has a proven track record of solid earnings.
