Here are three companies that have just made new highs. All three have good growth stories that don't have to stop here. There is still momentum behind them and investors may be able to take advantage of it, even if they wait just a bit and possibly catch them on a pullback.
Ramsay Health Care Limited (ASX: RHC): Just looking at the stock chart of this major private hospital operator would give any investor joy. It has risen almost uninterrupted from about $10 to just over $50 in the past five years. It has a price/earnings ratio of 30. The dividend yield is 1.6% fully franked.
The analyst consensus forecast is for earnings to possibly increase an average 19.2% annually for the next two years. The company has been on an acquisitions path, buying up private hospital and medical centre groups in France and the UK. It has plans to increase its business in Asia as well. The dividend yield is 1.6% fully franked.
Stockland Corporation Ltd (ASX: SGP): This residential and commercial property developer recently tried to take over rival Australand Property Group (ASX: ALZ). It was unsuccessful, but after selling out its 19.9% stake in that company, it made a whopping $80 million from the exercise. That's on top of the 12.2% increase in full-year underlying profit for FY 2014. It hit a high of $4.26 a share this week and stands at a 17 PE.
The housing market is still rising. As long as interest rates stay low, the property market will have momentum and Stockland's housing construction will continue to grow. This stock still has legs. It offers a hefty 5.7% yield unfranked.
G8 Education Ltd (ASX: GEM): Has been continuing its acquisition of more childcare centres, the company now has 379 childcare and education centres in Australia and Singapore, with an additional 78 under contract to purchase in Australia. The earnings growth has been just as fast paced. In the past four years, net profit has climbed from $4.5 million to $31.1 million.
The childcare industry is highly fragmented and most centres are operated by single, private owners. G8 Education is expanding across the states, buying groups of centres at a time so that it can establish itself as the market leader. It hit a new all-time high at $5.30 a share and its PE is 27. It may seem high, but like a restaurant chain expanding into new regions, it may still have a number of years of acquisitions and growth. It offers a 3.0% yield fully franked. I would follow this one very closely.
