Sirtex Medical Limited and Domino's Pizza Enterprises Ltd: 2 stocks I'd buy for a richer tomorrow

Domino's Pizza Enterprises Ltd. (ASX:DMP) and Sirtex Medical Limited (ASX:SRX) could have long runways for earnings growth and pleasing portfolio returns.

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Here are two companies that I really admire for their success as well their future growth potential. I  believe that they will keep on growing earnings and having them in a portfolio could give you attractive returns. Sometimes we can't see clearly how far a stock could go, but these two definitely have long runways into the future.

Sirtex Medical Limited (ASX: SRX) is the developer of a specialised liver cancer treatment that can target cancerous tissue with much less side-effects on surrounding tissue, making cancer treatment more effective and easier for the patient. In North America, its largest market, the treatment may become a "first line" treatment that will be given to more patients along with traditional chemotherapy and radiation.

The company has already increased revenue 10 times in the past 10 years. However, if its treatments become a primary liver cancer treatment method, imagine how much more business it could be doing in the future. Current clinical studies must be completed before this change could happen though.

The stock has a price/earnings ratio of 45 at $20.36 a share. That would scare most value investors, yet the analyst consensus forecast is for earnings to rise an average 49% annually over the next two years. That would give it a price/earnings to growth (PEG) ratio of 1.08. If it could sustain such growth for a number of years, it could be worth owning.

Domino's Pizza Enterprises Ltd. (ASX: DMP) is still in its growth phase, yet isn't close to saturating its markets yet. With a successful business model, the company is in a sweet spot for making profits. Not only has it created an online ordering system that now handles about 40% of all its orders, it is even using social media to drive brand awareness and customer loyalty.

Along with the market growth here in Australia, it is opening new stores in such countries as Japan and France where they could expand to dominate the markets there.

Since 2009, the share price has gone from about $3 to $26, multiplying over eight times! It also has a very high 46 PE, but some analysts are only looking for an average 22% increase in annual earnings over the next two years. That would give it a PEG ratio of a little over 2 and would not be as attractive. I really like the company, yet my inner investor tells me to wait for a market correction to see where the stock would come back to. In the meantime, I'll keep ordering the pizzas to get ready.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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